EXECUTION OF MORTGAGE AND NOTE. a. Payments made by the Corporation to the Sponsor under this Agreement shall be evidenced by a Grant Enforcement Note of the Sponsor in the amount of the Award, as defined in Section 7. below, or so much thereof as may be disbursed (hereinafter the "Note"). The Award shall be due and payable upon the occurrence of an Event of Default under this Agreement as defined in Section 17. herein. The Note shall be secured by a Mortgage covering the Project Premises, the Project improvements, and any other property and rights of the Sponsor described in the Mortgage (hereinafter the "Mortgage"). b. Upon the recording of the Mortgage in favor of the Corporation, then, except for the property secured by the Mortgage the Corporation shall not have recourse for repayment of the Award or any other performance from the assets of the Sponsor; provided, however, that there shall be no such limitation of recourse in the event of malfeasance, fraud or criminal acts by the Sponsor, its officers, employees, or agents in connection with the establishment or operation of the Project or performance under this Agreement. c. The Note and Mortgage shall be upon such forms and contain such terms, covenants and conditions as the Corporation shall determine are needed for the Corporation's protection, and the Mortgage shall be executed and acknowledged by all parties necessary to make it, as determined by the Corporation, a valid lien against the Sponsor's estate and interest in and to the Project Premises, the fixtures and personal property to be covered thereby for all sums advanced, free and clear of all liens, encumbrances and security instruments other than those, if any, to which the Corporation has already expressly agreed or may hereafter accept. d. If required by the Corporation, the Sponsor shall deliver to the Corporation either: (i) a title search satisfactory to the Corporation; (ii) a title insurance policy of a title insurance company approved by the Corporation (hereinafter the "Title Company") in, or aggregating, the amount of the Award (or, in lieu of a policy, a title binder or certificate of title containing the Title Company's agreement to issue such a policy) insuring that the Corporation's Mortgage is a valid lien on the Premises, subject only to such exceptions as shall be approved by the Corporation's attorneys, and otherwise in form and substance satisfactory to and approved by the Corporation; or (iii) a title insurance policy insuring Sponsor's title to the project premises. The Corporation may require that the Title Company's searches shall be continued to the date of each disbursement and, as a condition to the making of such disbursement, that such title continuations shall disclose only such title exceptions as shall then be approved by the Corporation's attorneys and the Corporation shall be provided with such endorsements or other agreements of supplemental insurances as it shall require at the time of each disbursement. e. The Sponsor shall execute the Note and Mortgage in favor of the Corporation upon final execution of this Agreement, and shall record the Mortgage upon the assumption by the Sponsor of title to the Project Premises, or upon notification by the Corporation of the execution of this Agreement, whichever is later, or at such other time as the Corporation determines is necessary for its protection. f. The Sponsor upon the execution of the Mortgage shall cause the Mortgage to be filed, registered or recorded in such manner and in such places as may be required by any present or future law in order to publish notice of and fully protect the lien of the Mortgage, and the interest of the Corporation, as Mortgagee, in the Project Premises. g. Apart from the execution of the Mortgage and Note in the Corporation's favor the Sponsor may not transfer title to, or the right to possession of, or otherwise assign, encumber, convey, sublet, mortgage or dispose of the Project Premises until after the completion of its obligations hereunder without the prior written consent of the Corporation, which consent shall be in the sole discretion of the Corporation and may be conditioned upon such terms as the Corporation deems necessary to satisfy the requirements of the HHAP, including, but not limited to, execution by the transferee of such agreements and/or other documents as the Corporation may require to assure the transferee's carrying out of the provisions of this Agreement. h. The Sponsor will provide in any approved mortgage, deed of trust, security agreement, loan agreement, credit agreement or other instrument executed in connection with the Project, with a party other than the Corporation, that, in the event of any default under any such instrument, the mortgagee, lender or lessor, as the case may be, shall simultaneously send to the Corporation a copy of any notice of default sent to the Sponsor and shall provide the Corporation reasonable opportunity, but not the obligation, to cure such default. Any sums expended by the Corporation in its efforts to cure any such default shall be added to the outstanding Award amount and obligation of the Sponsor's Note. i. Upon the completion by the Sponsor of its obligations under this Agreement the Corporation will provide to the Sponsor a document, in a recordable form, evidencing the satisfaction of the Mortgage.
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Samples: Final Award Agreement, Final Award Agreement, Final Award Agreement
EXECUTION OF MORTGAGE AND NOTE. a. Payments made by the Corporation to the Sponsor under this Agreement AGREEMENT shall be evidenced by a Grant Enforcement Note of the Sponsor in the amount of the Award, as defined in Section 7. below, or so much thereof as may be disbursed (hereinafter the "Note"). The Award shall be due and payable upon the occurrence of an Event of Default under this Agreement AGREEMENT as defined in Section 17. herein. The Note shall be secured by a Mortgage covering the Project Premises, the Project improvements, and any other property and rights of the Sponsor described in the Mortgage (hereinafter the "Mortgage").
b. Upon the recording of the Mortgage in favor of the Corporation, then, except for the property secured by the Mortgage the Corporation shall not have recourse for repayment of the Award or any other performance from the assets of the Sponsor; provided, however, that there shall be no such limitation of recourse in the event of malfeasance, fraud or criminal acts by the Sponsor, its officers, employees, or agents in connection with the establishment or operation of the Project or performance under this AgreementAGREEMENT.
c. The Note and Mortgage shall be upon such forms and contain such terms, covenants and conditions as the Corporation shall determine are needed for the Corporation's protection, and the Mortgage shall be executed and acknowledged by all parties necessary to make it, as determined by the Corporation, a valid lien against the Sponsor's estate and interest in and to the Project Premises, the fixtures and personal property to be covered thereby for all sums advanced, free and clear of all liens, encumbrances and security instruments other than those, if any, to which the Corporation has already expressly agreed or may hereafter accept.
d. If required by the Corporation, the Sponsor shall deliver to the Corporation either: (i) a title search satisfactory to the Corporation; (ii) a title insurance policy of a title insurance company approved by the Corporation (hereinafter the "Title Company") in, or aggregating, the amount of the Award (or, in lieu of a policy, a title binder or certificate of title containing the Title Company's agreement to issue such a policy) insuring that the Corporation's Mortgage is a valid lien on the Premises, subject only to such exceptions as shall be approved by the Corporation's attorneys, and otherwise in form and substance satisfactory to and approved by the Corporation; or (iii) a title insurance policy insuring Sponsor's title to the project premises. The Corporation may require that the Title Company's searches shall be continued to the date of each disbursement and, as a condition to the making of such disbursement, that such title continuations shall disclose only such title exceptions as shall then be approved by the Corporation's attorneys and the Corporation shall be provided with such endorsements or other agreements of supplemental insurances as it shall require at the time of each disbursement.
e. The Sponsor shall execute the Note and Mortgage in favor of the Corporation upon final execution of this AgreementAGREEMENT, and shall record the Mortgage upon the assumption by the Sponsor of title to the Project Premises, or upon notification by the Corporation of the execution of this AgreementAGREEMENT, whichever is later, or at such other time as the Corporation determines is necessary for its protection.
f. The Sponsor upon the execution of the Mortgage shall cause the Mortgage to be filed, registered or recorded in such manner and in such places as may be required by any present or future law in order to publish notice of and fully protect the lien of the Mortgage, and the interest of the Corporation, as Mortgagee, in the Project Premises.
g. Apart from the execution of the Mortgage and Note in the Corporation's favor the Sponsor may not transfer title to, or the right to possession of, or otherwise assign, encumber, convey, sublet, mortgage or dispose of the Project Premises until after the completion of its obligations hereunder without the prior written consent of the Corporation, which consent shall be in the sole discretion of the Corporation and may be conditioned upon such terms as the Corporation deems necessary to satisfy the requirements of the HHAP, including, but not limited to, execution by the transferee of such agreements and/or other documents as the Corporation may require to assure the transferee's carrying out of the provisions of this AgreementAGREEMENT.
h. The Sponsor will provide in any approved mortgage, deed of trust, security agreement, loan agreement, credit agreement or other instrument executed in connection with the Project, with a party other than the Corporation, that, in the event of any default under any such instrument, the mortgagee, lender or lessor, as the case may be, shall simultaneously send to the Corporation a copy of any notice of default sent to the Sponsor and shall provide the Corporation reasonable opportunity, but not the obligation, to cure such default. Any sums expended by the Corporation in its efforts to cure any such default shall be added to the outstanding Award amount and obligation of the Sponsor's Note.
i. Upon the completion by the Sponsor of its obligations under this Agreement AGREEMENT the Corporation will provide to the Sponsor a document, in a recordable form, evidencing the satisfaction of the Mortgage.
Appears in 1 contract
Samples: Final Award Agreement