Form 1115 Sbl – Fill Out and Use This PDF

Borrower Certificate of Financial Condition

Instructions and Definitions

This Certificate and the attached Schedule A must be signed and delivered to the lender by all Borrowers and Borrower Principals that are organized as of the date of submission of the applicable package. Each individual or entity must complete a separate certificate. For Borrower and Borrower Principals formed after the date of submission, the tax identification number and address must be provided when available.

Borrower means the party obligated to repay the indebtedness secured by the Property. The Borrower must, in Freddie Mac's judgment, have sufficient financial, operational and management capacity.

Borrower Principal means any individual or entity that directly or indirectly controls the Borrower, including

•Any person or entity signing the guaranty, regardless of equity, interest percent or position within the borrowing entity

•Any general partner of a general partnership or a limited partnership

•Any managing member of a LLC

•Any person or entity (limited partner, member or shareholder) with a collective equity interest in the borrower equal to or exceeding 25 percent

•Any joint venture partner of a joint venture

•The settlor (grantor) of a living trust

•Any beneficiary with a 25 percent or more interest in a testamentary (irrevocable) trust

•Any beneficiary with a 25 percent or more interest in an Illinois land trust

Each Borrower and Borrower Principal must certify the accuracy of each item on the Certificate, or note any exceptions either on the Certificate or on a separate attachment.

Any and all loan defaults, workouts, forbearances, foreclosures or bankruptcy filings must be fully disclosed on Schedule A. If necessary, the person completing the Certificate may attach a separate sheet to more fully explain any item. Please consult the lender if you have any questions concerning this Certificate.

Borrower/Borrower Principal and Property Information

Name of Borrower or Borrower Principal

Property that will secure proposed loan

Street Address

City

County

State

Zip Code

Relationship to loan transaction (check applicable item)

The Borrower

Address

Social Security No./Tax ID No.

Title

Ownership %

Select the type of Borrower(s) below:

Limited Partnership

Corporation

LLC

TIC

Freddie Mac Multifamily Form 1115 (03/2014)

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Types of Borrowers that may be acceptable in limited circumstances:

General partnership

Limited liability partnership

Revocable or irrevocable trust, but not a Delaware statutory trust

REIT

Illinois, Indiana, Florida or Virginia land trust provided the Borrower meets lender requirements

Unincorporated business trust, such as a Massachusetts business trust

State of formation/incorporation:

Is the Borrower a Single Purpose Entity (SPE)?

Yes

No

Is the Borrower a Co-op?

Yes

No

Is the Borrower a recycled SPE?

Yes

No

Do the Borrower and SPE Equity Owner have an independent Director/Manager? Yes No

Name of Independent Director/Manager, if applicable:

Title will be vested in: (name of entity)

Title is or will be:

Fee Simple

Leasehold (attach copy of ground lease)

Are there any current pledges of interests in Borrower?

Yes

No

A Borrower Principal

Describe relationship to Borrower

and ownership percentage

Address

Social Security No./Tax ID No.

Title

Ownership %

Foreign citizen or organized outside the US?

Yes

No

If Yes, Jurisdiction:

Name of current lender

1.During the twenty years preceding the date of this Certificate

a.Have you or any other entity of which you were/are a Principal (as defined herein) been in default or been given relief by the lender under the terms of any mortgage loan, contract for deed or the equivalent?

Yes No (if yes, completed Schedule A, Item 1)

b.Have you or any other entity of which you were/are a Principal (as defined herein) been the subject of bankruptcy or insolvency proceedings?

Yes No (if yes, completed Schedule A, Item 2)

c.Have you been suspended, barred or otherwise restricted by any department or agency of the federal government or any state government from doing business with such department or agency?

Yes No (if yes, completed Schedule A, Item 3)

d.Have you been involved in any default, foreclosure, bankruptcy proceeding or litigation involving Freddie Mac?

Yes No (if yes, completed Schedule A, Item 4)

e.Have you ever been identified, or are you presently identified, on the list of specially designated nationals and blocked persons subject to financial sanctions that is maintained by the U.S. Treasury Department Office of Foreign Assets Control?

Yes

No (if yes, attach explanation)

f. In the last five years, has this property been cited for any violations or investigated by any regulatory agency?

Yes

No (if yes, attach explanation)

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2. Currently:
g. Have you any outstanding judgements against you?		Yes		No	(if yes, attach explanation)
h. Are you a defendant in a lawsuit?		Yes		No	(if yes, attach explanation)
i. Pending/existing litigation involving property or borrower?		Yes		No	(if yes, attach explanation)
j. Other secured financing on property or borrower?		Yes		No	(if yes, attach explanation)

3. Have you ever been convicted of a felony or are you presently, to your knowledge, the subject of a complaint or indictment charging a felony? (A felony is defined as any offense punishable by imprisonment for a term exceeding one year but does not include any offense classified as a misdemeanor under the laws of a state and punishable by imprisonment of two years or less.)

		Yes		No (if yes, completed Schedule A, Item 5)
4. Your estimated net worth $
						as of [date]

5a. List all contingent liabilities not included in estimate of net worth in item 4, above. (Contingent liabilities include, without limitation, any pending legal actions in which a judgment could be rendered against you and any unsatisfied judgments, regardless of appeal status.)

Amount $			(If the amount listed exceeds 50% of your estimated net worth, attach explanation)
Description
5b. Are there any current pledges of interests in Borrower Principal (if entity):					Yes		No		N/A (if yes, attach explanation)

6. Provide the estimated total amount of your liquid assets (cash or assets that can be readily converted to cash) as of the date of the estimate of net worth provided in item 4, above.

Amount $

To induce the lender to make the loan requested by borrower, I hereby certify (check applicable capacity)

for myself or

on behalf of the undersigned entity that I am a duly authorized representative and that each of the statements made in this Certificate and all information provided on the attached Schedule A is true, complete and correct to the best of my knowledge and belief, and is made in good faith, and I represent that the property will not be used for any illegal or restricted purposes.

Name of Borrower or Borrower Principal

Authorized signature	Date
Typed name of signer	Title of signer

Freddie Mac Multifamily Form 1115 (03/2014)

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Schedule A

Attach separate sheets containing the information required:

Item 1 (Question 1a): For each loan, list

•Project name

•Project address

•Number of units and total square footage

•Ownership role and interest in the project

•Type and source of financing and any subsidy

•Any defaults, mortgage relief, or foreclosures of any loan secured by the project

Item 2 (Question 1b): For each bankruptcy or insolvency proceeding, provide

•Date of filing

•Location of case

•Type of case (e.g., Chapter 7, 11, 13)

•Disposition of case and date of disposition (attach copy of discharge)

•Evidence that debts not discharged in the proceeding have been paid

•Explanation of circumstances resulting in the filing of the petition

Item 3 (Question 1c): For each governmental proceeding, provide

•Name of agency or government department

•Date of proceeding

•Description of nature of proceeding

•Resolution of proceeding

•Attach a copy of any final decision or findings

Item 4 (Question 1d): For each Freddie Mac default, foreclosure, bankruptcy proceeding or litigation, provide

•Project name

•Project address

•Freddie Mac loan number

•Name of case, including court and case number

•Ownership role and interest in the project

•Full description/explanation

•Current status (If resolved, describe resolution.)

Item 5 (Question 3): For each felony offense, provide a full explanation of the date and circumstances.

Item 6 (Question 5a): If your contingent liabilities exceed 50% of your estimated net worth, provide a complete list of your contingent liabilities.

Item 7 (Question 5b): If Borrower Principal is an entity that has pledged any of its membership/partnership interests to secure an obligation (either for itself or another party), provide a detailed description of the pledge, including the identity of the pledgee and the amount/nature of the debt secured by the pledge.

Freddie Mac Multifamily Form 1115 (03/2014)

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