08-11-2004 Council Agenda - Laserfiche WebLink

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Company has the right to cure the default before the Mortgagee may commence proceedings to foreclose the Mortgage, the Agency shall have the same cure rights as the Company. Nothing contained in this paragraph shall be deemed to grant the Agency any cure rights other than cure rights expressly granted to the Company in the Mortgage. 6. If the Mortgagee forecloses by action or advertisement, the Agency agrees that upon recording of such Sheriffs Certificate and the failure of the Company or the Agency or the successors or assigns of either to redeem during any applicable redemption period, all right, title and interest of the Agency in or to the Townhome Development Property and the Project under the Contract, the Agency Deed, the Mellgren Deed or the Agency Mortgage, including, but not limited to, any right of reentry for breach of conditions subsequent, described in Paragraph 6.5 of the Contract and the Agency Mortgage shall automatically terminate and be null and void and of no further force or effect. In the event that, after receipt of a notice from the Agency of default or Event of Default by the Company under the Contract or the Agency Mortgage, the Mortgagee (or any successor in interest to the Mortgagee) elects, within the time allowed under the respective document, to exercise any right under the Contract or the Agency Mortgage to cure or remedy any breach or default by the Company under the Contract or the Agency Mortgage with respect to construction of the Minimum Improvements (as defined in the Contract), then such exercise of rights or cure or remedy, including, without limitation, the time limits thereon, shall be in accordance with the terms of the Contract or the Agency Mortgage as applicable. Nothing herein shall be construed to create any obligation of the Mortgagee to perform under the Contract or the Agency Mortgage or to cure or remedy any default of the Company under the Contract or the Agency Mortgage. The Agency represents the Mortgagee as follows: (a) The Contract constitutes the legal, valid and binding obligation of the Agency and is enforceable against the Agency in accordance with its terms; (b) The Project, as defined in the Contract, is in conformance with the development objectives set forth in the Redevelopment Plan, as defined in the Contract, and the Tax increment Financing Plan, as defined in the Contract; and (c) Upon the execution and delivery by the Agency's President and Secretary, this Subordination Agreement will constitute the legal, valid and binding obligation of the Agency, enforceable against the Agency in accordance with its terms. 9. The Agency and the Mortgagee acknowledge that the Mortgagee is not a party to the Contract, that the Agency is not party to the TCF Loan Documents and that this Subordination Agreement contains the entire agreement between the Agency and the Mortgagee with respect to each other under the Contract, and that this Subordination Agreement may be amended only in writing signed by both parties hereto. 10. The rights given to the Mortgagee uncier this Subordination Agreement are in addition to the rights of the 'Mortgagee under the TCF Loan Documents and the documents related thereto. in the event oi' any inconsistency between the terms of this Subordination