Common use of Payments by the City in the Event of Dispute Clause in Contracts

Payments by the City in the Event of Dispute. Where disputes have arisen which, in the good faith opinion of the City, may endanger timely completion of the Improvements or fulfillment of any condition precedent or covenant herein, the City may agree and enter into an agreement to disburse and may disburse Loan funds for the account of the Borrower without prejudice the Borrower's rights, if any, to recover said funds from the party to whom paid. Such agreement or agreements may take the form which the City, in its discretion, deems proper, including, but not limiting the generality of the foregoing, agreements to indemnify (on behalf of the Borrower and/or for the City's own account) any title insurer against possible assertion of lien claims, agreements to pay disputed amounts to contractors in the event the Borrower is unable or unwilling to pay the same, and the like. All sums paid or agreed to be paid pursuant to such undertaking shall be for the account of the Borrower, and the Borrower agrees to reimburse the City for any such payments made upon demand therefore, with interest at the default rate set forth in the Note from the date of payment until date of reimbursement. Such disbursements are secured by the Deed of Trust and by all other Loan Documents which are applicable.

Payments by the City in the Event of Dispute. Where disputes have arisen which, in the good faith opinion of the City, may endanger timely completion of the Improvements or fulfillment of any condition precedent or covenant herein, the City may agree and enter into an agreement to disburse and may disburse Loan funds for the account of the Borrower without prejudice the Borrower's rights, if any, to recover said funds from the party to whom paid. Such agreement or agreements may take the form which the City, in its discretion, deems proper, including, but not limiting the generality of the foregoing, agreements to indemnify (on behalf of the Borrower and/or for the City's own account) any title insurer against possible assertion of lien claims, agreements to pay disputed amounts to contractors in the event the Borrower is unable or unwilling to pay the same, and the like. All sums paid or agreed to be paid pursuant to such undertaking shall be for the account of the Borrower, and the Borrower agrees to reimburse the City for any such payments made upon demand thereforetherefor, with interest at the default rate set forth in the Note from the date of payment until date of reimbursement. Such disbursements are secured by the Deed of Trust and by all other Loan Documents which are applicable.