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HomeMy WebLinkAbout78-57 THE CORPORATION OF THE TOWN OF NEWCASTLE BY-LAW NO. 78-57 a by-law to authorize the entering into an Agreement with Claret Investments and Rexgate Holdings Ltd. WHEREAS Council has entered into a Subdivision Agreement with Claret Investments and Rexgate Holdings Ltd. , AND WHEREAS Council deems it necessary to enter into a further Agreement with the Subdividers: NOW THEREFORE the Council of the Corporation of the Town of Newcastle hereby ENACTS AS FOLLOWS: 1. THAT the Mayor and Clerk are hereby authorized to execute on behalf of the Corporation of the Town of Newcastle, and seal with the Corporate Seal an Agreement between Claret Investments and Rexgate Holdings Ltd. , and the said Corporation to provide for the posting of a Letter of Credit by the Developer in the event that the Mortagees do not sign the Subdivision Agreement as per By-Law 78-55, which agreement is annexed hereto as . Schedule "A". READ A FIRST, SECOND AND THIRD TIME and finally passed this 6th day of July, 1978. G. B. Rickard Mayor J. M. McIlro Clerk • i THIS AGREEMENT made in duplicate this day of i r A . D . , 1978 . B E T W E E N THE CORPORATION OF THE TOWN OF NEWCASTLE, hereinafter called the PARTY OF THE FIRST PART and CLARET INVESTMENTS LIMITED and REXGATE HOLDINGS LIMITED , hereinafter called the PARTIES 0 H F THE SECOND PART WHEREAS the parties hereto have contemporaneously with the execution of this agreement entered into a subdivision agree- ment ; AND WHEREAS under the subdivision agreement , the mort- gagees , Minnie Mary Phair, Flecherdon Investments Limited, James Milgage , Roy F. Johnson, Merelda B. Johnson, Reinhold Litz , Sr. , Reinhold Litz , Jr . , John Kastel , Mary Kastel , John Kuyer and Elizabeth Kuyer , are to execute the agreement for the purpose of postponing their mortgage to the subdivision agreement ; AND WHEREAS the mortgagees have not executed the sub- division agreement and may refuse to do so ; AND WHEREAS the parties hereto deem it desirable to enter into this agreement in the event that any of the herein- before referred to mortgagees do not execute the subdivision agreement . NOW THEREFORE in consideration of the mutual agreements and covenants and promises herein contained , and other good and I valuable consideration, the parties hereto agree as -follows : i I i I -2- 1. In the event the mortgagees, Minnie Mary Phair, Flecherdon Investments Limited, James Milgate, Roy F. Johnson, Merelda B. Johnson, Reinhold Litz, Sr. , Reinhold Litz, Jr. , John Kastel, Mary Kastel, John Kuyer and Elizabeth Kuyer, do not execute the subdivision agreement pertaining to Subdivision No. 18T-76027, on or before the final approval by the Minister ..I of Housing of the aforesaid Plan, the Owner shall forthwith upon the final release of the Plan for registration, furnish to the Municipality an irrevocable letter of credit in a form satisfactory to the Treasurer a and Solicitor of the Municipality, in an amount equal to the unpaid principal balance of such mortgages registered against the lands as of the date of this Agreement for which mortgagees have not signed the subdivision agreement. { 2. In the event that any of the owners, assignees, successors or holders of aforesaid mortgages shall commence foreclosure and/or sale proceedings against the whole or any part of the Lands, the Municipality may use such part of the letter of credit as is necessary to fully discharge I any mortgage upon which mortgage foreclosure and/or sale proceedings have been commenced. 3. The amount of the letter of credit may be reduced from time to time upon production by the Owner of evidence satisfactory to the Municipality that the principal amount owing on the aforesaid mortgages have been reduced and the amount of such reduction of the letter of credit shall be equal to the amount of the reduction of the principal amount owing on the aforesaid mortgages between the date of a this Agreement and the date of the request for a reduction in the . I i - I i i i i i I Ietter of credit . 4 . The letter of credit shall be released in full when the last of the aforesaid mortgages have been fully discharged by the registration upon title of a discharge of mortgage , or i cessation of charge , as may be the case . I i IN WITNESS WHEREOF the parties hereto have hereunto affixed their corporate seals under the hands of their duly authorized officers . I THE CORPORATION OF THE TOWN OF NEWCASTLE, j Per : .. y � v Mayor Clerk CLARET `I CLARET INVESTMENTS LIMITED, a Per : j �I REyGATE HOLDINGS LIMITED, { Per : -I x� I i I 1JA'1 hU : B E T W E E N : THE CORPORATION OF THE TOWN OF NEWCASTLE i AND i I CLARET INVESTMENTS LIMITED and REXGATE HOLDINGS LIMITED A G R E E M E N T i i SIMS MORTON McINERNEY BRADY, Barristers and Solicitors , . 117 Ring Street , Whitby, Ontario i