Sale of Mortgage Investments and Loans Made to General Partners or Affiliates. The Partnership may sell existing Mortgage Investments to the General Partners or their Affiliates, but only so long as the Partnership receives net sales proceeds from such sales in an amount equal to the total unpaid balance of principal, accrued interest and other charges owing under such Mortgage Investment, or the fair market value of such Mortgage Investment, whichever is greater. Notwithstanding the foregoing, the General Partners shall be under no obligation to purchase any Mortgage Investment from the Partnership or to guarantee any payments under any Mortgage Investment. Generally, Mortgage Investments will not be made to the General Partners or their Affiliates. However, the Partnership may make the Formation Loans to Redwood Mortgage and may in certain limited circumstances, loan funds to Affiliates to purchase real estate owned by the Partnership as a result of foreclosure.
Appears in 9 contracts
Samples: Subscription Agreement (Redwood Mortgage Investors Viii), Subscription Agreement (Redwood Mortgage Investors Viii), Subscription Agreement (Redwood Mortgage Investors Viii)
