|
|
|
 |
Definition of Co-signer and Co-borrower
David Dickinson, BOL Guru
Guru BIOS
Question: What are the separate definitions of a co-signer and a co-borrower?
Answer: "Cosigner" is defined in Reg AA in §227.12(b) as:
- A natural person who assumes liability for the obligation of a consumer and who does so without receiving goods, services or money in return for the obligation, or in the case of open-end credit, without receiving the contractual right to obtain extensions of credit on the account.
- Any person whose signature is requested as a condition to granting credit to a consumer, or as a condition for forbearance on collection of a consumer's obligation that is in default. The term does not include a spouse whose signature is required on a credit obligation to perfect a security interest pursuant to state law.
- A person who meets the definition in this paragraph is a cosigner, whether or not the person is designated as such on the credit obligation.
I'm not aware of any regulation that defines "co-borrower"; however, you may want to look at the definition of "applicant" in Regulation B in §202.2(e) and the Commentary to this section.
First published on BankersOnline.com 10/03/05
Privacy Policy Disclaimer Recommend This Site ! Contact Us
BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.
|
|
|
|
Print Friendly!
Email This Article!
Discuss NOW!