Common use of Disaffirmation Clause in Contracts

Disaffirmation. If: (i) this Agreement is terminated as to any portion of the Property by reason of any default, or (ii) this Agreement is disaffirmed or otherwise cancelled by a receiver, liquidator, or trustee for the Developer or its property as a result of a bankruptcy or other insolvency proceeding, the City, if requested by any Mortgagee, shall negotiate in good faith with such Mortgagee for a new development agreement for the Project as to such portion of the Property with the most senior Mortgagee requesting such new agreement and such new development agreement shall be prior to any security financing interest or lien, charge, or encumbrance on the Property in favor of any such security financing interest and each applicable party shall execute such additional consents and/or subordination agreements as may reasonably requested by the City or the new Developer to evidence the priority of such new development agreement to all security financing interests, whether recorded prior or subsequent to execution of such new development agreement. This Agreement does not require any Mortgagee or the City to enter into a new development agreement pursuant to this Section 6.25.7.‌

Disaffirmation. If: If (i) this Agreement is terminated as to any portion of the Property by reason of any default, default or (ii) this Agreement is disaffirmed or otherwise cancelled by a receiver, liquidator, or trustee for the Developer or its property as a result of a bankruptcy or other insolvency proceeding, the City, if requested by any Mortgagee, shall negotiate in good faith with such Mortgagee for a new development agreement for the Project as to such portion of the Property with the most senior Mortgagee requesting such new agreement and such new development agreement shall be prior to any security financing interest or lien, charge, or encumbrance on the Property in favor of any such security financing interest and each applicable party shall execute such additional consents and/or subordination agreements as may reasonably requested by the City or the new Developer to evidence the priority of such new development agreement to all security financing interests, whether recorded prior or subsequent to execution of such new development agreement. This Agreement does not require any Mortgagee or the City to enter into a new development agreement pursuant to this Section 6.25.7.‌