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<br />Subordination Agreement (City of Santa Ana) Form 6456 Page 4
<br />Fannie Mae 08-13 © 2013 Fannie Mae
<br /> [Crossroads at Washington]
<br />4870-7010-6914v.2 0017787-000542
<br />“Subordinate Loan Default” means a default by Borrower in performing or observing any of the
<br />terms, covenants or conditions in the Subordinate Loan Documents to be performed or observed
<br />by it, which continues beyond any applicable period provided in the Subordinate Loan Documents
<br />for curing the default.
<br />“Subordinate Loan Documents” means the Subordinate Loan Agreements, Subordinate Notes,
<br />the Subordinate Mortgages, any UCC-1 financing statement filed showing Borrower, as debtor,
<br />and Subordinate Lender, as secured party, filed in connection with the Subordinate Loans, and all
<br />other documents evidencing, securing or otherwise executed and delivered in connection with the
<br />Subordinate Loans.
<br />“Subordinate Loans” has the meaning set forth in Recital D, above.
<br />“Subordinate Mortgages” means, collectively, (a) that certain City HOME Deed of Trust and
<br />Assignment of Rents dated as of _______________, 2022, and (b) that certain City Neighborhood
<br />Stabilization Program Deed of Trust and Assignment of Rents dated as of _______________,
<br />2022, each executed by Borrower in favor of Subordinate Lender, and each recorded in the Official
<br />Records substantially concurrently herewith, encumbering the Mortgaged Property as security for
<br />the applicable Subordinate Loan.
<br />“Subordinate Notes” means, collectively, (a) that certain City HOME Loan Note Secured By
<br />Subordinated Deed of Trust to the City of Santa Ana, California dated as of _______________,
<br />2022, executed by Borrower to the order of Subordinate Lender, in the face principal amount of
<br />$3,007,489, evidencing the HOME Loan, and (b) that certain City Neighborhood Stabilization
<br />Program Loan Note Secured By Subordinated Deed of Trust to the City of Santa Ana, California
<br />dated as of _______________, 2022, executed by Borrower to the order of Subordinate Lender, in
<br />the face principal amount of $____________, evidencing the NSP Loan.
<br />“Unsubordinated City Regulatory Agreements” means, collectively, (a) that certain
<br />Affordability Restrictions on Transfer of Property dated _______________, 2022 (the “HOME
<br />Regulatory Agreement”), and (b) that certain Neighborhood Stabilization Program Affordability
<br />Restrictions on Transfer of Property dated _______________, 2022 (the “NSP Regulatory
<br />Agreement”), each executed by and between Borrower and Subordinate Lender, and each
<br />recorded in the Official Records substantially concurrently herewith.
<br />3. Permission to Place Mortgage Lien Against Mortgaged Property.
<br />Senior Lender agrees, notwithstanding the prohibition against inferior liens on the
<br />Mortgaged Property contained in the Senior Loan Documents and subject to the provisions of this
<br />Agreement, to permit Subordinate Lender to record the Subordinate Mortgages, the
<br />Unsubordinated City Regulatory Agreements, and other recordable Subordinate Loan Documents
<br />against the Mortgaged Property to secure Borrower’s obligation to repay the Subordinate Notes
<br />and all other obligations, indebtedness and liabilities of Borrower to Subordinate Lender under
<br />and in connection with the Subordinate Loans. Such permission is subject to the condition that each
<br />of the representations and warranties made by the Borrower and the Subordinate Lender in Section 4
<br />is true and correct on the date of this Agreement and on the date on which the proceeds of the
<br />EXHIBIT 7
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