Agenda - Council - 12/28/2006 - Laserfiche WebLink

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19.2 Collateral Assignments Developer may upon notice to but without the consent of Citv collaterally assign Developer's rights under this Agreement to anv entity to whom Developer grants a mortgage on all of Developer's right title and interest in the Development Property as additional security for Developer's performance of the obligation the mortgage secures If the mortgagee acauires title to the Development Property as a result of the foreclosure of such mortgage and the enforcement of the collateral assignment or as a result of deed in lieu of such foreclosure and enforcemen -the rights and obligations of the mortgagee in its capacity as a successor in title to the Developer are as set forth in Section below 19.3 Rights and Obligations of Foreclosing Mortgagee An individual or entity who acauires title to alt or a portion of the Development Property through the. foreclosure of a mortgage or deed in lieu of foreclosure on such portion of the Development Property remains suhiect to each of thn rPCtri~tinne eat fnrth .n tb~a Agreement and remains subiect to all of the obligations of the Developer un er the terms of this Agreement but the purchaser at a foreclosure sale or grantee under a deed in lieu of foreclosure shall have no personal liability for a breach of such obligations- under this Agreement so long as• ~a The party acauiring title through foreclosure nr r~eerl ~n lie„ of foreclosure observes all of the restrictions set forth in this A reement• and ~ The party who acauires title through foreclosure or deed in Iieu of foreclosure does not undertake or Hermit any other party to undertake anv development acttvities on the portion of the Development Property it owns• The purpose of this Section is to permit a foreclosing lender (or mortgagee obtaining a deed Yn hew of foreclosure) to hold title to the portion of the Development Property it ac wires through foreclosure or deed in lieu of foreclosure without liability until it can sell the property it holds t a third party who will assume the obligations of Developer under the terms of this Agreement and proceed with the development of the Development Property pursuant to the terms of this A=greement If rather than passively holding title to the orhon of the Development Property it acauires through foreclosure or deed in lieu of foreclosure the foreclosing lender (or mortgagee obtaining a deed in lieu f foreclosure) or other purchaser at a foreclosure sale desires to perform Developer's obligations ender this Agreement and proceed with development of one or more of the lots or outlots the Final Plat creates the purchaser at the foreclosure sale (or mortgagee obtaining a deed in lieu of foreclosure) must assume and perform each of the obligations of Developer under this A reement. This Section does not restrict Ci from ursuin its ri hts a ainst an letter of credit or other security Citv holds exercising any remedies available to Ci at law or under this Agreement or suspending City's performance of City's obligations under this Agreement as a result of any default arising either before or after the foreclosing lender or other purchaser at a foreclosure sale or rantee under a deed in lieu obtains title 19.4 Estoppel Certificates. Within twenty days after Citv recut of a notice from Developer requesting and estoppel certificate Citv will cause an appropriate 1974417vdoc V2 to V1 12/18/06 22 -147-