What Is the Primary Purpose of Debt Subordination

question 40

Multiple Choice

What is the primary purpose of debt subordination?

• A) To cap homestead exemptions in limited circumstances
• B) To prevent intentional infliction of emotional distress on a borrower by bank officials
• C) To protect the senior creditor in the event the debtor becomes insolvent
• D) To make the guarantor's assets unavailable to its creditors

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