If the price of the associated mortgage bond drops, the homeowner can buy the equivalent face value of bonds at a discount, and use it to redeem the existing home mortgage loan.
如果和贷款关联的债券掉价，业主就能以低价购进等量面值的债券并用之冲抵现有的贷款。
2
The author pointed out that the legal nature of note discount should be the two parties' legal act of bill right transfer by analyzing defects of "the loan doctrine" and "the note act doctrine".