Changing the Contractual Terms of a Loan, Such as Its

question 66

Multiple Choice

Changing the contractual terms of a loan, such as its maturity and interest payments is referred to as:

• A)debt repudiation
• B)debt rescheduling
• C)refinancing
• D)reinvesting

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Definitions:

Principal

The original sum of money borrowed in a loan, or the amount of the investment, excluding any interest or profit.

Torts

A body of law focusing on civil wrongs that cause harm or loss, leading to legal liability and a requirement to pay damages.

Agent

A person or entity authorized to act on behalf of another, usually in a business or legal capacity, to create a legal relationship with a third party.

Agency Relationship

A legal arrangement where one party, the agent, is authorized to act on behalf of another party, the principal, in business transactions.