True or False: In general, term loans can be created more quickly than bond issues because they (1) tend to be negotiated directly with the lender, (2) require less formal documentation than bond issues, and (3) are not registered with the Securities and Exchange Commission (SEC).

Question

Social Studies

Jaylin Acosta

3 January, 13:03

True or False: In general, term loans can be created more quickly than bond issues because they (1) tend to be negotiated directly with the lender, (2) require less formal documentation than bond issues, and (3) are not registered with the Securities and Exchange Commission (SEC).

+1

Answers (2)

Know the Answer?

Jaylen Higgins · Answer 1

The correct answer is False

A bank loan is an agreement made between the bank and the customer, where you take a certain amount with the promise to pay in the future, plus interest and, often, in pre-defined installments. The agreement of the amount released for each client, as well as the interest rate, is different between one bank and another and negotiated under the terms of the loan agreement made.

The loaned amount does not need to have a fixed destination, that is, the customer can spend it with whatever he wishes, different from financing and costs, where the customer must have a specific destination for the money released by the bank, as long as he pays on time future installments.

First Mate · Answer 2

Answer: True Option b

Explanation: the

disclosure and regulatory needs in effecting a public bond issue are taskingly difficult and stressful due to it different procedures. loan documentation does not usually takes time. Some can be a day and maximum is3-6 days but in bonds, it quite different, it takes week to document and finalize. At most 3 weeks upward.