An “Aztech Recognition Agreement” or “Aztec” is an agreement between you, your lender and koop, and determines what happens when you stop paying for maintenance and/or mortgages. It is necessary to finance the acquisition of a co-op. While you`re signing the Aztecs, this is really just confirmation. It doesn`t require you to do anything wrong. Due to the fact that the majority of Aztech`s terms benefit, largely, to co-op companies, they are generally happy to sign Aztech recognition agreements The agreement recognizes that the shareholder is the owner of the shares and the residents of the apartment according to the ownership lease. In the agreement, the co-operative agrees that the bank/lender lends money to the shareholder in exchange for a pawn on the shareholder`s lease and collateral units. The agreement prevents Koop`s board of directors and cooperation from accepting other koop charges without the bank/lender`s approval. This means that, without the lender`s agreement, the co-op cannot accept other loans, terminations or donations of the own lease. Finally, Aztech`s recognition agreement contains a compensation clause that requires the bank/lender to compensate koop if the shareholder asserts a right against koop for its action under an Aztech agreement. Co-ops are generally happy to sign an Aztech recognition agreement for certain reasons.
First of all, it is needed by the lender, so that if the building wants financing, they must sign the Aztecs. It also allows the lender to pay for your maintenance if you don`t. The lender wants its guarantees to be as clean as possible, so it is a good investment to pay a few thousand dollars to avoid darkening their assets to six or seven figures. The Co-op will effectively benefit from support insurance for all units financed. Finally, the lender agrees that the co-op is paid first in a forced execution. It is only when the co-op is fully realized that the lender receives the proceeds of a sale.