TIC ASSUMPTION Sample Clauses
The TIC Assumption clause establishes that each party in a joint ownership arrangement holds their interest as tenants in common (TIC), rather than as joint tenants. This means that each owner has a distinct, divisible share in the property, which can be sold, transferred, or bequeathed independently of the other owners. For example, if one party wishes to sell their share or passes away, their interest does not automatically transfer to the other owners but instead follows their will or estate plan. The core function of this clause is to clarify the nature of ownership and succession rights, thereby preventing automatic survivorship and ensuring each party's share is separately managed and transferable.
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TIC ASSUMPTION. Notwithstanding the foregoing provisions of this PARAGRAPH 15, Lender shall not withhold its consent to a transfer of an undivided tenant-in-common interest in the Property and partial assumption of this Loan (hereinafter, a "TIC ASSUMPTION"), provided that each of the following terms and conditions are satisfied:
(i) Borrower is in compliance with all terms and conditions of the Loan Documents and no Event of Default has occurred and is then continuing hereunder or under any of the other Loan Documents and the proposed transferee ("TRANSFEREE") agrees to continue to comply with and be bound by all provisions of the Loan Documents;
(ii) Borrower gives Lender written notice of the terms of such prospective TIC Assumption not less than thirty (30) days before the date on which such TIC Assumption is scheduled to take place and, concurrently therewith, gives Lender all such information concerning Transferee as Lender reasonably requests;
(iii) Borrower shall pay Lender (A) in connection with such proposed TIC Assumption, all reasonable out-of-pocket costs and expenses, including, without limitation, reasonable attorneys' fees incurred by Lender and any rating agency approval fees (whether such transfer is approved or rejected) plus (B) concurrently with the closing of such TIC Assumption, a nonrefundable assumption fee in an amount equal to the greater of (A) $5,000.00, or (B) 1% of such Transferee's proportionate share of the Principal Amount (based on such Transferee's tenancy in common interest in the Property), provided, however, with respect to TIC Assumptions closed on or before the earlier of the date that is one hundred eighty (180) days of the date hereof and the maturity date of the Concurrent Subordinate Indebtedness, such nonrefundable assumption fee shall equal the lesser of (A) $1,000.00 per Transferee, or (B) $7,000;
(iv) Transferee executes and delivers such documents and agreements as Lender shall reasonably require to evidence and effectuate said assumption and delivers such legal opinions as Lender may reasonably require, including, without limitation, hazard insurance endorsements or certificates and other similar materials as Lender may deem necessary at the time of the TIC Assumption, all in form and substance satisfactory to Lender, including, without limitation, an endorsement or endorsements to Lender's loan title insurance policy insuring the lien of this Mortgage, extending the effective date of such policy to the date of execution ...