When the Debtor Sets Aside Money in a Trust Such

question 85

Multiple Choice

When the debtor sets aside money in a trust such that the investment and any return will be sufficient to pay the principal and the interest to the creditor, but the creditor does NOT release the company from the primary obligation to settle the debt, this type of arrangement is known as

• A) in substance defeasance.
• B) in substance refunding.
• C) substantive repayment.
• D) legal defeasance.

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Definitions:

Rods

Photoreceptor cells in the retina of the eye, highly sensitive to light, which enable vision in low light conditions.

Malleus

A small bone in the middle ear that transmits sound vibrations from the eardrum to the incus, also known as the "hammer."

Tympanic Membrane

Eardrum; cellular membrane that separates the external from the middle ear; vibrates in response to sound waves.

Oval Window

Membranous structure to which the stapes attaches; transmits vibrations to the inner ear.