Finance
A North Dakota commercial lender reviews a borrower's 'debt service coverage ratio' (DSCR) to determine:
AThe property's insurance coverage adequacy
BWhether the property's income is sufficient to cover loan payments (NOI / annual debt service)✓ Correct
CThe borrower's personal net worth
DThe property's maintenance condition
Explanation
DSCR = NOI / Annual Debt Service. Lenders require a DSCR of at least 1.
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