Acquisition, Development, and Construction Loan Policy
The purpose of this Acquisition, Development, and Construction (ADC) Loan Policy Template is to address ADC loan products, underwriting, and related lending operations of a bank, credit union, or other type of financial institution. In general, a financial institution’s ADC Lending Program is used to finance the land acquisition, land preparation, and construction of a single residential or commercial building. In addition, the ADC Lending Program offers financing to a single or multiple phase development of many units.
Table of Contents
- Purpose and Contents – Topic 1
- Policy Statement – Topic 2
- Types of ADC Lending – Topic 3
- Construction Risk and Mitigation – Topic 4
- Market Conditions – Topic 5
- Acceptable Loan Types, Limits and Requirements – Topic 6
- Underwriting Requirements – Topic 7
- Audit Policy – Topic 8
- Staff Training – Topic 9
- Retention of Documentation – Topic 10
Recent updates to this product:
Federal Bank Regulatory Agencies Issue Final Rule on Treatment of High Volatility Commercial Real Estate
Current Expected Credit Losses (CECL) Accounting Standard
Joint Release – Agencies Issue Statement Regarding the Impact of the Economic Growth, Regulatory Relief, and Consumer Protection Act
This Acquisition, Development and Construction (ADC) Loan Policy Template (approximately 24 pages) is available to purchase from BankPolicies.com in Microsoft®Word format.
NOTE: The complete contents of this product are also included in the Commercial Real Estate Loan Policy Template.
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