43-95 HOME Program - Laserfiche WebLink

Home Browse Search

( ( SECTION 9. EVENTS OF DEFAULT/REMEDIES A. Events of Default. The occurrence of any of the following events is defined as and declared to be and to constitute an Event of Default hereunder: (i) failure by the Eligible Borrower to observe or perform any other covenant, agreement or obligation on its part to be observed or performed contained in this Agreement, which failure shall have continued for a period of sixty (60) days after written notice, by registered or certified mail, to the Eligible Borrower specifying the failure and requiring that it be remedied, which notice shall be given by the Consortium; or (ii) any representation or warranty made by the Eligible Borrower herein or in any other instrument furnished in connection with this Agreement shall at any time prove to have been false or misleading in any material respect when made or given; or (iii) a default by the Eligible Borrower on any indebtedness secured by a mortgage on the Eligible Property; provided that the mortgagee of such mortgage has commenced foreclosure proceedings on such mortgage. Anything herein to the contrary notwithstanding, no default under item (i) of the above paragraph shall constitute an Event of Default until actual notice of such default by registered or certified mail shall be given to the Eligible Borrower by the City on behalf of the Consortium, and the Eligible Borrower shall have had sixty (60) days after receipt of such notice to correct said default or cause said default to be corrected and shall not have corrected said default or caused said default to be corrected within the applicable period; provided, however, that if said default be such that it cannot be corrected within the applicable period, it shall not constitute an Event of Default if corrective action is instituted by the Eligible Borrower within the applicable period and diligently pursued until the default is corrected. B. Remedies. Repavment of Consortium HOME Funds. Upon the occurrence of any Event of Default described in this Section 9, the City on behalf of the Consortium may, by a notice in writing delivered to the Eligible Borrower, declare that the Consortium HOME Loan, in an amount equal to the amount due under the "Recapture Provision" of Section 6.D.iii.a of this Agreement principal payments, and any capital improvement investment, is due and payable (the "Balance Due") immediately following the date that the City so notified the Eligible Borrower in writing. Upon that declaration, the Balance Due shall become and be due and payable in accordance with the provisions of this Section 9.B. The provisions of the immediately preceding paragraph are subject, however, to the condition that if, at any time after declaration of payment described in the immediately preceding paragraph and prior to the entry of a judgment in a court for enforcement hereunder (after an opportunity for hearing by the Eligible Borrower), all existing Events of Default shall have been cured, then and in every case, the City on behalf of the Consortium shall waive the Event of Default and its consequences and shall rescind and annul that declaration. No waiver or rescission and annulment shall extend to or affect any subsequent Event of Default or shall impair any rights consequent thereon. 11