Common use of Repurchase of Defaulted Loans Clause in Contracts

Repurchase of Defaulted Loans. In the event a Loan becomes a Defaulted Loan, the Collateral Manager is hereby granted an option (a “Purchase Option”) to purchase such Defaulted Loan at a price (the “Option Price”) equal to the Fair Market Value thereof. Upon a Loan becoming a Defaulted Loan, the Collateral Manager may exercise the Purchase Option by providing the Borrower, the Trustee, the Administrative Agent and the Lenders at least five days prior written notice thereof (the “Purchase Option Notice”), which notice shall specify a cash exercise price at least equal to the Option Price. Unless and until the Purchase Option with respect to a Defaulted Loan is exercised, the Collateral Manager shall pursue such other resolution strategies available hereunder with respect to such Defaulted Loan, including, without limitation, workout and foreclosure, as the Collateral Manager may deem appropriate and consistent with the Collateral Management Standard and the Credit and Collection Policy, in each case with a view towards the maximization of the recovery on such Loan to the Borrower on a present value basis. The exercise of the Purchase Option shall be subject to the following conditions precedent: (i) any sale of the applicable Loans by the Borrower in connection with the exercise of the Purchase Option shall be made by the Borrower in a transaction in which the Borrower makes no representations, warranties or covenants and provides no indemnification for the benefit of any other party; (ii) after giving effect to the exercise of the Purchase Option (x) the representations and warranties contained in Sections 4.1 and 4.2 hereof shall continue to be correct in all material respects, except to the extent relating to an earlier date, (y) neither an Unmatured Event of Default nor an Event of Default shall have occurred and (z) no Borrowing Base Deficiency exists; (iii) the Collateral Manager shall have deposited the Option Price into the Collection Account; and (iv) satisfaction of the applicable provisions in Section 2.22 and Section 2.24.

Repurchase of Defaulted Loans. In the event a Loan becomes a Defaulted Loan, the Collateral Manager Servicer is hereby granted an option (a “Purchase Option”) to purchase such Defaulted Loan at a price (the “Option Price”) equal to the Fair Market Value thereof. Upon a Loan becoming a Defaulted Loan, the Collateral Manager Servicer may exercise the Purchase Option by providing the Borrower, the Trustee, the Administrative Agent and the Lenders Lender Agents at least five days prior written notice thereof (the “Purchase Option Notice”), which notice shall specify a cash exercise price at least equal to the Option Price. The exercise of any Purchase Option shall be irrevocable. Unless and until the Purchase Option with respect to a Defaulted Loan is exercised, the Collateral Manager Servicer shall pursue such other resolution strategies available hereunder with respect to such Defaulted Loan, including, without limitation, workout and foreclosure, as the Collateral Manager Servicer may deem appropriate and consistent with the Collateral Management Servicing Standard and the Credit and Collection Policy, in each case with a view towards the maximization of the recovery on such Loan to the Borrower on a present value basis. The exercise of the Purchase Option shall be subject to the following conditions precedent: (i) any sale of the applicable Loans by the Borrower in connection with the exercise of the Purchase Option shall be made by the Borrower in a transaction in which the Borrower makes no representations, warranties or covenants and provides no indemnification for the benefit of any other party; (ii) after giving effect to the exercise of the Purchase Option (x) the representations and warranties contained in Sections 4.1 and 4.2 hereof shall continue to be correct in all material respects, except to the extent relating to an earlier date, (y) neither an Unmatured Termination Event of Default nor an a Termination Event of Default shall have occurred and (z) no Borrowing Base Deficiency exists; (iii) the Collateral Manager Servicer shall have deposited the Option Price into the Collection Account; and (iv) satisfaction of the applicable provisions in Section 2.22 and Section 2.24.

Repurchase of Defaulted Loans. In the event a Loan becomes a Defaulted Loan, the Collateral Manager Servicer is hereby granted an option (a “Purchase Option”) to purchase such Defaulted Loan at a price (the “Option Price”) equal to the Fair Market Value thereof. Upon a Loan becoming a Defaulted Loan, the Collateral Manager Servicer may exercise the Purchase Option by providing the Borrower, the Trustee, the Administrative Agent and the Lenders at least five days prior written notice thereof (the “Purchase Option Notice”), which notice shall specify a cash exercise price at least equal to the Option Price. The exercise of any Purchase Option shall be irrevocable. Unless and until the Purchase Option with respect to a Defaulted Loan is exercised, the Collateral Manager Servicer shall pursue such other resolution strategies available hereunder with respect to such Defaulted Loan, including, without limitation, workout and foreclosure, as the Collateral Manager Servicer may deem appropriate and consistent with the Collateral Management Servicing Standard and the Credit and Collection Policy, in each case with a view towards the maximization of the recovery on such Loan to the Borrower on a present value basis. The exercise of the Purchase Option shall be subject to the following conditions precedent: (i) any sale of the applicable Loans by the Borrower in connection with the exercise of the Purchase Option shall be made by the Borrower in a transaction in which the Borrower makes no representations, warranties or covenants and provides no indemnification for the benefit of any other party; (ii) after giving effect to the exercise of the Purchase Option (x) the representations and warranties contained in Sections 4.1 and 4.2 hereof shall continue to be correct in all material respects, except to the extent relating to an earlier date, (y) neither an Unmatured Termination Event of Default nor an a Termination Event of Default shall have occurred and (z) no Borrowing Base Deficiency exists; (iii) the Collateral Manager Servicer shall have deposited the Option Price into the Collection Account; and (iv) satisfaction of the applicable provisions in Section 2.22 and Section 2.24.

Repurchase of Defaulted Loans. In the event a Loan becomes a Defaulted Loan, the Collateral Manager is Servicer and Equityholder are each hereby granted an option (a “Purchase Option”) to purchase such Defaulted Loan at a price (the “Option Price”) equal to the Fair Market Value thereof. Upon a Loan becoming a Defaulted Loan, the Collateral Manager Servicer or Equityholder may exercise the Purchase Option by providing the Borrower, the Trustee, the Administrative Agent and the Lenders at least five (5) days prior written notice thereof (the “Purchase Option Notice”), which notice shall specify a cash exercise price at least equal to the Option Price. The exercise of any Purchase Option shall be irrevocable. Unless and until the Purchase Option with respect to a Defaulted Loan is exercised, the Collateral Manager Servicer shall pursue such other resolution strategies available hereunder with respect to such Defaulted Loan, including, without limitation, workout and foreclosure, as the Collateral Manager Servicer may deem appropriate and consistent with the Collateral Management Servicing Standard and the Credit and Collection Policy, in each case with a view towards the maximization of the recovery on such Loan to the Borrower on a present value basis. The exercise of the Purchase Option shall be subject to the following conditions precedent: (i) any sale of the applicable Loans by the Borrower in connection with the exercise of the Purchase Option shall be made by the Borrower in a transaction in which the Borrower makes no representations, warranties or covenants and provides no indemnification for the benefit of any other party; (ii) after giving effect to the exercise of the Purchase Option (x) the representations and warranties contained in Sections 4.1 and 4.2 hereof shall continue to be correct in all material respects, except to the extent relating to an earlier date, (y) neither an Unmatured Event of Default nor an Event of a Default shall have occurred and be continuing and (z) no Borrowing Base Deficiency exists; (iii) the Collateral Manager Servicer or Equityholder, as applicable, shall have deposited the Option Price into the Collection Account; and (iv) satisfaction of the applicable provisions in Section 2.22 2.18 and Section 2.242.20.