Structuring Cross-Collateral/Cross-Default Real Estate Loans
Single vs. Multiple Mortgages; Partial Prepayment and Partial Release; Intercreditor Agreements for Senior-Junior Lien Positions
About the Course
Introduction
This CLE course will guide real estate counsel on proper structuring and documentation of cross-collateral/cross-default loans. The panel will discuss key provisions regarding prepayment/defeasance, partial release of collateral, reserves, and other complexities presented by crossed loans. The panel will also address structuring intercreditor agreements to minimize priority disputes.
Description
Cross-collateralization is common in real estate finance transactions where the borrower owns multiple properties that it mortgages as collateral for a single loan. Affiliated borrowers may also agree to cross-default and cross-collateralize separate loans, consolidating separate loans into one transaction for the benefit of the lender.
Provisions regarding partial prepayment, defeasance, and releases of collateral can be intensively negotiated in crossed loan structures and must be drafted with care. Counsel must tailor reserve provisions to address potential expenditures at multiple properties. Complex intangible and recording tax calculations may be required where properties are mortgaged in multiple states.
Cross-collateralization expands the potential liability of each affiliated borrower and each guarantor to encompass an entire loan portfolio. It can also wreak havoc after a borrower's default or bankruptcy when there are also senior and second lien or mezzanine loans. Counsel for first and second or mezzanine lienholders must carefully evaluate their respective positions and delineate their respective rights concerning each borrower and each property.
Listen as our authoritative panel guides you through the structuring and documentation of cross-collateral/cross-default real estate financing transactions, negotiating intercreditor agreements, and best practices for protecting liens post-default or bankruptcy.
Presented By
Mr. Barksdale has over 35 years of experience advising clients on real estate finance and investment matters. He represents institutional investors that deploy capital into real estate, whether in the form of debt and/or equity. This includes representing both lenders and borrowers in finance transactions; institutional investors in the acquisition, disposition, and development of every product type in the real estate industry; and complex real estate matters of all varieties.
Mr. Halverson focuses his practice on commercial real estate and finance matters. He represents REITs in healthcare real estate acquisition, development, leasing and commercial lending programs, co-managing a team of lawyers and paralegals tasked with review and negotiation of medical office building leases for REIT landlords. Mr. Halverson leads a team of lawyers who serve as lead counsel to a national bank, assisting their community development lending platform to provide comprehensive lending services in affordable multifamily housing construction utilizing LIHTCs. His banking team also represents multiple super-regional banks in their general commercial lending and healthcare lending platforms, including loans to finance senior living, skilled-nursing, retirement communities and mergers and acquisitions. Mr. Halverson actively serves in firm leadership positions and routinely speaks on real estate finance issues at the University of Colorado School of Law and the University of Denver School of Law as well as continuing legal education seminars.
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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Date + Time
- event
Tuesday, March 31, 2026
- schedule
1:00 p.m. ET./10:00 a.m. PT
I. Structuring and documenting cross-collateralization and cross-default loans
A. Cross-collateral provisions: single vs. multiple mortgages
B. Cross-default provisions: single vs. multiple borrowers
C. Prepayment, defeasance, partial releases of collateral
D. Reserves
E. Multistate transactions: tax concerns
II. Key negotiating points for borrowers and lenders
III. Intercreditor agreements in cross-collateralized deals
IV. Enforceability of cross-collateral provisions after default
V. Enforceability of cross-collateral provisions in bankruptcy
VI. Practitioner pointers and key takeaways
The panel will review these and other key issues:
- How can senior lenders maximize the effectiveness of a cross-collateral/cross-default provision in a senior loan?
- What are the prepayment, defeasance, partial release, and other concerns associated with crossed loans?
- What are key considerations and strategies for negotiating intercreditor agreements to minimize lender priority disputes?
