An agreement by a financial institution or another investor to make a long-term loan at a certain, stated date in the future. A take-out commitment may be made in construction or other projects when short-term financing is initially beneficial but the borrower anticipates long-term financing to become more advantageous at a later time.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A binding agreement by a lender to provide permanent financing at the expiration of the construction financing, if certain conditions have been met.These usually include minimum occupancy levels for an income-producing property.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.