Washington Cooperative Loan Recognition Agreement
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FAQ
The owner of a co-op does not own his or her unit. The co-op is a corporation, complete with a corporate board of directors, and each resident is a ?shareholder.? Co-op buyers do not sign a deed. Instead, they purchases shares of the corporation, shares that include a lease granting use of a specific unit.
A cooperative corporation (or simply, a "cooperative") is a special form of corporation that places ownership and/or control of the corporation in the hands of the employees or patrons of the corporation.
Co-op Ownership and Control The people who benefit from the products or services of a cooperative business own the cooperative business. In the case of a grocery co-op, the people who shop at the store are owner-members.
The documents that show ownership in a cooperative are shares of stock in the cooperative corporation and a proprietary lease. An ownership interest that can be an estate interest or a right of use is. Time-share.
Recognition Agreement means, with respect to a Cooperative Mortgage Loan, an agreement executed by a Cooperative Corporation which, among other things, acknowledges the lien of the Mortgage on the Mortgaged Property in question.
Assignment of Recognition Agreement . With respect to a Cooperative Loan, an assignment of the Recognition Agreement sufficient under the laws of the jurisdiction wherein the related Cooperative Unit is located to reflect the assignment of such Recognition Agreement.
The stock, shares, membership certificates, or other contractual agreement evidencing ownership. The original Recognition Agreement, and, if applicable, the original assignment of the Recognition Agreement to the lender.
A recognition agreement is a legal document that allows parties to recognize each other's interests in an agreement. This document could be used in co-op unit financing, a union negotiation, between borrowers and lenders for a loan, and for other purposes.
