Step-Down Loan definition
Step-Down Loan means an obligation or security which by the terms of the applicable Related Contracts provides for a decrease in the per annum interest rate on such obligation or security (other than by reason of any change in the applicable index or benchmark rate used to determine such interest rate) or in the spread over the applicable index or benchmark rate, solely as a function of the passage of time; provided that an obligation or security providing for payment of a constant rate of interest or in the spread over the applicable index or benchmark rate at all times after the date of acquisition by the Borrower shall not constitute a Step-Down Loan.
Step-Down Loan. A loan which by the terms of the related Underlying Instruments provides for a decrease in the per annum interest rate on such loan (other than by reason of any change in the applicable index or benchmark rate used to determine such interest rate) or in the spread over the applicable index or benchmark rate, solely as a function of the passage of time (and for the avoidance of doubt, not based upon a change in any leverage or financial performance measurement); provided that, a loan providing for payment of a constant rate of interest or a constant spread over the applicable index or benchmark rate on at least a quarterly basis at a rate of not less than 4.00% per annum in excess of the applicable index or benchmark rate (or, in the case of a fixed rate loan, not less than 5.00% per annum) at all times after the date of the acquisition by the Borrower shall not constitute a Step-Down Loan.
Step-Down Loan. Any Loan which by the terms of its underlying instruments provides for a decrease in its per annum interest rate (other than by reason of a change in the applicable index or benchmark rate) or in the spread over its applicable index or benchmark rate solely due to the passage of time; provided that a Loan that must pay a constant rate of interest at all times after the date of its acquisition by a Borrower Party is not a Step Down Loan.
Examples of Step-Down Loan in a sentence
Notwithstanding anything in this Agreement to the contrary, no advance shall be made or permitted hereunder which would result in the unpaid principal balance of the Note, including any advances made under the Security Documents hereunder, exceeding in the aggregate at any one time the lesser of: (i) the Borrowing Base, or (ii) the Initial Loan Limit Amount or the Step-Down Loan Limit Amount, as applicable.
More Definitions of Step-Down Loan
Step-Down Loan. A Mortgage Loan as to which the related Mortgage Note provides, as of the Closing Date, for a one-time step-down in the Mortgage Rate within the 12- month period following the Cut-off Date.
Step-Down Loan. ” means an obligation or security which by the terms of the applicable Related Contracts provides for a decrease in the per annum interest rate on such obligation or security (other than by reason of any change in the applicable index or benchmark rate used to determine such interest rate) or in the spread over the applicable index or benchmark rate, solely as a function of the passage of time; provided that an obligation or security providing for payment of a constant rate of interest or in the spread over the applicable index or benchmark rate at all times after the date of acquisition by the Borrower shall not constitute a Step-Down Loan.