Finance
In New York, a 'participation mortgage' in commercial real estate allows the lender to receive:
AA fixed interest rate for the entire loan term
BA share of the property's income or appreciation in addition to interest on the loan✓ Correct
CFirst priority over all other liens
DThe right to manage the property
Explanation
A participation mortgage gives the lender not only interest on the loan but also a share (participation) of the property's income (income participation) or appreciation upon sale (equity participation). This allows lenders to accept a lower interest rate in exchange for an equity-like return. Participation mortgages are used in commercial real estate financing in New York when the lender and borrower want to align interests.
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