Document:

Exhibit 10.5

 

AMENDMENT NO. 2

TO

CREDIT AND SECURITY AGREEMENT

 

THIS AMENDMENT NO. 2 (this
“Amendment”) is entered into as of April 25, 2016, by and among MANHATTAN BRIDGE CAPITAL, INC., a New York corporation
(“Borrower”), the Subsidiary Guarantors signatory hereto (collectively with Borrower, each a “Loan
Party” and collectively, the “Loan Parties) and WEBSTER BUSINESS CREDIT CORPORATION (“Lender”).

 

BACKGROUND

 

Loan Parties
and Lender are parties to a Credit and Security Agreement dated as of February 27, 2015 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”) pursuant to which Lender provides Loan Parties
with certain financial accommodations.

 

Borrower intends to form a wholly-owned
subsidiary for the purpose of selling up to $9,990,000 aggregate principal amount of senior secured notes pursuant to the
Permitted Bond Indenture (as defined below) in a registered public offering underwritten by Aegis Capital Corp.
(“Aegis”). The offer and sale of the senior secured notes was consented to by Lender pursuant to that
certain consent letter dated November 24, 2015 (the “Consent Agreement”). In the Consent Agreement, Lender
agreed to (i) release its security interest in certain Collateral; and (ii) make certain amendments to the Credit Agreement
prior to the issuance of the senior secured notes. This Amendment shall effect items (i) and (ii) above on the terms and
conditions hereafter set forth.

 

NOW,
THEREFORE, in consideration of any loan or advance or grant of credit heretofore or hereafter made to or for the account of each
Loan Party by Lender, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby agree as follows:

 

1.           Definitions.
All capitalized terms not otherwise defined herein shall have the meanings given to them in the Credit Agreement.

 

2.           Amendment
to Credit Agreement. Subject to satisfaction of the conditions precedent set forth in Section 4 below, the Credit Agreement
is hereby amended as follows:

 

(a)           Section
4.3 is hereby amended by (i) adding an “(a)” before the text thereof (such that the text currently in the Loan Agreement
is subsection (a) of Section 4.3); and (ii) adding new subsections (b), (c) and (d) which provide as follows:

 

“(b) In the
event that Borrower notifies Lender that it is anticipating a sale by Borrower of a Mortgage Note and the assignment of the
associated Mortgage Loan and other Mortgage Loan Documents to Bond Subsidiary in accordance with Section 7.11(v) hereof and
upon satisfaction of each of the requirements thereof, including, without limitation, the Sale Conditions, Lender shall
forward the applicable Mortgage Note and associated Mortgage Loan Documents endorsed back to the applicable Loan Party,
together with the reassignment to Borrower of the related Mortgage File and any collateral securing such Mortgage Note
(collectively, the “Transferred Mortgage File”). In the event such Transferred Mortgage File is not sold
and assigned to Bond Subsidiary within fifteen (15) Business Days after receipt by Borrower of such Transferred Mortgage
File, Borrower shall re-endorse to and return to Lender, such Transferred Mortgage File.

 

    	 	 	 

     

    

 

(c)           In the event that Borrower
notifies Lender that it intends to exchange a Mortgage Note and the associated Mortgage Loan and other Mortgage Loan Documents
held by Borrower with a Mortgage Note and the associated Mortgage Loans and other Mortgage Loan Documents held by Bond Subsidiary
in accordance with Section 7.11(vi) hereof and upon satisfaction of each of the requirements thereof, including, without limitation,
the Exchange Conditions, Lender shall forward the applicable Transferred Mortgage File in the manner provided in Section 4.3(b)
hereof. In the event such Transferred Mortgage File is not exchanged with Bond Subsidiary as provided hereunder within fifteen
(15) Business Days after receipt by Borrower of such Transferred Mortgage File, Borrower shall re- endorse to and return to Lender,
such Transferred Mortgage File.

 

(d)           With regard to any
sales described in Section 4.3(b) or any exchanges described in Section 4.3(c), each Loan Party (and by its acceptance of the Transferred
Mortgage File, the Bond Subsidiary) acknowledges and agrees that Lender does not make any oral or written representations, warranties,
promises or guarantees whatsoever, whether express or implied, concerning or with regard to, and Lender expressly disclaims any
liability or obligation with respect to, concerning or relating to any aspect of the Mortgage Loans or any collateral thereof,
including, without limitation, any of the following:

(i) the value,
condition or profitability of the Mortgaged Property; (ii) title or ownership to or of the Mortgaged Property, or any portion
or part thereof; (iii) governmental laws and any other restrictions applicable to the Mortgaged Property; (iv) claims by
third parties against Borrower or any Mortgage Customer; (v) the creditworthiness, financial condition or ability of any
Mortgage Customer or any guarantor to fulfill its obligations to pay its respective debts as they mature; (vi) the
collectability of the Mortgage Loans; (vii) the legality, validity, sufficiency or enforceability of any of the Mortgage Loan
Documents, and (viii) the validity, enforceability, attachment, priority or perfection of any security interest granted
pursuant to the Mortgage Loan Documents. Loan Parties (and by its acceptance of the Transferred Mortgage File, the Bond
Subsidiary) shall not be entitled to any other materials from Lender, including, but not limited to, materials that are
attorney-client privileged, or prepared in connection with anticipated or actual litigation, or otherwise subject to
confidentiality agreements, internal memoranda, analysis, ratings or reports prepared by Lender in connection with the
Mortgage Loans or the transactions completed by the Credit Agreement. Each Loan Party (and by its acceptance of the
Transferred Mortgage File, the Bond Subsidiary) acknowledges that it will have made such examinations, reviews and
investigations as it deems necessary or appropriate in making its decision to purchase the Mortgage Loans. Each Loan Party
(and by its acceptance of the Transferred Mortgage File, the Bond Subsidiary) has been and will continue to be solely
responsible for making its own independent investigation of the Mortgage Loan Documents. Each Loan Party (and by its
acceptance of the Transferred Mortgage File, the Bond Subsidiary) further acknowledges and agrees that Lender has not given
any investment advice, credit information or opinion on whether the purchase of the Mortgage Customers obligations under the
Mortgage Loans is prudent. Each Loan Party (and by its acceptance of the Transferred Mortgage File, the Bond Subsidiary)
hereby accepts the Mortgage Loans on an “as is, where is, with all faults” basis, without recourse to Lender and
without any representations or warranties. Each Loan Party shall defend and indemnify Lender, and its respective employees,
agents, directors and officers harmless from and against all loss, liability, damage and expense, claims, costs, fines and
penalties, including attorney’s fees, suffered or incurred as a result of or in any way related to the transfer of a
Transferred Mortgage Property in accordance with the provisions of Section 16.5 hereof.”

 

    	 	2	 

     

    

 

(b)           Section
7.2 is hereby amended by adding “or Section 7.11 (as amended hereby)” between “4.3” and “hereof”
thereof.

 

		(c)	Section 7.4 is hereby amended in its entirety to read as follows:

 

“7.4 Guarantees.
Become liable upon the obligations of any Person by assumption, endorsement or guaranty thereof or otherwise (other than to
the Lender, the Bank, the Issuers, or the Lender in connection with this Agreement and the transactions contemplated herein)
except (a) guarantees made in the Ordinary Course of Business up to an aggregate amount not exceeding the Materiality
Threshold; (b) the endorsement of checks for collection in the Ordinary Course of Business; (c) guarantees made by one Loan
Party of the Obligations of another Loan Party or Loan Parties, and (d) the Permitted Bond Subsidiary Guaranty.”

 

		(d)	Section 7.5 is hereby amended in its entirety to read as follows:

 

“7.5 Investments.
Purchase or acquire obligations or Equity Interests of, or any other interest in, any Person, including, without limitation the
acquisition of all, or substantially all, or any material portion of the assets or Equity Interests of a Person or the assets of
(a) any division or line of business of a Person and (b) any partnership or joint venture; provided, however, in
Lender’s sole and absolute discretion and so long as (i) there does not exist a Default or Event of Default or a Default
or Event of Default would not result therefrom and (ii) such investment is made by no later than April 30, 2016, Borrower may make
a one-time investment of up to $2,000,000 (whether in cash or in other property) in the Bond Subsidiary to consummate a Permitted
Bond Transaction (a “Permitted Bond Subsidiary Investment”).”

 

 

 

    	 	3	 

     

    

 

(e)           Section
7.11 is hereby amended by (i) deleting the word “and” immediately before subsection (iv) thereof and (ii) deleting
the “.” and adding the following text to the end thereof:

 

“, (v) sales
by Borrower of Mortgage Notes and assignment of the associated Mortgage Loans and other Mortgage Loan Documents to Bond
Subsidiary, provided, that, (A) each such sale shall be at the then current outstanding principal amount of the Mortgage
Note, (B) all proceeds received by Borrower in respect of such sales shall be applied in repayment of the outstanding
Revolving Advances, and (C) both before and after giving effect to each such transaction, no Default or Event of Default
shall have occurred and be continuing (the conditions listed in Section 7.11(v)(A) through (C), collectively referred to as
the “Sale Conditions”), and (vi) exchanges between Borrower and Bond Subsidiary of Mortgage Notes and
associated Mortgage Loans and other Mortgage Loan Documents, provided, that (A) each such exchange is on a dollar for dollar
basis, (B) the aggregate outstanding principal amount owing on all Mortgage Notes exchanged by Borrower during any Fiscal
Year shall not exceed $1,000,000; provided, that, in the event the aggregate outstanding principal amount owing on all
Mortgage Notes exchanged by Borrower during any Fiscal Year is less than $1,000,000, then one hundred percent (100%) of the
unused amount (the “Carryover Amount”) may be carried over and used in the immediately succeeding Fiscal
Year; provided, further, that any Carryover Amount shall be deemed to be the first amount exchanged in such succeeding Fiscal
Year, (C) the aggregate outstanding principal amount owing on all Mortgage Notes exchanged by Borrower during the Term shall
not exceed $1,250,000, (D) after the exchange, the sum of (i) the Borrowing Base, minus (ii) the sum of the outstanding
amount of Revolving Advances, plus (iii) all amounts due and owing to Loan Parties’ trade creditors which are
outstanding beyond normal trade terms, plus (iv) all fees and expenses for which Loan Parties are liable hereunder but which
have not been paid or charged to Borrower’s Account shall be greater than $1,000,000, and (E) both before and
after giving effect to each such transaction, no Default or Event of Default shall have occurred and be continuing (the
conditions listed in Section 7.11(vi)(A) through (E), collectively referred to as the “Exchange
Conditions”).”

 

    	 	4	 

     

    

 

(f)           Annex
One of the Credit Agreement is hereby amended by adding the following definitions in their appropriate order to read as follows:

 

“Consent
Agreement” means that certain consent letter by and between Borrower and Lender, dated November 24, 2015.

 

“Permitted Bond
Subsidiary Guaranty” shall mean that certain Guaranty dated as of April 25, 2016 made by Borrower in favor of the bondholders
with respect to the Bond Subsidiary’s obligation under the Permitted Bond Transaction Documentation.

 

“Permitted Bond
Indenture” shall mean that certain Indenture, dated April 25, 2016, by and among the Bond Subsidiary, Borrower and Worldwide
Stock Transfer, LLC, as Indenture Trustee.

 

(g)           Annex
One of the Credit Agreement is hereby amended by amending and restating the following definitions in their entirety to read as
follows:

 

“Bond Subsidiary”
shall mean MBC Funding II Corp., a wholly owned subsidiary of MBC formed specifically for the purpose of issuing senior secured
notes in connection with the Permitted Bond Transaction.

 

“Permitted Bond
Transaction” shall mean the issuance by the Bond Subsidiary of up to $9,990,000 aggregate principal amount of senior
secured notes pursuant to the Permitted Bond Indenture having a rate of interest of not more than six percent (6%) per annum, and
a maturity date ten (10) years from the date of issuance.

 

(h)           Subsection
(f) of the definition of “Collateral” in Annex One of the Credit Agreement is hereby amended and restated in its entirety
to read as follows:

 

“(f) all Equity Interests
of each Domestic Subsidiary other than Bond Subsidiary, and sixty-five percent (65%) of the Equity Interests of each Foreign Subsidiary;”

 

(i)           Subsection
(k) of the definition of “Permitted Encumbrances” in Annex One of the Credit Agreement is hereby amended and restated
in its entirety to read as follows:

 

    	 	5	 

     

    

 

“(k) Liens upon the
Equity Interests of Bond Subsidiary to secure Borrower’s guaranty obligations under the Permitted Bond Transaction and”

 

(j)           Notwithstanding
Sections 7.18 and 7.19 of the Credit Agreement, nothing contained in the Credit Agreement shall be construed as prohibiting Borrower
from repaying its outstanding short-term indebtedness in the principal amount of $860,620 provided that the funds used to repay
such indebtedness shall first be remitted to Lender and subsequently borrowed as a Revolving Advance under the Credit Agreement.

 

(k)           So
long as Bond Subsidiary uses all of the net proceeds from the registered public offering referred to in the “Background”
section of this Amendment to purchase Mortgage Notes from Borrower, Borrower will not be in breach of Section 7.11(v) of the Credit
Agreement to the extent the net proceeds of the offering are not more than

$1,000,000 less than the gross proceeds of the offering.

 

3.           Release
of Certain Collateral. Subject to satisfaction of the conditions precedent set forth in Section 4, Lender hereby releases its
security interest and lien on the Collateral set forth on Schedule A attached hereto (the “Released Collateral”),
subject to satisfaction of the following conditions: (i) the total value of the Released Collateral shall not exceed $12,000,000;
and (ii) both before and after giving effect to the release of the Released Collateral, Loan Parties shall not be in default of
any of the covenants contained in the Credit Agreement. Upon satisfaction of these conditions, Lender’s security interest
in the Released Collateral shall automatically terminate and Lender shall do such further reasonable acts and things, all at Loan
Parties’ expense, to effect the termination of Lender’s liens upon such Released Collateral. The terms of this provision
shall not affect the security interest of the Lender in any property of the Loan Parties other than the Released Collateral.

 

4.           Conditions
of Effectiveness. This Amendment shall become effective when each of the following conditions precedent shall have been satisfied:

 

(a)           Lender
shall have received a copy of this Amendment executed by each Loan Party with one original executed copy of this Amendment to be
promptly delivered by Loan Parties to Lender.

 

(b)           Lender
shall have received a Guaranty from the Bond Subsidiary in form and substance satisfactory to Lender.

 

(c)           Lender
shall have received a copy of the fully executed Intercreditor Agreement, dated as of the date hereof, by and among Worldwide Stock
Transfer, LLC, as Indenture Trustee and Lender, setting forth various rights under the respective guaranties.

 

(d)           Lender
shall have obtained definitive copies of the Permitted Bond Transaction Documents.

 

		(e)	Lender shall have received payment in respect of its legal fees and expenses.

 

    	 	6	 

     

    

 

5.           Conditions
Subsequent to Effectiveness. Loan Parties shall pay an amendment fee in the amount of $20,000.00, which fee shall be fully
earned and payable on the date of the first issuance of the senior secured notes pursuant to the Permitted Bond Indenture using
the proceeds thereof.

 

6.           Representations
and Warranties. Each Loan Party hereby represents and warrants as follows:

 

(a)           This
Amendment and the Credit Agreement, as amended hereby, constitute legal, valid and binding obligations of each Loan Party and are
enforceable against each Loan Party in accordance with their respective terms.

 

(b)           Upon
the effectiveness of this Amendment, each Loan Party hereby reaffirms all covenants, representations and warranties made in the
Credit Agreement to the extent the same are not amended hereby and agree that all such covenants, representations and warranties
shall be deemed to have been remade as of the effective date of this Amendment.

 

(c)           No
Event of Default or Default has occurred and is continuing or would exist after giving effect to this Amendment.

 

(d)           No
Loan Party has any defense, counterclaim or offset with respect to the Credit Agreement.

 

(e)           The
Permitted Bond Transaction complies in all material respects with the terms and conditions set forth on Schedule A to the Consent
Agreement except that Lender acknowledges that (i) in the description under “Amortization”, “quarterly”
should be changed to “monthly” and (ii) in the description under “Market Trading”, “Nasdaq Global
Market” should be changed to “NYSE MKT”.

 

7.           Covenant
Regarding Permitted Bond Transaction Documentation. Borrower hereby agrees that until the satisfaction in full of the Obligations
and termination of the Credit Agreement, Borrower shall not permit the Bond Subsidiary to amend, supplement, modify or restate
the terms of the Permitted Bond Transaction Documentation in a manner that either (a) increases the interest rate above seven percent
(7%), excluding the imposition of the default rate of interest; (b) extends the stated maturity; or (c) increases the outstanding
aggregate principal amount of the senior secured notes issued pursuant to the Permitted Bond Transaction Documentation.

 

		8.	Effect on the Credit Agreement.

 

(a)           Upon
the effectiveness of Section 2 hereof, each reference in the Credit Agreement to “this Agreement,” “hereunder,”
“hereof,” “herein” or words of like import shall mean and be a reference to the Credit Agreement as amended
hereby.

 

(b)           Except
as specifically amended herein, the Credit Agreement, and all other documents, instruments and agreements executed and/or delivered
in connection therewith, shall remain in full force and effect, and are hereby ratified and confirmed.

 

    	 	7	 

     

    

 

(c)           The
execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Lender,
nor constitute a waiver of any provision of the Credit Agreement, or any other documents, instruments or agreements executed and/or
delivered under or in connection therewith.

 

9.           Release.
Each of the Loan Parties on behalf of itself and its successors, assigns, and other legal representatives, hereby, (a) jointly
and severally, absolutely, unconditionally and irrevocably releases, remises and forever discharges Lender, and its present and
former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other
representatives and their respective successors and assigns (Lender and all such other parties being hereinafter referred to collectively
as the “Releasees” and individually as a “Releasee”), of and from all demands, actions, causes
of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages
and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a “Claim”
and collectively, “Claims”) of every name and nature, known or unknown, suspected or unsuspected, both at law
and in equity, whether liquidated or unliquidated, matured or unmatured, asserted or unasserted, fixed or contingent, foreseen
or unforeseen and anticipated or unanticipated, which each of the Loan Parties, or any of their respective successors, assigns,
or other legal representatives and their successors and assigns may now or hereafter own, hold, have or claim to have against the
Releasees or any of them for, upon, or by reason of any nature, cause or thing whatsoever which arises at any time on or prior
to the day and date of this Amendment, in relation to, or in any way in connection with the Credit Agreement, as amended and supplemented
through the date hereof, this Amendment, the Other Documents or the release of the Released Collateral; (b) understands, acknowledges
and agrees that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction
against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such
release; (c) agrees that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter
be discovered shall affect in any manner the final and unconditional nature of the release set forth above and nothing contained
herein shall constitute an admission of liability with respect to any Claim on the part of any Releasee; and (d) jointly and severally,
absolutely, unconditionally and irrevocably, covenants and agrees with each Releasee that it will not sue (at law, in equity, in
any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released, remised and discharged by any of the Loan
Parties pursuant to this Paragraph 8. If any Loan Party violates the foregoing covenant, Loan Parties, jointly and severally, agree
to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all attorneys' fees and costs
incurred by any Releasee as a result of such violation.

 

10.           Governing
Law. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns and shall be governed by and construed in accordance with the laws of the State of New York.

 

11.           Headings.
Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this
Amendment for any other purpose.

 

    	 	8	 

     

    

 

12.           Counterparts;
Facsimile. This Amendment may be executed by the parties hereto in one or more counterparts, each of which shall be deemed
an original and all of which when taken together shall constitute one and the same agreement. Any signature delivered by a party
by .pdf or facsimile transmission shall be deemed to be an original signature hereto.

 

[Signature Page to Follow]

 

 

 

 

 

 

    	 	9	 

     

    

 

IN WITNESS WHEREOF, this
Amendment has been duly executed as of the day and year first written above.

  

	 	"BORROWER"
	 	 	 
	 	MANHATTAN BRIDGE CAPITAL, INC.
	 	 	 
	 	By:	/s/ Assaf Ran	 
	 		Assaf Ran
	 		Chief Executive Officer
	 	 	 
	 	 	 
	 	"SUBSIDIARY GUARANTOR"
	 	 	 
	 	DAG FUNDING SOLUTIONS, INC.
	 	 	 
	 	By:	/s/ Assaf Ran	 
	 		Assaf Ran
	 		Chief Executive Officer

 

 

	Signature Page to Amendment No. 2

     

     

    

 

	 	WEBSTER BUSINESS CREDIT CORPORATION
	 	 	 
	 	By:	/s/ Leo Goldstein	 
	 	Name: Leo Goldstein
	 	Title: Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

	
        Signature Page to Amendment No. 2

     

     

    

SCHEDULE A

 

Released Collateral

 

All
of Borrower’s right, title and interest in and to (i) all of the outstanding common shares, par value $.001 per share, of
the Bond Subsidiary; and (ii) the Mortgage Loans sold and to be sold by Borrower to the Bond Subsidiary pursuant to the Asset Purchase
Agreement, dated as of April 25, 2016, as amended, supplemented or otherwise modified from time to time, between Borrower and the
Bond Subsidiary, including with respect to such Mortgage Loans, all of Borrower’s right, title and interest in, to and under
each of the following items of property, whether now owned or hereafter acquired, now existing or hereafter created and wherever
located: (a) the real property (including all improvements, buildings, fixtures, building equipment and personal property thereon
and all additions, alterations and replacements made at any time with respect to the foregoing) and all other collateral (the “Mortgaged
Property”) securing repayment of the debt evidenced by a promissory note or other evidence of the indebtedness of an obligor
with respect to a Mortgage Loan (the “Mortgage Note”); (b) the original executed Mortgage Note bearing all intervening
endorsements, duly endorsed to Borrower; (c) the original Mortgage(s) securing each Mortgage Note with evidence of recording thereon
or copies certified by the related recording office;

(d) the original assignments,
if any, executed in connection with such Mortgage(s); (e) any original stock certificates (accompanied by applicable stock powers),
instruments, chattel paper or other collateral securing the Mortgage Loan; (f) all mortgage guaranties and insurance (issued by
governmental agencies or otherwise) and any mortgage insurance certificate or other document evidencing such mortgage guaranties
or insurance relating and all claims and payments thereunder; (g) all other insurance policies and insurance proceeds relating
to the Mortgage Loan or the related Mortgaged Property, including the lender’s title policy and evidence of property/casualty
insurance coverage; (h) all “general intangibles”, “accounts” and “chattel paper” as defined
in the New York State Uniform Commercial Code relating to or constituting any and all of the foregoing; (i) all other documents
instruments, surveys, legal opinions, certificates, correspondence, valuations, appraisals, computer programs, computer storage
media, accounting records and other books and records relating thereto; (j) any Receivable (as defined in the Credit and Security
Agreement dated as of February 27, 2015, as amended, supplemented or otherwise modified from time to time (the “Credit Agreement”),
between Borrower and Lender), resulting from and reflecting an amount due under a Mortgage Note described in clause (b) above;
(k) the Mortgage Loan Documents (as defined in the Credit Agreement) relating to the Mortgage Loan, other than any document prepared
by Lender or for the benefit of Lender by third parties; (l) any and all replacements, substitutions, distributions on or proceeds
of any and all of the foregoing. Initially, Borrower is transferring to the Bond Subsidiary the following Mortgage Loans:

 

List of Excluded Mortgage
Loans

 

	
        MBC Loan # 218

        Loan Amount: $250,000

        Property: 1370 Bushwick Avenue, Brooklyn
        NY Guarantor(s): Eitan Peretz /RobertMichaeli/Nadav Hamo
	
        MBC Loan # 405

        Loan Amount: $210,000 + $50,000

        Property: 1483 East 53rd Street, Brooklyn
        NY Guarantor(s): Leonard Galper

	
        MBC Loan # 235

        Loan Amount: $1,000,000

        Property: 300 Great Neck Road, Great Neck
        NY Guarantor(s): Yossef Boniel / Shelly Boniel
	
        MBC Loan # 406

        Loan Amount: $370,000

        Property: 131-25 220th Street, Queens NY
        Guarantor(s): Yuval Harosh

	
        MBC Loan # 239

        Loan Amount: $500,000

        Property: 1237 Eastern Parkway, Brooklyn
        NY Guarantor(s): Yehuda Cohen
	
        MBC Loan # 407

        Loan Amount: $72,500

        Property: 105 Palisades Avenue, Yonkers NY
        Guarantor(s): Michael Yehounatan / Ariel Sholomov

	
        MBC Loan # 265

        Loan Amount: $265,000

        Property: 215 Highland Blvd, Brooklyn NY
        Guarantor(s): Shlomi Ohayon
	
        MBC Loan # 408

        Loan Amount: $550,000 + $100,000

        Property: 696A Lexington Avenue, Brooklyn
        NY Guarantor(s): Eran Malka

	
        MBC Loan # 289

        Loan Amount: $750,000 + $300,000 Property:
        67 Jefferson Avenue, Brooklyn NY Guarantor(s): Shay Zach / Peleg Neev
	
        MBC Loan # 412

        Loan Amount: $580,000

        Property: 343 Winthrop Street, Brooklyn NY
        Guarantor(s): Yuval Harosh

	MBC Loan # 351	MBC Loan # 416

252540/234-5985074.5

    	 	1	 

     

    

	
        Loan Amount: $370,000

        Property: 647 New Jersey Avenue, Brooklyn
        NY Guarantor(s): Rachel Surizon
	
        Loan Amount: $355,000

        Property: 903 Pine Street, Brooklyn NY Guarantor(s):
        Abraham Zagai

	
        MBC Loan # 394

        Loan Amount: $450,000

        Property: 156-12 107 Avenue (Unit 1,2,3) &
        156-14 107 Avenue (Unit 2,3), Jamaica NY

        Guarantor(s): Itzhak Maman
	
        MBC Loan # 430

        Loan Amount: $110,000

        Property: 1276 Givan Avenue,Bronx NY

	
        MBC Loan # 399

        Loan Amount: $300,000

        Property: 1460 East Gun Hill Road, Bronx
        NY Guarantor(s): Eli Weissman
	
        MBC Loan # 431

        Loan Amount: $150,000

        Property: 90 Rosedale Rd., Valley Stream NY

	
        MBC Loan # 402

        Loan Amount: $400,000

        Property: 381 Jefferson Avenue, Brooklyn
        NY Guarantor(s): Itzhak Maman / Avi Shevah
	
        MBC Loan # 433

        Loan Amount: $110,000

        Properties: 30 Liberty St. Patchogue NY &
        35 Maple Avenue, Shirley NY

 

 

 

    	 	2Exhibit 10.6

 

GUARANTY

(Corporate)

 

	New York, New York	April 25, 2016

 

FOR VALUE
RECEIVED, and in consideration of loans made or to be made or credit otherwise extended or to be extended by WEBSTER BUSINESS CREDIT
CORPORATION (“Lender”) to or for the account of MANHATTAN BRIDGE CAPITAL, INC. (“MBC”) and
each other person which now or hereafter becomes a Borrower under the Credit Agreement (as defined below) (MBC and such other persons,
each a “Borrower” and collectively, “Borrowers”) from time to time and at any time and for
other good and valuable consideration and to induce Lender, in its discretion, to make such loans or extensions of credit and to
make or grant such renewals, extensions, releases of collateral or relinquishments of legal rights as Lender may deem advisable,
the undersigned (and each of them if more than one, the liability under this Guaranty being joint and several) (jointly and severally
referred to as “Guarantor” or “the undersigned”) unconditionally guaranties to Lender, its
successors, endorsees and assigns the prompt payment when due (whether by acceleration or otherwise) of all present and future
obligations and liabilities of any and all kinds of Borrowers to Lender and of all instruments of any nature evidencing or relating
to any such obligations and liabilities upon which any Borrower or one or more parties and any Borrower is or may become liable
to Lender, whether incurred by any Borrower as maker, endorser, drawer, acceptor, guarantor, accommodation party or otherwise,
and whether due or to become due, secured or unsecured, absolute or contingent, joint or several, and however or whenever acquired
by Lender, whether arising under, out of, or in connection with that certain Credit and Security Agreement dated as of February
27, 2015 among Lender, Borrowers and the other Loan Parties (as defined therein) (as amended, modified, restated or supplemented
from time to time, the “Credit Agreement”; capitalized terms used herein but not defined shall have the meanings
ascribed to such terms in the Credit Agreement) or any documents, instruments or agreements relating to or executed in connection
with the Credit Agreement or any documents, instruments or agreements referred to therein (together with the Credit Agreement,
as each may be amended, modified, restated or supplemented from time to time, the “Loan Documents”), or otherwise
(all of which are herein collectively referred to as the “Obligations”), and irrespective of the genuineness,
validity, regularity or enforceability of such Obligations, or of any instrument evidencing any of the Obligations or of any collateral
therefor or of the existence or extent of such collateral, and irrespective of the allowability, allowance or disallowance of any
or all of the Obligations in any case commenced by or against any Borrower under Title 11, United States Code, including, without
limitation, obligations or indebtedness of any Borrower for post-petition interest, fees, costs and charges that would have accrued
or been added to the Obligations but for the commencement of such case. In furtherance of the foregoing, the undersigned hereby
agrees as follows:

 

    	 	 	 

     

    

 

1.           No
Impairment. Lender may at any time and from time to time, either before or after the maturity thereof, without notice to
or further consent of the undersigned, extend the time of payment of, exchange or surrender any collateral for, renew or
extend any of the Obligations or increase or decrease the interest rate thereon, and may also make any agreement with any
Borrower or with any other party to or person liable on any of the Obligations, or interested therein, for the extension,
renewal, payment, compromise, discharge or release thereof, in whole or in part, or for any modification of the terms thereof
or of any agreement between Lender and any Borrower or any such other party or person, or make any election of rights Lender
may deem desirable under the United States Bankruptcy Code, as amended, or any other federal or state bankruptcy,
reorganization, moratorium or insolvency law relating to or affecting the enforcement of creditors’ rights generally
(any of the foregoing, an “Insolvency Law”) without in any way impairing or affecting this Guaranty. This
instrument shall be effective regardless of the subsequent incorporation, merger or consolidation of any Borrower, or any
change in the composition, nature, personnel or location of any Borrower and shall extend to any successor entity to such
Borrower, including a debtor in possession or the like under any Insolvency Law.

 

2.           Guaranty
Absolute. The undersigned guarantees that the Obligations will be paid strictly in accordance with the terms of the
Credit Agreement and/or any other document, instrument or agreement creating or evidencing the Obligations, regardless of any
law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of
Borrowers with respect thereto. Guarantor hereby knowingly accepts the full range of risk encompassed within a contract of
“continuing guaranty” which risk includes the possibility that Borrowers will contract additional indebtedness
for which Guarantor may be liable hereunder after Borrowers’ financial condition or ability to pay their lawful debts
when they fall due has deteriorated, whether or not Borrowers have properly authorized incurring such additional
indebtedness. The undersigned acknowledges that (i) no oral representations, including any representations to extend credit
or provide other financial accommodations to Borrowers, have been made by Lender to induce the undersigned to enter into this
Guaranty and (ii) any extension of credit to the Borrowers shall be governed solely by the provisions of the Credit
Agreement. The liability of the undersigned under this Guaranty shall be absolute and unconditional, in accordance with its
terms, and shall remain in full force and effect without regard to, and shall not be released, suspended, discharged,
terminated or otherwise affected by, any circumstance or occurrence whatsoever, including, without limitation: (a) any
waiver, indulgence, renewal, extension, amendment or modification of or addition, consent or supplement to or deletion
from or any other action or inaction under or in respect of the Loan Documents or any other instruments or agreements
relating to the Obligations or any assignment or transfer of any thereof, (b) any lack of validity or enforceability of any
Loan Document or other documents, instruments or agreements relating to the Obligations or any assignment or transfer of any
thereof, (c) any furnishing of any additional security to Lender or its assignees or any acceptance thereof or any release of
any security by Lender or its assignees, (d)           any limitation on any party’s liability or obligation under the Loan
Documents or any other documents, instruments or agreements relating to the Obligations or any assignment or transfer of any
thereof or any invalidity or unenforceability, in whole or in part, of any such document, instrument or agreement or any term
thereof, (e) any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like
proceeding relating to any Borrower, or any action taken with respect to this Guaranty by any trustee or receiver, or by any
court, in any such proceeding, whether or not the undersigned shall have notice or knowledge of any of the foregoing, (f) any
exchange, release or nonperfection of any collateral, or any release, or amendment or waiver of or consent to departure from
any guaranty or security, for all or any of the Obligations or (g) any other circumstance which might otherwise constitute a
defense available to, or a discharge of, the undersigned. Any amounts due from the undersigned to Lender shall bear interest
until such amounts are paid in full at the highest rate then applicable to the Obligations. Obligations include post-petition
interest whether or not allowed or allowable.

 

    	 	2	 

     

    

 

3.           Waivers.
(a) This Guaranty is a guaranty of payment and not of collection. Lender shall be under no obligation to institute suit, exercise
rights or remedies or take any other action against any Borrower or any other person liable with respect to any of the Obligations
or resort to any collateral security held by it to secure any of the Obligations as a condition precedent to the undersigned being
obligated to perform as agreed herein and Guarantor hereby waives any and all rights which it may have by statute or otherwise
which would require Lender to do any of the foregoing. Guarantor further consents and agrees that Lender shall be under no obligation
to marshal any assets in favor of Guarantor, or against or in payment of any or all of the Obligations. The undersigned hereby
waives all suretyship defenses and any rights to interpose any defense, counterclaim or offset of any nature and description which
the undersigned may have or which may exist between and among Lender, any Borrower and/or the undersigned with respect to the undersigned’s
obligations under this Guaranty, or which any Borrower may assert on the underlying debt, including but not limited to failure
of consideration, breach of warranty, fraud, payment (other than cash payment in full of the Obligations), statute of frauds, bankruptcy,
infancy, statute of limitations, accord and satisfaction, and usury.

 

(b)           The
undersigned further waives (i) notice of the acceptance of this Guaranty, of the making of any such loans or extensions of credit,
and of all notices and demands of any kind to which the undersigned may be entitled, including, without limitation, notice of adverse
change in any Borrower’s financial condition or of any other fact which might materially increase the risk of the undersigned
and (ii) presentment to or demand of payment from anyone whomsoever liable upon any of the Obligations, protest, notices of presentment,
non-payment or protest and notice of any sale of collateral security or any default of any sort.

 

(c)           Notwithstanding
any payment or payments made by the undersigned hereunder, or any setoff or application of funds of the undersigned by
Lender, the undersigned shall not be entitled to be subrogated to any of the rights of Lender against any Borrower or against
any collateral or guarantee or right of offset held by Lender for the payment of the Obligations, nor shall the undersigned
seek or be entitled to seek any contribution or reimbursement from any Borrower in respect of payments made by the
undersigned hereunder, until all amounts owing to Lender by Borrowers on account of the Obligations are paid in full and the
Credit Agreement has been terminated. If, notwithstanding the foregoing, any amount shall be paid to the undersigned on
account of such subrogation rights at any time when all of the Obligations shall not have been paid in full and the Credit
Agreement shall not have been terminated, such amount shall be held by the undersigned in trust for Lender, segregated from
other funds of the undersigned, and shall forthwith upon, and in any event within two (2) business days of, receipt by the
undersigned, be turned over to Lender in the exact form received by the undersigned (duly endorsed by the undersigned to
Lender, if required), to be applied against the Obligations, whether matured or unmatured, in such order as Lender may
determine, subject to the provisions of the Credit Agreement. Any and all present and future debts and obligations of any
Borrower to any of the undersigned are hereby waived and postponed in favor of, and subordinated to the full payment and
performance of, all present and future debts and obligations of Borrowers to Lender.

 

    	 	3	 

     

    

 

		4.	Reserved.

 

5.           Representations
and Warranties. The undersigned hereby represents and warrants (all of which representations and warranties shall survive until
all Obligations are indefeasibly satisfied in full and the Credit Agreement has been irrevocably terminated), that:

 

(a)           Corporate
Status. The undersigned is a corporation duly organized, validly existing and in good standing under the laws of the State
of New York and has full power, authority and legal right to own its property and assets and to transact the business in which
it is engaged.

 

(b)           Authority
and Execution. The undersigned has full power, authority and legal right to execute and deliver, and to perform its obligations
under, this Guaranty and has taken all necessary corporate and legal action to authorize the execution, delivery and performance
of this Guaranty.

 

(c)           Legal,
Valid and Binding Character. This Guaranty constitutes the legal, valid and binding obligation of the undersigned enforceable
in accordance with its terms, except as enforceability may be limited by applicable Insolvency Law.

 

(d)           Violations.
The execution, delivery and performance of this Guaranty will not violate any requirement of law applicable to the undersigned
or any material contract, agreement or instrument to which the undersigned is a party or by which the undersigned or any property
of the undersigned is bound or result in the creation or imposition of any mortgage, lien or other encumbrance other than to Lender
on any of the property or assets of the undersigned pursuant to the provisions of any of the foregoing.

 

(e)           Consents
or Approvals. No consent of any other person or entity (including, without limitation, any creditor of the undersigned) and
no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration
with, any governmental authority is required in connection with the execution, delivery, performance, validity or enforceability
of this Guaranty.

 

(f)           Litigation.
No litigation, arbitration, investigation or administrative proceeding of or before any court, arbitrator or governmental
authority, bureau or agency is currently pending or, to the best knowledge of the undersigned, threatened (i) with respect to
this Guaranty or any of the transactions contemplated by this Guaranty or (ii) against or affecting the undersigned, or any
of property or assets of the undersigned, which, if adversely determined, would have a material adverse effect on the
business, operations, assets or condition, financial or otherwise, of the undersigned.

 

    	 	4	 

     

    

 

(g)           Material
Adverse Change. Since December 31, 2015, there has been no material adverse change in the assets or condition, financial or
otherwise, of the undersigned.

 

(h)           Financial
Benefit. The undersigned has derived or expects to derive a financial or other advantage from each and every loan, advance
or extension of credit made under the Credit Agreement or other Obligation incurred by Borrowers to Lender.

 

The foregoing
representations and warranties shall be deemed to have been made by the undersigned on the date of each borrowing by any Borrower
under the Credit Agreement on and as of such date of such borrowing as though made hereunder on and as of such date.

 

6.           Acceleration.
(a) If any breach of any covenant or condition or other event of default shall occur and be continuing under any agreement made
by any Borrower or the undersigned to Lender, or either any Borrower or the undersigned should at any time become insolvent, or
make a general assignment, or if a proceeding in or under any Insolvency Law shall be filed or commenced by, or in respect of,
the undersigned, or if a notice of any lien, levy, or assessment is filed of record with respect to any assets of the undersigned
by the United States of America or any department, agency, or instrumentality thereof, or if any taxes or debts owing at any time
or times hereafter to any one of them becomes a lien or encumbrance upon any assets of the undersigned in Lender’s possession,
or otherwise, any and all Obligations shall for purposes hereof, at Lender’s option, be deemed due and payable without notice
notwithstanding that any such Obligation is not then due and payable by Borrowers.

 

(b)
The undersigned will promptly notify Lender of any default by the undersigned in the performance or observance of any term
or condition of any agreement to which the undersigned is a party if the effect of such default is to cause, or permit the holder
of any obligation under such agreement to cause, such obligation to become due prior to its stated maturity and, if such an event
occurs, Lender shall have the right to accelerate the undersigned’s obligations hereunder.

 

7.           Payments
from Guarantor. Lender, in its sole and absolute discretion, with or without notice to the undersigned, may apply on account
of the Obligations any payment from the undersigned or any other guarantor, or amounts realized from any security for the Obligations,
or may deposit any and all such amounts realized in a non-interest bearing cash collateral deposit account to be maintained as
security for the Obligations.

 

8.           Costs.
The undersigned shall pay on demand, all costs, fees and expenses (including expenses for legal services of every kind) relating
or incidental to the enforcement or protection of the rights of Lender hereunder or under any of the Obligations.

 

 

    	 	5	 

     

    

 

9.           No
Termination. This is a continuing irrevocable guaranty and shall remain in full force and effect and be binding upon the
undersigned, and the undersigned’s successors and assigns, until all of the Obligations have been paid in full and the
Credit Agreement has been irrevocably terminated. If any of the present or future Obligations are guarantied by persons,
partnerships or corporations in addition to the undersigned, the death, release or discharge in whole or in part or the
bankruptcy, merger, consolidation, incorporation, liquidation or dissolution of one or more of them shall not discharge or
affect the liabilities of the undersigned under this Guaranty.

 

10.           Recapture.
Anything in this Guaranty to the contrary notwithstanding, if Lender receives any payment or payments on account of the liabilities
guaranteed hereby, which payment or payments or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
set aside and/or required to be repaid to a trustee, receiver, or any other party under any Insolvency Law, common law or equitable
doctrine, then to the extent of any sum not finally retained by Lender, the undersigned’s obligations to Lender shall be
reinstated and this Guaranty shall remain in full force and effect (or be reinstated) until payment shall have been made to Lender,
which payment shall be due on demand.

 

11.           Books
and Records. The books and records of Lender showing the account between Lender and Borrowers shall be admissible in evidence
in any action or proceeding, shall be binding upon the undersigned for the purpose of establishing the items therein set forth
and shall constitute prima facie proof thereof.

 

12.           No
Waiver. No failure on the part of Lender to exercise, and no delay in exercising, any right, remedy or power hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise by Lender of any right, remedy or power hereunder preclude
any other or future exercise of any other legal right, remedy or power. Each and every right, remedy and power hereby granted to
Lender or allowed it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by Lender
at any time and from time to time.

 

13.           Waiver
of Jury Trial. THE UNDERSIGNED DOES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY
ACTION OR PROCEEDING BASED ON OR WITH RESPECT TO THIS GUARANTY OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR RELATING OR INCIDENTAL
HERETO. THE UNDERSIGNED DOES HEREBY CERTIFY THAT NO REPRESENTATIVE OR AGENT OF LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS WAIVER OF RIGHT TO JURY TRIAL PROVISION.

 

    	 	6	 

     

    

 

14.           Governing
Law; Jurisdiction; Amendments. THIS INSTRUMENT CANNOT BE CHANGED OR TERMINATED ORALLY, AND SHALL BE GOVERNED, CONSTRUED
AND INTERPRETED AS TO VALIDITY, ENFORCEMENT AND IN ALL OTHER RESPECTS IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
THE UNDERSIGNED EXPRESSLY CONSENTS TO THE JURISDICTION AND VENUE OF THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY OF NEW
YORK, AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK FOR ALL PURPOSES IN CONNECTION HEREWITH.
ANY JUDICIAL PROCEEDING BY THE UNDERSIGNED AGAINST LENDER INVOLVING, DIRECTLY OR INDIRECTLY ANY MATTER OR CLAIM IN ANY WAY
ARISING OUT OF, RELATED TO OR CONNECTED HEREWITH SHALL BE BROUGHT ONLY IN THE SUPREME COURT OF THE STATE OF NEW YORK, COUNTY
OF NEW YORK OR THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK. THE UNDERSIGNED FURTHER CONSENTS THAT
ANY SUMMONS, SUBPOENA OR OTHER PROCESS OR PAPERS (INCLUDING, WITHOUT LIMITATION, ANY NOTICE OR MOTION OR OTHER APPLICATION TO
EITHER OF THE AFOREMENTIONED COURTS OR A JUDGE THEREOF) OR ANY NOTICE IN CONNECTION WITH ANY PROCEEDINGS HEREUNDER, MAY BE
SERVED INSIDE OR OUTSIDE OF THE STATE OF NEW YORK OR THE SOUTHERN DISTRICT OF NEW YORK BY REGISTERED OR CERTIFIED MAIL,
RETURN RECEIPT REQUESTED, OR BY PERSONAL SERVICE PROVIDED A REASONABLE TIME FOR APPEARANCE IS PERMITTED, OR IN SUCH OTHER
MANNER AS MAY BE PERMISSIBLE UNDER THE RULES OF SAID COURTS. THE UNDERSIGNED WAIVES ANY OBJECTION TO JURISDICTION AND VENUE
OF ANY ACTION INSTITUTED HEREON AND SHALL NOT ASSERT ANY DEFENSE BASED ON LACK OF JURISDICTION OR VENUE OR BASED UPON FORUM
NON CONVENIENS.

 

15.           Severability.
To the extent permitted by applicable law, any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

 

16.           Amendments,
Waivers. No amendment or waiver of any provision of this Guaranty nor consent to any departure by the undersigned therefrom
shall in any event be effective unless the same shall be in writing executed by the undersigned and Lender.

 

17.           Notice.
All notices, requests and demands to or upon the undersigned, shall be in writing and shall be deemed to have been duly given or
made (a) when delivered, if by hand, (b) three (3) days after being sent, postage prepaid, if by registered or certified mail,
(c) when confirmed electronically, if by facsimile, or (d) when delivered, if by a recognized overnight delivery service in each
event, to the numbers and/or address set forth beneath the signature of the undersigned.

 

    	 	7	 

     

    

 

18.           Successors.
Lender may, from time to time, without notice to the undersigned, sell, assign, transfer or otherwise dispose of all or any
part of the Obligations and/or rights under this Guaranty. Without limiting the generality of the foregoing, Lender may
assign, or grant participations to, one or more banks, financial institutions or other entities all or any part of any of the
Obligations. In each such event, Lender, its Affiliates and each and every immediate and successive purchaser, assignee,
transferee or holder of all or any part of the Obligations shall have the right to enforce this Guaranty, by legal action or
otherwise, for its own benefit as fully as if such purchaser, assignee, transferee or holder were herein by name specifically
given such right. Lender shall have an unimpaired right to enforce this Guaranty for its benefit with respect to that portion
of the Obligations which Lender has not disposed of, sold, assigned, or otherwise transferred.

 

19.           Release.
Nothing except cash payment in full of the Obligations shall release the undersigned from liability under this Guaranty.

 

20.           Intercreditor
Agreement. Notwithstanding anything contained in this Guaranty to the contrary, including, but not limited to Sections 4 and
6 hereof, Lender’s rights under this Guaranty shall at all time be subject to the terms and conditions set forth in that
certain Intercreditor Agreement, dated the date hereof, between Lender and Worldwide Stock Transfer, LLC (“Worldwide”),
it its capacity as the Indenture Trustee with respect to the senior secured notes to be issued by Guarantor pursuant to the Indenture,
dated as the date hereof, among Guarantor, Borrower and Worldwide.

 

21.           Negative
Pledge. Until the full and final satisfaction of the Obligations and termination of the Credit Agreement, Guarantor shall not
consent to the creation, incurrence, assumption, sufferance or existence of any mortgage, security interest, lien or encumbrance
on any of its assets other than to the indenture trustee under the Permitted Bond Transaction Documentation.

 

22.           Covenant
Regarding Permitted Bond Transaction Documentation. Until the full and final satisfaction of the Obligations and termination
of the Credit Agreement, Guarantor shall not amend, supplement, modify or restate the terms of the Permitted Bond Transaction Documentation
in a manner that either (a) increases the interest rate above seven percent (7%), excluding the imposition of the default rate
of interest; (b) extends the stated maturity; or (c) increases the outstanding aggregate principal amount of the senior secured
notes issued pursuant to the Permitted Bond Transaction Documentation.

 

 

    	 	8	 

     

    

 

23.           Transferred
Mortgage Files. With regard to any Mortgage Files purchased by or transferred to Guarantor pursuant to Sections 4.3(b),
4.3(c), 7.11(v) or 7.11(vi) of the Credit Agreement, Guarantor acknowledges and agrees that Lender does not make any oral or
written representations, warranties, promises or guarantees whatsoever, whether express or implied, concerning or with regard
to, and Lender expressly disclaims any liability or obligation with respect to, concerning or relating to any aspect of the
Mortgage Loans or any collateral thereof, including, without limitation, any of the following: (i) the value, condition or
profitability of the Mortgaged Property; (ii) title or ownership to or of the Mortgaged Property, or any portion or part
thereof; (iii) governmental laws and any other restrictions applicable to the Mortgaged Property; (iv) claims by third
parties against Borrower or any Mortgage Customer; (v) the creditworthiness, financial condition or ability of any Mortgage
Customer or any guarantor to fulfill its obligations to pay its respective debts as they mature; (vi) the collectability of
the Mortgage Loans; (vii) the legality, validity, sufficiency or enforceability of any of the Mortgage Loan Documents, and
(viii) the validity, enforceability, attachment, priority or perfection of any security interest granted pursuant to the
Mortgage Loan Documents. Guarantor shall not be entitled to any other materials from Lender, including, but not limited to,
materials that are attorney-client privileged, or prepared in connection with anticipated or actual litigation, or otherwise
subject to confidentiality agreements, internal memoranda, analysis, ratings or reports prepared by Lender in connection with
the Mortgage Loans or the transactions completed by the Credit Agreement. Guarantor acknowledges that it will have made such
examinations, reviews and investigations as it deems necessary or appropriate in making its decision to purchase the Mortgage
Loans. Guarantor has been and will continue to be solely responsible for making its own independent investigation of the
Mortgage Loan Documents. Guarantor further acknowledges and agrees that Lender has not given to Guarantor any
investment advice, credit information or opinion on whether the purchase of the Mortgage Customers obligations under the
Mortgage Loans is prudent. Guarantor hereby accepts the Mortgage Loans on an “as is, where is, with all faults”
basis, without recourse to Lender and without any representations or warranties. Guarantor covenants and agrees that it not
will assert any claims against Lender relating to the Mortgage Loans and Mortgage Files transferred to it pursuant to
Sections 4.3(b), 4.3(c), 7.11(v) or 7.11(vi) of the Credit Agreement.

 

 

 

[Signature Page to Follow]

    	 	9	 

     

    

 

IN WITNESS WHEREOF, this
Guaranty has been executed by the undersigned as of the date set forth above.

 

	 	MBC FUNDING II CORP. 
	 	 	 
	 	 	 
	 	By:	/s/ Assaf Ran	 
	 	 	Assaf Ran
	 	 	Chief Executive Officer
	 	 	 
	 	 	 
	 	 	Address: 60 Cutter Mill Road, Suite 205 

Great Neck, New York 11201
	 	 	 
	 	 	 
	 	 	Telephone: _____________
	 	 	Facsimile: ______________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Signature Page to Guaranty
(Corporate)

     

     

    

 

	STATE
    OF NEW YORK	)
	 	):
    ss.: 
	COUNTY OF NEW YORK	)

 

On the 21st day
of April 2016, before me personally came Assaf Ran to me known, who being by me duly sworn, did did depose and say s/he is the
President of the corporation described in and which executed the foregoing instrument; and that she signed her/his name thereto
by order of the board of directors of said corporation.

 

 

	 	/s/ Stephen A. Zelnick	 
	 	Notary Public	 
	 	 
	 	[NOTARY PUBLIC SEAL STAMP]

 

 

 

 

 

 

 

 

 

Signature Page to Guaranty
(Corporate)

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