13) Lets assume this CMBS security is comprised of 3 mortgages totaling $150,000,000, $50,000,000 and $25,000,000. If the borrower on the $25MM mortgage defaults, and the loan is liquidated with a 10MM loss, what is the impact on the capital structure?

a) The $10MM loss is applied to Class C and the $15MM of proceeds from the asset sale is applied to pay down the Class A.

b) A total of $25MM is applied to Class C as a write-off.

c) A total of $25MM is applied to Class A as a paydown.