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(b) Failure by the GMMHC to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or perfonned hereunder, including the time for such perfonnance~ (c) If the GMMHC shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (d) If the GMMHC, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order of decree appointing, without the consent of the GMMHC, a receiver of the GMMHC or of the whole or substantially all of its property, or approve a petition filed against the GMMHC seeking reorganization or arrangement of the GMMHC under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 60 days from the date of entry thereof; or (e) If the Development is in default under any Mortgage and has not entered into a work-out agreement with the Mortgagee. Section 7.2. Remedies on Default. Whenever any Event of Default occurs, the CITY may, in addition to any other remedies or rights given the CITY under this Agreement, take anyone or more of the following actions following written notice by the CITY to the GMMHC as provided in Section 9.5 of this Agreement: (a) suspend its perfonnance under this Agreement until it receives assurances from the GMMHC, deemed reasonably adequate by the CITY, that the GMMHC will cure its default and continue its perfonnance under this Agreement; (b) cancel or rescind this Agreement; (c) withhold the Certificate of Completion; or (d) take whatever action at law or in equity may appear necessary or desirable to the CITY to collect any payments due under this Agreement, or to enforce perfonnance and observance of any obligation, agreement, or covenant of the GMMHC under this Agreement; provided, however, that any exercise by the CITY of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the Holders of a Mortgage; and provided further that should any Mortgagee succeed by foreclosure of the Mortgage or deed in lieu thereof to the GMMHC's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perfonn the obligations of the GMMHC only to the extent that the same have not therefore been perfonned by the GMMHC. Said Mortgagee, upon foreclosure or taking of a deed in lieu, shall have no obligations pursuant to this Agreement other than as specifically set forth in the foregoing sentence. Section 7.3. Reinvesting Interest in CITY upon Happening of Event of Default Subsequent to Conveyance of Property to GMMHC. In the event that subsequent to the closing or the sale of the Property to the GMMHC and prior to the issuance of the Certificate of Completion: (a) the GMMHC fails to begin construction of the Improvements in conformity with this Agreement, and such failure is not due to Unavoidable Delays; (b) the GMMHC, after commencement of the construction of the Improvements, defaults in or violates obligations with respect to the construction of the Improvements, including the nature and the date for the completion thereof, or abandons or substantially suspends construction work, and such act or actions is not due to Unavoidable Delays; (c) the GMMHC or successor interest fails to pay real estate taxes or assessments on the Property or any part thereof when due, or places thereon any encumbrance odien unauthorized by this Agreement, or suffers any levy or attachment to be made, or any supplier's or mechanic's lien, or any other unauthorized encumbrance or lien to attach; 7