ACI
3I0-012 · Question #510
When initially negotiating an interest rate swap, a principal indicated his intention to assign it to a third party. In executing such a transfer:
The correct answer is C. The principal should obtain the consent of the transferee before releasing its name. See the full explanation below for the reasoning.
Question
When initially negotiating an interest rate swap, a principal indicated his intention to assign it to a third party. In executing such a transfer:
Options
- AThe principal is entitled to provide the name of the original counterparty to the transferee.
- BThe principal is entitled to provide the name of the transferee to the original counterparty.
- CThe principal should obtain the consent of the transferee before releasing its name.
- DThe principal should obtain the consent of the original counterparty before releasing its name to the transferee.
How the community answered
(34 responses)- A18% (6)
- B3% (1)
- C71% (24)
- D9% (3)
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