Asset Value and Collateralization Level

Two appraisal companies will be selected to carry out each asset appraisal to determine adjusted fair market values of the land along with the replacement value of any existing structures. Additionally, the appraisals will determine a 180-day liquidation valuation. The average of the two appraisals will be used to determine asset value, and the average of the two liquidation valuations will be used to determine the asset liquidation value. Based on the type of asset, location, age, operational risk, and other factors, a score will be assigned to each asset. This score will represent the anticipated liquidity of the asset as well as the discount applied to each asset’s valuation. The higher the liquidity score, the lower the applicable discount to the asset valuation. Likewise, the lower the liquidity score, the higher the discount to the asset valuation. After determining a final liquidity score, the associated discount will be applied to the overall average asset valuation. A borrower would then be eligible for a liquidity facility of up to 50% of the discounted average asset valuation, provided that such valuation falls at least 25% below the average 180 liquidation valuation.