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Agenda - City of Santa Monica

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12.1.3 Right <strong>of</strong> Secured Lender to Cure Default.<br />

(a) A Secured Lender may give notice to the <strong>City</strong>, specifying<br />

the name and address <strong>of</strong> such Secured Lender and attaching thereto a true and complete<br />

copy <strong>of</strong> the Mortgage held by such Secured Lender, specifying the portion <strong>of</strong> the<br />

Property that is encumbered by the Secured Lender’s lien (a “Request for Notice”). If<br />

the Request for Notice has been given, at the same time the <strong>City</strong> sends to Developer any<br />

Notice <strong>of</strong> Breach or Hearing Notice under this Agreement, then if such Notice <strong>of</strong> Breach<br />

or Hearing Notice affects the portion <strong>of</strong> the Property encumbered by the Secured<br />

Lender’s lien, the <strong>City</strong> shall send to such Secured Lender a copy <strong>of</strong> each such Notice <strong>of</strong><br />

Breach and each such Hearing Notice from the <strong>City</strong> to Developer. The copy <strong>of</strong> the<br />

Notice <strong>of</strong> Breach or the Hearing Notice sent to the Secured Lender pursuant to this<br />

Section 12.1.3(a) shall be addressed to such Secured Lender at its address last furnished<br />

to the <strong>City</strong>. The period within which a Secured Lender may cure a particular Event <strong>of</strong><br />

Monetary Default or Event <strong>of</strong> Non-Monetary Default shall not commence until the <strong>City</strong><br />

has sent to the Secured Lender such copy <strong>of</strong> the applicable Notice <strong>of</strong> Breach or Hearing<br />

Notice.<br />

(b) After a Secured Lender has received a copy <strong>of</strong> such Notice<br />

<strong>of</strong> Default or Hearing Notice, such Secured Lender shall thereafter have a period <strong>of</strong> time<br />

(in addition to any notice and/or cure period afforded to Developer under this Agreement)<br />

equal to: (a) ten (10) business days in the case <strong>of</strong> any Event <strong>of</strong> Monetary Default and (b)<br />

thirty (30) days in the case <strong>of</strong> any Event <strong>of</strong> Non-Monetary Default, during which period<br />

the Secured Lender may provide a remedy or cure <strong>of</strong> the applicable Event <strong>of</strong> Monetary<br />

Default or may provide a remedy or cure <strong>of</strong> the applicable Event <strong>of</strong> Non-Monetary<br />

Default; provided that if the cure <strong>of</strong> the Event <strong>of</strong> Non-Monetary Default cannot<br />

reasonably be completed within thirty days, Secured Lender may, within such 30-day<br />

period, commence to cure the same and thereafter diligently prosecute such cure to<br />

completion (a “Secured Lender’s Cure Period”). If Developer has caused an Event <strong>of</strong><br />

Monetary Default or an Event <strong>of</strong> Non-Monetary Default, then each Secured Lender shall<br />

have the right to remedy such Event <strong>of</strong> Monetary Default or an Event <strong>of</strong> Non-Monetary<br />

Default, as applicable, or to cause the same to be remedied prior to the conclusion <strong>of</strong> the<br />

Secured Lender’s Cure Period and otherwise as herein provided. The <strong>City</strong> shall accept<br />

performance by any Secured Lender <strong>of</strong> any covenant, condition, or agreement on<br />

Developer’s part to be performed hereunder with the same force and effect as though<br />

performed by Developer.<br />

(c) The period <strong>of</strong> time given to the Secured Lender to cure any<br />

Event <strong>of</strong> Monetary Default or an Event <strong>of</strong> Non-Monetary Default by Developer which<br />

reasonably requires that said Secured Lender be in possession <strong>of</strong> the Property to do so,<br />

shall be deemed extended to include the period <strong>of</strong> time reasonably required by said<br />

Secured Lender to obtain such possession (by foreclosure, the appointment <strong>of</strong> a receiver<br />

or otherwise) promptly and with due diligence; provided that during such period all other<br />

obligations <strong>of</strong> Developer under this Agreement, including, without limitation, payment <strong>of</strong><br />

all amounts due, are being duly and promptly performed.<br />

41<br />

F:\RECORDSANDELECTIONSHARE\MEETINGS\WWW\2013\20130514\WORD DOCUMENTS\2013051407-A-2.DOC

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