Which of the Following Is NOT Associated with Credit Enhancements

question 49

Multiple Choice

Which of the following is NOT associated with credit enhancements for asset-backed securities?

• A) Cash-collateral accounts that are deposits set aside to cover losses
• B) Financial guarantees from bond insurance companies
• C) Standby letters of credit from major commercial banks
• D) A guarantee to pay from the borrowers

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Definitions:

Irrevocable Will

is a will that cannot be revoked or altered once it has been finalized, ensuring that the wishes of the deceased are carried out as specified.

Trust Instrument

A legal document that sets up a trust agreement, specifying how the trust assets are to be managed and distributed.

Trustee

An individual or organization that holds or manages and invests property or assets for the benefit of a third party.

Legal Title

Refers to the formal right of ownership of property, which may or may not include the benefits of its use and possession.