Loan Servicing Following Default. Any Event of Default by Borrower under the Loan Documents shall constitute an Event of Default under all Fractional Interests held by all Lenders. Upon the discovery by Servicer of an Event of Default, Servicer shall promptly notify the Lenders of such Event of Default and, except as provided in Article VII, below, Servicer shall be authorized to take one of the following courses of action: (a) promptly perform all acts and execute all documents or prudent to protect the interests of the Lenders, which may include (but are not limited to) acts and documents necessary to: (i) exercise the power of sale contained in the Security Document, including, without limitation, selecting a foreclosure agent, making demands, accepting reinstatements, seeking relief from any stay of foreclosure proceedings and bidding at any non-judicial foreclosure sale in accordance with in Section 3.3; (ii) defending any litigation which seeks to restrain such non-judicial foreclosure proceedings; (iii) take any actions required to organize a Judicial Foreclosure Meeting in accordance with Section 3.4 (if applicable); (iv) arrange for the Transfer of the Security Property to the Lenders or a Transfer Entity as outlined in Section 4.1, below, and (v) enforce all rights and remedies available to the Lenders with respect to any other collateral for the Loan; (b) negotiate and enter into a forbearance agreement in accordance with reasonable and customary commercial practices if the Servicer determines that such action is necessary or appropriate to protect the interests of the Lenders and the term of such forbearance agreement does not extend more than 90 days from the date Servicer discovers the occurrence of such Event of Default. If Servicer should agree to forbear for 90 days as provided herein and Borrower has not paid all amounts owing under the Loan Documents on or before the end of such 90-day period, then Servicer shall promptly proceed to exercise the power of sale contained in the Security Document as provided in subsection (a) above unless otherwise directed by a Lender Majority; (c) negotiate and enter into a loan extension at maturity in accordance with reasonable and customary commercial practices if Servicer determines that such action is necessary or appropriate to protect the interests of the Lenders, and the extension is conditioned upon the Borrower continuing to make all periodic payments required under the Secured Note over the extension term and the term of such extension does not extend more than six months from the original maturity date of the Secured Note (an “Extension”). If Servicer should agree to an Extension as provided herein and Borrower has not paid all amounts owing under the Loan Documents on or before the end of the Extension period, then Servicer shall promptly proceed to exercise the power of sale contained in the Security Document as provided in subsection (a) above unless otherwise directed by a Lender Majority; (d) accept a deed in lieu of foreclosure from Borrower if doing so would cause the Lenders to incur no greater expense or liability than if Servicer completed a non- judicial foreclosure sale; or (e) file suit or pursue other legal remedies against any borrower or guarantor of the Loan if such action will not impair the Lenders’ security interest in the Security Property.
Appears in 4 contracts
Samples: Loan Servicing and Equity Interest Agreement, Loan Servicing and Equity Interest Agreement, Loan Servicing and Equity Interest Agreement
Loan Servicing Following Default. Any Event of Default by Borrower under the Loan Documents shall constitute an Event of Default under all Fractional Interests held by all Lenders. Upon the discovery by Servicer of the occurrence of an Event of Default, Servicer shall promptly notify the Lenders of such Event of Default and, except as provided in Article VII, Section 15 below, Servicer shall be authorized to take one of the following courses of action:
(a) promptly perform all acts and execute all documents or prudent to protect the interests of the Lenders, which may include (but are not limited to) acts and documents necessary to: (i) exercise the power of sale contained in the Security DocumentDeed of Trust, including, without limitation, selecting a foreclosure agent, making demands, accepting reinstatements, seeking relief from any stay of foreclosure proceedings proceedings, and defending any litigation which seeks to restrain such foreclosure proceedings, and bidding at any non-judicial foreclosure sale in accordance with in Section 3.3; (ii) defending any litigation which seeks to restrain such non-judicial foreclosure proceedings; (iii) take any actions required to organize a Judicial Foreclosure Meeting in accordance with Section 3.4 (if applicable)15; (iviii) arrange for the Transfer of the Security Property to the Lenders or a Transfer Entity as outlined in Section 4.116, below, (iv) defend any litigation which seeks to restrain any non-judicial foreclosure proceedings, and (v) enforce all rights and remedies available to the Lenders with respect to any other collateral for the Loan;
(b) negotiate and enter into a forbearance agreement in accordance with reasonable and customary commercial practices if the (i) Servicer determines that such action is necessary or appropriate to protect the interests of the Lenders and Lenders, (ii) the term of such forbearance agreement does not extend more than 90 days six months from the date Servicer discovers the occurrence of such Event event of Defaultdefault, and (iii) the purpose of such forbearance is to allow Borrower additional time to refinance or sell the Security Property or otherwise arrange to pay all amounts owing under the Loan Documents. If Servicer should agree to forbear for 90 days six months as provided herein and Borrower has not paid all amounts owing under the Loan Documents on or before the end of such 90-day six month period, then Servicer shall promptly proceed to exercise the power of sale contained in the Security Document Deed of Trust as provided in subsection (a) above unless otherwise directed by a Lender Majority;
(c) negotiate amend and enter into a loan extension at maturity modify the Loan Documents to extend the term of the Loan in accordance with reasonable and customary commercial practices if (i) Servicer determines that such action is necessary or appropriate to protect the interests of the Lenders, and the extension is conditioned upon the Borrower continuing to make all periodic payments required under the Secured Note over the extension term and (ii) the term of such extension loan modification does not extend more than six months from the original maturity date of the Secured Note Loan, and (an “Extension”)iii) the purpose of such loan modification is to allow Borrower additional time to refinance or sell the Security Property or otherwise arrange to pay all amounts owing under the Loan Documents. If Servicer should agree to an Extension a six-month loan extension as provided herein and Borrower has not paid all amounts owing under the Loan Documents on or before the end of the Extension such six-month period, then Servicer shall promptly proceed to exercise the power of sale contained in the Security Document Deed of Trust as provided in subsection (a) above unless otherwise directed by a Lender Majority;
(d) accept a deed in lieu of foreclosure from Borrower if doing so would cause the Lenders to incur no greater expense or liability than if Servicer completed a non- judicial foreclosure sale; or
(e) file suit or pursue other legal remedies against any borrower or guarantor guarantors of the Loan if such action will not impair the Lenders’ security interest in the Security Property.
(f) If there is a Construction Loan Agreement applicable to the Loan, Servicer shall, in addition to the rights set forth above, have the right, without first obtaining the written consent of any of the Lenders, to exercise those additional remedies in the Construction Loan Agreement which are supplemental to those available to the Lenders under the Secured Note and Deed of Trust including termination of further disbursement from the construction disbursement account (as outlined in the Construction Loan Agreement), declaring the Loan immediately due and payable, ordering the work stopped if it appears to be proceeding in substantial deviation from the plans and specifications, ordering defaults to be corrected and additional funds added to the construction disbursement account to pay for additional work, and disbursing funds from the construction disbursement account to the Lenders to be credited against the Loan. Servicer may also continue to disburse or otherwise apply any construction funds held in any construction disbursement account in furtherance of the improvements without the written consent of a Lender Majority. The Servicer will not, however, have the authority, without the written consent of a Lender Majority, to enforce any supplemental remedy which would require that, in order to complete or further construction, Lenders expend funds in addition to those held in the construction disbursement account or to become liable for funds advanced or which would require that the Secured Note be subordinated to repayment of funds advanced by others.
Appears in 2 contracts
Samples: Loan Servicing and Equity Interest Agreement, Loan Servicing and Equity Interest Agreement
Loan Servicing Following Default. Any Event of Default by Borrower under the Loan Documents shall constitute an Event of Default under all Fractional Interests held by all Lenders. Upon the discovery by Servicer of the occurrence of an Event of Default, Servicer shall promptly notify the Lenders of such Event of Default and, except as provided in Article VII, Section 15 below, Servicer shall be authorized to take one of the following courses of action:
(a) promptly perform all acts and execute all documents or prudent to protect the interests of the Lenders, which may include (but are not limited to) acts and documents necessary to: (i) exercise the power of sale contained in the Security DocumentDeed of Trust, including, without limitation, selecting a foreclosure agent, making demands, accepting reinstatements, seeking relief from any stay of foreclosure proceedings proceedings, and defending any litigation which seeks to restrain such foreclosure proceedings, and bidding at any non-judicial foreclosure sale in accordance with in Section 3.3; (ii) defending any litigation which seeks to restrain such non-judicial foreclosure proceedings; (iii) take any actions required to organize a Judicial Foreclosure Meeting in accordance with Section 3.4 (if applicable)15; (iviii) arrange for the Transfer of the Security Property to the Lenders or a Transfer Entity as outlined in Section 4.116, below, (iv) defend any litigation which seeks to restrain any non-judicial foreclosure proceedings, and (v) enforce all rights and remedies available to the Lenders with respect to any other collateral for the Loan;
(b) negotiate and enter into a forbearance agreement in accordance with reasonable and customary commercial practices if the (i) Servicer determines that such action is necessary or appropriate to protect the interests of the Lenders and Lenders, (ii) the term of such forbearance agreement does not extend more than 90 days six months from the date Servicer discovers the occurrence of such Event event of Defaultdefault, and (iii) the purpose of such forbearance is to allow Borrower additional time to refinance or sell the Security Property or otherwise arrange to pay all amounts owing under the Loan Documents. If Servicer should agree to forbear for 90 days six months as provided herein and Xxxxxxxx has not paid all amounts owing under the Loan Documents on or before the end of such six month period, then Servicer shall promptly proceed to exercise the power of sale contained in the Deed of Trust as provided in subsection (a) above unless otherwise directed by a Lender Majority;
(c) amend and modify the Loan Documents to extend the term of the Loan in accordance with reasonable and customary commercial practices if (i) Servicer determines that such action is necessary or appropriate to protect the interests of the Lenders, (ii) the term of such loan modification does not extend more than six months from the maturity date of the Loan, and (iii) the purpose of such loan modification is to allow Borrower additional time to refinance or sell the Security Property or otherwise arrange to pay all amounts owing under the Loan Documents. If Servicer should agree to a six-month loan extension as provided herein and Borrower has not paid all amounts owing under the Loan Documents on or before the end of such 90six-day month period, then Servicer shall promptly proceed to exercise the power of sale contained in the Security Document as provided in subsection (a) above unless otherwise directed by a Lender Majority;
(c) negotiate and enter into a loan extension at maturity in accordance with reasonable and customary commercial practices if Servicer determines that such action is necessary or appropriate to protect the interests Deed of the Lenders, and the extension is conditioned upon the Borrower continuing to make all periodic payments required under the Secured Note over the extension term and the term of such extension does not extend more than six months from the original maturity date of the Secured Note (an “Extension”). If Servicer should agree to an Extension as provided herein and Borrower has not paid all amounts owing under the Loan Documents on or before the end of the Extension period, then Servicer shall promptly proceed to exercise the power of sale contained in the Security Document Trust as provided in subsection (a) above unless otherwise directed by a Lender Majority;
(d) accept a deed in lieu of foreclosure from Borrower if doing so would cause the Lenders to incur no greater expense or liability than if Servicer completed a non- judicial foreclosure sale; or
(e) file suit or pursue other legal remedies against any borrower or guarantor guarantors of the Loan if such action will not impair the Lenders’ security interest in the Security Property.
(f) If there is a Construction Loan Agreement applicable to the Loan, Servicer shall, in addition to the rights set forth above, have the right, without first obtaining the written consent of any of the Lenders, to exercise those additional remedies in the Construction Loan Agreement which are supplemental to those available to the Lenders under the Secured Note and Deed of Trust including termination of further disbursement from the construction disbursement account (as outlined in the Construction Loan Agreement), declaring the Loan immediately due and payable, ordering the work stopped if it appears to be proceeding in substantial deviation from the plans and specifications, ordering defaults to be corrected and additional funds added to the construction disbursement account to pay for additional work, and disbursing funds from the construction disbursement account to the Lenders to be credited against the Loan. Servicer may also continue to disburse or otherwise apply any construction funds held in any construction disbursement account in furtherance of the improvements without the written consent of a Lender Majority. The Servicer will not, however, have the authority, without the written consent of a Lender Majority, to enforce any supplemental remedy which would require that, in order to complete or further construction, Lenders expend funds in addition to those held in the construction disbursement account or to become liable for funds advanced or which would require that the Secured Note be subordinated to repayment of funds advanced by others.
Appears in 1 contract
Loan Servicing Following Default. Any Event of Default by Borrower under the Loan Documents shall constitute an Event of Default under all Fractional Interests held by all Lenders. Upon the discovery by Servicer of an Event of Default, Servicer shall promptly notify the Lenders of such Event of Default and, except as provided in Article VII, below, Servicer shall be authorized to take one of the following courses of action:
(a) promptly perform all acts and execute all documents or prudent to protect the interests of the Lenders, which may include (but are not limited to) acts and documents necessary to: (i) exercise the power of sale contained in the Security Document, including, without limitation, selecting a foreclosure agent, making demands, accepting reinstatements, seeking relief from any stay of foreclosure proceedings and bidding at any non-judicial foreclosure sale in accordance with in Section 3.3; (ii) defending any litigation which seeks to restrain such non-non- judicial foreclosure proceedings; (iii) take any actions required to organize a Judicial Foreclosure Meeting in accordance with Section 3.4 (if applicable); (iv) arrange for the Transfer of the Security Property to the Lenders or a Transfer Entity as outlined in Section 4.1, below, and (v) enforce all rights and remedies available to the Lenders with respect to any other collateral for the Loan;
(b) negotiate and enter into a forbearance agreement in accordance with reasonable and customary commercial practices if the Servicer determines that such action is necessary or appropriate to protect the interests of the Lenders and the term of such forbearance agreement does not extend more than 90 days from the date Servicer discovers the occurrence of such Event of Default. If Servicer should agree to forbear for 90 days as provided herein and Borrower has not paid all amounts owing under the Loan Documents on or before the end of such 90-day period, then Servicer shall promptly proceed to exercise the power of sale contained in the Security Document as provided in subsection (a) above unless otherwise directed by a Lender Majority;
(c) negotiate and enter into a loan extension at maturity in accordance with reasonable and customary commercial practices if Servicer determines that such action is necessary or appropriate to protect the interests of the Lenders, and the extension is conditioned upon the Borrower continuing to make all periodic payments required under the Secured Note over the extension term and the term of such extension does not extend more than six months from the original maturity date of the Secured Note (an “Extension”). If Servicer should agree to an Extension as provided herein and Borrower has not paid all amounts owing under the Loan Documents on or before the end of the Extension period, then Servicer shall promptly proceed to exercise the power of sale contained in the Security Document as provided in subsection (a) above unless otherwise directed by a Lender Majority;
(d) accept a deed in lieu of foreclosure from Borrower if doing so would cause the Lenders to incur no greater expense or liability than if Servicer completed a non- non-judicial foreclosure sale; or
(e) file suit or pursue other legal remedies against any borrower or guarantor of the Loan if such action will not impair the Lenders’ security interest in the Security Property.
Appears in 1 contract
