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<br />Subordination Agreement (Affordable) Page 8 <br />(First Street Apartments) <br />shall be restricted to the produce of thirty percent (30%) of sixty percent (60%) of the AMI, as <br />adjusted for household size. <br />7. Default Under Subordinate Loan Documents. <br />(a) Notice of Subordinate Loan Default and Cure Rights. <br />Subordinate Lender shall deliver to Senior Lender a Default Notice within five (5) <br />Business Days in each case where Subordinate Lender has given a Default Notice to Borrower. <br />Failure of Subordinate Lender to send a Default Notice to Senior Lender shall not prevent the <br />exercise of Subordinate Lender’s rights and remedies under the Subordinate Loan Documents, <br />subject to the provisions of this Agreement. Senior Lender shall have the right, but not the <br />obligation, to cure any Subordinate Loan Default within sixty (60) days following the date of <br />such notice; provided, however that Subordinate Lender shall be entitled, during such sixty (60) <br />day period, to continue to pursue its rights and remedies under the Subordinate Loan <br />Documents. All amounts paid by Senior Lender in accordance with the Senior Loan Documents <br />to cure a Subordinate Loan Default shall be deemed to have been advanced by Senior Lender <br />pursuant to, and shall be secured by, the Senior Loan Agreement and the Senior Security <br />Instrument. <br />(b) Subordinate Lender’s Exercise of Remedies After Notice to Senior Lender. <br />If a Subordinate Loan Default occurs and is continuing, Subordinate Lender agrees that, <br />without Senior Lender’s prior written consent, it will not commence foreclosure proceedings <br />with respect to the Mortgaged Property under the Subordinate Loan Documents or exercise any <br />other rights or remedies it may have under the Subordinate Loan Documents, including, but not <br />limited to accelerating the Subordinate Loan (and enforcing any “due on sale” provision included <br />in the Subordinate Loan Documents), collecting rents, appointing (or seeking the appointment of) <br />a receiver or exercising any other rights or remedies thereunder unless and until it has given <br />Senior Lender at least sixty (60) days prior written notice; during such sixty (60) day period, <br />provided, however, such limitation on the remedies of Subordinate Lender shall not derogate or <br />otherwise limit Subordinate Lender’s rights, following an event of default under the Subordinate <br />Loan Documents to (a) compute interest on all amounts due and payable under the Subordinate <br />Loan at the default rate described in the Subordinate Loan Documents, (b) compute prepayment <br />premiums and late charges, (c) enforce against any person, other than Borrower and any <br />guarantors or indemnitors under the Senior Loan Documents, any guaranty of the obligations of <br />Borrower under the Subordinate Loan, and (d) seek specific performance to enforce covenants <br />and agreements of Borrower relating to income, rent, or affordability restrictions contained in the <br />Affordability Restrictions, and (e) appear in, defend or bring an action in connection with the <br />Property in Subordinate Lender’s capacity as a municipal authority to the extent required by law. <br />(c) Cross Default. <br />Borrower and Subordinate Lender agree that a Subordinate Loan Default shall constitute <br />a Senior Loan Default under the Senior Loan Documents and Senior Lender shall have the right <br />to exercise all rights or remedies under the Senior Loan Documents in the same manner as in the <br />case of any other Senior Loan Default. If Subordinate Lender notifies Senior Lender in writing <br />EXHIBIT 4 <br />3-146