Lightning Docs Updates 5.22.26

We have issued an update to the system that modified the following:

  • New Option for Collateral Assignment of Property Management Agreement: An “All Properties” option is now available for the Collateral Assignment of Property Management Agreement. When selected, the system will generate a single Assignment covering all properties entered in the interview. Please note that this option should only be used when all properties are governed by the same Property Management Agreement

  • New Option for Assignment of Permits Agreement: An “All Properties” option is now available for the Assignment of Permits and Agreements. When selected, the system will generate a single recordable Assignment covering all properties entered in the interview.  Please note that this option should only be used if all properties are located in the same county and have the same ownership.

  • New Jersey Updates: As part of ongoing outside counsel reviews, we have made the following updates to documents for New Jersey loans that apply if New Jersey is selected as the Property State AND/OR the Governing Law jurisdiction:

    Loan Agreement and Arbitration Agreement:•  Borrower signature acknowledgment to include “as an instrument under seal…”

    Security Instrument:•  Consent and Modifications section – add reference to applicable NJ statute.•  New sections – Hazard Substances and Receipt of Security Instrument.•  Borrower signature acknowledgment to include “as an instrument under seal…”

As part of ongoing outside counsel reviews, we have made various amendments to documents that apply to all loans.

  • Compliance Warnings – added “business” days for ECOA to conform to applicable law.
  • Lender’s Closing Instructions – under insurance policies, added “and/or loss payee clauses” to address instances where both are required.
  • Loan Agreement:
    • Form of Policies – added additional language requiring a waiver of subrogation endorsement.  
  • Assignment of Contractor – added language providing that Lender’s appointment as Borrower’s attorney-in-fact is coupled with an interest.
  • Assignment of Permits and Agreements – added language expanding the representation and covenant concerning conveyances of the Permits or Agreements.
  • Arbitration Agreement –added references to allow for an arbitrator’s award to be acceptable for an award of Attorney Fees.
  • Environmental Indemnity Agreement
    • No Border Zone Property or Hazardous Waste Property – expanded representation and warranty to include that no portion of the Property contains or is located within 2,000 feet of sites on National Priorities List under CERCLA, or other hazardous waste sites.
    • Discovery  of Hazardous Material on Property – expanded coverage of the covenant to require Lender’s prior approval of the remediation plan.
    • Lender’s Right to Enter Property – added an exception to allow Lender to enter the Property for an emergency, with no prior notice.
  • Collateral Security Agreement – added language to Section 4 prohibiting debtor from  encumbering the collateral in favor of another party without Secured Party’s prior written consent.

Additionally, we have made the following update specific to all Florida loans:

  • Security Instrument – Taxation of Security Instrument, expanded this section to incorporate Florida documentary stamp tax and intangible tax and makes both payable by Borrower.

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