Common use of Acquisition of Collateral Clause in Contracts

Acquisition of Collateral. In the event any of the Collateral is acquired by Originator by foreclosure, conveyance in lieu of foreclosure, or otherwise in accordance with Section 6.1, at a time when both Originator and Participant have a Participation Interest in the Loan, each shall have an undivided ownership interest in such Collateral in percentages equal to the respective principal amounts actually advanced by each, less any payments of principal returned to each. If Originator acquires or intends to acquire any Collateral at foreclosure sale in accordance with Section 6.1, Originator may credit bid all or a portion of the amount outstanding on the Loan, such bid to be allocated proportionately between Originator and Participant according to their respective Participation Interests. After title to any Collateral is acquired by Originator, Originator shall prepare a proposed joint ownership agreement concerning ownership, management, maintenance, repair or improvement of said Collateral, including cost estimates. Participant shall have the right to approve such proposal, such approval not to be unreasonably withheld. Such joint ownership agreement shall provide, and pending execution of the same the Parties agree, that during the period such Collateral is held by the Parties as owners (a) all income, expenses (including court costs and attorney fees) and liabilities arising out of the ownership, management and possession of said Collateral shall be shared proportionately in accordance with the ownership interest of each, (b) Originator and Participant each shall be required to consent to the terms and conditions relating to any disposition of such Collateral, which consent shall not be unreasonably withheld, and (c) in the event of disposition of such Collateral, the proceeds shall be divided prorata in accordance with the ownership interest of each. All Collateral acquired by foreclosure, deed in lieu of foreclosure, or other remedies shall be held by Originator for itself and for Participant according to their respective ownership interests.

Acquisition of Collateral. In the event any of the Collateral is acquired by Originator by foreclosure, conveyance in lieu of foreclosure, or otherwise in accordance with Section 6.1, at a time when both Originator and Participant have a Participation Interest in the 5 - NON-RECOURSE LOAN PARTICIPATION AGREEMENT PDX/112816/141153/DLH/1385606.1 Loan, each shall have an undivided ownership interest in such Collateral in percentages equal to the respective principal amounts actually advanced by each, less any payments of principal returned to each. If Originator acquires or intends to acquire any Collateral at foreclosure sale in accordance with Section 6.1, Originator may credit bid all or a portion of the amount outstanding on the Loan, such bid to be allocated proportionately between Originator and Participant according to their respective Participation Interests. After title to any Collateral is acquired by Originator, Originator shall prepare a proposed joint ownership agreement concerning ownership, management, maintenance, repair or improvement of said Collateral, including cost estimates. Participant shall have the right to approve such proposal, such approval not to be unreasonably withheld. Such joint ownership agreement shall provide, and pending execution of the same the Parties agree, that during the period such Collateral is held by the Parties as owners (a) all income, expenses (including court costs and attorney fees) and liabilities arising out of the ownership, management and possession of said Collateral shall be shared proportionately in accordance with the ownership interest of each, (b) Originator and Participant each shall be required to consent to the terms and conditions relating to any disposition of such Collateral, which consent shall not be unreasonably withheld, and (c) in the event of disposition of such Collateral, the proceeds shall be divided prorata in accordance with the ownership interest of each. All Collateral acquired by foreclosure, deed in lieu of foreclosure, or other remedies shall be held by Originator for itself and for Participant according to their respective ownership interests.