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AgdaPkt 2018-12-17 Joint Special
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AgdaPkt 2018-12-17 Joint Special
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Last modified
12/18/2018 1:26:47 PM
Creation date
12/18/2018 9:28:06 AM
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Template:
CC Index
CC Index - Document Type
Agenda Packet
Meeting Type
Joint
Agency Type
City Council and Successor Agency and Public Financing Authority
Date
12/17/2018
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6.A. - Page 8 of 24 <br />3. Borrower's and Subordinate Lender's Representations and <br />Warranties. <br />The Borrower and the Subordinate Lender, as applicable, make the following <br />representations and warranties to the Senior Lender: <br />(a) Relationship of Borrower to Subordinate Lender. The Subordinate <br />Lender and Borrower each represent that the Subordinate Lender is not an Affiliate of the <br />Borrower. <br />(b) Relationship of Borrower to Senior Lender. The Borrower represents <br />that it is not in possession of any facts which would lead it to believe that the Senior Lender is <br />an Affiliate of the Borrower. <br />(c) Term. The Subordinate Lender and Borrower each represent that the <br />term of the Subordinate Note does not end before the term of the Senior Note. <br />(d) Subordinate Loan Documents. Borrower represents that is has <br />delivered to Senior Lender the executed copy of each of the Subordinate Loan Documents, <br />certified to be true, correct and complete. <br />(e) Senior Loan Documents. Borrower represents that upon execution <br />and delivery of the Senior Loan Documents, Borrower shall deliver to Subordinate Lender an <br />executed copy of each of the Senior Loan Documents, certified to be true, correct and <br />complete. <br />4. Terms of Subordination. <br />(a) Agreement to Subordinate. The Senior Lender and the Subordinate <br />Lender agree that: (i) the indebtedness evidenced by the Subordinate Loan Documents is and <br />shall be subordinated in right of payment, to the extent and in the manner provided in this <br />Agreement, to the prior payment in full of the indebtedness evidenced by the Senior Loan <br />Documents, and (ii) the Subordinate Security Instrument and the other Subordinate Loan <br />Documents are and shall be subject and subordinate in all respects to the liens, terms, covenants <br />and conditions of the Senior Security Instrument and the other Senior Loan Documents and to <br />all advances heretofore made or which may hereafter be made pursuant to the Senior Security <br />Instrument and the other Senior Loan Documents (including but not limited to, all sums <br />advanced for the purposes of (1) protecting or further securing the Iien of the Senior <br />Security Instrument, curing defaults by the Borrower under the Senior Loan Documents or for <br />any other purpose expressly permitted by the Senior Security Instrument, or (2) constructing, <br />renovating, repairing, furnishing, fixturing or equipping the Property). <br />(b) Subordination of Subrogation Rights. The Subordinate Lender agrees <br />that if, by reason of its payment of real estate taxes or other monetary obligations of the <br />Borrower, or by reason of its exercise of any other right or remedy under the Subordinate Loan <br />Documents, it acquires by right of subrogation or otherwise a lien on the Property which (but <br />for this subsection) would be senior to the lien of the Senior Security Instrument, then, in that <br />event, such lien shall be subject and subordinate to the lien of the Senior Security Instrument. <br />REV: 12-06-18 VR <br />Page 5 of 21 <br />ATTY/AGR.2018.2741KDF Hallmark 14 <br />
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