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Document Preview Security Agreement |
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Title: |
Security Agreement |
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Entities: |
Arbor Realty Trust, Inc.; Bank One, NA; Freddie Mac; Federal National Mortgage Association; Arbor Realty Limited Partnership; Residential Funding Corporation |
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Date: |
2004 |
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Size: |
Preview shows 25KB of 215KB total |
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Price: |
$44 |
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ID: |
#334328 |
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STRUCTURED FACILITY WAREHOUSING CREDIT
AND SECURITY AGREEMENT
BETWEEN
ARBOR REALTY LIMITED PARTNERSHIP,
A DELAWARE LIMITED PARTNERSHIP
AND
RESIDENTIAL FUNDING CORPORATION,
A DELAWARE CORPORATION
DATED AS OF JULY 1, 2003
{PAGE}
TABLE OF CONTENTS
{TABLE}
{S} {C}
1. THE CREDIT............................................................................................ 2-1
1.1. The Structured Facility Commitment.............................................................. 2-1
1.2. Expiration of Structured Facility Commitment.................................................... 2-1
1.3. Structured Facility Note........................................................................ 2-2
2. PROCEDURES FOR OBTAINING ADVANCES..................................................................... 2-1
2.1. Structured Facility Advances.................................................................... 2-1
3. INTEREST, PRINCIPAL AND FEES.......................................................................... 3-1
3.1. Interest ...................................................................................... 3-1
3.2. Interest Limitation............................................................................. 3-2
3.3. Principal Payments.............................................................................. 3-2
3.4. Buydowns ....................................................................................... 3-4
3.5. Structured Facility Commitment Fees; Exit Fees; Profit Sharing.................................. 3-5
3.6. Miscellaneous Fees and Charges.................................................................. 3-5
3.7. Overdraft Advances.............................................................................. 3-5
3.8. Method of Making Payments....................................................................... 3-6
4. COLLATERAL............................................................................................ 4-1
4.1. Grant of Security Interest...................................................................... 4-1
4.2. Maintenance of Collateral Records............................................................... 4-2
4.3. Release of Security Interest in Pledged Investments and Pledged Securities...................... 4-2
4.4. Collection and Servicing Rights................................................................. 4-3
4.5. Return of Collateral at End of Commitments...................................................... 4-4
4.6. Delivery of Collateral Documents................................................................ 4-4
4.7. Borrower Remains Liable......................................................................... 4-4
4.8. Further Assurance............................................................................... 4-5
5. CONDITIONS PRECEDENT.................................................................................. 5-1
5.1. Initial Advance................................................................................. 5-1
5.2. Each Advance.................................................................................... 5-2
5.3. Structured Facility Advances to Finance Preferred Equity Interests.............................. 5-3
5.4. Force Majeure................................................................................... 5-3
6. GENERAL REPRESENTATIONS AND WARRANTIES................................................................ 6-1
6.1. Place of Business............................................................................... 6-1
6.2. Organization; Good Standing; Subsidiaries....................................................... 6-1
6.3. Authorization and Enforceability................................................................ 6-1
6.4. Authorization and Enforceability of Guaranty.................................................... 6-2
6.5. Approvals ...................................................................................... 6-2
6.6. Financial Condition............................................................................. 6-2
6.7. Litigation...................................................................................... 6-2
6.8. Compliance with Laws............................................................................ 6-2
6.9. Regulation U.................................................................................... 6-3
6.10. Investment Company Act.......................................................................... 6-3
6.11. Payment of Taxes................................................................................ 6-3
6.12. Agreement ...................................................................................... 6-3
6.13. Title to Properties............................................................................. 6-3
6.14. ERISA .......................................................................................... 6-4
6.15. No Retiree Benefits............................................................................. 6-4
6.16. Assumed Names................................................................................... 6-4
{/TABLE}
{PAGE}
{TABLE}
{S} {C}
7. AFFIRMATIVE COVENANTS................................................................................. 7-1
7.1. Payment of Obligations.......................................................................... 7-1
7.2. Other Borrower Reports.......................................................................... 7-1
7.3. Maintenance of Existence; Conduct of Business................................................... 7-2
7.4. Compliance with Applicable Laws................................................................. 7-3
7.5. Inspection of Properties and Books; Operational Reviews......................................... 7-3
7.6. Notice ......................................................................................... 7-3
7.7. Payment of Debt, Taxes and Other Obligations.................................................... 7-4
7.8. Insurance ...................................................................................... 7-4
7.9. Subordination of Certain Indebtedness........................................................... 7-4
7.10. Other Loan Obligations.......................................................................... 7-4
7.11. ERISA .......................................................................................... 7-5
7.12. Hedging Arrangements............................................................................ 7-5
7.13. Closing Instructions............................................................................ 7-5
7.14. Use of Proceeds of Structured Facility Advances................................................. 7-5
8. NEGATIVE COVENANTS.................................................................................... 8-1
8.1. Contingent Liabilities.......................................................................... 8-1
8.2. Pledge of Servicing Contracts................................................................... 8-1
8.3. Restrictions on Fundamental Changes............................................................. 8-1
8.4. Deferral of Subordinated Debt................................................................... 8-1
8.5. Accounting Changes.............................................................................. 8-2
8.6. Leverage Ratio.................................................................................. 8-2
8.7. Minimum Modified Net Worth...................................................................... 8-2
8.8. Minimum Liquid Assets........................................................................... 8-2
8.9. Portfolio Performance Ratio..................................................................... 8-2
8.10. Profitability................................................................................... 8.2
8.11. Distributions to Members........................................................................ 8-2
8.12 Transactions with Affiliates.................................................................... 8-2
8.13. Servicing Contracts............................................................................. 8-3
9. SPECIAL REPRESENTATIONS, WARRANTIES AND COVENANTS CONCERNING COLLATERAL............................... 9-1
9.1. Special Affirmative Covenants Concerning Collateral............................................. 9-1
9.2. Special Negative Covenants Concerning Collateral................................................ 9-3
9.3. Special Representations and Warranties Concerning Servicing Collateral.......................... 9-4
9.4. Special Representations Concerning Multifamily Properties....................................... 9-4
9.5. Special Representations Concerning Pledged Shares............................................... 9-5
10. DEFAULTS; REMEDIES.................................................................................... 10-1
10.1. Events of Default............................................................................ 10-1
10.2. Remedies..................................................................................... 10-2
10.3. Application of Proceeds...................................................................... 10-4
10.4. Lender Appointed Attorney-in-Fact............................................................ 10-4
10.5. Right of Set-Off............................................................................. 10-5
11. MISCELLANEOUS......................................................................................... 11-1
11.1. Notices...................................................................................... 11-1
11.2. Reimbursement Of Expenses; Indemnity......................................................... 11-1
11.3. Financial Information........................................................................ 11-2
11.4. Terms Binding Upon Successors; Survival of Representations................................... 11-2
11.5. Assignments and Participations............................................................... 11-2
11.6. Amendments................................................................................... 11-3
11.7. Governing Law................................................................................ 11-3
11.8. Confidentiality.............................................................................. 11-3
11.9. Relationship of the Parties.................................................................. 11-3
11.10. Severability................................................................................. 11-4
{/TABLE}
{PAGE}
{TABLE}
{S} {C}
11.11. Operational Reviews.......................................................................... 11-4
11.12. Consent to Credit References................................................................. 11-4
11.13. Counterparts................................................................................. 11-4
11.14. Headings/Captions............................................................................ 11-4
11.15. Entire Agreement............................................................................. 11-4
11.16. Consent to Jurisdiction...................................................................... 11-4
11.17. Waiver of Jury Trial......................................................................... 11-5
11.18. Waiver of Punitive, Consequential, Special or Indirect Damages............................... 11-5
12. ASSIGNMENT OF INITIAL ELIGIBLE INVESTMENTS............................................................ 12-1
12.1. Assignment and Assumption.................................................................... 12-1
13. DEFINITIONS........................................................................................... 13-1
13.1. Defined Terms................................................................................ 13-1
13.2. Other Definitional Provisions; Terms of Construction......................................... 13-14
{/TABLE}
{PAGE}
EXHIBITS
Exhibit A-MF Request for Structured Facility Advance Against Note
Acquisition Loans or Bridge Mortgage Loans
(Multifamily and Commercial Mortgage Loans)
Exhibit A-MF/APP Approval Request for Structured Facility Advance
Exhibit A-MF/MEZ Request for Structured Facility Advance Against
Mezzanine Investment
Exhibit A-PA Property Acquisition Advance Request
Exhibit B-MF/NA Procedures and Documentation for Warehousing Note
Acquisition Loans
Exhibit B-PA Procedures and Documentation for Warehousing Property
Acquisition Loans
Exhibit B-MF/BR Procedures and Documentation for Warehousing Bridge
Mortgage Loans
Exhibit B-MF/MEZ Procedures and Documentation for Warehousing
Mezzanine Loans (Excluding Preferred Equity Interest)
Exhibit B-MF/PEI Procedures and Documentation for Warehousing
Preferred Equity Interest
Exhibit C Form of Arbor Member Entity Pledge Agreement
Exhibit D Subsidiaries
Exhibit E Compliance Certificate
Exhibit F Schedule of Existing Lines of Credit
Exhibit G Assumed Names
Exhibit H Eligible Investments and Other Assets
Exhibit I Fee Schedule
Exhibit J Loan Monitoring Analysis Form
{PAGE}
STRUCTURED FACILITY WAREHOUSING CREDIT AND
SECURITY AGREEMENT
STRUCTURED FACILITY WAREHOUSING CREDIT AND SECURITY AGREEMENT, dated as of July
1, 2003 between Arbor Realty Limited Partnership, a Delaware limited partnership
("Borrower"), and RESIDENTIAL FUNDING CORPORATION, a Delaware corporation
("Lender").
A. Borrower has requested certain financing from Lender.
B. Lender has agreed to provide that financing to Borrower, subject to the
terms and conditions of this Agreement.
C. On the Closing Date, ACM will assign the Initial Eligible Investments
to Borrower and Borrower will assume certain obligations relating to
the Initial Eligible Investments, as contemplated by Article 12 of this
Agreement.
D. Lender agrees to the assignment and assumption contemplated by Article
12 of this Agreement.
E. Subject to Borrower's satisfaction of the conditions set forth in
Article 5, the "Closing Date" for the transactions contemplated by this
Agreement is July 1, 2003.
NOW, THEREFORE, the parties to this Agreement agree as follows:
THE CREDIT
1.1. THE STRUCTURED FACILITY COMMITMENT
On the terms and subject to the conditions and limitations of this Agreement,
including Exhibit H, Lender agrees to make Structured Facility Advances to
Borrower from the Closing Date to the Business Day immediately preceding the
Structured Facility Commitment Termination Date, during which period Borrower
may borrow, repay and reborrow in accordance with the provisions of this
Agreement. Lender has no obligation to make Structured Facility Advances if,
after giving effect to such Structured Facility Advance, the aggregate
outstanding principal amount of all Structured Facility Advances would exceed
the Structured Facility Commitment Amount. While a Default or Event of Default
exists, Lender may refuse to make any additional Structured Facility Advances to
Borrower. Effective as of the Closing Date, all "Structured Facility Advances"
outstanding under the Existing ACM Agreement will be assumed by Borrower
pursuant to Section 12.1, and will be deemed for all purposes to be Structured
Facility Advances made under this Agreement. All Structured Facility Advances
under this Agreement constitute a single indebtedness, and all of the Collateral
is security for the Structured Facility Note and for the performance of all of
the Obligations.
1.2. EXPIRATION OF STRUCTURED FACILITY COMMITMENT
The Structured Facility Commitment expires on the earliest of ("Structured
Facility Commitment Termination Date"): (a) June 30, 2006, as such date may be
extended in writing by Lender, in its sole discretion, on which date the
Structured Facility Commitment will expire of its own term, (b) the date ACM for
any reason ceases to be the manager of Guarantor and Borrower under and pursuant
to the Management Agreement, (c) the date any "event of default" (however
defined)
Dated: 7/1/2003
Amended: 7/24/2003
Page 1-1
{PAGE}
occurs under any agreement between ACM and Lender, and (d) the date the
Structured Facility Commitment is terminated or the Structured Facility Advances
become due under Section 10.2. Lender agrees that upon request from Borrower
Lender will notify Borrower on or before April 30, 2006 if Lender does not
expect to extend the Structured Facility Commitment beyond June 30, 2006.
1.3. STRUCTURED FACILITY NOTE
Structured Facility Advances are evidenced by Borrower's promissory note,
payable to Lender on the form prescribed by Lender ("Structured Facility Note").
The term "Structured Facility Note" as used in this Agreement includes all
amendments, restatements, renewals or replacements of the original Structured
Facility Note and all substitutions for it. All terms and provisions of the
Structured Facility Note are incorporated into this Agreement.
END OF ARTICLE 1
Dated: 7/1/2003
Amended: 7/24/2003
Page 1-2
{PAGE}
PROCEDURES FOR OBTAINING STRUCTURED FACILITY ADVANCES
2.1. STRUCTURED FACILITY ADVANCES
To obtain any Structured Facility Advance under this Agreement, Borrower must
deliver not later than 10 Business Days before the Business Day on which
Borrower desires the Structured Facility Advance (other than the Structured
Facility Advances deemed to be outstanding against the Initial Eligible
Investments pursuant to Article 12), an Approval Request and Underwriting
Documents. Within 10 Business Days after receipt of the Approval Request and
supporting documents, Lender may, in its sole discretion, approve the requested
Structured Facility Advance by returning to Lender the Approval Request executed
by Lender. The approval will remain valid for a period of 30 days, unless
extended by Lender in its sole discretion. Lender will notify Borrower within
the 3 Business Days after receipt of the Approval Request in the event it
rejects that Approval Request. Subject to the delivery and approval of a
Structured Facility Advance Request, the delivery of the Underwriting Documents
and the satisfaction of the conditions set forth in Sections 5.1 and 5.2,
Borrower may obtain a Structured Facility Advance under this Agreement upon
compliance with the procedures set forth in this Section and in the applicable
Exhibit B, including delivery to Lender of all required Collateral Documents.
Lender's current form of Structured Facility Advance Request is set forth in
Exhibit A. Upon not less than 3 Business Days' prior Notice to Borrower, Lender
may modify its form of Approval Request, Structured Facility Advance Request,
and any other Exhibit or document referred to in this Section to conform to
current legal requirements or Lender practices and, as so modified, those
Exhibits and documents will become part of this Agreement.
END OF ARTICLE 2
Dated: 7/1/2003
Amended: 7/24/2003
Page 1
{PAGE}
INTEREST, PRINCIPAL AND FEES
3.1. INTEREST
3.1 (a) Except as otherwise provided in this Section, Borrower must pay
interest on the unpaid amount of each Structured Facility Advance from
the date the Structured Facility Advance is made until it is paid in
full at the Interest Rate specified in Exhibit H.
3.1 (b) As long as no Default or Event of Default exists, Borrower is entitled
to receive a benefit based on the average monthly Eligible Balances of
Borrower maintained at a Designated Bank. After the end of each month,
Lender will calculate the portion ("Balance Funded Portion") of the
Structured Facility Advances that is equal to the lesser of (1) the
average amount of Structured Facility Advances outstanding during such
month or (2) the average amount of Eligible Balances during such month.
Interest that would otherwise be payable by Borrower under Exhibit H on
the Balance Funded Portion will be reduced by a "Balance Funding
Credit" equal to:
Balance Funded Portion x [(IR - BFR) / AB] x ADP,
where "IR" is the weighted daily average of the Index Rate otherwise
applicable under Exhibit H, "BFR" is the applicable Balance Funded
Rate, "AB" is the Accrual Basis and "ADP" is the number of days in the
month (or other applicable period) for which the Balance Funding Credit
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