§ 157-17. Power to mortgage when project financed with governmental aid. - North Carolina Statutes

§ 157‑17.  Power tomortgage when project financed with governmental aid.

In connection with the interim or permanent financing of any project tobe permanently financed in whole or in part by a government, or the permanentfinancing of which is to be secured by a pledge of a government commitment forrental assistance payments, the authority shall also have the power, subject tothe consent or approval of any government providing such financing or makingsuch commitment for rental assistance payments, to mortgage all or any part ofits property, real or personal, then owned or thereafter acquired,  andthereby:

(1)        To vest in a government the right, upon the happening of anevent of default (as defined in such mortgage), to foreclose such mortgagethrough judicial proceedings or through the exercise of a power of sale withoutjudicial proceedings, so long as a government shall be the holder of any of thebonds secured by such mortgage.

(2)        To vest in a trustee or trustees the right, upon thehappening of an event of default (as defined in such mortgage), to foreclosesuch mortgage through judicial proceedings or through the exercise of a powerof sale without judicial proceedings.

(3)        To vest in other obligees the right to foreclose suchmortgage by judicial proceedings.

(4)        To vest in an obligee, including a government, the right inforeclosing any mortgage as aforesaid, to foreclose such mortgage as to all orsuch part or parts of the property covered thereby as such obligee (in itsabsolute discretion) shall elect; the institution, prosecution and conclusionof any such foreclosure proceedings and/or the sale of any such  parts of themortgaged property shall not affect in any manner or to any extent the lien ofthe mortgage on the parts of the mortgaged property not included in suchproceedings or not sold as aforesaid. (1935, c. 456, s. 17; 1977, c. 784, s. 3.)