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BK 13848PO 413 <br />land when due and payable as provided herein, or any lien or <br />claim arising out of the construction, repair, restoration, <br />maintenance or use of said leased land or the buildings and <br />improvements thereon, or any other claim, charge or demand <br />which FAMILY has agreed to pay under the covenants of this <br />Lease, and if after thirty (30) days written notice from CITY <br />to FAMILY and to its authorized encumbrancer, if any, FAMILY or <br />its said encumbrancer should fail or refuse to pay and discharge <br />the same, then CITY may, at its option, pay any such tax, assess- <br />ment, lien, claim, charge or demand, or settle or discharge any <br />action therefor or judgment thereon, and all costs, expenses <br />and other sums incurred or paid by CITY in connection therewith <br />shall be repaid to CITY by FAMILY upon written demand, together <br />with interest thereon at the rate of seven per cent (7%) per <br />annum from the date of payment until repaid, and any default in <br />such repayment shall constitute a breach of the covenants and <br />conditions of this Lease. <br />12. Foreclosure. In the event of foreclosure on the FHA <br />insured mortgage, or other proceedings in lieu thereof, the <br />Secretary of the Department of Housing and Urban Development <br />("HUD"), or his/her successors in office, shall have the option <br />to purchase good and marketable fee title to said leased land <br />at the appraised value set out in hereinabove paragraph 2. If <br />such option is not exercised, HUD°S successors and assigns may <br />assume all riaht, title and interest in and to this Lease and <br />said leased land. <br />13. Place of Payments and Notices. All rents and other <br />sums payable by FAMILY to CITY hereunder shall be paid to CITY <br />at its business office c/o Community Development Coordinator, <br />20 Civic Center Plaza, Santa Ana, California 92701. Whenever <br />either party hereto desires to give written notice to the other <br />10 <br />