Document:

a103assignmentofmgmtagmt

                                                                          EXHIBIT 10.3                   ASSIGNMENT OF MANAGEMENT AGREEMENT         This ASSIGNMENT OF MANAGEMENT AGREEMENT (this "Assignment") dated as  of September 20, 2019 is executed by and among (i) SIR JEFFERSON, LLC, a Delaware limited  liability company ("Borrower"), (ii) JONES LANG LASALLE MULTIFAMILY,    LLC, a  Delaware limited liability company ("Lender"), and (iii) STEADFAST MANAGEMENT  COMPANY, INC., a California corporation ("Manager").                                     RECITALS:         A.    Borrower is the owner of a multifamily residential apartment project known as  Jefferson at Perimeter Apartments, 4867 Ashford Dunwoody Road, Atlanta, Georgia 30338 (the  "Mortgaged Property").         B.    Manager is the managing agent of the Mortgaged Property pursuant to a  Management Agreement dated as of June 11, 2018, and amended on August 1, 2018 and May  1, 2019, between Borrower and Manager (the "Management Agreement").         C.    Pursuant to that certain Multifamily Loan and Security Agreement dated as of the  date hereof, executed by and between Borrower and Lender (as amended, restated, replaced,  supplemented or otherwise modified from time to time, the "Loan Agreement"), Lender has  agreed to make a loan to Borrower in the original principal amount of $73,800,000.00 (the  "Mortgage Loan"), as evidenced by that certain Multifamily Note dated as of the date hereof,  executed by Borrower and made payable to the order of Lender in the amount of the Mortgage  Loan ( as amended, restated, replaced, supplemented or otherwise modified from time to time, the  "Note").         D.    In addition to the Loan Agreement, the Mortgage Loan and the Note are also  secured by, among other things, a certain Multifamily Mortgage, Deed of Trust or Deed to Secure  Debt dated as of the date hereof, which encumbers the Mortgaged Property (as amended, restated,  replaced, supplemented or otherwise modified from time to time, the "Security Instrument"; the  Loan Agreement, the Note, the Security Instrument, and all other documents evidencing or  securing the Mortgage Loan, the "Loan Documents").               Borrower is willing to assign its rights under the Management Agreement to Lender  as additional security for the Mortgage Loan.         F.    Manager is willing to consent to this Assignment and to attom to Lender upon  receipt of notice of the occurrence of an Event of Default (as hereinafter defined) by Borrower  under the Loan Documents, and perform its obligations under the Management Agreement for  Lender, or its successors in interest, or to permit Lender to terminate the Management Agreement  without liability.         NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of  which are hereby acknowledged, and intending to be legally bound, Borrower, Lender and  Manager agree as follows:   Assignment of Management Agreement    Form 6405                          Page 1  Fannie Mae                              12-17                   © 2017 Fannie Mae  

 

                                 AGREEMENTS:    Section 1.  Recitals.          The recitals set forth above are incorporated herein by reference as if fully set forth in the   body of this Assignment.    Section 2.  Assignment.          Borrower hereby transfers, assigns and sets over to Lender, its successors and assigns, all   right, title and interest of Borrower in and to the Management Agreement. Manager hereby   consents to the foregoing assignment. The foregoing assignment is being made by Borrower to   Lender as collateral security for the full payment and performance by Borrower of all of its   obligations under the Loan Documents. Although it is the intention of the parties that the   assignment hereunder is a present assignment, until the occurrence of any default or failure to   perform or observe any obligation, condition, covenant, term, agreement or provision required to   be performed or observed by Borrower or any other party under any of the Loan Documents   beyond any applicable grace or cure period provided for therein ( an "Event of Default"), Borrower   may exercise all rights as owner of the Mortgaged Property under the Management Agreement,   except as otherwise provided in this Assignment. The foregoing assignment shall remain in effect   as long as the Mortgage Loan, or any part thereof, remains unpaid, but shall automatically  terminate upon the release of the Security Instrument as a lien on the Mortgaged Property.    Section 3.  Representations and Warranties.          Borrower and Manager represent and warrant to Lender that (a) the Management   Agreement is unmodified and is in full force and effect, (b) the Management Agreement is a valid   and binding agreement enforceable against the parties in accordance with its terms, and ( c) neither   party is in default in performing any of its obligations under the Management Agreement.   Borrower further represents and warrants to Lender that it has not executed any prior assignment   of the Management Agreement that remains in effect as of the date hereof, nor has it performed   any acts or executed any other instrument which might prevent Lender from operating under any   of the terms and conditions of this Assignment, or which would limit Lender in such operation.   Manager further represents and warrants to Lender that (1) Manager has not assigned its interest   in the Management Agreement pursuant to any assignment remaining in effect as of the date  hereof, (2) Manager has no notice of any prior assignment, hypothecation or pledge of Borrower's   interest under the Management Agreement that remains in effect as of the date hereof, (3) as of the   date hereof, Manager has no counterclaim, right of set-off, defense or like right against Borrower,   and ( 4) as of the date hereof, Manager has been paid all amounts due under the Management  Agreement.    Section 4.  Lender's Right to Cure.          In the event of any default by Borrower under the Management Agreement, Lender shall  have the right, but not the obligation, upon notice to Borrower and Manager and until such default   is cured, to cure any default and take any action under the Management Agreement to preserve the    Assignment of Management Agreement    Form 6405                          Page2   Fannie Mae                               12-17                  © 2017 Fannie Mae  

 

same. Borrower hereby grants to Lender the right of access to the Mortgaged Property for this  purpose, if such action is necessary. Borrower hereby authorizes Manager to accept the  performance of Lender in such event, without question. Any advances made by Lender to cure a  default by Borrower under the Management Agreement shall become part of the indebtedness and  shall bear interest at the Default Rate under the Loan Agreement and shall be secured by the  Security Instrument.   Section 5.  Covenants.         (a)   Borrower Covenants.         Borrower hereby covenants with Lender that, during the term of this Assignment:               (1)   Borrower shall not assign Borrower's interest in the Management        Agreement or any portion thereof, or transfer the responsibility for management of the        Mortgaged Property from Manager to any other person or entity without the prior written        consent of Lender;               (2)   Borrower shall not cancel, terminate, surrender, modify or amend any of the        terms or provisions of the Management Agreement without the prior written consent of        Lender;               (3)   Borrower shall not forgive any material obligation of the Manager or any        other party under the Management Agreement, without the prior written consent of Lender;               (4)   Borrower shall perform all obligations of Borrower under the Management        Agreement in accordance with the provisions thereof, any failure of which would constitute        a default under the Management Agreement; and               (5)   Borrower shall give Lender written notice of any notice or information that        Borrower receives which indicates that Manager is terminating the Management        Agreement or that Manager is otherwise discontinuing its management of the Mortgaged        Property.         Subject to Section 14.0l(c) of the Loan Agreement, any of the foregoing acts described in  subsections (1), (2) and (3) of this Section 5(a) done or suffered to be done without Lender's prior  written consent shall constitute an Event of Default.         (b)   Affiliated Manager Subordination.         Manager agrees that:               (1)   (A) any fees payable to Manager pursuant to the Management Agreement        are and shall be subordinated in right of payment, to the extent and in the manner provided        in this Assignment, to the prior payment in full of the indebtedness described in the Loan        Agreement, and (B) the Management Agreement is and shall be subject and subordinate in        all respects to the liens, terms, covenants and conditions of the Security Instrument and the   Assignment of Management Agreement    Form 6405                          Page3  Fannie Mae                              12-17                   © 2017 Fannie Mae  

 

      other Loan Documents and to all advances heretofore made or which may hereafter be        made pursuant to the Loan Documents (including all sums advanced for the purposes of        (i) protecting or further securing the lien of the Security Instrument, curing Events of        Default by Borrower under the Loan Documents or for any other purposes expressly        permitted by the Loan Documents, or (ii) constructing, renovating, repairing, furnishing,        fixturing or equipping the Mortgaged Property);               (2)   if, by reason of its exercise of any other right or remedy under the        Management Agreement, Manager acquires by right of subrogation or otherwise a lien on        the Mortgaged Property which (but for this Section 5(b)) would be senior to the lien of the        Security Instrument, then, in that event, such lien shall be subject and subordinate to the        lien of the Security Instrument;               (3)   until Manager receives notice (or otherwise acquires actual knowledge) of        an Event of Default, Manager shall be entitled to retain for its own account all payments        made under or pursuant to the Management Agreement;               (4)   after Manager receives notice (or otherwise acquires actual knowledge) of        an Event of Default, it will not accept any payment of fees under or pursuant to the        Management Agreement without Lender's prior written consent;               (5)   if, after Manager receives notice (or otherwise acquires actual knowledge)        of an Event of Default, Manager receives any payment of fees under the Management        Agreement, or if Manager receives any other payment or distribution of any kind from        Borrower or from any other person or entity in connection with the Management        Agreement which Manager is not permitted by this Assignment to retain for its own        account, such payment or other distribution will be received and held in trust for Lender        and unless Lender otherwise notifies Manager, will be promptly remitted, in cash or readily        available funds, to Lender, properly endorsed to Lender, to be applied to the principal of,        interest on and other amounts due under the Loan Documents evidencing and securing the        Mortgage Loan in such order and in such manner as Lender shall determine in its sole and        absolute discretion. Manager hereby irrevocably designates, makes, constitutes and        appoints Lender (and all persons or entities designated by Lender) as Manager's true and        lawful attorney in fact with power to endorse the name of Manager upon any checks        representing payments referred to in this Section 5(b ), which power of attorney is coupled        with an interest and cannot be revoked, modified or amended without the written consent        of Lender;               (6)   Manager shall notify (via telephone or email, followed by written notice)        Lender of Manager's receipt from any person or entity other than Borrower of a payment        with respect to Borrower's obligations under the Loan Documents, promptly after Manager        obtains knowledge of such payment; and               (7)   during the term of this Assignment, Manager will not commence or join        with any other creditor in commencing any bankruptcy, reorganization, arrangement,    Assignment of Management Agreement    Form 6405                          Page4  Fannie Mae                               12-17                  © 2017 Fannie Mae  

 

      insolvency or liquidation proceedings with respect to Borrower,  without Lender's prior        written consent.   Section 6.  Lender's Rights Upon an Event of Default.         (a)   Upon receipt by Manager of written notice from Lender that an Event of Default  has occurred and is continuing, Lender shall have the right to exercise all rights as owner of the  Mortgaged Property under the Management Agreement.         (b)   Borrower agrees that after Borrower receives notice (or otherwise has actual  knowledge) of an Event of Default, it will not make any payment of fees under or pursuant to the  Management Agreement without Lender's prior written consent.   Section 7.  Termination of Management Agreement.         After the occurrence and during the continuance of an Event of Default, Lender (or  its  nominee) shall have the right any time thereafter to terminate the Management Agreement, without  cause and without liability, by giving written notice to Manager of its election to do so. Lender's  notice shall specify the date of termination, which shall not be less than thirty (30) days after the  date of such notice.   Section 8.  Books and Records.         On the effective date of termination of the Management Agreement, Manager shall tum  over to Lender all books and records relating to the Mortgaged Property (copies  of which may be  retained by Manager, at Manager's expense), together with such authorizations and letters of  direction addressed to tenants, suppliers, employees, banks and other parties as Lender may  reasonably require. Manager shall cooperate with Lender in the transfer of management  responsibilities to Lender or its designee. A final accounting of unpaid fees (if any) due to Manager  under the Management Agreement shall be made within sixty (60) days after the effective date of  termination, but Lender shall not have any liability or obligation to Manager for unpaid fees or  other amounts payable under the Management Agreement which accrue before Lender (or  its  nominee) acquires title to the Mortgaged Property, or Lender becomes a mortgagee in possession.   Section 9.  Notice.         (a)   Process of Serving Notice.         All notices under this Assignment shall be:               (1)   in writing and shall be:                     (A)   delivered, in person;    Assignment of Management Agreement    Form 6405                          PageS  Fannie Mae                               12-17                  © 2017 Fannie Mae  

 

                  (B)   mailed, postage prepaid, either by registered or certified delivery,              return receipt requested;                     (C)   sent by overnight courier; or                     (D)   sent by electronic mail with originals to follow by overnight courier;               (2)   addressed to the intended recipient at its respective address set forth at the        end of this Assignment; and               (3)   deemed given on the earlier to occur of:                     (A)   the date when the notice is received by the addressee; or                     (B)   if the recipient refuses or rejects delivery, the date on which the              notice is so refused or rejected, as conclusively established by the records of the              United States Postal Service or any express courier service.         (b)   Change of Address.         Any party to this Assignment may change the address to which notices intended for it are  to be directed by means of notice given to the other parties to this Assignment in accordance with  this Section 9.         (c)   Default Method of Notice.         Any required notice under this Assignment which does not specify how notices are to be  given shall be given in accordance with this Section 9.         ( d)  Receipt of Notices.         Borrower, Manager and Lender shall not refuse or reject delivery of any notice given in  accordance with this Assignment. Each party is required to acknowledge, in writing, the receipt  of any notice upon request by the other party.   Section 10. Counterparts.         This Assignment may be executed in any number of counterparts, each of which shall be  considered an original for all purposes; provided, however, that all such counterparts shall  constitute one and the same instrument.   Section 11. Governing Law; Venue and Consent to Jurisdiction; Waiver of Jury Trial.         (a)   Governing Law.         This Assignment shall be governed by the laws of the jurisdiction in which the Mortgaged  Property is located (the "Property Jurisdiction"), without regard to the application of choice of  law principles.   Assignment of Management Agreement    Form 6405                           Page 6  Fannie Mae                               12-17                  © 2017 Fannie Mae  

 

      (b)   Venue; Consent to Jurisdiction.         Any controversy arising under or in relation to this Assignment shall be litigated  exclusively in the Property Jurisdiction without regard to conflicts of laws principles. The state  and federal courts and authorities with jurisdiction in the Property Jurisdiction shall have exclusive  jurisdiction over all controversies which shall arise under or in relation to this Assignment.  Borrower irrevocably consents to service, jurisdiction and venue of such courts for any such  litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual  residence or otherwise.         (c)   WAIVER OF TRIAL BY JURY.         TO THE  MAXIMUM     EXTENT  PERMITTED   BY  APPLICABLE   LAW,  EACH   OF  BORROWER, LENDER, AND MANAGER (i) COVENANTS AND AGREES NOT TO ELECT  A  TRIAL  BY  JURY   WITH   RESPECT   TO  ANY   ISSUE  ARISING  OUT   OF  THIS  ASSIGNMENT,   OR  THE  RELATIONSHIP   BETWEEN    THE  PARTIES  AS BORROWER,  LENDER, AND MANAGER, THAT IS     TRIABLE OF RIGHT BY A JURY, AND (ii) WAIVES  ANY  RIGHT  TO TRIAL  BY JURY  WITH  RESPECT   TO SUCH  ISSUE TO  THE EXTENT  THAT ANY SUCH RIGHT EXISTS NOW OR IN      THE FUTURE.  THIS WAIVER OF RIGHT  TO TRIAL  BY  JURY IS SEPARATELY    GIVEN  BY EACH   PARTY, KNOWINGLY     AND  VOLUNTARILY, WITH THE BENEFIT OF     COMPETENT LEGAL COUNSEL.   Section 12. Severability; Amendments.         The invalidity or unenforceability of any provision of this Assignment shall not affect the  validity or enforceability of any other provision of this Assignment, all of which shall remain in  full force and effect. This Assignment contains the complete and entire agreement among the  parties as to the matters covered, rights granted and the obligations assumed in this Assignment.  This Assignment may not be amended or modified except by written agreement signed by the  parties hereto.   Section 13. Construction.         ( a)  The captions and headings of the sections of this Assignment are for convenience  only and shall be disregarded in construing this Assignment.         (b)   Any reference in this Assignment to an "Exhibit" or "Schedule" or a "Section" or  an "Article" shall, unless otherwise explicitly provided, be construed as referring, respectively, to  an exhibit or schedule attached to this Assignment or to a Section or Article of this Assignment.  All exhibits and schedules attached to or referred to in this Assignment, if any, are incorporated  by reference into this Assignment.         (c)   Any reference in this Assignment to a statute or regulation shall be construed as  referring to that statute or regulation as amended from time to time.         (d)   Use of the singular in this Assignment includes the plural and use of the plural  includes the singular.   Assignment of Management Agreement     Form 6405                          Page 7  Fannie Mae                               12-17                  © 2017 Fannie Mae  

 

      (e)   As used in this Assignment, the term "including" means "including, but not limited  to" or "including, without limitation," and is for example only and not a limitation.         (f)   Whenever Borrower's knowledge is implicated in this Assignment or the phrase  "to Borrower's knowledge" or a similar phrase is used in this Assignment, Borrower's knowledge  or such phrase(s) shall be interpreted to mean to the best of Borrower's knowledge after reasonable  and diligent inquiry and investigation.         (g)   Unless otherwise provided in this Assignment, if Lender's approval, designation,  determination, selection, estimate, action or decision is required, permitted or contemplated  hereunder, such approval, designation, determination, selection, estimate, action or decision shall  be made in Lender's sole and absolute discretion.         (h)   All references in this Assignment to a separate instrument or agreement shall  include such instrument or agreement as the same may be amended or supplemented from time to  time pursuant to the applicable provisions thereof.         (i)   "Lender may" shall mean at Lender's discretion, but shall not be an obligation.                        [Remainder of Page Intentionally Blank]    Assignment of Management Agreement    Form 6405                          Page 8  Fannie Mae                              12-17                   © 2017 Fannie Mae  

 

      IN WITNESS WHEREOF, Borrower,    Lender and Manager have signed and delivered  this Assignment under seal (where applicable) or have caused this Assignment to be signed and  delivered under seal (where applicable), each by its duly authorized representative. Where  applicable law so provides, Borrower, Lender and Manager intend that this Assignment shall be  deemed to be signed and delivered as a sealed instrument.                             BORROWER:                             SIR JEFFERSON, LLC,                            a Delaware limited liability company                             By:  STEADFAST INCOME ADVISOR, LLC,                                  a Delaware limited liability company,                                  Its Manager                              Address:   18100 Von Karman Ave. Suite 500                                       Irvine. Ca 92612                                       Attn: Kevin J. Keatinl.!.                                             Ana Marie del Rio                     [SIGNATURES CONTINUE ON NEXT PAGE]     Assignment of Management Agreement   Form 6405                       Page S-1   Fannie Mae                             12-17                  © 2017 Fannie Mae  

 

                            LENDER:                               JONES LANG LASALLE MULTIFAMILY,                              LLC, a Delaware limited liability company                               By: ___Q~~=="S\--::::-=~"""'..d...,,_~::::__:::::::=~_.1.!(S~E~Ac!:.1.L}                               Name:       Rhonda D. Peare                              Title:      Closing Coordinator                               Address:    2177 Youngman A venue                                          St. Paul, Minnesota 55116                        [SIGNATURES CONTINUE ON NEXT PAGE]    Assignment of Management Agreement       Form 6405                          Page S-2  Fannie Mae                                 12-17                    © 2017 Fannie Mae  

 

                         MANAGER:                            STEADFAST MANAGEMENT COMPANY, INC., a                             Address:   18100 Von Kannan Avenue, Suite 500                                      Irvine. CA 92612    Assignment of Management Agreement   Form 6405                       Page S-3  Fannie Mae                             12-17                  © 2017 Fannie Maea104guaranty

                                                                          EXHIBIT 10.4                   GUARANTY OF NON-RECOURSE OBLIGATIONS         This GUARANTY OF   NON-RECOURSE OBLIGATIONS       (this "Guaranty"), dated as  of September 20, 2019, is executed by the undersigned ("Guarantor"), to and for the benefit of  JONES  LANG   LASALLE    MULTIFAMILY,    LLC,  a Delaware limited liability company  ("Lender").                                     RECITALS:         A.    Pursuant to that certain Multifamily Loan and Security Agreement dated as of the  date hereof, by and between SIR JEFFERSON, LLC, a Delaware limited liability company  ("Borrower") and Lender (as amended, restated, replaced, supplemented or otherwise modified  from time to time, the "Loan Agreement"), Lender is making a loan to Borrower in the original  principal amount of SEVENTY-THREE MILLION EIGHT HUNDRED THOUSAND AND  N0/100 DOLLARS    ($73,800,000.00) (the "Mortgage Loan"), as evidenced by that certain  Multifamily Note dated as of the date hereof, executed by Borrower and made payable to the order  of Lender in the amount of the Mortgage Loan (as amended, restated, replaced, supplemented or  otherwise modified from time to time, the "Note").         B.    The Note will be secured by, among other things, a Security Instrument (as defined  in the Loan Agreement) encumbering the real property described in the Security Instrument (the  "Property").         C.    Guarantor has an economic interest in Borrower or will otherwise obtain a material  financial benefit from the Mortgage Loan.         D.    As a condition to making the Mortgage Loan to Borrower, Lender requires that  Guarantor execute this Guaranty.         NOW, THEREFORE, in order to induce Lender to make the Mortgage Loan to Borrower,  and in consideration thereof, Guarantor agrees as follows:                                  AGREEMENTS:   1.    Recitals.         The recitals set forth above are incorporated herein by reference as if fully set forth in the  body of this Guaranty.   2.    Defined Terms.         Capitalized terms used and not specifically defined herein have the meanings given to such  terms in the Loan Agreement.     Guaranty of Non-Recourse Obligations  Form 6015                          Page 1   Fannie Mae                              06-19                   © 2019 Fannie Mae  

 

3.    Guaranteed Obligations.         Guarantor hereby absolutely, unconditionally and irrevocably guarantees to Lender the full  and prompt payment and performance when due, whether at maturity or earlier, by reason of  acceleration or otherwise, and at all times thereafter, of:         (a)   all amounts, obligations and liabilities owed to Lender under Article 3 (Personal  Liability) of the Loan Agreement (including the payment and performance of all indemnity  obligations of Borrower described in Section 3.03 (Personal Liability for Indemnity Obligations)  of the Loan Agreement and including all of Borrower's obligations under the Environmental  Indemnity Agreement); and         (b)   all costs and expenses, including reasonable fees and out-of-pocket expenses of  attorneys and expert witnesses, incurred by Lender in enforcing its rights under this Guaranty.   4.    Survival of Guaranteed Obligations.         The obligations of Guarantor under this Guaranty shall survive any Foreclosure Event, and  any recorded release or reconveyance of the Security Instrument or any release of any other  security for any of the Indebtedness.   5.    Guaranty of Payment; Community Property.         Guarantor's obligations under this Guaranty constitute a present and unconditional  guaranty of payment and not merely a guaranty of collection. If Guarantor (or  any Guarantor, if  more than one) is a married person, and the state ofresidence of Guarantor or Guarantor's spouse  is a community property jurisdiction, Guarantor ( or each such married Guarantor, if more than  one) agrees that Lender may satisfy Guarantor's obligations under this Guaranty to the extent of  all Guarantor's separate property and Guarantor's interest in any community property.   6.    Obligations Unsecured; Cross-Default.         The obligations of Guarantor under this Guaranty shall not be secured by the Security  Instrument or the Loan Agreement. However, a default under this Guaranty shall be an Event of  Default under the Loan Agreement, and a default under this Guaranty shall entitle Lender to be  able to exercise all of its rights and remedies under the Loan Agreement and the other Loan  Documents.   7.    Continuing Guaranty.         The obligations of Guarantor under this Guaranty shall be unconditional irrespective of the  genuineness, validity, regularity or enforceability of any provision of this Guaranty, the Note, the  Loan Agreement, the Security Instrument or any other Loan Document. Guarantor agrees that  performance of the obligations hereunder shall be a primary obligation, shall not be subject to any  counterclaim, set-off, recoupment, abatement, deferment or defense based upon any claim that  Guarantor may have against Lender, Borrower, any other guarantor of the obligations hereunder  or any other Person, and shall remain in full force and effect without regard to, and shall not be   Guaranty of Non-Recourse Obligations   Form 6015                          Page 2  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

released, discharged or affected in any way by any circumstance or condition (whether or not  Guarantor shall have any knowledge thereof), including:         (a)   any furnishing, exchange, substitution or release of any collateral securing  repayment of the Mortgage Loan, or any failure to perfect any lien in such collateral;         (b)   any failure, omission or delay on the part of Borrower, Guarantor, any other  guarantor of the obligations hereunder or Lender to conform or comply with any term of any of  the Loan Documents or failure of Lender to give notice of any Event of Default;         (c)   any action or inaction by Lender under or in respect of any of the Loan Documents,  any failure, lack of diligence, omission or delay on the part of Lender to perfect, enforce, assert or  exercise any lien, security interest, right, power or remedy conferred upon it in any of the Loan  Documents, or any other action or inaction on the part of Lender;         (d)   any Bankruptcy Event, or any voluntary or involuntary bankruptcy, insolvency,  reorganization, arrangement, readjustment, assignment for the benefit of creditors, composition,  receivership, liquidation, marshaling of assets and liabilities or similar events or proceedings with  respect to Guarantor or any other guarantor of the obligations hereunder, or any of their respective  property or creditors or any action taken by any trustee or receiver or by any court in such  proceeding;         (e)   any merger or consolidation of Borrower into or with any entity or any sale, lease  or Transfer of any asset of Borrower, Guarantor or any other guarantor of the obligations hereunder  to any other Person;         (f)   any change in the ownership of Borrower or any change in the relationship between  Borrower, Guarantor or any other guarantor of the obligations hereunder, or any termination of  such relationship;         (g)   any release or discharge by operation of law of Borrower, Guarantor or any other  guarantor of the obligations hereunder, or any obligation or agreement contained in any of the  Loan Documents; or         (h)   any other occurrence, circumstance, happening or event, whether similar or  dissimilar to the foregoing, and whether seen or unforeseen, which otherwise might constitute a  legal or equitable defense or discharge of the liabilities of a guarantor or surety or which otherwise  might limit recourse against Borrower or Guarantor to the fullest extent permitted by law.   8.    Guarantor Waivers.         Guarantor hereby waives:         (a)   the benefit of all principles or provisions of law, statutory or otherwise, which are  or might be in conflict with the terms of this Guaranty (and agrees that Guarantor's obligations  shall not be affected by any circumstances, whether or not referred to in this Guaranty, which  might otherwise constitute a legal or equitable discharge of a surety or a guarantor);    Guaranty of Non-Recourse Obligations  Form 6015                          Page3   Fannie Mae                              06-19                   © 2019 Fannie Mae  

 

      (b)   the benefits of any right of discharge under any and all statutes or other laws relating  to guarantors or sureties and any other rights of sureties and guarantors;         ( c)  diligence in collecting the Indebtedness, presentment, demand for payment, protest  and all notices with respect to the Loan Documents and this Guaranty which may be required by  statute, rule oflaw or otherwise to preserve Lender's rights against Guarantor under this Guaranty,  including notice of acceptance, notice of any amendment of the Loan Documents, notice of the  occurrence of any Event of Default, notice of intent to accelerate, notice of acceleration, notice of  dishonor, notice of foreclosure, notice of protest and notice of the incurring by Borrower of any  obligation or indebtedness; and         (d)   all rights to require Lender to:               ( 1)  proceed against or exhaust any collateral held by Lender to secure the        repayment of the Indebtedness;               (2)   proceed against or pursue any remedy it may now or hereafter have against        Borrower or any guarantor, or, if Borrower or any guarantor is a partnership, any general        partner of Borrower or general partner of any guarantor; or               (3)   demand or require collateral security from Borrower, any other guarantor        or any other Person as provided by applicable law or otherwise.   9.    No Effect Upon Obligations.         At any time or from time to time and any number of times, without notice to Guarantor and  without releasing, discharging or affecting the liability of Guarantor:         (a)   the time for payment of the principal of or interest on the Indebtedness may be  extended or the Indebtedness may be renewed in whole or in part;         (b)   the rate of interest on or period of amortization of the Mortgage Loan or the amount  of the Monthly Debt Service Payments payable under the Loan Documents may be modified;         ( c)  the time for Borrower's performance of or compliance with any covenant or  agreement contained in any Loan Document, whether presently existing or hereinafter entered into,  may be extended or such performance or compliance may be waived;         (d)   the maturity of the Indebtedness may be accelerated as provided in the Loan  Documents;         ( e)  any or all payments due under the Loan Agreement or any other Loan Document  may be reduced;         (f)   any Loan Document may be modified or amended by Lender and Borrower in any  respect, including an increase in the principal amount of the Mortgage Loan;     Guaranty of Non-Recourse Obligations  Form 6015                           Page4   Fannie Mae                              06-19                   © 2019 Fannie Mae  

 

      (g)   any amounts under the Loan Agreement or any other Loan Document may be  released;         (h)   any  security for the Indebtedness may be modified, exchanged, released,  surrendered or otherwise dealt with or additional security may be pledged or mortgaged for the  Indebtedness;         (i)   the payment of the Indebtedness or any security for the Indebtedness, or both, may  be subordinated to the right to payment or the security, or both, of any other present or future  creditor of Borrower;         (i)   any payments made by Borrower to Lender may be applied to the Indebtedness in  such priority as Lender may determine in its discretion; and         (k)   any other terms of the Loan Documents may be modified as required by Lender.   10.   Joint and Several (or Solidary) Liability.         If more than one Person executes this Guaranty as Guarantor, such Persons shall be liable  for the obligations hereunder on a joint and several (solidary instead for purposes of Louisiana  law) basis. Lender, in its discretion, may:         (a)   to the extent permitted by applicable law, bring suit against Guarantor, or any one  or more of the Persons constituting Guarantor, and  any other guarantor, jointly and severally  (solidarily instead for purposes of Louisiana law), or against any one or more of them;         (b)   compromise or settle with any one or more of the Persons constituting Guarantor,  or any other guarantor, for such consideration as Lender may deem proper;         (c)   discharge or release one or more of the Persons constituting Guarantor, or any other  guarantor, from liability or agree not to sue such Person; and         (d)   otherwise deal with Guarantor and any guarantor, or any one or more of them, in  any manner, and no such action shall impair the rights of Lender to collect from Guarantor any  amount guaranteed by Guarantor under this Guaranty.   Nothing contained in this Section 10 shall in any way affect or impair the rights or obligations of  Guarantor with respect to any other guarantor.   11.   Subordination of Affiliated Debt.         Any indebtedness of Borrower held by Guarantor now or in the future is and shall be  subordinated to the Indebtedness and any such indebtedness of Borrower shall be collected,  enforced and received by Guarantor, as trustee for Lender, but without reducing or affecting in any  manner the liability of Guarantor under the other provisions of this Guaranty.     Guaranty of Non-Recourse Obligations  Form 6015                           Page 5   Fannie Mae                              06-19                    © 2019 Fannie Mae  

 

12.   Subrogation.         Guarantor shall have no right of, and hereby waives any claim for, subrogation or  reimbursement against Borrower or any general partner of Borrower by reason of any payment by  Guarantor under this Guaranty, whether such right or claim arises at law or in equity or under any  contract or statute, until the Indebtedness has been paid in full and there has expired the maximum  possible period thereafter during which any payment made by Borrower to Lender with respect to  the Indebtedness could be deemed a preference under the Insolvency Laws.   13.   Voidable Transfer.         If any payment by Borrower is held to constitute a preference under any Insolvency Laws  or similar laws, or if for any other reason Lender is required to refund any sums to Borrower, such  refund shall not constitute a release of any liability of Guarantor under this Guaranty. It is the  intention of Lender and Guarantor that Guarantor's obligations under this Guaranty shall not be  discharged except by Guarantor's performance of such obligations and then only to the extent of  such performance. If any payment by any Guarantor should for any reason subsequently be  declared to be void or voidable under any state or federal law relating to creditors' rights, including  provisions of the Insolvency Laws relating to a Voidable Transfer, and if Lender is required to  repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the advice  of its counsel, then the obligations guaranteed hereunder shall automatically be revived, reinstated  and restored by the amount of such Voidable Transfer or the amount of such Voidable Transfer  that Lender is required or elects to repay or restore, including all reasonable costs, expenses and  legal fees incurred by Lender in connection therewith, and shall exist as though such Voidable  Transfer had never been made, and  any other guarantor, if any, shall remain liable for such  obligations in full.   14.   Credit Report/Credit Score.         Guarantor acknowledges and agrees that Lender is authorized, no more frequently than  once in any twelve (12) month period, to obtain a credit report (if applicable) on Guarantor, the  cost of which shall be paid for by Guarantor. Guarantor acknowledges and agrees that Lender is  authorized to obtain a Credit Score (if applicable) for Guarantor at any time at Lender's expense.   15.   Financial Reporting.         Guarantor shall deliver to Lender such Guarantor financial statements as required by  Section 8.02 (Books and Records; Financial Reporting- Covenants) of the Loan Agreement.   16.   Further Assurances.         Guarantor acknowledges that Lender (including its successors and assigns) may sell or  transfer the Mortgage Loan, or any interest in the Mortgage Loan.     Guaranty of Non-Recourse Obligations  Form 6015                           Page 6   Fannie Mae                              06-19                   © 2019 Fannie Mae  

 

      (a)   Guarantor shall, subject to Section 16(b) below:               (1)   do anything necessary to comply with the reasonable requirements of        Lender or any Investor of the Mortgage Loan or provide, or cause to be provided, to Lender        or any Investor of the Mortgage Loan within ten (10) days of the request, at Borrower's        and Guarantor's cost and expense, such further documentation or information as Lender or        Investor may reasonably require, in order to enable:                     (A)   Lender to sell the Mortgage Loan to such Investor;                     (B)   Lender to obtain a refund of any commitment fee from any such              Investor; or                     (C)   any such Investor to further sell or securitize the Mortgage Loan;               (2)   confirm that Guarantor is not in default under this Guaranty or in observing        any of the covenants or agreements contained in this Guaranty ( or, if Guarantor is in        default, describing such default in reasonable detail); and               (3)   execute and deliver to Lender or any Investor such other documentation,        including any amendments, corrections, deletions or additions to this Guaranty as is        reasonably required by Lender or such Investor.         (b)   Nothing in this Section 16 shall require Guarantor to do any further act that has the  effect of:               (1)   changing the essential economic terms of the Mortgage Loan set forth in the        related commitment letter between Borrower and Lender;               (2)   imposing on Borrower or Guarantor greater personal liability under the        Loan Documents than that set forth in the related commitment letter between Borrower and        Lender; or               (3)   materially changing the rights and obligations of Borrower or Guarantor        under the commitment letter.   17.   Successors and Assigns.         Lender may assign its rights under this Guaranty in whole or in part and, upon any such  assignment, all the terms and provisions of this Guaranty shall inure to the benefit of such assignee  to the extent so assigned. Guarantor may not assign its rights, duties or obligations under this  Guaranty, in whole or in part, without Lender's prior written consent and any such assignment  shall be deemed void ab initio. The terms used to designate any of the parties herein shall be  deemed to include the heirs, legal representatives, successors and assigns of such parties.     Guaranty of Non-Recourse Obligations  Form 6015                          Page 7   Fannie Mae                              06-19                   © 2019 Fannie Mae  

 

18.   Final Agreement.         Guarantor acknowledges receipt of a copy of each of the Loan Documents and this  Guaranty. THIS GUARANTY    REPRESENTS   THE FINAL  AGREEMENT    BETWEEN   THE  PARTIES  WITH  RESPECT   TO THE  SUBJECT  MATTER   HEREOF   AND  MAY   NOT  BE  CONTRADICTED BY     EVIDENCE OF   PRIOR, CONTEMPORANEOUS      OR SUBSEQUENT  ORAL AGREEMENTS.     THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN  THE PARTIES.  All prior or contemporaneous agreements, understandings, representations and  statements, oral or written, are merged into this Guaranty. Neither this Guaranty nor any of its  provisions may be waived, modified, amended, discharged or terminated except by an agreement  in writing signed by the party against which the enforcement of the waiver, modification,  amendment, discharge or termination is sought, and then only to the extent set forth in that  agreement.   19.   Governing Law.         This Guaranty shall be governed by and construed in accordance with the substantive law  of the Property Jurisdiction without regard to the application of choice of law principles that would  result in the application of the laws of another jurisdiction.   20.   Property Jurisdiction.         Guarantor agrees that any controversy arising under or in relation to this Guaranty shall be  litigated exclusively in the Property Jurisdiction. The state and federal courts and authorities with  jurisdiction in the Property Jurisdiction shall have exclusive jurisdiction over all controversies  which shall arise under or in relation to this Guaranty or any other Loan Document with respect to  the subject matter hereof. Guarantor irrevocably consents to service, jurisdiction and venue of  such courts for any such litigation and waives any other venue to which it might be entitled by  virtue of domicile, habitual residence or otherwise.   21.   Time is of the Essence.         Guarantor agrees that, with respect to each and every obligation and covenant contained in  this Guaranty, time is of the essence.   22.   No Reliance.         Guarantor acknowledges, represents and warrants that:         (a)   it understands the nature and structure of the transactions contemplated by this  Guaranty and the other Loan Documents;         (b)   it is familiar with the provisions of all of the documents and instruments relating to  such transactions;         (c)   it understands the risks inherent in such transactions, including the risk of loss of  all or any part of the Mortgaged Property or of the assets of Guarantor;    Guaranty of Non-Recourse Obligations  Form 6015                          Page 8   Fannie Mae                              06-19                   © 2019 Fannie Mae  

 

      (d)   it has had the opportunity to consult counsel; and         ( e)  it has not relied on Lender for any guidance or expertise in analyzing the financial  or other consequences of the transactions contemplated by this Guaranty or any other Loan  Document or otherwise relied on Lender in any manner in connection with interpreting, entering  into or otherwise in connection with this Guaranty, any other Loan Document or any of the matters  contemplated hereby or thereby.   23.   Notices.         Guarantor agrees to notify Lender of any change in Guarantor's address within ten (10)  Business Days after such change of address occurs. All notices under this Guaranty shall be:         (a)   in writing and shall be               (1)   delivered, in person;               (2)   mailed, postage prepaid, either by registered or certified delivery, return        receipt requested;               (3)   sent by overnight courier; or               (4)   sent by electronic mail with originals to follow by overnight courier;         (b)   addressed to the intended recipient at the notice addresses provided under the  signature block at the end of this Guaranty; and         (c)   deemed given on the earlier to occur of:               (1)   the date when the notice is received by the addressee; or               (2)   if the recipient refuses or rejects delivery, the date on which the notice is so        refused or rejected, as conclusively established by the records of the United States Postal        Service or such express courier service.   24.   Construction.         (a)   Any reference in this Guaranty to an "Exhibit" or "Schedule" or a "Section" or an  "Article" shall, unless otherwise explicitly provided, be construed as referring, respectively, to an  exhibit or schedule attached to this Guaranty or to a Section or Article of this Guaranty.         (b)   Any reference in this Guaranty to a statute or regulation shall be construed as  referring to that statute or regulation as amended from time to time.         (c)   Use of the singular in this Guaranty includes the plural and use of the plural includes  the singular.     Guaranty of Non-Recourse Obligations  Form 6015                           Page 9   Fannie Mae                              06-19                   © 2019 Fannie Mae  

 

      (d)   As used in this Guaranty, the term "including" means "including, but not limited  to" or "including, without limitation," and is for example only, and not a limitation.         (e)   Whenever Guarantor's knowledge is implicated in this Guaranty or the phrase "to  Guarantor's knowledge" or a similar phrase is used in this Guaranty, Guarantor's knowledge or  such phrase(s) shall be interpreted to mean to the best of Guarantor's knowledge after reasonable  and diligent inquiry and investigation.         (f)   Unless otherwise provided in this Guaranty, if Lender's approval, designation,  determination, selection, estimate, action or decision is required, permitted or contemplated  hereunder, such approval, designation, determination, selection, estimate, action or decision shall  be made in Lender's sole and absolute discretion.         (g)   All references in this Guaranty to a separate instrument or agreement shall include  such instrument or agreement as the same may be amended or supplemented from time to time  pursuant to the applicable provisions thereof.         (h)   "Lender may" shall mean at Lender's discretion, but shall not be an obligation.   25.   WAIVER OF JURY TRIAL.         TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF  GUARANTOR AND LENDER (A) AGREES NOT TO ELECT A TRIAL BY JURY WITH  RESPECT   TO  ANY   ISSUE ARISING   OUT  OF  THIS  GUARANTY    OR  ANY   LOAN  DOCUMENT OR THE RELATIONSHIP BETWEEN THE PARTIES AS              GUARANTOR  AND  LENDER THAT     IS TRIABLE   OF RIGHT   BY A  JURY  AND  (B) WAIVES  ANY  RIGHT   TO TRIAL  BY  JURY  WITH   RESPECT   TO SUCH   ISSUE TO  THE  EXTENT  THAT ANY SUCH RIGHT      EXISTS NOW    OR IN THE   FUTURE.   THIS WAIVER OF  RIGHT   TO  TRIAL   BY  JURY  IS SEPARA   TEL Y GIVEN   BY  GUARANTOR     AND  LENDER,    KNOWINGLY      AND    VOLUNTARILY      WITH    THE    BENEFIT    OF  COMPETENT LEGAL COUNSEL.   26.   Schedules.         The schedules, if any, attached to this Guaranty are incorporated fully into this Guaranty  by this reference and each constitutes a substantive part of this Guaranty.         ATTACHED SCHEDULE.       The following Schedule is attached to this Guaranty:                           Schedule 1  Modifications to Guaranty                         [Remainder of Page Intentionally Blank]     Guaranty of Non-Recourse Obligations  Form 6015                          Page 10   Fannie Mae                              06-19                    © 2019 Fannie Mae  

 

      IN WITNESS WHEREOF, Guarantor has signed and delivered this Guaranty under seal  (where applicable) or has caused this Guaranty to be signed and delivered under seal (where  applicable) by its duly authorized representative. Where applicable law so provides, Guarantor  intends that this Guaranty shall be deemed to be signed and delivered as a sealed instrument.                                       GUARANTOR:                                       STEADFAST INCOME REIT, INC.,                                     a Maryland corporation                                      By:                            (SEAL)                                     Name:vinJ.eating~ ~                                      Title:      Treasurer                                      Address for Notices to Guarantor:                                       18100 Von Karman Ave. Suite 500                                     Irvine. Ca 92612                                     Attn: Kevin J. Keatim:i.                                          Ana Marie del Rio                                      Email address: AnaMarie.delRio@SteadfastCo.com     Guaranty of Non-Recourse Obligations Form 6015                        Page S-1   Fannie Mae                             06-19                  © 2019 Fannie Mae  

 

                                SCHEDULE 1 TO                  GUARANTY OF NON-RECOURSE OBLIGATIONS                                State-Specific Provisions         1.    Capitalized terms used and not specifically defined herein have the meanings given  to such terms in the Guaranty to which this Schedule is attached.         2.    The additional provision(s) set forth below shall also apply and are incorporated  into the Guaranty:   GEORGIA:          Section 7 of the Guaranty is hereby amended by adding the following new                    language to the end thereof:                           (i)   Guarantor acknowledges and agrees that Lender has the right                    to collect on other collateral and to apply the receipts and proceeds                    therefrom to the amount due on the Indebtedness and that such application                    of such receipts and proceeds shall not reduce, affect or impair the liability                    of Guarantor under this Guaranty.                     Section 8 of the Guaranty is hereby amended by adding the following new                    language to the end thereof:                           (e)   In addition, Guarantor waives the benefit of O.C.G.A.                    Section 10-7-24.                           (f)   Guarantor also waives any and all defenses, claims and                    discharges of Borrower, or any other obligor, pertaining to the                    Indebtedness, except the defense of discharge by payment in full. Without                    limiting the generality of the foregoing in this subparagraph (f), Guarantor                    will not assert, plead or enforce against Lender any defense of waiver,                    release, statute of limitations, res judicata, statute of frauds, fraud,                    incapacity, minority, usury, illegality or unenforceability which may be                    available to Borrower or any other person liable in respect of any of the                    Indebtedness, or any setoff available against Lender to Borrower or any                    such other person, whether or not on account of a related transaction.                    Guarantor expressly agrees that Guarantor shall be and remain liable, to the                    fullest extent permitted by applicable law, for any deficiency remaining                    after foreclosure of any deed to secure debt or security interest securing the                    Indebtedness, whether or not the liability of Borrower or any other obligor                    for such deficiency is discharged pursuant to statute or judicial decision.                    Guarantor shall remain obligated, to the fullest extent permitted by law, to                    pay  such amounts as though Borrower's obligations had not been                    discharged.     Guaranty of Non-Recourse Obligations  Form 6015                      Page Sch. 1-1   Fannie Mae                              06-19                    © 2019 Fannie Mae

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