A Construction Loan Can Include All of the Following Conditions

question 12

Multiple Choice

A construction loan can include all of the following conditions EXCEPT:

• A) disbursement only after certain construction has been completed
• B) a release of that portion of the collateral on which disbursement of funds has been made
• C) a method of assuring the lender that money disbursed to a borrower/builder is used to pay a project's bills
• D) a requirement for periodic inspection to assure the lender that all plans and specifications are being met

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Definitions:

Admit May

A term that appears to refer to the acceptance or permission granted in the month of May, but without a specific context, its exact meaning may vary.

Goodwill Method

An accounting technique used to record the excess of purchase price over the book value of acquired assets during a business acquisition.

Capital Balances

The amount of equity funding provided by owners or shareholders of a company, reflecting their stake or ownership interest.

Profit and Loss

A financial statement summarizing the revenues, costs, and expenses incurred during a specific period of time, usually a fiscal quarter or year.