FCC Proudreed Properties 2005 HSBC SG CORPORATE ...

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