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[–] 0 points 9 months ago (5 children)

The value of the collateral would equal the value of the loan, though. It's effectively the same thing.

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  • [–] 3 points 9 months ago (1 child)

    There is certainly some careful wording there that more intelligent people than us need to be writing. Both of you make sense, but I’m sure there would be ways to weasel out of one or the other. Something like “this or that, whichever is greater” would be a good start.

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  • [–] 2 points 9 months ago

    Exactly the point. If the collateral is the same value as the loan, then the increase in value of the collateral is realized. Unless of course they're valuing the collateral at the original value, when first obtained.

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