Please review the questions in the picture and answer True or False

Thank you.

1. Bank REiT lenders which issue Revolving Lines of Credit and astute equity investors prefer that those credit lines be largely available for special situations, (low levels of utilization), preserving signicant borrowing capacity, during the maturity of the loan. 2. Derivative instruments, such as Credit Default Swaps (CBS), exist because of the presence of nancial markets which can shift risks from investors who are averse to a particular credit risk to other investors who are more willing risk takers for that credit. 3. COTena ncy is a lease provision which may allow retail tenants to potentially provide the right and option to shift partial liability for a lessee's rent and related obligations to one or more tenants as part of a shared rental agreement. 4. Estoppels are a part of the investor's due diligence process which validates tenant important facts and terms associated with their leases. 5. REOCs are legacy REITs grandfathered by federal law prior to modern REIT laws and regulations subject to an alternative set of rules and procedures compared to modern REITs largely created/formed during the 19905. 6. Examples of subordinated debt instruments are (1) An unsecured revolving line of credit to a Real Estate Company whose assets are all na nced with 1-"t mortgage secured debt and (2] An unrated B Piece CMBS Tranche. 7. CM BS securities offer more diverse risk investment options than individual REIT bank credits and bonds; the former serving more varied types of investor risk appetites ranging from passive risk averse investors to active risk takers. 8. Commercial Real Estate index funds can show wide variations in returns due to funds (1) such as publicly trade REITs vs. Private CRE Investments, (2) which have different levels of leverage, (3) which have differences in valuation methodology, and (4) which have differences in geographic concentrations. 9. Institutional investors prefer to invest in those REITS having multiple RE product segments, versus singular concentrations, to achieve better diversication. 10. The Dodd Frank legislation created a provision on Risk Retention that requires the CMBS borrowers to provide limited guaranties of risk on their loans