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for > 0. Therefore, the posterior distribution of is Gamma(n0 , posterior distribution of 1 , based on data D1 = {t10 , . . . , t1n1 }, is
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which do not impair the normal use of the property or inhibit the Purchaser from constructing any reasonable improvements or additions to the House; (iii) laws and government regulations that affect the use and maintenance of the House, provided that they are not violated by the existing House and improvements or by their current use; (iv) consents by the Seller or any former owner of the House for the erection of any structure or structures on, under, or above any street or streets on which the House may abut but which are not within the boundary lines of the House. (b) Seller shall deliver to Purchaser an aff idavit of title at Closing. If a title examination discloses judgments, bankruptcies, or other returns against other persons having names the same as or similar to that of the Seller, the Seller shall state in the aff idavit showing that they are not against the Seller. (c) If required pursuant to local law, Seller shall deliver to Purchaser, at Seller s sole expense, a certif icate of occupancy. Seller shall make any repairs necessary to obtain the certif icate of occupancy at Seller s sole expense up to a maximum of One Thousand Dollars ($1,000). If repairs in excess of such amount are required and Purchaser is unwilling to assume the cost, then either party hereto may cancel this contract, and the provisions of Section 14 of this Contract shall apply. 18. Risk of Loss. The risk of loss or damage to the premises by f ire or other casualty until the delivery of the deed is assumed by the Seller. If there is a f ire or other casualty to the House prior to the Closing and the cost of repairing the damage exceeds Ten Thousand Dollars ($10,000), Purchaser may cancel this Contract and the provisions of Section 14 of this Contract shall apply. 19. Transfer and Recording Taxes. The Seller shall deliver a check at the Closing payable to the order of the appropriate State, City, or County off icer in the amount of any applicable transfer tax, recording tax, or both, payable by reason of the delivery or recording of the Deed together with any required tax return. The Purchaser s attorney, at Purchaser s expense, shall complete any tax return and cause the check and the tax return to be delivered to the appropriate off ice promptly after Closing. 20. Broker. The Purchaser and Seller state that neither has dealt with any broker in connection with this sale other than Joe s Real Estate Company, Inc., and the Seller agrees to pay the broker the commission earned pursuant to a separate agreement at the rate of Five Percent (5%). Each party agrees to
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Because it has data on loans, the FRM Loan Loss Database is able to look at differences in recovery rates for loans versus bonds. The data in Exhibit 3.24 are similar to those from S&P PMD (see Exhibit 3.21). FRM calculates average recovery rates by several classi cations, such as collateral type, defaulted loan amount, borrower size, borrower type, and industry of the borrower. Subscribers to the Loan Loss Database receive all the underlying data points (except for borrower and lender names) so they can verify the FRM calculated results or perform additional analysis using alternative discount rates or different segmentation of the data. Exhibit 3.25 illustrates the bimodal nature of the recovery rate distribution that is estimated by FRM s Loan Loss Database. A signi cant number of loans to defaulted borrowers recover nearly all the defaulted exposure; and a signi cant number of loans to defaulted borrowers recover little or none of the defaulted exposure. This evidence suggests that it is preferable to incorporate probability distributions of recovery levels when generating expected and unexpected loss estimates through simulation exercises, rather than use a static average recovery level, since the frequency of defaulted loans that actually recover the average amount may in fact be quite low. Studies Based on Secondary Market Prices Altman and Kishore In 1996 Ed Altman and Vellore Kishore published an examination of the recovery
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This real estate option is given on this ninth day of July 2005, by David D. Jones, a single man, known hereinafter as the Optionor, to Donald S. Reed, a single man, known hereinafter as the Optionee. Optionor, in consideration of the sum of ten thousand dollars ($10,000), paid by Optionee to Optionor, grants to Optionee the exclusive, unrestricted, and irrevocable right and option to purchase, on the following terms and conditions, that certain real property known as: 45735 Hillsborough Avenue, Tampa, Florida 33603, and legally described as: Lots 47, 48, and 49 of Carters subdivision according to map or plat thereof as recorded in plat book 69, page 89, of the public records of Hillsborough County, Florida. In the event Optionee shall exercise the option, the consideration paid for the option shall be applied against the purchase price. If Optionee does not exercise the option, Optionor shall be entitled to retain the consideration paid for the option as complete compensation for the option, and no portion thereof shall be refunded to Optionee. The purchase price of the property is three hundred and fifty thousand dollars ($350,000), which amount will be paid if Optionee elects to exercise this real estate option. If this real estate option is exercised, Optionor, as Seller, and Optionee or assigns, as Buyer, shall perform the Purchase Agreement attached hereto as addendum one (1). This option is effective immediately and will expire at 12:01 a.m. on July 8, 2006.
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