James borrows $$300,000$ for a home from Bank A$.$ Bank A resells the right to collect on that loan to Bank B$.$ Bank B securitizes that loan with hundreds of others and sells the resulting security to a state pension plan, which at the same time purchases an insurance policy from a company called AIG that will pay off if James and the other people whose mortgages are in the security can$$t pay off their mortgage loans. Suppose that James and all the other people can$$t pay off their mortgages. Which financial entity is legally obligated to suffer the loss? LO$14\mathrm{.}6$

a$.$ Bank A

b$.$ Bank B

c$.$ the state pension plan d$.$ AIG