An “Aztech Recognition Agreement” or “Aztec Form” is a trilateral legal agreement between the shareholder, the lender and the cooperative cooperation. The name of the form comes from the company that standardized the agreement in the 1970s. Before establishing a standard form, banks/lenders had to negotiate individually with each cooperative. The Aztech Recognition Agreement (sometimes also written Aztec) is a three-party agreement between the buyer, the lender and the co-op. It has its name from the company that produces it, the company Aztech Document Systems, which dates from a not so old date of 1973 AD. Previously, lenders negotiated directly with developers and counter-cooperatives to create customized documents for individual shareholders. I am curious. You add the two spellings – aztec and aztech for this standard form. As I search, I find references to both, but I can`t find a citation on a certain source relevant to the term and its spelling. Where does the term come from and what is the original spelling? Thank you,NYGeek An Aztec form is an agreement between three parties: the bank, the cooperative and the shareholder. It is first and foremost an agreement between the cooperative and the bank lender, signed and acknowledged by the shareholder.
The Aztech agreement stipulates that the lender/bank has the right of priority pledge or the right of superior pledge in the buyer`s shares in a cooperative housing. Self-leasing is a guarantee for the loan. Cooperatives are generally happy to sign an Aztech recognition agreement for several reasons. First of all, the lender is asked, so if the building wants financing, they must sign the Aztec. It also allows the lender to pay for your maintenance if you don`t. The lender wants to have their collateral as clean as possible, so paying a few thousand dollars to prevent its six- or seven-figure asset from being damaged is a good investment. This effectively gives the cooperative maintenance insurance for all funded units. Finally, the lender agrees that the cooperative is first paid during a seizure. It is only once the cooperative is fully realized that the lender receives a product from a sale. .