A $200 Million Loan Commitment Has an Up-Front Fee of 20

question 83

Multiple Choice

A $200 million loan commitment has an up-front fee of 20 basis points and a back-end fee of 25 basis points on the unused portion. The up-front fee is

• A)$250,000.
• B)$4,000,000.
• C)$400,000.
• D)$775,000.
• E)$375,000.

---

Definitions:

Procedural Unconscionability

A legal term referring to a situation where the process of making a contract is so unfair or oppressive to one party that it affects the validity of the agreement.

Nonperformance

The failure to fulfill a duty or obligation, particularly in terms of meeting the terms of a contract.

Disaffirm The Contract

The legal right of a party to renounce or revoke consent to a contract, typically due to incapacity or misrepresentation.

By Words

Through verbal expression or speech rather than written documents.