Free Assumability. This agreement is free of any restrictions that would prevent the homeowner from freely transferring their Property. In the event of a foreclosure on the Property, your lender has the right (but not the obligation) to do ONE of the following: (i) terminate this Agreement and require SolarCity to remove the System subject to your obligations under Sections 15 and 16; (ii) become a beneficiary (but not obligor) of your Agreement free of charge (i.e., receive power from the System and enforce the Limited Warranty but not have the obligation to make payment, which obligation will remain with you – if you don’t make timely payment you will be in default under Section 15 and SolarCity can terminate, remove the System and take all other remedies it has under Section 16); (iii) enter into a new Agreement with SolarCity on terms no less favorable than the current Agreement; or (iv) require transfer of the Agreement under Section 12 to a subsequent purchaser of the Property. SolarCity will not prohibit the sale, conveyance or refinancing of the Property. SolarCity may choose to file in the real estate records a UCC-1 financing statement (“Fixture Filing”) that preserves their rights in the System. The Fixture Filing is intended only to give notice of its rights relating to the System and is not a lien or encumbrance against the Property. SolarCity shall explain the Fixture Filing to any subsequent purchasers of the Property and any related lenders as requested. SolarCity shall also accommodate reasonable requests from lenders or title companies to facilitate a purchase, financing or refinancing of the Property.
Appears in 6 contracts
Samples: Ppa Transfer Agreement, Solar Lease Agreement, Lease Transfer Agreement
