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In the two instances, the homes might be applied as collateral, meaning they can be seized really should both borrower default. To recoup charges once the borrowers default, the financial institutions can try to sell the homes and utilize the sale cost to pay for down the connected personal debt.
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Project finance is the entire process of funding lasting infrastructure, industrial projects, and general public services. Personal debt and equity used to finance the project will be paid back again through the dollars generated with the project.