Ord04 2265 - Laserfiche WebLink

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ARTICLE 5: SECURITY FINANCING AND RIGHTS OF HOLDERS 5.01 Holder Not Obligated to Construct. The holder of any mortgage, deed of trust or other security interest authorized by this Agreement is not obligated to construct or complete any Improvements on the Property or to guarantee such construction or completion. Nothing in this Agreement shall be deemed to permit or authorize any such holder to devote the Property or any portion thereof to any uses, or to construct any Improvements thereon, other than those uses of Improvements provided for or authorized by this Agreement. 5.02 Notice of Default and Right to Cure. Whenever the City pursuant to its rights set forth in this Agreement delivers any notice or demand to the Developer with respect to the commencement, completion, or cessation in the construction of the Improvements, the City shall at the same time deliver to each holder of record of any mortgage, deed of trust or other security interest authorized by this Agreement a copy of such notice or demand. Each such holder shall (insofar as the rights of the City are concerned) have the right, but not the obligation, at its option, within ninety (90) days after the receipt of the notice, to cure or remedy or commence to cure or remedy any such default or breach. Nothing contained in this Agreement shall be deemed to permit or authorize such holder to undertake or continue the construction or completion of the Improvements (beyond the extent necessary to conserve or protect such Improvements or construction already made) without first having expressly assumed in writing the Developer's obligations to the City relating specifically to such Improvements under this Agreement. The holder in that event must agree to complete, in the manner provided in this Agreement, the Improvements and submit evidence reasonably satisfactory to the City that it has the developmental capability on staff or retainer and financial capacity necessary to perform such obligations. Any such holder properly completing such Improvements pursuant to this paragraph shall assume all rights and obligations of Developer under this Agreement. ARTICLE 6: AMENDMENT OF AGREEMENT; ANNUAL REVIEW 6.01 Modifications to Agreement. (a) Modification Due to Request by Lender. The City shall not unreasonably withhold its consent to modifications of this Agreement requested by Developer's lender or lenders provided such modifications do not materially alter the City's substantive rights and obligations under this Agreement, nor materially reduce the Developer's duties and obligations hereunder. 1289\02\ 175277 .12 11