Mortgage Payoff. In this example, all of the facts described in the Base Case above are the same, except that we assume that prior to the completion of the Formation Transactions, the $25 mortgage on RIF I Industrial Center reaches maturity and is paid off, such that at the time that the RIF I Industrial Center is acquired by the Operating Partnership, it is not subject to any mortgage debt. This results in the following variation of the variable “AA” in the formula as applied to the RIF I Industrial Center: Property Asset Adjustment (“AA”) (i.e., Base Balance - Actual Balance) RIF I Industrial Center 25 = 25 - 0 RIF II Industrial Center 0 = 25 - 25 RIF V Industrial Center 0 = 25 - 25 Total Portfolio Adjustment (“TPA”) 25 In effect, RIF I has repaid debt using $25 that otherwise would have been available for distribution to RIF I investors as part of the pre-Closing working capital distribution. Because the aggregate outstanding mortgage debt that will be assumed by the Operating Partnership at the Closing has decreased by $25 (without using funds from the Offering), we assume that the Total Formation Transaction Value would increase by the same amount, from $500 to $525. Because the burden of creating this increase in TFTV has been borne solely by investors in RIF I (who otherwise would have received an additional $25 in the pre-Closing working capital distributions), the Equity Value formula works to allocate the increase in TFTV solely to the RIF I Industrial Center by virtue of the $25 Asset Adjustment calculated above, as set forth below: Property Equity Value = EP x [TFTV - TPA] + AA RIF I Industrial Center 125 = 20% x [525 - 25] + 25 RIF II Industrial Center 100 = 20% x [525 - 25] + 0 RIF III Industrial Center 100 = 20% x [525 - 25] + 0 RIF IV Industrial Center 100 = 20% x [525 - 25] + 0 RIF V Industrial Center 100 = 20% x [525 - 25] + 0 Total Equity Value 525
Mortgage Payoff. While it is ultimately the obligation of the Seller to provide a written payoff of mortgage(s) at or prior to closing it is customary for the Closing attorney to obtain authorization from the Seller to request a payoff. Also, a Xxxxxx’s attorney may obtain on behalf of his/her client. After closing, a payoff is either overnighted or wired from the Attorney’s IOLTA account. Wire is often the preferred method (e.g. less days’ interest for the Seller is more acceptable to the receiving entity versus an Attorney’s IOLTA chk. Tip: “It is helpful to let your Seller know that he/she will want to be in contact with the closing attorney to determine/confirm if in fact the closing attorney has/is ordering the payoff for closing. Some Lenders have up to a five “business” day turn-around”. Xxxxxx Xxxxxxxxx, Xx. Esq. – Liberty Law & Title, LLC
Mortgage Payoff. Seller shall deliver to Purchaser’s attorney any information necessary for Purchaser’s attorney to obtain a payoff letter from any mortgagee of record. Seller understands and agrees that the closing proceeds will be applied to terminate any mortgage or record prior to any disbursement being made to Seller.
Mortgage Payoff. At the Closing, all mortgages on the Company's Real Property shall be paid off, satisfied and discharged by the Company with a portion of the Purchase Price. The Company has no capitalized lease obligations, and the indebtedness secured by such mortgage is the only indebtedness for borrowed money of the Company.
Mortgage Payoff. Prior to the Closing Date, the Company shall use reasonable best efforts obtain payoff documentation with respect to the Company Debt under that certain Mortgage, dated August 30, 2019, between Valued Relationships, Inc. and LCNB National Bank, with respect to 0000 Xxxxxxxx Xxxxxx Xxxxx, Xxxxxxxx, Xxxx 00000 (the “Mortgage”), including requesting that LCNB National Bank prepare or approve appropriate lien release documentation for filing upon receipt of the applicable payoff amount.
