CHFA LOAN CLOSING - Laserfiche WebLink

the recipient of an unapproved Distribution shall be obligated to pay interest thereon to the Development at the rate of the Note for the period that the Distribution is retained by the recipient. 14. Actions. The Borrower and the City, as applicable, agree to notify the Agency promptly in writing of any action or proceeding by or against the Development or by or against the Borrower or the City, as applicable, in respect of the Development. No action or proceeding seeking the recovery of a sum in excess of ten thousand dollars ($10,000) or for specific performance or other equitable relief shall be instituted by the Borrower or the City, as applicable, in respect to the Development, nor shall any action or proceeding seeking the recovery from the Development, or from the Borrower or the City, as applicable, in respect of the Development, of a sum in excess of ten thousand dollars ($10,000) or for specific performance or other equitable relief against the Development, or against the Borrower or the City, as applicable, in respect of the Development, be settled or compromised by the Borrower or the City, applicable, without the prior approval of the Agency. Any such approval may be subject to such terms and conditions as the Agency, in its sole discretion, may prescribe. 15. Assignment of Rents for Security. As security for the performance of the Borrower and the City, as applicable, of all its obligations under this Agreement, the Borrower and the City, hereby assign and pledge to the Agency all of the Borrower's and the City's rights, title and interest in and to the rents, profits, income and charges of whatsoever kind or nature which it may receive or be entitled to receive from the operation of the Development, subject however, to any assignment of rents or like provision contained in the Deed of Trust or in any of the Loan Documents; provided, however, that unless and until a default under this Agreement is declared by the Agency or a default or event of default shall have occurred under any of the other Loan Documents, the Borrower or the City, as applicable, shall be permitted to collect and retain such rents, profits, income and charges, subject to the provisions of this Agreement. 16. Violation of Agreement by the Borrower or the City. In the event of the violation of any of the provisions of this Agreement by the Borrower or the City, as applicable, the Agency may give written notice thereof to the Borrower by registered or certified mail addressed to the Borrower or the City, as applicable, at the address stated in this Agreement, or to such other address as may have been designated by the Borrower or the City, and if such violation is not corrected to the satisfaction of the Agency within thirty (30) days after the date such notice is mailed (or within such further time as the Agency in its sole discretion may permit), the Agency may without further prior notice declare in writing a default under this Agreement effective CHFA 53SLP.RIDGE.VIEW 12/14/89 Q02189 -14-