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QUESTION 6 Why is collateral a ready source of support and the secondary source of repayment for commercial loans made by a community bank? Community

QUESTION 6

Why is collateral a ready source of support and the secondary source of repayment for commercial loans made by a community bank?

Community banks commercial loans often provide funds for borrowers to acquire assets

Community banks have a policy preference for unsecured commercial loans

Community banks have a policy preference for personally guaranteed commercial loans

Community banks assume the primary source of repayment will always be sufficient as a means of commercial loan support.

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