7.5 SR 06-17-2024 - Laserfiche WebLink

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6. PROTECTION OF CITY' S RIGHTS IN THE PROPERTY. If Developer fails to perform the covenants and agreements contained in this Mortgage, or there is a legal proceeding that may materially affect City's rights in the Property (such as a proceeding in bankruptcy, condemnation or forfeiture), City, upon written notice to Developer, may do and pay for whatever is necessary to protect the value of the Property and City's rights in the Property. City's actions may include paying any sums secured by a lien which has priority over this Mortgage, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although City may take action under this Section 6, City is not required to do so. Any amounts disbursed by City under this Section 6 shall become additional debt of Developer secured by this Mortgage. Unless Developer and City agree to other terms of payment, these amounts shall bear interest from the date of disbursement at a rate equal to the interest rate on the Note and shall be payable, with interest, upon notice from City to Developer requesting payment. 7. INSPECTION. City or its agent may make reasonable entries upon and inspections of the Property upon reasonable prior notice that specifies reasonable cause for such entry and inspection to Developer subject to the rights of tenants pursuant to any leases. City shall use reasonable efforts to avoid disturbing business operations on the Property during such inspections. 8. CONDEMNATION. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to City subject to the following paragraph. In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Mortgage, whether or not then due, with any excess paid to Developer. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Mortgage immediately before the taking, unless Developer and City otherwise agree in writing, if any, the sums secured by this Mortgage shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to Developer. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is less than the amount of the sums secured immediately before the taking, unless Developer and City otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the sums secured by this Mortgage whether or not the sums are then due. 9. FORBEARANCE BY CITY NOT A WAIVER. Any forbearance by City in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 10. SUCCESSORS AND ASSIGNS BOUND. The covenants and agreements of this Mortgage shall bind and benefit the successors and assigns of City and Developer. 11. NOTICES. Any notice to Developer provided for in this Mortgage shall be given by delivering it personally or by mailing it by first class United States mail, postage prepaid, return receipt requested. The notice shall be directed to Developer at 19830 Polk Street, Elk River, MN 55330, Attn: Patrick Menth, or any other address Developer designates by notice to City. Any notice to City shall be given or mailed to 13065 Orono Parkway, Elk River, Minnesota 55330, Attn: City Administrator, or any other address City designates by notice to Developer. Any notice provided for in this Mortgage shall be deemed to have been given to Developer or City when given as provided in this paragraph. A-3 EL185\77\951254.v6 Page 346 of 372