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adequate foods to cover the difference between the total cost of the construction and completion of <br />the Improvements, less financing authorized by those loans set forth in subparagraph (a) above. <br />311.2 No Encumbrances Except Agency recorded documents (Deeds of <br />Trust/Affordability Restrictions on Transfer of Property). The Developer shall not enter into any <br />conveyance for financing prior to the Release of Construction Covenants without the prior written <br />approval of the Agency, which approval Agency agrees to give if any such conveyance for financing <br />is given to a responsible financial lending institution or person or entity ("Holder"). The Developer <br />may enter into a conveyance for financing after Che completion o£,t~ie Improvements as evidenced by <br />the recording of the Reloasc of Construction Covenants without;thp:approval of the Agency. <br />311.3 Holder Not Obligated to <br />mortgage or deed of trusC authorized by this Agrer <br />this Agreement to consh•uct or complete the Impri <br />such construction or completion; nor shall any covi, <br />construed so as to obligate such Holder. Notliin~g <br />permit or authorize any such Holder to devot~'s <br />improvements thereon, other than those uses or ii <br />Agreement. <br />311.4 Notice of De <br />Cure. With respect to any mortgage <br />whenever the Agency may deliver any <br />Developer in completiofi of cons~ucti <br />deliver to each holder of record bf:ap <br />copy of such notice or demand. Each?. <br />are concerned) have the"right, at its,o)- <br />cure or remedy or commence to pir e o <br />or remade of ariv sucliDefault and to <br />mstrucfIhprovements. The holder of any <br />ntsliall noh;le obligated by the provisions of <br />vents or any pot!tion thereof, or to guarantee <br />it or any other pro~ii ion in this Agreement be <br />this Agreement sliail'bE deemed to construe, <br />to any uses pr to constrict any <br />irovidcd for `ox'authorized by this <br />ult #o Mortgagee on Aeed of Trust Holders; Right to <br />n heed o1 (rust granEecJ "by Developer as provided herein, <br />ttrce of derna~cJ'to„Developerwith respect to any llefault by <br />~ of-the lmpXgvetrients,, the Agency may at the same time <br />mortgage or<~decd of trusT. authorized by this Agreement a <br />ch Holder Sl`all (insoiar''a"s the rights granted by the Agency <br />on, wrthtq'S)',xty (60) days after the receipt of the notice, to <br />ietl?tidy and=hereafter to pursue with due diligence the dire <br />dd''t~fe AoSt (hereof to the mortgage debt and the lien of its <br />to undeiCe or continue the construction or completion of <br />the Improvements, or any po~ien thet'eQ,f, if necessary to conserve or protect the improvements or <br />construction already completed,.yvithout hying first expressly assumed Developer's obligations to <br />the Agency hereunder. Except a's! set forth'in the immediately preceding sentence, such Holder may <br />enforce the terms.'pf this Agreetreut agaiusC the Agcney only if it has first expressly assumed <br />Developer's obligatigljs to the agency under this Agreement by written agreement reasonably <br />satisfactory to the Agei7`,cy. Agency shall fund its obligations under this Agreement to any Holder <br />who undertakes to cothplet~•„tNe Improvements. Any such Holder properly completing such <br />improvement shall be entitled',' upon compliance with Lhe requirements of Seotion370 of this <br />Agreement, to a Release of Construction Covenants. Tt is understood that a Holder shall be deemed <br />to have satisfied the sixty (60) day time limit set forth above for commencing to cure or remedy a <br />Developer Default which requires title and/or possession of the Property (or portion thereof) if and to <br />the extent any such Holder has within such sixty (60) day period comrnenccd proceedings to obtain <br />title and/or possession and thcrca8cr the Holder diligently pursues such proceedings to completion <br />and cures or remedies the Default. <br />311.5 Right of the Agency to Cure Mortgage or Deed of Trust Default. In the <br />event of a mortgage or deed of trust default or breach by Developer prior to the completion of the <br />construction of any of the Improvements or any part thereof, Developer shall immediately deliver to <br />Agency a copy of any mortgage holder's notice of default. If the Holder of any mortgage or deed of <br />17 <br />