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Reso 2020-039
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Reso 2020-039
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5/20/2020 10:26:25 AM
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Resolution
Document Date (6)
4/20/2020
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42 <br /> <br />7.3. Covenants Binding on Successors and Assigns. <br />All of the provisions, agreements, rights, powers, standards, terms, covenants and <br />obligations contained in this Agreement shall be binding upon the Parties and their respective <br />successors (by merger, reorganization, consolidation, or otherwise) and assigns, devisees, <br />administrators, representatives, lessees, and all of the persons or entities acquiring the Property <br />or any portion thereof, or any interest therein, whether by operation of law or in any manner <br />whatsoever, and shall inure to the benefit of the Parties and their respective successors (by <br />merger, consolidation or otherwise) and assigns. <br />ARTICLE 8. <br />MORTGAGEE PROTECTION; CERTAIN RIGHTS OF CURE <br />8.1. Mortgagee Protection. <br />This Agreement shall not prevent or limit Developer in any manner, at Developer’s sole <br />discretion, from encumbering the Property or any portion thereof or any improvement thereon by <br />any mortgage, deed of trust or other security device securing financing with respect to the <br />Property (“Mortgage”). No breach hereof shall defeat, render invalid, diminish or impair the <br />lien of any Mortgage made in good faith and for value, but all of the terms and conditions <br />contained in this Agreement shall be binding upon and effective against and inure to the benefit <br />of any person or entity, including any deed of trust beneficiary or mortgagee (“Mortgagee”) who <br />acquires title to the Property, or any portion thereof, by foreclosure, trustee’s sale, deed in lieu of <br />foreclosure, or otherwise. <br />8.2. Mortgagee Not Obligated. <br />Notwithstanding the provisions of Section 8.1 above, no Mortgagee shall have any <br />obligation or duty under this Agreement to perform Developer’s obligations or other affirmative <br />covenants of Developer hereunder; provided, however, that a Mortgagee shall not be entitled to <br />devote the Property to any uses or to construct any improvements thereon other than those uses <br />or improvements provided for or authorized by this Agreement. <br />8.3. Notice of Default to Mortgagee; Right of Mortgagee to Cure. <br />If City receives a notice from a Mortgagee requesting a copy of any Notice of Default <br />given to Developer hereunder and specifying the address for service thereof, then City shall <br />deliver to such Mortgagee, concurrently with service thereon to Developer, any notice given to <br />Developer with respect to any claim by City that Developer has committed a default, and if City <br />makes a determination of noncompliance hereunder, City shall likewise serve notice of such <br />noncompliance on such Mortgagee concurrently with service thereof on Developer. Each <br />Mortgagee shall have the right (but not the obligation) during the same period available to <br />Developer to cure or remedy, or to commence to cure or remedy, the Event of Default claimed or <br />the areas of noncompliance set forth in City’s notice.
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