Priority of Mortgages. The lien securing each Mortgage Investment will not be junior to more than two other encumbrances (a first and, in some cases a second deed of trust) on the real property (the "security property") which is to be used as security for the loan. Although the Partnership may also make wrap-around (or "all-inclusive") Mortgage Investment, those wrap-around Mortgage Investments will include no more than two (2) underlying obligations (See "CERTAIN LEGAL ASPECTS OF Mortgage Investments - Special Considerations in Connection with Junior Encumbrances"). The General Partners anticipate that the Partnership's Mortgage Investments will be diversified as to priority approximately as follows: first mortgages - thirty-five percent (35%); second mortgages - sixty percent (60%); third mortgages - five percent (5%). As of June 30, 1996, of the Partnership's outstanding Mortgage Investment portfolio, forty-two percent (42%) were secured by first mortgages, fifty-six percent (56%) by second mortgages and two percent (2%) by third mortgages.
Appears in 7 contracts
Samples: Limited Partnership Agreement (Redwood Mortgage Investors Viii), Limited Partnership Agreement (Redwood Mortgage Investors Viii), Limited Partnership Agreement (Redwood Mortgage Investors Viii)
