William Marolf obtains a 5 million EUR mortgage loan from Bank Nederlandse. A year later the principal on the loan is 4 million EUR and Marolf defaults on the loan. Bank Nederlandse forecloses, sells the property for 2.5 million EUR, and is entitled to collect the shortfall, 1.5 million EUR, from Marolf. Marolf most likely had a:

A. bullet loan.
B. recourse loan.
C. non-recourse loan

Ans: B. recourse loan.

Business

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