Legal Judgments The Borrower and Operator must each notify their Servicer within two (2) business days of receiving a legal judgment, penalty, or fine against the Project in excess of $50,000. The ability to cover a judgment/penalty/fine will vary based on the size of the project, the available cash, etc. The Servicer will work with the Project to discuss reasons for the judgment and impacts on the financial status of the Project, notifying the AE of outcomes. The Operator must provide the Servicer with an action plan (seeking the guidance, as necessary and appropriate), and Servicer’s must work with Servicer to analyze the impact of the judgment, providing information to the AE of the status, until financial stability is regained. Key Questions Yes No Has the Project received a legal judgment, penalty, or fine in excess of $50,000? Has the Operator provided the Servicer with an action plan to address the situation and to analyze the impact of the judgment? (Until financial stability is regained, the Servicer must regularly provide the N/A AE with status updates.) <<For each answer above, provide a narrative discussion regarding the topic here as per “yes” instructions provided on the first page of this document.>> Threat to Abandon Project The Borrower must notify their Servicer within two (2) business days of any threat to abandon the project when initiated by the Borrower or Operator. This is separate from an inspection/survey decertification. Key Questions Yes No Has the Borrower or Operator notified the Servicer of a threat to abandon the Project? If the threat to abandon the project is from the Operator, has the Borrower been notified? N/A Has the Servicer notified the AE and worked directly with the Project to attempt to mediate a resolution? N/A <<For each above, provide a narrative discussion regarding the topic here as per “yes” answer instructions provided on the first page of this document.>>
Legal Judgments The Borrower and Operator must each notify their Servicer within two (2) business days of receiving a legal judgment, penalty, or fine against the Project in excess of $50,000. The ability to cover a judgment/penalty/fine will vary based on the size of the project, the available cash, etc. The Servicer will work with the Project to discuss reasons for the judgment and impacts on the financial status of the Project, notifying the AE of outcomes. The Operator must provide the Servicer with an action plan (seeking the Servicer’s guidance, as necessary and appropriate), and must work with Servicer to analyze the impact of the judgment, providing information to the AE of the status, until financial stability is regained. Key Questions Yes No Has the Project received a legal judgment, penalty, or fine in excess of $50,000? Has the Operator provided the Servicer with an action plan to address the situation and to analyze the impact of the judgment? (Until financial stability is regained, the Servicer must regularly provide the AE with status updates.) N/A <<For each “yes” answer above, provide a narrative discussion regarding the topic here as per instructions provided on the first page of this document.>> Threat to Abandon Project The Borrower must notify their Servicer within two (2) business days of any threat to abandon the project when initiated by the Borrower or Operator. This is separate from an inspection/survey decertification. Key Questions Yes No Has the Borrower or Operator notified the Servicer of a threat to abandon the Project? If the threat to abandon the project is from the Operator, has the Borrower been notified? N/A Has the Servicer notified the AE and worked directly with the Project to attempt to mediate a resolution? N/A <<For each “yes” answer above, provide a narrative discussion regarding the topic here as per instructions provided on the first page of this document.>>
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