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City Dr�ft <br /> b128/13 <br /> 6.2 No Prohibited Encumbrances. The Developer shall not record or allow <br /> to be recorded against a11 or any portion of the Site or the Projact any <br /> mortgage, deed of trust, encumbrance or lien that is a Prohibited <br /> Encumbrance. The Developer shall rernove or cause to be remaved any <br /> Prohibited Encumbrance made or recorded against all ox any portion of the <br /> Site or the Project or shall assure the cornptete satisfaction of any such <br /> Prohibited Encum.brance to the satisfac�ian of the City. The covenants of <br /> the Developer set forth in this Section 6.2 regarding the placernent of <br /> encurnbrances against the Project or the Site sha11 run with the land and <br /> bind successive owners of�he Site,until issuance of a Certificate of <br /> Cornpletion for the Project, whereupon such obligatians sha11 terminate. <br /> Any encumbrance not specifically approved by the City prior to the <br /> issuance of a Certificate of Completion sha11 be deemed a Prohibited <br /> Encumbrance........................................................................................................43 <br /> 6.3 City Right to Discharge Prohibited Encambrances. After sixty(60) <br /> calendar days prior written Notice to the Developer, and provided that the <br /> Developer has not satisfied ar removed the subject Prahibited <br /> Encumbrance(or is the subject Prohibited Encumbrance is not susceptible <br /> of satisfaction or removal within such sixty-day period,the Developer <br /> faiZs to commence the satisfaction or remaval of the subject Prohibited <br /> Encumbrance within such period and thereafter to prosecute diligently to <br /> completian), the City shall have the right, but nat the obligation,to satisfy <br /> or remove any Prohibited Encumbrance against the Site or the Project and <br /> receive reimbursenaent from the Developer for any amounts paid or <br /> incurred in satisfying or removing any such Prohibited Encumbrance, <br /> upon demand. Any amount expended by the City to satisfy or remove any <br /> Prohzbited Encumbrance that is not reimbursed to the City by the <br /> Developer within t.h�rty(30) calendar days after written demand to the <br /> Developer for such reimbursement, shall accrue interest from the date <br /> such expense was incurred by the City at the lesser of: (i)the rate of ten <br /> percent(10°/a)per annum; or{ii)the Us�ary Limit,until paid in full. The <br /> covenants of the Developer set forth in this Section 6.3 shall iun with the <br /> land and bind successive owners of the Site, un�il issuance of a Certificate <br /> af Completion for the Project, whereupon such rights and obligations shall <br /> automaticallyterminate........................................................................................43 <br /> 6.4 Developer Right to Contest Validity af Encumbrance. Developer may <br /> contest the validity of any Prohibited Encumbrance, and nothing in this <br /> Agreement sha11 require the Developer to pay ox make pmvision for the <br /> payment of any tax, assessment, lien or charge associated with such <br /> Prahibited Encumbrance so long as Developer in good faith sha11 contest <br /> the validity or amount therein and so long as such delay in payment sha11 <br /> not subject the Site or the Project(or any portion thereo�to foxfeiture or <br /> sale. ......................................................................................................................43 <br /> 6.5 Rights of Lenders and City Regarding Permitted Encumbr�nces................43 <br /> 82483.0000917571312.10 � <br />