The Resort Finance division was a particularly high-risk segment of the company.
Resort Finance was the term used to describe what were time-share interests that FINOVA
was nancing.95 Time-share nancing is a particularly risky form of nancing because len-
ders are loaning money to borrowers who live in France for property located in the
Bahamas that has been built by a company from the Netherlands and is managed by a rm
with its headquarters in Britain. The conuence of laws, jurisdiction, and rights makes it
nearly impossible to collect should the borrowers default. And the default rate is high
because time-sharing interests are a luxury item that are the rst payments to be dropped
when households experience a drop in income because of illness or the loss of a job.