Loan Assumption Approval Clause Samples
The Loan Assumption Approval clause sets out the conditions under which a borrower may transfer their loan obligations to another party, subject to the lender's consent. Typically, this clause requires the new party to meet certain creditworthiness standards and to formally apply for the lender's approval before the assumption can take place. Its core function is to protect the lender by ensuring that any new borrower is financially capable and trustworthy, thereby minimizing the risk of default after the loan is transferred.
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Loan Assumption Approval. On April 12, 2004, Purchaser exercised its right to extend the time to obtain Loan Approval pursuant to SECTION 5.7(C) of the Purchase Agreement by delivering written notice of such extension to Seller. Pursuant to such notice, the date to obtain Loan Approval was extended to May 12, 2004, and such date was subsequently extended to July 14, 2004 pursuant to the Fourth Amendment. Purchaser has been working diligently to obtain Loan Approval, but has not yet received the Loan Approval from Lender. Accordingly, Seller and Purchaser hereby agree that Purchaser shall have until 5:00 p.m. on July 21, 2004 to obtain Loan Approval from Lender. In the event that Purchaser is not able to obtain Loan Approval on or before such date, Seller or Purchaser may terminate the Purchase Agreement in which event the ▇▇▇▇▇▇▇ Money shall be returned to Purchaser and the parties shall have no further rights or obligations under the Purchase Agreement except for those which expressly survive termination.
Loan Assumption Approval. As used herein, the term "Loan Assumption Approval" shall mean:
Loan Assumption Approval. Buyer shall have obtained approval for assumption of the Existing Mortgage on terms that are reasonably acceptable to Buyer which are, in the aggregate, substantially similar to the current terms of the Existing Mortgage, other than interest rates, which shall reflect current market rates and Buyer’s credit profile and which shall include the Mortgage Release.
Loan Assumption Approval. Existing Lender’s approval of the Loan Assumption.
Loan Assumption Approval. Seller shall have obtained the approval of Purchaser’s assumption of the obligations and liabilities of each Seller under the Existing Loans from each of the applicable lenders, subject to those conditions, fees, modifications to the permitted transfer provisions (which revised permitted transfer provisions shall also incorporate all of Purchaser’s permitted transfer provisions in that certain Assumption Agreement dated April 24, 2014 by U.S. Bank National Association, as Trustee for the registered holders of ▇.▇. ▇▇▇▇▇▇ ▇▇▇▇▇ Commercial Mortgage Securities Trust 2012-C6, Commercial Mortgage Pass-Through Certificates Series 2012-C6, as lender, Oak Brook Kensington, L.L.C., as borrower, Inland Private Capital Corporation, as guarantor, The GC Lease (Oak Brook) Investors, LLC, as buyer, and ▇▇▇▇▇▇▇ Capital Essential Asset REIT Inc., as the new guarantor, except that Purchaser shall also be entitled to the following additional permitted transfers: (a) Purchaser shall have the right, without the consent of the applicable lender, to contribute the mortgaged property to another REIT [so long as board control of the target REIT is vested in the board of ▇▇▇▇▇▇▇ Capital Essential Asset REIT, Inc., a Maryland corporation (“▇▇▇▇▇▇▇ REIT I”) at the time of contribution] provided the contribution transaction is being done in contemplation of a future merger, (b) the board of ▇▇▇▇▇▇▇ REIT I has the right to terminate the REIT advisor at any time, subject to installing an approved replacement advisor within a sixty (60) day period; Purchaser would not be obligated to pay an assumption fee in the event the REIT advisor is changing; Purchaser would not be obligated to pay any assumption fee in the event the REIT advisor or its parent are taken public), or other requirements (including without limitation, any replacement guarantor other than ▇▇▇▇▇▇▇ REIT I), which are acceptable to Purchaser in its sole discretion (it being understood that Purchaser shall approve an assumption fee of one percent (1%) or less of the outstanding loan amount and Purchaser shall not request any material modifications to the existing loan documents, other than modification to the existing permitted transfer provisions). The Purchaser shall cooperate with Seller and negotiate in good faith in connection with obtaining the approvals from each of the applicable lenders described hereinabove. An additional condition precedent to the obligation of Purchaser to close is that each of the existing lend...
Loan Assumption Approval. By either Party pursuant to, and in accordance with, its rights under Section 2.6.7.