Wireless Capital Non-Recourse Loan Agreement
If you are looking for Wireless Capital Partner’s website, please visit www.wirelesscapital.com.
Cell Tower Attorney is a law firm that assists landowners approached by Wireless Capital with negotiating the terms and conditions of a cell site lease purchase agreement. Wireless Capital Partners is a registered trademark of Wireless Capital Partners, LLC. We are not affiliated in any way with Wireless Capital.
If you have been approached by a representative of Wireless Capital interested in purchasing your cell site lease, the following is a description of the standard Wireless Capital Non-Recourse Loan Agreement:
- The Wireless Capital Non-Recourse Loan Agreement is drafted as a non-recourse loan agreement in which Wireless Capital provides a lump-sum payment to the landowner in exchange for the landowner’s promise to pay back the lump-sum payment as well as interest per year in the form of a monthly payment equivalent to the amount the landowner is currently receiving from the telecommunications carrier tenant leasing space on the property.
- Prepayment - the Wireless Capital Non-Recourse Loan Agreement allows the landowner to prepay the loan amount in full on prior written notice, which payment shall consist of i) the remaining unpaid loan amount, ii) all accrued interest, iii) other charges due under the loan documents and iv) a fee equal to the present value on the prepayment date of the interest that would have been due for the months between the prepayment date and the maturity date of the loan.
- Security Agreement - the landowner agrees to execute a security instrument in which the landowner pledges the monthly carrier lease payment as collateral for the landowner’s obligations under the Wireless Capital Non-Recourse Loan Agreement.
- Servicing - the landowner appoints Wireless Capital to act as its exclusive agent with respect to all rights and obligations under the cell tower lease on the property and shall have the right to among other things, collect all rents, enforce all of the landowner’s rights under the Lease, commence any legal proceeding relating to the tenant carrier’s obligations under the Lease, terminate, cancel the Lease for any reason permitted under the Lease, renew the Lease, or grant or deny any assignment or sublet under the Lease by the carrier tenant. Nevertheless, Wireless Capital shall have no liability to the landowner. Upon the effective date of the Wireless Capital Non-Recourse Loan Agreement, the landowner will not exercise any rights of the lessor under the cell site lease.
- Landowner’s Continuing Obligations - the landowner agrees to continue to perform the obligations of the lessor under the cell site lease in a timely manner, will not cause a breach or default under the cell site lease, or perform any act that would interfere with Wireless Capital’s right to collect the rent or exercise any of its rights under the lease, commence any litigation against the carrier, or modify the lease in any respect.
- Cooperation by Landowner - the landowner agrees to provide any information or records as requested by Wireless Capital regarding the lease, grants Wireless Capital access to the leased premises for inspection, and will forward to Wireless Capital any communication delivered to or received by the tenant cell site carrier as well as any other communication or notices relating to the leased premises.
- Successor Lease - the Wireless Capital Non-Recourse Loan Agreement provides that upon expiration or termination of the cell site lease, the landowner agrees to re-lease the leased premises to Wireless Capital on identical terms to the cell site lease on the property, however, the named tenant will be Wireless Capital and the term will expire on the maturity date of the loan. In addition i) Wireless Capital shall have no obligation to pay rent, ii) the lease may be assigned or subleased by Wireless Capital without the landowner’s consent, iii) Wireless Capital will not be required to cure any defaults of the previous carrier tenant, iv) Wireless Capital shall have an easement for access and utility purposes and may use the equipment installed by the existing cell carrier or add new equipment on the premises, as well as vacate or terminate the new lease at any time.
- Events of Default - under the Wireless Capital Non-Recourse Loan Agreement, the landowner shall be deemed in default if: i) it fails to perform any obligation contained in the loan documents for 10 days after written notice ii) it fails to perform any obligation contained in the cell site lease iii) any representation or warranty made in the loan documents is untrue or iv) it files for bankruptcy.
- Assignment - Except for a transfer to a successor owner of the premises, the landowner may not assign or transfer its rights under the Wireless Capital Non-Recourse Loan Agreement without Wireless Capital’s written consent. Conversely, Wireless Capital may assign or transfer its rights in the Wireless Capital Non-Recourse Loan Agreement and all loan documents without notice or consent of the landowner.
Cell Tower Attorney has experience in negotiating these and other similar provisions directly with Wireless Capital Partners. We can assist you in negotiating equitable terms and conditions that put reasonable constraints on the rights of Wireless Capital Partners or other third party purchasers to utilize the leased premises beyond the scope set forth in the original cell site lease as well as protect your existing and future rights and obligations.
If you have been approached, please consider contacting us for assistance in your lease negotiation.
*** If you are looking for Wireless Capital Partner’s website, please visit www.wirelesscapital.com. We are not affiliated in any way with Wireless Capital Partners, LLC***