07-23-2003 Council Agenda - Laserfiche WebLink

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Section 8.4 Mortgagee's Option to Cure Defaults. After any breach or default referred to in Section 8.3, each such holder of a Mortgage shall (insofar as the rights of the City are concerned) have the right, at its option, to cure or remedy such breach or default (or such breach or default to the extent that it relates to the part of the Development Property covered by its mortgage) and to add the cost thereof to the Mortgage debt and the lien of its Mortgage; provided, however, that if the breach or default is with respect to construction of the Minimum Improvements, nothing contained in this Section or any other Section of this Agreement shall be deemed to require such holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction or completion of the Minimum Improvements, provided that any such holder shall not devote the Development Property to a use inconsistent with the Development Program or this Agreement without the agreement of the City. Section 8.5 City's Option to Cure Default on Mortgage. Any Mortgage authorized pursuant to this Article VIII, and executed by the Developer or any subordination agreement relating to such mortgage entered into by the City with respect to the Development Property or any improvements thereon shall provide that, in the event that the Developer is in default under such Mortgage and the holder of the Mortgage notifies the Developer of such default, the holder of the Mortgage shall also notify the City in writing of: (a) the fact of the default; (b) the elements of the default; and (c) the actions required to cure the default. If the default is an "Event of Default" under such Mortgage, which shall entitle such holder thereof to foreclose upon the Development Property, the Minimum Improvements or any portion thereof, and any applicable grace periods have expired, the City shall have, and each Mortgage executed by the Developer or any subordination agreement relating to such Mortgage entered into by the City, with respect to the Development Property or any improvements thereon shall provide that the City shall have such an opportunity to cure the "Event of Default" within such reasonable time period as the holder shall deem appropriate. 1549292v1 Section 8.6 Subordination and Modification for the Benefit of Mortgagees. (a) In order to facilitate the obtaining of financing for the construction or purchase of the Minimum Improvements by the Developer, the City agrees to subordinate its rights under the Development Property Deed and this Agreement and for the purposes described in Section 8.1(a) of this Agreement, but only provided that the First Mortgage provides that if the holder of the First Mortgage shall foreclose on the Development Property, the improvements thereon, or any portion thereof, or accept a deed to the Development Property in lieu of foreclosure, it shall consent to the Assessor's Minimum Market Value set forth in the Assessment Agreement and provided that such subordination shall not relieve the Developer of its obligation hereunder to restore the Development Property in the event of damage, destruction or condemnation of all or any part of the Development Property. -2 5-