CNSREIT-AR-2024 Final - Flipbook - Page 57
There are certain risks associated with the insolvency of obligations backing MBS and other investments.
The real estate loans backing the MBS and other investments may be subject to various laws enacted in the jurisdiction
or state of the borrower for the protection of creditors. If an unpaid creditor files a lawsuit seeking payment, the court may
invalidate all or part of the borrower9s debt as a fraudulent conveyance, subordinate such indebtedness to existing or future
creditors of the borrower or recover amounts previously paid by the borrower in satisfaction of such indebtedness, based on
certain tests for borrower insolvency and other facts and circumstances, which may vary by jurisdiction. There can be no
assurance as to what standard a court would apply in order to determine whether the borrower was
