Under F.H.A. rules, once a new borrower is found to be creditworthy enough to assume a loan, the lender must release the seller from any future liability for payment of that loan.
Because merchants (the buyers) usually retained their assets in banks in a number of trading cities, a shipper of goods (the seller) could obtain immediate payment from a banker by presenting a bill of exchange signed by the buyer (who, in so doing, had accepted liability for payment when due).
If the court rules against the government, its potential liability for redundancy payments at insolvent companies when staff have not been properly consulted could soar.
Dow Jones & Company said yesterday that it had sued the Cantor Fitzgerald Securities Corporation, the bond brokerage firm, to end liability for annual payments of $48 million to Cantor for its bond market data.
Many people assume that the liability for any payment problems encountered with business credit cards will be at least partially assumed by their companies.
He added that by reducing the amount of basic pay, any employers involved in such a scheme would also be reducing the potential liabilities for pension payments under auto-enrolment, which are based on basic pay and would not include tips.
By casting the net widely, the IMF seems to include insurance companies, even though their main liabilities are reserves for payments to customers, something no one should have a problem with.
The lease accounting issue is one on which there is wide agreement of the need for change, in order to force companies that lease assets to show their value as assets and to show the offsetting liability for the lease payments.
Those included things like sick pay for state workers, as well as the state's liability for future pension payments, which was converted to debt in 1997 in a controversial $2.8 billion bond issue that treasury officials insist will save billions in the long run.
