Appraisals
An assumption, directly related to a specific assignment, as of the effective date of the appraisal, which, if found to be false, could alter the appraiser’s opinions or conclusions.
What is an Extraordinary Assumption?
These Borrowing Base Codes (listed on Xperience and within the Approval) will indicate if a revolving line of credit is to be monitored by Secured Credit.
What are DM, FF and MK?
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?
Used dealers are often subject to this type of covenant to ensure sufficient collateral value in a liquidation scenario.
What is an LTV covenant?
This document, which is collected during each draw from the General Contractor and oftentimes subcontractors, relinquishes the contractor’s rights to encumber the real estate due to unpaid applications for payment.
What is a lien waiver?
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)?
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?
Five Model Years Old
What is the maximum model year age allowed per policy for the flooring of used vehicles?
DAILY DOUBLE!
These are the three approaches to value that an appraiser will use. The approaches (a) value land, cost of improvements, subtracting depreciation and obsolescence; (b) utilize similar sales in the market to conclude market value; and (c) use a property’s specific income potential to conclude value.
What are the Cost, Sales Comparison, and Income Approaches?
5% per month starting in 4th month following floor plan date with maturity in 8th month following floor plan date
What is the policy curtailment rate for used vehicles?
Final lien waivers, Certificate of Substantial Completion, As-built survey, and Certificate of Occupancy
What are the typical final draw requirements?
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?
This monetary threshold was recently surpassed by Secured Credit in terms of total commitments monitored.