Laserfiche WebLink
<br />Subordination Agreement (Affordable) Page 11 <br />(First Street Apartments) <br />action relating to a Condemnation Action or a Casualty, or to participate or join in <br />any settlement of, or to adjust, any claims resulting from a Condemnation Action <br />or a Casualty shall be and remain subject and subordinate in all respects to Senior <br />Lender’s rights under the Senior Loan Documents with respect thereto, and <br />Subordinate Lender shall be bound by any settlement or adjustment of a claim <br />resulting from a Condemnation Action or a Casualty made by Senior Lender; <br />provided, however, this subsection or anything contained in this Agreement shall <br />not limit the rights of Subordinate Lender to file any pleadings, documents, claims <br />or notices with the appropriate court with jurisdiction over the proposed <br />Condemnation Action or Casualty; and <br />(B) all proceeds received or to be received on account of a <br />Condemnation Action or a Casualty, or both, shall be applied (either to payment <br />of the costs and expenses of repair and restoration or to payment of the Senior <br />Loan) in the manner determined by Senior Lender in its sole discretion; provided, <br />however, that if Senior Lender elects to apply such proceeds to payment of the <br />principal of, interest on and other amounts payable under the Senior Loan, any <br />proceeds remaining after the satisfaction in full of the principal of, interest on and <br />other amounts payable under the Senior Loan shall be paid to, and may be applied <br />by, Subordinate Lender in accordance with the applicable provisions of the <br />Subordinate Loan Documents, provided however, Senior Lender agrees to consult <br />with Subordinate Lender in determining the application of Casualty proceeds, <br />provided further however that in the event of any disagreement between Senior <br />Lender and Subordinate Lender over the application of Casualty proceeds, the <br />decision of Senior Lender, in its sole discretion, shall prevail. <br />(c) Insurance. <br />Subordinate Lender agrees that all original policies of insurance required pursuant to the <br />Senior Security Instrument shall be held by Senior Lender. The preceding sentence shall not <br />preclude Subordinate Lender from requiring that it be named as a loss payee, as its interest may <br />appear, under all policies of property damage insurance maintained by Borrower with respect to <br />the Mortgaged Property, provided such action does not affect the priority of payment of the <br />proceeds of property damage insurance under the Senior Security Instrument, or that it be named <br />as an additional insured under all policies of liability insurance maintained by Borrower with <br />respect to the Mortgaged Property. <br />(d) No Modification of Subordinate Loan Documents. <br />Borrower and Subordinate Lender each agree that, until the principal of, interest on and <br />all other amounts payable under the Senior Loan Documents have been paid in full, it will not, <br />without the prior written consent of Senior Lender in each instance, increase the amount of the <br />Subordinate Loan, increase the required payments due under the Subordinate Loan, decrease the <br />term of the Subordinate Loan, increase the interest rate on the Subordinate Loan, or otherwise <br />amend the Subordinate Loan terms in a manner that creates an adverse effect upon Senior Lender <br />under the Senior Loan Documents. Any unauthorized amendment of the Subordinate Loan <br />EXHIBIT 4 <br />3-149