FCC Proudreed Properties 2005 HSBC SG CORPORATE ...
FCC Proudreed Properties 2005 HSBC SG CORPORATE ...
FCC Proudreed Properties 2005 HSBC SG CORPORATE ...
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LTV Ratio:<br />
Security:<br />
Insurance:<br />
Mortgage Loan Agreements – Financial Covenants’’<br />
and ‘‘Resources available to the Borrowers and the<br />
Issuer – Borrower Accounts – Cash Trap Accounts’’<br />
below.<br />
Each Borrower has undertaken to ensure that, during<br />
the Second Reference Period, the LTV Ratio in<br />
respect of the relevant Borrower Group is not<br />
greater than 70 per cent.<br />
The LTV Ratio will be tested on behalf of each<br />
Borrower Group on each Loan Calculation Date on<br />
the basis of the Market Value of the relevant Secured<br />
<strong>Properties</strong> as determined in the most recent Valuation<br />
Reports.<br />
Failure by a Borrower Group to maintain an LTV<br />
Ratio at or below 70 per cent. will not give rise to a<br />
Loan Event of Default but, instead, the monies not<br />
required to pay interest and other prior ranking<br />
expenses of the Borrowers in that Borrower Group<br />
will no longer be distributed to the Borrower but will<br />
be transferred to the Cash Trap Account provided<br />
that as long as both the Historical ICR and the<br />
Projected ICR are both greater than 2.0:1, the amount<br />
required to be transferred to the Cash Trap Account<br />
shall be limited to the amount necessary to ensure<br />
that the LTV Ratio, as recalculated to reflect the<br />
cash deposit, would be at or below 70 per cent.<br />
For further details of the LTV Ratio see the section<br />
entitled ‘‘Summary of Principal Documents –<br />
Commercial Mortgage Loan Agreements – LTV<br />
Ratio’’<br />
The Lenders will benefit from security interests for<br />
the obligations of the Borrowers under the<br />
Commercial Mortgage Loans including inter alia,<br />
first ranking mortgages over the Property Portfolio<br />
of the relevant Borrower, a pledge over the shares of<br />
each Borrower, a charge over each of the Borrower<br />
Accounts and an assignment of the related rental<br />
income as more fully described in the section entitled<br />
‘‘Summary of Principal Documents – The Related<br />
Rights’’ below.<br />
Each Borrower has undertaken to maintain insurance<br />
on all of its properties including its Secured Property<br />
on a full reinstatement value basis, including not less<br />
than two years’ loss of rent on all Occupational<br />
Leases together with third party liability insurance<br />
and insurance against subsidence and (to the extent<br />
available) acts of terrorism and to procure, in relation<br />
to Secured <strong>Properties</strong>, that the Issuer represented by<br />
the Management Company is named as loss payee<br />
on all relevant insurance policies.<br />
All insurances required under a Commercial<br />
Mortgage Loan Agreement must be with an<br />
insurance company or underwriter that has a long<br />
term credit rating of at least A (or better) by Fitch<br />
and A (or better) by S&P.<br />
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