04-27-1994 - Henn. Co. rehab. loan agreement

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6. The Lien created by this Agreement shall terminate and shall be of no further force or effect in the event Lender has not, on or before Pr1\ 611 ,; CX)ii-- (a) commenced an action in the manner provided by statute for the foreclosure of the Lien, and (b) filed for record a notice of said action, or a power of attorney to foreclose mort- gage, or a lis pendens referring to the same, in the office of the County Recorder or Registrar of Titles, as the case may be, in Hennepin County. Lender may, in its sole discretion, extend said termination date of said lien by filing for record, on or before said termination date, an agreement with Borrower or his/her heirs, executors, or representatives evidencing such extension. 7. In the event that the property described above is subject, as of .:he data of this Agreement, to one or more contracts for deed (herein- after collectively referred to as a "Contract for Deed") , Borrower specifically covenants that the vendor or vendors, as the case may be, of the Contract for Deed (hereinafter collectively referred to as the *Contract Vendor") , has executed this Agreement at the place pro- vided below. The execution of this Agreement by the Contract Vendor shall and hereby is deemed to be for the purpose of establishing and continuing the existence of the indebtedness described herein andthe lien granted herein. Accordingly, it is specifically agreed that the Contract Vendor shall not be personally liable by reason of any E default which may occur in the performance or by reason of the non- performance of any of the terms of this Agreement to be performed; by the Borrower; and that the Lender shall not seek or be entitled tc any personal judgment against the Contract Vendor by reason of any default hereunder, and that the sole remedies of the Lender in the event of any default as against the Contract Vendor shall be to pro- ceed against the real estate described herein in the manner provided in this Agreement in order to subject it to the repayment of the Loan. Notwithstanding anything to the contrary contained in this Ag_eeMent, in the event that the property described above is subject to a Contract for Deed, it is further agreed by the parties hereto as follows: • a. The conveyance of fee title by the Contract Vendor to Borrower upon fulfillment of the terms and conditions of the Contract for Deed, and the sale or conveyance by Contract Vendor of the vendor's interest in said Contract for Deed, shall not be events giving rise to repayment of the Loan under this Agreement. b. In the event Borrower desires to obtain firs: mortgage financing • to meet Borrower's obligations under the Contract for Deed referred to in this paragraph 7, Lender hereby agrees to sub ordinate the lien created by this Agreement for its benefit to said refinancing first mortgagt- lien, and to execute any andtall instruments reasonably required to effectuate said subordination. 4