Interest payments on construction loan

Assignment Help Financial Management

Reference no: EM132029369

1. The seller-lessee cannot account for the transaction as a sale of the property if:

1) the seller-lessee provides non-recourse financing for all or a portion of the sales price

2) the seller-lessee is not relieved of any existing debt on the property that may be assumed by the buyer-lessor

3) the seller-lessee is required to compensate the buyer-lessor for a decline in the fair market value of the property at the end of the lease term

4) all of the above

2. Interest payments on a construction loan are usually financed by the construction lender.

1) True

2) False

3. In the ADC process, the takeout lender is one who will provide permanent financing once the project is completed.

1) True

2) False

Reference no: EM132029369

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