Common use of LOAN PAYDOWN Clause in Contracts

LOAN PAYDOWN. In addition to the guarantee of Delinquencies and the guarantee of Loss, as described above, Guarantor hereby unconditionally and irrevocably guarantees to GMAC-CM that, in the event that on or before sixty (60) days prior to (a) the Maturity Date of each Construction Loan or (b) the first Maturity Date of each Extended Construction Loan, as applicable, the related Mortgaged Property has not achieved a minimum 1.10 DSCR, then, in such event, Guarantor, not earlier than sixty (60) days but at least thirty (30) days prior to each such Maturity Date shall have either (i) paid down, up to the then Maximum Amount, the Loan Amount for such particular Mortgage Loan in order to achieve a 1.10 DSCR or (ii) entered into an agreement, in the form attached to and made a part of the Participation Agreement, whereby Guarantor agrees to become fully liable for the payment of all principal, interest, net cash flow, tax and insurance escrows, and other sums payable monthly on account of such Mortgage Loan. Sums payable by Guarantor pursuant to clause (ii)of the preceding sentence shall be applied to the purchase by Guarantor of a subordinated participation in the Mortgage Loan, in accordance with the terms and provisions of the Participation Agreement, but shall not reduce the Maximum Amount. Guarantor may at any time revoke its agreement under such clause (ii) above and terminate its obligations thereunder by paying the sum then owing, if any, under clause (i) above, and such agreement will automatically terminate when the Mortgage Loan achieves a 1.10 DSCR or when the Maximum Amount for such loan equals zero (Guarantor acknowledging, however, that payments under clause (ii) above shall not reduce the Maximum Amount). GMAC-CM will continue its customary efforts to collect all interest and other sums coming due from the Mortgagor and will promptly credit to Guarantor all sums so collected.

LOAN PAYDOWN. In addition to the guarantee of Delinquencies and the guarantee of Loss, as described above, Guarantor hereby unconditionally and irrevocably irrevocable guarantees to GMAC-CM GMACCM that, in the event that on or before sixty (60) days prior to (a) the Maturity Date of each Construction Loan or (b) the first Maturity Date of each Extended Construction Loan, as applicable, the related Mortgaged Property has not achieved a minimum 1.10 DSCR, then, in such event, Guarantor, not earlier than sixty (60) days but at least thirty (30) days prior to each such Maturity Date shall have either (i) paid down, up to the then Maximum Amount, the Loan Amount for such particular Mortgage Loan in order to achieve a 1.10 DSCR or (ii) entered into an agreement, in the form attached to and made a part of the Participation Agreement, whereby Guarantor agrees to become fully liable for the payment of all principal, interest, net cash flow, tax and insurance escrows, and other sums payable monthly on account of such Mortgage Loan. Sums payable by Guarantor pursuant to clause (ii)of ii) of the preceding sentence shall be applied to the purchase by Guarantor of a subordinated participation in the Mortgage Loan, in accordance with the terms and provisions of the Participation Agreement, but shall not reduce the Maximum Amount. Guarantor may at any time revoke its agreement under such clause (ii) above and terminate its obligations thereunder by paying the sum then owing, if any, under clause (i) above, and such agreement will automatically terminate when the Mortgage Loan achieves a 1.10 DSCR or when the Maximum Amount for such loan equals zero (Guarantor acknowledging, however, that payments under clause (ii) above shall not reduce the Maximum Amount). GMAC-CM GMACCM will continue its customary efforts to collect all interest and other sums coming due from the Mortgagor and will promptly credit to Guarantor all sums so collected.