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floor loan

   Also found in: Wikipedia 0.01 sec.
floor loan
The minimum amount a lender will fund on an approved loan,with the balance payable if and when the borrower meets certain conditions,such as minimum occupancy levels or preleasing.If the borrower fails to meet the requirements,the borrower will have to secure gap financing or mezzanine financing in the interim,which can be extremely expensive.


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5 million floor loan having been funded at closing.
5% floor loan recycling exemption on loans funded through the proceeds of tax-exempt securities originally issued prior to October 1, 1993.
 
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