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RecD08 2008-042417
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RecD08 2008-042417
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Last modified
8/14/2008 10:45:41 AM
Creation date
8/14/2008 10:45:40 AM
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Recorded Docs
Recorded Docs - Type
Agreement
Subject
Hallmark Apartments KDF Hallmark, L.P.
Doc Num
2008-042417
Rec Date
4/16/2008
Parties
KDF Hallmark
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<br />the Subordination Agreement. Each subsequent holder of this Note shall be deemed, by <br />virtue of such holder's acquisition of the Note, to have agreed to perform and observe all <br />of the terms, covenants and conditions to be performed or observed by the Subordinate <br />Lender under the Subordination Agreement." <br /> <br />(b) Reserved. <br /> <br />(c) Reserved. <br /> <br />(d) Subordinate Loan Documents. Borrower has delivered to Swap <br />Provider an executed copy of each of the Subordinate Loan Documents, certified to be true, <br />correct and complete. <br /> <br />(e) Senior Documents. Upon execution and delivery of the Senior <br />Documents, Borrower shall deliver to Subordinate Lender an executed copy of each of the <br />Senior Documents, certified to be true, correct and complete. <br /> <br />4. Terms of Subordination. <br /> <br />(a) Agreement to Subordinate. The Swap Provider 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 Documents, <br />and (ii) the Subordinate Security Instrument and the other Subordinate Loan Documents are and <br />shall be subject and subordinate in all respects to the liens, terms, covenants and conditions of <br />the Senior Security Instrument and the other Senior Documents and to all advances heretofore <br />made or which may hereafter be made pursuant to the Senior Security Instrument and the other <br />Senior Documents (including but not limited to, all sum,s advanced for the purposes of (1) <br />protecting or further securing the lien of the Senior Security Instrument, curing defaults by the <br />Borrower under the Senior Documents or for any other purpose expressly permitted by the <br />Senior Security Instrument, or (2) constructing, renovating, repairing, furnishing, fixturing or <br />equipping the Property). <br /> <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 for <br />this subsection) would be senior to the lien of the Senior Security Instrument, then, in that event, <br />such lien shall be subject and subordinate to the lien ofthe Senior Security Instrument. <br /> <br />(c) Payments Before Senior Default. Until the Subordinate Lender receives <br />a Default Notice of a Senior Default from the Swap Provider, the Subordinate Lender shall be <br />entitled to retain for its own account all payments made under or pursuant to the Subordinate <br />Loan Documents. <br /> <br />(d) Payments After Senior Default. The Borrower agrees that, after it <br />receives notice (or otherwise acquires knowledge) of a Senior Default, it will not make any <br />payments under or pursuant to the Subordinate Loan Documents (including but not limited to <br />principal, interest, additional interest, late payment charges, default interest, attorney's fees, or <br /> <br />4 <br />
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