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What Is the Primary Purpose of Debt Subordination

Question 33

Multiple Choice

What is the primary purpose of debt subordination?


A) To cap homestead exemptions in limited circumstances
B) To prevent intentional infliction of emotional distress on a borrower by bank officials
C) To protect the senior creditor in the event the debtor becomes insolvent
D) To make the guarantor's assets unavailable to its creditors

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