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Document Preview Master Credit Facility Agreement |
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Title: |
Master Credit Facility Agreement |
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Entities: |
BRE Properties, Inc.; Prudential Multifamily Mortgage, Inc.; International Swaps & Derivatives Association, Inc.; Latham & Watkins; Venable LLP |
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Date: |
2003 |
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Size: |
Preview shows 23KB of 451KB total |
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Price: |
$99 |
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ID: |
#192975 |
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MASTER CREDIT FACILITY AGREEMENT
BY AND BETWEEN
THE BORROWERS SIGNATORY HERETO
AND
PRUDENTIAL MULTIFAMILY MORTGAGE, INC.
DATED AS OF
May 2, 2003
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
Page
----
{S} {C}
MASTER CREDIT FACILITY AGREEMENT.......................................................................1
ARTICLE 1 THE COMMITMENT...............................................................................2
SECTION 1.01. The Commitment........................................................................2
SECTION 1.02. Requests for Advances.................................................................2
SECTION 1.03. Maturity Date of Advances.............................................................2
SECTION 1.04. Interest on Advances..................................................................3
SECTION 1.05. Coupon Rates for Advances.............................................................4
SECTION 1.06. Notes.................................................................................4
SECTION 1.07. Extension of Variable Facility Termination Date.......................................5
SECTION 1.08. Conversion from Variable Facility Commitment to Fixed Facility Commitment.............5
SECTION 1.09. Limitations on Right to Convert.......................................................6
SECTION 1.10. Conditions to Conversion..............................................................6
SECTION 1.11. Defeasance; Yield Maintenance.........................................................6
ARTICLE 2 THE ADVANCES.................................................................................7
SECTION 2.01. Rate Setting for an Advance...........................................................7
SECTION 2.02. Advance Confirmation Instrument for Variable Advances.................................7
SECTION 2.03. Breakage and other Costs..............................................................7
SECTION 2.04. Advances..............................................................................8
SECTION 2.05. Determination of Allocable Facility Amount and Valuations.............................8
ARTICLE 3 COLLATERAL CHANGES...........................................................................9
SECTION 3.01. Right to Add Collateral...............................................................9
SECTION 3.02. Procedure for Adding Collateral.......................................................9
SECTION 3.03. Right to Obtain Releases of Collateral...............................................10
SECTION 3.04. Procedure for Obtaining Releases of Collateral.......................................10
SECTION 3.05. Right to Substitute Collateral.......................................................11
ARTICLE 4 EXPANSION OF CREDIT FACILITY................................................................12
SECTION 4.01. Right to Increase Commitment.........................................................12
SECTION 4.02. Procedure for Obtaining Increases in Commitment......................................12
SECTION 4.03. Closing..............................................................................13
ARTICLE 5 TERMINATION OF FACILITIES...................................................................13
SECTION 5.01. Right to Complete or Partial Termination of Facilities...............................13
SECTION 5.02. Procedure for Complete or Partial Termination of Facilities..........................13
SECTION 5.03. Right to Terminate Credit Facility...................................................13
SECTION 5.04. Procedure for Terminating Credit Facility............................................14
ARTICLE 6 CONDITIONS PRECEDENT TO ALL REQUESTS........................................................14
SECTION 6.01. Conditions Applicable to All Requests................................................14
SECTION 6.02. Conditions Precedent to Initial Advance..............................................16
SECTION 6.03. Conditions Precedent to Future Advances..............................................16
SECTION 6.04. Conditions Precedent to Addition of an Additional Mortgaged Property to the
Collateral Pool......................................................................17
SECTION 6.05. Conditions Precedent to Release of Property from the Collateral Pool.................18
{/TABLE}
{PAGE}
{TABLE}
{S} {C}
SECTION 6.06. Intentionally Omitted................................................................19
SECTION 6.07. Conditions Precedent to Increase in Commitment.......................................19
SECTION 6.08. Conditions Precedent to Conversion...................................................19
SECTION 6.09. Conditions Precedent to Complete or Partial Termination of Facilities................20
SECTION 6.10. Conditions Precedent to Termination of Credit Facility...............................20
SECTION 6.11. Delivery of Closing Documents Relating to Advance Request, Addition Request
or Expansion Request.................................................................21
SECTION 6.12. Delivery of Property-Related Documents...............................................21
ARTICLE 7 REPRESENTATIONS AND WARRANTIES..............................................................22
SECTION 7.01. Representations and Warranties of Borrower...........................................22
SECTION 7.02. Representations and Warranties of Lender.............................................22
ARTICLE 8 AFFIRMATIVE COVENANTS OF BORROWER...........................................................22
SECTION 8.01. Compliance with Agreements...........................................................23
SECTION 8.02. Maintenance of Existence.............................................................23
SECTION 8.03. Financial Statements; Accountants' Reports; Other Information........................23
SECTION 8.04. Access to Records; Discussions With Officers and Accountants.........................25
SECTION 8.05. Certificate of Compliance............................................................25
SECTION 8.06. Maintain Licenses....................................................................25
SECTION 8.07. Inform Lender of Material Events.....................................................25
SECTION 8.08. Compliance with Applicable Laws......................................................26
SECTION 8.09. Alterations to the Mortgaged Properties..............................................27
SECTION 8.10. Loan Document Taxes..................................................................27
SECTION 8.11. Further Assurances...................................................................28
SECTION 8.12. Transfer of Ownership Interest of Borrower and Guarantor.............................28
SECTION 8.13. Transfer of Ownership of Mortgaged Property..........................................29
SECTION 8.14. Change in Senior Management..........................................................30
SECTION 8.15. Date-Down Endorsements...............................................................30
SECTION 8.16. Ownership of Mortgaged Properties....................................................30
SECTION 8.17. Facility Balancing...................................................................30
SECTION 8.18. Financial Covenants..................................................................31
ARTICLE 9 NEGATIVE COVENANTS OF BORROWER..............................................................40
SECTION 9.01. Other Activities.....................................................................40
SECTION 9.02. Liens................................................................................41
SECTION 9.03. Indebtedness.........................................................................41
SECTION 9.04. Principal Place of Business..........................................................41
SECTION 9.05. Condominiums.........................................................................41
SECTION 9.06. Restrictions on Distributions........................................................41
ARTICLE 10 FEES.......................................................................................41
SECTION 10.01.Standby Fee..........................................................................41
SECTION 10.02.Rate Preservation Fee................................................................41
SECTION 10.03.Origination Fees.....................................................................42
SECTION 10.04.Due Diligence Fees...................................................................42
SECTION 10.05.Legal Fees and Expenses..............................................................42
SECTION 10.06.Failure to Close any Request.........................................................43
ARTICLE 11 EVENTS OF DEFAULT..........................................................................43
SECTION 11.01.Events of Default....................................................................43
{/TABLE}
ii
{PAGE}
{TABLE}
{S} {C}
ARTICLE 12 REMEDIES...................................................................................45
SECTION 12.01.Remedies; Waivers....................................................................45
SECTION 12.02.Waivers; Rescission of Declaration...................................................45
SECTION 12.03.Lender's Right to Protect Collateral and Perform Covenants and Other Obligations.....46
SECTION 12.04.No Remedy Exclusive..................................................................46
SECTION 12.05.No Waiver............................................................................46
SECTION 12.06.No Notice............................................................................46
ARTICLE 13 RIGHTS OF FANNIE MAE.......................................................................46
SECTION 13.01.Special Pool Purchase Contract.......................................................46
SECTION 13.02.Assignment of Rights.................................................................47
SECTION 13.03.Release of Collateral................................................................47
SECTION 13.04.Replacement of Lender................................................................47
SECTION 13.05.Fannie Mae and Lender Fees and Expenses..............................................47
SECTION 13.06.Third-Party Beneficiary..............................................................48
ARTICLE 14 INSURANCE, REAL ESTATE TAXES AND REPLACEMENT RESERVES......................................48
SECTION 14.01.Insurance and Real Estate Taxes......................................................48
SECTION 14.02.Replacement Reserves.................................................................48
ARTICLE 15 LIMITS ON PERSONAL LIABILITY...............................................................48
SECTION 15.01.Personal Liability to Borrower.......................................................48
ARTICLE 16 [Intentionally Omitted.]...................................................................49
ARTICLE 17 MISCELLANEOUS PROVISIONS...................................................................49
SECTION 17.01.Counterparts.........................................................................49
SECTION 17.02.Amendments, Changes and Modifications................................................50
SECTION 17.03.Payment of Costs, Fees and Expenses..................................................50
SECTION 17.04.Payment Procedure....................................................................51
SECTION 17.05.Payments on Business Days............................................................51
SECTION 17.06.Choice of Law; Consent to Jurisdiction; Waiver of Jury Trial.........................51
SECTION 17.07.Severability.........................................................................52
SECTION 17.08.Notices..............................................................................52
SECTION 17.09.Further Assurances and Corrective Instruments........................................54
SECTION 17.10.Term of this Agreement...............................................................55
SECTION 17.11.Assignments; Third-Party Rights......................................................55
SECTION 17.12.Headings.............................................................................55
SECTION 17.13.General Interpretive Principles......................................................55
SECTION 17.14.Interpretation.......................................................................55
SECTION 17.15.Standards for Decisions, Etc.........................................................56
SECTION 17.16.Decisions in Writing.................................................................56
SECTION 17.17.Requests.............................................................................56
{/TABLE}
iii
{PAGE}
EXHIBITS
EXHIBIT A Schedule of Initial Mortgaged Properties and Initial Valuations
EXHIBIT B Fixed Facility Note
EXHIBIT C Variable Facility Note
EXHIBIT D Intentionally Omitted
EXHIBIT E Intentionally Omitted
EXHIBIT F Compliance Certificate
EXHIBIT G-1 Borrower Organizational Certificate
EXHIBIT G-2 Guarantor Organizational Certificate
EXHIBIT H Conversion Request
EXHIBIT I Master Credit Facility Agreement Conversion Amendment
EXHIBIT J Rate Form
EXHIBIT K Advance Confirmation Instrument
EXHIBIT L Advance Request
EXHIBIT M Request (Addition/Release)
EXHIBIT N Confirmation of Obligations
EXHIBIT O Expansion Request
EXHIBIT P Facility Termination Request
EXHIBIT Q Amendment to Master Credit Facility Agreement
EXHIBIT R Credit Facility Termination Request
EXHIBIT S Guaranty
EXHIBIT T Certificate of Borrower
APPENDIX I Definitions
iv
{PAGE}
MASTER CREDIT FACILITY AGREEMENT
THIS MASTER CREDIT FACILITY AGREEMENT is made as of the 2nd day of May,
2003 by and among (i) BRE-FMCF, LLC, a Delaware limited liability company
(together with any Additional Borrowers, individually and collectively,
"Borrower"), and (ii) PRUDENTIAL MULTIFAMILY MORTGAGE, INC., a Delaware
corporation ("Lender").
RECITALS
A. Borrower owns one or more Multifamily Residential Properties
(unless otherwise defined or the context clearly indicates otherwise,
capitalized terms shall have the meanings ascribed to such terms in Appendix I
of this Agreement) as more particularly described in Exhibit A to this
Agreement.
B. Borrower has requested that Lender establish a $100,000,000 Credit
Facility in favor of Borrower, comprised initially of a $100,000,000 Variable
Facility, all or part of which can be converted to a Fixed Facility in
accordance with, and subject to, the terms and conditions of this Agreement.
C. To secure the obligations of Borrower under this Agreement and the
other Loan Documents issued in connection with the Credit Facility, Borrower
shall create a Collateral Pool in favor of Lender. The Collateral Pool shall be
comprised of (i) the Multifamily Residential Properties listed on Exhibit A and
(ii) any other collateral pledged to Lender from time to time by Borrower
pursuant to this Agreement or any other Loan Documents.
D. Each Note and Security Document related to the Mortgaged
Properties comprising the Collateral Pool shall be cross-defaulted (i.e., a
default under any Note, Security Document relating to the Collateral Pool and
under this Agreement, shall constitute a default under each Note, Security
Document and this Agreement related to the Mortgaged Properties comprising the
Collateral Pool) and cross-collateralized (i.e., each Security Instrument
related to the Mortgaged Properties within the Collateral Pool shall secure all
of Borrower's obligations under this Agreement and the other Loan Documents) and
it is the intent of the parties to this Agreement that Lender may accelerate any
Note without needing to accelerate any other Note and that in the exercise of
its rights and remedies under the Loan Documents, Lender may, except as provided
in this Agreement, exercise and perfect any and all of its rights in and under
the Loan Documents with regard to any Mortgaged Property without needing to
exercise and perfect its rights and remedies with respect to any other Mortgaged
Property and that any such exercise shall be without regard to the Allocable
Facility Amount assigned to such Mortgaged Property and that Lender may recover
an amount equal to the full amount outstanding in respect of any of the Notes in
connection with such exercise and any such amount shall be applied as determined
by Lender in its sole and absolute discretion.
E. Subject to the terms, conditions and limitations of this
Agreement, Lender has agreed to establish the Credit Facility.
{PAGE}
NOW, THEREFORE, Borrower and Lender, in consideration of the mutual
promises and agreements contained in this Agreement, hereby agree as follows:
ARTICLE 1
THE COMMITMENT
SECTION 1.01. The Commitment.
Subject to the terms, conditions and limitations of this Agreement:
(a) Variable Facility Commitment. Lender agrees to make
Variable Advances to Borrower from time to time during the Variable Facility
Availability Period. The aggregate principal balance of the Variable Advances
Outstanding at any time shall not exceed the Variable Facility Commitment.
Borrower may re-borrow any part of the Variable Advances which it has previously
borrowed and repaid. Except as provided in Section 2.04(c) of this Agreement, no
Variable Advances shall be made as a result of increases in the Valuation of any
Mortgaged Property. Any portion of the Variable Facility Commitment not
available to be advanced due to the inability of Borrower to satisfy the
requirements for the Aggregate Loan to Value Ratio and the Aggregate Debt
Service Coverage Ratio for a period of two (2) years shall be deemed terminated
and the partial termination provisions (including payment of the Facility
Termination Fee) set forth in Article 5 and Article 6 shall apply to such
partial termination.
(b) Fixed Facility Commitment. Lender agrees to make Fixed
Advances to Borrower from time to time during the Fixed Facility Availability
Period. The aggregate original principal of the Fixed Advances shall not exceed
the Fixed Facility Commitment. The borrowing of a Fixed Advance shall
permanently reduce the Fixed Facility Commitment by the original principal
amount of such Fixed Advance. Borrower may not re-borrow any part of the Fixed
Advance which it has previously borrowed and repaid. Except as provided in
Section 2.04(c) of this Agreement, no Fixed Advances shall be made as a result
of increases in the Valuation of any Mortgaged Property. Any portion of the
Fixed Facility Commitment not available to be advanced due to the inability of
Borrower to satisfy the requirements for the Aggregate Loan to Value Ratio and
the Aggregate Debt Service Coverage Ratio for a period of two (2) years shall be
deemed terminated and the partial termination provisions (including payment of
the Facility Termination Fee) set forth in Article 5 and Article 6 shall apply
to such partial termination.
SECTION 1.02. Requests for Advances.
Borrower shall request an Advance by giving Lender an Advance Request in
accordance with Section 2.04. The Advance Request shall indicate whether the
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