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Hey Aba, I thank you for keeping me less emotional and more logical. I have changed my mind again. I was talking to an old timer and he said if you had a job and a garden the Depression was not to bad. Yep, I think now I need a good depression. Leaman next and check this out Borrowers Find What Citigroup Says Isn't What It Does (Update1)

By Bob Ivry

March 14 (Bloomberg) -- Real estate developer John Wimmer paid Citigroup Global Markets Realty Corp. almost $1 million last year to lock in a 5.6 percent mortgage rate on the refinancing of six commercial properties.

At the November closings, Citigroup, citing plummeting demand for mortgage bonds, boosted the rate to 7.123 percent.

``I was very upset,'' Wimmer said in a phone interview from his office in Hales Corners, Wisconsin. ``We had many proposals to lock the rate with other financial institutions and we picked Citigroup because of their reputation and strength.''

Wimmer sued. So did a developer in Kentucky after Prudential Mortgage Capital Co. invoked the ``material adverse change'' clause in their loan agreement to raise his rate.

Banks have used the clause after calamities such as the terrorist attacks of Sept. 11, 2001, to free themselves from lending obligations. With the spreads between commercial mortgage- backed securities and 10-year U.S. Treasuries at their widest in at least 12 years, banks are applying the concept to avoid lending at money-losing rates, scuttling deals, leaving borrowers at risk and casting doubt on contracts that have already been negotiated.

``We are in an extremely uncertain time and no one should feel sanguine about any agreements that are on the table,'' said Scott A. Singer, executive vice president of Singer & Bassuk Organization in New York, which arranges real estate financing. ``Lenders with the best intentions find the game changing on them. This is a time to put your head down and execute business as quickly and efficiently as you can.''

Sept. 11 Attacks

Commercial mortgage lenders had not used the material adverse change clause, or MAC, to back out of commitments since the Sept. 11 attacks, and the case law on its invocation in mortgage lending has not been established, said Douglas Buck, a real estate attorney at Foley & Lardner LLP in Madison, Wisconsin.

``No one has developed a standard,'' Buck said. ``To borrowers, material adverse change has to be a total catastrophic event, like 1929 or 9/11, but I don't think that's what it is in the eyes of the lender. IF there's a 60- or 70-basis point jump in the market, that's not a material adverse change. It's a bad business decision.''  which one will fall next and Ron Paul will be our next president.

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