Resolution 5871 - Laserfiche WebLink

protect the improvements or construction already made) without first having expressly assumed OM's obligations to the City with respect to the portion of the City Property that is subject to the interest of the holder by written agreement satisfactory to the City. The holder in that event must agree to complete, in the manner provided in this Agreement, the improvements related to the portion of the Development to which the lien or title of such holder relates and submit evidence satisfactory to the City that it has the qualifications and financial responsibility necessary to perform such obligations. Any such holder properly completing such improvements shall be entitled, upon written request made to the City, to a Certificate of Completion from the City. 19.5 Right of City to Cure Mortgage, Deed of Trust, or Other Security Interest Default In the event of a default or breach by OM of a mortgage, deed of trust, or other security interest or of a leaseback or of obligations to the grantee under any other conveyance for financing with respect to any portion of the City Property prior to the issuance of a Certificate of Completion and where the holder has not exercised the holder's option to complete the development of the Minimum Development Elements for such property, the City may cure the default prior to completion of any foreclosure,termination of lease, or completion of proceedings by which such other security interest is retained or granted back provided that OM is given at least thirty (30) days' prior written notice of the City's intention to cure such default and, if foreclosure proceedings are initiated, the City's cure right shall not extend beyond any period of time when a borrower would be prohibited from curing a default as a matter of applicable law. The City shall also be entitled to a lien upon the City Property to the extent of such costs and disbursements. Any such lien shall be subordinate to mortgages, deeds of trust, or other security interests or the interests of lessors under any leasebacks or the interests of grantees under any other conveyances for financing executed for the sole purpose of obtaining funds to purchase and develop the Site as authorized herein. 19.6 Right of City to Satisfy Other Liens on the Site After Closing Subject to the rights granted to OM pursuant to Section 16.9 above, after Closing and prior to the issuance of a Certificate of Completion for the Minimum Development Elements for a particular portion of the Development, and after OM has had a reasonable time to challenge, cure, or satisfy any liens or encumbrances on such portion of the City Property(not to exceed six (6)months),the City shall have the right to satisfy any such liens or encumbrances. 19.7 City's Representations,Warranties and Covenants The City represents, warrants and covenants to OM: 19.7.1 Power and Authority The City is a municipal corporation of the State of Washington. The City has taken all necessary legislative actions and met all necessary statutory and other requirements to enter into this Agreement and, subject to the City Property being declared surplus by the City, to consummate the transaction provided for herein. The person executing this Agreement on behalf of City has been duly authorized to do so. -51- 06107-0063'LEGA L13023969.1