High Volatility Commercial Real Estate. If at any time, in the determination of the Mortgagee, the net equity or capital retention of the Mortgagor would require Mortgagee to classify the Mortgaged Property as High Volatility Commercial Real Estate as set forth in Part 217 of Chapter II of title 12 of the Code of Federal Regulations, then within ten (10) days after written demand being issued by the Mortgagee, Mortgagor shall take such actions as may be necessary, including obtaining adequate equity infusion, such that the Mortgaged Property need not be classified as High Volatility Commercial Real Estate. If the Mortgagor fails to take such action, it shall not be an Event of Default, and Mortgagee, as Mortgagee’s sole right and remedy, may increase the interest rate on the Loan by 0.85 percent as of the eleventh (11th) day after such notice and demand is issued.
Appears in 8 contracts
Samples: Mortgage, Security Agreement and Financing Statement (Amrep Corp.), Line of Credit Mortgage (Amrep Corp.), Mortgage, Security Agreement and Financing Statement (Amrep Corp.)
