GUARANTY OF RECOURSE OBLIGATIONS OF BORROWER

 

Springfield, Illinois

__________ ____, 20__

 

**FOR VALUE RECEIVED**, and to induce LEHMAN BROTHERS BANK, FSB, a federal stock savings bank, having its principal place of business at c/o Lehman Brothers, Inc., I000 West Street, Wilmington, Delaware 19801, Attention: John Herman (“Lender”), to lend to EVEREST HICKORY GLEN, LP, a Kansas limited partnership, having its principal place of business at c/o Everest Properties, 199 South Los Robles Avenue, Suite 200, Pasadena, California 91101 (“Borrower”), the principal sum of Nine Million and 00/100 Dollars ($9,000,000.00) (the “Loan”), evidenced by that certain promissory note in the original principal amount of Nine Million and 00/100 Dollars ($9,000,000.00) (the “Note”) and secured by the Security Instrument (as defined in the Note) and by certain other Loan Documents (as defined in the Note), the undersigned, SECUREDINVESTMENT RESOURCES FUND, LP II, a Delaware limited partnership having an address at c/o Everest Properties, 199 South Los Robles Avenue, Suite 200, Pasadena, California 91 101 (hereinafter referred to as “Guarantor”) hereby absolutely and unconditionally guarantees to Lender the prompt and unconditional payment of the Guaranteed Recourse Obligations of Borrower (hereinafter defined). Capitalized terms used herein and not specifically defined herein shall have the respective meanings ascribed to those terms in the Security Instrument.

 

It is expressly understood and agreed that this is a continuing guaranty and that the obligations of Guarantor hereunder are and shall be absolute under any and all circumstances, without regard to the validity, regularity or enforceability of the Note, the Security Instrument, or the other Loan Documents, a true copy of each of said documents Guarantor hereby acknowledges having received and reviewed.

 

The term “Debt,” as used in this Guaranty, shall mean the principal sum evidenced by the Note and secured by the Security Instrument, or so much thereof as may be outstanding from time to time, together with interest thereon at the rate of interest specified in the Note and all other sums other than principal or interest which may or shall become due and payable pursuant to the provisions of the Note, the Security Instrument or the other Loan Documents.

 

The term “Guaranteed Recourse Obligations of Borrower,” as used in this Guaranty, shall mean all obligations and liabilities of Borrower set forth in subparagraphs (a) and (b) below for which Borrower shall be personally liable pursuant to the Note, the Security Instrument or the other Loan Documents:

 

(a)    any and all Losses (as hereinafter defined) imposed upon or incurred by or asserted against Lender and directly or indirectly arising out of or in connection with any of the following: (i) fraud or intentional misrepresentation by Borrower, its agents or principals, (ii) Borrower’s misapplication or misappropriation of (A) Rents received by Borrower after the occurrence of an Event of Default, (B) tenant security deposits or Rents collected in advance, or (C) insurance proceeds or condemnation awards, (iii) Borrower’s failure to pay Taxes, Insurance Premiums, Other Charges (except to the extent that sums sufficient to pay such amounts have been deposited in escrow with Lender pursuant to the terms of the 

 

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