A key negotiation issue between lender and borrower in a


A key negotiation issue between lender and borrower in a financing term sheet revolves around the lenders need to shift environmental liability to the borrower and the bo1TOwer's requirement for a non-recourse loan. The most common resolution is A. Line of credit established as a reserve for potential environmental issues B. Requirement of borrower to purchase environmental insurance C. Requirement to complete a Phase II environmental inspection to lender’s satisfaction D. Incorporation of an environmental carveout into the non-recourse loan docs.

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Financial Management: A key negotiation issue between lender and borrower in a
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