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10B Action 2012 0117
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10B Action 2012 0117
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1/20/2012 5:54:50 PM
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1/10/2012 5:11:24 PM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Staff Report
Document Date (6)
1/17/2012
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_CC Agenda 2012 0117 CS+RG
(Reference)
Path:
\City Clerk\City Council\Agenda Packets\2012\Packet 2012 0117
Reso 2012-006
(Reference)
Path:
\City Clerk\City Council\Resolutions\2012
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(k) The Borrower shall have voluntarily suspended its business or Borrower <br />shall have been dissolved or terminated; <br />(1) An event of default arises under any City Document and remains uncured <br />beyond any applicable cure period; or <br />(m) Borrower defaults in the performance of any term, provision, covenant or <br />agreement contained in this Agreement other than an obligation enumerated in this Section 9.1 <br />and unless a shorter cure period is specified for such default, the default continues for ten (10) <br />days in the event of a monetary default or thirty (30) days in the event of a nonmonetary default <br />after the date upon which City shall have given written notice of the default to Borrower; <br />provided however, if the default is of a nature that it cannot be cured within thirty (30) days, a an <br />Event of Borrower Default shall not arise hereunder if Borrower commences to cure the default <br />within thirty (30) days and thereafter prosecutes the curing of such default with due diligence <br />and in good faith to completion and in no event later than 120 days after receipt of notice of the <br />default. <br />9.2 City Default. An event of default on the part of City ( "Event of City Default ") <br />shall arise hereunder if City fails to keep, observe, or perform any of its covenants, duties, or <br />obligations under this Agreement, and the default continues for a period of thirty (30) days after <br />written notice thereof from Borrower to City, or in the case of a default which cannot with due <br />diligence be cured within thirty (30) days, City fails to commence to cure the default within <br />thirty (30) days of such notice and thereafter fails to prosecute the curing of such default with <br />due diligence and in good faith to completion. <br />9.3 City's Right to Terminate Agreement. If an Event of Borrower Default shall <br />occur and be continuing beyond any applicable cure period, then City shall, in addition to other <br />rights available to it under law or this Agreement, have the right to terminate this Agreement. If <br />City makes such election, City shall give written notice to Borrower and to any mortgagee <br />entitled to such notice specifying the nature of the default and stating that this Agreement shall <br />expire and terminate on the date specified in such notice, and upon the date specified in the <br />notice, this Agreement and all rights of Borrower under this Agreement, shall expire and <br />terminate. <br />9.4 City's Remedies and Rights Upon an Event of Borrower Default. Upon the <br />occurrence of an Event of Borrower Default and the expiration of all applicable cure periods, <br />City shall have all remedies available to it under this Agreement or under law or equity, <br />including, but not limited to the following, and City may, at its election, without notice to or <br />demand upon Borrower, except for notices or demands required by law or expressly required <br />pursuant to the City Documents, exercise one or more of the following remedies: <br />(a) Accelerate and declare the balance of the Restated Note and the Note and <br />interest accrued thereon immediately due and payable; <br />(b) Seek specific performance to enforce the terms of the City Documents; <br />(c) Foreclose on the Property pursuant to the Deed of Trust; <br />1755895.2 25 <br />
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