Explain the cross-default feature and its significance in a single-borrower / multiproperty CMBS transaction
What will be an ideal response?
The cross-default featurepermits the lender to call each loan within the mortgage pool when any one property defaults. By including this feature along with the cross-collateralization feature, the principal and interest payments of all the properties are available to meet the obligations of all the loans. As a result, a shortfall on an individual loan would not make it delinquent if the principal and interest payments from other loans in the mortgage pool are not less than the amount of the shortfall.
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Which of the following would constitute as an example of negligence per se?
A. Mellissa not checking if the new pair of jeans she bought was already defective B. Stella receiving a consignment of books that were damaged during shipment C. Matt buying a refrigerator that did not meet statutory safety requirements D. Shelton hurting himself with a drill because of a faulty lever
A husband and wife, together, can make an annual gift to an individual donee of how much each year without incurring a potential estate tax on the gifts?
A) $5,000 B) $12,000 C) $24,000 D) zero; all gifts are taxable.