Construction loan(redirected from Construction Loan Note)
Also found in: Financial, Acronyms.
An interim loan of money secured by a negotiable bond or mortgage, or trust deed. The money obtained is intended to defray the cost of the building to be erected. Usually advanced in specified sums during the progress of construction. After completion, the loan is often converted into a long-term loan.
A loan to a builder for a short term, financing construction prior to permanent financing.