Finance
A 'participation mortgage' in NC commercial real estate allows the lender to:
AParticipate only in the original loan origination
BShare in a portion of the property's income or appreciation in addition to receiving interest✓ Correct
CParticipate in managing the property
DRequire the borrower to use a specific property manager
Explanation
A participation mortgage gives the lender a share of the property's income (equity kicker) or appreciation in addition to interest, in exchange for more favorable loan terms.
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