Under the Embassy Suites agreement, what does 'Sanctioned Person' mean in relation to the lender?

According to Embassy Suites's 2025 Franchise Disclosure Document, a 'Sanctioned Person' in relation to a lender is defined within the context of a lender estoppel and release agreement. Specifically, the lender must certify to Embassy Suites that they are not a Sanctioned Person.

A 'Sanctioned Person' is defined as any person, entity, or government, including those with control over such persons or entities, or acting on behalf of such persons or entities, who is subject to trade restrictions. These 'Trade Restrictions' encompass trade, economic, or investment sanctions, export controls, anti-terrorism measures, nonproliferation efforts, anti-money laundering regulations, and similar restrictions. These restrictions are enforced pursuant to laws, rules, and regulations imposed under laws to which the parties involved are subject.

For a prospective Embassy Suites franchisee, this definition is important because it ensures that any lender involved in financing the franchise is not subject to restrictions that could impede their ability to fulfill their obligations under the loan agreement. This provision protects Embassy Suites from potential legal or financial complications arising from dealing with entities or individuals under trade restrictions, ensuring the stability and legality of financial transactions related to the franchise.