Section PRP.05.46 — Rights Of The Mortgagee

Subject to this Ordinance and the terms of the Mortgage, a Mortgagee has the following rights in connection with an assignment of Leasehold Interest in lieu of foreclosure or a foreclosure judgment:

(a) The receiver shall follow the directions of the Mortgagee in setting the terms of, and conducting, a public or private sale and the acceptance of any offer to buy the Property, subject to the following:

(1) All assignments shall be in form and substance satisfactory to the Mortgagee.

(2) All assignees shall be bound by the terms of the Lease.

(3) The receiver shall obtain the consent of the Secretary if such consent is required by law and has not been given.

(b) The Mortgagee need not accept any offer at the public sale other than a bona fide cash offer, to be paid within forty-five (45) days of the public sale, in an amount equal to or greater than the amount due on the judgment, plus all accrued interest and expenses to date of sale;

(c) If no offer is accepted at the public sale, the receiver may sell the Leasehold Interest at private sale; the Mortgagor shall have no interest in the proceeds and all proceeds, including any proceeds in excess of the amount due under the judgment, shall be paid to the Mortgagee.

(d) The receiver shall follow the directions of the Mortgagee in renting the Leased Premises, subject to the following:

(1) All rental agreements shall be in a form and substance satisfactory to the Mortgagee.

(2) All renters shall be provided with a copy of the Lease and shall agree in writing to be bound by the terms thereof.

(3) All rental proceeds shall be paid to the Mortgagee and shall be applied to amount outstanding under the Note or judgment.

(4) The receiver shall obtain the consent of the Secretary if such consent is required by law and has not been given.