Subordinate Financing Clause Samples

Subordinate Financing. Subordinate financing must comply with the terms for Community Seconds® mortgages, except that the requirement contained therein for a down payment from the borrower’s own funds shall be governed by Section 6 above (entitled “Minimum Borrower Contribution”) for the particular option.

Subordinate Financing. No Mortgagor is permitted to incur indebtedness subordinate to the related Mortgage Loan and secured by the related Mortgaged Property.

Subordinate Financing. No secondary financing or encumbrance, or secured or unsecured Indebtedness, other than Permitted Indebtedness and Permitted Encumbrances, shall be permitted with respect to Borrower or the Property without Lender’s prior written consent, in its sole discretion. Notwithstanding the foregoing, Borrower shall have the right to incur a subordinate mezzanine financing or a preferred equity investment (as applicable, the “Subordinate Financing”) after the earlier of (a) the sixth (6th) Payment Date following a Securitization and (b) the twenty-fourth (24th) Payment Date following the Closing, provided that all of the following conditions are satisfied with respect to such Subordinate Financing: (i) the Aggregate Loan to Value Ratio shall not be greater than 57.1%; (ii) the Aggregate Debt Service Coverage Ratio shall not be less than 1.90:1.00; (iii) the Aggregate Debt Yield shall not be less than 9.00%; (iv) the Subordinate Financing shall be provided by a Subordinate Financing Approved Provider; (v) the structure of the Subordinate Financing, and all documents executed in connection with the Subordinate Financing (including any intercreditor agreement required by Lender) shall be in form and substance reasonably acceptable to Lender and subject to Lender’s prior written approval, in Lender’s reasonable discretion, and, subsequent to a Securitization, subject to the prior approval of any applicable Rating Agencies; (vi) Lender shall have received a notice from Borrower requesting Lender’s consent to the Subordinate Financing not less than thirty (30) days prior to the proposed date of closing of the Subordinate Financing; (vii) no Default or Event of Default has occurred and is continuing; (viii) the Subordinate Financing (i) shall be non-recourse, except for recourse carve-outs and environmental liabilities and obligations consistent with, and no more protective in favor of the indemnified party thereunder than, those set forth in the Guaranty or the Environmental Indemnity (as applicable); (ii) shall be secured only by a pledge of the direct or indirect ownership interests in Borrower or the most junior borrower under a New Mezzanine Loan, as applicable, and any accounts established under any separate mezzanine cash management arrangement, (iii) shall not be secured by the Property or any interest therein, and (iv) shall not be cross-collateralized or cross-defaulted with any other properties or loans (other than the Loan); (ix) Borrower shall have executed a...

Subordinate Financing. Mortgages may be subject to subordinate financing in accordance with the EA Lender Guide. Mortgages subject to subordinate financing are subject to any applicable loan level price adjustments, in addition to any other loan level price adjustments that may apply.

Subordinate Financing. Borrower shall not permit there to exist nor shall Borrower obtain any subordinate financing of the SLF, or any part thereof, or any other property granted as security for the Loan.

Subordinate Financing. ▇▇▇▇▇▇▇ Mac will not purchase, but may permit another lender to extend to Borrower, subordinate financing secured by the Mortgaged Property, provided that all of Lender’s requirements are satisfied.

Subordinate Financing. Lender may extend to Borrower subordinate financing secured by the Mortgaged Property, provided that all of Lender’s requirements are satisfied.

Subordinate Financing. Subordinate financing will be prohibited except with the written consent of the Lender, which may be withheld in ▇▇▇▇▇▇’s sole and absolute discretion.

Subordinate Financing. Borrower shall not permit there to exist nor shall Borrower obtain any subordinate financing of the Hotel, or any part thereof, or any other property granted as security for the Loan.