Multiple Choice
Which of the following is true of an 'adverse material change in conditions clause' used in a loan commitment?
A) It allows the FI to cancel or reprice a loan commitment.
B) It protects the lender against takedown risk.
C) It protects the lender against basis risk.
D) Exercise of the clause helps defaulted borrowers.
E) It is exercised frequently by most FIs.
Correct Answer:
Verified
Correct Answer:
Verified
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