13-67 An Adverse material changes in conditions clause is included in loan commitments to protect the FI against

Question

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An Adverse material changes in conditions clause is included in loan commitments to protect the FI against credit risk. This clause allows the FI to re-evaluate its commitment to lend based on any changes in the borrower's financial condition or other circumstances that may affect its ability to repay the loan. This helps the FI to mitigate its credit risk and avoid potential losses.

13-67 an Adverse Material Changes in Conditions Clause Is Included