Which of the following is NOT a type of loan that frequently turns up in corruption cases?

• A. An outright payment falsely described as an innocent loan
• B. A legitimate loan made at market rates
• C. A legitimate loan made on favorable terms
• D. A legitimate loan in which a third party makes the loan payments

Answer: (B)

In corruption cases, patterns that raise red flags involve disguising illicit favors or providing hidden benefits through a loan. An outright payment described as an innocent loan can mask a bribe, and a loan given on favorable terms can secure influence. Likewise, a loan where a third party makes the payments can hide who actually benefits. A legitimate loan made at market rates, by contrast, is a normal, transparent financial arrangement with no concealed benefit or leverage, so it does not typically signal corruption. That makes a market-rate loan the correct answer here.