Equity Maintenance Requirement definition
Equity Maintenance Requirement means the requirement that Borrower maintain a minimum capital contribution invested in the Project of at least: (i) _____________ (which amount is equal to 15% of the Property’s appraised, “as completed” value, as determined by Administrative Agent)5, plus (ii) any additional capital required pursuant to Section 2.2(d)(ii) hereof, such that the Loan will not constitute an “HVCRE ADC loan” pursuant to Section 51 of The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.). For purposes of this definition, “capital” shall mean cash, unencumbered readily marketable assets, paid development expenses out-of-pocket, or contributed real property or improvements.
Equity Maintenance Requirement means the requirement that Borrower maintain a minimum capital contribution invested in the Project of at least _____________(which amount is equal to 15% of the Property’s appraised, “as completed” value, as determined by Administrative Agent)8, such that the Loan will not constitute an “HVCRE ADC loan” pursuant to Section 51 of The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.). For purposes of this definition, “capital” shall mean cash, unencumbered readily marketable assets, paid development expenses out-of-pocket, or contributed real property or improvements.]9
Examples of Equity Maintenance Requirement in a sentence
Borrower shall satisfy the Equity Maintenance Requirement at all times during the term of the Loan, until such time as the Required Lenders in their sole discretion may determine that the Required Lenders are permitted to reclassify the Loan as a non-HVCRE ADC loan pursuant to Section 51 of The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.).
Borrower shall satisfy the Equity Maintenance Requirement at all times during the term of the Loan, until such time as Lender in its sole discretion may determine that Lender is permitted to reclassify the Loan as a non-HVCRE ADC loan pursuant to Section 51 of The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.).