Common use of Interest in Loan Documents Clause in Contracts

Interest in Loan Documents. (a) Subject to Section 2.1(b), Participant shall, without the necessity of any written instrument of assignment or other document, become vested with an undivided equitable ownership interest (equal to its pro rata share) in (i) the Note and other Loan Documents, and (ii) the other rights and claims of Lead Lender with respect to the Loan. The respective interests of Lead Lender and Participant in the Loan Documents and the other rights and claims of Lead Lender under the Loan Documents with respect to the Loan shall be of equal priority with one another, subject to the provisions of Sections 2.1(b) and 3. 1. If Lead Lender intends to acquire an ownership interest in any of the property given as security for the Note, including the Property, due to the foreclosure or other realization of any security interest in or lien granted by any of the Loan Documents, Lead Lender shall, prior to such acquisition, enter into an agreement with Participant stating, inter alia, that Lead Lender holds title solely as nominee of Participant and Lead Lender or, at Participant's sole option, form an entity owned by the Lenders (the "Ownership Entity") which shall acquire title. Participant shall have an undivided interest in such ownership interest equal to its pro rata share, whether title is held by the Ownership Entity or Lead Lender as nominee. (b) All documents executed and delivered in connection with the Loan shall be held by Lead Lender for the benefit of Lead Lender and Participant. Lead Lender is authorized to retain the Note and the other Loan Documents and Additional Loan Documents in Lead Lender's own name (provided, however, that the Participant's interest in the Loan Documents shall be duly noted in Lead Lender's loan files and Lead Lender shall have complied with, and shall continue to comply with the requirements outlined in Section 2.1 (d)) and to deal with parties other than Participant with respect to the servicing and administration of the Loan as though an absolute owner of the Note and the other Loan Documents. Notwithstanding the foregoing, Participant, or any authorized agents or representatives of Participant, shall have the right, at Participant's expense and at any reasonable time during normal business hours, to request and have access to and examine any and all books, records and documents relating to the Loan or relating to any matters covered by this Agreement. In addition, Lead Lender shall deliver promptly to Participant copies of written information which it receives from Borrower in satisfaction of the reporting requirements of Borrower under the loan Documents. Any person, firm or corporation may deal with Lead Lender concerning the Loan in the same manner as if Participant's Share were not outstanding and Lead Lender were the sole owner of the Loan. Lead Lender may perform and of its obligations hereunder by or through its agents, employees or attorneys.