15. Consider the following statement: "Construction lenders require a greater yield on their funds than permanent lenders". Which of the following options is correct? (1) This statement is true because construction lenders face a number of risks that may be encountered through the development process that permanent lenders do not face. (2) This statement is true because it is more difficult for construction lenders to obtain capital than it is for permanent lenders. (3) This statement is false because construction lenders and permanent lenders typically require the same yield, since the underlying project and developer are identical for both lenders. (4) This statement is false because permanent lenders are more sensitive to the risk of default on payments, and to compensate for the potential losses in the event of a default, they will charge higher interest rates than construction lenders. 16. Colby Enterprise is hoping to undertake a new development project. Kate, a construction lender, has been approached by Colby to provide a loan for this project. Kate wishes to assess the potential risks of the project before committing to lending the money. Before underwriting the loan, Kate should confirm that Colby: A. can obtain the necessary planning permission. B. will ultimately be able to carry out the actual development. C. will be able to lease, sell, or refinance the project within the time and cost constraints. D. can acquire the land that they intend to use for the project. (1) All of the above (2) Only B and C (3) Only A and D (4) Only A, C, and D