Peterboro Recently Defaulted on a Bank Loan

question 59

Multiple Choice

Peterboro recently defaulted on a bank loan. To avoid a bankruptcy proceeding, the bank agreed to a composition. This composition would do which one of the following?

• A) Forgive the loan payment in its entirety
• B) Extend the due date on the missed loan payment
• C) Reduce the amount of the loan payments so Peterboro can pay timely
• D) Transfer some of Peterboro's assets to the bank in lieu of the loan payment
• E) Transfer all the equity shares in Peterboro to the lending bank

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