With that promise in hand, the bank would make the purchase and immediately sell it onto the buyer at a mark-up, agreeing the buyer could pay, say, three months after goods are delivered--in effect, trade finance at a fixed rate with legal protection against defaulton the one side and loan sharking on the other.
The newspaper reported that ReconTrust, a division of Countrywide Financial, filed a notice of default related to aloan for McMahon's house in Los Angeles County Recorder's Court on Feb. 28.