Common use of Right of Agency to Cure Mortgage or Deed of Trust Default Clause in Contracts

Right of Agency to Cure Mortgage or Deed of Trust Default. In the event of a material, uncured mortgage or deed of trust default or breach by the Developer prior to the issuance of the Release of Construction Covenants (unless the Developer is contesting such default in good faith), Developer shall immediately deliver to Agency a copy of such mortgage holder's notice of default. If the holder of any mortgage or deed of trust has not exercised its option to construct within the time periods set forth in Section 408.4, Agency shall have the right, upon ten (10) days Notice to Developer, but no obligation to cure the default. In such event, Agency shall be entitled to reimbursement from the Developer of all proper direct and actual out-of-pocket costs and expenses incurred by Agency in curing such default. Agency shall also be entitled to a lien upon the Agency Parcels to the extent of such costs and disbursements. Any such lien shall be junior and subordinate to the mortgages, deeds of trust or any other security interests granted in accordance with this Section 408.

Right of Agency to Cure Mortgage or Deed of Trust Default. In the event of a material, uncured mortgage or deed of trust default or breach by the Developer prior to the issuance of the Release of Construction Covenants (unless the Developer is contesting such default in good faith), Developer shall immediately deliver to Agency a copy of such mortgage holder's ’s notice of default. If the holder of any mortgage or deed of trust has not exercised its option to construct within the time periods set forth in Section 408.4, Agency shall have the right, upon ten (10) days Notice to Developer, but no obligation to cure the default. In such event, Agency shall be entitled to reimbursement from the Developer of all proper direct and actual out-of-pocket costs and expenses incurred by Agency in curing such default. Agency shall also be entitled to a lien upon the Agency Parcels Site to the extent of such costs and disbursements. Any such lien shall be junior and subordinate to the mortgages, deeds of trust or any other security interests granted in accordance with this Section 408.

Right of Agency to Cure Mortgage or Deed of Trust Default. In the event of a material, uncured mortgage or deed of trust default or breach by the Developer prior to the issuance of the Release of Construction Covenants (unless the Developer is contesting such default in good faith), Developer shall immediately deliver to Agency a copy of such mortgage holder's notice of default. If the holder of any mortgage or deed of trust has not exercised its option to construct within the time periods set forth in Section 408.4, Agency shall have the right, upon ten (10) days Notice to Developer, but no obligation to cure the default. In such event, Agency shall be entitled to reimbursement from the Developer of all proper direct and actual out-of-pocket costs and expenses incurred by Agency in curing such default. Agency shall also be entitled to a lien upon the Agency Parcels Site to the extent of such costs and disbursements. Any such lien shall be junior and subordinate to the mortgages, deeds of trust or any other security interests granted in accordance with this Section 408.