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Exam CRCM topic 1 question 106 discussion

Actual exam question from ABA's CRCM
Question #: 106
Topic #: 1
[All CRCM Questions]

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?

  • A. Omit the unknown disclosures
  • B. Estimate the amounts and note that the information is estimated
  • C. Delay consummation of the transaction until the information is ascertained
  • D. Estimate the information based on averages of all other leasing transactions the bank has made within the last six months
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Suggested Answer: B 🗳️

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Cam22
4 months ago
Selected Answer: 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.
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