Final answer:
The repayment period for a construction loan generally starts upon the substantial completion of construction and issuance of a certificate of occupancy. Construction loans have maturity terms that can be compared to 15 or 30-year mortgages where borrowers repay the loan over time.
Step-by-step explanation:
When computing the unspecified maturity date on a construction loan, the time for repayment of the loan typically starts when the construction is substantially completed and the certificate of occupancy has been issued. Similar to the analogy on p. 231 that compares the solar panel's energy output to repaying a 'loan', the repayment period for a construction loan usually begins once the asset is in a condition to be used for its intended purpose. It's important to note that maturity terms for a mortgage often extend over a significant timeframe, such as 15 or 30 years, during which the borrower is responsible for paying back the loan.