05-11-2004 Council Agenda - Laserfiche WebLink

Home Browse Search

less than the City's pro rata share of monthly payments or prepayments received by the Private Lender, except as provided in the Event of Default as described herein. In receipt and disbursement of any sums covered by this Section, the Private Lender will exercise the same care as would be exercised in the handling of loans for its own account. After an Event of Default shall have occurred and after the required notice of period of said default and Borrower's failure to cure said default, then, upon receipt of any monthly payments from the Borrower, or upon receipt of any other payment from any source by or on behalf of the Borrower, the Private Lender shall apply the entire amount of such payment first to pay all costs and expenses incurred by the Private Lender in connection with the enforcement of foreclosure of any note, mortgage or other document securing the repayment of the Loan, second to pay interest then due on the Private Lender's interest in the Loan, and then shall apply the remaining amount of such payment as a payment or prepayment of the outstanding principal amount of the Private Lender's interest in the Loan, until all interest due to the Private Lender and the entire principal amount of the Private Lender's interest in the Loan have been paid in full, and shall thereafter remit to the City the remainder of such amounts as a payment or prepayment of the principal amount of and interest on the City's interest in the Loan. 6. Any Loan repayment received directly from the borrower by the City shall be remitted to the Private Lender. 7. The Private Lender shall promptly advise the City, in writing, of any default by the Borrower in repaying any amounts due under the terms of the Loan or under any mortgage, agreement, instrument or document securing repayment of the Loan. 8. Any mortgage, agreement, instrument or other document securing repayment of the Loan shall be foreclosed or enforced only upon the written consent of both the City and the Private Lender, such consent not to be unreasonably withheld. In no case shall such consent from the City be withheld for more than six (6) consecutive months after default. In foreclosing any mortgage or enforcing any remedy under any other agreement, instrument or document securing repayment of the Loan, the Private Lender shall be entitled to receive all amounts derived from such foreclosure of enforcement until the Private Lender has recovered all amounts due to it with respect to its interest in the Loan and its costs incurred in such foreclosure or enforcement. Thereafter, the Private Lender shall remit to the City all remaining amounts derived from such foreclosure or enforcement. 9. So long as this Participation Agreement is in force and effect, the Private Lender shall, within thirty (30) days of the annual anniversary date of this Participation Agreement, furnish the City with an annual report summarizing the monthly payments or other payments with respect to the Loan received by the Private Lender, the amounts paid as interest on the Loan, the payments and prepayments of the principal amount of the Loan, any foreclosure actions or enforcement proceedings with respect to any security for the repayment of the Loan and any amounts derived there from, together with an accounting of the applications of such amounts. -12-