557A.17 Blanket mortgage or other liens affecting a time-share interval at time of first conveyance. The developer whose project is subject to an underlying blanket lien or encumbrance shall protect nondefaulting purchasers from foreclosure by the lienholder by obtaining fromthe lienholder written assurances that the lienholder will not foreclose on nondefaultingpurchasers. These written assurances may be in the form of a nondisturbance clause, subordination agreement, or partial release of the lien as the time-share intervals are sold,or the developer may obtain the agreement of the lienholder to take the project, in the eventof default by the developer, subject to the rights of the nondefaulting purchasers by enteringinto a financing plan or escrow agreement sufficient to protect the lienholder’s interest. 85 Acts, ch 155, §17Referred to in §557A.3 Sat Dec 23 11:05:11 2023 Iowa Code 2024, Section 557A.17 (16, 0)
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