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Item 68 - Crossroads at Washington Affordable Housing Project at 1126, 1136, & 1146 East Washigton Ave.
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Item 68 - Crossroads at Washington Affordable Housing Project at 1126, 1136, & 1146 East Washigton Ave.
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City Clerk
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Agenda Packet
Agency
Clerk of the Council
Item #
68
Date
6/21/2022
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Loan Documents and to all advances heretofore made or which may hereafter be made <br />pursuant to the Senior Mortgage and the other Senior Mortgage Loan Documents (including <br />but not limited to, all sums advanced for the purposes of (1) protecting or further securing the <br />lien of the Senior Mortgage, curing defaults by the Borrower under the Senior Mortgage Loan <br />Documents or for any other purpose expressly permitted by the Senior Mortgage, or (2) <br />constructing, renovating, repairing, furnishing, fixturing or equipping the Property). <br /> <br /> (b) Subordinate Lender Subordination of Subrogation Rights. The <br />Subordinate Lender agrees that if, by reason of its payment of real estate taxes or other <br />monetary obligations of the Borrower, or by reason of its exercise of any other right or remedy <br />under the Subordinate Loan Documents, it acquires by right of subrogation or otherwise a lien <br />on the Property which (but for this subsection) would be senior to the lien of the Senior <br />Mortgage, then, in that event, such lien shall be subject and subordinate to the lien of the <br />Senior Mortgage. <br /> <br /> (c) Payments Before Senior Mortgage Loan Default. Until the Subordinate <br />Lender receives a Default Notice of a Senior Mortgage Loan Default from the County, the <br />Subordinate Lender shall be entitled to retain for its own account all payments made under or <br />pursuant to the Subordinate Loan Documents. <br /> <br /> (d) Payments After Senior Mortgage Loan Default. The Borrower agrees that, <br />after it receives notice (or otherwise acquires knowledge) of a Senior Mortgage Loan Default, <br />it will not make any payments under or pursuant to the Subordinate Loan Documents <br />(including but not limited to principal, interest, additional interest, late payment charges, <br />default interest, attorney's fees, or any other sums secured by the Subordinate Mortgage) <br />without the County's prior written consent. The Subordinate Lender agrees that, after it <br />receives a Default Notice from the County with written instructions directing the Subordinate <br />Lender not to accept payments from the Borrower on account of the Subordinate Loans, it <br />will not accept any payments under or pursuant to the Subordinate Loan Documents <br />(including but not limited to principal, interest, additional interest, late payment charges, <br />default interest, attorney's fees, or any other sums secured by the Subordinate Mortgages) <br />without the County's prior written consent. If the Subordinate Lender receives written notice <br />from the County that the Senior Mortgage Loan Default which gave rise to the Subordinate <br />Lender's obligation not to accept payments has been cured, waived, or otherwise suspended <br />by the County, the restrictions on payment to the Subordinate Lender in this Section 4 shall <br />terminate, and the County shall have no right to any subsequent payments made to the <br />Subordinate Lender by the Borrower prior to the Subordinate Lender's receipt of a new <br />Default Notice from the County in accordance with the provisions of this Section 4(d). <br /> <br /> (e) Remitting Subordinate Loan Payments to County. If, after the Subordinate <br />Lender receives a Default Notice from the County in accordance with subsection (d) above, <br />the Subordinate Lender receives any payments under the Subordinate Loan Documents, the <br />EXHIBIT 8
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