In the Classical Construction Loan

Multiple Choice

In the classical construction loan:

A) The developer borrower) owes no cash payments to the bank until the loan comes due upon completion of the construction project.
B) The developer pays interest only during the construction phase.
C) The developer pays both interest and some principle to begin to amortize the construction loan during the construction phase.
D) The developer and construction lender share equally in all payments to construction contractors during the construction phase.