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benefit of its creditors, admits in writing its inability to pay its debts as they become due, files a <br />petition under any chapter of the Federal Bankruptcy Code or any similar law, state or federal, <br />now or hereafter existing, becomes "insolvent" as that term is generally defined under the <br />Federal Bankruptcy Code, files an answer admitting insolvency or inability to pay its debts as <br />they become due in any involuntary bankruptcy case commenced against it, or fails to obtain a <br />dismissal of such case within sixty (60) days after its commencement or convert the case from <br />one chapter of the Federal Bankruptcy Code to another chapter, or is the subject of an order for <br />relief in such bankruptcy case, or is adjudged a bankrupt or insolvent, or has a custodian, trustee, <br />or receiver appointed for it, or has any court take jurisdiction of its property, or any part thereof, <br />in any proceeding for the purpose of reorganization, arrangement, dissolution, or liquidation, and <br />such custodian, trustee, or receiver is not discharged, or such jurisdiction is not relinquished, <br />vacated, or stayed within sixty (60) days of the appointment. <br /> <br />Section 3,5. Promissory Note. The Developer shall execute a promissory note in substantially <br />the form set forth at Exhibit C. <br /> <br />ARTICLE 4 <br /> <br />Default and Collateral <br /> <br />Section 4.1. Default. The Developer shall be in default under this Agreement upon the <br />happening of any one or more of the following events: <br /> <br /> (a) the Developer fails to pay when due any amount payable on the Loan and such <br />nonpayment is not remedied w/thin ten (10) business days after written notice thereof to the <br />Developer by the City; <br /> <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br /> I <br />I <br /> <br />! <br /> <br /> (b) the Developer is in breach of any material respect of any obligation or agreement <br />under this Agreement (other than nonpayment of any amount payable on the Loan) and remains <br />in breach in any material respect for thirty (30) business days after written notice thereof to the <br />Developer by the City; provided, however, that if such breach shall reasonably be incapable of <br />being cured within such thirty (30) business days after notice, and if the Developer commences <br />and diligently prosecutes the appropriate steps to cure such breach, no default shall exist so long <br />as the Developer is proceeding to cure such breach; <br /> <br /> (c) if any material covenant, warranty, or representation of the Developer shall prove <br />to be untrue in any material respect, provided such covenant, warranty or representation of the <br />Developer remains untrue in any material respect for thirty (30) business days after written <br />notice thereof to the Developer by the City; provided, however, that if such untruth shall <br />reasonably be incapable of being corrected within such thirty (30) business days after notice, and <br />if the Developer commences and diligently prosecutes the appropriate steps to correct such <br />untruth, no default shall exist so long as the Developer is so proceeding to correct such untruth; <br /> <br /> (d) the Developer, on or after the Initial Disbursement Date, fails to pay its debts as <br />they become due, makes an assignment for the benefit of its creditors, admits in writing its <br />inability to pay its debts as they become due, files a petition under any chapter of the Federal <br /> <br />4 <br /> ]58 <br /> <br /> I <br /> I <br />I <br />I <br />I <br />I <br />I <br />I <br /> <br /> <br />