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ARTICLE VII EVENTS OF DEFAULT AND REMEDIES OF BANK Section 7.01. Events of Default and Acceleration of Maturities. If one or more of the following events ("events of default") shall happen, that is to say (a) if default shall be made in the due and punctual payment of the principal or any installment of interest on the Note when and as the same shall become due and payable, whether at maturity as therein expressed, by declaration or otherwise; (b) if default shall be made by the City in the observance of any of the covenants, agreements or conditions on its part in this Resolution or in the Note contained, and such default shall have continued for a period of sixty {60) days after written notice thereof, specifying such default and requiring the same to be remedied, shall have been given to the City by the Bank; or (c) if an event of default (as defined in Section 6.01 of the Agreement) has occurred under the Agreement and is continuing; then, and in each and every such case during the continuance of such event of default, the Bank may, by notice in writing to the City declare the principal of the Note then Outstanding, and the interest accrued thereon, to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, anything in this Resolution or in the Note contained to the contrary notwithstanding. This provision, however, is subject to the condition that if, at any time after the principal of the Note shall have been so declared due and payable, and before any judgment or decree for the payment of the monies due and payable shall have been obtained or entered, there shall have been deposited with the Bank a sum sufficient to pay all principal on the Note matured prior to such declaration and all matured installments of interest (if any) upon the Note, with interest on such overdue installments of principal at the rates borne by the Note, and the reasonable expenses of the Bank, and any and all other defaults known to the Bank (other than in the payment of principal of and interest on the Note due and payable solely by reason of such declaration) shall have been made good or cured to the satisfaction of the Bank or, provision deemed by the Bank,to be adequate shall have been made therefor, then, and in every such case, the Bank may, rescind and annul such declaration and its consequences. However, no such rescission and annulment shall extend to or shall affect any subsequent default, or shall impair or exhaust any right or power consequent thereon. Section 7.02. Application of Funds Upon Acceleration. All money in the funds and accounts provided for in Section 3.03 and 4.02 upon the date of the 16