Per current GAAP,the sponsor of a securitization entity may be required to treat a securitization as a collateralized borrowing instead of a sale.

Question

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According to current GAAP (Generally Accepted Accounting Principles), the sponsor of a securitization entity may be required to treat a securitization as a collateralized borrowing instead of a sale. This determination depends on the specific terms of the securitization transaction and should be evaluated by the sponsor in accordance with applicable accounting standards. Therefore, the statement is true.

Per Current GAAP,the Sponsor of a Securitization Entity May Be