2.  May we change the Master Tenant Regulatory Agreement to include language substantially similar to the language found in Section 24 of the Operator Regulatory Agreement (quoted below)?  The same language is found in both the Borrower's Regulatory Agreement (see Section 36(e)) and the Operator Regulatory Agreement (see Section 24). For consistency purposes, the client requests that such language also be included in the Master Tenant Regulatory Agreement.
 
MASTER LEASE SUBORDINATION [NON-DISTRUBANCE AND ATTORNMENT] AGREEMENT.  [If a master lease structure, include the appropriate provisions (SNDA used if there is no identity of interest between Borrower and Master Tenant or Operator, Subordination Agreement used if there is an identity of interest):  HUD agrees to honor the provisions of [Sections 4, 5, and 7 of that certain Master Lease Subordination, Non-Disturbance and Attornment Agreement] OR [Section 5 of that certain Master Lease Subordination Agreement] relating to the Project by and between Lender and Borrower, among others, insofar as such sections call for HUD’s consent or the release of the Project from the Master Lease and/or the Loan Documents, on the terms and subject to the limitations set forth in such sections.]  (9/19/14)

 

 

 

 

 

We agree.  This scrivener's error has been corrected by removing the brackets around the term "Master Tenant" in the definition of Borrower-Operator Agreement.  The corrected document will be posted soon.

 

 

2.  May we change the Master Tenant Regulatory Agreement to include language substantially similar to the language found in Section 24 of the Operator Regulatory Agreement (quoted below)?  The same language is found in both the Borrower's Regulatory Agreement (see Section 36(e)) and the Operator Regulatory Agreement (see Section 24). For consistency purposes, the client requests that such language also be included in the Master Tenant Regulatory Agreement.
 
MASTER LEASE SUBORDINATION [NON-DISTRUBANCE AND ATTORNMENT] AGREEMENT.  [If a master lease structure, include the appropriate provisions (SNDA used if there is no identity of interest between Borrower and Master Tenant or Operator, Subordination Agreement used if there is an identity of interest):  HUD agrees to honor the provisions of [Sections 4, 5, and 7 of that certain Master Lease Subordination, Non-Disturbance and Attornment Agreement] OR [Section 5 of that certain Master Lease Subordination Agreement] relating to the Project by and between Lender and Borrower, among others, insofar as such sections call for HUD’s consent or the release of the Project from the Master Lease and/or the Loan Documents, on the terms and subject to the limitations set forth in such sections.]  (9/19/14)

 

No, there is no need for this language to be added to the Master Tenant’s Regulatory Agreement.  This language is designed to confirm HUD’s agreement with the provisions for releasing a project from the master lease.  The Borrower and Operator, more so than the Master Tenant, are the parties that will be most impacted by HUD’s consent to release a project from the master lease.  In the Borrower and Operator Regulatory Agreements, HUD confirms that it will abide by the provisions regarding release in the Master Lease Subordination [Non-Disturbance and Attornment]