LCP Proudreed PLC - Irish Stock Exchange

Security:
Insurance:
Valuation:
70 per cent. will not give rise to a Loan Event of
Default but, instead, the relevant Borrower will be
required to acquire additional properties or substitute
existing properties, provided the requisite criteria
are satisfied and/or deposit sufficient cash (using
amounts otherwise available to the relevant Borrower
and not credited to the relevant Borrower
Accounts) into the Cash Trap Account (to be credited
to the ‘‘LTV reserve ledger’’) such that the LTV
Ratio, as recalculated to reflect the additional or
substituted property and/or cash deposit, would be at
or below 70 per cent. Pending its making an acquisition,
substitution or deposit as described above, the
relevant Borrower will be required to deposit
amounts into the ‘‘LTV reserve ledger’’ of the Cash
Trap Account on each Loan Interest Payment Date
that the LTV Ratio in respect of its Property Portfolio
is above 70 per cent.
Amounts credited to the ‘‘LTV reserve ledger’’ may
be applied in repayment or prepayment of the
relevant Commercial Mortgage Loan if such Commercial
Mortgage Loan is being repaid or prepaid, as
the case may be, in full.
For further details of the LTV Ratio see the section
entitled ‘‘Summary of Principal Documents – Commercial
Mortgage Loan Agreements – LTV Ratio’’
The Issuer, as lender under the Commercial Mortgage
Loans to the Borrowers, will, pursuant to the
Borrower Deed of Charge relating to the relevant
Commercial Mortgage Loan, share in the benefit,
inter alia, of the first fixed mortgages over, and rental
income from, the Property Portfolio of the relevant
Borrower, as more fully described in the section
entitled ‘‘Summary of Principal Documents – The
Borrower Deeds of Charge’’ below.
Each Borrower has undertaken to maintain insurance
(or, in some cases, procure that insurance is
maintained) on each Secured Property on a full
reinstatement value basis, including not less than
three years’ loss of rent on all Occupational Leases
together with third party liability insurance and
insurance against subsidence and (to the extent
available) acts of terrorism and to procure that the
Borrower Security Trustee is named as joint loss
payee on all relevant insurance policies.
All insurances required under a Commercial Mortgage
Loan Agreement must be with an insurance
company or underwriter that has a long-term credit
rating of at least A (or better) by Fitch and A (or
better) by S&P.
The affected Borrower is required to provide a full
Valuation Report following a Loan Event of Default
or a Potential Loan Event of Default and following
the occurrence of any event or circumstance which,
in the reasonable opinion of the Borrower Security
Trustee may be materially prejudicial to Noteholders.
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