Answered: Commercial loan agreements should…

Commercial loan agreements should contain which of the following: a. representations b. fees and charges c. means of repayment d. all of the above

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 81.3C

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Question

Commercial loan agreements should contain which of the following:

representations

fees and charges

means of repayment

all of the above

In order for the seller of securitized securities to remove the assets (i.e. mortgages) from the balance sheet, the sale must

have a service agreement

be overcollateralized

be without recourse

be made at a discount (original issue discount)

Banks may deny creditworthy borrowers loan requests if

they are non-corporate entities

they are on late on paying taxes

the loan is too risky

they are individuals

Chattel mortgages refer to

a security agreement using corporate assets

a security agreement using commercial equipment

a security agreement using intangible property

a security agreement using tangible personal property

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