Property Substitutions. In the event the Property stated on the Agreement becomes unavailable, Owner/Agents’ obligations are limited to notification to Tenant, a full refund of all monies received for unavailable Property, and a good faith effort by Agent to locate a reasonably comparable replacement. Agent reserves the right, and will make every effort to substitute a comparable property however; if reasonable or desirable property is not available or acceptable to Tenant, then Agent will refund all monies to Tenant. If Tenant desires a specific property, but property is more expensive, Tenant agrees to pay the difference. Tenant waives all claims against Owner and Agent for property substitutions.
Property Substitutions. Subject to the terms and conditions set forth in this Section 2.14, Borrower may, from time to time, replace an Individual Property with a Qualified Substitute Property (a “Property Substitution”), provided, in the case of each Property Substitution, the following conditions are met:
(a) The aggregate of (i) the Allocated Loan Amount with respect to the Individual Property to be replaced, plus (ii) the Allocated Loan Amounts with respect to all Individual Properties previously or simultaneously replaced by Property Substitutions, shall be less than 50% of the then-current principal balance of the Loan;
(b) no Event of Default shall have occurred and be continuing on such date either before or after the Property Substitution;
(c) Borrower shall have given Lender at least thirty (30) days’ prior written notice of any Property Substitution, identifying the proposed Individual Property to be replaced, the proposed Qualified Substitute Property, and the proposed date of the Property Substitution (which date may be extended by up to thirty (30) days, provided that Borrower gives Lender reasonable prior written notice of Borrower’s requirement to extend the date for such Property Substitution). If such Property Substitution does not occur on such date (as may have been extended), (i) such Borrower’s notice will be deemed rescinded, and (ii) Borrower shall on such date reimburse Lender for all expenses actually incurred by Lender in connection with the proposed Property Substitution;
(d) the then-current market value of any proposed Qualified Substitute Property (as determined by an Appraisal satisfying the Prudent Lender Standard) shall equal or exceed the then-current market value of the Individual Property proposed to be replaced immediately prior to the Property Substitution (as determined by an Appraisal satisfying the Prudent Lender Standard);
(e) the Net Operating Income of any proposed Qualified Substitute Property for the twelve-month period trailing the date of determination shall equal or exceed the Net Operating Income of the Individual Property proposed to be replaced during such period, as would be determined in accordance with the Prudent Lender Standard following notice of the proposed Property Substitution;
(f) after giving effect to the Property Substitution, the Debt Service Coverage Ratio for the aggregate of all Individual Properties for the trailing twelve (12) months shall be no less than the greater of (i) 1.52:1:00, and (ii) the Debt Servi...
Property Substitutions. This Instrument is subject to the Property Substitutions provision set forth in Section 16 of the Note to which reference is hereby made.
Property Substitutions. Borrower shall be permitted to substitute up to 50% of the Properties (by allocated loan amount) securing each Loan provided that, among other things, (1) no event of default exists, (2) the market value and net operating income of each substitute Property are equal to or greater than that of the replaced Property, (3) after the substitution the DSCR on the applicable Loan is equal to or greater than the DSCR at the time of closing and immediately prior to such substitution, (4) Borrower obtains Lender consent not to be unreasonably withheld or delayed prior to a Securitization and a rating agency confirmation letter after Securitization, and (5) Borrower delivers an acceptable REMIC opinion. Mxxxxxx Lxxxx has agreed to Bxxxxxxx’s request to permit the release of the East Tower of the Radisson Fort Worth from the collateral upon satisfaction of the certain conditions to be contained in the Loan documents, including without limitation (i) the successful conversion of the West Tower to a Hilton having an appraised value greater than $28.9 million (or Borrower has posted cash collateral for the difference up to $5 million), (ii) the achievement by the Loan secured by such Hilton of a DSCR equal to at least the greater of (a) the DSCR of such Loan immediately prior to such conversion and (b)1.40x, and (iii) if such Loan has been Securitized, a rating agency confirmation letter. Borrower will be permitted to undertake such conversion provided that Borrower presents satisfactory evidence that the conversion process will not adversely affect the annual DSCR of the Loan secured by such Property or posts a cash reserve or letter of credit satisfactory to the Lender.
Property Substitutions
