IF a Securitization Transaction Meets FAS 125 Sale or Servicing

question 431

Multiple Choice

IF a securitization transaction meets FAS 125 sale or servicing criteria, the seller must recognize any gain or loss on the sale of the pool immediately and carry any retained interests in the assets sold ( including servicing rights/obligation and interest-only strips) at ____________.

• A) Principal value
• B) Fair value
• C) Premium Amount
• D) Both A&C

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Definitions:

Organic Chemists

Scientists specializing in organic chemistry, focused on the compounds of carbon and designing synthetic pathways for molecules of interest.

Carbon

A chemical element with symbol C, known as the basis of all life on Earth due to its ability to form a vast number of compounds.

Organic Substance

A compound containing carbon atoms, typically found in or produced by living organisms.

Glucose

A primary sweet substance important for the energy mechanisms in living beings and constituent of a variety of carbohydrate entities.