Defeasance Requirements Clause Samples
The Defeasance Requirements clause outlines the specific conditions and procedures that must be met for a borrower to release a property from a mortgage or loan by substituting collateral, typically through the purchase of government securities. In practice, this clause details the types of securities required, the timing and notice provisions, and any associated costs or documentation needed to complete the defeasance process. Its core function is to provide a clear, standardized method for borrowers to satisfy their loan obligations and obtain release of the property lien without full prepayment, thereby offering flexibility while protecting the lender’s financial interests.
Defeasance Requirements. (a) Subject to Section 2.6, ----------------------- ------- --- the Loan may be defeased (A) in whole, or (B) in part, but only pursuant to Section 5.1(b)(P); provided that Operator: (i) provides, in the case of a ------- --------- defeasance pursuant to Section 5.1(b)(P), not less than ten (10) days', and, in ------- --------- all other cases, not less than thirty (30) days prior written notice to the Lender specifying a Payment Date (the "Defeasance Release Date") on which the ---------- ------- ---- payments provided in clauses (ii) and (iii) below are to be made and the deposit provided in clause (iv) below is to be made, (ii) pays all interest accrued and unpaid on the Principal Indebtedness to and including the Defeasance Release Date, (iii) pays all other sums then due and payable under the Loan Documents, (iv) deposits with the Lender an amount equal to the Defeasance Deposit, (v) intentionally omitted, (vi) intentionally omitted, and (vii) delivers to the Lender (A) a security agreement, in form and substance reasonably satisfactory to Lender, creating a first priority perfected Lien on the deposits required pursuant to this Section and the U.S. Obligations purchased on behalf of Borrower in accordance with this Section (the "Security Agreement"), (B) for -------- --------- execution by the Lender, a release of the Mortgaged Property from the liens of the Mortgages and the Assignments of Leases and the other Loan Documents (including, without limitation, liens on fixtures) in a form appropriate for the jurisdiction in which the Mortgaged Property is located, (C) an Officer's Certificate of Operator certifying that the requirements set forth in this Section have been satisfied, (D) an opinion of counsel from Borrower's or Operator's counsel in form and substance reasonably satisfactory to the Lender stating, among other things, (x) that, without qualification, the U.S. Obligations have been duly and validly assigned and delivered to Lender and Lender has a first priority perfected security interest on the deposits required pursuant to this Section and a first priority perfected lien on the U.S. Obligations and the proceeds thereof purchased hereunder and (y) that the defeasance will not adversely affect the status of any REMIC formed in connection with a Securitization, and (E) such other certificates, documents or instruments as the Lender may reasonably request including, without limitation, (x) written confirmation from the relevant Rating Agenc...
Defeasance Requirements. (a) Five (5) years after the Closing Date, Borrower may voluntarily defease all of the Loan and the Related Loans.
(b) Any defeasance of the Loan and the Related Loans by Borrower shall be made on a Payment Date.
(c) Borrower shall not be permitted at any time to defease all or any part of the Loan or the Related Loans except as expressly provided in this Section 6.14.
(d) Subject to the terms and conditions of this Deed of Trust, Borrower may defease the Loan and the Related Loans if Borrower: (i) has provided not less than thirty (30) days prior written notice to Lender specifying a Payment Date (the "Defeasance Release Date") on which the payments provided in clauses (ii) and (iii) below are to be made and the deposit provided in clause (iv) below is to be made, (ii) pays all interest accrued and unpaid on the outstanding principal amount of the Loan and the Related Loans to and including the Defeasance Release Date, (iii) pays all other sums then due and payable under the Loan Documents and the Related Loan Documents, (iv) deposits with Lender an amount equal to the Defeasance Deposit, (v) delivers to Lender (A) a security agreement, in form and substance satisfactory to Lender and Borrower, creating a first priority perfected Lien on the deposits required pursuant to this Section 6.14 and the U.S. Obligations purchased on behalf of Borrower in accordance with this Section 6.14 (the "Defeasance Security Agreement"), (B) a release of the Mortgaged Property from the lien of the Deed of Trust in a form appropriate for the jurisdiction in which the Mortgaged Property is located, to be executed by Lender, (C) an officer's certificate of Borrower certifying that the requirements set forth in this Section 6.14 have been satisfied, and (D) such other certificates, documents or instruments as Lender may reasonably request, and (vi) assigns to such other entity or entities established or designated by Lender (the "Successor 57 62
Defeasance Requirements. (a) Subject to Section 2.6, the Loan may be defeased (A) in whole, or (B) in part, but only pursuant to Section 5.1(P) or Section 2.16(c); provided, that Borrower: (i) provides not less than thirty (30) days prior written notice to the Lender specifying a Payment Date (the "Defeasance Release Date") on which the payments provided in clauses (ii) and (iii) below are to be made and the deposits provided in clause (iv) below are to be made, (ii) pays all interest accrued and unpaid on the Principal Indebtedness to
Defeasance Requirements. (a) Subject to Section 2.6, the Loan may be defeased (A) in whole, or (B) in part on a Facility-by-Facility basis, or (C) in part on a non-Facility-by-Facility basis, but only pursuant to Section 5.1(P); provided, that Borrower: (i) provides not less than thirty (30) days prior written notice to the Lender specifying a Payment Date (the "Defeasance Release Date") on which the payments provided in clauses (ii) and (iii) below are to be made and the deposits provided in clause (iv) below are to be made, (ii) pays all interest accrued and unpaid on the Principal Indebtedness to and including the Defeasance Release Date, (iii) pays all other sums then due and payable under the Loan Documents, (iv) deposits with Lender an amount equal to the Defeasance Deposit, (v) in the case of a defeasance in part on a Facility-by-Facility basis, provides to Lender evidence satisfactory that the Defeasance Debt Service Coverage Ratio for all Facilities (after giving effect to the defeasance and calculated on the basis of the prior twelve (12) calendar months), shall be greater
Defeasance Requirements. (a) After the Permitted Defeasance Date, the Lien of this Indenture shall be released with respect to the Property and the Mortgaged Property relating thereto, and Lender, on demand of and at the expense of Owner, shall execute proper instruments acknowledging satisfaction and discharge of the Lien of this Indenture (except as limited in this Section 2.20) when Owner has irrevocably deposited or caused to be deposited the Defeasance Deposit if loan becomes part of a REMIC for 3 yrs after Closing Date (2/13/98) with respect to such Mortgaged Property into the Defeasance Account if loan becomes part of a REMIC for 3 yrs after Closing Date (2/13/98) as directed by Lender (or an agent selected by Lender which will act as Lender's agent) and has otherwise complied with this Section 2.20; (b) Any defeasance of the Loan by Owner shall be made on a Payment Date;