pocket mortgage definition
pocket mortgage means a mortgage, deed of trust, deed to secure debt or other similar security instrument given to a lender for the purpose of securing a construction loan for property located in any state with mortgage taxes, which (x) is not recorded in the public records at the time of closing, but is delivered to an escrow agent with instructions that it may be recorded in the public records or such escrow agent upon the occurrence of an event of default thereunder, under any loan agreement executed in connection therewith or under any note or notes or other obligations secured by such mortgage, deed of trust, deed to secure debt or other such security instrument, and guarantor's failure to purchase the loan evidenced or secured thereby within the time, if any, permitted for such purchase by the terms of such pocket mortgage prior to the holder thereof having the right to exercise its remedies, and (y) after such recording will constitute a valid and enforceable lien on real property; provided further, the maximum amount of Indebtedness subject to pocket mortgages which may be excluded from the $100,000,000 limitation set forth herein shall not exceed $200,000,000.00 at any one time."
pocket mortgage means those certain deeds of trust or mortgages granted against the Borrowing Base Properties (as may be substituted or supplemented in the future) which Lender has agreed to hold in escrow as of the Closing Date and may record at any time following the occurrence of an Event of Default (i.e., prior to an Event of Default, the same are not operative), provided that if (i) if the Event of Default giving rise to recordation of any Pocket Mortgage was not an Event of Default under Section 10.1(a) or Section 10.1(b)(i) (as to Section 9.1 only) hereof and (ii) the Borrower has fully cured such Event of Default, then the Borrower may request the release of such Pocket Mortgage within 15 Business Days following Administrative Agent’s receipt of all quarterly reporting certificates required to be delivered pursuant to this Agreement and Administrative Agent shall deliver a release for any recorded Pocket Mortgage if such certificates evidence the Borrower’s compliance with all of the covenants referenced in such certificates. In addition, if (i) the Event of Default giving rise to recordation of any Pocket Mortgage was relating to an Event of Default under Section 10.1(b)(i) as to Section 9.1 only and (ii) the Borrower has fully cured such Event of Default, then the Borrower may request the release of such Pocket Mortgage within 15 Business Days following the Administrative Agent’s receipt of all quarterly reporting certificates required to be delivered pursuant to this Agreement for two (2) quarterly reporting cycles and Administrative Agent shall deliver a released for any recorded Pocket Mortgage if all of such certificates for both quarterly reporting cycles evidence the Borrower’s compliance with all of the covenants required in all such certificates.