What Is a Coterminous Contract

A few days ago, I came across the word coterminous for the first time. never? Of course, it was in a contract. Lawyers and lawyers involved in drafting contracts or preparing legal documents should carefully select the words and conditions used in their contracts. If you use the word coterminous, suggest the following: Coterminou loans are commonly used in mortgages. For example, if a developer builds an apartment building, they can take out a first loan to start construction. The first payments related to this first mortgage cover the amount of the capital borrowed. They can then take out a second simultaneous loan to make payments on the first loan and finance subsequent construction. Uncoterminated means that the limits, scope or duration of one thing do not correspond to another. The same settlement date also makes it easier for borrowers to determine whether refinancing initial and simultaneous loans will result in significant savings. Lenders also benefit from the same settlement data, as this represents a lower risk of default compared to a mezzanine mortgage without co-terminus. This strategy benefits both the manufacturer and the financial institution.

The builder receives an additional source of funding for their project in the form of a second loan and financing institutions can assess the progress of the project before granting a second loan. Typically, debt amounts for term loans are calculated as a percentage of the LTV or loan-to-value ratio. The higher the LTV, the greater the risk. For example, she will live her life to the fullest at the same time as her mother. A co-operative mortgage may have a minimum amount that must be borrowed. With simultaneous commercial mortgages, there could also be provisions on the property itself. But there is another problem: when the duration of the other contract ends, does it result in the termination of your contract? I would not count on Coterminous to say that. I would do that explicitly. So let`s evaluate Coterminous. It`s a clumsy word, and it`s relatively obscure. I spend all kinds of time on EDGAR and I didn`t know Coterminous.

And it does not provide a practical way to express a complex idea – its meaning is simple. I`m sure you could change my versions, but I`m happy enough with them to say the devil with Coterminous. Let`s look at what the term coterminous can mean in a contract by looking at some examples: is coterminous a valid artistic term or is it jargon? This is how MSCD articulates this distinction: lenders that offer joint loans may have a number of limitations and limitations. This may include a provision that the same lender must service all existing previous mortgages for the borrower. The lender cannot allow a simultaneous additional loan to be taken out shortly after the approval of an initial loan. The borrower may have to wait at least a year in the term of the initial loan before they can claim this additional financing. Lenders may require that the initial loan have a minimum term – five years, for example – before a simultaneous loan is approved. Here are some random examples of EDGAR, using the text coterminous in crossed out italics and my alternative in italics in parentheses: The word coterminous is pronounced as follows: ko-tur-mi-nus Here is a short list of synonyms that refer to the word coterminous: For example, there may be occupancy requirements that the borrower must meet and maintain, to qualify for an additional mortgage.

The building may need to be physically occupied at 85% at least 90 days before the end of the mortgage. The collection of replacement reserves for an additional simultaneous mortgage could be abolished; However, the replacement reserves of the original mortgage would continue to be confiscated. A new valuation of the property may be required as well as a new title insurance. The word coterminous comes from the Latin term “conterminus”, where “con” means “with” and “terminus” means “border” or “end”. .