Lightning Docs Updates 2.20.26

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

• *NEW* Ability to add Multiple Collateral Assignments: Currently, Lightning Docs only allows for the collateral assignment of a single contractor and/or design professional agreement. After the update, users can now create multiple collateral assignments of contractor and/or design professional agreements for a single transaction.
  ***PLEASE NOTE THAT THIS FEATURE WILL ONLY BE AVAILABLE IN THE FOLLOWING INSTANCES: ***
  
  (A) NEW TRANSACTIONS
  
  OR
  
  (B) ALL INFORMATION CONCERNING THE CONTRACTOR/DESIGN PROFESSIONAL IS DELETED FROM THE INTERVIEW AND YOU EXIT AND REOPEN THE TRANSACTION.
  

• Update to MERS Language in Assignment: In Assignment to MERS, the following language referencing the note will be removed: “including obligations owed under that certain Secured note (together with any amendments thereto, the ‘Secured Note’).”
  

• New Provision in Loan Agreement – “Payments to Lender”:  It has come to our attention that some users are accepting payments from sources other than the Borrower, Guarantor or any other party that may be obligated to make payments under the Loan Documents (“Non-Obligated Payor”).  This practice may have consequences in the event the Non-Obligated Payor files for bankruptcy, including the bankruptcy trustee taking action against the lender to claw back the payments made by the Non-Obligated Payor to the lender.  The trustee could allege that the payments were fraudulent transfers among other claims.
  
  In order to address this issue and to provide protection to lender, we have added a provision to the Borrower’s Representations and Warranties section of the Loan Agreement (see text below).  Please note that this provision has not been litigated, so there is the possibility that the lender still may be ordered to disgorge the funds.

• Payments to Lender.  Any funds paid on behalf of Borrower, Guarantor or any other party obligated to make a payment to Lender under the Loan Documents (as used in this Section individually an “Obligated Party” and collectively, “Obligated Parties”) by anyone other than the Obligated Parties toward satisfaction of any Secured Obligations may be (1) accepted by Lender, (2) applied in the same manner as though paid by an Obligated Party, (3) be considered by the Obligated Parties, the payor, and Lender as a gift from the payor to the applicable Obligated Party, (4) considered by Lender and the Obligated Parties as if it were paid by an Obligated Party, and not any third party, and (4) create no relationship between the payor and Lender.