A Standby Commitment Is

question 29

Multiple Choice

A standby commitment is:

• A) A way to increase NOI for projects with large debt service obligations
• B) An agreement by a lender to provide permanent financing for a property once construction is complete
• C) Another term for a construction loan
• D) The same thing as a take-out loan commitment

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Definitions:

Flashbacks

Sudden and intense memories of past experiences, often traumatic, that invade the present consciousness, making the person feel as if they're reliving the past.

Narcotic

A drug affecting mood or behavior and sold for nonmedical purposes, often used to induce sleep or relieve pain.

Heroin

An opioid drug derived from morphine, highly addictive, and illegal, often used for its euphoric effects.

Cocaine

A powerful and addictive stimulant drug derived from the coca plant, which directly affects the brain’s reward pathways.