Repayment for commercial loans made by community bank

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Reference no: EM132059182

Why is collateral a ready source of support and the secondary source of repayment for commercial loans made by a community bank?

Community banks’ commercial loans often provide funds for borrowers to acquire assets

Community banks have a policy preference for unsecured commercial loans

Community banks have a policy preference for personally guaranteed commercial loans

Community banks assume the primary source of repayment will always be sufficient as a means of commercial loan support.

Reference no: EM132059182

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