10C Action 2009 0615 - Laserfiche WebLink

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for disbursement of Loan Proceeds proves to have been false or misleading in any material adverse respect when made. (I) If the Borrower defaults in the performance of any term, provision, covenant or agreement (other than an obligation enumerated in this Section 2.1) contained in any City Document, and unless such document specifies a shorter cure period for such default, the default continues for ten (10) days in the event of a monetary default or thirty (30) days in the event of anon-monetary default after the date upon which City shall have given written notice of the default to Borrower, provided that in the case of anon-monetary default that is not susceptible of cure within thirty (30) days, an Event of Default shall not arise hereunder if Borrower commences to cure the default within thirty (30) days and thereafter prosecutes the curing of such default to completion with due diligence and in good faith, but in no event longer than 120 days from the receipt of notice of default. (J) If an Event of Default shall have been declared under any other City Document, subject to the expiration of any applicable cure period set forth in such documents. 2.2 REMEDIES. Upon the occurrence of an Event of Default and subject to Section 3.9, City shall have all remedies available to it under law or equity, including, but not limited to the following, and City may, at its election, without notice to or demand upon Borrower, except for notices or demands required by law or expressly required pursuant to the City Documents, exercise one or more of the following remedies: (A) accelerate and declare the entire unpaid principal balance of this Note, together with all accrued interest thereon and all sums due hereunder immediately due and payable regardless of any prior forbearance; (B) seek specific performance to enforce the terms of the City Documents; (C) foreclose on the Property pursuant to the City Deed of Trust; (D) pursue any and all other remedies available under law to enforce the terms of the City Documents and City's rights thereunder. Borrower shall pay all reasonable costs and expenses incurred by or on behalf of City including, without limitation, reasonable attorneys' fees, incurred in connection with City's enforcement of this Note and the exercise of any or all of its rights and remedies hereunder and all such sums shall be a part of the indebtedness secured by the City Deed of Trust. 2.3 DEFAULT RATE. Upon the occurrence of an Event of Default, interest shall automatically be increased without notice to the rate often percent (10%) per annum (the "Default Rate"); provided however, if any payment due hereunder is not paid when due, the Default Rate shall apply commencing upon the due date for such payment. When Borrower is no longer in default, the Default Rate shall no longer apply, and the interest rate shall once again be the rate specified in the second paragraph of this Note. Notwithstanding the foregoing provisions, if the interest rate charged exceeds the maximum legal rate of interest, the rate shall be the maximum rate permitted by law. The imposition or acceptance of the Default Rate shall in no event constitute a waiver of an Event of Default under this Note or prevent City from exercising any of its other rights or remedies. Secured Promissory Note Mission Bell Apts. 1232840-3