Even though loans in CMBS pools are non-recourse, the sponsors of the borrowing entities may become personally liable for fraud, misrepresentation, misappropriation of funds, unapproved property transfers, the filing of voluntary bankruptcy, etc. These provisions contained in the mortgage loan documents that trigger recourse are referred to as: a) Subordination and Non-compliance Clauses b) Non-recourse carve-outs or Bad boy provisions c) Reverse Exculpatory Provisions d) Prevarication, Dissembling and Falsification Provisions

18. Commercial Real Estate asset valuations are cyclical. In the U.S., since 1929, the worst bear markets for CRE were characterized by:

    1. a) Asset price declines of 30-45%

    2. b) Market recovery periods of 6-8 years

    3. c) Neither (a) nor (b)

    4. d) Both (a) and (b)

18. Following the turbulence of 2008 2010, only one of the following remained an independent, publicly-traded financial services company? Which one?

    1. a) Merrill Lynch

    2. b) Washington Mutual Savings Bank

    3. c) Wells Fargo Bank

    4. d) Bear Stearns