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<br />ARTICLE VII <br />MORTGAGE FINANCING <br /> <br />Section 7.1. Mortgage Financing. <br /> <br />(a) On or before the closing date, the Developer shall submit, to the City, evidence of <br />one or more commitments for mortgage financing which, together with committed equity for such <br />construction, is sufficient for the construction of the Minimum Improvements. Such commitments <br />may be submitted as short term financing, long term mortgage financing, a bridge loan with a long <br />term take-out financing commitment, or any combination of the acceptable financing instrument. <br />Such commitment or commitments for short term or long term mortgage financing shall be subject <br />only to such conditions as are normal and customary in the mortgage banking industry. <br /> <br />(b) If the City finds that the mortgage financing is sufficiently committed and adequate <br />in amount to provide for the construction of the Minimum Improvements, then the City shall notify <br />the Developer, in writing, of its approval. Such approval shall not be unreasonably withheld and <br />either approval or rejection shall be given within 10 days from the date when the City is provided <br />the evidence of mortgage financing. A failure by the City to respond to such evidence of mortgage <br />financing shall be deemed to constitute an approval hereunder. If the City rejects the evidence of <br />mortgage financing as inadequate, it shall do so, in writing, specifying the basis for the rejection. <br />In any event, the Developer shall submit adequate evidence of mortgage fmancing within 30 days <br />after such rejection. <br /> <br />Section 7.2. City's Option to Cure Default on Mortgage. In the event that there occurs a <br />default under any Mortgage authorized pursuant to Article VII of this Agreement, the Developers <br />shall cause the City to receive copies of any notice of default received by any developers from the <br />holder of such Mortgage. Thereafter, the City shall have the right, but not the obligation, to cure <br />any such default on behalf of the Developer within such cure periods as are available to the <br />Developer under the Mortgage documents. <br /> <br />Page 16 <br />