2019-227-E Housing - Community Home Trust lease

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DocuSign Envelope ID:66F168C2-3C54-4274-9428-4F16B3F1802A least 10 days prior to Lessee's intended closing date. If the proposed mortgage fully complies with the requirements of Section 8.1, Lessor must consent to the mortgage i£ a. Lessee is not in default on this Lease or to any creditor; b. The Permitted Mortgage and related documentation contain no terms other than provisions generally contained in mortgages used for similar transactions in the Orange County, North Carolina area by institutional mortgagees; C. The Permitted Mortgage and related documentation do not contain any provisions which could be construed as rendering Lessor or any subsequent holder of the Lessor's interest in the Leased Premises liable for the payment of the debt evidenced by the note and Permitted Mortgage or expose Lessor or Lessor's interest in the Leased Premises to and deficiency judgment; d. The Permitted Mortgage provides that the holder's rights to Lessee's share of any condemnation award will attach only to that share of the award allocated to the Lessee in accordance with Section 9.6 of this Lease; e. Nothing in the Permitted Mortgage or related documentation obligates Lessor to execute an assignment of the Ground Lease Fee or other rent payable by Lessee under the terms of this Lease. 3. RIGHTS OF PERMITTED MORTGAGEE: Any Permitted Mortgagee will without the requirement of consent by the Lessor have the right,but not the obligation, to: a. Cure any default under this Lease, and perform any obligation required hereunder, the cure or performance by a Permitted Mortgagee being effective as if the same had been undertaken and performed by Lessee. In the event that Lessor sends a notice of default under the Lease to Lessee, Lessor shall also send a notice of Lessee's default to Permitted Mortgagee. b. Acquire and convey, assign, transfer and exercise any right, remedy or privilege granted to Lessee by this Lease or otherwise by law, subject to the provisions, if any, in said Permitted Mortgage, which may limit any exercise of any the right, remedy or privilege; and C. Rely upon and enforce any provisions of this Lease to the extent that the provisions are for the benefit of a Permitted Mortgagee. Permitted Mortgagee will not, as a condition to the exercise of its rights, be required to assume liability for the performance of the obligations of the Lessee under this lease. Any payment or performance or other act by Permitted Mortgagee hereunder will not be construed as an agreement by Permitted Mortgagee to assume liability except to the extent Permitted Mortgagee actually takes possession of the Security and the Leased Premises or collects fees or rentals from occupants. If Permitted Mortgagee does take possession of the Security and thereupon transfers the Security, a transferee will be required to enter into a written agreement assuming liability under this Lease and upon any the assumption the Permitted Mortgagee will automatically be released from liability hereunder. So long as Permitted Mortgagee has a security interest in the ground leasehold or the Improvements, there will be no merger of the leasehold and fee estates even if both are owned by the same person or entity unless Permitted Mortgagee consents to the merger. If the estate of Lessor is owned at any time by Lessee (regardless of a merger), or by any person in which Lessee has a direct or indirect interest, Permitted Mortgagee will not be obligated to cure any default of Lessee hereunder as condition to the forbearance by Lessor in the exercise of Lessor's remedies as herein provided.