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And right now we have one conditional loan commitment to one nuclear project, and there are several others that are under consideration.
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In addition, the loan commitment places the government in a senior position in the result of a bankruptcy, ensuring that DOE will get paid out before the VCs and other investors.
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Announcement of a Department of Energy loan commitment.
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Papers were signed, documents were gathered and photocopied, the appraisal was done, more documents were gathered and photocopied, verifications were made and the completed loan file has now been submitted to the underwriting queue for the coveted mortgage loan commitment.
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The DOE Loan Guarantee Program Office has provided a draft term sheet for the California Valley Solar Ranch project, which is a significant milestone in the process leading to a conditional loan guarantee commitment.
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The accepted practice in bank accounting is to set up significant loan-loss reserves only when the commitment is availed of and the arrangement becomes an on-balance-sheet loan.
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For instance, a conventional loan usually takes half the time process including the time it takes to review the credit risk and making the commitment to financing.
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It has also put off much-needed structural reform of provincial-government finances, a commitment made by the previous government to the International Monetary Fund (IMF) as a condition of its loan agreements.
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