Make-Whole Premium Clause
(Loan Agreement) (Pro-Lender)

Summary

This make-whole premium clause may be included in a loan agreement and entitles the lender to the payment of a make-whole premium upon acceleration of the debt. Drafted in favor of the lender, the clause also provides for the payment of the make-whole premium in the event the promissory note is satisfied or released by foreclosure. The capitalized terms used in this clause should be conformed to the defined terms in the relevant loan agreement. For a full listing of key content covering acquisition financing, see Junior Associate Real Estate Resource Kit (Acquisition Finance). See Make-Whole and No-Call Provisions in Bankruptcy for a discussion of make-whole premiums.