Debt Service Reserve (Commercial Real Estate Loan Agreement) | Practical Law

Debt Service Reserve (Commercial Real Estate Loan Agreement) | Practical Law

Standard Clauses used in a commercial real estate loan transaction requiring a borrower to establish a reserve to pay debt service during periods when the property is not generating enough rental income to meet the borrower's loan repayment obligations. These standard clauses describe when debt service reserves are needed and how they are funded and disbursed. These Standard Clauses contain integrated notes with important explanations and drafting and negotiating tips for all loan parties.

Debt Service Reserve (Commercial Real Estate Loan Agreement)

Practical Law Standard Clauses w-020-4066 (Approx. 14 pages)

Debt Service Reserve (Commercial Real Estate Loan Agreement)

by Practical Law Real Estate
MaintainedUSA (National/Federal)
Standard Clauses used in a commercial real estate loan transaction requiring a borrower to establish a reserve to pay debt service during periods when the property is not generating enough rental income to meet the borrower's loan repayment obligations. These standard clauses describe when debt service reserves are needed and how they are funded and disbursed. These Standard Clauses contain integrated notes with important explanations and drafting and negotiating tips for all loan parties.