Common use of Tax Credit Regulatory Agreement Clause in Contracts

Tax Credit Regulatory Agreement. Funding Lender agrees that if the Tax Credit Regulatory Agreement recorded, or to be recorded, against the Mortgaged Property, by its terms, terminates upon foreclosure under the Security Instrument or upon a transfer of the Mortgaged Property by instrument in lieu of foreclosure, in accordance with Tax Code Section 42(h)(6)(E), the lien of the Security Instrument and this Continuing Covenant Agreement will be subordinate to such Tax Credit Regulatory Agreement, regardless of the order of recording of the Security Instrument and the Tax Credit Regulatory Agreement document; provided, however, Funding Lender reserves the right not to subordinate the lien of the Security Instrument to the Tax Credit Regulatory Agreement if remedies reserved to Tax Credit Agency under the Tax Credit Regulatory Agreement exceed those of specific performance or injunctive relief. In such event, Borrower acknowledges that Funding Lender may require the Tax Credit Agency to enter into a subordination agreement in form and substance satisfactory to Funding Lender. To the extent a Tax Credit Regulatory Agreement is not recorded as of the date of this Continuing Covenant Agreement, Borrower will first obtain Funding Lender’s consent prior to recording the Tax Credit Regulatory Agreement.

Tax Credit Regulatory Agreement. Funding Lender agrees that if the Tax Credit Regulatory Agreement recorded, or to be recorded, against the Mortgaged Property, by its terms, terminates upon foreclosure under the Security Instrument or upon a transfer of the Mortgaged Property by instrument in lieu of foreclosure, in accordance with Tax Code Section 42(h)(6)(E), the lien of the Security Instrument and this Continuing Covenant Agreement will be subordinate to such Tax Credit Regulatory Agreement, regardless of the order of recording of the Security Instrument and the Tax Credit Regulatory Agreement document; provided, however, Funding Lender reserves the right not to subordinate the lien of the Security Instrument to the Tax Credit Regulatory Agreement if remedies reserved to Tax Credit Agency under the Tax Credit Regulatory Agreement exceed those of specific performance or injunctive relief. In such event, Borrower Xxxxxxxx acknowledges that Funding Lender may require the Tax Credit Agency to enter into a subordination agreement in form and substance satisfactory to Funding Lender. To the extent a Tax Credit Regulatory Agreement is not recorded as of the date of this Continuing Covenant Agreement, Borrower will first obtain Funding Lender’s consent prior to recording the Tax Credit Regulatory Agreement.