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ARTICLE XII DEFAULTS AND REMEDIES 1201. Events of Default. declared an "Event of Default": Each of the following events is hereby (1) if a payment of a Principal Installment on, or the Redemption Price of, any Bond is not made when and as the same shall become due, whether at maturity or upon call for redemption, or otherwise; or (2) if a payment of interest on any Bond is not made when and as the same shall become due; or (3) if the Agency shall fail or refuse to comply with the provisions of the Act, or shall default in the performance or observance of any other of the covenants, agreements, or conditions on its part in this Resolution, any Supplemental Resolution, or in the Bonds contained, and such default shall continue for a period of ninety (90) days after written notice thereof by the Trustee; or (4) if the Agency shall file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws or any other applicable law of the United States of America, or if a court of competent jurisdiction shall approve a petition, filed with or without the consent of the Agency, seek ing reorganization under the federal bankruptcy laws or any other applicable law of the United States of America, or if, under the provis ions of any other law for the rel ief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the Agency or of the whole or any substantial part of its property; provided, however, that an Event of Default under subsection (3) above shall not be deemed to exist under. the provisions of this Article upon the failure of any Servicer to enforce any obligation undertaken by a Mortgagor pursuant to the provisions of the Mortgage Loan, including the mak ing of the repayments required pursuant to such Mortgage Loan, so long as the Agency shall be provided with money sources, other than withdrawals from or reimbursements of the Debt Service Reserve Fund and Mortgage Reserve Fund, sufficient in amount to pay the principal of, interest and Sinking Fund Installments on all 80nds as the same shall become due during the period for which the Servicer shall be permitted to abstain from enforcing the obligations of Mortgagors under the applicable Mortgage Loans. 1202. Remedies. Upon the happening and continuance of any Event of Default specified in Section 1201, then, and in each case, the Trustee may proceed, and upon the written request of the Holders of not less than twenty-five percent (25%) in principal amount of the Outstanding Bonds shall proceed, in its own name, to protect and enforce the rights and the rights of the Holders of the Bonds by such of the following remedies, as the Trustee, being adv ised by counsel, shall deem mos t effectual to protect and enforce such rights: 61 1 . . . . . .