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    Question

    Under project financing for highways (PPP), the typical

    security for lenders may include:
    A Hypothecation of cash flows, assignment of receivables, pledge of project accounts, step-in rights Correct Answer Incorrect Answer
    B Only personal guarantee of employees Correct Answer Incorrect Answer
    C Equity shares of unrelated companies Correct Answer Incorrect Answer
    D Off-balance sheet guarantees only Correct Answer Incorrect Answer
    E No security required Correct Answer Incorrect Answer

    Solution

    Lenders secure project cash flows and assets; step-in rights allow sponsor replacement on default.

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