Section 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.