External Credit Enhancements Come in More Complicated Forms Than Internal

question 1

True/False

External credit enhancements come in more complicated forms than internal credit enhancements and may alter the cash flow characteristics of the loans even in the absence of default.

---

Definitions:

Property Taxes

Taxes levied by local governments on real and personal property based on the assessed value of the property, used to fund public services.

Lease Agreement

A contract between a lessor and lessee that outlines the terms under which property is rented.

Depreciated

Refers to an asset that has decreased in value over time, typically due to wear and tear or obsolescence.

Sales Commission

A payment made to salespersons, often calculated as a percentage of sales revenue, for meeting or exceeding sales targets.