Common use of Loans by Guarantor or Its Affiliates Clause in Contracts

Loans by Guarantor or Its Affiliates. The Guarantor or an affiliate of the Guarantor may make a subordinate loan or loans to an Owner and enforce the terms of such loans if the such loan is made in accordance with the terms of this Section 3.25. Fxxxxxx Mac acknowledges that the making of such loan(s) by the Guarantor and their enforcement is not a breach of a covenant or a representation under this Agreement provided that: (a) the Guarantor shall provide notice of such subordinate loan to Fxxxxxx Mac and the Servicer no later than 30 days prior to the funding of such loan (each notice shall include a representation as to the purpose of the subordinate loan), (b) such subordinate loan shall be made only to fund shortfalls in operating expenses or to pay debt service on the related Bonds, (c) the enforcement of remedies with respect to such subordinate loan(s) shall be done solely with Fxxxxxx Mac’s prior consent, and (d) such subordinate loan: (i) is not secured by the applicable Mortgaged Property or an interest in the applicable Owner, (ii) is payable solely from 75% of surplus cash with respect to the related Mortgaged Property (as determined in accordance with Fxxxxxx Mac’s program standards), (iii) has a maturity date which extends beyond the maturity date on the related Bonds, and (iv) otherwise conforms to Fxxxxxx Mac’s then applicable program, policies and underwriting criteria for soft subordinate debt.

Loans by Guarantor or Its Affiliates. The Guarantor or an affiliate of the Guarantor may make a subordinate loan or loans to an Owner and enforce the terms of such loans if the such loan is made in accordance with the terms of this Section 3.253.24. Fxxxxxx Xxxxxxx Mac acknowledges that the making of such loan(s) by the Guarantor and their enforcement is not a breach of a covenant or a representation under this Agreement provided that: (a) the Guarantor shall provide notice of such subordinate loan to Fxxxxxx Xxxxxxx Mac and the Servicer no later than 30 days prior to the funding of such loan (each notice shall include a representation as to the purpose of the subordinate loan), (b) such subordinate loan shall be made only to fund shortfalls in operating expenses or to pay debt service on the related Bonds, (c) the enforcement of remedies with respect to such subordinate loan(s) shall be done solely with Fxxxxxx Xxxxxxx Mac’s prior consent, and (d) such subordinate loan: (i) is not secured by the applicable Mortgaged Property or an interest in the applicable Owner, (ii) is payable solely from 75% of surplus cash with respect to the related Mortgaged Property (as determined in accordance with Fxxxxxx Xxxxxxx Mac’s program standards), (iii) has a maturity date which extends beyond the maturity date on the related Bonds, and (iv) otherwise conforms to Fxxxxxx Xxxxxxx Mac’s then applicable program, policies and underwriting criteria for soft subordinate debt.

Loans by Guarantor or Its Affiliates. The Guarantor or an affiliate of the Guarantor may make a subordinate loan or loans to an Owner and enforce the terms of such loans if the such loan is made in accordance with the terms of this Section 3.253.24. Fxxxxxx Xxxxxxx Mac acknowledges that the making of such loan(s) by the Guarantor and their enforcement is not a breach of a covenant or a representation under this Agreement provided that: (a) the Guarantor shall provide notice of such subordinate loan to Fxxxxxx Xxxxxxx Mac and the Servicer no later than 30 days prior to the funding of such loan (each notice shall include a representation as to the purpose of the subordinate loan), (b) such subordinate loan shall be made only to fund shortfalls in operating expenses or to pay debt service on the related Bonds, (c) the enforcement of remedies with respect to such subordinate loan(s) shall be done solely with Fxxxxxx Xxxxxxx Mac’s prior consent, and (d) such subordinate loan: (i) is not secured by the applicable Mortgaged Property or an interest in the applicable Owner, (ii) is payable solely from 75% of surplus cash with respect to the related Mortgaged Property (as determined in accordance with Fxxxxxx Xxxxxxx Mac’s program standards), (iii) has a maturity date which extends beyond the maturity date on the related Bonds, and (iv) otherwise conforms to Fxxxxxx Xxxxxxx Mac’s then applicable program, policies and underwriting criteria for soft subordinate debt.