Covered Bonds Are Secured by a Pool of High Quality

question 14

True/False

Covered bonds are secured by a pool of high quality bank assets which allows them to be issued at lower yields than unsecured bonds.

---

Definitions:

Third-Party Tender Delivery Contract

An agreement involving three parties where one party undertakes to deliver goods or services on behalf of another to a third party.

Good Title

Good title refers to the legal right to own and sell property because it is free from any liens or claims against it.

UCC

United States commercial ventures are directed by the broad legal standards set within the Uniform Commercial Code.

Shipment Contract

A type of contract specifying that the seller is obligated to send the goods to the buyer, but the risk of loss passes to the buyer when the goods are duly delivered to the carrier.