SUBORDINATION AGREEMENT (3) - Laserfiche WebLink

9938 6162 E. Pursuant to section 42(h)(6)(EXii), which is incorporated in Section 2c of the Regulatory Agreement, the Regulatory Agreement, and the use restrictions contained in it, shall terminate (1) on the date the building is acquired by foreclosure (or instrument in lieu of foreclosure) unless the Secretary of the Treasury determines that such acquisition is part of an arrangement with the taxpayer a purpose of which is to terminate such period The termination of the Regulatory Agreement and the use restrictions contained in it under clause (1) shall not be construed to permit before the close of the 3 -year period following such termination: (I) the eviction or the termination of tenancy (other than for good cause) of an existing tenant of any low- income unit, or (II) any increase in the gross rent with respect to such unit not otherwise permitted under Section 42 (collectively, the "Surviving Provisions F. Lender has agreed to loan (the "Loan") Borrower up to $2,250,000.00. Borrower's obligation to repay the Loan is evidenced by a promissory note in favor of Lender in the total face amount of not to exceed $2,250,000.00 (as supplemented or amended from time to time, the "Note dated as of September 1, 1999. The Loan is to be secured by a deed of trust, which is dated as of September 1, 1999 and will be recorded concurrently herewith among the Official Records (as supplemented or amended from time to time, the "Deed of Trust (the Note and the Deed of Trust, together with all other security documents now or hereafter securing payment of the Loan, are hereinafter collectively referred to as the "Loan Documents G. As a condition to making the Loan, Lender requires that the Loan Documents be a lien on the Property superior to the lien of the Regulatory Agreement. The Lender will not make the Loan unless TCAC and Borrower agree to subordinate the Regulatory Agreement. H. Borrower and TCAC hereby agree to subordinate the Regulatory Agreement subject to the terms of this Agreement. NOW, 'THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Recitals. The foregoing Recitals are hereby incorporated into this Agreement as agreements among the parties. 2. Subordination. The Loan Documents, subject to paragraph 3 below, and any modifications, renewals or extensions thereof, and any advances (including interest thereon) thereunder or secured thereby shall be and remain at all times liens or charges on the Property, prior and superior to (a) the Regulatory Agreement and all indebtedness secured thereby, and (b) all rights and privileges of Agency thereunder, are hereby subjected, and made subordinate to the DC1 5967 .2 018241 IQC