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This entry was published on 2014-09-22
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SECTION 123
Preserving existing rights
Real Property (RPP) CHAPTER 50, ARTICLE 4
§ 123. Preserving existing rights. Nothing in this act shall be deemed
to prevent any bondholder or committee of bondholders from bidding at
the foreclosure sale and in case he or they should be a successful
bidder, from applying upon the purchase price the bonds held by him or
them at the amount distributable thereon and reorganizing the property
so purchased in any manner which was lawful prior to the enactment of
this act, nor to impair any previously existing right of a trustee so to
purchase and pay for the property, or to preclude any trustee which
shall have purchased such property from submitting to the court a plan
for its reorganization. The court may provide for the qualification of
bidders other than the trustee by requiring them to deposit with the
officer conducting the sale in advance of bidding up to ten per centum
of the amount of their bid in cash or in bonds taken at the principal
amount thereof. In any action now or hereafter pending for the
foreclosure of any such mortgage or indenture, the property shall, on
application of the trustee, be sold subject to the lien of any taxes,
assessments and water rates, any prior lien, or to any liens which may
thereafter be established, which are the subject of litigation pending
at the time of the sale, provided a brief statement thereof is contained
in the notice of sale.