HomeMy WebLinkAbout1732 Violation of the above covenants shall constitute a default herein.
2. All sums collected and received by Assignee out of the rents, issues
and profits of the Property shall first be applied by it to the payment of: the costs of
collection thereof; the costs of management, repairs and upkeep of the property,
including the purchase of such additional fixtures and equipment as the Assignee in its
sole discretion deems reasonably necessary for the maintenance of a proper rental
value of the property; all taxes, assessments, premiums for public liability insurance
and insurance premiums payable by Assignor or other owner of the Property as
provided in the Mortgage, and any taxes imposed upon or collectible by Assignee under
any federal or state law or any law or ordinance enacted by political subdivision
thereof, or any supplements or amendments thereto, provided, however, that such tax
shall• be based upon the employment by Assignee of persons necessary to the operation
of the Property under the assignment. Second, the balance, if any, which shall be
known as "the net income", shall be applied first to interest due and then toward
reduction of~ the principal indebtedness evidenced by the Note and secured by the
Mortgage, provided, however, that no credit shall be given by Assignee for any sum or
sums received from the rents, issues and profits of the Property until the money
collected is actually received by Assignee, and no credit shall be given for any
uncollected rents or other uncollected amounts or bills, nor shall credit on the
tilortgage indebtedness be given for any rents, issues and profits derived from the
Property after Assignee shall obtain possession of the premises under order of Court or
by operation of law.
3. Assignee may, after occurrence of default as above provided, from
time to time appoint and dismiss such agents or employees as shall be neeessa:;~ for
the collection of the rents, issues and profits and for the proper care and operation of
the Property, and Assignor hereby grants to such agents or employees so appointed full
and irrevocable authority for Assignor's benefit to manage the Property and to do all
acts relating to such management, including among other things, the making of new
leases in the name of the owner or otherwise, the alteration or amendment of existing
leases, the authorization of repairs or replacements to maintain the building or
buildings and chattels situated upon the Property in good tenantable condition and
making of such alterations or improvements, as in the judgment of the Assignee, may
be necessary to maintain or increase the income from the Property. Assignee shall
have the sole control of such agents or employees whose remuneration shall be paid
out of the' rents, issues and profits as hereinbefore provided at the rate of
compensation accepted in the community wherein the Property is situated unless
otherwise specified, and Assignor hereby expressly releases Assignee of any liability to
Assignor for the acts of such agents so long as they exercise reasonable care and
agrees that Assignee shall not be liable for its neglect or for monies that may come
into its hands unless actually received by Assignee.
4. Assignor agrees that nothing in this agreement shall be construed to
limit or restrict in any way the- rights and powers granted in the il9ortgage or other
loan or security instruments given by Assignor to Assignee to evidence or further
~ secure payment of the Note and the rights herein shall be in addition thereto. The
collection and application of the rents, issues and profits to the Mortgage indebtedness
or as otherwise above provided shall not constitute a waiver of any default which
~ might -at the time of application or thereafter exist under the mortgage instruments,
and the payment of the indebtedness secured by such instruments may be accelerated
in accordance with their terms, notwithstanding such application.
5. This Assi nment secures such future advances as ma be made b
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Assignee to Assignor under the terms of the Construction Loan and Project Agreement
referred to above within twenty (20) years from the date hereof with the same force,
priority and effect as though made concurrently herewith, up to the maximum amount
of Seventeen Million Five Hundred Thousand Dollars (17,500,000.00) with interest
thereon, plus advances made for taxes,. completion of construction, or to satisfy other
liens or for insurance. For the purposes hereof, the term Assignor shall include its
successors and assigns as owners of the property subject hereto. Providing nothing
herein is intended to or shall obligate Assignee to make such future advances. ,
THIS Assignment of Leases, Rents and Profits shall inure to the benefit of
5 Assignee and its successors and assigns and shall be binding upon the successors and
assigns of Assignor.
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