Refinancing; Additional Liens Clause Samples
The "Refinancing; Additional Liens" clause governs the borrower's ability to refinance existing debt and the conditions under which new liens may be placed on the secured assets. Typically, this clause outlines the circumstances in which the borrower can replace or restructure their current loan, and sets limitations or requirements for granting additional security interests to other creditors. For example, it may require lender consent before refinancing or prohibit new liens unless certain financial thresholds are met. The core function of this clause is to protect the lender's priority and security interest in the collateral, preventing the borrower from undermining the lender's position through subsequent financing arrangements.
Refinancing; Additional Liens. The Affordable Owner shall not refinance any existing deed of trust, or place a new lien against the Affordable Unit, unless: (i) District has had at least ten (10) Business Days to review all loan documentation prior to the selected date of closing, (ii) they have obtained the prior written approval and confirmation of the Maximum Resale Price by the District, and (iii) the amount being secured individually or in the aggregate with all other existing debts secured by the Affordable Unit does not exceed the Maximum Resale Price.