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The branch manager is resolving Construction Loan Terms during a loan setup review. Which action best fits the rule?

Correct Answer

B) Document draw, completion, and conversion conditions

Construction and construction-to-permanent loans require correct phase treatment, disclosures, and repayment analysis. The best answer is "Document draw, completion, and conversion conditions".

Answer Options
A
Close before resolving whether funds will be controlled through the required draw process.
B
Document draw, completion, and conversion conditions
C
Use completed-value assumptions without documenting construction budget and controls.
D
Release draws without inspection or completion evidence required by the program.

Why This Is the Correct Answer

Construction and construction-to-permanent loans require correct phase treatment, disclosures, and repayment analysis. The best answer is "Document draw, completion, and conversion conditions".

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