Common use of Release of Guarantee; Substitution Clause in Contracts

Release of Guarantee; Substitution. In the event that (a) Guarantor disposes of all of his, her or its OP Units [or otherwise desires to be released from this Guarantee], at a time when there is not a default with respect to any payment due under the Note and the ratio of the outstanding balance of the Guaranteed Obligations to the appraised value of the Properties is not greater than 80% (the “Ratio Test”) or (b) a Guarantor dies, then, upon request by such Guarantor (or his or her estate), such Guarantor (or estate) shall be released from all liability hereunder (and his, her or its Guaranteed Obligation shall be reduced to zero). Notwithstanding the foregoing, the occurrence of an event described in clause (a) or (b) above shall not release a Guarantor (or its estate) from any payment obligation it incurred prior to the occurrence of such event. Guarantor (or its estate) may, at its option, elect to substitute another person who is related to the Guarantor (or its estate) (within the meaning of Treasury Regulation section 1.752- 4(b)) to serve as Guarantor hereunder, provided that such person has a net worth at the time of such substitution of not less than the net worth of the existing Guarantor hereunder at the time of such substitution and there is no default under the Loan Documents with respect to any payment due at the time of such substitution. In the event of such substitution, the existing Guarantor hereunder shall be released from all liability upon delivery to Lender of a guarantee in the form of this Guarantee executed by such substituted person.

Release of Guarantee; Substitution. In the event that (a) Guarantor a Principal disposes of all of his, her or its OP Units [entire direct or indirect interest in the Operating Partnership, or otherwise desires to be released from this Guarantee]Agreement, at a time when there the Loan is not a in default with respect to any payment due under the Note and the ratio of the outstanding balance of the Guaranteed Obligations to the appraised value of the Properties is not greater than [80% %] (the “Ratio Test”) or (b) a Guarantor Principal dies, then, upon request by such Guarantor Principal (or his or her estate), such Guarantor Principal (or his or her estate) shall be released from all liability hereunder (and his, her or its Guaranteed Obligation obligations under this Agreement shall be reduced to zero). Notwithstanding the foregoing, the occurrence of an event described in clause (a) or (b) above shall not release a Guarantor Principal (or its estate) from any payment obligation it incurred prior to the occurrence of such event. Guarantor A Principal (or its his or her estate) may, at his, her or its option, elect to substitute another person who is related to the Guarantor Principal (or his her or its estate) (within the meaning of Treasury Regulation section 1.752- § 1.752-4(b)) to serve as Guarantor a Principal hereunder, provided that such person has a net worth at the time of such substitution of not less than the net worth of the existing Guarantor Principal hereunder at the time of such substitution and there is no default under the Loan Documents with respect to any payment due at the time of such substitution. In the event of such substitution, the existing Guarantor Principal hereunder shall be released from all liability upon delivery to the Lender of a guarantee an agreement in the form of this Guarantee Agreement executed by such substituted person.

Release of Guarantee; Substitution. In the event that (a) Guarantor a Principal disposes of all of his, her or its OP Units [entire direct or indirect interest in the Operating Partnership, or otherwise desires to be released from this Guarantee]Agreement, at a time when there the Loan is not a in default with respect to any payment due under the Note and the ratio of the outstanding balance of the Guaranteed Obligations to the appraised value of the Properties assets of the Operating Partnership is not greater than [80% %] (the “Ratio Test”) or (b) a Guarantor Principal dies, then, upon request by such Guarantor Principal (or his or her estate), such Guarantor Principal (or his or her estate) shall be released from all liability hereunder (and his, her or its Guaranteed Obligation obligations under this Agreement shall be reduced to zero). Notwithstanding the foregoing, the occurrence of an event described in clause (a) or (b) above shall not release a Guarantor Principal (or its estate) from any payment obligation it incurred prior to the occurrence of such event. Guarantor A Principal (or its his or her estate) may, at his, her or its option, elect to substitute another person who is related to the Guarantor Principal (or his her or its estate) (within the meaning of Treasury Regulation section 1.752- § 1.752-4(b)) to serve as Guarantor a Principal hereunder, provided that such person has a net worth at the time of such substitution of not less than the net worth of the existing Guarantor Principal hereunder at the time of such substitution and there is no default under the Loan Documents with respect to any payment due at the time of such substitution. In the event of such substitution, the existing Guarantor Principal hereunder shall be released from all liability upon delivery to the Lender of a guarantee an agreement in the form of this Guarantee Agreement executed by such substituted person.