DUE ON SALE EXCEPTIONS Clause Samples
The "Due on Sale Exceptions" clause defines specific circumstances under which a lender will not enforce the due-on-sale provision in a loan agreement. Typically, this clause outlines situations—such as transfers to a spouse due to divorce, inheritance by a family member, or transfers into a living trust—where the borrower can transfer ownership of the property without triggering the requirement to immediately repay the remaining loan balance. By clarifying these exceptions, the clause provides flexibility for borrowers facing life events and ensures that certain legitimate transfers do not result in unintended loan acceleration.
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DUE ON SALE EXCEPTIONS. The following transfers and encumbrances shall constitute Permitted Transfers:
DUE ON SALE EXCEPTIONS. The following transfers and encumbrances shall constitute Permitted Transfers: Deed of Trust and Security Agreement Preston Royal Village, Dallas, Texas AEGON Loan No. 10512155 -28-
14.1 Permitted Transfer to an Approved Purchaser The Borrower shall have the right, on one occasion during the term of the Loan, to sell or transfer the Property in a transaction approved by the Lender. The Lender agrees that such a transfer shall be a Permitted Transfer if the following conditions are satisfied:
DUE ON SALE EXCEPTIONS. The following transfers and encumbrances shall constitute Permitted Transfers:
14.1 PUBLICLY TRADED SHARES OF THE REIT The public trading of the shares of the REIT on the New York Stock Exchange.
DUE ON SALE EXCEPTIONS. The offering, sale or other transfer of capital stock or shares of beneficial interests in or of the Carveout Obligors, or any distributions of dividends to public shareholders of the Carveout Obligors shall constitute Permitted Transfers for purposes of Section 13.
(f) Section 6.5 of the Deed of Trust is amended as follows:
(i) Paragraph (iii) is deleted and replaced with the following: “without Lender’s consent, merge into or consolidate with any Person, or dissolve, terminate, liquidate in whole or in part, transfer or otherwise dispose of all or substantially all of its assets or change its legal structure;”
(ii) Paragraph (viii) is amended by deleting the reference to “financial statements”.
(iii) Paragraph (xiii) is deleted and replaced with the following: “fail to file its own tax returns (unless prohibited by Legal Requirements from doing so, or an affiliate of Borrower files a consolidated return);”
(iv) Paragraph (xvi) is deleted and replaced with the following: “fail to allocate shared expenses (including shared office space) and, to the extent required for its operations, to use separate stationery, invoices and checks;”
(g) Section 6.26 is added to Deed of Trust as follows: MANAGEMENT OF THE REAL PROPERTY The Real Property shall be managed at all times by a Qualified Property Manager.
(h) Subsection 26.13 of the Deed of Trust is amended to provide that the notice address of the Seller is as follows: Apartment REIT Residences at Braemar, LLC c/o Triple Net Properties, LLC ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇, Suite 109 Richmond, Virginia 23229 Attn: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ Fax Number: ▇▇▇-▇▇▇-▇▇▇▇ With a copy of any Notice of default or acceleration to: McGuireWoods LLP One ▇▇▇▇▇ Center ▇▇▇ ▇. ▇▇▇▇ Street Richmond, Virginia 23219 Attn: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Esq. Fax Number: ▇▇▇-▇▇▇-▇▇▇▇
DUE ON SALE EXCEPTIONS