DEFAULTING TENANT IN COMMON Clause Samples

DEFAULTING TENANT IN COMMON. The Tenants in Common agree that the Company or any of its affiliates or their assigns shall have the right, while this Agreement remains in effect, to purchase a Defaulting Tenant in Common's (as defined below) interest in the Project as set forth in this Section 7.4. A Defaulting Tenant in Common shall mean a Tenant in Common who is in default under any loan documents attributable to any loan secured by the Project, the Management Agreement or this Agreement. In order to execute this option, the Company or its affiliate shall provide written notice of its election to exercise this option to the Defaulting Tenant in Common during the period such Defaulting Tenant in Common is in default or for a period of 30 days thereafter to the Company of such default. In the event that the Company or its affiliates or their assigns exercise this purchase option, all of the Defaulting Tenant in Common's right, title and interest in its Interest shall transfer to the Company or its affiliates or their assigns as of the date the election to exercise the purchase option is received by the Defaulting Tenant in Common pursuant to Section 10.8, and the Company shall own all right, title and interest to such Interest as of such date; provided, however, that the Company or its affiliates or their assigns may delay the transfer of the Interest for any length of time as specified in its election to exercise the purchase option up and through the payment date and provided, further, that the transfer, and effective date of such transfer, shall be subject to any consent of the Lender, if required. The purchase price of the Defaulting Tenants in Common interest shall be equal to the Fair Market Value of the Interest (as defined in Section 8 of this Agreement) of the Defaulting Tenant in Common. Such purchase price sale shall be paid by the Company or its affiliates or their assigns within 30 days of the determination of the Fair Market Value of the Project, and the obligation to pay the purchase price shall bear interest at the short term Applicable Federal Rate from the date of transfer through the payment date. The purchaser and seller shall begin negotiation of the Fair Market Value of the Project within fifteen (15) days after the date of the written notice from the Company or assignee and shall follow the procedures set forth in Section 8. The allocation of the costs and liabilities shall be subject to the terms set forth in Section 8. In the event a Defaulting Tenant in Common...