12-19-2001 Council Agenda - Laserfiche WebLink

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(d) There must not be any uncured Events of Default under the terms of this Agreement existing at the time the Developer notifies the City, pursuant to Section 6.2(a), it is requesting the City Loan or at the time the City disburses the proceeds of the City Loan, and if an Event of Default under the terms of this Agreement occurs at any time before the Developer's delivery of the notice described in Section 6.2(a) and the City or the Authority deliver a default notice to Developer pursuant to Section 13.2, the Developer must have cured the default within the time period provided for in Section 13.2. (e) On or before the Disbursement Date, Developer must execute and deliver to the City the Developer Note and the Developer Mortgage; must provide the City with an ALTA Loan Policy of title insurance (including such endorsements as the City may reasonably request) from a title insurance company reasonably acceptable to the City insuring the validity and priority of the Developer Mortgage subject only to exceptions for a First Mortgage the City has approved pursuant to Section 11.2, this Agreement, the Assessment Agreement and any covenants, conditions, restrictions, easements or other title defects encumbering the Redevelopment Property as of the date the Authority conveys the Redevelopment Property to the Developer; and must pay the mortgage registry tax due upon the recording of the Developer Mortgage based on the full amount of the City Loan. 6.3. Developer Note. The Developer must execute and deliver to the City the Developer Note to evidence the Developer's obligation to re -pay the City Loan. The Developer Note must include the following terms. 1353333vDOC Red (V3 to V2) (a) Subject to the provisions of Section 6.3(c) below, interest will not accrue on the outstanding balance of the City Loan for the period from the Disbursement Date through the date immediately preceding the tenth anniversary of the Disbursement Date. (b) Subject to the provisions of Section 6.3(c), during the period from the tenth anniversary of the Disbursement Date through and including the date the Developer fully satisfies the Developer's obligations under the Developer Note, interest will accrue on the outstanding principal balance of the Developer Note at a rate equal to the rate U.S. Bank National Association, or any successor to U.S. Bank National Association, announces from time to time as its "prime" rate (the "Term Rate "). (c) If Developer defaults in the performance of one or more of its obligations under one or more of the Developer Documents, the City gives any notice required under the terms of the relevant Developer Document and the Developer fails to cure the default within the cure period established in the relevant Developer Document, interest accrues on the outstanding principal balance due under the Developer Note as of the date the cure period established under the relevant Developer Document expires until the Developer fully Page 116