The court-appointed receiver sought approval of an agreement of purchase and sale for two multi-residential properties.
The mortgagor objected to the sale price, and the first mortgagee objected to the sale unless its yield maintenance penalty of $1.7 million was paid from the proceeds.
Applying the Soundair principles, the court approved the sale, finding the receiver's process fair and the price reasonable.
However, the court ordered the $1.7 million held in trust pending a trial of an issue to determine the first mortgagee's entitlement to the yield maintenance penalty.
