Transaction Documents Reference Guide

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Transaction Documents Reference Guide
Ensuring quality homes for service members and
their families
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Some documents are used more frequently than
others

• Big 3
• Lease of Property/Use
• Operating Agreement
• Lockbox Agreement

• Core documents
• Lease of Property
• Use Agreement
• Operating Agreement
• Lockbox Agreement
• Forward Commitment
• Direct Loan
• Intercreditor Agreement
• Security Agreement
• Loan Guaranty

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Each document has a purpose

• Lease of Property defines stakeholder
  relations/responsibility, obligations and term
  (Government land)
• Use Agreement defines stakeholder
  relations/responsibility, obligations and term
  (Private Land)
• Operating Agreement outlines standard operation
  procedures
• Lockbox Agreement defines lockbox accounts and
  cash flow

All documents individually tailored by project!
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Each document has a purpose

• Forward Commitment defines requirements to pay
  construction/private loan
• Direct Loan defines Government Loan terms
• Intercreditor Agreement defines the loan
  hierarchy/relationship
• Security Agreement identifies project payment
  obligations
• Loan Guaranty defines governments base closure
  guaranty terms

Information Overlaps!