Common use of Rights of Mortgagees Clause in Contracts

Rights of Mortgagees. (a) In addition to the provisions of Exhibit D to the Ground Lease, and notwithstanding anything herein to the contrary, but subject to the next succeeding paragraph hereof, if the holder of record of a first mortgage (as used herein, a “mortgage” shall mean any Permitted Mortgage, as defined in the Ground Lease, granted by Homeowner) granted to a state or national bank, state or federal savings and loan association, cooperative bank, mortgage company, trust company, insurance company or other institutional lender or its successors or assigns (other than the Homeowner, or any person related to the Homeowner by blood, adoption or marriage, or any entity in which the Homeowner has a financial interest) shall acquire the Home and/or the Homeowner’s interest in the Leased Land by reason of foreclosure (as used herein “foreclosure shall include other similar remedial action under the provisions of such mortgage) or upon conveyance of the Home and/or assignment of the Homeowner’s interest in the Leased Land in lieu of foreclosure, and provided that the holder of such mortgage has given the Municipality not less than (60) days prior written notice of its intention to foreclose upon its mortgage or to accept a conveyance of the Home and/or accept assignment of the Homeowner’s interest in the Leased Land in lieu of foreclosure, the rights and restrictions contained in this Exhibit F-Restrictions shall terminate; such termination to also occur in the event that any purchaser (other than the Homeowner or any person related to the Homeowner by blood, adoption or marriage, or any entity in which the Homeowner has a financial interest) acquires the Home and/or the Homeowner’s interest in the Leased Land at a foreclosure sale conducted by such holder, or any purchaser (other than the Homeowner or any person related to the Homeowner by blood, adoption or marriage, or any entity in which the Homeowner has a financial interest) acquires the Home and/or the Homeowner’s interest in the Leased Land from such holder following foreclosure, and such Home and/or the Homeowner’s interest in the Leased Land shall thereupon and thereafter be free from all such rights and restrictions. (b) In the event such holder conducts a foreclosure or other proceeding enforcing its rights under such Permitted Mortgage and the Home is sold for a price in excess of the greater of (i) the sum of the outstanding principal balance of the note secured by such mortgage plus all approved future advances, accrued interest and all reasonable costs and expenses which the holder is entitled to recover pursuant to the terms of the Permitted Mortgage and the note(s) secured thereby, or (ii) the Purchase Option Price applicable on the date of the sale, such excess shall be paid to the Municipality, for deposit to its Affordable Housing Fund, in consideration of the loss of the value and benefit of the rights and restrictions herein contained held by the Municipality and released by the Municipality pursuant to this section in connection with such proceeding (provided, that in the event that such excess shall be so paid to the Municipality by such holder, the Municipality shall thereafter indemnify to the extent permitted by law such holder against loss or damage to such holder resulting from any claim made by the mortgagor of such mortgage to the extent that such claim is based upon payment of such excess by such holder to the Municipality in accordance herewith, provided that such holder shall give the Municipality prompt notice of any such claim and shall not object to intervention by the Municipality in any proceeding relating thereto.)