Which of the following is not an additional funding mechanism?

Which of the following is not an additional funding mechanism?

• A. Yield Maintenance
• B. Cash Escalator
• C. Mezzanine Debt
• D. Refinancing

Answer: (A)

In real estate financing, additional funding mechanisms are ways to raise extra capital or boost cash available for a project beyond the primary loan. Yield maintenance is a prepayment protection charged if you pay off a loan early; it’s a cost to preserve the lender’s expected return, not a source of extra funding. The other options describe ways to bring in or create additional cash: mezzanine debt provides subordinated financing, refinancing can generate cash-out proceeds, and a cash escalator increases cash flow over time. So yield maintenance is not an additional funding mechanism.

In real estate financing, additional funding mechanisms are ways to raise extra capital or boost cash available for a project beyond the primary loan. Yield maintenance is a prepayment protection charged if you pay off a loan early; it’s a cost to preserve the lender’s expected return, not a source of extra funding. The other options describe ways to bring in or create additional cash: mezzanine debt provides subordinated financing, refinancing can generate cash-out proceeds, and a cash escalator increases cash flow over time. So yield maintenance is not an additional funding mechanism.