One of the Advantages of Attaching a Provision with a Loan

question 2

Multiple Choice

One of the advantages of attaching a provision with a loan for it to be converted into a transferable loan certificate is that:

• A) the original lender receives interest payments from the new holder.
• B) the loan is off the balance sheet of the original lender.
• C) the certificate can be sold to third parties who receive interest payments from the original lender.
• D) the loan remains on the books of the original lender.

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Definitions:

Parol Evidence Rule

A legal principle preventing the introduction of oral or extrinsic evidence to contradict or vary the terms of a written contract.

Misrepresentation

A false statement of fact made by one party to another, which may render a contract voidable.

Easement

A non-possessory right to use and/or enter onto the real property of another without owning it, often for a specific purpose like utilities or access.

Non Est Factum

A legal defense claiming a contract is invalid due to a serious misunderstanding or mistake about its nature or terms.