When the Client Is a Financial Institution, and the Loan

When the client is a financial institution, and the loan is made under normal lending conditions, which of the following loan types would be considered a violation of the independence rule?

A) home mortgages that are a material percent of the appraised value of the property
B) direct loans that are not material in relation to the borrower's net worth
C) unsecured loans obtained by the member and guaranteed by her firm
D) loans of any type, as there are no exceptions to this rule
E) indirect loans that are not material in relation to the borrower's net worth

Correct Answer:

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