Choose the Word or Phrase in [ ] Which Will

question 29

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-With most ARMs,the interest rate over the lifetime of the loan can [increase to any level | increase only up to the pre-stated maximum].

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Definitions:

Chapter 11

A provision of the United States Bankruptcy Code that allows businesses to reorganize their debts and continue operating.

Chapter 13

A section of the U.S. bankruptcy code allowing individuals earning regular income to develop a plan to repay all or part of their debts.

Debtor

An individual or entity that owes money to another entity, known as the creditor.

Bad Faith

Intentional dishonest act by not fulfilling legal or contractual obligations, misleading another, entering into an agreement without the intention or means to complete it, or violating basic standards of honesty in dealings.