OPA: Grimshaw House - City of Anaheim

(b) one or more of Agency’s Condition Precedent to Closing is not satisfied
on or before the Outside Closing Date;
then this Agreement may, at Agency’s option, be terminated by Notice to Developer.
From the date of the Notice of termination of this Agreement by Agency to Developer
and thereafter this Agreement shall be deemed terminated and there shall be no further
rights or obligations between the Parties, except as set forth in Section 301.2. Upon such
termination by Agency, all monies or documents deposited by any Party into Escrow shall
be returned to the Party making such deposit. In the event that this Agreement is
terminated due to Default of Developer, Developer shall pay all escrow cancellation
costs. If this Agreement is terminated for any other reason, the Parties shall each pay onehalf
of the escrow cancellation costs.
705. Reentry and Revesting of Title to Site After Closing and Prior to Issuance of
Release of Construction Covenants. Agency has the right, at its election, to reenter and
take possession of the Site, with all Improvements thereon, and terminate and revest in
Agency the estate conveyed to Developer if after the Closing and before the issuance of
the Release of Construction Covenants, Developer shall:
(a) fail to start the construction of the Developer Improvements on or before
the Outside Construction Commencement Date; or
(b) abandon or substantially suspend construction of the Developer
Improvements for a period of one hundred twenty (120) days after Notice
thereof from the Agency; or
(c) contrary to the provisions of Section 800, Transfer or suffer any
involuntary Transfer in violation of this Agreement, and such Transfer has
not been approved by the Agency or rescinded within sixty (60) days of
notice thereof from Agency to Developer.
Such right to reenter, terminate and revest shall be subject to and be limited by
and shall not defeat, render invalid or limit any mortgage or deed of trust permitted by
this Agreement or any rights or interests provided in this Agreement for the protection of
the holders of such mortgages or deeds of trust. In addition, the Agency shall have no
right to retake possession of Housing Units on portions of the Site following the Initial
Sale of such units.
The Memorandum of Agreement shall contain appropriate reference and provision
to give effect to Agency’s right as set forth in this Section, under specified circumstances
before recordation of the Release of Construction Covenants, to reenter and take
possession of the Site, with all improvements thereon, and to terminate and revest in
Agency the estate conveyed to Developer. Upon the revesting in Agency of title to the
Site as provided in this Section, Agency shall, pursuant to its responsibilities under state
law, use its reasonable efforts to resell the Site as soon and in such manner as the Agency
shall find feasible and consistent with the objectives of such law and of the
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