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The brand new Jurbala loan contained what is entitled an appeal put aside, and therefore which have mortgage fees and you may settlement costs amounted so you can $dos.34 million of your own complete. The usage of “interest reserves” is a very common practice inside framework finance but also you to prone in order to punishment. When a bank can make an attraction put aside mortgage to help you a creator, it give the brand new creator both the dominating as well as the attention on the the borrowed funds.
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