DENVER-A new agreement allows Apartment Investment and Management Co., and two of its subsidiaries Aimco/Bethesda Holdings Inc and NHP Management Co., to borrow up to $100 million under an amended revolving loan agreement. And that's exactly what the locally based apartment REIT, one of the largest in the country, did.

The $100-million loan bears interest at a rate of either Libor plus 1.75% per annum, or a base rate (determined by the federal funds rate or Bank of America's prime rate) plus 0.25% per annum, as selected by the borrowers. The additional term loans mature on Nov. 2, 2009. Proceeds from the additional term loan are being used to repay outstanding revolving loans under the credit agreement, according to a document filed with the Securities and Exchange Commission.

As with other loans under the credit agreement, the lenders may accelerate the loan if, among other things: The borrowers fail to make payments when due; material defaults occur under other debt agreements; certain bankruptcy or insolvency events occur; material judgments against the borrowers or their subsidiaries occur; the borrowers or their subsidiaries fail to comply with certain covenants (subject to applicable grace periods in some cases); indebtedness is incurred in violation of the covenants; or prohibited liens arise.