Permanent Loan Conversion definition

Permanent Loan Conversion means the conversion of construction loans to permanent status, and may include payment in full or part of the principal of a construction loan or the funding of additional loans upon completion of construction. Permanent Loan Conversion may be subject to additional due diligence requirements.

AI-Powered Contracts

Draft, Review & Redline at the Speed of AI

Permanent Loan Conversion means the Project has leased up to a minimum of 90 percent occupancy for a period of a minimum of 30 days in accordance with the applicable Department funding requirements; the units have been leased to the appropriate or designated populations identified, and they have met the terms and conditions of all Department funding awarded to the Project; and all construction period financing has converted to permanent financing.

Permanent Loan Conversion has the meaning set forth in Section 2.10 hereof.

Examples of Permanent Loan Conversion in a sentence

After the Permanent Loan Conversion, Borrower shall pay a monthly payment of principal equal to the Monthly Principal Installment on the first (1st) day of each month until the Permanent Loan Maturity Date, which Monthly Principal Installments are in addition to payments of accrued interest due on each such date.
If the Permanent Loan Conversion has occurred, this Section 2.8 shall be of no further force and effect.
Upon the Permanent Loan Conversion Date, the Debt Service Coverage Ratio, tested annually within 30 days as of each anniversary of the Permanent Loan Conversion Date (the “Testing Date”), shall be equal to or greater than 1.10:1:00, provided, however that Borrower may, at its option, satisfy the test set forth in this Section 5.26 by satisfying the DSCR/LTV Satisfaction Requirement.
If the Permanent Loan Conversion has occurred, this Section 2.9 shall be of no further force and effect.
The Assignment of Housing Assistance Payments Contract on Bank’s form to be executed by Borrower upon execution of the HAP Contract and prior to the Permanent Loan Conversion Date in favor of Bank, as additional collateral security for the performance of Borrower’s obligations under the Agreement, assigning to Bank all of Borrower’s rights under the HAP Contract, together with the consent to the assignment of the HAP Contract, in form and substance satisfactory to Bank, executed by the Housing Authority.
If the Developer is not in default under the terms of the Loan Documents as of the Permanent Loan Conversion Date, neither the Developer, Developer’s General Partner nor such persons shall be subject to any personal liability or accountability by reason of the execution hereof, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty, or otherwise.
If Sponsor fails to meet this Permanent Loan Conversion Deadline, the Department will terminate this Agreement and exercise its remedies in accordance with Paragraph 3 of Exhibit D, unless an alternate arrangement is legally permissible and has been approved by the Department in advance and in writing.
Monarch agrees to pay, as fair market value rent (Rent) for the use of the Property, the following: Upon the date the tTerm of the Ground LeaseAgreement commences $125,000 Construction Commencement $125,000 Annual Construction Rent Payments (annual payment beginning one year after the Construction Commencement Rent is paid) $50,000 Remainder Payment at Permanent Loan Conversion (Stabilization).
The Assignment of Housing Assistance Payments Contract on Bank‟s form, to be executed by Borrower upon execution of the HAP Contract and prior to the Permanent Loan Conversion Date in favor of Bank as additional collateral security for the performance of Borrower‟s obligations under the Loan Documents, assigning to Bank all of Borrower‟s rights under the HAP Contract together with that certain Consent to Assignment of HAP Contract attached thereto to and executed by the Housing Authority.
The “Permanent Loan Maturity Date” shall be the date which is thirty (30) years after the Permanent Loan Conversion Date.

More Definitions of Permanent Loan Conversion

Permanent Loan Conversion means the event of paying off the construction loan with the proceeds of the permanent loan. The conditions for converting from the construction loan phase to the permanent loan phase are (1) trigger of Project Completion; (2) Payment of Construction Period Interest in accordance with the City Loan Agreement; and (3) Stabilized Occupancy.

Permanent Loan Conversion means the date on which the Construction Loan has been repaid in full, the HACLA Loans have converted to permanent phase, non-recourse financing, and the First Deed of Trust Loan has converted to a permanent phase, non-recourse, amortizing loan.