What are the 'Senior Loan Documents' referenced in the Springhill Suites By Marriott agreement?
Springhill_Suites_By_Marriott Franchise · 2025 FDDAnswer from 2025 FDD Document
| The Senior Loan is evidenced by a certain promissory note from Company to | | Senior Lender ("Note") and is secured by a [Deed of Trust / Mortgage] from Company for the | | benefit of Senior Lender ("Deed of Trust / Mortgage"). The Note, the [Deed of Trust / | | Mortgage] and the other documents executed by Company to evidence or secure the Senior Loan | | are hereinafter collectively referred to as the "Senior Loan Documents." |
Source: Item 17 — , "Renewal, Termination, Transfer, and Dispute Resolution," is amended by the addition of the following paragraph(s) at the conclusion of the Item: (FDD pages 285–553)
What This Means (2025 FDD)
According to the 2025 Springhill Suites By Marriott Franchise Disclosure Document, the Senior Loan Documents are defined within the context of an Assignment of Equity Interests and Security Agreement. This agreement involves Grantors (owners of the Company) and Marriott International Capital Corporation (MICC).
The Senior Loan itself is a mortgage loan provided by a Senior Lender to the Company for the construction and mini-permanent financing of a hotel project. The Senior Loan Documents collectively refer to the promissory note from the Company to the Senior Lender (Note), the Deed of Trust/Mortgage from the Company for the benefit of the Senior Lender, and any other documents executed by the Company to evidence or secure the Senior Loan.
MICC provides credit enhancement for a portion of the Senior Loan, and as a condition, requires the Grantors to execute the Security Agreement. This agreement secures the obligations and indebtedness under the Reimbursement Agreement, Guaranty Agreement, and Hazardous Substances Indemnity Agreement. In essence, the Senior Loan Documents represent the legal framework for the financing of the Springhill Suites By Marriott hotel project, with MICC providing additional credit support and requiring security from the Grantors.