After failing to land bank loans in Wisconsin and North Dakota, the Klapmeiers found a friendlier banker in Duluth, Minn. and relocated Cirrus.
"The problems have been focused particularly on the construction and land development loans, and that's not a surprise, " says James Chessen, chief economist for the American Bankers Association.
Overexposure to construction and development loans including loans secured by multifamily and commercial properties: If loans for construction, land development, and other land, and loans secured by multifamily and commercial property are 300% or more of total risk capital, the institution would also be considered to have a CRE concentrations above prudent levels, and should employ heightened risk management practices.
Its largest creditor, American Guaranty, foreclosed on land and equipment loans.
Nigel Encalada of the Institute for Social and Cultural Research, a state-run body, says Central Americans have snapped up land and home loans faster than locals have.
They fear that China, through an undervalued currency, trade barriers and state subsidies to its exporters - in the form of cheap land, cheap loans, export rebates and other help - is hollowing out US industry and jobs.
It continues to provide state-owned firms with loans and land which many of them then rent on at a mark-up to the private sector.
Women cannot own land, take out loans or enter into contracts.
Apologists for big government make the point, for instance, that in the 19th century U.S. railroads received massive subsidies from the federal government in the way of land grants and federal loans.
Having seen post-Soviet state assets fall into the hands of oligarchs, China built up a select group of SOEs with cheap loans, land and energy, so that the wealth would remain with the party.
Overexposure to construction and development loans: The first guideline states that if loans for construction, land development and other land are 100% or more of total risk capital, the institution is considered to have loans concentrations above prudent risk levels, and should have heightened risk management practices.
They also use requisitioned land as collateral for bank loans, adding to the potential woes of a banking system in which risk is poorly understood.
Or an indication that policy had tilted the playing field toward inefficient SOEs that thrive on subsidized inputs, such as bank loans and state land?
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Reports suggest that the government is bearing the brunt of the cost, but it remains to be seen how much of its share is in the form of land and low-cost loans.
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That makes it impossible to use land as collateral for traditional bank loans.
Unlike its highly leveraged competitors that gorged on loans to build up land banks, Godrej Properties has an asset-light business: It owns only 15% of the land that it is currently developing.
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Bankia was created just 17 months ago by the merger of seven regional savings banks in an attempt to shore up their combined defences against the bad real estate loans, worthless building land and unsold apartment blocks they had accumulated.
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Overexposure to construction and development loans: The first guideline states that if loans for construction, land development and other land are 100% or more of total risk capital, the institution is considered to have loan concentrations above prudent risk levels, and should have heightened risk management practices.
And since many loans are ultimately secured by land, banks also stand to gain should property recover.
Banks in China prefer loans that are secured by land, buildings and equipment, and are most comfortable lending to state-owned enterprises where there is an implicit government guaranty.
In the early 1990s banks shuddered as collapsing stock and land prices left swathes of customers unable to repay loans.
As the number of students grew, he needed new premises, so he took out loans and used his savings to buy land for the school.
This allows producers in these areas to apply for low-interest loans from the government, and opens up land in the conservation reserve programme for use for grazing and hay production.
This company was funded by zaito loans and charged with reducing its debts by selling land.
To be sure, land prices are dizzyingly high, and 47% of bank loans are tied to property.
They receive subsidised loans from state-controlled banks, they are given land cheaply and they usually enjoy a sheltered monopoly or oligopoly.
Only now has the government set up a credit scheme for ordinary small farmers, who cannot get bank loans, because the constitution bans them from pledging their land as surety.
Analysts reckon that at least 15 of the 119 construction firms listed on the first section of the Tokyo Stock Exchange are bust in all but name, as the value of their land holdings bought at the height of the bubble has plummeted and loans guaranteed to subsidiaries and property developers have turned sour.
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