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The Latest Installment

If You Don’t Wear a Patch over One Eye, You Will Be Able to See that a Monetized Installment Sale to S.Crow Collateral Corp. Is the Real Deal.

November 1, 2021

You may have noticed it, too, but I certainly have noticed that every time, without exception, when someone contends that a monetized installment sale to S.Crow Collateral Corp. isn’t a real sale, that person always is completely silent about the fact that S.Crow Collateral Corp., as a dealer, undertakes full-recourse liability to each of its sellers, for the entire purchase price.

Furthermore, that full-recourse liability is not contingent on the seller’s tax treatment, it’s not contingent on whether the seller is still indebted to the lender on the monetization loan, it’s not contingent on whether any other party is or is not indebted to S.Crow Collateral Corp., and it’s not contingent on S.Crow Collateral Corp.’s balance sheet or on whether its investments have performed as planned.

It’s as if the person who says it isn’t a real sale is wearing a patch over one eye and therefore simply cannot see S.Crow Collateral Corp.’s side of the deal: either the full-recourse liability or the role of a dealer-buyer (as if there were no such thing as a dealer).

With that clear understanding by using both eyes, all sorts of pejorative labels fall away, such as a “mere conduit,” a “mere intermediary,” or “not a real buyer.” See the world as it is. Take off the eye patch.—Stan Crow

Stanley Crow, our Editor

The Latest Installment addresses situations, questions and issues which are brought to us in the course of the consideration, negotiation or execution of transactions. We don't use the real names of parties to transactions, and we may edit the statement of the question to try to tell the story better. Please feel free to comment, or to take issue, or to raise your own question or situation. If you do the latter, please do not relate any confidential information.

The Latest Installment blog is edited by Stanley D. Crow, who is president of S.Crow Collateral Corp.

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