2019-06-19 EDA Packet - Laserfiche WebLink

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3.The right of the Authority to receive any repayments from the monthly payments made by the Borrower shall be subordinate to the right of the Financial Institution to receive all such monthly payments made by the Borrower. 4. So long as the Borrower shall not be in default of its obligation to repay the loan, or of any of its obligations under any documents or instruments incidental thereto (any such default referred to herein as an ÐEvent of DefaultÑ), the Financial Institution, upon receipt of any monthly payment or any prepayment by the Borrower, shall remit to the Authority that portion of said monthly payment or prepayment which represents the AuthorityÓs pro rata share of the principal amount loaned by the Financial Institution. In no event shall the Financial Institution withhold from the Authority any amount less than the AuthorityÓs pro rata share of monthly payments or prepayments received by the Financial Institution, except as provided in the Event of Default as described herein. In receipt and disbursement of any sums covered by this section, the Financial Institution will exercise the same care as would be exercised in the handling of loans for its own account. After an Event of Default shall have occurred and after the required notice of period of said default and BorrowerÓs failure to cure said default, then, upon receipt of any monthly payments from the Borrower, or upon receipt of any other payment from any source by or on behalf of the Borrower, the Financial Institution shall apply the entire amount of such payment first to pay all costs and expenses incurred by the Financial Institution in connection with the enforcement or foreclosure of any note, mortgage or other document securing the repayment of the Loan, second to pay interest then due on the Financial InstitutionÓs interest in the Loan, and then shall apply the remaining amount of such payment as a payment or prepayment of the outstanding principal amount of the Financial InstitutionÓs interest in the Loan, until all interest due to the Financial Institution and the entire principal amount of the Financial InstitutionÓs interest in the Loan have been paid in full, and shall thereafter remit to the Authority the remainder of such amounts as a payment or prepayment of the principal amount of and interest on the AuthorityÓs interest in the Loan. 5. Any Loan repayment received directly from the Borrower by the Authority shall be remitted to the Financial Institution. 6. The Financial Institution shall promptly advise the Authority, in writing, of any default by the Borrower in repaying any amounts due under the terms of the Loan or under any mortgage, agreement, instrument or document securing repayment of the Loan. 7. Any mortgage, agreement, instrument or other document securing repayment of the Loan shall be foreclosed or enforced only upon the written consent of both the Authority and the Financial Institution, such consent not to be unreasonably withheld. In no case shall such consent from the Authority be withheld for more than two consecutive months after default. In foreclosing any mortgage or enforcing any remedy under any other agreement, instrument or document securing repayment of the Loan, the Financial Institution shall be entitled to receive all amounts derived from such foreclosure or enforcement until the Financial Institution has recovered all amounts due to it with respect to its interest in the Loan and its costs incurred in such foreclosure or enforcement. Thereafter, the Financial Institution shall remit to the Authority all remaining amounts derived from such foreclosure or enforcement. 8. So long as this Participation Agreement is in force and effect, the Financial Institution shall, within 60 days of the annual anniversary date of this Participation Agreement, furnish the Authority with an annual report summarizing the monthly payments or other payments with respect to the Loan received by the Financial Institution, the amounts paid as interest on the Loan, the payments and prepayments of the principal amount of the Loan, any foreclosure 17 22