5.0. EDSR 03-09-1998 - Laserfiche WebLink

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ARTICLE VII Mortgage Financing Section 7.1. Mortgage Financing. Before the Redeveloper commences construction of the Minimum Improvements, the Redeveloper shall submit to the Authority evidence of a commitment for financing sufficient for construction of the Minimum Improvements. If the Authority finds that the financing is sufficiently committed, adequate in an amount to provide for the construction of the Minimum Improvements, and subject only to such conditions as the Authority approves then the Authority shall notify the Redeveloper in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within ten (10) days from the date when the Authority is provided the evidence of financing, or the financing shall be deemed approved. If the Authority rejects the evidence of financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any event the Redeveloper shall submit adequate evidence of financing within thirty (30) days after such rejection. Section 7.2. Limitation Upon Encumbrance of Property. Prior to the completion of the Minimum Improvements, as certified by the Authority, neither the Redeveloper nor any successor in interest to the Development Property, or any part thereof, shall engage in any financing or any other transaction creating any mortgage or other encumbrance or lien upon the Development Property, whether by express agreement or operation of law, or suffer any encumbrances or lien to be made on or attach to the Development Property, except: (a) for the purposes of obtaining funds only to the extent necessary for constructing the Minimum Improvements (including, but not limited to, land and building acquisition, including the purchase price paid, labor and materials, professional fees, real estate taxes, construction interest, organizational and other indirect costs of development, costs of constructing the Minimum Improvements, and an allowance for contingencies); and (b) only upon the prior written approval of the Authority, which approval shall not be unreasonably withheld or delayed. For the purposes of such mortgage financing as may be made pursuant to the Agreement, the Development Property may, at the option of the Redeveloper (or successor in interest), be divided into several parts or parcels, provided that such subdivision, in the reasonable opinion of the Authority, is not inconsistent with the purposes of this Agreement and is approved in writing by the Authority. • 16