LTV covenant
In terms of the LTV covenant, if for example you selected an annual 80% Loan to Value Covenant tested annually here is the language that would come in. It would be up to Lender to determine if this meets your business needs for this transaction.
Partial Release
Option 1: In order to trigger the partial release language to come in you would select "Yes" to the partial release option on the Loan tab.
Once "yes" is selected you will need to enter your choice of Loan-to-Value percentage (LTV) as well as highlighted above. The loan allocation can be found on the Property tab therefore in order to specify the property minimum release prices, please navigate to the Property Tab. The system will only populate the entered address(es) therefore please enter the specific addresses and the respective Minimum Release Prices:
If the Option 1 partial release language is selected on the loan order, the provision can be found in section H.15 of the loan agreement as per screenshot below:
Option 2: We can also turn on the option for an "Allocated Partial Release" Price, which does not require a LTV percentage.
You will select the Par Amount Percentage which we typically see as a percentage amount above 100% (in our sample we selected 125%) of the allocated partial release amount. As an example below, each property is 50% of the loan value ($3,500,000), and the allocated release is 125%, as such the release value for each property is $4,375,000.
Do note that Option 2 allows you to select a flat fee (e.g. $500.00) for processing such partial release request and there is no LTV percentage requirement:
