CMO Residual Tranches Have the First Claim on the Cash

question 35

True/False

CMO residual tranches have the first claim on the cash flow from a pool of mortgages.

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Definitions:

Signature Requirement

A legal or regulatory necessity for signatures on documents to validate their authenticity or to indicate agreement to terms.

Statute of Frauds

A rule of law requiring specific kinds of agreements to be documented in writing in order to be legally binding.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, aimed at harmonizing statutes across states.

Sale of Goods

The sale of goods entails the transaction and transfer of ownership of tangible personal property from a seller to a buyer in exchange for a payment.