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CIP and Indirect Lending

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We are a little confused regarding CIP and Indirect Lending. We do Indirect Lending with a few dealers. They use a generic form for the loan agreement with the loan assigned to the Bank. We have an agreement with the dealer. The loan is not made until the Bank gives approval. Would this be considered a tranfer of assets and no CIP required or the dealer working as our agent?

The loan is not granted until you provide approval. This sounds like they are your agent. This would be especially so if your name was on the contract with the customer's. In this instance it would be clear that it is your loan and the dealer is your agent.

First published on 10/6/03

First published on 10/06/2003

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Filed under lending as: 

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