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Special Considerations for Commercial Real Estate and Construction and Development

Question 26

Multiple Choice

Special considerations for commercial real estate and construction and development loans include which of the following:


A) Take-out commitments from a long-term lender after the completion of a project or after a certain number of years.
B) Surety bonds guaranteeing the completion of a project.
C) Higher loan rates and fees to compensate for the great risk of these loans.
D) Careful consideration of projected vacancy rates to reduce the risk of taking on a construction and development loan.
E) All of the above.

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