06-10-2026 Council Packet - Laserfiche WebLink

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5 Error! Unknown document property name. (3) At any time prior to the full repayment of the LCDA Loan, the entire unpaid principal balance of the LCDA Loan shall be immediately due and payable upon the occurrence of the earliest of the following Events of Default: (a) The sale, assignment, conveyance, transfer, lease, lien, encumbrance, or refinancing of the Project by Borrower without the Lender’s prior written consent, except for leases to tenants in the ordinary course of business and the transfer of limited partnership interests in the Borrower pursuant to the Borrower’s Partnership Agreement; or (b) Termination of use of the Project as rental housing for low or moderate income tenants prior to full repayment of the LCDA Loan as required herein; or (c) Any use of the Project or a portion of the Project which violates any federal, state or local law, statute, or ordinance, which includes illegal discrimination, pornography, gambling or drug related activities; provided, however, that Borrower shall not be in default as a result of illegal activities at the Project by tenants of the Project if Borrower is diligently pursuing all reasonable actions to prohibit such illegal activities; or (d) Default by Borrower in the performance of any other covenant, term or condition of this Agreement; the LCDA Note; the LCDA Mortgage; or any other agreement or mortgage relating to or encumbering the Project. (4) Upon the occurrence of one of the Events of Default specified above, Lender shall give written notice to Borrower as provided in Section 7.01 of this Agreement, specifying: (i) the event of default; (ii) the action required to cure the event; (iii) a date not less than thirty (30) days from the date the notice is mailed to Borrower by which such default must be cured; and (iv) that failure to cure such default on or before the date specified in the notice may result in acceleration of the LCDA Loan. The limited partners of the Borrower and the lenders of the Other Project Financing shall have the right but not the obligation to cure an Event of Default during the applicable cure period as required herein and such cure shall be accepted or rejected by Lender as though such cure had been performed by Borrower. Section 2.04. Prepayment. Borrower shall have the right, but not the obligation, to prepay without penalty the LCDA Loan, or any portion thereof at any time, and from time to time, prior to the date on which the same become due, as herein provided. Any such prepayment shall be applied first to interest due thereon and the remainder, if any, to principal. Conditions Precedent to Advances Section 3.01. Conditions Precedent to Disbursement. The obligation of the Lender to authorize the disbursement of LCDA Proceeds shall be subject to the conditions precedent that Borrower shall be in compliance with the terms of this Agreement and the following conditions: (a) Borrower shall be in compliance with the LCDA Loan Documents. (b) Borrower shall have delivered, without expense to the Lender, the LCDA Loan Documents and the Construction and Other Documents. (c) Borrower shall have deposited in escrow with Title or otherwise have committed to the satisfaction of Lender one hundred percent (100%) of all equity, loan proceeds or other