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Loan Origination Fees Origination fees consist of all of the following: a. Fees that are being charged to the borrower as prepaid interest or to reduce the loan's nominal interest rate, such as interest buy-downs (explicit yield adjustments) b. Fees to reimburse the lender for origination activities c. Other fees charged to the borrower that relate directly to making the loan (for example, fees that are paid to the lender as compensation for granting a complex loan or agreeing to lend quickly) d. Fees that are not conditional on a loan being granted by the lender that receives the fee but are, in substance, implicit yield adjustments because a loan is granted at rates or terms that would not have otherwise been considered absent the fee (for example, certain syndication fees addressed in paragraph 310-20-25-19) e. Fees charged to the borrower in connection with the process of originating, refinancing, or restructuring a loan. This term includes, but is not limited to, points, management, arrangement, placement, application, underwriting, and other fees pursuant to a lending or leasing transaction and also includes syndication and participation fees to the extent they are associated with the portion of the loan retained by the lender. Provision 2) > Non-Performance-Related Default Covenants 05-8Some lease agreements contain default provisions that are unrelated to the lessee's use of the property, such as financial covenants (for example, maintenance of certain financial ratios related to the financial condition of the lessee). The remedies for default might include the right of the lessor to put the property to the lessee or a requirement that the lessee make a payment to the lessor. See related guidance beginning in paragraph 840-10-25-13.

Provision 3) e. Fees that are paid by the lessee to the owners of the

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