Recapture Obligation. Upon the occurrence of an Default Event in the first year of the Term, Resident agrees that Resident will be indebted to and shall pay the Land Bank the sum of and 00/100 DOLLARS ($_,000.00) (the "Recapture Obligation") in cash or other good funds in form acceptable to the Land Bank within twenty (20) days after written notice that such Recapture Obligation is due and owing is given to Resident. Upon the occurrence of a Default Event after the first year of the Term, the Recapture Obligation shall decrease by an amount equal to 20% of the original Recapture Obligation for each year after the first year of the Term in which the Event of Default occurs and shall otherwise be payable in the same manner as the original Recapture Obligation. Resident and the Land Bank acknowledge that the damages to the Land Bank upon a Default Event by Resident would be difficult or impossible to determine, that the amount of the Recapture Obligation represents the Parties’ best and most accurate estimate of the damages that would be suffered by the Land Bank with a Default Event by Resident, that such estimate is reasonable under the circumstances existing as of the date of this Agreement and under the circumstances that the Land Bank and Resident reasonably anticipate would exist at the time of such Default Event. Accordingly, in lieu of actual damages for a Default Event, Resident agrees that the Recapture Obligation may be assessed and recovered by the Land Bank as against Resident without the Land Bank being required to present any evidence of the amount or character of actual damages sustained by reason thereof.
Recapture Obligation. Guarantors hereby acknowledge that if:
