pf_03312 - Laserfiche WebLink

Home

this Agreement, the CITY shall at the same time forward a copy of such notice or demand to each Holder of any Mortgage authorized by the Agreement at the last address of such Holder shown in the records of the CITY. Section 5.3. Lender's Option to Cure Defaults. After notification of any Event of Default referred to in Section 71 of this Agreement, each such Holder, insofar as the rights of the CITY are concerned, shall have the right, at its option, to cure or remedy such Event of Default, or such Event of Default to the extent that it relates to the part of the Property covered by its Mortgage, and to add the cost thereof to the Mortgage debt and the lien of its Mortgage; provided that if the Event of Default is in respect to construction of the Improvements, nothing contained in this Section 5.3 or any other section of this Agreement shall be deemed to permit or authorize such Holder, either before or after foreclosure or action in lieu thereof, to undertake or continue the construction of the Improvements or completion of the Development beyond the extent necessary to conserve or protect the Improvements or construction aJready made without ftrst having expressly assumed the obligation to the CITY, by written agreement, to complete, in the manner provided in this Agreement, the Development or the part thereof to which the lien or title of such Holder relates. Any such Holder who shall promptly complete the Development or applicable part thereof shall be entitled, upon written request made to the CITY, to certification by the CITY to such effect in the manner provided in Section 3.4 of this Agreement, and any such certificate shall, if so requested by such Holder, mean and provide that any remedies or rights that the CITY shall have or be entitled to because of failure of the GMMHC or any successor in interest to the Property, or any part thereof, to cure or remedy any Event of Default with respect to the construction of the Improvements on other parts or parcels of the Property, or because of any other default in or breach of the Agreement by the GMMHC or such successor, shall not apply to the Property to which such certification relates. Section 5.4. CITY's Option to Cure Default. In the event the Holder of fmancing authorized pursuant to this Article VI sends a notice of an Event of Default to the GMMHC, the Holder shall also use its best efforts to notify the CITY in writing of: (a) the fact of the default; (b) the elements of the default; and (c) the actions required to cure the default If the GMMHC fails to cure the Event of Default in a timely manner, the CITY shall have 30 days from the expiration of such cure period to cure the default. If the CITY cures the default as set forth above, the Holder shall pursue none of its remedies under the fmancing based upon the said default of the GMMHC. In the event of a transfer of the title to the Property to a third party approved by the CITY and Holder, which approval cannot be unreasonably withheld, regardless of whether required to cure an Event of Default under the fmancing unless the security of the Holder has, in fact, been impaired by said transfer. In the event of such approved transfer, which does not impair the security of the Holder, the Holder shall pennit the transferee to assume all outstanding obligations and receive all remaining disbursements under the financing. Section 5.5. Subordination. In order to facilitate obtaining ftnancing for the construction of the Improvements by the GMMHC, the CITY shall agree to modify this Agreement in the manner and to the extent it deems reasonable, upon request by the ftnancial institution and the GMMHC. ARTICLE VI. PROHmITIONS AGAINST ASSIGNMENT AND TRANSFER Section 6.1. Representation as to Redevelopment. The GMMHC represents and agrees that its undertakings pursuant to the Agreement, are for the purpose of development of the Property and not for speculation in land holding. The GMMHC further recognizes that, in view of the importance of the Development to the general welfare of Roseville and the substantial financing and other public aids that have been made available by the CITY and City for the purpose of making the Development possible, the qualification and identity of the GMMHC are of particular concern to the CITY. The GMMHC further recognizes that it is because of such qualifications and identity that the CITY is entering into this Agreement, and, in so doing, is further willing to rely on the representations and undertakings of the GMMHC for the faithful performance of all undertakings and covenants agreed by the GMMHC to be perfonned. 5