We have issued an update to the system that modified the following:
- After careful consideration and internal deliberation, we have added Texas to the list of states in which we require a spousal consent guaranty the loan (if the guarantor resides in the state). Previously the list only included Alaska, Arizona, Idaho, Louisiana, Nevada, New Mexico, Washington, and Wisconsin. The law in Texas is not as black and white as the other states, in terms of requiring a spousal consent, and out of an abundance of caution, we made the determination that Texas should be included in this list. Lightning Docs will now automatically include a spousal consent should a guarantor reside in the state of TX.
- Modified the Entity Certificate by adding additional indemnity provisions.
- Updated the Due on Sale provision in the Loan and Security Agreement and Secured Note to provide more consistent treatment throughout the documents.
- If NY is the collateral property state, then the paragraph for “non-residential property” gets moved to the very end of the Security Instrument, and the language is slightly modified.
- Added in a Borrower Foreign Investor Affidavit (similar to the Florida version) for Mississippi. Please note, the limitation only applies to agricultural land, however will be provided in all Mississippi loan transactions moving forward.
- Added instructions to Lender’s Closing Instructions, for what title should do with the original Security Instruments after recording (if they should have possession of them).
- Made minor modifications to the user interface, and template language, related to construction complete percentage benchmarks, for construction loans (This was previously only visible if an Assignment of the Construction Contract was selected).
- Added 90 Day Term SOFR as option, plus associated language.