Common use of Right of Reversion Clause in Contracts

Right of Reversion. As security for Developer’s progress toward completion of the Lease Purchase Improvements, the deed to the Development Property to Developer shall contain a right of reversion (“Reversionary Right”), which may be exercised by the City, in its sole discretion, upon any Event of Default by Developer which is not cured within the time period allowed by Section XII (a “Reversion Event”). Upon a Reversion Event, the City may exercise the Reversionary Right to reacquire title to the Development Property. Developer shall allow no mortgages or liens (including, but not limited to, mechanic’s liens) to encumber the Development Property while the City holds its Reversionary Right. To exercise the City’s Reversionary Right described herein, the City must deliver written notice to Developer (or its permitted successors, assigns or transferees) within ninety (90) days of the Reversion Event, and record such notice with the County Recorder of deeds, in which case the title to the Development Property shall automatically revert to the City, subject only to the Permitted Encumbrances as of the date of the recording of the notice. Upon request from the City, Developer shall take all reasonable steps to ensure the City acquires marketable title the Development Property through its exercise of its rights under this Section within 60 days of the City’s demand, including without limitation, the execution of appropriate deeds and other documents. This provision shall survive the Closing. If a Reversion Event has not occurred prior to the recording of a construction mortgage evidencing Developer’s Financing, then the Reversionary Right to the Development Property shall terminate and be of no further force and effect. The City agrees to execute and record, at is expense, any documents reasonably requested by Developer or its lender to evidence any termination of the Reversionary Right as set forth herein.

Right of Reversion. As Notwithstanding anything herein to the contrary, and as additional security for Developer’s progress toward completion of the Lease Purchase ImprovementsFoundation's obligation to Commence Museum Construction, the deed Museum Deed conveying the Museum Property to the Development Property to Developer Foundation shall contain a right of reversion in all of the Museum Property (“"City's Reversionary Right”Right (Museum)" or "Reversionary Right (Museum)"), which may be exercised by the City, in its sole reasonable discretion, upon any if the following conditions occur: a. The Foundation does not Commence Museum Construction within three (3) months after the Museum Closing; b. An Event of Default has occurred by Developer the Foundation, which is not cured within the time period allowed by Section XII (a “Reversion Event”)15.2. Upon a Reversion EventIf any of the above conditions occur, then the City may exercise shall automatically have the City's Reversionary Right (Museum) to reacquire title to the Development Museum Property. Developer The Foundation shall allow no mortgages or liens (including, but not limited to, mechanic’s liens) to encumber the Development Museum Property while the City holds its Reversionary RightRight (Museum). To exercise the City’s 's Reversionary Right (Museum) described herein, the City must deliver provide written notice to Developer the Foundation (or its permitted successors, assigns or transferees) within ninety sixty (9060) days of the Reversion EventFoundation's failure under this Agreement, and record such notice with the County Recorder of deeds, in which case the title to the Development Museum Property shall automatically revert to the City, subject only to the Permitted Encumbrances City as of the date of the recording of the notice. Upon request from the City, Developer the Foundation shall take all reasonable steps to ensure the City acquires marketable title to the Development Museum Property through its exercise of its rights under this Section within 60 thirty (30) days of the City’s 's demand, including without limitation, the execution of appropriate deeds and other documents. This provision Section shall survive the Museum Closing. If a Reversion Event has not occurred prior Notwithstanding anything to the recording of a construction mortgage evidencing Developer’s Financingcontrary herein, then the City's Reversionary Right (Museum) with respect to the Development Museum Property shall terminate and be of no further force and effecteffect if and when the Foundation (or its permitted successors, assigns or transferees) has Commenced Museum Construction on the Museum Property. The City agrees to execute and record, at is expense, any documents reasonably requested by Developer the Foundation or its lender to evidence any whole or partial termination of the City's Reversionary Right (Museum) as set forth herein.