When the developer wishes to acquire a construction and development loan, the construction lender usually wants to see the developer's permanent-loan "take-out" commitment. This commitment assures the construction lender that the loan will be paid. After builder/developer submits plans and studies for presentation to permanent lenders (banks, S&L's, etc.), the lender will issue a takeout or "forward commitment." Builders are not obligated to "take down" (use) the funds committed.