Defeasance Collateral Sample Clauses

The Defeasance Collateral clause defines the specific assets or securities that a borrower must provide to replace the original collateral when exercising a defeasance option, typically in the context of commercial real estate loans. In practice, this usually involves the borrower purchasing and pledging government securities whose cash flows match the remaining loan payments, thereby allowing the original property to be released from the mortgage lien. This clause ensures that the lender continues to receive scheduled payments with minimal risk, while enabling the borrower to sell or refinance the property free of the original loan encumbrance.
Defeasance Collateral. U.S. Obligations, which provide payments (i) on or prior to, but as close as possible to, all Payment Dates and other scheduled payment dates, if any, under the Note after the Defeasance Date and up to and including the Stated Maturity Date, and (ii) in amounts equal to or greater than the Scheduled Defeasance Payments.
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Defeasance Collateral. The Defeasance Collateral shall be duly endorsed by the holder thereof as directed by Lender or accompanied by a written instrument of transfer in form and substance that would be reasonably satisfactory to a prudent lender and that does not require Borrower or Maryland Loan Guarantor, as applicable, to incur any additional obligations or liabilities, (including, without limitation, such instruments as may be reasonably required by the depository institution holding such securities or by the issuer thereof, as the case may be, to effectuate book-entry transfers and pledges through the book-entry facilities of such institution) in order to perfect, upon the delivery of the Defeasance Collateral, a first priority security interest therein in favor of the Lender in conformity with all applicable state and federal laws governing the granting of such security interests.
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Defeasance Collateral. Each of the U.S. Obligations that are part of the Partial Defeasance Collateral or the Total Defeasance Collateral, as applicable, shall be duly endorsed by the holder thereof as directed by ▇▇▇▇▇▇ or accompanied by a written instrument of transfer in form and substance that would be satisfactory to a prudent lender (including, without limitation, such instruments as may be required by the depository institution holding such securities or by the issuer thereof, as the case may be, to effectuate book-entry transfers and pledges through the book-entry facilities of such institution) in order to perfect upon the delivery of the Partial Defeasance Collateral or the Total Defeasance Collateral, as applicable, a first-priority security interest therein in favor of Lender in conformity with all applicable state and federal laws governing the granting of such security interests.
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Defeasance Collateral. The Indenture Trustee hereby acknowledges its acceptance of such conveyance and its receipt of the Class A(2023-1) Defeasance Collateral, and the Indenture Trustee shall retain exclusive control or possession of the Class A(2023-1) Defeasance Collateral in accordance with this Agreement.
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Defeasance Collateral. Borrower shall deposit the Defeasance Collateral in accordance with this Section 13.2.2 into the Defeasance Collateral Account. Defeasance shall be permitted at such time as all of the following events shall have occurred:
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Defeasance Collateral. Quantities and Criteria. The term "Defeasance Collateral" as used herein shall mean direct, non-callable obligations of the Treasury of the United States of America, for which its full faith and credit is pledged, that provide for payments prior, but as close as possible, to all successive Monthly Payment Dates occurring after the Defeasance Date, with each such payment being equal to or greater than the amount of the corresponding installment of principal and interest under the Note and other Loan Documents, including the payment in full of all obligations outstanding hereunder and under the Note and other Loan Documents assuming Borrower were to prepay the Note in full on the Optional Prepayment Date. In the case of a Defeasance of fewer than all of the Properties, the amount of the Defeasance Collateral shall be sufficient, as determined by Lender, to pay a portion of the aggregate monthly debt service, other Loan sums and amounts due at the Optional Prepayment Date attributable to a portion of Loan principal equal to the Release Price for the applicable Property, determined immediately prior to the Defeasance.
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Defeasance Collateral. The term "DEFEASANCE COLLATERAL" as used herein shall mean a portfolio of Government Securities (as defined in SECTION 2(a)(16) of the Investment Company Act of 1940), each of which shall be duly endorsed by the holder thereof as directed by Lender or accompanied by a written instrument of transfer in form and substance reasonably satisfactory to Lender (including, without limitation, such instruments as may be required by the depository institution holding such securities or by the issuer thereof, as the case may be, to effectuate book-entry transfers and pledges through book-entry facilities of such institution) in order to perfect upon the delivery of the Defeasance Collateral the first priority security interest therein in favor of the Lender in conformity with all applicable state and federal laws governing the granting of such security interests. Borrower shall authorize and direct that the payments received from such obligations shall be made directly to Lender or Lender's designee and applies to satisfy the obligations of the Borrower or, if applicable, the Defeasance Obligor, under the Note.
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Defeasance Collateral. Upon compliance with the requirements of SUBPARAGRAPH 3.2 above: (a) Lender shall use the Defeasance Deposit to purchase on ▇▇▇▇▇▇▇▇'s behalf direct, non-callable obligations of the United States of America (which are government securities within the meaning of Treas. Reg. 1.860G-2(a)(8)(i) and which securities must comply [as determined by Lender in its sole discretion] with REMIC and rating agency requirements) that provide, without reinvestment, for payments not later than the due dates of all successive monthly Debt Service Payment Dates occurring after the Release Date, with each such payment being equal to or greater than the amount of the corresponding installment of principal and interest required to be paid under this Note (including all amounts due on the Maturity Date for the balance of the term hereof) (the "DEFEASANCE COLLATERAL") as certified by an independent certified public accountant satisfactory to Lender, each of which securities shall be duly endorsed as directed by ▇▇▇▇▇▇ or accompanied by a written instrument of transfer in form and substance wholly satisfactory to Lender (including, without limitation, such instruments as may be required by the depository institution holding such securities to effectuate book-entry transfers and pledges through the book-entry facilities of such institution) to create a first priority security interest therein in favor of Lender in conformity with all applicable state and federal laws governing granting of such security interests. In connection with the conditions set forth above, Borrower hereby appoints ▇▇▇▇▇▇ as its agent and attorney-in-fact for the purpose of purchasing the Defeasance Collateral with the Defeasance Deposit. Borrower, pursuant to the Defeasance Security Agreement, shall authorize and direct the payments received from the Defeasance Collateral to be made directly to Lender and applied to satisfy the obligations of Borrower under this Note. Any portion of the Defeasance Deposit in excess of the amount necessary to purchase the Defeasance Collateral and satisfy all of Borrower's obligations to Lender shall be returned to Borrower without interest. (b) The Property shall be released from the lien of the Security Instrument and the other Loan Documents after Borrower fulfills the Applicable Rating Agencies' and all REMIC requirements, and the Defeasance Collateral shall constitute collateral which shall secure this Note and all other obligations under the Loan Documents.
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Defeasance Collateral. 23 INDEX (CONTINUED) Page
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Related to Defeasance Collateral

  • DEFEASANCE AND COVENANT DEFEASANCE SECTION 1301.

  • Defeasance With respect to any Mortgage Loan that, pursuant to the Mortgage Loan documents, can be defeased (a “Defeasance”), (i) the Mortgage Loan documents provide for defeasance as a unilateral right of the Mortgagor, subject to satisfaction of conditions specified in the Mortgage Loan documents; (ii) the Mortgage Loan cannot be defeased within two years after the Closing Date; (iii) the Mortgagor is permitted to pledge only United States “government securities” within the meaning of Treasury Regulations Section 1.860G-2(a)(8)(ii), the revenues from which will be sufficient to make all scheduled payments under the Mortgage Loan when due, including the entire remaining principal balance on the maturity date (or on or after the first date on which payment may be made without payment of a Yield Maintenance Charge or Prepayment Premium) or, if the Mortgage Loan is an ARD Loan, the entire principal balance outstanding on the Anticipated Repayment Date (or on or after the first date on which payment may be made without payment of a Yield Maintenance Charge or Prepayment Premium), and if the Mortgage Loan permits partial releases of real property in connection with partial defeasance, the revenues from the collateral will be sufficient to pay all such scheduled payments calculated on a principal amount equal to a specified percentage at least equal to 110% of the allocated loan amount for the real property to be released; (iv) the defeasance collateral is not permitted to be subject to prepayment, call, or early redemption; (v) the Mortgagor is required to provide a certification from an independent certified public accountant that the collateral is sufficient to make all scheduled payments under the Mortgage Note as set forth in clause (iii) above; (vi) the defeased note and the defeasance collateral are required to be assumed by a Single-Purpose Entity; (vii) the Mortgagor is required to provide an opinion of counsel that the Trustee has a perfected security interest in such collateral prior to any other claim or interest; and (viii) the Mortgagor is required to pay all rating agency fees associated with defeasance (if rating confirmation is a specific condition precedent thereto) and all other reasonable expenses associated with defeasance, including, but not limited to, accountant’s fees and opinions of counsel.