Earnout Reserve (Commercial Real Estate Loan Agreement) | Practical Law

Earnout Reserve (Commercial Real Estate Loan Agreement) | Practical Law

A set of Standard Clauses used in commercial real estate loan documents to establish a reserve to increase available loan proceeds to the borrower if the mortgaged property achieves specific financial goals before a deadline. These Standard Clauses describe how earnout reserves are funded and when and how they are held, applied, and if applicable, disbursed. These Standard Clauses have integrated notes with important explanations and drafting and negotiating tips for all loan parties.

Earnout Reserve (Commercial Real Estate Loan Agreement)

Practical Law Standard Clauses w-020-4069 (Approx. 12 pages)

Earnout Reserve (Commercial Real Estate Loan Agreement)

by Practical Law Real Estate
MaintainedUSA (National/Federal)
A set of Standard Clauses used in commercial real estate loan documents to establish a reserve to increase available loan proceeds to the borrower if the mortgaged property achieves specific financial goals before a deadline. These Standard Clauses describe how earnout reserves are funded and when and how they are held, applied, and if applicable, disbursed. These Standard Clauses have integrated notes with important explanations and drafting and negotiating tips for all loan parties.