122 - Transfer of title or foreclosure of project.

§  122.  Transfer  of  title  or  foreclosure of project. 1. Until the  termination of the tax exemption, whether by expiration or by any  other  cause, a redevelopment company, heretofore or hereafter organized, shall  not have power to sell the real property constituting the project or any  portion or portions thereof without the consent of the local legislative  body.    2.  If an action be brought to foreclose a mortgage or tax lien upon a  redevelopment project, heretofore or hereafter  authorized  pursuant  to  this  article,  and  the real property constituting the project shall be  acquired at the foreclosure sale or from the mortgagee  or  lienor  that  had  acquired  the  property of such sale, or by a conveyance in lieu of  such sale,  by  a  redevelopment  company  organized  pursuant  to  this  article,  or by the federal government or an instrumentality thereof, or  by a corporation which is, or by agreement has  become  subject  to  the  supervision  of  the  superintendent  of  banks or the superintendent of  insurance, such successor in interest shall acquire such project subject  to all provisions of the contract regulating such project and  shall  be  entitled to all of the benefits contained in such contract. In all other  cases  of  sale  at  foreclosure  or  forced  sale,  the  real  property  constituting the project or any portion or  portions  thereof  shall  be  sold  free  of  all restrictions, except such covenants running with the  land as may be contained in the contract regulating the project,  or  in  the deed, if any, given by the municipality to the redevelopment company  affecting all or any portion of the real property upon which the project  is  situated, and the tax exemption, if any, theretofore granted to such  project pursuant to such contract shall immediately terminate.