Agenda Packets - 1987/12/14 - Laserfiche WebLink

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Its remedies under the Mortgage based upon the said default of the Redeveloper. in the event of a transfer of the title to the Redevelopment Property to the City, or a third Party approved by the City, whether or not required to cure a default under the Mortgage, said transfer shall not constitute an event of default under the Mortgage unless the security of the mortgagee has, In fact, been impaired by said id air the of the mortgsgee)n he mortgagee the event of atransfer shallpermit the transferee topassume all outstanding obligations (and receive all remaining disbursements) under the Mortgage and the loan secured by the Mortgage. Section 7.7. Subordination end Modification for the Benefit of MotaaKees. (a) In order to facilitate the obtaining of financing for the construction of the M!nlmum Improvements by the Redeveloper, the City agrees to subordinate Its rights under the Redevelopment Property Deed and this Agreement to the Holder of a the Mort:gagt provides that If the Holder,6f the Mortgage e shallprovidedt but only t forecloseon theRedevelopment Property, the improvements thereon, or any portion thereof, it shall assume the Redeveloper's obligations under the Assessment Agreement and under Section 6.3 of this Agreement. (b) In order to facilitate the obtaining of financing for the construction of the Minimum improvements, the City agrees that it shall agree to any reasonable modification of this Articl^ VIl with respect to the rights of the City under any Mortgage secured by the Redevelopment Property or any Improvements thereon, or portion thereof, to accommodate the interests of the Holder of the Mortgage, provided, however, that the City determ!nes, in its reasonable judgment, that any such modification(s) will adequately protect the legitimate interests and security of the City with respect to the District. 31