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Despite the fact that a bank loan will not start off out as income towards the borrower, it becomes revenue to the borrower In case the borrower is discharged of indebtedness.[ten]: 111 [13] Hence, if a financial debt is discharged, then the borrower primarily has received revenue equivalent to the level of the indebtedness.
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The lenders’ recourse is Therefore minimal mainly or solely to your project’s property, like completion and general performance guarantees and bonds, in case the project business defaults.
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