Multiple choice

In a securitization transaction, which of the following documents are required?

(a) offer document (b) debenture (c) agreement (d) security receipt (e) discharge certificate by the NPA selling bank

  1. Only (a) to (d)

  2. Only (b) to (d)

  3. Only (c) to (e)

  4. (a) to (e) all
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Securitization is the process of pooling various types of debt - mortgages, car loans, or credit card debt, for example - and packaging that debt as bonds, pass-through securities, or collateralized mortgage obligations (CMOs), which are sold to investors. In a securitization transaction, all the given documents, but (e), are required. Thus, (1) is the correct answer.

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