His Worship the Mayor oo - . December 29,

monthly payment will be made in the amount of $14,
commencing February 1, 1983 and continuing until
January 1, 1990 at which time the full balance of |.
principal’ and interest shall become due and payable;

these payments will be additional to the payments of
$7,601 payable under the First Mortgage (as modified. by
the Modification Agreement) commencing on February 1,
1983 and continuing until December 1, 1989 at. which
time the balance then owing shall become payable;

Carnoustie must insure during the continuance of the
mortgage and keep insured in favour of Crown Life each .
and every building on the land;.- ’ — Bee

Carnoustie will ‘observe and perform all the terms,
_convenants: and.conditions contained in.the lease;

- failure to comply with ‘the foregoing conditions will

' constitute a°default under the mortgage;

Sa.

‘apon default, Crown ‘Life- can enter’ on’ the lands “for- the

' Femainder’ of ‘the term of the lease with the exception
(of ‘the last day thereof; °° re e Py

Crown Life will be able’ to exercise ‘the right of

"Fenewal ‘contained in the original lease; and
_. df Carnoustie pays the amounts owing pursuant to the
. terms. of the mortgages, the mortgages will ‘be. void.

oe @e" The practical’ effect of ‘all of this is that there is a
. risk that if Carnoustie’ is unable to: meet its payments ‘in accor=.".
/ «dance. withthe schedule ‘set’ out above, Crown Life can terminate
dts rights: to Operate the golf course ‘and substitute ‘another=
- partys. While the City has aright under.:the ‘lease,to approve who.
"Operates the golf course, there is some risk that ‘the City: might
beheld to be estopped from objecting to whomever’ is: ‘put‘on’ the *.
property if it consents to’ a mortgage containing these térms: we
-." Consequently. it has: been made a term of both the Second’ Mortgage
and) the Modification Agreement) that no transfer ofthe operation:
*“or: ownership’ of:.the lands covered. by the mortgages other than’ to
Crown. Life. itself may be made.as.a result ofthe operation of |. be
‘either mortgage without: the express consent of Council..: We refer
“you to: the second: paragraph on page thirteen of the: Second.’ Se
. Mortgage and the last paragraph of page five of the Modification.

» Agreement. |. -
en en ee

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