Project financing poses distinct risks for lenders; when a tenant defaults or declares bankruptcy, landlord and lender are often opposed
Article Abstract:
Lenders for facility developments or similar project financings must tread carefully given the leasing and financing expertise needed, together with other disciplines. In particular lenders must ensure the borrower's contract with the landlord recognizes their own rights and goals, and that they can step in to the tenant's rights and attempt to cure any tenant defaults. In such a case the lender's and landlord's interests can easily conflict. Exit strategies, condemnation, and fee mortgages are also discussed.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1996
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Acquisition loans pose added risks for lenders: with careful drafting, lenders can reduce risks arising from 'mortgages on mortgages.'
Article Abstract:
Mortgages on mortgages are becoming increasingly popular once again. The transactions are variously known as hypothecation, collateral assignment, acquisition loans or pledges. Typically, lenders use these financing mechanisms for purchase of existing mortgages that are already in default. Nonetheless, the strength of the acquisition loan structure is no greater than the creditworthiness of the mortgage holder.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1997
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Bridge financing can be a salvation or an albatross; companies entering the world of interim loans should take heed of downsides and upsides
Article Abstract:
Bridge financing to enable a company to stay in business pending an equity round or a company sale is discussed. The impact of bridge financing on future financing rounds and issues arising with bankruptcy are also discussed.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 2001
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