Fair Value Option; Sale of Administered REO Properties Clause Samples
The 'Fair Value Option; Sale of Administered REO Properties' clause allows a party, typically a servicer or asset manager, to elect to measure and report real estate owned (REO) properties at their fair market value rather than historical cost. In practice, this means that when REO properties are acquired and subsequently sold, their value on the books reflects current market conditions, and any gains or losses from changes in value are recognized in financial statements. This approach provides more accurate and timely financial information, helping stakeholders assess the true economic impact of holding and selling REO properties, and addresses the problem of outdated or misleading asset valuations.
Fair Value Option; Sale of Administered REO Properties. Sale of the Non-Trust- Serviced Pooled Mortgage Loan.
(a) The applicable Master Servicer, the Special Servicer or the Trustee may sell or purchase, or permit the sale or purchase of, a Pooled Mortgage Loan or REO Property (or, in the case of any REO Property related to a Mortgage Loan Group, such REO Property and/or the beneficial interest of the Trust Fund in such REO Property) only (i) on the terms and subject to the conditions set forth in this Section 3.18, (ii) as otherwise expressly provided in or contemplated by Sections 2.03 and 9.01 of this Agreement, (iii) in the case of a Pooled Mortgage Loan (or REO Property related thereto) with a related mezzanine loan, in connection with a Mortgage Loan default if and as set forth in the related intercreditor agreement, (iv) in the case of a Pooled Mortgage Loan (or REO Property related thereto) included in a Serviced Mortgage Loan Group, in connection with a Mortgage Loan default if and as set forth in the related Mortgage Loan Group Intercreditor Agreement, or (v) in the case of a Non-Trust-Serviced Pooled Mortgage Loan (or REO Property related thereto), pursuant to a purchase option under the related Mortgage Loan Group Intercreditor Agreement and/or the related Non-Trust Servicing Agreement.
(b) If any Pooled Mortgage Loan becomes a Specially Designated Defaulted Pooled Mortgage Loan, then the Special Servicer shall so notify the Certificate Administrator, the Trustee, the applicable Master Servicer, the Controlling Class Representative and the Holder(s) of the Controlling Class (and, if the affected Pooled Mortgage Loan is included in a Serviced Mortgage Loan Group that includes one or more Serviced Non-Pooled Subordinate Loans, the related Non-Pooled Noteholder(s)), in writing. In addition, the Special Servicer shall determine (in accordance with the Servicing Standard, taking into account the considerations contemplated by the following paragraph, but without regard to the Purchase Option provided for in Section 3.18(c) below), and report to the Trustee, the applicable Master Servicer, the Controlling Class Representative and the Holder(s) of the Controlling Class, the Fair Value of such Pooled Mortgage Loan. The Special Servicer's determination of the Fair Value of any Specially Designated Defaulted Pooled Mortgage Loan shall be made as soon as reasonably practicable, but in no event later than 30 days after the Special Servicer receives the requisite Appraisal or any other third-party reports that i...
Fair Value Option; Sale of Administered REO Properties. Sale of the Non-Trust- Serviced Pooled Mortgage Loan.. 167 SECTION 3.19. Additional Obligations of Master Servicers and Special Servicer.............................................. 172 SECTION 3.20. Modifications, Waivers, Amendments and Consents..........