H Release clause
An acquisition and development loan obtained by a developer may be used to develop a number of building lots. Many such loan agreements contain clauses that allow the developer to release developed lots as security for the loan. In addition, a specified amount is paid back to the lender. Usually the amount that must be paid to obtain a release is greater than the proportionate amount of the loan allocated to the lot. For example, if a developer borrows $100,000 to develop 10 lots, the release amount might be $12,000 per l§t—$2,000 more than tKfe amount of loan per lot
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