109.01A

Lease Review

Requirements

You must analyze all aspects of each Material Commercial LeaseMaterial Commercial LeaseLease, sublease, license, concession, grant, or other possessory interest for commercial purposes comprising 5% or more of the Property's annual EGI, or relating to: solar power, thermal power generation, or co-power generation, or the installation of solar panels or any other… and its

  • tenants,
  • grantees, or
  • other beneficiaries.

If Material Commercial LeaseMaterial Commercial LeaseLease, sublease, license, concession, grant, or other possessory interest for commercial purposes comprising 5% or more of the Property's annual EGI, or relating to: solar power, thermal power generation, or co-power generation, or the installation of solar panels or any other… approval is required per Part II, Chapter 1: Attributes and Characteristics, Section 109.01B: Lease Approval you must:

  • prepare a written summary of the material terms of the Material Commercial LeaseMaterial Commercial LeaseLease, sublease, license, concession, grant, or other possessory interest for commercial purposes comprising 5% or more of the Property's annual EGI, or relating to: solar power, thermal power generation, or co-power generation, or the installation of solar panels or any other…; and
  • keep a copy of your summary in your Servicing FileServicing FileYour file for each Mortgage Loan serviced. .

Guidance

As you analyze the Material Commercial LeaseMaterial Commercial LeaseLease, sublease, license, concession, grant, or other possessory interest for commercial purposes comprising 5% or more of the Property's annual EGI, or relating to: solar power, thermal power generation, or co-power generation, or the installation of solar panels or any other…, you should consider if:

  • each tenant has the ability to fulfill its financial and other performance obligations under the Material Commercial LeaseMaterial Commercial LeaseLease, sublease, license, concession, grant, or other possessory interest for commercial purposes comprising 5% or more of the Property's annual EGI, or relating to: solar power, thermal power generation, or co-power generation, or the installation of solar panels or any other…;
  • the Material Commercial LeaseMaterial Commercial LeaseLease, sublease, license, concession, grant, or other possessory interest for commercial purposes comprising 5% or more of the Property's annual EGI, or relating to: solar power, thermal power generation, or co-power generation, or the installation of solar panels or any other… insurance provisions are consistent with the insurance requirements in the applicable Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. or otherwise prescribed by Fannie Mae;
  • each tenant is required to obtain the Lender'sLender'sPerson Fannie Mae approved to sell or service Mortgage Loans. consent before the Material Commercial LeaseMaterial Commercial LeaseLease, sublease, license, concession, grant, or other possessory interest for commercial purposes comprising 5% or more of the Property's annual EGI, or relating to: solar power, thermal power generation, or co-power generation, or the installation of solar panels or any other… is
    • assigned,
    • subleased,
    • subcontracted, or
    • otherwise transferred; and
  • the tenant
    • has early termination clauses, and
    • understands the conditions under which they can terminate, including
      • a material casualty or condemnation, or
      • if the landlord cannot substantially restore the premises in a reasonable period of time following a casualty or condemnation.