The gap financing of the plain bank is $6 million.
The term "gap financing" is typically used in reference to real estate loans like bridge loans or mortgage loans. The gap between the floor loan and the maximum permanent loan committed is being financed using this interim loan. Gap finance, more technically, is temporary subordinated financing that is repaid after the first mortgagee pays all amounts due under the first mortgage loan. This is typical in a situation involving a permanent "floor-ceiling loan," where the borrower does not satisfy a rent-roll requirement and the first mortgagee funds only a floor amount, agreeing to fund the remaining balance in the event the rent-roll requirement is satisfied within a specified time frame. In this instance, the construction lender is frequently the gap lender.
To learn more about gap financing, visit:
https://brainly.com/question/15687793
#SPJ4
