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In contrast, if the new covered longer-term loan would carry a total cost of credit of 90 percent, then the new covered longer-term loan would not result in a substantial reduction in the total cost of credit relative to the outstanding loan and the presumption in § 1041.

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But its also true that deep-pocketed limited partners at private equity funds do have the informal ability to affect investment decisions (including by threatening not to invest in subsequent funds).