LIBOR loans cannot be pending for more than 10 separate interest periods (for which interest periods are considered separate, even if they are coded [for the same duration]); So let`s be able to do a coternée assessment. It`s a clumsy word, and it`s relatively opaque. I spend all kinds of quality time on EDGAR and I was not familiar with coterminous. And it`s not easy to express a complex idea – its meaning is simple. A few days ago, I met the word coterminous for the first time… never? Of course it was in a contract. The same settlement date also makes it easier for borrowers to determine whether refinancing upfront and term loans can result in substantial savings. Lenders also benefit from the same billing dates because they have a lower risk of default than a non-rating mezzanine mortgage. I`m convinced you could optimize my versions, but I`m satisfied enough with them to say hacking with coterminous. This schedule comes into effect on the effective date and is co-ordized with the contract for a term [for the same duration], unless one of the parties states in writing that it does not renew at least one hundred and eighty days (180) days before the expiry of the extension period. A staggering mortgage may have a minimum amount to borrow. In the case of commercial mortgages, there could be provisions on the property itself.
For example, there may be occupancy requirements that the borrower must meet and maintain in order to qualify for an additional mortgage. The building must be physically occupied at least 90 days before the mortgage closes. The recovery of replacement reserves for an additional listed mortgage may be waived; However, replacement reserves in the original mortgage would continue to be recovered. A new asset valuation and title insurance may be required. While an additional loan may have an maturity date after the initial loan (often referred to as “non-coterminate”), most second mortgage lenders or mezzanine lenders prefer to get both loans on the same day. This allows the borrower to refinance both loans in a larger refinancing, preferably with the same lender.