06.10.2014 20:59:00
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Moody's: CMBS loan documents need to explicitly address "PACE" clean energy loan risk
New York, October 06, 2014 -- Commercial mortgage-backed securities (CMBS) loan documents currently do not have explicit prohibitions barring borrowers from taking out property-assessed clean energy (PACE) loans without the lender's prior consent, which could negatively affect the credit profile of the property given the risks posed by PACE loans, according to a new report from Moody's Investors Service, "PACE Loans: A Green Lien Challenge to CMBS Credit Quality."