07-10-2019 Workshop & Council Packet

Home Browse Search

94245185.v2-5/15/19 4 (d) In the event of foreclosure (or deed in lieu of foreclosure), the Development Agreement (including without limitation, any and all land use covenants and/or restrictions contained herein) shall automatically terminate. (e) Borrower and the EDA acknowledge that Borrower’s failure to comply with the covenants provided in the Development Agreement does not and shall not serve as a basis for default under the HUD Requirements, unless a default also arises under the HUD Requirements. (f) In enforcing the Development Agreement the EDA will not file any claim against the Project, the Mortgage Loan proceeds, any reserve or deposit required by HUD in connection with the Security Instrument or HUD Regulatory Agreement, or the rents or other income from the property other than a claim against: i. Available Surplus Cash, if the Borrower is a for-profit entity; ii. Available distributions of Surplus Cash and Residual Receipts authorized for release by HUD, if the Borrower is a limited distribution entity; or iii. Available Residual Receipts authorized by HUD, if the Borrower is a non- profit entity. (g) For so long as the Mortgage Loan is outstanding, Borrower and EDA shall not further amend the Development Agreement, with the exception of clerical errors or administrative correction of non-substantive matters, without HUD’s prior written consent.. (h) Subject to the HUD Regulatory Agreement, the EDA may require the Borrower to indemnify and hold the EDA harmless from all loss, cost, damage and expense arising from any claim or proceeding instituted against EDA relating to the subordination and covenants set forth in the Development Agreement, provided, however, that Borrower’s obligation to indemnify and hold the EDA harmless shall be limited to available Surplus Cash and/or Residual Receipts of the Borrower. [THE REMAINDER OF THIS PAGE SHALL REMAIN BLANK]