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:

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