STG Short Form Creditors' Rights Questionnaire

1. File/ Guaranty No: ______________________________________
2. Transaction Name: ______________________________________
3. Land Location: ______________________________________
4. Land use:               (describe)
____    Apartments - __________________________________________________   
____    Hotel/ Motel - __________________________________________________ 
____    Industrial - __________________________________________________ 
____    Manufacturing - __________________________________________________
____    Office - __________________________________________________ 
____    Shopping Center - __________________________________________________ 
____    Restaurant - __________________________________________________ 
____    Retail - __________________________________________________ 
____    Vacant Land - If yes, intended use - __________________________________
____    Other - __________________________________________________

5. Structure of Transaction (of both sale and finance, if applicable):
____ Deed in lieu of foreclosure      What consideration being given? _________________________
____ Conveyance to lender or entity related to lender      What consideration being given? __________________________
____ Leveraged buyout      What consideration being given? ___________________________
____ Stock purchase or purchase of part or all of partnership interest
            What consideration being given? _____________________________
____ Sale of real property asset between parties      What consideration being given? _____________________________
____ Purchase money mortgage
____ Any other use of fund   If yes, please describe. _________________________________
____ Construction of mortgage   Are there draws? ____   If yes, who is disbursing? ____________ 
____ Refinance
                If yes, refinancing what debt? _____________________________ Any additional debt? ________                                                                                              
____ Mortgage modification
____ Mortgage securing antecedent debt
____ A mortgage of partnership assets to pay partner(s)
____ A mortgage of corporate assets to pay stockholder(s)
____ Upstream financing
____ Cross-stream financing
____ Downstream financing
____ Recapitalization of a corporation or the entity
____ A guarantee or indemnity mortgage
____ An arm’s length transaction for reasonably equivalent value
____ Title coming through a mortgage foreclosure

If you have checked any of the above choices, please describe the transaction more fully here:
____________________________________________________________________________________
____________________________________________________________________________________

Will the mortgage contain any cross-collateralization or cross-default provisions? _____________
Will the mortgage secure the debt of any person or entity other than the mortgagor? _____________

Please describe the transaction(s) indicated by this questionnaire fact sheet in as much detail as possible and please include a flow chart if available (use and indicate additional page(s) if necessary): ______________________________________________________________________

6. Creditors:
What is the current total amount of unsecured creditors—trade payables, all accounts payable? __________
Please attach a list of accounts payable or other evidence.

7. Parties to Transaction:
Name of buyer ____________________________________________
Name of seller ____________________________________________
Name of lender ____________________________________________

What type of entity is seller? _____________________ Is it publicly traded? _____________                                                                                     
If not publicly traded, what is the telephone number of trader? _____________ and,  
address for seller ____________________________________________                  
What type of entity is buyer/ borrower? ______________________ Is it publicly traded? _______                                                                                               
If not publicly traded, what is the telephone number of buyer/ borrower? _____________ and,
address for buyer/ borrower ____________________________________________   

Will selling/ conveying entity survive this transaction or will it dissolve? _____________   
Is the selling/ conveying entity merging into the buyer? _____________
Is the seller related, in any way, to buyer (e.g. common owners, multiple dealings, etc.)? _____________
Is the seller related, in any way, to lender (e.g. common owners, multiple dealings, etc)? _____________              
Is the borrower related, in any way, to lender (e.g. common owners, multiple dealings, etc.)? ___________        
Is this the seller’s only asset, or substantially all of seller’s assets? _____________           
Is this the borrower’s only asset, or substantially all of borrower’s assets? _____________  
Is the borrower a single purpose entity?  _____________

Is the seller, or any of them, currently in bankruptcy? ______________
Does the seller, or any of them, contemplate or anticipate any bankruptcy proceeding? ______________
Are seller’s financial statements available? ______________                           Are they audited? ______________
Are buyer/ borrower’s financial statements available? ______________        Are they audited? ______________
Is the buyer/ borrower, or any of them, currently in bankruptcy? ______________
Does the borrower, or any of them, contemplate or anticipate any bankruptcy proceedings? ______________
Is borrower profitable______________?                                               Explain _____________________________
Is borrower solvent, excluding good will? ______________             Explain _____________________________
 
9. Purchase price is: ______________________                                                        
The purchase price is being paid as:                                                                      
____ cash to seller
____ part cash/ part other consideration (loan, stock, etc.)  
____ all consideration is other than cash (loan, stock, other property(ies), etc.)     
Amount of seller’s outstanding indebtedness, secured by this property: ____________
Purchase price was determined by:                                                                        
____ Appraisal                             Has a copy been provided to company? ____
____ Negotiation                                                                                                    
____ Other    (describe) __________________________________________________

10. New loan amount is: ______________ Value of land: _____________ Value of all collateral is: ____________    
Amount of borrower’s outstanding indebtedness, secured by this property: ______________________
Original loan amount for borrower’s outstanding indebtedness: ______________________
Payment amount under current indebtedness: ______________________
Payment frequency under current outstanding indebtedness: ______________________
Payment amount under new loan: ______________________
Payment frequency under new loan: ______________________
Terms of loan: ______________________
New loan amount was determined by:              
                                ____ Appraisal               Has copy been provided to company? ____
                                ____ Negotiation
                                ____ Other (describe) ________________________________________
Value of the collateral was determined by:
                                ____ Appraisal                Has copy been provided to company? ____
                                ____ Negotiation
                                ____ Other (describe)
Loan-to-Value ratio: ______________________
What is debt service coverage ratio? ______________________
Any Guarantees? ______________________                             Explain ______________________
Is guarantee general or for carveouts? ______________________
Any bankruptcy saving clause? ______________________   Explain ______________________

11.  Sources of funds for transaction: ______________________
                Equity contribution: ______________________
                Any allocation of funds to particular properties: ______________________

12.  Disbursement and use of funds: ______________________
                Are there written instruction as to the payment of the net sales proceeds to seller? ____________________

Funds from seller’s net proceeds (reflected in an overall percentage) are going to:
____ Seller to pay purchase price
____ Seller’s lender to pay off loan, secured by this property
____ Pay seller’s existing Creditor’s which are not secured by this property
____ Other party or entity, related to seller (explain) ____________________
                                ____ Other (explain) ______________________________________________
Is this a refinance with the loan proceeds paying off existing loan 100% with no excess funds? ____
(If there are excess loan proceeds how are they being disbursed and used?)
Are there written instructions as to the payment of the new loan proceeds to borrower? ____

Funds from borrower’s loan proceeds (reflected in an overall percentage) are going to:
 
____ Seller to pay purchase price     Amount: ____________
____ Seller’s lender to pay off loan, secured by this property    Amount: ____________
____ Pay seller’s existing Creditor’s which are not secured by this property Amount: ____________
____ To, or for benefit of, other party or entity, related to seller (explain) Amount: ____________
____ Borrower, for borrowers benefit Amount: ____________
____ Borrower’s lenders to pay off loan, secured by this property Amount: ____________
____ Pay borrower’s existing Creditors, which are not secured by this property Amount: ____________
____ To, or for benefit of, other party or entity, related to borrow (explain) Amount: ____________
____ Other (explain) ______________________________________________

Please provide copies of loan document, appraisals, income statements and balance sheets if applicable.

Please describe how the funds from this transaction (either sales process, purchase money or loan proceeds are being used (use and indicate additional page(s) if any are necessary):
_______________________________________________________________________________________________________________

Additional information that is, or may be, pertinent to the review of the Creditors’ Rights Coverage (use and indicate additional page(s) if necessary):
_______________________________________________________________________________________________________________

(If signed by seller/transferor or buyer/mortgagor)

The undersigned represents that:

(A) The signer is authorized by the seller/transferor and/or buyer/mortgagor, as applicable, to sign this questionnaire on their behalf, respectively, and
(B) The foregoing statements are true and complete and acknowledges that Stewart Title Guaranty Company will rely upon the statements made herein to amend the coverage of the title insurance policy(ies) to be issued in connection with the above transaction(s).

Signature:              _________________________________
Print Name:            _________________________________
Print Title:              _________________________________

Entity Name:         _________________________________
Address:               _________________________________
                             _________________________________
Phone:                    _________________________________

State of  _________________        )
                                                                                )               §§
County of              _________________        )

 

Sworn to and subscribed before me by _____________________________________, _______________________________ of __________________________________________ on this _______ day of __________________, 200__.

 

__________________________________
Notary Public

 

My Commission Expires: _____________

__________________________

 

Note:  This Acknowledgment should be copied and completed for each signer.

For issuing guidelines on this form, see Guidelines