POSITION LETTER OR LETTER OF INTENT (LOI)

The Lender would typically charge a fee for processing the application including expenses incurred for an independent Cost Consultant to verify the cost/budget of the project. When the Lender is satisfied with the proposal, the Lender would respond with a Position Letter or Letter of Intent (LOI) specifying details of financing which encompasses timeframe, interest rates, fees and other expenses including various terms and conditions of the Lender; it also details when the fees and expenses are due at different stages of the project. The LIO also defines when funds would be disbursed to the Borrower at specific milestones of the project based on a disbursement schedule.