Coach 2013 Annual Report Download - page 337

Section 14.4 Mortgaging of Units; Suits.
(a) Each Unit Owner shall have the right, without consent of the Board of Managers or any other Unit Owner, to mortgage
(which term shall include, where applicable, any lease which is entered into in connection with a sale-leaseback, lease-subleaseback or similar financing
arrangement) its Unit without restriction, which mortgage shall be subject, however, to the provisions of the Declaration and these By-Laws), and provided
further that the mortgagee (or the lessor in a sale-leaseback or sublessor in a lease-subleaseback transaction) is: (i) a bank, savings bank, trust company,
savings and loan association, real estate investment trust, credit union or similar banking institution whether organized under the laws of the State of New
York, the United States or any other state; (ii) any foreign banking corporation licensed by the Superintendent of Banks of New York or the Comptroller of
the Currency to transact business in the State of New York; (iii) any insurance company or pension and/or annuity company duly organized or licensed to do
business in New York State, or any similar institutional lender; or (iv) any instrumentality created by the United States or any state with the power to make
mortgage loans,(v) any real estate mortgage investment conduit within the meaning of the Internal Revenue Code, (vi) any entity not included within any of the
foregoing that is regularly engaged in the business of making, owning, investing in, or servicing mortgage or mezzanine loans, including, without limitation, a
so-called “conduit lender” or “investment fund”, or (vii) any group of lenders which include one or more of the foregoing, or (viii) the seller of the Unit or (ix)
any affiliate of any of the foregoing. A mortgage (or leaseback or subleaseback) complying with the provisions of this paragraph (a) is herein called a
“Permitted Mortgage,” and the holder of a Permitted Mortgage is herein called a “ Permitted Mortgagee”. A Permitted Mortgagee shall also include any lender
providing mezzanine financing or preferred equity financing to one or more of the direct or indirect owners of a Unit Owner.
(b) A Unit Owner which mortgages its Unit or the holder of a Permitted Mortgage shall notify the Board of Managers of the
name and address of the mortgagee and shall file a conformed copy of the note and mortgage with the Board of Managers and such Unit Owner shall, prior to
giving such mortgage, satisfy all unpaid liens against its Unit other than Permitted Mortgages. A Unit Owner who satisfies a mortgage covering its Unit shall
so notify the Board of Managers and shall file a conformed copy of the satisfaction of mortgage (or similar document in recordable form) with the Board of
Managers. The Board of Managers shall maintain such information in a book entitled “Mortgages of Units.”
(c) The Board of Managers shall accept payment of any sum or performance of any act by a Permitted Mortgagee or tenant
or subtenant of a Unit Owner required to be paid or performed by a Unit Owner pursuant to the provisions of the Condominium Documents, with the same
force and effect as though paid or performed by such Unit Owner.
(d) The Board of Managers shall send each Permitted Mortgagee of which it has received notice (i) a copy of any notice of
default sent to the Unit Owner of such Unit, and (ii) notice of the commencement by the Board of Managers of any action or proceeding pursuant to Section
6.3(b) of these By-Laws.
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