Security for Initial Consideration Clause Samples

Security for Initial Consideration. The Authority shall sign and deliver 12 to the Navy through escrow at the Initial Closing a Promissory Note in the principal amount of 13 the Initial Consideration. The Promissory Note shall bear interest and be payable in 14 installments as more particularly described in Section 4.2.1 above. The Promissory Note shall 15 be secured by (i) an Assignment of Rents encumbering the rents, issues and profits payable 16 under all interim subleases for the Navy Real Property including, but not limited to, that certain 17 Sublease, Development, Marketing and Property Management Agreement between the 18 Authority and the ▇▇▇▇ ▇▇▇▇▇▇▇ Company dated March 17, 1999, as amended from time to 19 time, and any successor interim subleases or leases relating to the Navy Real Property whether 20 executed prior to or after a conveyance hereunder, and (ii) to the extent the rents, issues and 21 profits assigned under the Assignment of Rents are not sufficient to cover the unpaid principal 22 and interest due under the Promissory Note, a Subordinate Pledge of Net Available Tax 23 Increment Revenues generated from the Navy Real Property prior to or after a conveyance 24 hereunder. The Subordinate Pledge shall be subordinate to the pledge of Net Available Tax 25 Increment Revenues to the holders of any bonded indebtedness and to the Developer under the 26 DDA; provided, however, that the DDA shall provide that all such Net Available Tax 27 Increment Revenues to be paid directly to Developer in reimbursement for the expenditure of 28 Qualified Project Costs (as defined in the DDA) shall be withheld from Developer by the 29 Authority and held for the account of the Navy upon the occurrence of and for the duration of 30 any default of a payment of Initial Consideration hereunder. “Net Available Tax Increment