Which of the Following Typically Would NOT Be Used as a Basis

question 1

Multiple Choice

Which of the following typically would NOT be used as a basis for a participation loan?

• A) Increase in value over the holding period
• B) NOI in excess of a base amount
• C) Cash Flow after regular Debt Service
• D) Potential gross income

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Definitions:

Compounded Annually

Definition: Refers to the calculation and addition of interest to the principal sum of a loan or deposit once every year.

Debt

money that is owed or due to be paid to someone else, often as a result of borrowing funds.

Investment Account

An account held at a financial institution that is used for investing in securities, such as stocks, bonds, and mutual funds.

Withdraw

The process of withdrawing money from a bank account or investment.