Mortgageability Value Amount definition
Mortgageability Value Amount means, with respect to any Borrowing Base Asset and as of any date of determination, the maximum principal amount of a hypothetical mortgage loan that would be available to be borrowed against such Borrowing Base Asset assuming (i) an annual interest rate equal to the greater of (a) six and one-half percent (6.50%) and (b) the then-applicable Treasury Rate plus two and one-half percent (2.50%), (ii) a 30-year amortization schedule and (iii) a debt service coverage ratio on such loan of (A) with respect to each Ensign Asset which is added to the Borrowing Base on the Closing Date, 1.30 to 1.00; (B) with respect to each Ensign Asset which is added to the Borrowing Base after the Closing Date and has a Rent Coverage Ratio of not less than 1.75 to 1.00 at the time such asset is initially added as a Borrowing Base Asset, 1.30 to 1.00; and (C) with respect to each other Real Property Asset, 1.40 to 1.00. For purposes of this definition, the income used for the debt service coverage calculation shall be (x) for any Qualifying Multi-Tenant Building or Qualifying Subsidiary Operated Facility, the Designation Date Property NOI and (y) for any other Borrowing Base Asset, the Net Revenues for such Borrowing Base Asset, in each case under this clause (y) for the most recently completed four (4) Fiscal Quarter period for which financial statements are, or are required to have been, delivered to the Administrative Agent pursuant to Section 5.1(a) or 5.1(b) (or for any four (4) Fiscal Quarter period containing a Fiscal Quarter ending prior to September 30, 2104, the amount for each such Fiscal Quarter determined in accordance with the definition of Net Revenues or Property NOI, as applicable).