Including a Claw Back Provision

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Question:

Can a claw back provision be included in a workout document? For example: can we collect a low interest rate to match cash flow, but when the property sells, claw back the market rate difference so that there is no loss to the bank?

Answer:

I've never heard this term used before, but based on the brief description given, this would be a matter of state law.

First published on BankersOnline.com 12/06/10