True or False: A construction lender may provide funds without requiring any lease commitments.

In commercial lending, particularly in construction financing, lenders typically assess the risk associated with the project before disbursing funds. This commonly includes a review of lease commitments, especially for income-producing properties. Having lease commitments demonstrates a level of financial security because it shows the lender that there is a stable income stream expected once the property is completed.

When a project has lease commitments, it indicates that tenants are already signed on, which can reassure the lender about the viability of the development and the borrower's ability to repay the loan. If there are no lease commitments, lenders may view the project as riskier since it lacks guaranteed return on investment. Therefore, stating that a construction lender may provide funds without requiring any lease commitments would be misleading in most cases, making the answer correct as "False."