A loan in which the borrower arranges in advance with a mortgagee for a total amount that will be advanced,in stages,under the mortgage to meet the part of the costs of construction as it progresses:

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The loan described is an open-end mortgage, which allows for a borrower to withdraw funds as needed to complete construction. The other options listed (assumption, non-recourse, and subordination) do not accurately describe this type of loan arrangement.

A Loan in Which the Borrower Arranges in Advance with a Mortgagee