Securitization Provision Sample Clauses
A Securitization Provision allows a party, typically a lender or creditor, to package and sell its rights or interests under a contract to third parties, often as part of a financial transaction such as issuing asset-backed securities. This clause outlines the conditions under which contractual rights, such as receivables or payment streams, can be transferred or assigned to facilitate securitization. By enabling the transfer of these rights, the provision helps parties access liquidity and manage risk, while also clarifying the process and limitations of such transfers to prevent disputes.
Securitization Provision. Notwithstanding anything to the contrary contained herein or in any other Loan Document, if the Loan or any portion thereof is included in a REMIC Trust and, immediately following a release of any portion of the lien of the Security Instrument or Collateral in connection with a Condemnation of an Individual Property (but taking into account any proposed Restoration on the remaining portion of such Individual Property) (based solely on real property and excluding any personal property or going concern value), the Loan-to-Value Ratio (as determined in Lender’s reasonable discretion, by any commercially reasonable method permitted to a REMIC Trust) is greater than 125%, the principal balance of the Loan must prepaid down by an amount not less than the least of the following amounts: (i) the net amount of the Award, after deduction of Lender’s and Borrower’s reasonable costs and expenses (including, but not limited to, reasonable counsel fees), if any, in collecting same (“Condemnation Proceeds”), (ii) the fair market value of the released property at the time of the release, or (iii) an amount such that the Loan-to-Value Ratio (as determined in Lender’s reasonable discretion, by any commercially reasonable method permitted to a REMIC Trust) does not increase after the release, unless Lender receives an opinion of counsel that if such amount is not paid, the Securitization will not fail to maintain its status as a REMIC Trust as a result of the related release of such portion of the lien of the Security Instrument. Any such prepayment shall be deemed a voluntary prepayment and shall be subject to Section 2.7(b) hereof (other than the requirements to provide thirty (30) days’ notice to Lender and other than payment of any Prepayment Premium (as applicable)).
Securitization Provision. In the event that the Parent elects to execute or permits any Subsidiary to execute a Securitization during the Securitization Commitment Period, the Parent shall give the Agent written notice of such election (the "Election Notice") and Agent or its Affiliates shall have the right to act as Securitization Agent in connection with such Securitization. All fees payable to the Agent to execute such Securitization shall be commercially reasonable fees equal to fees charged by underwriters or placement agents, as applicable, at the time of such Securitization to securitize similar mortgage loans in substantially similar transactions. The Parent shall have the right to use a third party Securitization Agent during the Securitization Commitment Period if the Parent reasonably determines that the net proceeds to be received by the Parent or its Affiliates from a Securitization executed with the Agent or its Affiliates would be materially less than the net proceeds to be received by the Parent or its Affiliates from a Securitization executed by a third party Securitization Agent provided that the Parent pays to the Agent the Securitization Breakage Fee. Notwithstanding the foregoing, the Parent shall not be obligated to pay to the Agent any Securitization Breakage Fee if either (i) the Agent shall not have responded in writing to the Election Notice within ten Business Days after receipt thereof or (ii) the Agent elects in writing not to exercise its right to act as a Securitization Agent under this Section 6.1 (q).