easy · Asset-Backed Securities asset-nuances

What is the primary role of the 'Controlling Class' in a CMBS transaction during a default scenario involving a trophy office building?

1. To select and replace the Special Servicer and approve major workout decisions
2. To automatically take title to the property through a 'deed-in-lieu' process
3. To advance delinquent interest payments to the senior Class A-1 bondholders
4. To re-underwrite the loan and force a 'cleanup call' at par

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