A CNL loan refers to a specific type of mortgage loan defined within a particular contractual context, often involving specific parties and conditions. It is not a universally recognized category of loan like a conventional or FHA mortgage, but rather a term used to describe a set of distinct, pre-arranged financial agreements.
Key Characteristics of CNL Mortgage Loans
Based on contractual definitions, CNL mortgage loans are characterized by several key features that outline their structure and application:
- Type of Loan: These are explicitly defined as mortgage loans. This means they are secured by real property, where the property itself acts as collateral.
- Loan-to-Value (LTV) Cap: The aggregate principal amount for CNL mortgage loans is restricted. It cannot exceed eighty-five percent (85%) of the appraised value of the applicable mortgaged properties. This limit helps manage the lender's risk exposure relative to the asset's valuation.
- Lender Identity: The loans are originated and provided by a Purchaser or an Affiliate of the Purchaser. This indicates a specific corporate entity or its related companies are the source of the financing.
- Borrower Identity: CNL mortgage loans are extended to specific named entities, such as Emeryville Marina, LLC. This suggests that these loans are typically part of a larger business transaction or development project, rather than being broadly available to the general public.
In essence, a CNL loan, as defined, is a tailored financial instrument designed for particular lending relationships and property-backed transactions, adhering to strict valuation limits and specific party involvement.
