06-10-2026 Council Packet - Laserfiche WebLink

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Mortgage shall constitute a perfected, absolute, and present assignment, provided that Mortgagor shall have the right to collect, but not prior to accrual, all of the rents, and to retain, use, and enjoy the same unless and until an Event of Default shall occur under this Mortgage. Subject to the rights of senior lien holders, any rents which accrue prior to an Event of Default under this Mortgage but are paid thereafter shall be paid to Mortgagee. Section 2.4 DEFAULT AND REMEDIES. Upon the occurrence of any Event of Default specified in this Mortgage, Mortgagee, at its option, at any time, subject to applicable cure periods and the rights of senior lien holders: (a) May, in the name, place, and stead of Mortgagor, (i) enter upon, manage, and operate the Premises, or retain the services of one or more independent contractors to manage and operate all or part of the Premises; (ii) make, enforce, modify, and accept surrender of the leases; (iii) obtain or evict tenants; collect, sue for, fix, or modify the rents; and enforce all rights of Mortgagor under the leases; and (iv) perform any and all other acts that may be necessary or proper to protect the security of this Mortgage. (b) May, with or without exercising the rights set forth in subparagraph (a) above, give, or require Mortgagor to give, notice to any or all tenants under·the leases authorizing and directing the tenants to pay all rents under the lease directly to Mortgagee. (c) May, without regard to waste, adequacy of the security, or solvency of Mortgagor, apply for, and Mortgagor hereby consents to, the appointment of a receiver of the Premises, whether or not foreclosure proceedings have been commenced under this Mortgage, and if such proceedings have been commenced, whether or not a foreclosure sale has occurred. The exercise of any of the foregoing rights or remedies and the application of the rents, profits, and income pursuant to this Article, shall not cure or waive any Event of Default (or notice of default) under this Mortgage nor invalidate any act done pursuant to such notice. Section 2.5 APPLICATION OF RENTS, PROFITS, AND INCOME. After an Event of Default which is not cured within the applicable cure period under the Loan Agreement, all rents collected by Mortgagee or the receiver each month shall be applied as follows: (a) To payment of all reasonable fees of the receiver approved by the court; (b) To payment of all tenant security deposits then owing to tenants under any of the Leases pursuant to the provision of Minn. Stat. §504B.178; (c) To payment of all prior or current real estate taxes and special assessments with respect to the Premises; (d) To payment of all premiums then due for the insurance required by the provisions of this Mortgage; (e) To payment of expenses incurred for normal maintenance of the Premises;