Which of the following statements is true?
A)Back-end fee is the fee imposed on the used component of a loan commitment.
B)Back-end fee is the fee imposed at the beginning of a loan contract.
C)Back-end fee is the fee imposed on the unused component of a loan commitment.
D)Back-end fee is the fee imposed at the end of a loan contract.

Question

Quizplus · Accepted Answer

Back-end fee is the fee imposed on the unused component of a loan commitment, meaning that it is a fee charged for the portion of the loan that is available but not used. It is typically a percentage of the unused loan amount and is charged at the end of the loan term. The other options are incorrect as they do not accurately describe what a back-end fee is.

Which of the Following Statements Is True