Perkins Coie – CA Land Use & Development Law Report: Double Trouble – Is Black Sky Capital Blue Skies for Lenders?

 
 
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Legal Commentary on Planning and Development

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Double Trouble – Is Black Sky Capital Blue Skies for Lenders?
An annoying question for lenders is whether a lender can enforce two loans to the same borrower and secured by the same property. The nagging issue is usually raised when a lender makes (1) a first loan and an additional advance to the borrower secured by the same property, (2) a first secured loan followed by a secured credit line, or (3) a first secured loan and a new secured second loan to finance other properties.

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