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These estimated costs for
Banc-Series™ Apartment Loans are given in good
faith to provide Borrower with an idea of the costs associated with
apartment financing. They are based on costs believed to be accurate
at the time of application; however, Apartment Lender accepts no
responsibility for their accuracy.
APARTMENT LOAN ASSUMABILITY
Banc-Series™ Apartment Loans are assumable upon
satisfaction of certain conditions contained in the Apartment Loan
documents, including, without limitation, credit approval of the
proposed transferee and payment of an assumption fee equal to 1% of
the outstanding principal balance of the multifamily loan.
APARTMENT LOAN CLOSING REQUIREMENTS
The Apartment Loan must close at the
title company through a deed and money escrow. Unless specified
differently in the Note and/or Mortgage, all Borrowers will be
required to personally guarantee the Apartment Loan. At least 3
days prior to closing the Apartment Loan, Borrower will be required
to provide Apartment Lender with the following:
1) Insurance Policies - complete
original copies (both declaration and jacket) of property, liability
and other required insurance coverage, along with a paid receipt for
the first year's premium. The company(s) must have a Best's rating
of A- or better. Property coverage must be equal to or greater than
the amount required by Apartment Lender, with the mortgagee clause
to: Contact CommercialBanc and we will fax the mortgagee clause to
you.
BINDERS ARE NOT ACCEPTABLE,
except in the State of Washington.
2) Survey - a copy of a current survey
(no more than 6 months old) showing all improvements on site. On
apartment loan refinances, if the property contains 12 units or less, an older
survey is acceptable provided no new improvements have been added
and an affidavit is provided to that effect at closing.
SERVICING OF THE APARTMENT LOAN
Apartment Lender reserves the right to
transfer the servicing of the Apartment Loan.
APPRAISAL REPORT / PROPERTY CONDITION
ASSESSMENT / ENVIRONMENTAL ASSESSMENT FOR APARTMENT FINANCING
Upon Borrower’s written request,
Borrower will be provided with a copy of the appraisal report,
property condition assessment and/or environmental assessment
report. Said request must be made within 90 days of Apartment Loan
approval/denial of Borrower’s application. The address to where the
request may be sent will be provided to Borrower at the time of the
notice of action.
FINANCIAL COVENANTS
For the duration of the Apartment
Loan, Borrower, upon request, will be required to provide Apartment
Lender with current personal financial statements, tax returns and
operating (income and expense) statements on the property. Borrower
hereby agrees to pay a fee in an amount determined by Apartment
Lender from time to time, as provided in the Note, if Borrower fails
to provide this information within 30 days of a request.
TITLE COMPANY AUTHORIZATION
BORROWER HEREBY AUTHORIZES APARTMENT
LENDER
TO SELECT A TITLE INSURER (THE “TITLE INSURER”), LICENSED TO DO
BUSINESS IN THE STATE WHERE THE PROPERTY IS LOCATED, FOR THE PURPOSE
OF PROVIDING TITLE INSURANCE AND ESCROW CLOSING SERVICES IN
CONNECTION WITH THIS APARTMENT FINANCING TRANSACTION. UNLESS A SPECIFIC TITLE
INSURER HAS BEEN OTHERWISE AGREED UPON OR DESIGNATED TO PROVIDE SUCH
SERVICES, APARTMENT LENDER CURRENTLY INTENDS TO UTILIZE EITHER
FIRST
AMERICAN TITLE INSURANCE COMPANY (NATIONAL ACCOUNTS OFFICE) OR
CHICAGO TITLE INSURANCE COMPANY (NATIONAL ACCOUNTS OFFICE), AND
BORROWER HEREBY AUTHORIZED APARTMENT LENDER TO ORDER TITLE INSURANCE
FOR THE APARTMENT LOANS FROM THE TITLE INSURER. IT SHALL
ULTIMATELY BE BORROWER’S RESPONSIBILITY, HOWEVER, TO CAUSE THE TITLE
INSURER TO FURNISH TO APARTMENT LENDER A CURRENT TITLE INSURANCE
COMMITMENT THAT SATISFIES ALL OF APARTMENT LENDER’S REQUIREMENTS AT
LEAST TEN (10) BUSINESS DAYS PRIOR TO THE ANTICIPATED CLOSING DATE
OF THE APARTMENT LOAN. AT CLOSING, BORROWER MUST PAY ALL COSTS
ASSOCIATED WITH OBTAINING THE APARTMENT LENDER’S TITLE INSURANCE
POLICY FOR THE APARTMENT LOAN.
ACKNOWLEDGEMENT AND NON RELIANCE ON VENDOR
REPORTS
Borrower hereby acknowledges that
Apartment
Lender or its agents may retain third parties (collectively,
"Vendors") to obtain and analyze information and other material
concerning Borrower and/or the real estate which is being
offered to Apartment Lender as collateral (the "Real Estate")
and to issue reports to Apartment Lender (collectively,
"Reports") concerning the information obtained and the analysis
thereof in conjunction of
apartment financing request.
Such Reports shall include, but are not limited
to, credit reports, appraisals, property condition
assessments, wood destroying infestation reports, certifications
of engineers or other construction or building component
experts, environmental assessments, market or feasibility
studies, surveys and searches of land records. Borrower
understands that Borrower shall not be entitled to receive copies of
any Reports or information contained in any Reports except where
indicated elsewhere. |
