Banking & Finance

What is a bank lessor?

A bank lessor is a bank or bank affiliate that offers leasing as part of its product mix through its regular lending units, a special leasing unit within the bank, a separate leasi...


What form do ancillary facilities commonly take?

An ancillary facility available to the borrower up to a certain amount and for a given period to be drawn upon only in a certain contingency and on short notice, commonly under a l...


What fees are incurred post-syndication?

Where only upfront fees are earned by syndicate participants (underwriters/sub-underwriters and participant lenders), borrowers can incur numerous other fees, depending on the natu...


What fees are incurred on facilities?

The facility fee is an annual fee based on the number of participating banks payable to the agent bank on the total amount of a facility, whether drawn or undrawn, as compensation...


What due diligence is performed in RE development finance?

The initial stage of a property development project is focused on due diligence, research and permitting, for which financing from lenders can be quite difficult.  Property and dev...


What due diligence is performed in acquisition finance?

Due diligence in acquisition finance is performed by investors to verify the validity, reliability and accuracy of information provided, to ensure that there is agreement with the...


What determines syndicate structuring?

Depending on the syndication strategy, lead arrangers identify and decide on which banks to invite to participate, the tiers according to commitment ("ticket"), decide on titles ac...


What determines participant-MLA relationships?

Where primary syndication is included after the initial underwriting, the total commitment of mandated lead arrangers is first marketed and distributed among sub-underwriters.  Eac...


What determines CRE underwriting?

Loan underwriting is the detailed and systematic credit analysis process by which a bank assesses and determines whether the risk of offering a loan to a particular borrower is acc...


What determines CRE finance structuring?

CRE loans are fundamentally different from commercial and industrial (C&I) loans in terms of loan documentation, collateral, assignment and transfer restrictions, liquidity exp...


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