1.  In the last recital of the Master Lease SNDA (HUD-92333-ORCF), should the word “other” be “otherwise?” (12/13/13)

Yes, in the last recital, the word “other” was corrected to be “otherwise.”  A corrected document will be posted soon.

 2.  Section 5, paragraph (4)(A) of the Master Lease SNDA (HUD-92333-ORCF) capitalizes the term Healthcare Facilities.  This term should not be capitalized; the document should refer to all healthcare facilities that will remain subject to the Master Lease. (12/13/13)

We agree.  The scrivener's error has been corrected, and the corrected document will be posted soon.

 3.  In the first paragraph of the Master Lease SNDA (HUD-92333-ORCF), the word "as" should be added before the word "borrowers" in the second line. (12/13/13)

We agree.  This scrivener's error has been corrected, and the corrected document will be posted soon.

 4.  This question involves the new form Master Lease SNDA.  I am working on a transaction with two projects being added to an existing Master Lease structure.  Based on the new document implementation matrix, the new form Master Lease SNDA is required.  Should all projects be subject to the new form Master Lease SNDA, including those projects already closed, as well as the two projects being added and any future projects?  Or should only the projects part of the current transaction and future projects be included in the new form Master Lease SNDA? (1/28/14)

Only the new projects are subject to the new SNDA. The old projects (those that have already closed using the old documents) do not need to be added to the new SNDA.

 5.  When projects enter a portfolio that utilizes the 2013 Master Lease SNDA (HUD-92333-ORCF), does the document need to be replaced with the 2014 Master Lease SNDA, or can the existing SNDA simply be amended to reflect the fact that new entities are being joined to it? The New Document Transition Matrix states that form 92333-ORCF must be utilized. Here, 92333-ORCF was utilized; however it is not the current version of the form.

The Transition Matrix appears to base the update requirement around when the new forms came out in 2013, not when the updates were issued in 2014.  Thus, I’m not sure whether we need to start from scratch on the SNDA, or --as Lender’s Counsel proposed—can simply lightly amend the existing SNDA so that it also covers the new projects. (5/15/17)

The new owners joining the master lease must sign the 2014 version of the Master Lease SNDA.  The existing owners will continue to be bound by the 2013 version of the Master Lease SNDA, i.e., the document they signed at closing. 

For purposes of interpreting our previous FAQs and the Transition Matrix, please note that the term “new documents” refers to the latest versions of ORCF’s closing documents.