Restructuring of Loan Clause Samples
The 'Restructuring of Loan' clause defines the terms and conditions under which the parties may modify the original loan agreement, typically in response to financial difficulties or changing circumstances. This clause outlines the process for renegotiating aspects such as repayment schedules, interest rates, or collateral requirements, and may specify the documentation and approvals needed for such changes. Its core practical function is to provide a structured mechanism for adapting the loan agreement, thereby helping both lender and borrower manage risk and avoid default when unforeseen challenges arise.
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Restructuring of Loan. (a) Lender, without in any way limiting Lender’s other rights hereunder, in its sole and absolute discretion, shall have the right at any time prior to a Securitization to require Borrowers to restructure the Loan into additional multiple notes (which may include component notes and/or senior and junior notes) and/or to create participation interests in the Loan, which restructuring may include reallocation of principal amounts of the Loan and/or the Mezzanine Loan amongst each other and/or the restructuring of a portion of the Loan and/or the Mezzanine Loan to one or more of the foregoing or to one or more additional mezzanine loans (the “New Mezzanine Loan”) to the direct or indirect owners of the equity interests in Borrowers, secured by a pledge of such interests, the establishment of different interest rates and debt service payments for the Loan, the Mezzanine Loan and the New Mezzanine Loan and the payment of the Loan, the Mezzanine Loan and the New Mezzanine Loan in such order of priority as may be designated by Lender; provided that (i) the total principal amounts of the Loan, the Mezzanine Loan and the New Mezzanine Loan shall equal the total principal amount of the Loan and the Mezzanine Loan immediately prior to the restructuring, (ii) except in the case of the occurrence of an Event of Default, a Mezzanine Loan Event of Default and/or a default beyond all notice and cure periods under the New Mezzanine Loan, or of a Casualty or Condemnation that results in the payment of principal under the Loan, the Mezzanine Loan and/or the New Mezzanine Loan, the weighted average interest rate of the Loan, the Mezzanine Loan and the New Mezzanine Loan, if any, shall, in the aggregate, equal the weighted average aggregate interest rate of the Mortgage Loan and Mezzanine Loan as determined by Lender immediately prior to the restructuring (except as set forth in the last sentence of this clause (a)), and (iii) except in the case of the occurrence of an Event of Default, a Mezzanine Loan Event of Default and/or a default beyond all notice and cure periods under the New Mezzanine Loan, or of a Casualty or Condemnation that results in the payment of principal under the Loan, the Mezzanine Loan and/or the New Mezzanine Loan, the aggregate debt service payments on the Loan, the Mezzanine Loan and the New Mezzanine Loan shall equal the aggregate debt service payments which would have been payable under the Loan, and the Mezzanine Loan had the restructuring not occur...
Restructuring of Loan. (a) Lender shall have the right, at any time (whether prior to, in connection with, or after any Secondary Market Transaction), with respect to all or any portion of the Loan, to modify, split and/or sever all or any portion of the Loan as hereinafter provided. Without limiting the foregoing, Lender may (i) cause the Note and the Mortgage to be split into a first and second mortgage loan, (ii) create one or more senior and subordinate notes (i.e., an A/B or A/B/C structure), (iii) create multiple components of the Note or Notes (and allocate or reallocate the principal balance of the Loan among such components), (iv) otherwise sever the Loan into two (2) or more loans secured by mortgages and by a pledge of partnership or membership interests (directly or indirectly) in Borrower (i.e., a senior loan/mezzanine loan structure), in each such case described in clauses (i) through (iv) above, in whatever proportion and whatever priority Lender determines, and (v) modify the Loan Documents with respect to the newly created Notes or components of the Note or Notes such that the pricing and marketability of the Securities and the size of each class of Securities and the rating assigned to each such class by the Rating Agencies shall provide the most favorable rating levels and achieve the optimum rating levels for the Loan. Notwithstanding the foregoing, no such amendment described above shall (i) modify or amend any material economic term of the Loan, or (ii) materially increase the obligations, or decrease the rights, of Borrower or Guarantor under the Loan Documents; provided, however, in each such instance the outstanding ‑107 ‑ principal balance of all the Notes evidencing the Loan (or components of such Notes) immediately after the effective date of such modification equals the outstanding principal balance of the Loan immediately prior to such modification and the weighted average of the interest rates for all such Notes (or components of such Notes) immediately after the effective date of such modification equals the interest rate of the original Note immediately prior to such modification. If requested by Lender, Borrower (and Borrower’s constituent members, if applicable, and Guarantor) shall execute within ten (10) Business Days after such request, such documentation as Lender may reasonably request to evidence and/or effectuate any such modification or severance, provided that such documentation is consistent with the requirements of this paragraph.
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Restructuring of Loan. At any time prior to the Securitization of the entire Loan, Lender, without in any way limiting Lender’s other rights hereunder, in its sole and absolute discretion, shall have the right at any time to require Borrower to restructure the Loan into multiple notes (which may include component notes and/or senior and junior notes) and/or to create participation interests in the Loan, which restructuring may include reallocation of principal amounts of the Loan or the restructuring of a portion of the Loan to either the Mezzanine Loan or an additional mezzanine loan (the “New Mezzanine Loan”) to the owners of the equity interests in Borrower, secured by a pledge of such interests, and/or the reallocation of a portion of the Mezzanine Loan to the Loan and/or the New Mezzanine Loan or the establishment of different interest rates, floor interest rates and debt service payments for the Loan, the Mezzanine Loan and the New Mezzanine Loan and the payment of the Loan, the Mezzanine Loan and the New Mezzanine Loan in such order of priority as may be designated by Lender; provided that (i) the total amounts of the Loan, the Mezzanine Loan and the New Mezzanine Loan shall equal the amount of the Loan and the Mezzanine Loan immediately prior to the restructuring and the economic terms of the Loan, the Mezzanine Loan and the New Mezzanine Loan shall be the same as the economic terms of the Loan and the Mezzanine Loan prior to such Restructuring, (ii) except in the case of an Event of Default under, or prepayment of, the Loan, the Mezzanine Loan and/or the New Mezzanine Loan, the weighted interest rate of the Loan, the Mezzanine Loan and the New Mezzanine Loan, if any, shall, at the time of the restructuring, equal the weighted average interest rate of the Loan and the Mezzanine Loan, and (iii) except in the case of an Event of Default under, or a prepayment of, the Loan, the Mezzanine Loan and/or the New Mezzanine Loan, the debt service payments on the Loan, the Mezzanine Loan and the New Mezzanine Loan shall equal the debt service payments which would have been payable under the Loan and the Mezzanine Loan had the restructuring not occurred. Borrower shall cooperate with all reasonable requests of Lender in order to restructure the Loan and the Mezzanine Loan and create a New Mezzanine Loan, if applicable, and shall, upon ten (10) Business Days written notice from Lender, which notice shall include the forms of documents for which Lender is requesting execution and deli...
Restructuring of Loan. (a) In the event that a Lender is entitled to a payment under Sections 5.3(m), 5.11 or 5.13 (an “Affected Lender”) and without prejudice to the Finance Party’s rights hereunder and under any other Operative Document, the Borrower, the Facility Agent and the Affected Lender shall cooperate (at the Borrower’s sole cost and expense) for a period of thirty (30) days to restructure the Loan for the Affected Lender with a view to eliminating or reducing the need for any such payment (it being agreed that the Affected Lender shall have no obligation to proceed with such restructuring to the extent such restructuring would or may reasonably be expected to:
(1) result in an adverse regulatory consequence for the Affected Lender; or
(2) involve any unreimbursed or unindemnified cost for the Affected Lender; or
(3) be inconsistent with the Affected Lender’s internal policies). If no restructuring can be arranged within such time period, the Borrower may attempt within such time period to find an entity reasonably satisfactory to the Facility Agent to purchase the Affected Lender’s Loan Certificate and assume the Affected Lender’s Commitment.
(b) The Affected Lender shall be paid (by the purchasing entity or the Borrower) the outstanding principal balance of its Loan Certificate, all accrued and unpaid interest thereon, any Break Amount incurred (calculated as if such purchase were a prepayment of such Affected Lender’s Loan Certificate) and all other amounts owed to the Affected Lender hereunder and under any other Operative Document as a condition precedent to such purchase.
(c) In the event the Borrower is unable to find a purchaser of the Affected Lender’s Loan Certificate, then, so long as no Default or Event of Default shall have occurred and be continuing on at least three (3) Business Days’ prior written notice, the Borrower may prepay on the date specified in its notice of prepayment, in whole the Affected Lender’s Loan Certificate at the principal amount thereof together with accrued and unpaid interest thereon to the date of prepayment plus the Break Amount, if any, and all other amounts due to the Affected Lender hereunder, thereunder and under any other Operative Document.
Restructuring of Loan. Lender, without in any way limiting Lender’s other rights hereunder, in its sole and absolute discretion, shall have the right, at any time and from time-to-time (whether prior to or after any sale, participation or Securitization of all or any portion of the Loan), to require Borrower to (A) execute and deliver “component” notes and/or modify the Loan in order to create one or more senior and subordinate notes (i.e., an A/B or A/B/C, etc. structure) and/or one or more additional components (including pari-passu components) of the Note or Notes, reduce the number of components of the Note or Notes, revise the interest rate for each component, reallocate the principal balances of the Notes and/or the components, increase or decrease the monthly debt service payments for each component and/or such Notes or eliminate the component structure and/or the multiple note structure of the Loan (including the elimination of the related allocations of principal and interest payments) and provide for the repayment of each of the Notes and/or components in such order of priority as may be designated by Lender, and/or (B) restructure a portion of the Loan into one or more mezzanine loans (each, a “New Mezzanine Loan”) to the owners of the direct and/or indirect equity interests in Borrower, secured by a pledge of such equity interests, establish different interest rates and debt service payments for the Loan and each New Mezzanine Loan and provide for the repayment of the Loan and each New Mezzanine Loan in such order of priority as may be designated by Lender, and/or consolidate one or more (including all) of such New Mezzanine Loans into the Loan and eliminate any such New Mezzanine Loan structure; provided, that (i) the total amounts of the Loan and the New Mezzanine Loan shall equal the amount of the Loan immediately prior to the restructuring, (ii) except in the case of an Event of Default under the Loan or the New Mezzanine Loan or any voluntary or involuntary prepayment of all or any portion of the Loan and/or any New Mezzanine Loan (including, but not limited to a full or partial prepayment of the Loan and/or any New Mezzanine Loan(s) in connection with a casualty or condemnation), the weighted average interest rate of the Loan and the New Mezzanine Loan, if any, shall, in the aggregate, equal the interest rate which was applicable to the Loan immediately prior to the restructuring and (iii) except in the case of an Event of Default under the Loan or the New Mezz...
Restructuring of Loan. Lender, without in any way limiting Lender’s other rights hereunder, in its sole and absolute discretion, shall have the right at any time to require Borrower to restructure the Loan into multiple notes (which may include component notes or senior and junior notes) or to create participation interests in the Loan, and which restructuring may include reallocation of principal amounts of the Loan (including, by way of example, the increase or decrease in the principal amount of the senior note and instrument securing same, and the corresponding decrease or increase in the principal amounts of the junior note(s) and the security instrument(s) securing same). In the event Borrower fails to execute and deliver any documents required pursuant to this Section 9.4 to Lender within ten (10) Business Days following such request by Lender, Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in its name and stead to make and execute all documents necessary or desirable to effect such transactions, Borrower ratifying all that such attorney shall do by virtue thereof (provided, however, Lender agrees that it will not exercise the power of attorney granted hereunder unless an Event of Default has occurred and is continuing.). It shall be an Event of Default if Borrower fails to comply with any of the terms, covenants or conditions of this Section 9 after the expiration of ten (10) Business Days after notice thereof. Borrower covenants and agrees that any such reallocation (as described above) will be in compliance with the representations and warranties set forth in Section 4.1 and Section 5.12 hereof.
Restructuring of Loan. Debtor acknowledges, confirms and agrees that it is indebted to Secured Party as provided in the Loan Agreement. In reliance upon the representations, warranties and covenants of Debtor, Secured Party further agrees to Debtor’s request, as specified in more detail in this Amendment, to, inter alia, (i) change the Interest Installment and Periodic Installment payment dates from the first day of each month to the twenty-fifth (25th) day of each month effective with the New Interest Installment due on January 25, 2009, (ii) restructure the Loan payments and re-amortize the Loan by allowing Debtor to pay (a) three (3) months of interest only, in arrears, commencing with the New Interest Installment due on January 25, 2009 and the final New Interest Installment due on ▇▇▇▇▇ ▇▇, ▇▇▇▇, (▇) followed by eighteen (18) New Periodic Installments of principal and interest, in advance, commencing April 25, 2009 and ending with the New Periodic Installment due on September 25, 2010, and (iii) waive an Event of Default under Section 9(a)(xiv) of the Loan Agreement with respect to default by Debtor of Debtor’s obligations to Point Financial, Inc.; (iv) to provide to Lender the New Warrant as consideration for Secured Party’s restructuring of the Loan described herein, and (v) to allow Debtor an extension of time to supply to Lender its complete audited financial statements for fiscal year ended 2007 and 2008.
Restructuring of Loan