If a Default Occurs in a Non-Recourse Commercial Mortgage-Backed Security

question 19

Multiple Choice

If a default occurs in a non-recourse commercial mortgage-backed security (CMBS) , the lender will most likely:

• A) recover prepayment penalty points paid by the borrower to offset losses.
• B) use only the proceeds received from the sale of the property to recover losses.
• C) initiate a claim against the borrower for any shortfall resulting from the sale of the property.

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Definitions:

Parasympathetic Nervous System

The division of the autonomic nervous system that calms the body, conserving its energy.

Central Nervous System

The central nervous system consists of the brain and spinal cord, serving as the primary processing center for the entire nervous system, and controls most functions of the body and mind.

The Brain

The central organ of the nervous system, responsible for processing sensory information, regulating bodily functions, and enabling cognition and emotions.

The Spinal Cord

A long, thin, tubular bundle of nervous tissue and support cells that extends from the brain. It is responsible for transmitting neural signals between the brain and the rest of the body.