HomeMy WebLinkAbout2750 - be released -upon payment to principal of the entire net proceeds
of sale of said townhouse unit made on or before June 30, 1881.
For any payment so made aRer June 30. 1881, but on or before
June 30 , 1882 , -the entire net proceeds of sale payable to the
Mortgagee herein shall be increased by ten percent (10$) .
For any payment so made after June 30 , 1982 , but on or before
June 30, 1983, the entire net proceeds of sale shall be increased
by Sfteen percent (15$) , it being agreed that Mortgagor herein
shall not be entitled to receive any proceeds from the sale of
any such townhouse unit until Mortgagee herein is paid in full
or until and unless the Mortgagee and Mortgagor herein shall
have entered into a modification of this mortgage pursuant to
which Mortgagor may be entitled to realize a portion of any
net proceeds of each townhouse sale .
"Net Proceeds" as used herein is the gross sales price less
any brokerage fees paid to any non-related agent , documentary s
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 to that certain mortgage of
even date herewith between ISLAND VILLAGB OF HUTCHINSON ISLAniD DEVBLOPMBNT
CORPORATION, as Mortgagor, and PENNAMCO. INC.. as Mortgagee. including any
extension, modifications or renewals, replacements or refinancings thereof, securing
the original principal sum of ;1.365.000 , this subordination provision of the mortgage
herein being further evidenced by a separate Subordination Agreement executed of
even date herewith. In addition, this mortgage shall be second and subordinate to any
mortgages hereafter to be made by PENNAMCO. INC . or any assignee of said Mortgagee
during construction of the project and Mortgagee herein will, upon demand from
PENNAMCO . INC further subordinate said mortgage to the lien and terms , covenants
and conditions of the said PENNAMCO. INC. mortgage as may be extended. renewed.
modified or consolidated.
'i It is agreed by and between the parties hereto that any default of any nature in
the above prior mortgage shall be deemed to and shall oonstitube a default in this
mortgage, but the Mortgagee herein shall have no right tD 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 PENNAMCO. INC . 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 PENNAMCO, INC. and (ii) the rents, income. revenues, issues- and profits 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
z for such appointment has been given to PENNAMCO . INC . ; the money collected by tt~e
Receiver shall be first applied and used for the payment of interest and prindpal due
and owing PENNAMCO. INC . 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
a Property , and if during the pendency of any such mortgage foreclosure proceeding .
~ action is instituted for the foreclosure of the PENNAMCO. INC . mortgage, and an appli-
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cation is made by PENNAMCO, INC. for an extension of such Receivership for the
benefit of PENNAMCO. INC. ,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 PENNAMCO. INC. 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 PENNAMCO, INC. and true copies of all papers
served or entered in such foreclosure proceeding shall be served upon PENNAMCO , INC .
8o~x 320 P~~E 2746