Certified Regulatory Compliance Manager (CRCM) — Question 65

This is a loan term or an arrangement that modifies a loan term under which a bank agrees to suspend all or part of a customer's loan obligation on the occurrence of a specified event. It May be a part of the loan itself or a separate agreement. Does not include a loan payment deferral arrangement where the borrower or the bank can unilaterally defer a payment. What is it?

Answer options

Correct answer: A

Explanation

The correct answer is A, Debt suspension agreement (DSA), as it specifically refers to the arrangement that suspends loan obligations under certain conditions. Options B and D are not relevant terms in this context, while C refers to a different concept of canceling the debt rather than suspending payments.