Value Appreciation.

Value Appreciation.

EQUITY PARTICIPATION — A mortgage transaction in which the lender, in addition to receiving a fixed rate of interest on the loan acquires an interest in the borrower’s real property, and shares in the profits derived from the real property. EROSION — The wearing away of land by the act of water, wind or glacial ice. ESCALATION — The right reserved by the lender to increase the amount of the payments and/or interest upon the happening of a certain event. ESCALATOR CLAUSE — A clause in a contract providing for the upward or downward adjustment of certain items to cover specified contingencies, usually tied to some index or event.