Prepayment Release of Property Clause Samples

Prepayment Release of Property. (a) Any prepayment of any portion of the Loan advanced hereunder as a Mezzanine Loan shall be governed by the provisions of Section 2.6 of the Mezzanine Loan Agreement. (b) Borrower shall not be permitted to prepay all or any portion of the Loan prior to January 1, 1999. Thereafter Borrower shall have the right exercisable at any time and form time to time to prepay an amount not less than $1,000,000 without premium or penalty provided, however, Borrower shall provide to Lender not less than ten (10) days prior written notice of such intent to prepay which notice shall specify the date on which prepayment is to be made (a "PREPAYMENT DATE") which date shall be a Payment Date. In addition to the amount of such prepayment, Borrower shall also pay to Lender, together with such prepayment, all interest accrued and unpaid with respect to such prepayment and the portion of the Exit Fee and Additional Interest applicable to the amount prepaid. Each notice of prepayment of the Loan shall specify (i) the applicable Prepayment Date, (ii) the amount of such prepayment and the amount of interest thereon to be paid in connection therewith and (iii) any Individual Property that is to be released from the Lien of the mortgage therein (and related Loan Documents) in connection with such prepayment. If, after the Debt has been accelerated due to a Default by Borrower, including, without limitation, any attempt by Borrower to prepay the Debt at a time when prepayment is prohibited hereunder, Borrower shall tender an amount sufficient to pay the entire accelerated Debt, such tender shall be deemed a voluntary prepayment and an attempt to evade the restrictions on prepayment set forth herein, and Borrower shall, in addition to all other amounts then payable hereunder, be required to pay Lender a Prepayment Fee equal to one percent (1%) of the amount of principal being repaid.