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basket loan

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basket loan

Financial institutions are heavily regulated regarding the types of loans they can make and the mixture of the types of allowable loans in the total portfolio. They are allowed to make a very small percentage of loans that would otherwise be prohibited for one reason or another.Such loans are scooped into the miscellaneous basket.The term “basket”is used in a wide variety of circumstances in law,finance,and general business dealings,and always refers to some sort of conceptual container filled with small items.



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