The Definition of a Highly Leveraged Transaction (HLT) Loan as Adopted

question 18

Multiple Choice

The definition of a highly leveraged transaction (HLT) loan as adopted by U.S. bank regulators in 1989 includes

• A)doubling the borrower's liabilities which results in a leverage ratio higher than 50 percent.
• B)involving a buyout, acquisition, or recapitalization.
• C)results in a leverage ratio higher than 75 percent.
• D)All of these.
• E)None of these.

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Definitions:

Growth In Infancy

The rapid physical and psychological development occurring in human beings between birth and the end of the second year of life.

Prenatal Development

The progression of maturation and formation inside the uterus from fertilization to delivery.

Canalization

A genetic term referring to the ability of an organism to produce the same phenotype regardless of variability in its environment or genotype.

Environmentally Induced

Conditions or changes in an organism that are caused by external environmental factors rather than genetic influences.