Mortgage Banking Subsidiaries Note Clause Samples
The "Mortgage Banking Subsidiaries Note" clause defines the treatment or recognition of promissory notes issued by subsidiaries engaged in mortgage banking activities. Typically, this clause clarifies how such notes are handled within the broader context of a financial agreement, such as whether they are included in consolidated financial statements or subject to specific covenants. For example, it may specify reporting requirements or limitations on the use of these notes as collateral. The core function of this clause is to ensure transparency and proper accounting for financial instruments issued by mortgage banking subsidiaries, thereby reducing ambiguity and potential risk for the parties involved.
Mortgage Banking Subsidiaries Note. (a) Each Lender authorizes the Administrative Agent to enter into each of the Loan Documents to which it is a party and to take all action contemplated by such Loan Documents. Each Lender agrees that no Lender, other than the Administrative Agent acting on behalf of all Lenders, shall have the right individually to seek to realize upon the security granted by any Loan Document, it being understood and agreed that such rights and remedies may be exercised solely by the Administrative Agent for the benefit of the Lenders, upon the terms of the Loan Documents.
(b) In the event that the Mortgage Banking Subsidiaries Note is pledged by any Person as security for the Obligations, the Administrative Agent is hereby authorized to execute and deliver on behalf of the Lenders any Loan Documents necessary or appropriate to grant and perfect a Lien on such Mortgage Banking Subsidiaries Note in favor of the Administrative Agent on behalf of the Lenders.
(c) The Lenders hereby authorize the Administrative Agent, at its option and in its discretion, to release any Lien granted to or held by the Administrative Agent upon the Mortgage Banking Subsidiaries Note (i) upon termination of the Commitments and payment and satisfaction of all of the Obligations or the transactions contemplated hereby; (ii) as permitted by, but only in accordance with, the terms of the applicable Loan Document; or (iii) if approved, authorized or ratified in writing by the Required Lenders, unless such release is required to be approved by all of the Lenders hereunder. Upon request by the Administrative Agent at any time, the Lenders will confirm in writing the Administrative Agent’s authority to release any such Lien pursuant to this Section 10.13(c).
Mortgage Banking Subsidiaries Note