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<br />relating to such mortgage entered into by the City with respect to the Development Property or <br />any improvements thereon shall provide that, in the event that the Developer is in default under <br />such Mortgage and the holder of the Mortgage notifies the Developer of such default, the holder <br />of the Mortgage shall also notify the City in writing of: <br /> <br />(a) the fact of the default; <br /> <br />(b) the elements of the default; and <br /> <br />(c) the actions required to cure the default. <br /> <br />If the default is an "Event of Default" under such Mortgage, which shall entitle such holder <br />thereof to foreclose upon the Development Property, the Minimum Improvements or any portion <br />thereof, and any applicable grace periods have expired, the City shall have, and each Mortgage <br />executed by the Developer or any subordination agreement relating to such Mortgage entered <br />into by the City, with respect to the Development Property or any improvements thereon shall <br />provide that the City shall have such an opportunity to cure the "Event of Default" within such <br />reasonable time period as the holder shall deem appropriate. <br /> <br />Section 8.7. Subordination and Modification for the Benefit of Mortgagees. <br /> <br />(a) In order to facilitate the obtaining of financing for the construction or <br />purchase of the Minimum Improvements by the Developer, the City agrees to subordinate <br />their rights under this Agreement and for the purposes described in Section 8.1 ( a) of this <br />Agreement, but only provided that the First Mortgage provides that if the holder ofthe <br />First Mortgage shall foreclose on the Development Property, the improvements thereon, <br />or any portion thereof, or accept a deed to the Development Property in lieu of <br />foreclosure, it shall consent to the Assessor's Minimum Market Value set forth in the <br />Assessment Agreement and provided that such subordination shall not relieve the <br />Developer of its obligation hereunder to restore the Development Property in the event of <br />damage, destruction or condemnation of all or any part of the Development Property. <br /> <br />(b) In order to facilitate the obtaining of financing for the construction of the <br />Minimum Improvements, the City agree that they shall agree to any reasonable <br />modification of this Article VIII or Article V, intercreditor agreement or waiver of its <br />rights hereunder to accommodate the interests of the holder of the First Mortgage, <br />provided, however, that the City determines, in their reasonable judgment, that any such <br />modification(s) will adequately protect the legitimate interests and security of the City <br />with respect to the Project and the Development Project. The City also agree to consider <br />such modification(s) of this Article VIII with respect to other holders, and to agree to <br />such modifications if the City deem such modification(s) necessary and reasonably. <br /> <br />ARTICLE IX <br /> <br />PROHIBITIONS AGAINST ASSIGNMENT AND <br />TRANSFER; INDEMNIFICATION <br />24 <br />