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Thanks Dr. T. Wonderfully lucid, as always. There is nothing in the amended mortgage with the mezzanine financier specifying how the money is to be used. I may check the original mortgage again, which looked conventional when I glanced at it. I'll still pass a bunch of stuff on to the boys in gray, but I won't make a big deal about this. Politically, that there is nothing specifying the money be spent on the "tax incentive" project is added dynamite to the mortgage itself. The financier is never going to get the money back from the personal guarantor/developer—they made a stupid investment.

One more question about the wording on the foreclosure documents: at the date the foreclosure notice was published, $X million was owed on the Note “including interest on the amount due of $Y thousand per diem and all costs of collection.” The word "including" confuses me. Does interest continue to accrue during the foreclosure process (sale was about 2 month later)? What about during the redemption period (it took about 8 months after the sale until redeemed)?

Thanks.
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