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They'll want wider spreads between their borrowing and lending rates to offset the risks of declines in building collateral values.
As a veteran of the commercial real estate market with more than three decades of experience, I know that it helps to have the land and building collateral backing the investment and preserving base case capital.
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Most of the pieces – the aggressive prosecutions and policing, longer sentences, prison-building, collateral consequences of convictions such as losing the right to vote or the chance to live in public housing – had been put in place, and the years since had been primarily dedicated to maintaining and tinkering with that basic architecture.
We're higher than a senior loan, but a senior loan has the building as collateral.
Seven of the buildings are finished, and the group has been using each completed building as collateral to secure a loan and replenish its capital for the next.
Using the building as collateral, they took out a loan to pay off $23 million in debt from Republic Windows, and then in 2006 sold the building for $31.5 million to the William Wrigley Jr. Company.
The legal term technically referred to the city's possession of a building as collateral against a tax-delinquent owner, but soon became shorthand for the city's entire housing policy.
Even if the co-op could persuade a lender to take only the building as collateral, Mr. Kucker said, some ground leases require the co-op to get the property owner's permission to do so.
This method kept the college solvent in the short term, but in order to remain afloat the Trustees decided to borrow money using the University property and building as collateral.
It also suggests that companies are amassing the materials either as a hedge against inflation or as a means of building up collateral with which to get more loans at a time when monetary authorities are attempting to tighten the credit supply.
One option would be to use some of the company's buildings as collateral.
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