Credit Instruments and Borrowing Arrangements

1
Chapter 8

• Credit Instruments and Borrowing Arrangements

2
Credit and Security Instruments

• Promissory notes
• Mortgages
• Purchase-money mortgages
• Blanket mortgages
• Open-ended mortgage
• Deed of trust

3
Credit Terms

• Fully amortizing
• Partially amortizing
• Straight/term/bullet
• Portion of interest deferred
• Fluctuating interest rates

4
Alternative Financing Methods

• Installment sales contracts
• Sale and leaseback
• Junior mortgages

5
Government-Sponsored Credit Arrangements

• Department of Housing and Urban Development
• State and local government private activity bonds
• Redevelopment bonds