7.5 SR 06-17-2024 - Laserfiche WebLink

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ARTICLE VI DEVELOPER AND COMPANY EVENTS OF DEFAULT Section 6.1 Events of Default Defined. The following shall be "Events of Default" under this Agreement and the term "Event of Default" shall mean whenever it is used in this Agreement any one or more of the following events: (a) Failure by the Developer and/or the Company to substantially observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement, the Purchase Price Note, or the Security Agreements or if any certification, representation, or warranty by the Developer or the Company to the City is substantiated by evidence to be untrue or misrepresented. (b) Failure by the Developer and/or the Company to timely pay any ad valorem real property taxes or special assessments assessed with respect to the Development Property. (c) Failure by the Developer to cause the construction of the Project to be completed pursuant to the terms, conditions and limitations of this Agreement. (d) The holder of any mortgage on the Development Property or any improvements thereon, or any portion thereof, commences foreclosure proceedings as a result of any default under the applicable mortgage documents. (e) Failure by the Developer to make a payment within 10 days after such payment is due under the Purchase Price Note or pursuant to Section 3.7. (f) Failure by the Guarantors to make a payment due under the Guaranties. (g) If the Developer, the Company or any of the Guarantors shall; (1) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act of 1978, as amended or under any similar federal or state law; or (11) make an assignment for the benefit of its creditors; or (111) admit in writing its inability to pay its debts generally as they become due; or (iv) be adjudicated a bankrupt or insolvent; or if a petition or answer proposing the adjudication of the Developer, the Company or any of the Guarantors, as a bankrupt or its reorganization under any present or future federal bankruptcy act or any similar federal or state law shall be filed in any court and such petition or answer shall not be discharged or denied within 90 days after the filing thereof, or a receiver, trustee or liquidator of the Developer or the Company, or of the Project, or part thereof, shall be appointed in any proceeding brought against the Developer or the Company, and shall not be discharged within 90 days after such appointment, or if the Developer or the Company, as applicable, shall consent to or acquiesce in such appointment. Section 6.2 Remedies on Default. Whenever any Event of Default referred to in Section 6.1 occurs and is continuing, the City may take any one or more of the following actions after the giving of 30 days' written notice to the Developer and the Company, but only if the Event of Default has not been cured within said 30 days. 20 EL 185\77\951254.v6 Page 316 of 372