Supplemental Financing Sample Clauses

Supplemental Financing. (a) This Section will apply only if at the time of any application referred to in Section 11.11(b), ▇▇▇▇▇▇▇ Mac has in effect a product described in its Multifamily Seller/Servicer Guide under which it purchases supplemental mortgages on multifamily properties that meet specified criteria (“Supplemental Mortgage Product”). For purposes of this Section 11.11 only, the term “▇▇▇▇▇▇▇ Mac” will include any affiliate or subsidiary of ▇▇▇▇▇▇▇ Mac. (b) After the first anniversary of the date of the most recently incurred Senior Indebtedness, ▇▇▇▇▇▇▇ Mac will consider an application from an originating lender that is generally approved by ▇▇▇▇▇▇▇ Mac to sell mortgages to ▇▇▇▇▇▇▇ Mac under the Supplemental Mortgage Product (“Approved Seller/Servicer”) for the purchase by ▇▇▇▇▇▇▇ Mac of a proposed indebtedness of Borrower to the Approved Seller/Servicer to be secured by one or more Supplemental Instruments on the Mortgaged Property. ▇▇▇▇▇▇▇ Mac will purchase each Supplemental Loan secured by the Mortgaged Property if each of the following conditions is satisfied: (i) At the time of the proposed Supplemental Loan, no Event of Default may have occurred and be continuing and no event or condition may have occurred and be continuing that, with the giving of Notice or the passage of time, or both, would become an Event of Default. (ii) Borrower and the Mortgaged Property must be acceptable to ▇▇▇▇▇▇▇ Mac under its Supplemental Mortgage Product. (iii) New loan documents must be entered into to reflect each Supplemental Loan, such documents to be acceptable to ▇▇▇▇▇▇▇ Mac in its discretion. (iv) No Supplemental Loan may cause the combined debt service coverage ratio of the Mortgaged Property after the making of that Supplemental Loan to be less than the Minimum DSCR. As used in this Section, the term “combined debt service coverage ratio” means, with respect to the Mortgaged Property, the ratio of: (A) the annual net operating income from the operations of the Mortgaged Property at the time of the proposed Supplemental Loan, (B) the aggregate of the annual principal and interest payable on all of the following: (I) the Indebtedness under this Loan Agreement (using a 30 year amortization schedule), (II) any “Indebtedness” as defined in any security instruments recorded against the Mortgaged Property (using a 30 year amortization schedule for any Supplemental Loans), and (III) the proposed “Indebtedness” for any Supplemental Loan (using a 30 year amortization schedule). As u...