Laserfiche WebLink
<br />l . <br /> <br />. ' <br /> <br />challenge. In the event of such a tender, the Developer may elect to provide a single defense on <br />behalf of the Developer and the City, or to provide for separate defenses and appearances. <br /> <br />ARTICLE 6: SECURITY FINANCING AND RIGHTS OF HOLDERS <br /> <br />6.1 Holder Not Obli2ated to Construct. <br /> <br />The holder of any mortgage, deed of trust or other security instrument secured by the <br />Property or part thereof shall not be obligated to construct or complete any improvements on the <br />Property or to guarantee such construction or completion. Nothing in this Agreement shall be <br />deemed to permit or authorize any such holder to devote the Property or any portion thereof to <br />any uses, or to construct any Improvements thereon, other than those uses and improvements <br />provided for or authorized by this Agreement. A lender who comes into possession of the <br />Property or portion thereof pursuant to foreclosure or a deed in lieu of foreclosure, shall have the <br />right in such lender's sole discretion, to adopt this Agreement in which event such lender shall <br />receive entitlements for development of the Property for the Project subject to the terms and <br />conditions hereof. <br /> <br />6.2 No Impainnent. Neither this Agreement nor any default hereunder shall defeat, <br />render invalid, diminish or impair the lien of any mortgage, deed or trust or other instrument <br />secured by the Property. This Agreement shall not prevent or in any manner limit Developer's <br />ability to encumber the Property or any portion thereof or any improvement thereon by any <br />mortgage, deed of trust or other security instrument. <br /> <br />6.3 Notice of Default and Ri~t to Cure. <br /> <br />Whenever the City pursuant to its rights set forth in this Agreement delivers any notice or <br />demand to the Developer with respect to the commencement, completion, or cessation in the <br />construction of the Improvements, the City shall at the same time deliver to each holder of record <br />of any mortgage, deed of trust or other security interest secured by the Property or part thereof, <br />copy of such notice or demand. Each such holder shall (insofar as the rights of the City are <br />concerned) have the right, but not the obligation, at its option, within ninety (90) days after the <br />receipt of the notice, to cure or remedy or commence to cure or remedy any such default or <br />breach. Nothing contained in this Agreement shall be deemed to permit or authorize such holder <br />to undertake or continue the construction or completion of the improvements (beyond the extent <br />necessary to conserve or protect such improvements or construction already made) without frrst <br />having expressly assumed in writing the Developer's obligations to the City relating specifically <br />to such improvements under this Agreement. The holder in that event must agree to complete, in <br />the manner provided in this Agreement, the improvements and submit evidence reasonably <br />satisfactory to the City that it has the developmental capability on staff or retainer and financial <br />capacity necessary to perfonn such obligations. Any such holder properly completing such <br />improvements pursuant to this paragraph shall assume all rights and obligations of Developer <br />under this Agreement. <br /> <br />ATTY/AGR/2008.013 <br />022708 <br /> <br />16 <br />