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principal amount of the Subordinate Note outstanding -.shall bear interest at -a rate per annurn <br />equal to zero percent (0%). <br />5. Default Under Subordinate Loan Documents. <br />(a) Notice of Default and Cure Rights. The Subordinate Lender shall <br />deliver to the Senior Lender a Default Notice within five Business Days in each case where the <br />Subordinate Lender has given a Default Notice to the Borrower. Failure of the Subordinate <br />Lender to send a Default Notice to the Senior Lender shall not prevent the exercise of the <br />Subordinate Lender's rights and remedies under the Subordinate Loan Documents, subject to the <br />provisions of this Agreement. The Senior Lender shall have the right, but not the obligation, to <br />cure any Subordinate Loan Default within 60 days following the date of such notice. All amounts <br />paid by the Senior Lender in accordance with the Senior Loan Documents to cure a Subordinate <br />Loan Default shall be deemed to have been advanced by the Senior Lender pursuant to, and shall <br />be secured by the lien of, the Senior Security Instrument. <br />(b) Subordinate Lender's Exercise of Remedies After Notice to Senior <br />Lender. If a Subordinate Loan Default occurs and is continuing, the Subordinate Lender agrees <br />that, without the Senior Lender's prior written consent, it will not commence foreclosure <br />proceedings with respect to the 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, collecting rents, appointing (or seeking the <br />appointment of) a receiver or exercising any other rights or remedies thereunder, unless and until <br />it has given the Senior Lender at least 60 days' prior written notice; during such 60 day period, <br />however, the Subordinate Lender shall be entitled to exercise and enforce all other rights and <br />remedies available to the Subordinate Lender under the Subordinate Loan Documents and/or <br />under applicable laws, including without limitation, rights to enforce covenants and agreements <br />of the Borrower relating to income, rent, or affordability restrictions contained in the Covenants. <br />(c) Cross Default. The Borrower and the Subordinate Lender agree that a <br />Subordinate Loan Default shall constitute a Senior Loan Default under the Senior Loan <br />Documents and the Senior Lender shall have the right to exercise all rights or remedies under the <br />Senior Loan Documents in the same manner as in the case of any other Senior Loan Default. If <br />the Subordinate Lender notifies the Senior Lender in writing that any Subordinate Loan Default <br />of which the Senior Lender has received a Default Notice has been cured or waived, as <br />determined by the Subordinate Lender in its sole discretion, then, provided that Senior Lender <br />has not conducted a sale of the Property pursuant to its rights under the Senior Loan Documents, <br />any Senior Loan Default under the Senior Loan Documents arising solely from such Subordinate <br />Loan Default shall be deemed cured, and the Senior Loan shall be reinstated, provided, however, <br />that the Senior Lender shall not be required to return or otherwise credit for the benefit of the <br />Borrower any default rate interest or other default related charges or payments received by the <br />Senior Lender during such Senior Loan Default. <br />6. Default Under Senior Loan Documents. <br />(a) Notice of Default and Cure Rights. The Senior Lender shall deliver to <br />the Subordinate Lender a Default Notice within five Business Days in each case where the <br />Subordination Agreement 7 Hallmark House Apartments <br />Description: San Mateo,CA Document — Year.DoclD 2020.39722 Page: 9 of 24 <br />Order: eeee Comment: <br />