What term applies to third-party financing that is used between funds advanced by the permanent lender and funds needed to repay the construction loan? Multiple Choice Interim loan Partial financing Gap financing
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- the event of difficulty in recovering the funds advanced, claim the monies back from the borrower, and the terms of the financing provide that the borrower must return the funds borrowed. This is referred to as Financing with recourse. Select one: True FalseAn SMSF can use borrowings to purchase assets. What is the arrangement that an SMSF must use for borrowing? Select one: a. Maximum recourse borrowing b. Limited recourse borrowing c. Itemised recourse borrowing d. Dual recourse borrowingWhich of the following loan types has a beginning loan balance equal to the ending loan balance? Group of answer choices Interest-only Partially amortizing Negative amortizing Fully amortizing Equal amortizing
- Under a 75% LTV term loan structure, when is the balance of funds released by the lender to the vendor? Review Later Before the borrower’s equity contribution, after delivery of the asset to the borrower. After the borrower’s equity contribution, before the delivery of the asset to the borrower. Before the borrower’s equity contribution and the delivery of the asset. After the borrower’s equity contribution, and preferably after the asset is in the borrower’s possessionExplain Amortization Schedules and Callable Loans?What contingencies are commonly found in permanent or take-out loan commitments? Why are they used? What happens if they are not met by the developer?
