If There Is a Default on a Commercial Mortgage Loan

question 19

Multiple Choice

If there is a default on a commercial mortgage loan, the lender looks to the proceeds from the ________ for repayment and has ________ to the borrower for any unpaid balance.

• A) sale of the property; no recourse
• B) sale of the property; little recourse
• C) purchase of the property; no recourse
• D) sale of the property; recourse

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Definitions:

Sum of Its Parts

A principle indicating that the whole entity or system's value or functionality is equal to the combination of its individual components or elements.

Teamwork

The collaborative effort of a group to achieve a common goal or complete a task in the most effective and efficient way.

Short-Run Equilibrium

A state where supply and demand are balanced at a particular price level within a short time frame, especially in markets or within firms.

Long-Run Equilibrium

A state where there is no tendency for economic variables, such as prices, outputs, or employment, to change, because all agents in the economy have fully adjusted to any changes.