Thanks. I think I understand now. The dealer is not acting as a true obligor, just a contingent obligor. I would assume in this instance then that the borrower could execute an extension agreement (interest only payment) without the knowledge/consent of the dealer because the dealer is offering recourse instead of co-signing or guaranteeing the debt (in which case it is our policy to have all obligors sign the extension agreement). Unless, of course, or recourse agreement didn't allow this.
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