Company: CMCT
Filing Date: 2025-01-02
Form Type: 8-K
Source: 0000908311-24-000076
Chunk: 1

Company: Creative Media & Community Trust Corp
Filing Date: 2025-01-02
Form: 8-K
Item: Item 1.01
Chunk 1
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 rate of 7.413%.

The Mortgage Loan may be prepaid or defeased in whole (but not in part), as provided in the Loan Agreement, at any time after the earlier to occur of (i) January 11, 2028 and (ii) the date that is two years from the “startup day” (within the meaning of Section 860G(a)(9) of the Internal Revenue Code) of the “ REMIC Trust” established in connection with the last securitization of any portion of the Mortgage Loan (such earlier date, the “ Defeasance Lockout Release Date”) and prior to July 11, 2029 (the “ Open Period Start Date), provided that the conditions set forth in the Loan Agreement are satisfied, including, with respect to a prepayment, payment of a yield maintenance premium. In addition, the Mortgage Loan may be prepaid in whole (but not in part), as provided in the Loan Agreement, on or after the Open Period Start Date without payment of a yield maintenance premium, provided that the conditions set forth in the Loan Agreement are satisfied.

Additionally, in connection with a bona fide arm’s length sale of the 11600 Property and/or the 11620 Property to an independent third party, the Mortgage Loan may be (i) partially prepaid at any time prior to the Defeasance Lockout Release Date and/or (ii) partially defeased at any time after the Defeasance Lockout Release Date and prior to the Open Period Start Date, in each case, as provided in the Loan Agreement, upon satisfaction of the applicable conditions set forth in the Loan Agreement, including, with respect to a partial prepayment, payment of a prepayment premium in an amount equal to the yield maintenance premium with respect to the portion of the principal amount of the Mortgage Loan required to be prepaid by each applicable Borrower in accordance with the terms of the Loan Agreement. In connection with any such partial prepayment and/or partial defeasance, each applicable Property will be released as collateral for the Mortgage Loan and each applicable Borrower will be released from its obligations under the Mortgage Loan.

In connection with the Loan Agreement, the Company (in such capacity, the “ REIT Guarantor”) and CIM Group Investments, LLC, an affiliate of CIM Group (the “ CIM Guarantor,” and, together with the REIT Guarantor, the “ Guarantor”), delivered a customary non-recourse carveout guaranty to the Lenders (the “ Guaranty Agreement