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Some sellers will carry loans.
Dealers, who must pay for cars when they are ordered, not when they are sold, carry loans to cover their inventory.
Banks, in contrast, typically carry loans at par, or 100 cents on the dollar, as long as they are still paying interest.
Commercial banks like First Union or Bank of America tend to carry loans on their books at par, or 100 cents on the dollar, as long as they still pay interest.
If states are unable to repay their outstanding federal loans by November — which will prove difficult for many — nearly half the states could be forced to effectively raise federal taxes on employers by about $21 per worker, under a provision of federal law that automatically reduces the tax credits given to businesses in states that carry loans two years in a row.
Similar(55)
Student lenders have carried loans made years ago on their books, unable to sell them.
According to an FRBNY staff analysis, at the end of 2012, the majority of 39 million student borrowers owed less than $25,000, but nearly 4percentt carried loans in excess of $100,000.
Overall more than two-thirds (67%) of students earning degrees from those institutions carried loan debt, owing an average $23,200.
But banks need not carry ordinary loans at market value.
And wealthier women were 50percentt more likely to carry expensive loans than their male counterparts.
But until this week's meeting, Spain had hoped its banks, and not the government, would carry those loans on their books and be responsible for repaying them.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com