Common use of Reversionary Interest Clause in Contracts

Reversionary Interest. At the Closing the Church shall convey to Presbytery a reversionary interest in the Real Property for a period of ten (10) years from the Closing Date (the “Reversionary Interest”). At the Closing the Church shall execute and deliver to Presbytery a quitclaim deed in the form of Exhibit “D” (the “Reversionary Deed”). The Reversionary Interest shall be as follows: If any substantial portion of the Real Property ceases to be used regularly for a period of ninety (90) days as a school, a place of worship, a place of religious study, a place of fellowship, a place of residence all in furtherance of the Church's Christian ministry as a Reformed Christian Church within ten (10) years after the Closing such Real Property shall revert to Presbytery and the Church shall forfeit all its right, title or interest in the same. During said ten (10) year period, if any portion of the real Property is sold, leased, exchanged or otherwise transferred or otherwise utilized for any purpose contrary to the terms hereof without the written consent of Presbytery, such portion shall revert to Presbytery and the Church shall lose its right, title, or interest in such portion of Real Property. Notwithstanding the immediately preceding sentence, the granting of a deed of trust on any or all of the Real Property to a commercial financial institution to cause the Real Property to serve as security of all the Real Property for a loan which will be used exclusively to maintain and/or improve the Real Property shall not cause a reversion to Presbytery. If any of the Real Property reverts hereunder the Church shall quitclaim such portion of the Real Property to Presbytery without payment of any amount by Presbytery or the transfer of any other consideration to the Church from Presbytery. Presbytery shall have the right, at any time, to come upon the Real Property to inspect the same and to review the books and records of the Church to assure that the Real Property is being used in accordance with the terms hereof. The terms hereof including, but not limited to, the terms of the Reversionary Interest, are specifically enforceable by Presbytery. Provided further, Presbytery shall be entitled to an injunction to prohibit any violation of the terms hereof.

Reversionary Interest. At The PARTIES agree that the Closing the Church PRESBYTERY, and its successors in interest, shall convey to Presbytery retain a reversionary interest in the Real Property PROPERTY for a period of ten eight (10) years from the Closing Date (the “Reversionary Interest”)8) years. At the Closing the Church shall execute and deliver This interest is to Presbytery a quitclaim deed insure that ICPC, or its successor in the form of Exhibit “D” (the “Reversionary Deed”). The Reversionary Interest shall be as follows: If any substantial portion of the Real Property ceases to be used regularly interest, remain in an approved Reformed denomination for a period of ninety the later of eight (90) days as 8) years after dismissal from the PC (USA), or December 31, 2025. Pursuant to California Civil Code section 1110, should ICPC, or its successor in interest, cease to exist, or leave ECO, and fail to remain with a schooldenomination recognized by the World Communion of Reformed Churches, a place of worship, a place of religious study, a place of fellowship, a place of residence all ICPC or its successor in furtherance interest may only terminate the PRESBYTERY’S reversionary interest by payment of the Church's Christian ministry as a Reformed Christian Church within ten (10) years sum of $1,345,000.00; failure to make such payment will result in said title to said Property remaining with the Presbytery. In any such instance wherein ICPC elects to leave ECO after the Closing date of dismissal, ICPC shall have twelve (12) months to affiliate with another denomination member of the World Communion of Reformed Churches, before payment of said agreed upon sum. This AGREEMENT or a Memorandum of this interest, in a form reasonably satisfactory to the PRESBYTERY and ICPC shall be recorded in the real property records of Riverside County, California. ICPC agrees to promptly notify the Presbytery whenever it intends to sell, transfer or otherwise encumber said real property; and with regard to any such Real Property sale, transfer or collateralization, the Presbytery retains the right of First Refusal. The Parties agree that any disputes arising out of this reversionary interest shall revert be submitted to Presbytery binding arbitration under the rules of the United States Arbitration and Mediation Service; the arbitrator’s decision shall be final and legally binding and judgment may be entered thereon; each Party will be responsible for its share of the arbitration fees. If ICPC has not left ECO, or another denomination which is a member of the World Communion of Reformed Churches, within eight years of signing this Agreement and dismissal to ECO, the reversionary interest shall lapse and the Church shall forfeit all PRESBYTERY, its rightsuccessors or assigns, title or interest in the same. During said ten (10) year period, if any portion of the real Property is sold, leased, exchanged or otherwise transferred or otherwise utilized for any purpose contrary to the terms hereof without the written consent of Presbytery, such portion shall revert to Presbytery and the Church shall lose its right, title, or interest in such portion of Real Property. Notwithstanding the immediately preceding sentence, the granting of a deed of trust on any or all of the Real Property to a commercial financial institution to cause the Real Property to serve as security of all the Real Property for a loan which will be used exclusively to maintain and/or improve the Real Property shall not cause a reversion to Presbytery. If any of the Real Property reverts hereunder the Church shall quitclaim such portion of the Real Property to Presbytery without payment of any amount by Presbytery or the transfer of any other consideration to the Church from Presbytery. Presbytery shall have the right, at any time, to come upon the Real Property to inspect the same and to review the books and records of the Church to assure that the Real Property is being used no interest or claim whatsoever in accordance with the terms hereofsaid property. The terms hereof includingPRESBYTERY shall, but not limited tothereupon, record such document as is necessary or appropriate to cancel the terms of the Reversionary Interest, are specifically enforceable by Presbytery. Provided further, Presbytery shall be entitled Memorandum recorded pursuant to an injunction to prohibit any violation of the terms hereofthis section.