Appraisals
Absolute ownership in a property, free and clear of any encumbrance other than taxation, land-use controls (police power), eminent domain, and escheat.
What is a Fee Simple ownership interest?
Provides important information on the quality of a firm's operations and the quality of collateral. Required annually for all DM accounts, and FF accounts with commitments of $5MM or more; also typically performed as a pre-funding item.
What is a Field Exam?
DAILY DOUBLE!
An agreement between an owner and a General Contractor in which the contractor is compensated up to a ceiling price and any cost overruns are to be absorbed by the GC.
What is a Guaranteed Maximum Price (GMP) contract?
The ratio of
the sum of (x) vehicle inventory; plus (y) contracts-in-transit (i.e., the face value of amounts receivable by the borrower in respect of vehicles sold for which payment has not yet been received by the borrower and which amounts are not otherwise included in borrower’s accounts receivable or inventory); plus (z) borrower’s accounts receivable in respect of vehicle sales; to
the outstanding principal amount of all floor plan loans.
What is a floor plan coverage ratio?
(Place wager)
As of 11/30/18, there are 85 active accounts of this type being monitored by Secured Credit.
What are Secured Lending accounts?
This income based approach to value is calculated by taking anticipated future net income streams and a future resale value which are discounted to a present value at an appropriate yield rate
What is a discounted cash flow?
These are the three most common classes of assets that make up the collateral of formula-based lines monitored by Secured Credit.
What are Accounts Receivable, Inventory, and Marketable Securities?
An executed document agreed by the Owner and Contractor for work to be added or deleted from the original scope of work for a construction contract.
What is a change order?
This term refers to the scenario when a vehicle is sold but the corresponding loan is not paid off within the grace period from the sold date that is established by the loan agreement.
What is Sold In Violation (SIV) or out of trust?
This value is the value of a company as an ongoing entity. This value differs from the value of a liquidated company’s assets, because an ongoing operation has the ability to continue to earn profit, where a liquidated company does not.
What is Going Concern Value?
An agreement between the bank and the owner of a real estate in which inventory is kept that would allow FCB access to the property in a liquidation scenario.
What is a landlord’s waiver?
An agreement, typically between the Bank and the municipality where the construction project is taking place, in which the bank agrees to reserve a set amount of funds that will only be released upon receipt of approval from the municipality.
What is a set-aside agreement?
This guidebook is used as a valuation check when a non-auction used floor plan request is made.
What is NADA?
An appraisal for a SBA related loan transaction requires two of the following in order to meet SBA requirements.
What are approaches to value?
A report completed by a third party analyzing the potential Orderly Liquidation Value of a company’s inventory.
What is an Inventory Appraisal?
This represents an analysis of a construction project performed by a third party, looking for potential issues such as incomplete plans or under budgeting which could delay or jeopardize the project.
What is a PSCR (Plans, Specs, and Cost Review)?
What are undesirable loans?
A temporary reduction or elimination of property taxes during a set period of time.
What is a Tax Abatement?
On an SBA CAPLine, if an account debtor's AR is considered ineligible due to the taint rule one of the two following conditions must be met for the accounts to be re-established as eligible.
What is all delinquent accounts must be paid in full or written concurrence from the SBA must be obtained?
Multifamily or Senior Living construction projects are often subject to this type of covenant to ensure that the market is showing interest in the subject property.
What is a pacing/pre-leasing covenant?
The measurement is used to indicate how much of a dealership’s total fixed expenses and overhead can be covered by the profitability of the aftermarket departments (i.e. service and parts).
What is service absorption?