Can a borrower under a commercial mortgage loan that backs a CMBS, or an affiliate of such a borrower, borrow from the TALF and pledge the same CMBS as collateral?
A CMBS will not be eligible collateral for a particular borrower if the borrower is, or is an affiliate of, a borrower under a mortgage loan backing the CMBS, unless that loan, and each other mortgage loan in the CMBS mortgage pool made to an affiliate of the TALF borrower, together constitute no more than 5% of the aggregate principal balance of the mortgage loans in the pool as of the subscription date. For purposes of this requirement, the definition of “affiliate” shall be as set forth in the MLSA.
Related Questions
- Can a borrower under a floorplan loan or a lessee under a fleet lease that backs an ABS, or an affiliate of such a borrower or lessee, borrow from the TALF and pledge the same ABS as collateral?
- Can a borrower under a commercial mortgage loan that backs a CMBS, or an affiliate of such a borrower, borrow from the TALF and pledge the same CMBS as collateral?
- Must an eligible borrower own newly issued ABS it plans to pledge as collateral for a TALF loan at the time it subscribes for the loan?
