01-04-1999 WS & CC - Laserfiche WebLink

Home Browse Search

BRIGGS&MORGAN Fax:6512236645 Dec 11 '98 17:01 P.23 ARTICLE VIII MORTGAGE FINANCING Section 8 .1 . Limi ation U on P cumbrance of Pr ert . Prior to the completion of the Minimum Improvements, as determined by the City, neither the Developer nor any successor in interest to the Development Property or any part thereof shall engage in any financing or any other transaction creating any mortgage, or other encumbrance or lien upon the Development Property, whether by express agreement or operation of law, except : (a) nY Morgage which the Develo•er •urchases thi Develo en Pro ert sub i ect to• aid ,(b) for the. purposes of obtaining funds in an amount not exceeding the cost of the Development Property and the Minimum Improvements (including, but not limited to, labor and materials, equipment, professional fees, real estate taxes, construction interest, organization and other indirect costs of development, costs of constructing the Minimum Improvements, an allowance for contingencies, costs of any financing to fund construction or acquisition of the Project, amounts required to fund any reserves relating to construction or acquisition of the Project, and amounts required to fund any required escrow accounts) ; and only upon the prior written approval of the City in accordance with Sections 8 .1 and 8 .2 . The City shall not approve any Mortgage which does not contain terms that conform to the terms of Section 8 .5, except as provided in Section 8 . 6 of this Agreement. Section 8 .2 . AAoroval of MThe City shall approve a Mortgage if: o fi aaae_ (a) the City first receives a copy of all mortgage documents; (b) the mortgage loan, together with other funds available to the Developer, will, in the reasonable judgment of the City, be sufficient to construct the Minimum Improvements; 965316.Red v2 to v1! 12/11/99 19