medium · Asset-Backed Securities
A CMBS loan is in special servicing. While the PSA-defined control period remains active, the controlling-class representative wants to change the special servicer.
Assuming the proposed successor satisfies the PSA’s eligibility, notice, rating, and appointment conditions, which right may the representative exercise?
- It may prohibit every appraisal-reduction calculation for the specially serviced loan while control remains active.
- It may replace the special servicer with the eligible successor under the PSA conditions.
- It may require the senior certificates to buy the controlling class at par immediately.
- It may forgive loan principal unilaterally without applying the servicing standard.
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