What is the deadline for the lender to notify Embassy Suites of a loan transfer to a trustee in a securitization?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) the trustee in a securitization if Lender (i) directly transfers the Loan to the trustee and (ii) gives notice to Franchisor within thirty (30) days of the transfer, identifying the new "Lender" and the new address for notice.
If Lender fully complies with the provisions of this Subparagraph, Franchisor will recognize the trustee as "Lender" under this letter agreement; but Franchisor may, in its discretion, reject any notice that is not sent by Lender or that is not sent in a timely manner in accordance with this Subparagraph.
Source: Item 23 — RECEIPTS (FDD pages 97–305)
What This Means (2025 FDD)
According to Embassy Suites's 2025 Franchise Disclosure Document, if a lender directly transfers a loan to a trustee in a securitization, the lender must notify Embassy Suites within thirty (30) days of the transfer. The notification should identify the new lender and provide the new address for notices.
Embassy Suites requires this notification to keep its records accurate and to ensure that all communications are directed to the appropriate party. If the lender complies with these provisions, Embassy Suites will recognize the trustee as the new lender under the letter agreement.
However, Embassy Suites retains the discretion to reject any notice that is not sent by the original lender or if the notice is not sent within the specified 30-day timeframe. This ensures that Embassy Suites maintains control over who it recognizes as the lender and that it receives timely and accurate information.