Shared Flashcard Set

Details

Real Estate Law Test 3
21-Real Estate Finance-Commercial Mortgage and Loan Document Provisions
11
Real Estate & Planning
Undergraduate 4
11/02/2009

Additional Real Estate & Planning Flashcards

 


 

Cards

Term

A junior mortgage can trigger a due in sale clause.

T/F X

Definition

 

True

 

Term
Dragnet Clause
Definition
secures additional indebtedness that the borrower may have to the lender
Term

The due on sale clause makes the mortgage non assumable.

T/F

Definition
True
Term

Loan modifications can be made with out the Guarantor's consent.

T/F

Definition
False
Term

The guarantee does not show up on the Guarantors financial statements.

T/F

Definition
False
Term
What happens when a Guarantor goes into bankruptcy? X
Definition
Payments made on the guaranteed debt may be recovered by the trustee
Term
What are two devices to take some liability off of the Guarantor?
Definition

  • dollar limit
  • liable only for certain losses

Term
If bank A extends a mortgage, then B extends a subsequent mortgage....Then A extends more money. Who gets re paid in a default?
Definition
A gets everything
Term
A future advance obligation can be created in what ways?
Definition

  1. where the mortgagor has made written application for a mortgage loan and the mortgagee is contractually obligated to go through with the transaction
  2. where a revolving or construction loan is involved, the obligation is usually created by a loan agreement entered into between mortgagor and mortgagee

Term

A debt exists at the time the obligation is made if a lender must convey a future advance.

T/F

Definition
True- if it is optional, this is not the case...funds must be conveyed or required to be conveyed
Term
Dragnet Clause
Definition
allows a lender to buy up other mortgages that a borrower may have
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