The Management Of Chicago Bank

1153 Words Oct 13th, 2015 5 Pages
Contents
Abstract 2
Introduction 3
Proposal 4
Loan 4
Amortization 5
Balloon Payment 5
Loan-to-Value 6

Abstract 'Consortium Bank '- “A subsidiary bank created by numerous banks. A consortium bank is created to fund a specific project (such as providing affordable homeownership for low- and moderate-income home buyers) or to execute a specific deal (such as selling loans in the loan syndication market)”. (Investopedia, 2009)
The Consortium generally strengthens the individual bank’s assets to meet their objectives. All member banks have equal or proportionate ownership shares – the member with the highest percentage of shares has the leading authority. After the bank 's objective is met the consortium typically dissolves.
This is a Consortium which is built under the leadership of Chicago Bank. This Consortium basically finances inner city, mixed-use projects with, 6% mortgage loans. The Loans are to be amortized over 20 years, but with 10-year balloon.
The Midwest Bank Consortium is willing to provide $200 million to very safe projects in East Lansing. They need an LTV (Loan to Value) of 70%.

Introduction
A consortium is an association of two or more entities, companies, societies or governments (or any combination of these entities) with the objective of contributing in a common activity or amalgamating their resources for achieving a collective goal.
The Mid West Bank Consortium is a cluster of Bank of Michigan, First Federal Bank, Midwest Community…

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