The Definition of a Highly Leveraged Transaction (HLT) Loan as Adopted

question 35

Multiple Choice

The definition of a highly leveraged transaction (HLT) loan as adopted by U.S. bank regulators in 1989 includes

• A)doubling the borrower's liabilities which results in a leverage ratio higher than 50 percent.
• B)involving a buyout, acquisition, or recapitalization.
• C)results in a leverage ratio higher than 75 percent.
• D)All of the above.
• E)Only two of the above.

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Definitions:

Systems Theories

A conceptual framework focusing on the interrelationships and interdependence of various parts within a whole, emphasizing their connections and influences on each other.

Limitations

Restrictions or constraints that limit or define the scope, ability, or extent to which something can be done or achieved.

Micro

A prefix or term referring to small-scale or detailed aspects of a subject, often used in scientific and social sciences contexts.

Mezzo

This term refers to the mid-level practice in social work that focuses on small groups and community interventions.