Common use of Authority Requirements Clause in Contracts

Authority Requirements. (a) The Partnership is authorized to execute a deed of trust note and deed of trust and security agreement in order to secure a loan to be made by the MHDC and to execute an MHDC regulatory agreement (MHDC Regulatory Agreement) and such other documents as may be required by MHDC, or any other lender in connection with such loan. (b) upon execution, the MHDC Regulatory Agreement shall be binding upon the Partnership and all of the partners, whether they become Partners before or after the execution of such MHDC Regulatory Agreement, and such Regulatory Agreement shall remain binding upon the Partnership and the Partners so long as a deed of trust and security agreement on the Partnership property is held by MHDC or successors or assigns. (c) Any incoming Partner shall, as a condition of receiving an interest in the Partnership, agree(s) to be bound by the deed of trust note, the deed of trust and security agreement, the MHDC Regulatory Agreement and all other documents required by MHDC, or any lender in connection with such loan to the same extent and upon the same terms as the other Partners. (d) Upon dissolution of the Partnership, no title or right to possession and control of the Partnership property, and no right to collect the rents therefrom, shall pass to any Partnership or person who is not bound by the MHDC Regulatory Agreement. (e) Any other provisions of this Partnership Agreement to the contrary notwithstanding, so long as the Partnership property is encumbered by the deed of trust and security agreement held by MHDC or its successor or assign: (1) no distributions (as that term is defined in the MHDC Regulatory Agreement or payments to any partner shall be made except as permitted by the terms of the MHDC Regulatory Agreement; and,