Lightning Docs Updates 6.12.26

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

• New Feature *Amortization Schedule*: We have added a feature for amortized loans (partial and full) where the user can elect to include an amortization schedule that is created in Lightning Docs. To use this feature, it must be enabled on the Permissions page of a scenario.

If the user elects to include an amortization schedule, the following will occur:

1. A reference to the Schedule will appear in the Key Provisions Summary.
2. A reference will be added in the section of the Note concerning monthly payments, and if applicable, the section of the Note concerning the Balloon Payment.
3. The Schedule will appear after the Note.

The amortization schedule feature is not compatible with the following:

1. Lines of Credit.
2. Loans with Non-Dutch interest for reserves.
3. Loans where interest is being paid in advance and not in arrears.
4. Loans where the Maturity Date does not match the final normal monthly payment date.
5. Payments are interest only for the full loan term.
6. Loan with step interest.

• Defining “Title Company” and “Closing Agent” in the Lender’s Closing Instructions: The defined terms for “Title Company” and “Closing Agent” have been updated within the Lender’s Closing Instructions. This enhancement provides additional clarity regarding which party is responsible for reviewing and initialing each section of the instructions. The revised definitions are intended to help ensure consistent interpretation of the document and reduce potential confusion during the closing process.
  • No changes have been made to the substantive requirements of the Lender’s Closing Instructions. This update is limited to clarifying the roles and responsibilities associated with the initialing requirements throughout the document.

Lightning Docs System Update 6.5.26

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

• As part of ongoing outside counsel reviews, we have made the following amendments that apply to Pennsylvania loans:
  • “State of Pennsylvania” changed to “Commonwealth of Pennsylvania” throughout loan documents to conform to local practice.
  • Reference in documents titled as “Cognovit  [Insert Document Name]” changed to provide that the documents contain a “Warrant of Attorney to Confess Judgment.”  These updates have been made to conform to local practice for the following documents: Security Instrument, Note, and Guaranty.  
  • Security Instrument
    • Notice on top of page 1 updated to include “Fees, Costs” in amounts secured by future advances.
    • New section added regarding future advances. Provides that Borrower may send written notice to Lender to limit certain future advances in accordance with local practice.
    • Added reference in Future Advances to the Pennsylvania statute that provides lenders with greater protection for lien priority.
    • Confession of Judgment – added that a Writ of Possession may be issued not only without a prior writ or proceeding, but also “without the necessity of filing a bond” which conforms to local practice. and allows for a more immediate issuance of a writ.
  • Guaranty – Confession of Judgment section has been expanded to conform to local practice and provide lender greater protection.
• Addition of Acceleration Language in the Security Instrument: As part of our continued dedication to incorporate best practices to protect lenders in our documents, we have added a provision to the Uniform Covenants section of the Security Instrument providing a general statement that the Lender may accelerate the Loan during a continuing Event of Default.
• Indiana Notary Acknowledgment: We have removed the affirmation statement regarding Social Security Numbers from the Indiana notary acknowledgment for documents that provide an Indiana acknowledgment but are not recorded.

Lightning Docs Updates 5.29.26

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

• New Option to Attach a Schedule of Release Prices: We have added an additional option for users to attach a schedule of release prices in conjunction with partial releases as described below.
  • If you select “Insert a table with release prices” in the dropdown of responses for “Minimum Release Price Calculation Method” in the Property Information section of the interview, a new question will appear where you can indicate that you want to attach a separate Schedule of Release Prices rather than using the table that appears in the Loan Agreement.
    
  • If you opt to attach a separate Schedule, a textbox will appear that will allow you to manually enter the information as you would like it to appear in the attached Schedule. Please note that you will not be able to format the text into a table in the textbox. Other than line breaks entered in the textbox, the text will appear unformatted in the loan documents. If you do not enter any text into the textbox, a placeholder page will be inserted after the Loan Agreement with the title “Schedule of Release Prices” at the top.
• Updates to New York Building Loan Agreement, Lien Law, Section 22 Affidavit: We have updated the New York Building Loan Agreement, Lien Law, Section 22 Affidavit to (a) better match the borrower statement with each option under the borrower structure; and (b) improve the display of the loan costs table, including the loan amount.

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.

Lightning Docs Updates 5.8.26

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

• Addition of Subordinate Lienholder Authorization from Borrower: We have created a new optional form, Subordinate Lienholder Authorization from Borrower. The form can be provided to a senior lienholder by the borrower to authorize the release of information to a new subordinate lienholder. Selecting a lien position other than first will make the below question appear.

• Updates to Ohio Documents: As part of ongoing outside counsel reviews we have made various amendments to the following documents for Ohio loans if Ohio is selected as the Property State AND the Governing Law jurisdiction:
  • Compliance Warnings – A statement has been added that a Secured Cognovit Note will be provided, which must be notarized and signed in the Ohio county in which it is to be enforced.
  • Lender’s Closing Instructions – Loan Documents. Title of Secured Note will change to Secured Cognovit Note. Title of Guaranty will change to Cognovit Guaranty for all types.
  • Loan Agreement – Definition of Note updated to include Secured Cognovit Note. A reference to Ohio Revised Code has been added in notice.
  • Note – Section added regarding execution and governance of the Note.
  • Security Instrument – The definition of Note has been updated to include Secured Cognovit Note. Added language for Ohio Revised Code under Sums Advanced to Bear Interest and Be Secured by Security Instrument.
  • Guaranty – Reference to Ohio Revised Code added in notice.
  • Assignment of Design Professional – Section added regarding jurisdiction.
  • Assignment of Construction Contract – Section added regarding jurisdiction.