LOAN TO VALUE RATIO AND (III) THE AGGREGATE LEASE PAYMENT DEBT SERVICE COVERAGE
RATIO.
THE DETERMINATIONS MADE AS OF THE INITIAL CLOSING DATE SHALL REMAIN
UNCHANGED UNTIL THE FIRST ANNIVERSARY.
CHANGES IN ALLOCABLE LOAN AMOUNT,
VALUATIONS, THE AGGREGATE NOI DEBT SERVICE COVERAGE RATIO, THE
2
AGGREGATE LEASE PAYMENT DEBT SERVICE COVERAGE RATIO AND THE AGGREGATE LOAN TO
VALUE RATIO SHALL BE MADE PURSUANT TO SECTION 2.01(B).
(B)
MONITORING DETERMINATIONS.
ONCE EACH CALENDAR QUARTER WITHIN
TWENTY (20) BUSINESS DAYS AFTER BORROWER HAS DELIVERED TO LENDER THE REPORTS
REQUIRED IN SECTION 8.03, LENDER SHALL DETERMINE THE AGGREGATE NOI DEBT SERVICE
COVERAGE RATIO, THE AGGREGATE LEASE PAYMENT DEBT SERVICE COVERAGE RATIO, THE
AGGREGATE LOAN TO VALUE RATIO, LEVEL OF CARE DIVERSITY REQUIREMENTS, THE
VALUATIONS AND THE ALLOCABLE LOAN AMOUNTS AND WHETHER BORROWER IS IN COMPLIANCE
WITH THE OTHER COVENANTS SET FORTH IN THE LOAN DOCUMENTS.
AFTER THE FIRST
ANNIVERSARY, ON AN ANNUAL BASIS, AND IF LENDER DECIDES THAT CHANGED MARKET OR
PROPERTY CONDITIONS WARRANT, LENDER SHALL REDETERMINE ALLOCABLE LOAN AMOUNTS AND
VALUATIONS.
LENDER SHALL ALSO REDETERMINE ALLOCABLE LOAN AMOUNTS TO TAKE
ACCOUNT OF ANY SUBSTITUTION OR RELEASE OF COLLATERAL OR OTHER EVENT THAT
INVALIDATES THE OUTSTANDING DETERMINATIONS.
IN DETERMINING VALUATIONS, LENDER
SHALL USE CAPITALIZATION RATES BASED ON ITS INTERNAL SURVEY AND ANALYSIS OF
CAPITALIZATION RATES FOR COMPARABLE SALES IN THE VICINITY OF THE MORTGAGED
PROPERTY, WITH SUCH ADJUSTMENTS AS LENDER DEEMS APPROPRIATE AND WITHOUT ANY
OBLIGATION TO USE ANY INFORMATION PROVIDED BY BORROWER.
IF LENDER IS UNABLE TO
DETERMINE A CAPITALIZATION RATE FOR A MORTGAGED PROPERTY, LENDER SHALL HAVE THE
RIGHT, WITH THE PRIOR CONSENT OF BORROWER, NOT MORE THAN ONCE ANNUALLY, TO
OBTAIN, AT BORROWER'S EXPENSE, A MARKET STUDY IN ORDER TO ESTABLISH A
CAPITALIZATION RATE.
IN THE EVENT BORROWER FAILS TO CONSENT TO LENDER OBTAINING
A MARKET STUDY, LENDER SHALL DETERMINE THE CAPITALIZATION RATE PURSUANT TO THE
UNDERWRITING REQUIREMENTS.
LENDER SHALL PROMPTLY DISCLOSE ITS DETERMINATIONS TO
BORROWER.
UNTIL REDETERMINED, THE OUTSTANDING ALLOCABLE LOAN AMOUNTS AND
VALUATIONS SHALL REMAIN IN EFFECT.
NOTWITHSTANDING ANYTHING IN THIS AGREEMENT
TO THE CONTRARY, NO CHANGE IN ALLOCABLE LOAN AMOUNTS, VALUATIONS, THE AGGREGATE
LOAN TO VALUE RATIO, THE AGGREGATE NOI DEBT SERVICE COVERAGE RATIO OR THE
AGGREGATE LEASE PAYMENT DEBT SERVICE COVERAGE RATIO SHALL, UNLESS RESULTING FROM
THE CONCURRENT RELEASE OR SUBSTITUTION OF COLLATERAL FROM THE COLLATERAL POOL,
(I) RESULT IN A POTENTIAL EVENT OF DEFAULT OR EVENT OF DEFAULT, (II) REQUIRE THE
PREPAYMENT OF ANY NOTE, OR (III) REQUIRE THE ADDITION OF COLLATERAL TO THE
COLLATERAL POOL.
Section 2.02.
Supplemental Loan.
After the First Anniversary, Borrower may participate in the Fannie Mae
Supplemental Loan product, if the Supplemental Loan product is offered by Fannie
Mae at the time and if no Targeted Entity is a Prohibited Person.
Any such
Supplemental Loan is subject to Lender's determination that, as a result of its
annual valuation of the Collateral Pool, a Supplemental Loan may be made
pursuant to Lender's Underwriting Requirements for Tier Four loans in effect at
the time of the request.
The Supplemental Loan will