This is a loan term or an arrangement that modifies a loan term under which a bank agrees to cancel all or part of a customer's loan obligation on the occurrence of a specified event. It may be included as a part of the loan documents, or it may be a separate agreement. What is it?

Question

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A Debt Cancellation Contract (DCC) is an agreement where a lender agrees to cancel all or part of a borrower's loan obligation upon the occurrence of a specified event.

This Is a Loan Term or an Arrangement That Modifies