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9.03 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 commencement, completion, or cessation in the construction of the Developer Improvements 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 or demand. Each such holder shall (insofar as the rights of the . Agency are concerned) have the right, but not the obligation, at its option, within one hundred twenty (120) days after the receipt of the notice, to cure or remedy or commence to cure or remedy any such default or breach and to add the cost thereof to the security interest debt and the lien on its security interest. Nothing contained in this Agreement shall be deemed to permit or authorize such holder to undertake or continue the construction or completion of the Developer 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 Agency relating specifically to such Developer Improvements under this Agreement. The holder in that event must agree to complete, in the manner provided in this Agreement, the Developer Improvements and submit evidence reasonably satisfactory to the Agency that it has the developmental capability on staff or retainer and financial capacity necessary to perform such obligations. Any such holder properly completing such Developer Improvements pursuant to this paragraph shall assume all rights and obligations of Developer under this Agreement and shall be entitled, upon written request made to the Agency, to a Certificate of Completion from the Agency. 9.04 Failure of Holder to Complete Developer Improvements. In any case where, six (6) months after default by the Developer in completion of construction of the Developer Improvements under this Agreement, the holder of record of any mortgage, deed of trust or other security interest creating a lien or encumbrance upon the Property, having first exercised its option to construct, has not proceeded diligently with construction, the Agency shall be afforded those rights against such holder which it would otherwise have against Developer under this Agreement. In the event of a default or breach by the Developer of a mortgage, deed of trust or other security instrument prior to issuance of a Certificate of Completion for all of the Developer Improvements, and the holder has not, within ninety (90) days after receiving notice of said default or breach, exercised its option to complete all of the Developer Improvements, the Agency may terminate the Agreement. 9.05 Holder to be Notified. The Developer, for itself, its successors and assigns hereby warrants and agrees that each term contained herein dealing with security financing and rights of holders shall be either inserted into the relevant deed of trust or mortgage or acknowledged by the holder prior to its coming into any security right or interest in the Property. 34 DOCS00746041 v4\.24258.0002