Defeasance and Mortgaged Property Substitution Sample Clauses

The Defeasance and Mortgaged Property Substitution clause allows a borrower to release the original mortgaged property from a loan by substituting it with other qualifying collateral, typically securities or alternative real estate. In practice, this process involves the borrower meeting specific conditions, such as providing substitute assets of equal or greater value and obtaining lender approval. The core function of this clause is to provide flexibility for borrowers to manage or dispose of their property while ensuring the lender’s security interest remains protected, thereby facilitating property transactions without requiring full loan repayment.
Defeasance and Mortgaged Property Substitution. Whenever, in accordance with the Mortgage Documents or as otherwise permitted hereunder, a Borrower substitutes a new lien on one or more Mortgaged Properties or other collateral for the lien previously delivered on one or more different Mortgaged Properties, the documents required under the related Servicing Contract or the Guide with respect to the lien on the substituted Mortgaged Properties or other collateral will be delivered to and held by the Trustee or a Custodian in accordance with the terms of the Servicing Contract or the Guide. In the case of Defeasance by delivery of Defeasance Securities consisting of certificated Defeasance Securities, the certificates representing the securities will be pledged to the Trustee or Custodian. In the case of Defeasance by delivery of Defeasance Securities consisting of uncertificated Defeasance Securities, the securities will be held in the name of or for the benefit of the Trustee.
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Defeasance and Mortgaged Property Substitution. Whenever, in accordance‌ with the Mortgage Documents, a Borrower substitutes a new lien on one or more Mortgaged Properties or other collateral for the lien previously delivered on one or more different Mortgaged Properties, the documents described in paragraph (b) of Subsection 3.4(1) with respect to the lien on the substituted Mortgaged Properties or other collateral will be delivered to and held by the Trustee or a Custodian in accordance with the terms of that paragraph. In the case of Defeasance by delivery of Defeasance Securities consisting of certificated Defeasance Securities, the certificates representing the securities will be pledged to the Trustee or Custodian. In the case of Defeasance by delivery of Defeasance Securities consisting of uncertificated Defeasance Securities, the securities will be held in the name of or for the benefit of the Trustee.
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Related to Defeasance and Mortgaged Property Substitution

  • Condition of Mortgaged Property Except as Borrower may have disclosed to Lender in writing in connection with the issuance of the Commitment Letter, the Mortgaged Property has not been damaged by fire, water, wind or other cause of loss, or any previous damage to the Mortgaged Property has been fully restored.

  • Mortgaged Property The real property securing repayment of the debt evidenced by a Mortgage Note.

  • Mortgaged Property Undamaged The Mortgaged Property is undamaged by waste, fire, earthquake or earth movement, windstorm, flood, tornado or other casualty so as to affect adversely the value of the Mortgaged Property as security for the Mortgage Loan or the use for which the premises were intended;

  • Operation of Mortgaged Property Hold, lease, develop, manage, operate or otherwise use the Mortgaged Property upon such terms and conditions as Mortgagee may deem reasonable under the circumstances (making such repairs, alterations, additions and improvements and taking other actions, from time to time, as Mortgagee deems necessary or desirable), and apply all Rents and other amounts collected by Mortgagee in connection therewith in accordance with the provisions of Section 5.7.

  • Location and Type of Mortgaged Property The Mortgaged Property is a fee simple property located in the state identified in the related Mortgage Loan Schedule, except that with respect to real property located in jurisdictions in which the use of leasehold estates for residential properties is a widely-accepted practice, the Mortgaged Property may be a leasehold estate, and consists of a single parcel of real property with a detached single family residence erected thereon, or a two- to four-family dwelling, or an individual residential condominium unit in a condominium project, or an individual unit in a planned unit development and that no residence or dwelling is a mobile home; provided, however, that any condominium unit or planned unit development shall not fall within any of the "Ineligible Projects" of part XII, Section 102 of the Fannie Mae Selling Guide and shall conform with the Underwriting Guidel▇▇▇▇. In the case of any Mortgaged Properties that are manufactured homes (a "Manufactured Home Mortgage Loans"), (i) such Manufactured Home Mortgage Loan conforms with the applicable Fannie Mae or Freddie Mac requirements regarding mortgage loans related ▇▇ ▇▇n▇▇▇ctur▇▇ ▇▇▇▇lings, (ii) the related manufactured dwelling is permanently affixed to the land, (iii) the related manufactured dwelling and the related land are subject to a Mortgage properly filed in the appropriate public recording office and naming Seller as mortgagee, (iv) the applicable laws of the jurisdiction in which the related Mortgaged Property is located will deem the manufactured dwelling located on such Mortgaged Property to be a part of the real property on which such dwelling is located, and (v) such Manufactured Home Mortgage Loan is (x) a qualified mortgage under Section 860G(a)(3) of the Internal Revenue Code of 1986, as amended, and (y) secured by manufactured housing treated as a single family residence under Section 25(e)(10) of the Code. As of the date of origination, no portion of the Mortgaged Property was used for commercial purposes, and since the date of origination, no portion of the Mortgaged Property has been used for commercial purposes; provided, that Mortgaged Properties which contain a home office shall not be considered as being used for commercial purposes as long as the Mortgaged Property has not been altered for commercial purposes and is not storing any chemicals or raw materials other than those commonly used for homeowner repair, maintenance and/or household purposes;