-Q-

Qualified Institutional Buyer - A QIB is defined within the meaning of Rule 144A under the Securities Act. A QIB must have a minimum net worth, be involved in and knowledgeable of the risks of the investment and investors for their own account or for the account of another QIB. Most CMBS can only be sold to QIBs.

Qualified Mortgage - This includes any obligation (including any participation or certificate of beneficial ownership interest therein) which is principally secured by an interest in real property and which is either (I) transferred to the REMIC on the startup date, or (ii) purchased by the REMIC within the three month period beginning as of the startup day (except as provided in any regulations published) is pursuant to a fixed price contract in effect on the startup day. Additional obligations qualifying as secured by real property for the purposes of being termed a Qualified Mortgage include 1.) obligations secured by stock held by tenants-stockholder in a cooperative housing corporation, 2.) debt securities backed by mortgages on timeshare ownership interests in a condominium development, and 3.) REMIC regular interest (not residual interest) transferred to the REMIC on the startup day in exchange for any interest in the REMIC.

Qualified Reserve Asset - An intangible asset held for investment as part of a “qualified reserve fund” which is defined in the Code as any reasonably required reserve to provide for full payment of expenses of the REMIC or amounts due on regular interests in the event of defaults on qualified mortgages or lower than expected returns on cash flow investments. The creditworthiness of the qualified mortgages and the extent and nature of any guarantee are factors to be considered in determining the reasonableness of the amount of reserve. The reserve must be reduced timely as payments on the qualified mortgages are received.

Quote Expiration Date - Identifies the date on which the Loan Quote expires.

Back to Top