12-19-2001 Council Agenda - Laserfiche WebLink

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Loan must obligate the Developer to make regular payments of principal and interest so as to prevent neuative amortization of the First Mortpape Loan, 11.3. Notice of Default; Copy to Mortgagee. Whenever the City or the Authority is obligated to deliver a notice to the Developer with respect to and Event of Default, the City or Authority will, at the same time, send a copy of the notice to any mortgagee if the mortgagee has provided the City and Authority with written notice of the existence of its Mortgage and an address to which the notice should be sent. 11.4. Mortgagee's Option to Cure Events of Defaults. The City and the Authority agree to accept from any mortgagee any payments or the performance of any obligations necessary to cure an Event of Default as though Developer had tendered such payment or performance. 11.5. City's Option to Cure Default on Mortgage. Any Mortgage must provide that, in the event that the Developer is in default under the Mortgage the mortgagee must 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 under such Mortgage entitles the mortgagee to foreclose upon the Redevelopment Property or any portion thereof, and any applicable grace periods have not expired, the mortgagee must grant the City the right to cure the Default upon the same terms as the Developer. 11.6. Subordination for the Benefit of a First Mortgagee. Under the terms of the Purchase Agreement, the Authority is conveying the property to the Developer subject to a right of reverter in favor of the Authority which allows the Authority to obtain a court order transferring title to the Redevelopment Property back to the Authority if the Developer does not remediate the soils contamination on the Property in compliance with Section 7 and complete construction of the Minimum Improvements in compliance with the requirements of Section 8. The Authority agrees that, with respect to any First Mortgage the City approves pursuant to Section 11.2 above, the Authority will execute the First Mortgage for purposes of subjecting its reversionary interest in the Redevelopment Property to the lien of the First Mortgage. The First Mortgage must expressly provide that the Authority is executing the First Mortgage solely for the purposes of subjecting its future interest in the Redevelopment Property to the lien of the First Mortgage and that the Authority has no obligation to perform and assumes no liability for the Developer's failure to perform any obligations of the Developer under the First Mortgage. The City agrees to subordinate its rights under this Agreement, but not its rights under the Assessment Agreement described in Section 9 of this Agreement, to the rights of a first Mortgage the City approves pursuant to Section 11.2. 1353333vDOC Red (V3 to V2) Page 128