REMIC AND UCC EXPLAINED BY “SUI JURIS 249″
If significant numbers of loans missed payments, or went into default, the AAA tranche would receive all money due, and this went on down the line. The bottom tranche with the most risk would receive the leftover money. These were the first tranches to fail. Even if the defaulting loans were in the AAA tranche, the AAA tranche would still be paid and the lowest tranche would not. Wall Street ... ................
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