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Project financing is usually a loan construction that depends primarily on the project's dollars move for repayment, With all the project's property, rights, and interests held as secondary collateral.

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In the two circumstances, the properties might be employed as collateral, meaning they can be seized should possibly borrower default. To recoup expenditures once the borrowers default, the money establishments can attempt to sell the houses and utilize the sale value to pay down the related credit card debt.