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Schedule "H" -Rider
Continued -Page Z
it being agreed that Mortgagor herein shall not be entitled to
receive any proceeds from the sale of any such condominium
unit until Mortgages herein is paid in full or until and unless
the Mortgagee sad Mortgagor herein shaII have entered into a
modification of this mortgage pursuant to which Mortgagor may ~
be entitled to realise a portion of any net proceeds of each
condominium sale . {
"Net proceeds" as used herein is the gross sales price less
any brokerage fees paid to any non-related agent. documentary
stamps on the documents, surtax stamps on the documents,
normal title insurance premiums and recording costs of the
deed of conveyance and releases of mortgages .
II . SUBORDINATION . Mortgagee agrees that this mortgage and the promissory note
secured thereby shall be at all times subordinate and inferior m that certain mortgage of
even date herewith between OCEAN TOWBRS DBVSLOPMBNT CORPORATION, as Mortgagor,
and MBLLON BANK. N:A.. as Mortgagee. including any extensions, modifications or
renewals. replacements or refinancings thereof, securing the original prindpal sum of
i8, 889,700.00. this subordination provision of the mortgage herein being further evi-
denced by a separate Subordination Agreement executed of even date herewith. In
addition, this mortgage shall be second and subordinate to any mortgages hereafter do
be made by MBLLON HANK. N.A. , or any assignee of said Mortgages during construction
of the project and Mortgagee herein will. upon demand from MBLLON BANK. N .A . ,
further subordinate said mortgage tD the lien and terms . covenants and conditions of
the said MBLLON BANK. N.A.. mortgage as may be extended, renewed. modified or
consolidated .
It is agreed by and between the parties hereto that any default of any nature in
the above prior mortgage shall be deemed Lo and shall constitute a default in this
mortgage, but the Mortgagee herein shall have no right do cure any default in the prior
mortgage without the consent of the prior mortgagee.
In the event of foreclosure of this mortgage. the Mortgagee herein covenants
and agrees that provided the MBLLON BANK. N.A. , mortgage is then outstanding and
unpaid, (i) no tenants-under leases of all or any part of the Mortgaged Property will
be made parties defendant nor will any other action be taken with respect to such tenants
~ which would result in the termination of their leases or tenancies without prior written
~ consent of MBLLON HANK. N . A and (ii) the rents . income . revenues . issues and pro- ~
~ fits issuing from the Mortgaged Property. or from any lease of all or any part thereof,
{ shall not be collected, except through a Receiver appointed by a court after notice of ~
application for such appointment has been given m MBLLON BANK . N .A . ; the money ~
collected by the Receiver shall be first applied and used for the payment of interest and
principal due and owing MSLLON BANK , N . A . , under its mortgage and the indebtedness
secured thereby, real estate taxes, water rates, sewer rates, assessments or other
governmental charges affecting the Mortgaged Property and all other maintenance and
operation charges and disbursements incurred in connection with the operation and
. maintenance of the Mortgaged Property. and if during the pendency of any such mortgage
foreclosure proceeding, action is instituted for the foreclosure of the MBLLON BANK.
N.A.. mortgage, and an application is made by MBLLON BANK, N.A., for an extension
of such Receivership for the benefit of MBLLON BANK, N.A., any and all funds collected
by the Receiver prior to the date of such application shall be held by such Receiver and
applied solely for the benefit of MBLLON BANK. N.A. , and the Mortgagee herein shall
not be entitled to any part thereof. unless and until there is a surplus remaining after
all of the aforesaid payments and any other necessary payments; and (iii) immediate
notice of the institution of such foreclosure proceeding shall be given to MBLLON BANK.
N . A . , and true copies of all papers served or entered in such foreclosure proceeding
shall be served upon MELLON BANK, N.A.
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