Common use of LTV Test Clause in Contracts

LTV Test. Notwithstanding any other provision in this Section 7.03(c), if the Land Release will occur following Securitization, the Land Release will be permitted only if one of the following is satisfied: (A) Immediately after the Land Release, the loan-to-value ratio of the Mortgaged Property (taking into account only the related land and buildings and not any personal property or going-concern value) is less than or equal to 125%, as determined by Lender using any commercially reasonable valuation method permitted in connection with a Securitization. (B) At the time of the Land Release, Borrower pays down the principal balance of the Loan by a minimum of one of the following amounts: (1) If the Release Parcel is sold, the net proceeds of an arm’s length sale of the Release Parcel to an unrelated Person. (2) The fair market value of the Release Parcel at the time of the Land Release. (3) An amount such that the loan-to-value ratio of the Loan (as determined by Lender) does not increase after the Land Release. (C) In connection with the Land Release, Lender receives an opinion of counsel satisfactory to Lender and the Rating Agencies (if applicable) that the Securitization will not fail to maintain its status as a REMIC trust as a result of the Land Release.