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Question 106

A bank does not know all of the specific information to be disclosed on the lease at the time of the consummation. What may the bank do after attempting to obtain the information?

    Correct Answer: B

    When a bank does not know all the specific information to be disclosed on the lease at the time of consummation, it is allowed to estimate the amounts and note that the information is estimated. This ensures that the transaction can proceed while still providing the lessee with an approximate understanding of the terms. This approach is preferred because it maintains transparency and avoids unnecessary delays, as long as the estimates are made in good faith and the recipient is clearly informed that the numbers are subject to change.

Discussion
Cam22Option: B

In many financial and leasing transactions, regulatory guidelines often allow for the use of estimates when exact information is not available at the time of disclosure, provided that the estimates are made in good faith and based on the best information available. Furthermore, it is typically required that any estimates are clearly marked as such so that the recipient of the information understands that the figures are not final and could change. This approach balances the need for timely information with the reality that not all details may be known at the initial stages of a transaction.