Back-to-Back Commitment

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Back-to-Back Commitment

An agreement in which a bank makes a loan for a new construction and an investor promises to buy that loan from the bank at a specified future date. This commitment reduces the risk the bank takes on when it makes a loan. A back-to-back commitment is identical to a take-out commitment, but applies to loans on new constructions, rather than mortgages on existing properties.

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Despite our back to back commitments of friendship and brotherhood as well as our recent generosity by sending troops to Saudi Arabia, we did not receive the reciprocation we deserve.

The lone warrior

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