3. HRSR 05-16-2005 - Laserfiche WebLink

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(b) Grant of easements, licenses, or rights-of--way over, under, or upon the Mortgaged Property that, in the opinion of the Mortgagee, do not destroy or diminish its usefulness for the purpose intended. (c) Lease of the Mortgaged Property, or a part thereof, to a third party for the purpose of operation of a housing development, provided that the proposed lessee is approved by Mortgagee and such lease is permitted by law, and is subject to all of the terms, provisions, and limitations of this Mortgage. (d) Sale or exchange of a portion of the Mortgaged Property on which no building or structure is situated, and which in Mortgagee's opinion is not needed for operation of the Mortgaged Property, provided that the proceeds thereof shall be paid to Mortgagee and applied in reduction of the Indebtedness, and the value of the remaining Property, in Mortgagee's sole option and discretion, will exceed the then outstanding principal balance of the Loan and any prior loan combined. (e) Sale to another eligible Mortgagor approved by resolution of Mortgagee, who assumes all obligations of Mortgagor under this Mortgage and accompanying documents, in which case Mortgagee may, in its discretion, release Mortgagor. Mortgagee specifically agrees to approve such a sale if (i) Mortgagor is then not in default of any of its agreements with Mortgagee, whether such agreements involve the Loan or some other loan that is secured by the Mortgaged Property, (ii) an assumption fee in an amount to be determined by Mortgagee, in its sole option and discretion, is paid to Mortgagee, (iii) the proposed assignee agrees to be bound by the provisions contained in the Regulatory Agreement and is capable of performing all of the duties specified therein, and (iv) the proposed assignee is creditworthy in Mortgagee's sole opinion. In such event, Mortgagee agrees that the interest rate as set forth in the Note or in any amendment thereof shall be unchanged as a result of said transfer and shall remain payable as provided in the Note or any amendment thereof. For purposes of this Section 8, a sale, assignment, conveyance, or transfer of the Mortgaged Property includes, but is not limited to, one or more of the following: (f) A transfer by Mortgagor, in whole or in part. (g) A transfer by a party having a substantial interest in Mortgagor. (h) Transfers by more than one party of interests aggregating a substantial interest in Mortgagor. (i) Any other similarly significant change in the ownership of interests in Mortgagor, or in the relative distribution of interests by any other method or means. The term "substantial interest" means the interest of any individual owner, joint tenant, or tenant in common, general partner, any limited partner having atwenty-five percent (25%) or