There Are Provisions in Credit Card Receivable-Backed Securities That Require

Multiple Choice

There are provisions in credit card receivable-backed securities that require ________ of the principal if certain events occur. When ________ occurs, the bond classes are retired sequentially by distributing the principal payments to the specified bond class instead of using those payments to acquire more receivables.

A) early amortization; late amortization
B) early amortization; early amortization
C) late amortization; late amortization
D) timely payoff; early payoff