Securitizations Require Credit Enhancement and the Mechanism for Credit Enhancing

question 29

True/False

Securitizations require credit enhancement and the mechanism for credit enhancing a structure are classified as internal and external.

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Definitions:

Common Law Court

A type of court that bases its decisions on precedents, or previous judicial rulings, as well as statutes and legislation.

Civil Code

A comprehensive system of laws designed to deal with the core areas of private law such as property, family, and obligations.

Quebec

A province in Canada known for its French-speaking population and distinct legal and cultural identity.

Law of Equity

The law of equity refers to a set of principles that allow courts to apply justice based on fairness, in situations where the application of strict legal rules would result in an unjust outcome.