Multiple Choice
In a loan participation
A) the holder (buyer) is not a party to the underlying credit agreement,so the initial contract between the loan seller and the borrower remains in place after the sale.
B) the holder (buyer) is a party to the underlying credit agreement,so the initial contract between the loan seller and the borrower remains in place after the sale.
C) the holder (buyer) can vote only on material changes to the loan contract such as changes in interest rate or collateral backing the loan.
D) the holder (buyer) is not a party to the underlying credit agreement,so the initial contract between the loan seller and the borrower remains in place after the sale and the holder (buyer) can vote only on material changes to the loan contract such as changes in interest rate or collateral backing the loan.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: Insurance companies and pension funds are important
Q21: Selling loans without recourse is a way
Q46: An FI that sells a loan with
Q76: If an FI embraces the concept of
Q78: Which of the following transactions does NOT
Q80: A type of FI that predominantly buys
Q82: Banks that sell many of their loans<br>A)utilize
Q84: The move toward market value accounting<br>A)increases banks'
Q85: Loan participations<br>A)are riskier than loan assignments.<br>B)are less
Q86: Which of the following observations is NOT