In this paper we discuss modified gravity models in which growth of the curvature is dynamically restricted. To illustrate interesting features of such models we consider a modification of twodimensional dilaton gravity theory which satisfies the limiting curvature condition. We show that such a model describes two-dimensional black holes which contain the de Sitter-like core instead of the singularity of the original non-modified theory. In the second part of the paper we study Vaidya type solutions of the model of the limiting curvature theory of gravity and used them to analyse properties of black holes which are created by the collapse of null fluid. We also apply these solutions to study interesting features of a black hole evaporation.Alberta-Thy-17-21