A _______________ Is Effectively a Secured Loan from the Lessor

question 39

Multiple Choice

A _______________ is effectively a secured loan from the lessor to the lessee.

• A) Conditional sales agreement lease.
• B) Operating lease.
• C) Leveraged lease.
• D) Sale and leaseback arrangement.
• E) Single investor lease.

---

Definitions:

Blanket Lien

A type of lien that gives the creditor the rights to seize nearly all types of assets and property of the debtor in the event of default.

Trade Credit

A type of commercial financing where a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.

Net Period

The time period within which a net payment is due after any discounts are applied.

Compensating Balance

A minimum balance that must be maintained in a bank account, usually as a condition for obtaining a loan or line of credit.