Procedure for Making a Securitized Loan. Borrower's request to Servicer for a Securitized Loan (i) shall be in writing, which writing shall specify (a) the requested original principal amount of the Securitized Loan, which amount shall be greater than or equal to $5,000,000, (b) whether Borrower has selected Lender’s then current early rate lock or standard delivery option, and (c) the payment or prepayment of the Borrower’s Obligations, and (ii) shall be accompanied by (a) any fees then due and owing under the Securitized Product for the Collateral Pool Property, and (b) the Underwriting Materials. Following receipt of all of the items specified in (i) and (ii) of the previous sentence, Lender shall use its best efforts to consent to Borrower’s request within 60 days of such Notice, provided that (i) at the time of such request no Event of Default or Potential Default exists, (ii) the Securitized Loan shall be made in accordance with, and subject to, the terms and conditions of a Securitized Product, (iii) after giving effect to such release, no Event of Default or Potential Default shall exist, (iv) the representations and warranties of Section 7 shall be true and correct as of the date of Borrower’s request for such Securitized Loan and on the date that such Securitized Loan is funded by Lender, (v) Borrower shall provide evidence to Lender of title insurance in form and substance acceptable to Lender and in the face amount of the Securitized Loan, (vi) the proposed Borrower under the Securitized Loan shall execute and deliver such documents as Lender, in its discretion, may request in order to evidence the making of the Securitized Loan and in order to grant Lender a first priority Lien on the real and personal property constituting the Securitized Loan Collateral subject, in each case, to any Permitted Exceptions, and (vii) Borrower shall pay Lender any fees then due and owing under the Securitized Product. Thereafter, Servicer shall use commercially reasonable efforts to consummate the Securitized Loan within 30 days after its consent to Borrower’s request thereof. Notwithstanding the foregoing, in the event that Borrower elects Lender’s then current early rate lock delivery option, Lender shall use its best efforts, subject to Borrower’s timely compliance with Lender’s requests, to lock the interest rate for the requested Securitized Loan within 7 Business Days of Borrower’s Notice hereunder. Any Securitized Loan granted pursuant to the foregoing provisions shall not reduce the Sponsor Borrower Loan hereunder unless Sponsor elects to reduce the Sponsor Borrower Loan pursuant to Section 2.4.1. Simultaneously with the closing of the Securitized Loan, Lender shall release the Lien granted hereunder on the Collateral. Notwithstanding the foregoing, at any time prior to the release and consummation of the Securitized Loan, Borrower may by written Notice revoke its request for a release and a Securitized Loan pursuant to this Section 3.3.2; provided, however, that Borrower shall reimburse Lender and Servicer respectively, for Lender’s and Servicer’s costs and expenses, including breakage costs and Attorneys’ Fees and Costs and any other fees due under this Agreement, that Lender or Servicer incur in connection with such proposed release and Securitized Loan financing prior to Borrower’s revocation.
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Sources: Credit Agreement (Preferred Apartment Communities Inc), Credit Agreement (Preferred Apartment Communities Inc)
Procedure for Making a Securitized Loan. Borrower's Borrower may request that Lender cause Servicer to Servicer for make a Securitized Loan to Borrower, which request (i) shall be in writing, which writing shall specify (a) each Collateral Pool Property that will constitute the Securitized Loan Collateral, (b) the requested original principal amount of the Securitized Loan, which amount shall be greater than or equal to $5,000,00010,000,000, (bc) the related reduction in the Maximum Facility Available, (d) whether Borrower has selected Lender’s then current early rate lock or standard delivery option, and (ce) the any payment or prepayment of the Borrower’s Obligationsa Borrowing Tranche, and (ii) shall be accompanied by (a) any fees then due and owing under the Securitized Product for the each Collateral Pool PropertyProperty proposed by Borrower to be subject to the Securitized Loan, and (b) the Underwriting Materials. Following receipt of all of the items specified in (i) and (ii) of the previous sentence, Lender shall use its best efforts to consent to Borrower’s request within 60 45 days of such Notice, provided that (i) at the time of such request no Event of Default or Potential Default exists, (ii) the Securitized Loan shall be made in accordance with, and subject to, the terms and conditions of a Securitized Product, (iii) after giving effect to such release, no Event of Default or Potential Default shall exist, (iv) the representations and warranties of Section 7 shall be true and correct as of the date of Borrower’s request for such Securitized Loan and on the date that such Securitized Loan is funded by Lender, (v) Borrower shall provide evidence to Lender of title insurance will be in form and substance acceptable to Lender and compliance with all provisions hereof, including the Sublimits set forth in the face amount of the Securitized LoanSection 2.1.4, (vi) the proposed Borrower under the further provided that if any release occasioned by a Securitized Loan would otherwise cause Borrower to be in non-compliance with the Sublimits, Borrower shall execute have the opportunity to cure the same, prior to or simultaneously with the release and deliver such documents as Lender, in its discretion, may request in order to evidence the making consummation of the Securitized Loan and in order to grant Lender a first priority Lien on the real and personal property constituting the Securitized Loan Collateral subject, in each case, to any Permitted Exceptions, and (vii) Borrower shall pay Lender any fees then due and owing under the Securitized Product. Thereafter, Servicer shall use commercially reasonable efforts to consummate the Securitized Loan within 30 days after its consent to Borrower’s request thereof. Notwithstanding the foregoing, in the event that Borrower elects Lender’s then current early rate lock delivery option, Lender shall use its best efforts, subject to Borrower’s timely compliance with Lender’s requests, to lock the interest rate for the requested Securitized Loan within 7 Business Days of Borrower’s Notice hereunder. Any Securitized Loan granted pursuant to the foregoing provisions shall not reduce the Sponsor Borrower Loan hereunder unless Sponsor elects to reduce the Sponsor Borrower Loan pursuant to Section 2.4.1. Simultaneously accordance with the closing provisions of the Securitized Loan, Lender shall release the Lien granted hereunder on the Collateral. Notwithstanding the foregoing, at any time prior to the release and consummation of the Securitized Loan, Borrower may by written Notice revoke its request for a release and a Securitized Loan pursuant to this Section 3.3.2; provided, however, that Borrower shall reimburse Lender and Servicer respectively, for Lender’s and Servicer’s costs and expenses, including breakage costs and Attorneys’ Fees and Costs and any other fees due under this Agreement, that Lender or Servicer incur in connection with such proposed release and Securitized Loan financing prior to Borrower’s revocation.Section
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