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breach and to add the cost thereof to the security interest debt and the lien on its <br />security interest. Nothing contained in this Agreement shall be deemed to permit or <br />authorize such holder to undertake or continue the construction or completion of the <br />Improvements (beyond the extent necessary to conserve or protect such <br />improvements or construction already made) without first having expressly assumed <br />in writing the Developer's obligations to the Agency relating to such Improvements <br />under this Agreement. The holder in that event must agree to complete, in the <br />manner provided in this Agreement, the Improvements and submit evidence <br />reasonably satisfactory to the Agency that it has the developmental capability on staff <br />or retainer and financial responsibility necessary to perform such obligations. Any <br />such holder properly completing such Improvements pursuant to this paragraph shall <br />assume all rights and obligations of Developer under this Agreement and shall be <br />entitled, upon written request made to the Agency, to a Certificate of Completion <br />from the Agency. <br />2.04 Failure of Holder to Complete Improvements. <br />In any case where, six (6) months after default by the Developer in completion <br />of construction of the Improvements under this Agreement, the holder of record of <br />any mortgage, deed of trust or other security interest creating a lien or encumbrance <br />upon the Property, having first exercised its option to construct, has not proceeded <br />diligently with construction, the Agency shall be afforded those rights against such <br />holder which it would otherwise have against Developer under this Agreement. <br />2.05 Right of Agency to Cure. <br />In the event of a default or breach by the Developer of a mortgage, deed of <br />trust or other security instrument prior to issuance of a Certificate of Completion for <br />all of the Improvements, and the holder has not exercised its option to complete the <br />Improvements, the Agency may terminate the Agreement by writing. <br />2.06 Holder to be Notified. <br />The Developer, for itself, its successors and assigns hereby warrants and agrees <br />that each term contained herein dealing with security financing and rights of holders <br />shall be either inserted into the relevant deed of trust or mortgage or acknowledged <br />by the holder prior to its coming into any security right or interest in the Property. <br />Agreement - Vanuatu <br />Page 22 of 30 <br />Draft December 4, 1997 <br />