cure rights

cure rights

In bankruptcy, the right to fix a default so that a creditor cannot pursue its remedies. For example, a debtor may file for bankruptcy moments before foreclosure, stop the foreclosure, and then propose a plan to cure the default and past due sums. Usually the plan involves small monthly payments over the course of several years. Of course, it is not enough to cure the default, the debtor must also stay current on future obligations, but bankruptcy will sometimes allow for a renegotiation of those obligations.

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Consequently, a ground lease must include certain cure rights and other key terms in favor of the leasehold mortgagee to protect it from such a catastrophic loss.
All of the ground leases have initial terms or extension options that extend at least 20 years beyond the terms of the related mortgage loans and provide the trustee with notice and cure rights in the event of a ground lease default.
WYNDHAM MAY ASSERT THAT IT HAS CURE RIGHTS OR THAT IT