Conduit Loan Sample Clauses
A Conduit Loan clause defines the terms and conditions under which a loan is originated by a lender with the intention of selling it into a securitization, typically as part of a commercial mortgage-backed securities (CMBS) transaction. This clause outlines requirements such as standardized documentation, restrictions on modifications, and servicing obligations to ensure the loan meets the criteria for securitization. By establishing these parameters, the clause facilitates the transferability of the loan to investors and ensures compliance with the expectations of the secondary market, ultimately enabling the lender to efficiently sell the loan and manage risk.
Conduit Loan. The Authority agrees to lend the Owner the principal sum of Three Million Dollars ($3,000,000) upon the terms and conditions set forth in this Agreement. The Conduit Loan shall be made on the same terms and conditions and interest rate as the Bank Loan. The Owner agrees to accept the Conduit Loan and agrees to comply with the terms and conditions of this Agreement. The Authority shall use the proceeds of the Bank Loan to fund the Conduit Loan.