building loan agreement

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Building Loan Agreement

An agreement by a bank or other financing entity to extend capital to build a new construction. For example, a building loan agreement may be signed so a developer can build a new house or neighborhood. The money is disbursed at intervals, rather than all at once, once the builder reaches certain, defined stages of construction.

building loan agreement

A loan to finance construction.Funding is made either at preestablished stages or at completion, or upon submission and approval of invoices evidencing construction bills.

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The number of building loan agreements filed in Manhattan fell by 20 percent in 2008 to the lowest level in a number of years, as lenders pulled back the reins on construction spending.
Building loan agreements are generally filed as the construction loan is closed, regardless of the size of the loan, to record what money is available for so-called "hard" construction costs like contractors and suppliers.

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