13-66 Which of the Following Is True of an 'Adverse

question 69

Multiple Choice

13-66 Which of the following is true of an 'adverse material change in conditions clause' used in a loan commitment?

• A)It allows the FI to cancel or reprice a loan commitment.
• B)It protects the lender against takedown risk.
• C)It protects the lender against basis risk.
• D)Exercise of the clause helps defaulted borrowers.
• E)It is exercised frequently by most FIs.

---

Definitions:

Drinking

The act of consuming liquids, often specifically referring to the consumption of alcoholic beverages.

Cancer Development

The process by which normal cells undergo genetic changes and begin to grow uncontrollably, forming a mass called a tumor, which can be benign or malignant.

Lung Cancer

A type of cancer that originates in the lungs, often linked to smoking and environmental toxins.

Cancer Deaths

The number of mortalities directly attributed to various forms of cancer within a specified population and time period.