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Shortfall paid by the Redeveloper pursuant to this Section 6.1 ARTICLE VII aI� nor roimhur Aei hV ha AQAn —A., rh. ——ieinns of Mortgage Financing to exceed 25% of the principal of and interest on aT1 Bonds which has been paid and which is due and Section 7.1 Mortgage Financing. within 120 days, payable on the next interest payment date for any series of after execution of this Agreement by Redeveloper, Redeveloper Bonds. The obligation of Redeveloper to make the payments shall submit to Agency evidence of a commitment for mortgage provided in this Section shall be absolute and unconditional, financing sufficient for construction of the Minimum and shall not be subject to any defense, right of set off, " Improvements on Phase I. A commitment for mortgage financing recoupment or counterclaim except the limitations of Section sufficient for construction of the Minimum Improvements on 4.5(d) hereof and exce o the ex uch a eats are Phases II and III shall be submitted in accordance with the reimhurseable aencv un er t e provisions o ec ion ,6.3 Time Table.. If the Agency rejects the evidence of mortgage. hereof. financing as inadequate, it shall do so in' writinq, specifying the basis for the rejection. In any event, Redeveloper shall Section 6.2 Taxes and Valuations. Redeveloper shall submit adequate evidence of mortgage financing within 30 days pay when due all'real estate taxes and installments of special after such rejection. assessments payable on a Phase subsequent to the date title to the Phase is conveyed to Redeveloper. Prior to the Maturity- Section 7.2 Limitation Upon Encumbrance of Property. Date of any Bonds outstanding, Redeveloper will not seek Prior to the completion of the Minimum Improvements, as "administrative• or judicial review of any statute, law, rule,, certified by the Agency; neither Redeveloper nor any successor Assessor's Market Value, Assessed Value, or other factor in•interest to the Redevelopment Property or any part thereof relating to the real estate taxes for the Redevelopment shall engage in any financing or any other transaction creating Property or the Redevelopment Project which would or-might any Mortgage or other encumbrance or lien upon the result in said taxes being insufficient in any year to pay the Redevelopment Property, whether by express agreement or principal and interest on all Bonds as such amounts become due. operation of law, or suffer any encumbrance or lien to be made on or attach to the Redevelopment Property, except with the Section 6.3 Reimbursement to Redeveloper. If the prior written approval of the Agency, and for the purposes of Redeveloper makes any payments to the Agency under Section 6.1 obtaining funds only to the extent necessary for acquiring the hereof it shall be. entitled-to reimbursement for such payment Redevelopment Property and constructing the Minimum- by the Agency, without interest thereon, but only out of the Improvements. The Agency shall not approve any Mortgage which amount of tax increment generated by the Project received by does not conform to the requirements of this Agreement. the Agency in any year which, together with anv tax increment ener a Section 7.3 Approval of Mortgage. -The Agency shall on is La excas_ , or 115% of the principal and interest to approve a Mortgage if the Agency first (a) receives a copy of be paid on the Bonds in such year and is not needed by the all- mortgage documents; (b) determines, in its sole discretion, Agency to pay any other public costs of the redevelopment of that the Mortgagee is a responsible lender capable of.making the Project Area. The obligation of the Agency to reimburse the mortgage loan; (c) determines, in its sole discretion, that the Redeveloper is expressly limited to such excess tax the mortgage loan, together with other funds available-to increment, and no other moneys or other property or revenues of Redeveloper, will be sufficient to construct the Minimum the Agency or City shall be available to reimburse the Improvements on the Phase or Phases to be covered by the Redeveloper. If such excess tax increment is not available to Mortgage; (d) determines that no Event of Default has occurred; the Agency in an amount sufficient to reimburse the Redeveloper and (e) determines, in its sole discretion, that the terms of under this Section 6.3 the Agency shall be under no- obligation the Mortgage conform to the terms of this Agreement. to reimburse the Redeveloper for an amount greater than such excess tax increment. The Redeveloper agrees that the Section 7.4 Copy of Notice of Default to Mortgagee obligation of the.Agency to reimburse the Redeveloper shall not Whenever the Agency shall deliver any notice or demand to . constitute a debt of the-Agency or the City. Redeveloper with respect to any breach or default by Redeveloper in its obligations or covenants under this Agreement, the Agency shall at the same time forward a copy of such notice or demand to the Mortgagee at the last address of such Mortgagee shown in the records of the Agency. -17- -18-