Excess Loan

Excess Loan

A loan a bank makes to an individual over and above statutory limits. A national bank in the United States may not lend more than 15% of its capital to one person. For a state bank, the limit is 10%. An excess loan is any loan over these percentages.
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Using excess loan proceeds from the new CMBS loan, and additional cash equity, The Moinian Group has closed on VMLY&R's condo space, providing complete building ownership.
Conversely, a significant reduction in the bank's earnings retention or an acceleration of growth that leads to a decrease in FCC metric consistently below 9%, along with a material decline in excess loan loss reserves could also result in negative rating actions.
When a failure to comply with this regulation occurs, a correction under VCP will generally be permitted if there is a payment to the plan based on the excess loan amount with certain adjustments if loan repayments commenced before the correction.
The dealership would then split this excess loan amount with the buyer, according to court documents.
This property was previously unencumbered, and the excess loan proceeds above typical closing costs and reserves were distributed to the partners on a pro rata basis.
This feature gives rebates to customers who make advance or excess loan payments.
Employers can use the updated VFC Program to correct loans that exceed applicable limits, by requiring a participant to return the excess loan amount to the plan and amortizing the remaining principal balance as of the correction date over the remaining duration of the original loan.
"With the Guarantor Mortgage we give families of young professionals the chance to give them a helping hand by guaranteeing the excess loan amount."
The GBR-established CWSRF and DWSRF totaled approximately $106.1 million as of October 2018 and provide additional cushion by capturing excess loan repayments after debt service is paid.
At closing, USD 30m of the excess loan proceeds were deposited into reserve accounts to be used predominantly for future capital expenditures and USD 3.8 m were used to pay down the mezzanine debt balance on the overall Highland Hospitality Portfolio.
The loan allowed the borrower to recapture excess loan proceeds.
As series bonds amortize, released reserves, excess loan repayments and interest earnings are deposited into a deficiency fund, which is available to make debt service payments on any bonds issued under the master trust indenture before being released to program equity.