|
paragraphs shall be applied as provided in Section 7.05 of the Indenture.
<br /> Whenever any Default shall occur, the Trustee (or the City directly and without the
<br /> necessity of consent of or joinder by the Trustee, with respect to the City's rights under
<br /> Sections 4.03(b), 6.01, 6.10 and 8.10 of the Loan Agreement) may take whatever action at
<br /> law or in equity which may appear necessary or desirable to collect the payments then due
<br /> and thereafter to become due or to enforce performance and observance of any obligation,
<br /> agreement or covenant of the Borrower under the Loan Agreement, the Mortgage or the
<br /> Subordinate Mortgage.
<br /> Nonrecourse Liability of Borrower
<br /> Notwithstanding any provision or obligation to the contrary set forth in any
<br /> other Section of the Loan Agreement(except Sections 4.03(b),6.01,6.10 and 8.10 of the
<br /> Loan Agreement to which the provisions thereof summarized in this paragraph do not
<br /> apply): (j) the liability of the Borrower, and the Sole Member, and any governors
<br /> manager,trustee,director,officer,employee,agent or shareholder of the Borrower or
<br /> the Sole Member (collectively, "Borrower Parties") under the Loan Agreement shall
<br /> be limited to the Mortgaged Property or to such other security as may from time to
<br /> time be given or have been given for payment of the obligations under the Loan
<br /> Documents or the Indenture(collectively,the "Collateral'),and any judgment rendered
<br /> against the Borrower Parties under any of the Loan Documents shall be limited to the
<br /> Collateral, and (ii) no deficiency or other personal judgment nor any order or decree of
<br /> specific performance shall be sought or rendered against the Borrower Parties, their
<br /> successors, transferees or assigns, in any action or proceeding arising out of the Loan
<br /> Documents, or any judgment, order or decree rendered pursuant to any such action or
<br /> proceeding;provided,however,that nothing in the Loan Documents shall limit the Trustee's
<br /> ability to exercise any right or remedy that it may have with respect to any property pledged
<br /> or granted to the City or the Trustee, or both of them, or to exercise any right against the
<br /> Borrower Parties or any other person or entity on account of any damage caused by fraud or
<br /> intentional misrepresentation by the Borrower or any intentional damage of the property
<br /> subject to the Mortgage or the Subordinate Mortgage. Furthermore, the Borrower shall be
<br /> fully liable for the misapplication of(i)proceeds paid prior to any foreclosure under any and
<br /> all insurance policies, under which the Trustee is named as insured, by reason of damage,
<br /> loss or destruction to any portion of the Mortgaged Property, to the full extent of such
<br /> misapplied proceeds and awards, (ii)proceeds or awards resulting from the condemnation,
<br /> or other taking in lieu of condemnation,prior to any foreclosure of the Mortgaged Property,
<br /> to the full extent of such misapplied proceeds and awards, (iii) rents, issues, profits and
<br /> revenues received or applicable to a period subsequent to the occurrence of an Event of
<br /> Default under the Loan Documents, (iv) proceeds from the sale of all or any part of the
<br /> Mortgaged Property and any other proceeds that, under the terms of the Loan Agreement,
<br /> should have been paid to the City or the Trustee, and (v) tenant security deposits.
<br /> Furthermore, the Borrower shall be fully liable in damages for the breach of(i) any
<br /> covenant to indemnify the City,the Trustee,or any other Holder,wherever contained in the
<br /> Loan Agreement,and(ii)the Borrower's covenants contained in the Loan Agreement which
<br />
|