Charlotte partner Virginia “Ginger” Rolfes will serve as a panelist during a Strafford webinar to discuss the mechanics of future advance clauses in commercial real estate lending. A panel will analyze the types of events future advance clauses typically address, the draw conditions that must be negotiated between the parties, and the complex dynamics of making additional loan disbursements where the loan has been syndicated or securitized.

The panel will review these and other important questions:

• What are the advantages and disadvantages of a future advance clause vs. an earnout reserve funded at closing?
• What are the different types of conditions attached to future advances, and what are the key drafting points?
• How should approval and disbursement of a future advance be documented in the loan structure with multiple lenders?
• Why should the initial advance and future advance be bifurcated for securitization purposes, and what other issues need to be addressed?

Rolfes is a real estate and finance attorney with more than 15 years of experience. She is experienced in commercial lending, asset management, finance, leasing, and general real estate matters. She has experience in originating commercial real estate loans that are securitized and sold on the bond market (also known as commercial mortgage backed securities or CMBS). Rolfes represents banks and other lending institutions making loans on commercial properties such as office developments, retail centers, hotels, and manufactured housing complexes, among others. She also works with tenants in the negotiation of a variety of leases and related issues and regional developers in the purchase and sale of commercial properties.