Preferred Equity Security definition

Preferred Equity Security. A security, providing for regular payments of dividends or other distributions, representing an equity interest in an entity (including, without limitation, a partnership or a limited liability company) that is a borrower under a mortgage loan secured by commercial properties (or in an entity operating or controlling, directly or through affiliates, such commercial properties), which is generally senior with respect to the payments of dividends and other distributions, redemption rights and rights upon liquidation to such entity’s common equity.
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Examples of Preferred Equity Security in a sentence

  • If the Issuer, as holder of a B Note, a Participation, Preferred Equity Security or a Mezzanine Loan, has the right pursuant to the related Underlying Instruments to appoint the operating advisor, directing holder or Person serving a similar function under the Underlying Instruments, each of the Issuer, the Trustee and the Collateral Manager shall take such actions as are reasonably necessary to appoint the Collateral Manager to such position.

  • As promptly as practicable (and in any event within ten (10) days) on or after the purchase date, the Company shall issue and deliver at its principal office a certificate or certificates for the number of full shares or amount, whichever is applicable, of Preferred Equity Securities together with cash for any fraction of a share or portion of a Preferred Equity Security at the purchase price to which the Dolphin Holder of Stockholder Shares is entitled hereunder.

  • As promptly as practicable (and in any event within 10 days) on or after the purchase date, the Company shall issue and deliver at its principal office a certificate or certificates for the number of full shares or amount, whichever is applicable, of Preferred Equity Securities together with cash for any fraction of a share or portion of a Preferred Equity Security at the purchase price to which the Holder of Stockholder Shares is entitled hereunder.

  • The Seller has full right, power and the authority to sell, assign and transfer the Preferred Equity Security.

  • On the date of its issuance, the Preferred Equity Security complied in all material respects with, or was exempt from, all requirements of federal, state or local law relating to the issuance and funding of the Preferred Equity Security.

  • Pursuant to the terms of the related intercreditor agreements, the holder of the related Mortgage Loan is not permitted to exercise any rights it may have under the related Mortgage Loan documents or applicable law with respect to a foreclosure or other realization upon the collateral for the related Mortgage Loan without providing prior notice and opportunity to cure the related holder of the Preferred Equity Security (subject to the rights of any other equity holders).

  • Pursuant to terms of the related Preferred Equity Documentation and the related senior loan documents and/or the related mezzanine loan documents, any prepayment of the related senior loan and/or mezzanine loan requires a mandatory redemption of the related Preferred Equity Security.

  • To Seller's actual knowledge, there is no pending action, suit or proceeding, arbitration or governmental investigation against the issuer of Preferred Equity Security, an adverse outcome of which would materially and adversely affect the issuer of Preferred Equity Security's performance under the Preferred Equity Documentation.

  • The unreturned capital with respect to each Preferred Equity Security is set forth on Schedule E hereto, and no party other than the Seller holds an interest in the related Preferred Equity Security.

  • The Preferred Equity Security has been issued by, and represents an equity interest in an owner of an Underlying Property.