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In both of those circumstances, the households could be made use of as collateral, which means they can be seized need to both borrower default. To recoup prices once the borrowers default, the financial institutions can make an effort to promote the properties and utilize the sale price to pay for down the involved financial debt.
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Should the project is just not successful, then every one of the remaining property and funds flows can serve as a source of repayment for all of the creditors (outdated and new) of the put together entity (existing company additionally new project).
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