Three years ago Adam conveyed Blackacre to Betty for $50,000 by a deed that provided: "By accepting this deed, Betty covenants for herself, her heirs and assigns, that the premises herein conveyed shall be used solely for residential purposes and, if the premises are used for nonresidential purposes, Adam, his heirs and assigns, shall have the right to repurchase the premises for the sum of one thousand dollars ($1,000)." In order to pay the $50,000 purchase price for Blackacre, Betty obtained a $35,000 mortgage loan from the bank. Adam had full knowledge of the mortgage transaction. The deed and mortgage were promptly and properly recorded in proper sequence. The mortgage, however, made no reference to the quoted language in the deed. Two years ago Betty converted her use of Blackacre from residential to commercial without the knowledge or consent of Adam or of the bank. Betty's commercial venture failed, and Betty defaulted on her mortgage payments to the bank. Blackacre now has a fair market value of $25,000. The bank began appropriate foreclosure proceedings against Betty. Adam properly intervened, tendered $1,000, and sought judgment that Betty and the bank be ordered to convey Blackacre to Adam, free and clear of the mortgage. The common-law Rule Against Perpetuities is unmodified by statute. If the court rules against Adam, it will be because 
the provision quoted from the deed violates the Rule Against Perpetuities. the Bank had no actual knowledge of, and did not consent to, the violation of the covenant.  the rights reserved by Adam were subordinated, by necessary implication, to the rights of the bank as the lender of the purchase money.  the consideration of $1,000 was inadequate.