RDA Agmt 2001 Lavery California Dealership Properties No. 1 LLC

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discrimination or segregation with reference to selection, location, number, use or occupancy of tenants, lessee, subtenants, sublessees or vendees of the land." 1.03 Contents of Grant Deed. Any Grant Deed from the Agency to the Developer shall contain the covenants set forth in Section 1.02 of this Part. Article Two: SECURITY FINANCING AND RIGHTS OF HOLDERS 2.01 No Encumbrances Except for Development Purposes Notwithstanding any other provision of this Agreement, mortgages and deeds of trust, security interest pursuant to the Uniform Commercial Code or any other reasonable method of security (including assignment of leases or leases to a lender as security for a loan), are permitted to be placed upon the Property before the Certificate of Completion has been issued by the Agency, but only for the purpose of securing loans of funds to be used for financing the acquisition of the Property and/or the design and construction of Improvements and any other expenditures reasonably necessary and appropriate to develop the Property under this Agreement. The Developer shall promptly notify the Agency of any mortgage, deed of trust, security sale and lease -back or other financing, conveyance, encumbrance or lien that has been or will be created or attached to the Property. The words "mortgage" and "deed of trust" as used herein include all other appropriate modes of financing acquisition, construction, and development of the Property or any portion thereof. Notwithstanding the foregoing, the Parties acknowledge that Developer intends to lease the Property to H.W. McKevitt Co., Inc. to operate the dealership. 2.02 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 or to guarantee such construction or completion; nor shall any covenant or any other provision in conveyances from the Agency to Developer of the Property or any part thereof be construed to so obligate such holder. Nothing in this Agreement shall be deemed to require any such holder to devote the Property or any portion thereof to any uses, or to construct any Improvements thereon, but such holder may use the Property or construct the Improvements provided for or authorized by this Agreement, in addition to any other uses permitted by law. All successors and assigns of such holder shall have the same rights and benefits as the holder under this Section. 2.03 Notice of Default and Right to Cure. Whenever the Agency pursuant to its rights set forth in this Agreement delivers any notice or demand to the Developer with respect to the default in the commencement, completion, or cessation of the construction of the Improvements or any other matter, the Agency 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 Disposition and Development Page 24 of 32 Agreement (Lavery California Dealership Properties No. 1 LLC)