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7.1.L. - Page 96 <br /> mortgage company or other entity chartered or licensed under federal or state laws whose principal business <br /> is lending money on the security of real property or investing in such loans; (iii)an insurance company; (iv)a <br /> federal or State agency or instrumentality including, without limitation, the Federal National Mortgage <br /> Association and the Federal Home Loan Mortgage Corporation;or(v)an insurer or governmental guarantor <br /> of a first Mortgage including the Federal Housing Administration and the Veterans Administration. A"first <br /> Mortgage" or "first Mortgagee" is one having a priority as to all other Mortgages encumbering the same <br /> Condominium or other portions of the Development. An "eligible Mortgage holder" shall mean a first <br /> Mortgagee who has requested the Association to notify the first Mortgagee of any proposed action that <br /> requires the consent of a specified percentage of eligible Mortgage holders. <br /> 11.2 Encumbrance. Any Owner may encumber his or her Condominium with a Mortgage or <br /> Mortgages. <br /> 11.3 Rights of Institutional Mortgagees. Any institutional Mortgagee who obtains title to a <br /> Condominium pursuant to the remedies provided in the first Mortgage, including judicial foreclosure or <br /> nonjudicial foreclosure under a power of sale (but excluding voluntary conveyance to the first Mortgagee), <br /> shall take the Condominium free of any obligation to pay any assessments that were delinquent as of the date <br /> the institutional Mortgagee acquired title to the Condominium,including any interest,penalties or late charges <br /> in connection therewith. The institutional Mortgagee as Owner of the Condominium shall be obligated to pay <br /> any assessments that were not delinquent as of the date the institutional Mortgagee took title to the <br /> Condominium and all future assessments levied against the Condominium as long as the institutional <br /> Mortgagee remains in title, including any special assessments levied by the Association to raise operating or <br /> reserve funds needed because of uncollected delinquent assessments,as long as the special assessment is <br /> allocated among all the Condominiums as provided in Section 6.9. <br /> 11.4 Subordination. Any assessment lien established under the provisions of this Declaration is <br /> expressly made subject to and subordinate to the rights of any Mortgagee under a Mortgage that encumbers <br /> all or any portion of the Development or any Condominium made in good faith and for value and recorded <br /> before the recordation of a notice of delinquent assessment. No assessment lien shall in any way defeat, <br /> invalidate or impair the obligation or priority of such Mortgage unless the Mortgagee expressly subordinates in <br /> writing its interest to such lien. If any Condominium is encumbered by a Mortgage made in good faith and for <br /> value, the foreclosure of any assessment lien cannot operate to effect or impair the lien of any Mortgage <br /> recorded prior to the recordation of the notice of delinquent assessment. Upon the foreclosure of any prior- <br /> recorded Mortgage, any lien for delinquent assessment shall be subordinate to the Mortgage lien; and the <br /> purchaser at the foreclosure sale shall take title free of the assessment lien. By taking title, the purchaser <br /> shall be obligated to pay only assessments or other charges that were not delinquent at the time the <br /> purchaser acquired title or that were levied by the Association on or after the date the purchaser acquired title <br /> to the Condominium. Any subsequently-levied assessments or other charges may include previously-unpaid <br /> assessments, provided all Owners, including the purchaser and its successors and assigns, are required to <br /> pay their proportionate share of such unpaid assessments. <br /> 11.5 Breaches. No breach of any provision of this Declaration shall invalidate the lien of any <br /> Mortgage made in good faith or for value; but all of the covenants,conditions and restrictions shall be binding <br /> on any Owner whose title is derived through foreclosure sale, trustee sale or otherwise. <br /> 11.6 Special Voting Requirements. Any action taken by the Association, the Members or the <br /> Board are subject to the special voting requirements set forth in this Section 11.6. <br /> 11.6.1 First Mortgagee Approval Rights: Except as provided by statute, in case of <br /> condemnation or substantial loss to the Units and/or Common Area of the Development, unless at least two- <br /> thirds of the first Mortgagees(based on one vote for each first Mortgage owned)and Owners(other than the <br /> Declarant)of the individual Condominiums have given their prior written approval, the Association may not: <br /> (i) by act or omission seek to abandon or terminate the Condominium Development; <br /> CLSS\51643\927586.5 42 June 16,2014 <br />