Finance
In New York, 'mezzanine financing' in commercial real estate is secured by:
AA second mortgage on the property
BA pledge of ownership interests (equity) in the entity that owns the property, rather than a direct lien on the real estate✓ Correct
COnly personal guarantees from principals
DGovernment bonds
Explanation
Mezzanine financing is secured by a pledge of the equity interests in the borrowing entity (LLC, LP) that owns the property, rather than by a traditional mortgage lien on the real estate itself. This allows for faster foreclosure (UCC Article 9 sale) than a mortgage foreclosure.
Related New York Finance Questions
- Which loan type is guaranteed by the U.S. Department of Veterans Affairs and requires no down payment for eligible veterans?
- Which New York City tax applies when a buyer purchases a co-op apartment?
- In New York, the federal 'conforming loan limit' is important because loans above this amount:
- Pre-qualification for a mortgage differs from pre-approval in that:
- New York law requires that before a lender can foreclose on a residential mortgage, they must provide the homeowner with a pre-foreclosure notice at least:
- In New York, 'seller concessions' at closing (where the seller pays some of the buyer's closing costs) are:
- A 'due-on-sale' clause in a mortgage requires:
- The Truth in Lending Act (TILA) requires lenders to disclose:
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →