The FTC Rule, Which Provides That a Notice Provision Must

question 32

Multiple Choice

The FTC rule, which provides that a notice provision must be included in all consumer credit contracts, requires that the notice:

• A) limit recovery under the contract to amounts paid by the debtor plus a reasonable charge for incidental damages.
• B) be in italic type.
• C) be at least 20 points in size.
• D) has the effect that no subsequent person can be a holder in due course of the instrument.

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Definitions:

Total NCI

Refers to the Total Non-Controlling Interest in a company, representing the equity in a subsidiary not attributable directly or indirectly to the parent company.

Parent Ltd

A corporation that holds a controlling interest in one or more other companies, also referred to as subsidiaries.

Indirect NCI

Non-controlling interest (NCI) that is not directly held by another entity but is held through one or more intermediaries.

Pre-acquisition Equity

The equity value of a company before it is acquired by another firm, used to assess the financial position prior to the acquisition.