Black out sheet in the Collateral Agreement

Aug 6th, 2022
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Collateral Rate means, for any Interest Period, a per annum rate equal to LIBOR for such Interest Period plus 1%. Sample 1Sample 2. Collateral Rate means the rate designated as such in the Loan Agreement; provided, that for purposes of this Supplement, the Collateral Rate shall not exceed LIBOR plus 1% per annum.
This gives a Borrower the right to replace a single Lender in a Syndicate with a new Lender under certain circumstances. Examples of such circumstances include a Lenders failure to fund a loan or providing a dissenting vote on an amendment where the majority of the Lenders have approved.
Federal Prohibition 83, which establishes [t]hat no association shall make any loan or discount on the security of the shares of its own capital stock. The Supreme Court declared that the above language expressly prohibits lending with bank-stock as collateral in First Nat. Bank v. Lanier, 78 U.S. 369 (1870).
Typically, the size of the loan provided by a lenderknown as the borrowing basewill range from 70 to 90% of its collateral value. For instance, in the case of mortgage loans, lenders have traditionally offered 80% financing, which means that the borrower will need to provide a 20% down payment.
What Is the Collateral Coverage Ratio? The collateral coverage ratio is the percentage of a loan thats secured by a discounted asset. This ratio is calculated by the collateral coverage ratio formula, which is the discounted collateral value divided by the total loan amount.
A collateral ratio is the ratio between the Dollar value of the collateral in your position and its debt in LUSD.
A SunGard clause reduces the number of conditions precedent to funding the loan, thereby providing more certainty to the seller that the financing will be available and the acquisition will close. They are especially common in a competitive market.
For Example: Loan Value = $800,000. Collateral Value = $1,000,000. Prior Liens = $200,000. Collateral LTV = 80% = $800,000 / $1,000,000. Combined LTV = 100% = ($800,000 + $200,000) / $1,000,000. Recovery Factor for Collateral = 0.35. Effective Value = $428,571 = $1,000,000 - ($200,000 / 0.35)

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