medium · Asset-Backed Securities abs-core
How does the 'True Sale' analysis for healthcare receivables differ from consumer auto loans?
- Healthcare deals face higher risk due to ongoing operational entanglement and payer-specific rules.
- Auto loans require the physical delivery of every vehicle's paper title to achieve a valid true sale.
- True sale is never required for healthcare receivables because payers are government entities.
- Healthcare receivables are automatically exempt from all true sale requirements under federal banking law.
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