Permitted Security Financing Clause Samples

Permitted Security Financing. Mortgages, deeds of trusts and any other form of security interest required for any reasonable method of financing are solely for the purpose of securing a loan of funds to be used for financing the development of the Project on the Property pursuant to this Agreement. The Developer shall not enter into such financing without the prior approval of the Authority and City, which approval will not be unreasonably withheld, after the Developer submits evidence demonstrating, to the satisfaction of the Authority and City, that reputable lender has, on commercially reasonable terms, committed to finance development of the Project in an amount sufficient to complete the Project or such portion thereof as the Authority and City deem appropriate. In any event, the Developer shall promptly notify the Authority and City of any mortgage, deed of trust or other security interest, encumbrance or lien that has been created or attached to the Property prior to expiration of the term of the Use Covenant, whether by voluntary act of the Developer or otherwise. The Authority and City shall cooperate with the Developer and the lender or lenders providing financing for development of the Project to reasonably facilitate such financing, provided the obligations of the Developer and the rights of the Authority and City hereunder are not materially affected.