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HomeMy WebLinkAbout1402 on or before December 31, 1981. For any payment so made after December 31, 1981, but on or before December 31, 1982, the entire net proceeds of sale payable tp the Mortgagee herein shall be Increased by ten percent (10$) . For any payment so made after December 31, 1982, but on or before December 31, 1983, the entire net proceeds of sale shall be increased by fifteen percent (1S$), it being agreed that Mortgagor herein shall not be entitled tD receive any proceeds from the sale of any such townhouse unit undi Mortgagee herein is paid in full or until and unless the Mortgagee and Mortgagor herein shall have entered inb~ 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 stamps on the documents, normal title insurance premiums and recording costs of the deed of conveyance and releases of mortgages. I1. SUBORDINATION. Mortgagee agrees that this mortgage and the promissory note secured thereby shall be at ail times subordinate and inferior to that certain mortgage of even date herewith between ISLAND VILLAGE OF HUTCHINSON ISLAND DEVELOP- MENT CORPORATION, as Mortgagor, and AMERICAN BANK OF MARTIN COUNTY, as Mortgagee, including any extension, modifications or renewals, replacements or ' refinancings thereof, securing the original principal sum of $200, 000.00, this sub- ordination 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 do be made by AMERICAN BANK OF MARTIN COUNTY, or any assignee of said Mortgagee during construction f of the project and Mortgagee herein will, upon demand from AMERICAN BANK OF MARTIN COUNTY, further subordinate said mortgage m the lien and terms, covenants and conditions of the said AMERICAN BANK OF MARTIN COUNTY 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 to and shall constitute a default in this mortgage, but the Mortgagee herein shall have no right m cure any default in the prior mortgage without the consent of the prior mortgagee. i i In the event of foreclosure of this mortgage, the Mortgagee herein covenants and agrees that provided the AMERICAN BANK OF MARTIN COUNTY mortgage is then outstanding and unpaid, (i) no tenants under leases of ail 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 AMERICAN BANK OF MARTIN COUNTY, 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 for such appointment has been given e to AMERICAN BANK OF MARTIN COUNTY; the money collected by the Receiver shall be first applied and used for the payment of interest and principal due and owing AMERICAN BANK OF MARTIN COUNTY 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 AMERICAN BANK OF MARTIN COUNTY mortgage, and an application is made by AMERICAN BANK OF MARTIN COUNTY for an extension of such Receivership for the benefit of AMERICAN BANK OF MARTIN COUNTY, 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 AMERICAN BANK OF MARTIN COUNTY and the Mortgagee herein shall not be entitled to any part thereof, unless and until there is a surplus remaining after ail of the afore- I said payments and any other necessary payments; and (iii) immediate notice of the ` institution of such foreclosure proceeding shall be given to AMERICAN BANK OF MARTIN COUNTY and true copies of all papers served or entered in such foreclosure proceeding shall be served upon AMERICAN BANK OF MART~IrN~COUNTY. 8001<~M PdGf~~