Par Purchase Right Sample Clauses
A Par Purchase Right clause grants a party the option to purchase a security or asset at its face value, rather than at its current market price. Typically, this right is exercised in situations such as a default, change of control, or other triggering events, allowing the holder to buy back bonds or other instruments at their original principal amount. The core function of this clause is to protect the holder from market fluctuations or adverse events by ensuring they can recover their investment at par, thereby reducing financial risk and providing certainty in the event of significant changes.
Par Purchase Right. (i) In the event (A) a monetary event of default has occurred and is continuing under a Componentized Mortgage Loan or (B) a non-monetary event of default which causes a Componentized Mortgage Loan to become a Specially Serviced Mortgage Loan has occurred and is continuing (each, a “Purchase Option Trigger”), the Master Servicer shall provide written notice of such event (a “Loan-Specific Purchase Option Notice”) to the Special Servicer and the Certificate Administrator (who shall forward such notice to the Holders of the related Class of Loan-Specific Certificates). Such notice shall include a direction by the Master Servicer to the Certificate Administrator to forward such notice to the Holders of the related Class of Loan-Specific Certificates. Upon receipt of such notice by the Holders of the related Class of Loan-Specific Certificates, all Holders of the related Loan-Specific Certificates shall have the right (but shall be under no obligation) to purchase (the “Loan-Specific Par Purchase Right”), on a pro rata basis, the applicable Componentized Mortgage Loan from the Trust, prior to any other party, by written notice to the Master Servicer, the Special Servicer, the Trustee, the Certificate Administrator and the Senior Trust Advisor (a “Loan-Specific Purchase Notice”). Such option may be exercised at any time after a Purchase Option Trigger and prior to the earliest to occur of (w) the cure of the Purchase Option Trigger by or on behalf of the related borrower (but not a cure by the Holders of the related Class of Loan-Specific Certificates), and (x) the consummation of a foreclosure sale, sale by power of sale or delivery of a deed in lieu of foreclosure with respect to the related Mortgaged Property (except that, if the Special Servicer intends to accept a deed in lieu of foreclosure, it shall notify the Holders of the related Class of Loan-Specific Certificates, who shall have the option, within ten (10) Business Days from the date it receives such notice, to deliver a Loan-Specific Purchase Notice to the Special Servicer, the Master Servicer, the Trustee and the Certificate Administrator) (the “Loan-Specific Purchase Right Cut-off Date”).
(ii) The Holders may exercise such option by the payment of the Loan-Specific Par Purchase Price and the surrender to the Certificate Administrator of all the Loan-Specific Certificates of such Class then outstanding by all Holders of such Class, and, upon the delivery of the Loan-Specific Purchase Notice, the S...