Which of the Following Is NOT True of Loan Assignments

question 72

Multiple Choice

Which of the following is NOT true of loan assignments?

• A)All rights are transferred on sale.
• B)The loan buyer holds a direct claim on the borrower.
• C)Transfer of U.S.domestic loans is normally associated with a Uniform Commercial Code filing.
• D)Ownership rights are generally much clearer in a loan sale by assignment.
• E)Contract terms are unrestrictive from the seller's perspective.

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Definitions:

Fraud

The tort of intentionally or recklessly misleading another person or making statements without belief in their truth.

Independent Agent

An individual or entity contracted to perform tasks or services for another entity while retaining control over their work methods.

Breach

The violation or non-fulfilment of a legal obligation, contract, or duty.

Fiduciary Duty

The responsibility to act in the best interests of another party, such as in financial matters or care, characterized by trust, reliance, and a duty of care.