Construction lenders are exposed to certain risks that are not typically associated with long-term loans secured by the execution of income-producing real estate. These risks are partially mitigated by the provision of credit enhancements in the form of guarantees by solvent parties. Each construction loan transaction is unique and may require one or more collateral to cover certain obligations of the borrower, and these additional collateral are designed to provide the lender with the convenience of completing the project on time and with a lien and its loan being repaid on time. A construction loan certificate is a short-term obligation to finance construction projects such as subdivisions or commercial real estate. In most cases, bond issuers repay the bond by issuing a longer-term bond. They then use the proceeds of the bond to repay the ticket. To the extent that the guarantor is likely to be an affiliate of the borrower, if the borrower does not complete the project on time, the guarantor may not be able or willing to operate under the closing guarantee (in addition to the fact that the lender has likely lost confidence in the ability of the parties related to the borrower to complete the project). Even if the lender wanted the guarantor to complete the project under the terms of the guarantee, the lender may have difficulty obtaining a particular performance because the lender has the option of claiming damages under the final guarantee instead. If the guarantor fails to perform under the final guarantee, the lender may, on behalf of the guarantor, suffer and demand any loss related to the non-performance of the guarantor or the performance or performance of the guarantor`s obligations to the lender. The guarantee may provide that the lender`s losses are the lender`s expenses and expenses required to complete the project (including interest, property taxes and other operating expenses) that exceed the proceeds of the unpaid loan that remain below budget, that is, cost overruns and other excess expenses required to complete the project. The above concept may be included in a lump sum indemnification clause in the Completion Guarantee, which would provide that the Guarantor would be liable for (i) all costs incurred or would have been incurred in connection with the unsensumed completion of the Project, including, but not limited to, all operating costs that would be incurred during the period required for completion, (ii) the un disbursed portion of the loan at the time of completion of the transaction. kt of the borrower`s default.. .