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In a Participation Loan,the Purchaser Is an Outsider to the Loan

question 17

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In a participation loan,the purchaser is an outsider to the loan contract between the financial institution selling the loan and the borrower.


Definitions:

Risk

A prediction concerning potential loss based on known and unknown factors.

Hazard

A potential source of harm or adverse health effect on a person or persons.

Shared-Property Ownership

An arrangement where two or more parties hold title to a property together, sharing rights and responsibilities.

Tenancy

A legal arrangement whereby an individual or entity occupies land or property rented from another, typically for a specified period under a lease.

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