Covered Bonds Are Issued By

question 23

Multiple Choice

Covered bonds are issued by:

• A) NBFIs and must have a pool of assets covering the bonds that meet 105 per cent of the face value of the outstanding covered bonds.
• B) depository institutions and must have a pool of assets covering the bonds that meet 105 per cent of the face value of the outstanding covered bonds.
• C) by depository institutions and must have a pool of assets covering the bonds that meet 100 per cent of the face value of the outstanding covered bonds.
• D) depository institutions and must have a pool of assets covering the bonds that meet 103 per cent of the face value of the outstanding covered bonds.

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Definitions:

UCC

Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, making business operations more uniform across states.

Disproportion In Value

This term does not correspond to a specific, widely recognized legal or financial principle. NO.

Consideration

In contract law, this is something of value that is exchanged between parties entering into a contract, essential for the agreement to be legally binding.

Gratuitous Promises

Promises made without expecting anything in return, often lacking legal enforceability unless supported by formalities like a deed.