A Loan Officer Is Examining Your Income and the Amount

question 25

Multiple Choice

A loan officer is examining your income and the amount of your existing debt payments to help in the decision to make a loan to you today.Which aspect of the Five Cs of lending is the loan officer most likely looking at?

• A)Character
• B)Capacity
• C)Capital
• D)Collateral
• E)Conditions

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Definitions:

Choice-of-Law Clause

A provision in a contract that specifies which jurisdiction's laws will be used to interpret the agreement, typically chosen for its favorable laws towards the party imposing the clause.

Forum Selection Clause

A contract provision that specifies which court will have jurisdiction in the event of a legal dispute

Subject-Matter Jurisdiction

The authority of a court to hear cases of a particular type or cases relating to a specific subject matter.

Specific Personal Jurisdiction

The legal authority for a court in a particular location to hear a case because the events leading to the dispute occurred in that location or the defendant has sufficient contacts with the area.