Common use of Prepayment Fee Clause in Contracts

Prepayment Fee. With respect to each Mortgage Loan that has a prepayment fee feature, each such prepayment fee is enforceable and will be enforced by the Company, and each prepayment penalty in permitted pursuant to federal, state and local law, including the Parity Act of 1982. No Mortgage Loan will impose a prepayment penalty for a term in excess of five years from the date such Mortgage Loan was originated. Except as otherwise set forth in the related Mortgage Loan Schedule, with respect to each Mortgage Loan that contains a prepayment fee, such prepayment fee is at least equal to the lesser of (A) the maximum amount permitted under applicable law and (B) six months interest at the related Mortgage Interest Rate on the amount prepaid in excess of 20% of the original principal balance of such Mortgage Loan. With respect to any Mortgage Loan that contains a provision permitting imposition of a premium upon a prepayment prior to maturity: (i) prior to the loan’s origination, the Mortgagor agreed to such premium in exchange for a monetary benefit, including but not limited to a rate or fee reduction, (ii) prior to the loan’s origination, the Mortgagor was offered the option of obtaining a mortgage loan that did not require payment of such a premium, (iii) the prepayment premium is disclosed to the borrower in the loan documents pursuant to applicable state and federal law, (iv) except as set forth on the related Mortgage Loan Schedule, for Mortgage Loans originated on or after September 1, 2004, the duration of the prepayment period shall not exceed three (3) years from the date of the note, unless the Mortgage Loan was modified to reduce the prepayment period to no more than three years from the date of the Mortgage Note and the Mortgagor was notified in writing of such reduction in prepayment period, and (v) notwithstanding any state or federal law to the contrary, prior to the Transfer Date, the Company or any servicer of the Mortgage Loan shall not have imposed such prepayment premium in any instance when the mortgage debt is accelerated as the result of the Mortgagor’s default in making the loan payments;

Appears in 12 contracts

Samples: Servicing Agreement (Lehman Mortgage Trust 2007-3), Servicing Agreement (LXS 2007-3), Servicing Agreement (Lehman Mortgage Trust 2007-4)

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Prepayment Fee. With For the benefit of each Lender, in the event that the Delayed Draw Term Loan Commitments are terminated or Borrowers prepay all or a part of the Delayed Draw Term Loans (in each case, whether voluntarily by Borrowers, upon Default or otherwise, other than pursuant to a mandatory prepayment pursuant to Section 2.5(c)), an amount (the “Prepayment Fee”) equal to the sum of (x) the amount of the Delayed Draw Term Loan Commitments being terminated plus (y) the principal amount of the Delayed Draw Term Loans being prepaid prior to such termination, multiplied by: (i) 3.00% if such event occurs on or after the Closing Date and on or before the first anniversary of the Closing Date, payable on the date of such termination or prepayment; or (ii) 0% if such event occurs after the first anniversary of the Closing Date ;provided, however, that Borrowers shall not be required to pay (x) such applicable Prepayment Fee if the Delayed Draw Term Loans are prepaid in full (and the Delayed Draw Term Loan Commitment terminated) with the proceeds of a construction and project financing for the Projects which GE Capital is a mandated lead arranger and book running manager of such financing, (y) such applicable Prepayment Fee with respect to each Mortgage Delayed Draw Term Loan that has Commitments or Delayed Draw Term Loans relating to a prepayment Borrower and such Borrower’s Project (based on the Line Amount for such Borrower) if the Credit Parties have paid in full the applicable breakup fee feature, each to GE Capital for such prepayment fee is enforceable Project in accordance with the Fee Letter and will be enforced (z) such applicable Prepayment Fee if the Borrowers have paid in full all of the Obligations prior to the first anniversary of the Closing Date pursuant to a declaration by the CompanyAdministrative Agent under Section 11.2(a) that such Obligations are then due and payable as a result of the occurrence and continuance of an Event of Default under Section 11.1(j) with respect to any Borrower; provided, further that in the event that the Borrowers elect not to complete the Projects and each sell the Equipment and prepay in full the Delayed Draw Term Loans and terminate in full the Delayed Draw Term Loan Commitments on or before the first anniversary of the Closing Date from the proceeds of such sale, then the Prepayment Fee payable shall be equal to the sum of (i) the daily amount of interest which accrues and is payable on the outstanding Delayed Draw Term Loans being prepaid for the date of prepayment penalty in permitted pursuant to federal, state and local law, including multiplied by the Parity Act number of 1982. No Mortgage Loan will impose a prepayment penalty for a term in excess of five years days remaining from the date such Mortgage Loan was originated. Except as otherwise set forth in of prepayment to and including the related Mortgage Loan Schedulefirst anniversary of the Closing Date, with respect to each Mortgage Loan that contains a prepayment fee, such prepayment fee is at least equal to the lesser of plus (Aii) the maximum daily amount permitted under applicable law and (B) six months interest at the related Mortgage Interest Rate on the amount prepaid in excess of 20% of the original principal balance Unused Delayed Draw Term Loan Commitment Fee that accrues and is payable for the date of such Mortgage Loanprepayment multiplied by the number of days remaining from the date of prepayment to and including the first anniversary of the Closing Date. With respect to any Mortgage Loan Each Borrower acknowledges and agrees that contains a provision permitting imposition of a premium upon a prepayment prior to maturity: (i) prior it would be difficult or impractical to calculate the loan’s origination, Lenders’ actual damages from an early termination of the Mortgagor agreed to such premium in exchange Delayed Draw Term Loan Commitments or the prepayment of the Delayed Draw Term Loans for a monetary benefit, including but not limited to a rate or fee reductionany reason, (ii) prior the Prepayment Fee provided above is intended to the loan’s origination, the Mortgagor was offered the option of obtaining a mortgage loan that did not require payment be fair and reasonable approximation of such a premium, damages and (iii) the prepayment premium Prepayment Fee is disclosed not intended to the borrower in the loan documents pursuant to applicable state and federal law, (iv) except as set forth on the related Mortgage Loan Schedule, for Mortgage Loans originated on or after September 1, 2004, the duration of the prepayment period shall not exceed three (3) years from the date of the note, unless the Mortgage Loan was modified to reduce the prepayment period to no more than three years from the date of the Mortgage Note and the Mortgagor was notified in writing of such reduction in prepayment period, and (v) notwithstanding any state or federal law to the contrary, prior to the Transfer Date, the Company or any servicer of the Mortgage Loan shall not have imposed such prepayment premium in any instance when the mortgage debt is accelerated as the result of the Mortgagor’s default in making the loan payments;be a penalty.

Appears in 1 contract

Samples: Loan and Security Agreement (MMC Energy, Inc.)

Prepayment Fee. With respect to each Mortgage Loan Borrower agrees that has a prepayment fee feature, each such prepayment fee is enforceable all loan fees and will be enforced by the Company, and each prepayment penalty in permitted pursuant to federal, state and local law, including the Parity Act other prepaid finance charges are earned fully as of 1982. No Mortgage Loan will impose a prepayment penalty for a term in excess of five years from the date such Mortgage Loan was originated. Except as otherwise set forth in the related Mortgage Loan Schedule, with respect to each Mortgage Loan that contains a prepayment fee, such prepayment fee is at least equal to the lesser of (A) the maximum amount permitted under applicable law and (B) six months interest at the related Mortgage Interest Rate on the amount prepaid in excess of 20% of the original principal balance of such Mortgage Loan. With respect to any Mortgage Loan that contains a provision permitting imposition of a premium upon a prepayment prior to maturity: (i) prior to the loan’s origination, the Mortgagor agreed to such premium in exchange for a monetary benefit, including but not limited to a rate or fee reduction, (ii) prior to the loan’s origination, the Mortgagor was offered the option of obtaining a mortgage loan that did not require payment of such a premium, (iii) the prepayment premium is disclosed to the borrower in the loan documents pursuant to applicable state and federal law, (iv) except as set forth on the related Mortgage Loan Schedule, for Mortgage Loans originated on or after September 1, 2004, the duration of the prepayment period shall not exceed three (3) years from the date of the noteLoan and will not be subject to refund upon early payment (whether voluntary or as a result of default), unless except as otherwise required by law. Borrower has the Mortgage right to prepay the Loan was modified in whole or in part at any time; provided, however, that during the first Six (6) months of the Loan term, Borrower must pay to reduce Lender at the time the prepayment period is made and as a condition of Borrower’s right to no more than three years from prepay, a prepayment fee equal to One percent (1.00%) of the amount of principal prepaid. ANY PREPAYMENT FEE SHALL APPLY NOT ONLY IN THE CASE OF VOLUNTARY PREPAYMENT, BUT ALSO IF THE LOAN BECOMES DUE AND PAYABLE IN FULL BY REASON OF ACCELERATION UPON THE OCCURRENCE OF AN EVENT OF DEFAULT (AS HEREIN DEFINED) OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, UPON OCCURRENCE OF A TRANSFER OF THE PROPERTY, WHETHER VOLUNTARILY OR INVOLUNTARILY OR OTHERWISE. In such case, the Prepayment Fee shall be calculated as of the date of the Mortgage Note and the Mortgagor was notified in writing an Event of such reduction in prepayment periodDefault, or other event or condition triggering acceleration, and (v) notwithstanding any state until paid in full shall accrue interest at the Default Rate. Whether prepayment is voluntary or federal law to involuntary, in no event shall the contrary, prior to the Transfer Date, the Company or any servicer amount of the Mortgage Loan Prepayment Fee, or the method of calculating the Prepayment Fee, result in a reduction of the outstanding principal balance, accrued and unpaid interest, or other amounts due as of the date of prepayment. Absent material and manifest error, Lender’s determination of the Prepayment Fee shall be binding and conclusive on Borrower and anyone else having an interest in the determination. Any such prepayment shall not have imposed such prepayment premium result in a reamortization, deferral, postponement, suspension, or waiver of any instance when and all other payments due under the mortgage debt is accelerated as the result of the Mortgagor’s default in making the loan payments;Loan.

Appears in 1 contract

Samples: Business Loan Agreement (ComSovereign Holding Corp.)

Prepayment Fee. With respect to each Mortgage Loan In connection with any prepayment of the Loans, the Borrower shall pay Agent for the account of the Banks any sums that has may be due under ss.4.8 and a prepayment fee featurein an amount equal to the product of the percentage set forth on Schedule 3.5 corresponding to the date on which such prepayment occurs multiplied by the principal amount of the Loans prepaid. No prepayment fees shall be due on prepayments made after February 20, each 2004. Under any and all circumstances where all or any portion of the Notes is paid prior to the date set forth above, whether such prepayment is voluntary or involuntary, even if such prepayment results from a payment pursuant to ss.3.2, or Agent's or the Banks' exercise of their rights upon the occurrence of an Event of Default and acceleration of the Maturity Date of the Notes, Borrower shall to the extent permitted by applicable law pay to the Banks the prepayment fee calculated as provided above, which prepayment fee shall be in addition to any other sums due hereunder or under any of the other Loan Documents. No tender of a prepayment of the Notes with respect to which a prepayment fee is enforceable and will due shall be enforced effective unless such prepayment is accompanied by the Companyprepayment fee. Borrower acknowledges that the prepayment fee is a bargained for consideration and not a penalty, and each prepayment penalty Borrower recognizes that the Banks would incur substantial additional costs and expenses in permitted pursuant to federal, state and local law, including the Parity Act event of 1982. No Mortgage Loan will impose a prepayment penalty of the Loans and that the prepayment fee compensates the Banks for such costs and expenses (including, without limitation, the loss of the Banks' investment opportunity for the period following the prepayment). Borrower agrees that the Banks shall not, as a term in excess of five years from condition to receiving the date such Mortgage Loan was originated. Except as otherwise set forth in the related Mortgage Loan Schedule, with respect to each Mortgage Loan that contains a prepayment fee, such prepayment fee is at least equal be obligated to the lesser of (A) the maximum amount permitted under applicable law and (B) six months interest at the related Mortgage Interest Rate on actually reinvest the amount prepaid in excess of 20% of the original principal balance of such Mortgage Loan. With respect to any Mortgage Loan that contains a provision permitting imposition of a premium upon a prepayment prior to maturity: (i) prior to the loan’s origination, the Mortgagor agreed to such premium in exchange for a monetary benefit, including but not limited to a rate treasury obligation or fee reduction, (ii) prior to the loan’s origination, the Mortgagor was offered the option of obtaining a mortgage loan that did not require payment of such a premium, (iii) the prepayment premium is disclosed to the borrower in the loan documents pursuant to applicable state and federal law, (iv) except as set forth on the related Mortgage Loan Schedule, for Mortgage Loans originated on or after September 1, 2004, the duration of the prepayment period shall not exceed three (3) years from the date of the note, unless the Mortgage Loan was modified to reduce the prepayment period to no more than three years from the date of the Mortgage Note and the Mortgagor was notified in writing of such reduction in prepayment period, and (v) notwithstanding any state or federal law to the contrary, prior to the Transfer Date, the Company or any servicer of the Mortgage Loan shall not have imposed such prepayment premium in any instance when the mortgage debt is accelerated as the result of the Mortgagor’s default in making the loan payments;other manner whatsoever.

Appears in 1 contract

Samples: Term Loan Agreement (Ps Business Parks Inc/Ca)

Prepayment Fee. With respect (i) Upon not less than thirty (30) days’ prior written notice to Agent (which shall promptly notify each Mortgage Loan that has Lender of the details of each such notice), Borrowers may at any time terminate and prepay the entire amount of, or any portion of, the Loan. Any such prepayment shall be accompanied by (x) all accrued and unpaid interest on the outstanding principal amount hereunder, plus (y) if made at any time during the period commencing on the Closing Date and ending on September 30, 2012, a prepayment fee feature, (the “Prepayment Fee”) equal to the aggregate amount of interest which would have accrued and been owed by Borrowers to Lender on the outstanding Advances being prepaid as if each such prepayment fee is enforceable and will be enforced by the Company, and each prepayment penalty in permitted pursuant to federal, state and local law, including the Parity Act of 1982. No Mortgage Loan will impose a prepayment penalty for a term in excess of five years Advance had been outstanding from the date it had been made until September 30, 2012 based on an assumed interest rate of ten percent (10%) per annum (less the amount of interest paid on such Mortgage Advance as of the date such prepayment is made). Following receipt of any notice of termination and prepayment made at any time on or before September 30, 2012, Lenders may credit amounts otherwise owing hereunder to Borrowers against the foregoing Prepayment Fee, which shall in any event be paid in full by the proposed termination date set forth in any such termination notice following Agent’s receipt of any termination notice. Any prepayment of the Loan was originatedrequired to be made prior to September 30, 2012 pursuant to Section 7.2 of this Agreement, for purposes of this Section 2.5(A) only, shall be treated as a voluntary prepayment, and Lender shall be entitled to receive payment at such time of a Prepayment Fee, calculated as hereinabove provided. Borrowers acknowledge and agree that the Prepayment Fee is an estimate of Lender’s loan damages in the event of a prepayment of Advances and is not a penalty. Except to the extent expressly provided in this Section 2.5(A) or in any other Section of this Agreement, no prepayment of the Loan shall be permitted. (ii) Any payment of the Loan, in whole or in part, made after September 30, 2012 may be made without penalty or premium, provided that Borrowers shall give Agent (which shall promptly notify each Lender of such notice) not less than two (2) weeks’ prior written notice of any such prepayment. Except as otherwise expressly set forth in the related Mortgage Loan Scheduleabove, with respect to each Mortgage Loan that contains a prepayment fee, such prepayment fee is at least equal to the lesser of (A) the maximum amount permitted under applicable law and (B) six months interest at the related Mortgage Interest Rate on the amount prepaid in excess of 20% no portion of the original principal balance of such Mortgage Loan. With respect to any Mortgage Loan that contains a provision permitting imposition of a premium upon a prepayment prior to maturity: (i) may be prepaid prior to the loan’s origination, the Mortgagor agreed to such premium in exchange for a monetary benefit, including but not limited to a rate or fee reduction, (ii) prior to the loan’s origination, the Mortgagor was offered the option of obtaining a mortgage loan that did not require payment of such a premium, (iii) the prepayment premium is disclosed to the borrower in the loan documents pursuant to applicable state and federal law, (iv) except as set forth on the related Mortgage Loan Schedule, for Mortgage Loans originated on or after September 1, 2004, the duration of the prepayment period shall not exceed three (3) years from the date of the note, unless the Mortgage Loan was modified to reduce the prepayment period to no more than three years from the date of the Mortgage Note and the Mortgagor was notified in writing of such reduction in prepayment period, and (v) notwithstanding any state or federal law to the contrary, prior to the Transfer Termination Date, the Company or any servicer of the Mortgage Loan shall not have imposed such prepayment premium in any instance when the mortgage debt is accelerated as the result of the Mortgagor’s default in making the loan payments;.

Appears in 1 contract

Samples: Loan and Security Agreement (SecureAlert, Inc.)

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Prepayment Fee. Except as set forth on the related Loan Purchase Detail, none of the Mortgage Loans are subject to a prepayment fee. With respect to each Mortgage Loan that has a prepayment fee feature, each such prepayment fee is enforceable and will be enforced by such Seller for the Companybenefit of the Trust, and each prepayment penalty in fee is permitted pursuant to federal, state and local law, including the Parity Act of 1982. No Mortgage Loan will impose a prepayment penalty for a term in excess of five years from the date such Mortgage Loan was originated. Except as otherwise set forth in the related Mortgage Loan Schedule, law and is only payable (i) with respect to each a Mortgage Loan that contains originated prior to October 1, 2002, during the first 5 years of the term of the Mortgage Loan, and (ii) with respect to a prepayment feeMortgage Loan originated on or after October 1, 2002, during the first 3 years of the term of the Mortgage Loan. Each such prepayment fee is at least in an amount equal to the lesser of (A) the maximum amount permitted under applicable law and (B) six months interest at the related Mortgage Interest Rate on the amount prepaid in excess of 20% of the original principal balance of such Mortgage Loanlaw. With respect to any Mortgage Loan that contains a provision permitting imposition of a premium prepayment fee upon a prepayment prior to maturity: (i) prior to the loan’s origination, the Mortgagor agreed to such premium prepayment fee in exchange for a monetary benefit, including but not limited to a rate or fee reduction, (ii) prior to the loan’s origination, the Mortgagor was offered the option of obtaining a mortgage loan Mortgage Loan that did not require payment of such a premiumprepayment fee, (iii) the prepayment premium fee is disclosed to the borrower Mortgagor in the loan documents pursuant to applicable state and federal law, and (iv) except as set forth on the related Mortgage Loan Schedule, for Mortgage Loans originated on or after September 1, 2004, the duration of the prepayment period shall not exceed three (3) years from the date of the note, unless the Mortgage Loan was modified to reduce the prepayment period to no more than three years from the date of the Mortgage Note and the Mortgagor was notified in writing of such reduction in prepayment period, and (v) notwithstanding any state or federal law to the contrary, prior to the Transfer Date, the Company or any servicer of the Mortgage Loan such Seller shall not have imposed impose such prepayment premium fee in any instance when the mortgage debt is accelerated as the result of the Mortgagor’s default in making the loan payments;

Appears in 1 contract

Samples: Loan Sale Agreement (MortgageIT Holdings, Inc.)

Prepayment Fee. With respect (A) If for any reason this Agreement is terminated prior to each Mortgage the Scheduled Maturity Date or, except as otherwise provided herein, Borrower prepays a portion of the Term Loan Balance, in view of the impracticality and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of Lenders' lost profits as a result thereof, Borrower agrees to pay to Agent for the ratable benefit of Lenders, upon the effective date of such termination or such prepayment, a fee in the amount set forth below (the "Prepayment Fee") if such termination or prepayment is effective in the period indicated: Amount Period ------ ------ (i) 5.0% of the Term Loan First 12 month period Balance following the Original Closing Date (ii) 4.0% of the Term Loan Second 12 month period Balance following the Original Closing Date (iii) 3.0% of the Term Loan Third 12 month period Balance following the Original Closing Date (iv) 2.0% of the Term Loan Fourth 12 month period Balance following the Original Closing Date (v) 1.0% of the Term Loan Fifth and Sixth 12 month Balance periods following the Original Closing Date Such Prepayment Fee shall be presumed to be the amount of damages sustained by Lenders as a result of such early termination or prepayment and Borrower agrees that has it is reasonable under the circumstances currently existing. The Prepayment Fee shall be included in the Obligations. (B) Notwithstanding the foregoing subsection 1.7(A): (i) in the event that Borrower completes an initial public offering of its stock and registers such shares on a recognized securities exchange or the NASDAQ system and prepays in full all of the Obligations upon completion of such public offering, then in such event, Borrower shall only be required to pay a prepayment fee feature, each such prepayment fee is enforceable and will be enforced by the Company, and each prepayment penalty in permitted pursuant to federal, state and local law, including the Parity Act of 1982. No Mortgage Loan will impose a prepayment penalty for a term in excess of five years from the date such Mortgage Loan was originated. Except as otherwise set forth in the related Mortgage Loan Schedule, with respect to each Mortgage Loan that contains a prepayment fee, such prepayment fee is at least an amount equal to the lesser of (A) the maximum amount permitted under applicable law and (B) six months interest at the related Mortgage Interest Rate on the amount prepaid in excess of 20$250,000 or 1% of the original principal balance of such Mortgage Loan. With Term Loan Balance; or (ii) the Requisite Lenders decline to make an Additional Term Loan with respect to any Mortgage an Acquisition which complies with all of the requirements set forth under subsection 3.16 and would be approved by the Requisite Lenders except that such Additional Term Loan that contains a provision permitting imposition would result in all Loans exceeding the Maximum Loan Commitment and the Requisite Lenders do not elect to increase the Maximum Loan Commitment or the Agent, with the consent of a premium upon a prepayment prior the Required Lenders, is unable to maturitylocate other suitable Lenders to purchase an interest in the Loans equal to such excess, Borrower shall not be required to pay the Prepayment Fee. (C) In addition to the exceptions set forth in subsection 1.7(B), if: (i) prior to the loan’s origination, the Mortgagor agreed to such premium in exchange for a monetary benefit, including but not limited to a rate or fee reduction, Term Loan Balance is at least $105 million; (ii) prior Borrower has requested an increase in the Maximum Loan Commitment because in its good faith judgment Borrower reasonably believes that the Maximum Loan Commitment is insufficient to finance its prospective Acquisitions for the loan’s origination, following six months and the Mortgagor was offered the option of obtaining a mortgage loan that did Lenders do not require payment of elect to increase such a premium, Commitment; (iii) Borrower refinances the prepayment premium is disclosed Obligations and the obligations under such refinancing exceed $120 million within six months of the termination of this Agreement and such amount was utilized by Borrower solely to retire the Obligations and to finance Acquisitions, then, in such event, Borrower shall not be required to pay the Prepayment Fee pursuant to subsection 1.7 (A); provided, however, Borrower deposits into escrow, with an escrow agent selected by Agent pursuant to the borrower terms and conditions of an escrow agreement in the loan documents pursuant form and substance satisfactory to applicable state and federal law, (iv) except as set forth on the related Mortgage Loan Schedule, for Mortgage Loans originated on or after September 1, 2004Agent, the duration of the prepayment period shall not exceed three (3Prepayment Fee required to be paid under subsection 1.7(A) years from the date of the note, unless the Mortgage Loan was modified to reduce the prepayment period to no more than three years from the date of the Mortgage Note and the Mortgagor was notified in writing of such reduction in prepayment period, and (v) notwithstanding any state or federal law to the contrary, prior to the Transfer Date, the Company or any servicer of the Mortgage Loan shall not have imposed such prepayment premium in any instance when the mortgage debt is accelerated as the result of the Mortgagor’s default in making the loan payments;assure compliance with this provision.

Appears in 1 contract

Samples: Credit Agreement (Global Imaging Systems Inc)

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