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<br />Subordination Agreement (Affordable) Page 6 <br />(First Street Apartments) <br />6. Terms of Subordination. <br />(a) Agreement to Subordinate. <br />Senior Lender and Subordinate Lender agree that (1) the indebtedness evidenced by the <br />Subordinate Loan Documents is and shall be subordinated in right of payment, to the extent and <br />in the manner provided in this Agreement, to the prior payment in full of the Indebtedness <br />evidenced by the Senior Loan Documents, and (2) the liens, terms, covenants and conditions of <br />the Subordinate Mortgage and the other Subordinate Loan Documents are and shall be subject <br />and subordinate in all respects to the liens, terms, covenants and conditions of the Senior <br />Security Instrument and the other Senior Loan Documents and to all advances heretofore made or <br />which may hereafter be made pursuant to the Senior Security Instrument and the other Senior <br />Loan Documents (including but not limited to, all sums advanced for the purposes of (A) <br />protecting or further securing the lien of the Senior Security Instrument, curing defaults by <br />Borrower under the Senior Loan Documents or for any other purpose expressly permitted by the <br />Senior Loan Documents, or (B) constructing, renovating, repairing, furnishing, fixturing or <br />equipping the Mortgaged Property). <br />(b) Subordination of Subrogation Rights. <br />Subordinate Lender agrees that if, by reason of its payment of real estate taxes or other <br />monetary obligations of Borrower, or by reason of its exercise of any other right or remedy under <br />the Subordinate Loan Documents, it acquires by right of subrogation or otherwise a lien on the <br />Mortgaged Property which (but for this subsection) would be senior to the lien of the Senior <br />Security Instrument, then, in that event, such lien shall be subject and subordinate to the lien of <br />the Senior Security Instrument. <br />(c) Payments Before Senior Loan Default. <br />Until Subordinate Lender receives a Default Notice (or otherwise acquires actual <br />knowledge) of a Senior Loan Default, Subordinate Lender shall be entitled to retain for its own <br />account all payments made under or pursuant to the Subordinate Loan Documents. <br />(d) Payments After Senior Loan Default. <br />Borrower agrees that, after it receives a Default Notice (or otherwise acquires knowledge) <br />of a Senior Loan Default, it will not make any payments under or pursuant to the Subordinate <br />Loan Documents (including but not limited to principal, interest, additional interest, late payment <br />charges, default interest, attorneys’ fees, or any other sums secured by the Subordinate Loan <br />Documents) without Senior Lender’s prior written consent. Subordinate Lender agrees that, after <br />it receives a Default Notice from Senior Lender with written instructions directing Subordinate <br />Lender not to accept payments from Borrower on account of the Subordinate Loan, it will not <br />accept any payments under or pursuant to the Subordinate Loan Documents (including but not <br />limited to principal, interest, additional interest, late payment charges, default interest, attorneys’ <br />fees, or any other sums secured by the Subordinate Loan Documents) without Senior Lender’s <br />prior written consent. If Subordinate Lender receives written notice from Senior Lender that the <br />Senior Loan Default which gave rise to Subordinate Lender’s obligation not to accept payments <br />EXHIBIT 4 <br />3-144