Document:

EX-10.5

 Exhibit 10.5 
 St. Andrews Apartments 
 MULTIFAMILY NOTE 

 

			
	US $17,969,000.00	 	As of September 1, 2010

 FOR VALUE RECEIVED, the undersigned (“Borrower”) jointly and severally (if more
than one) promises to pay to the order of CWCAPITAL LLC, a Massachusetts limited liability company, the principal sum of Seventeen Million Nine Hundred Sixty-Nine Thousand and 00/100 Dollars (US $17,969,000.00), with interest accruing at the
Interest Rate on the unpaid principal balance from the Disbursement Date until fully paid. 
 1. Defined Terms. In
addition to defined terms found elsewhere in this Note, as used in this Note, the following definitions shall apply: 

Amortization Period: 360 months. 
 Business Day: Any day other than a Saturday, Sunday or any other day on which Lender is not open for business. 
 Debt Service Amounts: Amounts payable under this Note, the Security Instrument or any other Loan Document. 
 Disbursement Date: The date of disbursement of Loan proceeds hereunder. 

Default Rate: A rate equal to the lesser of 4 percentage points above the Interest Rate or the maximum interest rate which may be
collected from Borrower under applicable law. 
 First Interest Only Payment Date: The first day of October, 2010.

 First Principal and Interest Payment Date: The first day of October, 2012. 

Indebtedness: The principal of, interest on, or any other amounts due at any time under, this Note, the Security Instrument or any
other Loan Document, including prepayment premiums, late charges, default interest, and advances to protect the security of the Security Instrument under Section 12 of the Security Instrument. 

Interest Only Term: 24 months. 
 Interest Rate: The annual rate of four and two hundred forty-five thousandths percent (4.245%). 
 Last Interest Only Payment Date: The first day of September, 2012. 

Lender: The holder of this Note. 
 Loan: The loan evidenced by this Note. 
 Loan Term: 84 months.

  

					
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	Note – GEORGIA	 	08-09        	 	© 2009 Fannie Mae
	Fannie Mae	 		 	

 Maturity Date: The first day of September, 2017, or any earlier date on which the
unpaid principal balance of this Note becomes due and payable by acceleration or otherwise. 
 Property Jurisdiction: The
jurisdiction in which the Land is located. 
 Security Instrument: A multifamily mortgage, deed to secure debt or deed of
trust dated as of the date of this Note. 
 Yield Maintenance Period Term: 78 months. 

Yield Maintenance Period End Date: The last day of February, 2017. 
 Event of Default, Key Principal and other capitalized terms used but not defined in this Note shall have the meanings given to such terms in the Security Instrument. 

2. Address for Payment. All payments due under this Note shall be payable at One Charles River Place, 63 Kendrick Street, Needham,
Massachusetts 02494, or such other place as may be designated by written notice to Borrower from or on behalf of Lender. 

3. Payment of Principal and Interest. Principal and interest shall be paid as follows: 

(a) Short Month Interest. If disbursement of principal is made by Lender to Borrower on any day other than the first day of the
month, interest for the period beginning on the Disbursement Date and ending on and including the last day of the month in which such disbursement is made shall be payable simultaneously with the execution of this Note. 

(b) Interest Computation. Interest under this Note shall be computed on the basis of (check one only): 

 

	 	 ̈	30/360. A 360-day year consisting of twelve 30-day months. 

  

	 	x	Actual/360. A 360-day year. The amount of each monthly payment made by Borrower pursuant to Paragraph 3(c) below that is allocated to interest will be based on
the actual number of calendar days during such month and shall be calculated by multiplying the unpaid principal balance of this Note by the per annum Interest Rate, dividing the product by 360 and multiplying the quotient by the actual number of
days elapsed during the month. Borrower understands that the amount allocated to interest for each month will vary depending on the actual number of calendar days during such month. 

(c) Monthly Installments: 
 (1) Interest Only Period. Commencing on the First Interest Only Payment Date and on the first day of every month until and including the Last Interest Only Payment Date, consecutive monthly
installments of interest only shall be payable and in an amount equal to one of the following (check one only): 
  

	 	 ̈	30/360. If interest accrues based on a 30/360 interest computation, then consecutive monthly installments of interest only, each in the amount of
                     Dollars (US $        ). 

  

					
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	Note – GEORGIA	 	08-09        	 	© 2009 Fannie Mae
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	 	x	Actual/360. If interest accrues based on an Actual/360 interest computation, the amount of Sixty-Three Thousand Five Hundred Sixty-Five and 34/100 Dollars (US
$63,565.34) shall be payable on the First Interest Only Payment Date and thereafter consecutive monthly installments of interest only, shall be payable as follows: 

 

	 	(1)	Fifty-Nine Thousand Three Hundred Twenty-Seven and 65/100 Dollars (US $59,327.65), shall be payable on the first day of each month during the term hereof which follows
a 28-day month; 

  

	 	(2)	Sixty-One Thousand Four Hundred Forty-Six and 49/100 Dollars (US $61,446.49), shall be payable on the first day of each month during the term hereof which follows a
29-day month, 

  

	 	(3)	Sixty-Three Thousand Five Hundred Sixty-Five and 34/100 Dollars (US $63,565.34), shall be payable on the first day of each month during the term hereof which follows a
30-day month, or 

  

	 	(4)	Sixty-Five Thousand Six Hundred Eighty-Four and 18/100 Dollars (US $65,684.18), shall be payable on the first day of each month during the term hereof which follows a
31-day month, 

 (2) Amortizing Period. Commencing on the First Principal and Interest
Payment Date and on the first day of every month thereafter, consecutive monthly installments of principal and interest, each in the amount of Eighty-Eight Thousand Three Hundred Forty-Four and 09/100 Dollars (US $88,344.09), until the entire unpaid
principal balance evidenced by this Note is fully paid. 
 Any remaining principal and interest shall be due and payable on the Maturity Date.
The unpaid principal balance shall continue to bear interest after the Maturity Date at the Default Rate set forth in this Note until and including the date on which it is paid in full. 

(d) Payments Before Due Date. Any regularly scheduled monthly installment of interest only (during the interest-only period set
forth in paragraph 3(c) above) or principal and interest (during the period in which principal and interest is due also as set forth in paragraph 3(c) above) that is received by Lender before the date it is due shall be deemed to have been received
on the due date solely for the purpose of calculating interest due. 
 (e) Accrued Interest. Any accrued interest
remaining past due for 30 days or more shall be added to and become part of the unpaid principal balance and shall bear interest at the rate or rates specified in this Note. Any reference herein to “accrued interest” shall refer to accrued
interest which has not become part of the unpaid principal balance. Any amount added to principal pursuant to the Loan Documents shall bear interest at the applicable rate or rates specified in this Note and shall be payable with such interest upon
demand by Lender and absent such demand, as provided in this Note for the payment of principal and interest. 

  

					
	Multifamily Partial Interest Only Fixed Rate –	 	Form 4111-PIO	 	Page 3
	Note – GEORGIA	 	08-09        	 	© 2009 Fannie Mae
	Fannie Mae	 		 	

 4. Application of Payments. If at any time Lender receives, from Borrower or
otherwise, any amount applicable to the Indebtedness which is less than all amounts due and payable at such time, Lender may apply that payment to amounts then due and payable in any manner and in any order determined by Lender, in Lender’s
discretion. Borrower agrees that neither Lender’s acceptance of a payment from Borrower in an amount that is less than all amounts then due and payable nor Lender’s application of such payment shall constitute or be deemed to constitute
either a waiver of the unpaid amounts or an accord and satisfaction. 
 5. Security. The Indebtedness is secured, among
other things, by the Security Instrument, and reference is made to the Security Instrument for other rights of Lender concerning the collateral for the Indebtedness. 
 6. Acceleration. If an Event of Default has occurred and is continuing, the entire unpaid principal balance, any accrued interest, the prepayment premium payable under Paragraph 10, if any, and all
other amounts payable under this Note and any other Loan Document shall at once become due and payable, at the option of Lender, without any prior notice to Borrower. Lender may exercise this option to accelerate regardless of any prior forbearance.

 7. Late Charge. If any monthly installment due hereunder is not received by Lender on or before the 10th day of each
month or if any other amount payable under this Note or under the Security Instrument or any other Loan Document is not received by Lender within 10 days after the date such amount is due, counting from and including the date such amount is due,
Borrower shall pay to Lender, immediately and without demand by Lender, a late charge equal to 5 percent of such monthly installment or other amount due. Borrower acknowledges that its failure to make timely payments will cause Lender to incur
additional expenses in servicing and processing the Loan and that it is extremely difficult and impractical to determine those additional expenses. Borrower agrees that the late charge payable pursuant to this Paragraph represents a fair and
reasonable estimate, taking into account all circumstances existing on the date of this Note, of the additional expenses Lender will incur by reason of such late payment. The late charge is payable in addition to, and not in lieu of, any interest
payable at the Default Rate pursuant to Paragraph 8. 
 8. Default Rate. So long as any monthly installment or any other
payment due under this Note remains past due for 30 days or more, interest under this Note shall accrue on the unpaid principal balance from the earlier of the due date of the first unpaid monthly installment or other payment due, as applicable, at
the Default Rate. If the unpaid principal balance and all accrued interest are not paid in full on the Maturity Date, the unpaid principal balance and all accrued interest shall bear interest from the Maturity Date at the Default Rate. Borrower also
acknowledges that its failure to make timely payments will cause Lender to incur additional expenses in servicing and processing the Loan, that, during the time that any monthly installment or payment under this Note is delinquent for more than 30
days, Lender will incur additional costs and expenses arising from its loss of the use of the money due and from the adverse impact on Lender’s ability to meet its other obligations and to take advantage of other investment

  

					
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	Note – GEORGIA	 	08-09        	 	© 2009 Fannie Mae
	Fannie Mae	 		 	

 
opportunities, and that it is extremely difficult and impractical to determine those additional costs and expenses. Borrower also acknowledges that, during the time that any monthly installment
or other payment due under this Note is delinquent for more than 30 days, Lender’s risk of nonpayment of this Note will be materially increased and Lender is entitled to be compensated for such increased risk. Borrower agrees that the increase
in the rate of interest payable under this Note to the Default Rate represents a fair and reasonable estimate, taking into account all circumstances existing on the date of this Note, of the additional costs and expenses Lender will incur by reason
of the Borrower’s delinquent payment and the additional compensation Lender is entitled to receive for the increased risks of nonpayment associated with a delinquent loan. 

9. Limits on Personal Liability. 
 (a) Except as otherwise provided in this Paragraph 9, Borrower shall have no personal liability under this Note, the Security Instrument or any other Loan Document for the repayment of the Indebtedness or
for the performance of any other obligations of Borrower under the Loan Documents, and Lender’s only recourse for the satisfaction of the Indebtedness and the performance of such obligations shall be Lender’s exercise of its rights and
remedies with respect to the Mortgaged Property (as such term is defined in the Security Instrument) and any other collateral held by Lender as security for the Indebtedness. This limitation on Borrower’s liability shall not limit or impair
Lender’s enforcement of its rights against any guarantor of the Indebtedness or any guarantor of any obligations of Borrower. 
 (b) Borrower shall be personally liable to Lender for the repayment of a portion of the Indebtedness equal to any loss or damage suffered by Lender as a result of: 

(1) failure of Borrower to pay to Lender upon demand after an Event of Default, all Rents to which Lender is entitled
under Section 3(a) of the Security Instrument and the amount of all security deposits collected by Borrower from tenants then in residence; 
 (2) failure of Borrower to apply all insurance proceeds and condemnation proceeds as required by the Security Instrument; 

(3) failure of Borrower to comply with Section 14(d) or (e) of the Security Instrument relating to the delivery
of books and records, statements, schedules and reports; 
 (4) fraud or written material misrepresentation by
Borrower, Key Principal or any officer, director, partner, member or employee of Borrower in connection with the application for or creation of the Indebtedness or any request for any action or consent by Lender; 

(5) failure to apply Rents, first, to the payment of reasonable operating expenses (other than Property management fees
that are not currently payable pursuant to the terms of an Assignment of Management Agreement or any other agreement with Lender executed in connection with the Loan) and then to Debt Service Amounts, except that Borrower will not be personally
liable (i) to the extent that Borrower lacks the legal right to direct the disbursement of such sums because of a bankruptcy, receivership or 

  

					
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	Note – GEORGIA	 	08-09        	 	© 2009 Fannie Mae
	Fannie Mae	 		 	

 
similar judicial proceeding, or (ii) with respect to Rents that are distributed in any calendar year if Borrower has paid all operating expenses and Debt Service Amounts for that calendar
year; or 
 (6) failure by Borrower to comply with the provisions of Section 17(a) of the Security
Instrument. 
 (c) Borrower shall become personally liable to Lender for the repayment of all of the Indebtedness upon the
occurrence of any of the following Events of Default: 
 (1) Borrower’s acquisition of any property or
operation of any business not permitted by Section 33 of the Security Instrument; 
 (2) a Transfer that is
an Event of Default under Section 21 of the Security Instrument; or 
 (3) the occurrence of a Bankruptcy
Event (but only if the Bankruptcy Event occurs with the consent, encouragement or active participation of Borrower, Key Principal or any Borrower Affiliate). 
 (d) To the extent that Borrower has personal liability under this Paragraph 9, Lender may exercise its rights against Borrower personally without regard to whether Lender has exercised any rights against
the Mortgaged Property or any other security, or pursued any rights against any guarantor, or pursued any other rights available to Lender under this Note, the Security Instrument, any other Loan Document or applicable law. For purposes of this
Paragraph 9, the term “Mortgaged Property” shall not include any funds that (1) have been applied by Borrower as required or permitted by the Security Instrument prior to the occurrence of an Event of Default, or (2) Borrower was
unable to apply as required or permitted by the Security Instrument because of a bankruptcy, receivership, or similar judicial proceeding. 
 10. Voluntary and Involuntary Prepayments. 
 (a) A prepayment
premium shall be payable in connection with any prepayment made under this Note as provided below: 
 (1)
Borrower may voluntarily prepay all (but not less than all) of the unpaid principal balance of this Note only on the last calendar day of a calendar month (the “Last Day of the Month”) and only if Borrower has complied with all of the
following: 
  

	 	(i)	Borrower must give Lender at least 30 days (if given via U.S. Postal Service) or 20 days (if given via facsimile, email or overnight courier), but not more than 60
days, prior written notice of Borrower’s intention to make a prepayment (the “Prepayment Notice”). The Prepayment Notice shall be given in writing (via facsimile, email, U.S. Postal Service or overnight courier) and addressed to
Lender. The Prepayment Notice shall include, at a minimum, the Business Day upon which Borrower intends to make the prepayment (the “Intended Prepayment Date”). 

  

					
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	Fannie Mae	 		 	

	 	(ii)	Borrower acknowledges that the Lender is not required to accept any voluntary prepayment of this Note on any day other than the Last Day of the Month even if Borrower
has given a Prepayment Notice with an Intended Prepayment Date other than the Last Day of the Month or if the Last Day of the Month is not a Business Day. Therefore, even if Lender accepts a voluntary prepayment on any day other than the Last Day of
the Month, for all purposes (including the accrual of interest and the calculation of the prepayment premium), any prepayment received by Lender on any day other than the Last Day of the Month shall be deemed to have been received by Lender on the
Last Day of the Month and any prepayment calculation will include interest to and including the Last Day of the Month in which such prepayment occurs. If the Last Day of the Month is not a Business Day, then the Borrower must make the payment on the
Business Day immediately preceding the Last Day of the Month. 

  

	 	(iii)	Any prepayment shall be made by paying (A) the amount of principal being prepaid, (B) all accrued interest (calculated to the Last Day of the Month),
(C) all other sums due Lender at the time of such prepayment, and (D) the prepayment premium calculated pursuant to Schedule A. 

  

	 	(iv)	If, for any reason, Borrower fails to prepay this Note (A) within five (5) Business Days after the Intended Prepayment Date or (B) if the prepayment
occurs in a month other than the month stated in the original Prepayment Notice, then Lender shall have the right, but not the obligation, to recalculate the prepayment premium based upon the date that Borrower actually prepays this Note and to make
such calculation as described in Schedule A attached hereto. For purposes of such recalculation, such new prepayment date shall be deemed the “Intended Prepayment Date.” 

(2) Upon Lender’s exercise of any right of acceleration under this Note, Borrower shall pay to Lender, in addition to
the entire unpaid principal balance of this Note outstanding at the time of the acceleration, (i) all accrued interest and all other sums due Lender under this Note and the other Loan Documents, and (ii) the prepayment premium calculated
pursuant to Schedule A. 
 (3) Any application by Lender of any collateral or other security to the repayment of
any portion of the unpaid principal balance of this Note prior to the Maturity Date and in the absence of acceleration shall be deemed to be a partial prepayment by Borrower, requiring the payment to Lender by Borrower of a prepayment premium.

 (b) Notwithstanding the provisions of Paragraph 10(a), no prepayment premium shall be payable (1) with respect to any
prepayment occurring as a result of the application of any insurance proceeds or condemnation award under the Security Instrument, or (2) as provided in subparagraph (c) of Schedule A. 

  

					
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	Fannie Mae	 		 	

 (c) Schedule A is hereby incorporated by reference into this Note. 

(d) Any required prepayment of less than the entire unpaid principal balance of this Note shall not extend or postpone the due date of
any subsequent monthly installments or change the amount of such installments, unless Lender agrees otherwise in writing. 
 (e)
Borrower recognizes that any prepayment of the unpaid principal balance of this Note, whether voluntary or involuntary or resulting from a default by Borrower, will result in Lender’s incurring loss, including reinvestment loss, additional
expense and frustration or impairment of Lender’s ability to meet its commitments to third parties. Borrower agrees to pay to Lender upon demand damages for the detriment caused by any prepayment, and agrees that it is extremely difficult and
impractical to ascertain the extent of such damages. Borrower therefore acknowledges and agrees that the formula for calculating prepayment premiums set forth on Schedule A represents a reasonable estimate of the damages Lender will incur because of
a prepayment. 
 (f) Borrower further acknowledges that the prepayment premium provisions of this Note are a material part of
the consideration for the loan evidenced by this Note, and acknowledges that the terms of this Note are in other respects more favorable to Borrower as a result of the Borrower’s voluntary agreement to the prepayment premium provisions.

 11. Costs and Expenses. Borrower shall pay on demand all expenses and costs, including fees and out-of-pocket expenses
of attorneys and expert witnesses and costs of investigation, incurred by Lender as a result of any default under this Note or in connection with efforts to collect any amount due under this Note, or to enforce the provisions of any of the other
Loan Documents, including those incurred in post-judgment collection efforts and in any bankruptcy proceeding (including any action for relief from the automatic stay of any bankruptcy proceeding) or judicial or non-judicial foreclosure proceeding.

 12. Forbearance. Any forbearance by Lender in exercising any right or remedy under this Note, the Security Instrument,
or any other Loan Document or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of that or any other right or remedy. The acceptance by Lender of any payment after the due date of such payment, or in an amount
which is less than the required payment, shall not be a waiver of Lender’s right to require prompt payment when due of all other payments or to exercise any right or remedy with respect to any failure to make prompt payment. Enforcement by
Lender of any security for Borrower’s obligations under this Note shall not constitute an election by Lender of remedies so as to preclude the exercise of any other right or remedy available to Lender. 

13. Waivers. Presentment, demand, notice of dishonor, protest, notice of acceleration, notice of intent to demand or accelerate
payment or maturity, presentment for payment, notice of nonpayment, grace, and diligence in collecting the Indebtedness are waived by Borrower, Key Principal, and all endorsers and guarantors of this Note and all other third party obligors.

  

					
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 14. Loan Charges. Borrower agrees to pay an effective rate of interest equal to the
sum of the Interest Rate provided for in this Note and any additional rate of interest resulting from any other charges of interest or in the nature of interest paid or to be paid in connection with the loan evidenced by this Note and any other fees
or amounts to be paid by Borrower pursuant to any of the other Loan Documents. Neither this Note nor any of the other Loan Documents shall be construed to create a contract for the use, forbearance or detention of money requiring payment of interest
at a rate greater than the maximum interest rate permitted to be charged under applicable law. If any applicable law limiting the amount of interest or other charges permitted to be collected from Borrower in connection with the Loan is interpreted
so that any interest or other charge provided for in any Loan Document, whether considered separately or together with other charges provided for in any other Loan Document, violates that law, and Borrower is entitled to the benefit of that law,
that interest or charge is hereby reduced to the extent necessary to eliminate that violation. The amounts, if any, previously paid to Lender in excess of the permitted amounts shall be applied by Lender to reduce the unpaid principal balance of
this Note. For the purpose of determining whether any applicable law limiting the amount of interest or other charges permitted to be collected from Borrower has been violated, all Indebtedness that constitutes interest, as well as all other charges
made in connection with the Indebtedness that constitute interest, shall be deemed to be allocated and spread ratably over the stated term of the Note. Unless otherwise required by applicable law, such allocation and spreading shall be effected in
such a manner that the rate of interest so computed is uniform throughout the stated term of the Note. 
 15. Commercial
Purpose. Borrower represents that the Indebtedness is being incurred by Borrower solely for the purpose of carrying on a business or commercial enterprise, and not for personal, family or household purposes. 

16. Counting of Days. Except where otherwise specifically provided, any reference in this Note to a period of “days”
means calendar days, not Business Days. 
 17. Governing Law. This Note shall be governed by the law of the jurisdiction
in which the Land is located. 
 18. Captions. The captions of the paragraphs of this Note are for convenience only and
shall be disregarded in construing this Note. 
 19. Notices. All notices, demands and other communications required or
permitted to be given by Lender to Borrower pursuant to this Note shall be given in accordance with Section 31 of the Security Instrument. 
 20. Consent to Jurisdiction and Venue. Borrower and Key Principal each agrees that any controversy arising under or in relation to this Note 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 Note. Borrower and Key Principal each
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. 

  

					
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 21. WAIVER OF TRIAL BY JURY. BORROWER, KEY PRINCIPAL AND LENDER EACH (A) AGREES NOT
TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS NOTE OR THE RELATIONSHIP BETWEEN THE PARTIES, AS LENDER, KEY PRINCIPAL AND BORROWER, 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 SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL. 

ATTACHED SCHEDULES. The following Schedules are attached to this Note: 

 

	 	x	Schedule A Prepayment Premium (required) 

  

	 	x	Schedule B Modifications to Multifamily Note 

  

					
	Multifamily Partial Interest Only Fixed Rate –	 	Form 4111-PIO	 	Page 10
	Note – GEORGIA	 	08-09        	 	© 2009 Fannie Mae
	Fannie Mae	 		 	

 IN WITNESS WHEREOF, Borrower has signed and delivered this Note under seal or has
caused this Note to be signed and delivered under seal by its duly authorized representative. Borrower intends that this Note shall be deemed to be signed and delivered as a sealed instrument. 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 

  

					
	Multifamily Partial Interest Only Fixed Rate –	 	Form 4111-PIO	 	Page 11
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	Fannie Mae	 		 	

 
									
	BORROWER:
	
	BSF/BR AUGUSTA, LLC, a Florida limited liability company
		
	By:	 	BSF/BR Augusta JV, LLC, a Delaware limited liability company, its Sole Member
			
		 	By:	 	BSF-TSC GP, LLC, Delaware limited liability company, its Manager
				
		 	By:	 	 /s/ Michael Baumann
	 	(SEAL)
		 		 	Michael Baumann
		 		 	Manager
		
	By:	 	BR Augusta JV Member, LLC, a Delaware limited liability company, its Manager
				
		 	By:	 	 /s/ James Babb
	 	(SEAL)
		 		 	Name:	 	James Babb
		 		 	Authorized Signatory

  

					
	Multifamily Partial Interest Only Fixed Rate –	 	Form 4111-PIO	 	Page 12
	Note – GEORGIA	 	08-09        	 	© 2009 Fannie Mae
	Fannie Mae	 		 	

 
							
	 PAY TO THE ORDER OF

	
	                          
                          , WITHOUT RECOURSE
	
	CWCAPITAL LLC, a Massachusetts limited liability company
			
	By:	 	 /s/ Paul A. Sherrington
	 	(SEAL)
		 	Name:	 	Paul A. Sherrington	 	
		 	Title:	 	Senior Vice President, General Counsel

 Fannie Mae Commitment No. 862507 

  

					
	Multifamily Partial Interest Only Fixed Rate –	 	Form 4111-PIO	 	Page 13
	Note – GEORGIA	 	08-09        	 	© 2009 Fannie Mae
	Fannie MaeEX-10.6

 Exhibit 10.6 
 MULTIFAMILY DEED TO SECURE DEBT, 
 ASSIGNMENT OF RENTS

 AND SECURITY AGREEMENT 
 (GEORGIA) 
  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09
	GEORGIA	 	© 1997-2009 Fannie Mae

 TABLE OF CONTENTS 

 

							
	 1.
	    	 DEFINITIONS
	  	 	1	  
			
	 2.
	    	 UNIFORM COMMERCIAL CODE SECURITY AGREEMENT
	  	 	6	  
			
	 3.
	    	 ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION
	  	 	7	  
			
	 4.
	    	 ASSIGNMENT OF LEASES; LEASES AFFECTING THE MORTGAGED PROPERTY
	  	 	9	  
			
	 5.
	    	 PAYMENT OF INDEBTEDNESS; PERFORMANCE UNDER LOAN DOCUMENTS; PREPAYMENT PREMIUM
	  	 	11	  
			
	 6.
	    	 EXCULPATION
	  	 	11	  
			
	 7.
	    	 DEPOSITS FOR TAXES, INSURANCE AND OTHER CHARGES
	  	 	11	  
			
	 8.
	    	 COLLATERAL AGREEMENTS
	  	 	12	  
			
	 9.
	    	 APPLICATION OF PAYMENTS
	  	 	12	  
			
	 10.
	    	 COMPLIANCE WITH LAWS
	  	 	13	  
			
	 11.
	    	 USE OF PROPERTY
	  	 	13	  
			
	 12.
	    	 PROTECTION OF LENDER’S SECURITY
	  	 	13	  
			
	 13.
	    	 INSPECTION
	  	 	14	  
			
	 14.
	    	 BOOKS AND RECORDS; FINANCIAL REPORTING
	  	 	14	  
			
	 15.
	    	 TAXES; OPERATING EXPENSES
	  	 	15	  
			
	 16.
	    	 LIENS; ENCUMBRANCES
	  	 	16	  
			
	 17.
	    	 PRESERVATION, MANAGEMENT AND MAINTENANCE OF MORTGAGED PROPERTY
	  	 	16	  
			
	 18.
	    	 ENVIRONMENTAL HAZARDS
	  	 	17	  
			
	 19.
	    	 PROPERTY AND LIABILITY INSURANCE
	  	 	22	  
			
	 20.
	    	 CONDEMNATION
	  	 	24	  
			
	 21.
	    	 TRANSFERS OF THE MORTGAGED PROPERTY OR INTERESTS IN BORROWER
	  	 	24	  
			
	 22.
	    	 EVENTS OF DEFAULT
	  	 	29	  
			
	 23.
	    	 REMEDIES CUMULATIVE
	  	 	30	  
			
	 24.
	    	 FORBEARANCE
	  	 	30	  
			
	 25.
	    	 LOAN CHARGES
	  	 	31	  
			
	 26.
	    	 WAIVER OF STATUTE OF LIMITATIONS
	  	 	31	  
			
	 27.
	    	 WAIVER OF MARSHALLING
	  	 	31	  

  

			
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	 28.
	    	 FURTHER ASSURANCES
	  	 	31	  
			
	 29.
	    	 ESTOPPEL CERTIFICATE
	  	 	32	  
			
	 30.
	    	 GOVERNING LAW; CONSENT TO JURISDICTION AND VENUE
	  	 	32	  
			
	 31.
	    	 NOTICE
	  	 	32	  
			
	 32.
	    	 SALE OF NOTE; CHANGE IN SERVICER
	  	 	33	  
			
	 33.
	    	 SINGLE ASSET BORROWER
	  	 	33	  
			
	 34.
	    	 SUCCESSORS AND ASSIGNS BOUND
	  	 	33	  
			
	 35.
	    	 JOINT AND SEVERAL LIABILITY
	  	 	33	  
			
	 36.
	    	 RELATIONSHIP OF PARTIES; NO THIRD PARTY BENEFICIARY
	  	 	33	  
			
	 37.
	    	 SEVERABILITY; AMENDMENTS
	  	 	34	  
			
	 38.
	    	 CONSTRUCTION
	  	 	34	  
			
	 39.
	    	 LOAN SERVICING
	  	 	34	  
			
	 40.
	    	 DISCLOSURE OF INFORMATION
	  	 	34	  
			
	 41.
	    	 NO CHANGE IN FACTS OR CIRCUMSTANCES
	  	 	34	  
			
	 42.
	    	 SUBROGATION
	  	 	35	  
			
	 43.
	    	 ACCELERATION; REMEDIES
	  	 	35	  
			
	 44.
	    	 RELEASE
	  	 	36	  
			
	 45.
	    	 BORROWER’S WAIVER OF CERTAIN RIGHTS
	  	 	36	  
			
	 46.
	    	 DEED TO SECURE DEBT
	  	 	36	  
			
	 47.
	    	 ASSUMPTION NOT A NOVATION
	  	 	36	  
			
	 48.
	    	 WAIVER OF TRIAL BY JURY
	  	 	37	  

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page ii
	GEORGIA	 	© 1997-2009 Fannie Mae

 St. Andrews Apartments 

MULTIFAMILY DEED TO SECURE DEBT, 
 ASSIGNMENT OF RENTS 
 AND SECURITY AGREEMENT 

THIS MULTIFAMILY DEED TO SECURE DEBT, ASSIGNMENT OF RENTS AND SECURITY AGREEMENT (the “Instrument”) is dated as of the
1st day of September, 2010, between BSF/BR AUGUSTA, LLC, a limited liability company organized and existing under the laws of Florida, whose address is c/o Trade Street Capital, 19950 West Country Club Drive, Suite 801, Aventura, Florida
33180, as grantor (“Borrower”), and CWCAPITAL LLC, a limited liability company organized and existing under the laws of Massachusetts, whose address is One Charles River Place, 63 Kendrick Street, Needham,
Massachusetts 02494, as grantee (“Lender”). 
 Borrower is indebted to Lender in the principal amount of
Seventeen Million Nine Hundred Sixty-Nine Thousand and 00/100 Dollars ($17,969,000.00), as evidenced by Borrower’s Multifamily Note payable to Lender, dated as of the date of this Instrument, and maturing on September 1, 2017. 

TO SECURE TO LENDER the repayment of the Indebtedness, and all renewals, extensions and modifications of the Indebtedness, and the
performance of the covenants and agreements of Borrower contained in the Loan Documents, Borrower grants, conveys and assigns to Lender and Lender’s successors and assigns, with power of sale, the Mortgaged Property, including the Land located
in the County of Richmond, State of Georgia and described in Exhibit A attached to this Instrument. To have and to hold the Mortgaged Property unto Lender and Lender’s successors and assigns forever. As used in this Instrument, the term
“Mortgaged Property” is synonymous with the term “Secured Property,” and the term “lien” is synonymous with the term “security interest and title.” 

Borrower covenants that Borrower is lawfully seized of the Mortgaged Property and has the right, power and authority to grant, convey and
assign the Mortgaged Property, that the Mortgaged Property is unencumbered, and that Borrower will warrant and defend generally the title to the Mortgaged Property against all claims and demands, subject to any easements and restrictions listed in a
schedule of exceptions to coverage in any title insurance policy issued to Lender contemporaneously with the execution and recordation of this Instrument and insuring Lender’s interest in the Mortgaged Property. 

Covenants. Borrower and Lender covenant and agree as follows: 
 1. DEFINITIONS. 
 The following terms, when used in this Instrument
(including when used in the above recitals), shall have the following meanings: 
  

	 	(a)	“Borrower” means all persons or entities identified as “Borrower” in the first paragraph of this Instrument, together with their successors
and assigns. 

  

			
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 (b) “Collateral Agreement” means any separate agreement between
Borrower and Lender for the purpose of establishing replacement reserves for the Mortgaged Property, establishing a fund to assure completion of repairs or improvements specified in that agreement, or assuring reduction of the outstanding principal
balance of the Indebtedness if the occupancy of or income from the Mortgaged Property does not increase to a level specified in that agreement, or any other agreement or agreements between Borrower and Lender which provide for the establishment of
any other fund, reserve or account. 
 (c) “Environmental Permit” means any permit, license, or other
authorization issued under any Hazardous Materials Law with respect to any activities or businesses conducted on or in relation to the Mortgaged Property. 
 (d) “Event of Default” means the occurrence of any event listed in Section 22. 
 (e) “Fixtures” means all property which is so attached to the Land or the Improvements as to constitute a fixture under applicable law, including: machinery, equipment, engines,
boilers, incinerators, installed building materials; systems and equipment for the purpose of supplying or distributing heating, cooling, electricity, gas, water, air, or light; antennas, cable, wiring and conduits used in connection with radio,
television, security, fire prevention, or fire detection or otherwise used to carry electronic signals; telephone systems and equipment; elevators and related machinery and equipment; fire detection, prevention and extinguishing systems and
apparatus; security and access control systems and apparatus; plumbing systems; water heaters, ranges, stoves, microwave ovens, refrigerators, dishwashers, garbage disposers, washers, dryers and other appliances; light fixtures, awnings, storm
windows and storm doors; pictures, screens, blinds, shades, curtains and curtain rods; mirrors; cabinets, paneling, rugs and floor and wall coverings; fences, trees and plants; swimming pools; and exercise equipment. 

(f) “Governmental Authority” means any board, commission, department or body of any municipal, county, state or
federal governmental unit, or any subdivision of any of them, that has or acquires jurisdiction over the Mortgaged Property or the use, operation or improvement of the Mortgaged Property. 

(g) “Hazardous Materials” means petroleum and petroleum products and compounds containing them, including
gasoline, diesel fuel and oil; explosives; flammable materials; radioactive materials; polychlorinated biphenyls (“PCBs”) and compounds containing them; lead and lead-based paint; asbestos or asbestos-containing materials in any form that
is or could become friable; underground or above-ground storage tanks, whether empty or containing any substance; any substance the presence of which on the Mortgaged Property is prohibited by any federal, state or local authority; any substance
that requires special handling; and any other material or substance now or in the future defined as a “hazardous substance,” “hazardous material,” “hazardous waste,” “toxic substance,” “toxic
pollutant,” “contaminant,” or “pollutant” within the meaning of any Hazardous Materials Law. 
 (h)
“Hazardous Materials Laws” means all federal, state, and local laws, ordinances and regulations and standards, rules, policies and other governmental requirements, administrative rulings and court judgments and decrees in
effect now or in the future and 

  

			
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	GEORGIA	 	© 1997-2009 Fannie Mae

 
including all amendments, that relate to Hazardous Materials and apply to Borrower or to the Mortgaged Property. Hazardous Materials Laws include, but are not limited to, the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. Section 9601, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., the Toxic Substance Control Act, 15 U.S.C. Section 2601, et seq.,
the Clean Water Act, 33 U.S.C. Section 1251, et seq., and the Hazardous Materials Transportation Act, 49 U.S.C. Section 5101, et seq., and their state analogs. 
 (i) “Impositions” and “Imposition Deposits” are defined in Section 7(a). 
 (j) “Improvements” means the buildings, structures, improvements, and alterations now constructed or at any time in the future constructed or placed upon the Land, including any
future replacements and additions. 
 (k) “Indebtedness” means the principal of, interest on, and all
other amounts due at any time under, the Note, this Instrument or any other Loan Document, including prepayment premiums, late charges, default interest, and advances as provided in Section 12 to protect the security of this Instrument.

 (l) [Intentionally omitted] 
 (m) “Key Principal” means (A) the natural person(s) or entity identified as such at the foot of this Instrument; (B) the natural person or entity who signed either the
Acknowledgement and Agreement of Key Principal to Personal Liability for Exceptions to Non-Recourse Liability or the Exceptions to Non-Recourse Guaranty (or is otherwise a guarantor on the Indebtedness); and (C) any person or entity who becomes
a Key Principal after the date of this Instrument and is identified as such in an assumption agreement, or another amendment or supplement to this Instrument or who otherwise signs either the Acknowledgement and Agreement of Key Principal to
Personal Liability for Exceptions to Non-Recourse Liability or Exceptions to Non-Recourse Guaranty (or any other guaranty of the Indebtedness). 
 (n) “Land” means the land described in Exhibit A. 
 (o)
“Leases” means all present and future leases, subleases, licenses, concessions or grants or other possessory interests now or hereafter in force, whether oral or written, covering or affecting the Mortgaged Property, or any portion
of the Mortgaged Property (including proprietary leases or occupancy agreements if Borrower is a cooperative housing corporation), and all modifications, extensions or renewals. 

(p) “Lender” means the entity identified as “Lender” in the first paragraph of this Instrument and its
successors and assigns, or any subsequent holder of the Note. 
 (q) “Loan Documents” means the Note, this
Instrument, all guaranties, all indemnity agreements, all Collateral Agreements, O&M Programs, and any other documents now or in the future executed by Borrower, Key Principal, any guarantor or any other person in connection with the loan
evidenced by the Note, as such documents may be amended from time to time. 

  

			
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 (r) “Loan Servicer” means the entity that from time to time is designated
by Lender to collect payments and deposits and receive notices under the Note, this Instrument and any other Loan Document, and otherwise to service the loan evidenced by the Note for the benefit of Lender. Unless Borrower receives notice to the
contrary, the Loan Servicer is the entity identified as “Lender” in the first paragraph of this Instrument. 
 (s)
“Mortgaged Property” means all of Borrower’s present and future right, title and interest in and to all of the following: 
  

	 	(1)	the Land; 

  

	 	(2)	the Improvements; 

  

	 	(3)	the Fixtures; 

  

	 	(4)	the Personalty; 

  

	 	(5)	all current and future rights, including air rights, development rights, zoning rights and other similar rights or interests, easements, tenements, rights-of-way,
strips and gores of land, streets, alleys, roads, sewer rights, waters, watercourses, and appurtenances related to or benefitting the Land or the Improvements, or both, and all rights-of-way, streets, alleys and roads which may have been or may in
the future be vacated; 

  

	 	(6)	all proceeds paid or to be paid by any insurer of the Land, the Improvements, the Fixtures, the Personalty or any other part of the Mortgaged Property, whether or not
Borrower obtained the insurance pursuant to Lender’s requirement; 

  

	 	(7)	all awards, payments and other compensation made or to be made by any municipal, state or federal authority with respect to the Land, the Improvements, the Fixtures,
the Personalty or any other part of the Mortgaged Property, including any awards or settlements resulting from condemnation proceedings or the total or partial taking of the Land, the Improvements, the Fixtures, the Personalty or any other part of
the Mortgaged Property under the power of eminent domain or otherwise and including any conveyance in lieu thereof; 

  

	 	(8)	all contracts, options and other agreements for the sale of the Land, the Improvements, the Fixtures, the Personalty or any other part of the Mortgaged Property entered
into by Borrower now or in the future, including cash or securities deposited to secure performance by parties of their obligations; 

  

	 	(9)	all proceeds from the conversion, voluntary or involuntary, of any of the above into cash or liquidated claims, and the right to collect such proceeds;

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 4
	GEORGIA	 	© 1997-2009 Fannie Mae

	 	(10)	all Rents and Leases; 

  

	 	(11)	all earnings, royalties, accounts receivable, issues and profits from the Land, the Improvements or any other part of the Mortgaged Property, and all undisbursed
proceeds of the loan secured by this Instrument and, if Borrower is a cooperative housing corporation, maintenance charges or assessments payable by shareholders or residents; 

 

	 	(12)	all Imposition Deposits; 

  

	 	(13)	all refunds or rebates of Impositions by any municipal, state or federal authority or insurance company (other than refunds applicable to periods before the real
property tax year in which this Instrument is dated); 

  

	 	(14)	all tenant security deposits which have not been forfeited by any tenant under any Lease; and 

 

	 	(15)	all names under or by which any of the above Mortgaged Property may be operated or known, and all trademarks, trade names, and goodwill relating to any of the Mortgaged
Property. 

 (t) “Note” means the Multifamily Note described on page 1 of this Instrument,
including the Acknowledgment and Agreement of Key Principal to Personal Liability for Exceptions to Non-Recourse Liability (if any), and all schedules, riders, allonges and addenda, as such Multifamily Note may be amended from time to time.

 (u) “O&M Program” is defined in Section 18(a). 

(v) “Personalty” means all equipment, inventory, general intangibles which are used now or in the future in connection
with the ownership, management or operation of the Land or the Improvements or are located on the Land or in the Improvements, including furniture, furnishings, machinery, building materials, appliances, goods, supplies, tools, books, records
(whether in written or electronic form), computer equipment (hardware and software) and other tangible personal property (other than Fixtures) which are used now or in the future in connection with the ownership, management or operation of the Land
or the Improvements or are located on the Land or in the Improvements, and any operating agreements relating to the Land or the Improvements, and any surveys, plans and specifications and contracts for architectural, engineering and construction
services relating to the Land or the Improvements and all other intangible property and rights relating to the operation of, or used in connection with, the Land or the Improvements, including all governmental permits relating to any activities on
the Land. 
 (w) “Property Jurisdiction” is defined in Section 30(a). 

(x) “Rents” means all rents (whether from residential or non-residential space), revenues and other income of the Land
or the Improvements, including subsidy payments received from any sources (including, but not limited to payments under any Housing Assistance Payments Contract), parking fees, laundry and vending machine income and fees and charges for food, health
care and other services provided at the Mortgaged Property, whether now due, past due, or to become due, and deposits forfeited by tenants. 

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 5
	GEORGIA	 	© 1997-2009 Fannie Mae

 (y) “Taxes” means all taxes, assessments, vault rentals and other charges,
if any, general, special or otherwise, including all assessments for schools, public betterments and general or local improvements, which are levied, assessed or imposed by any public authority or quasi-public authority, and which, if not paid, will
become a lien, on the Land or the Improvements. 
 (z) “Transfer” means (A) a sale, assignment, transfer,
or other disposition (whether voluntary, involuntary or by operation of law); (B) the grant, creation, or attachment of a lien, encumbrance, or security interest (whether voluntary, involuntary or by operation of law); (C) the issuance or
other creation of a direct or indirect ownership interest; or (D) the withdrawal, retirement, removal or involuntary resignation of any owner or manager of a legal entity. 

(aa) “Bankruptcy Event” means any one or more of the following: (i) the commencement of a voluntary case under one
or more of the Insolvency Laws by the Borrower; (ii) the acknowledgment in writing by the Borrower that it is unable to pay its debts generally as they mature; (iii) the making of a general assignment for the benefit of creditors by the
Borrower; (iv) an involuntary case under one or more Insolvency Laws against the Borrower; (v) the appointment of a receiver, liquidator, custodian, sequestrator, trustee or other similar officer who exercises control over the Borrower or
any substantial part of the assets of the Borrower provided that any proceeding or case under (iv) or (v) above is not dismissed within 90 days after filing. 
 (bb) “Borrower Affiliate” means, as to either Borrower or Key Principal, (i) any entity that directly or indirectly owns, controls, or holds with power to vote, 20 percent or more of
the outstanding voting securities of Borrower or of Key Principal, (ii) any corporation 20 percent or more of whose outstanding voting securities are directly or indirectly owned, controlled or held with power to vote by Borrower or by Key
Principal, (iii) any partner, shareholder or, if a limited liability company, member of Borrower or Key Principal, or (iv) any other entity that is related (to the third degree of consanguinity) by blood or marriage to Borrower or Key
Principal. 
 (cc) “Insolvency Laws” means the United States Bankruptcy Code, 11 U.S.C. § 101, et seq.,
together with any other federal or state law affecting debtor and creditor rights or relating to the bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, dissolution, liquidation or similar proceeding, as amended from time to
time, to the extent applicable to the Borrower. 
 2. UNIFORM COMMERCIAL CODE SECURITY AGREEMENT. 

This Instrument is also a security agreement under the Uniform Commercial Code for any of the Mortgaged Property which, under applicable
law, may be subject to a security interest under the Uniform Commercial Code, whether acquired now or in the future, and all products and cash and non-cash proceeds thereof (collectively, “UCC Collateral”), and Borrower
hereby grants to Lender a security interest in the UCC Collateral. Borrower hereby authorizes Lender to file financing statements, continuation statements and financing statement amendments in such

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 6
	GEORGIA	 	© 1997-2009 Fannie Mae

 
form as Lender may require to perfect or continue the perfection of this security interest and Borrower agrees, if Lender so requests, to execute and deliver to Lender such financing statements,
continuation statements and amendments. Borrower shall pay all filing costs and all costs and expenses of any record searches for financing statements that Lender may require. Without the prior written consent of Lender, Borrower shall not create or
permit to exist any other lien or security interest in any of the UCC Collateral. If an Event of Default has occurred and is continuing, Lender shall have the remedies of a secured party under the Uniform Commercial Code, in addition to all remedies
provided by this Instrument or existing under applicable law. In exercising any remedies, Lender may exercise its remedies against the UCC Collateral separately or together, and in any order, without in any way affecting the availability of
Lender’s other remedies. This Instrument constitutes a financing statement with respect to any part of the Mortgaged Property which is or may become a Fixture. 
 3. ASSIGNMENT OF RENTS; APPOINTMENT OF RECEIVER; LENDER IN POSSESSION. 

(a) As part of the consideration for the Indebtedness, Borrower absolutely and unconditionally assigns and transfers to Lender all Rents.
It is the intention of Borrower to establish a present, absolute and irrevocable transfer and assignment to Lender of all Rents and to authorize and empower Lender to collect and receive all Rents without the necessity of further action on the part
of Borrower. Promptly upon request by Lender, Borrower agrees to execute and deliver such further assignments as Lender may from time to time require. Borrower and Lender intend this assignment of Rents to be immediately effective and to constitute
an absolute present assignment and not an assignment for additional security only. For purposes of giving effect to this absolute assignment of Rents, and for no other purpose, Rents shall not be deemed to be a part of the “Mortgaged
Property,” as that term is defined in Section 1(s). However, if this present, absolute and unconditional assignment of Rents is not enforceable by its terms under the laws of the Property Jurisdiction, then the Rents shall be included as a
part of the Mortgaged Property and it is the intention of the Borrower that in this circumstance this Instrument create and perfect a lien on Rents in favor of Lender, which lien shall be effective as of the date of this Instrument. 

(b) After the occurrence of an Event of Default, Borrower authorizes Lender to collect, sue for and compromise Rents and directs each
tenant of the Mortgaged Property to pay all Rents to, or as directed by, Lender, and Borrower shall, upon Borrower’s receipt of any Rents from any sources (including, but not limited to subsidy payments under any Housing Assistance Payments
Contract), pay the total amount of such receipts to the Lender. However, until the occurrence of an Event of Default, Lender hereby grants to Borrower a revocable license to collect and receive all Rents, to hold all Rents in trust for the benefit
of Lender and to apply all Rents to pay the installments of interest and principal then due and payable under the Note and the other amounts then due and payable under the other Loan Documents, including Imposition Deposits, and to pay the current
costs and expenses of managing, operating and maintaining the Mortgaged Property, including utilities, Taxes and insurance premiums (to the extent not included in Imposition Deposits), tenant improvements and other capital expenditures. So long as
no Event of Default has occurred and is continuing, the Rents remaining after application pursuant to the preceding sentence may be retained by Borrower free and clear of, and released from, Lender’s rights with respect to Rents under this
Instrument. From and after the occurrence 

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 7
	GEORGIA	 	© 1997-2009 Fannie Mae

 
of an Event of Default, and without the necessity of Lender entering upon and taking and maintaining control of the Mortgaged Property directly, or by a receiver, Borrower’s license to
collect Rents shall automatically terminate and Lender shall without notice be entitled to all Rents as they become due and payable, including Rents then due and unpaid. Borrower shall pay to Lender upon demand all Rents to which Lender is entitled.
At any time on or after the date of Lender’s demand for Rents, Lender may give, and Borrower hereby irrevocably authorizes Lender to give, notice to all tenants of the Mortgaged Property instructing them to pay all Rents to Lender, no tenant
shall be obligated to inquire further as to the occurrence or continuance of an Event of Default, and no tenant shall be obligated to pay to Borrower any amounts which are actually paid to Lender in response to such a notice. Any such notice by
Lender shall be delivered to each tenant personally, by mail or by delivering such demand to each rental unit. Borrower shall not interfere with and shall cooperate with Lender’s collection of such Rents. 

(c) Borrower represents and warrants to Lender that Borrower has not executed any prior assignment of Rents (other than an assignment of
Rents securing indebtedness that will be paid off and discharged with the proceeds of the loan evidenced by the Note), that Borrower has not performed, and Borrower covenants and agrees that it will not perform, any acts and has not executed, and
shall not execute, any instrument which would prevent Lender from exercising its rights under this Section 3, and that at the time of execution of this Instrument there has been no anticipation or prepayment of any Rents for more than two
months prior to the due dates of such Rents. Borrower shall not collect or accept payment of any Rents more than two months prior to the due dates of such Rents. 
 (d) If an Event of Default has occurred and is continuing, Lender may, regardless of the adequacy of Lender’s security or the solvency of Borrower and even in the absence of waste, enter upon and
take and maintain full control of the Mortgaged Property in order to perform all acts that Lender in its discretion determines to be necessary or desirable for the operation and maintenance of the Mortgaged Property, including the execution,
cancellation or modification of Leases, the collection of all Rents, the making of repairs to the Mortgaged Property and the execution or termination of contracts providing for the management, operation or maintenance of the Mortgaged Property, for
the purposes of enforcing the assignment of Rents pursuant to Section 3(a), protecting the Mortgaged Property or the security of this Instrument, or for such other purposes as Lender in its discretion may deem necessary or desirable.
Alternatively, if an Event of Default has occurred and is continuing, regardless of the adequacy of Lender’s security, without regard to Borrower’s solvency and without the necessity of giving prior notice (oral or written) to Borrower,
Lender may apply to any court having jurisdiction for the appointment of a receiver for the Mortgaged Property to take any or all of the actions set forth in the preceding sentence. If Lender elects to seek the appointment of a receiver for the
Mortgaged Property at any time after an Event of Default has occurred and is continuing, Borrower, by its execution of this Instrument, expressly consents to the appointment of such receiver, including the appointment of a receiver ex parte if
permitted by applicable law. Lender or the receiver, as the case may be, shall be entitled to receive a reasonable fee for managing the Mortgaged Property. Immediately upon appointment of a receiver or immediately upon the Lender’s entering
upon and taking possession and control of the Mortgaged Property, Borrower shall surrender possession of the Mortgaged Property to Lender or the receiver, as the case may be, and shall deliver to Lender or the receiver, as the case may be, all
documents, records (including records on electronic or magnetic media), accounts, surveys, plans, and specifications relating to the Mortgaged Property 

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 8
	GEORGIA	 	© 1997-2009 Fannie Mae

 
and all security deposits and prepaid Rents. In the event Lender takes possession and control of the Mortgaged Property, Lender may exclude Borrower and its representatives from the Mortgaged
Property. Borrower acknowledges and agrees that the exercise by Lender of any of the rights conferred under this Section 3 shall not be construed to make Lender a mortgagee-in-possession of the Mortgaged Property so long as Lender has not
itself entered into actual possession of the Land and Improvements. 
 (e) If Lender enters the Mortgaged Property, Lender shall
be liable to account only to Borrower and only for those Rents actually received. Lender shall not be liable to Borrower, anyone claiming under or through Borrower or anyone having an interest in the Mortgaged Property, by reason of any act or
omission of Lender under this Section 3, and Borrower hereby releases and discharges Lender from any such liability to the fullest extent permitted by law. 
 (f) If the Rents are not sufficient to meet the costs of taking control of and managing the Mortgaged Property and collecting the Rents, any funds expended by Lender for such purposes shall become an
additional part of the Indebtedness as provided in Section 12. 
 (g) Any entering upon and taking of control of the
Mortgaged Property by Lender or the receiver, as the case may be, and any application of Rents as provided in this Instrument shall not cure or waive any Event of Default or invalidate any other right or remedy of Lender under applicable law or
provided for in this Instrument. 
 4. ASSIGNMENT OF LEASES; LEASES AFFECTING THE MORTGAGED PROPERTY. 

(a) As part of the consideration for the Indebtedness, Borrower absolutely and unconditionally assigns and transfers to Lender all of
Borrower’s right, title and interest in, to and under the Leases, including Borrower’s right, power and authority to modify the terms of any such Lease, or extend or terminate any such Lease. It is the intention of Borrower to establish a
present, absolute and irrevocable transfer and assignment to Lender of all of Borrower’s right, title and interest in, to and under the Leases. Borrower and Lender intend this assignment of the Leases to be immediately effective and to
constitute an absolute present assignment and not an assignment for additional security only. For purposes of giving effect to this absolute assignment of the Leases, and for no other purpose, the Leases shall not be deemed to be a part of the
“Mortgaged Property,” as that term is defined in Section 1(s). However, if this present, absolute and unconditional assignment of the Leases is not enforceable by its terms under the laws of the Property Jurisdiction, then the Leases
shall be included as a part of the Mortgaged Property and it is the intention of the Borrower that in this circumstance this Instrument create and perfect a lien on the Leases in favor of Lender, which lien shall be effective as of the date of this
Instrument. 
 (b) Until Lender gives notice to Borrower of Lender’s exercise of its rights under this Section 4,
Borrower shall have all rights, power and authority granted to Borrower under any Lease (except as otherwise limited by this Section or any other provision of this Instrument), including the right, power and authority to modify the terms of any
Lease or extend or terminate any Lease. Upon the occurrence of an Event of Default, the permission given to Borrower pursuant to the preceding sentence to exercise all rights, power and authority under Leases shall

  

			
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automatically terminate. Borrower shall comply with and observe Borrower’s obligations under all Leases, including Borrower’s obligations pertaining to the maintenance and disposition
of tenant security deposits. 
 (c) Borrower acknowledges and agrees that the exercise by Lender, either directly or by a
receiver, of any of the rights conferred under this Section 4 shall not be construed to make Lender a mortgagee-in-possession of the Mortgaged Property so long as Lender has not itself entered into actual possession of the Land and the
Improvements. The acceptance by Lender of the assignment of the Leases pursuant to Section 4(a) shall not at any time or in any event obligate Lender to take any action under this Instrument or to expend any money or to incur any expenses.
Lender shall not be liable in any way for any injury or damage to person or property sustained by any person or persons, firm or corporation in or about the Mortgaged Property. Prior to Lender’s actual entry into and taking possession of the
Mortgaged Property, Lender shall not (i) be obligated to perform any of the terms, covenants and conditions contained in any Lease (or otherwise have any obligation with respect to any Lease); (ii) be obligated to appear in or defend any
action or proceeding relating to the Lease or the Mortgaged Property; or (iii) be responsible for the operation, control, care, management or repair of the Mortgaged Property or any portion of the Mortgaged Property. The execution of this
Instrument by Borrower shall constitute conclusive evidence that all responsibility for the operation, control, care, management and repair of the Mortgaged Property is and shall be that of Borrower, prior to such actual entry and taking of
possession. 
 (d) Upon delivery of notice by Lender to Borrower of Lender’s exercise of Lender’s rights under this
Section 4 at any time after the occurrence of an Event of Default, and without the necessity of Lender entering upon and taking and maintaining control of the Mortgaged Property directly, by a receiver, or by any other manner or proceeding
permitted by the laws of the Property Jurisdiction, Lender immediately shall have all rights, powers and authority granted to Borrower under any Lease, including the right, power and authority to modify the terms of any such Lease, or extend or
terminate any such Lease. 
 (e) Borrower shall, promptly upon Lender’s request, deliver to Lender an executed copy of each
residential Lease then in effect. All Leases for residential dwelling units shall be on forms approved by Lender, shall be for initial terms of at least six months and not more than two years, and shall not include options to purchase. If customary
in the applicable market, residential Leases with terms of less than six months may be permitted with Lender’s prior written consent. 
 (f) Borrower shall not lease any portion of the Mortgaged Property for non-residential use except with the prior written consent of Lender and Lender’s prior written approval of the Lease agreement.
Borrower shall not modify the terms of, or extend or terminate, any Lease for non-residential use (including any Lease in existence on the date of this Instrument) without the prior written consent of Lender. Borrower shall, without request by
Lender, deliver an executed copy of each non-residential Lease to Lender promptly after such Lease is signed. All non-residential Leases, including renewals or extensions of existing Leases, shall specifically provide that (1) such Leases are
subordinate to the lien of this Instrument (unless waived in writing by Lender); (2) the tenant shall attorn to Lender and any purchaser at a foreclosure sale, such attornment to be self-executing and effective upon acquisition of title to

  

			
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the Mortgaged Property by any purchaser at a foreclosure sale or by Lender in any manner; (3) the tenant agrees to execute such further evidences of attornment as Lender or any purchaser at
a foreclosure sale may from time to time request; (4) the Lease shall not be terminated by foreclosure or any other transfer of the Mortgaged Property; (5) after a foreclosure sale of the Mortgaged Property, Lender or any other purchaser
at such foreclosure sale may, at Lender’s or such purchaser’s option, accept or terminate such Lease; and (6) the tenant shall, upon receipt after the occurrence of an Event of Default of a written request from Lender, pay all Rents
payable under the Lease to Lender. 
 (g) Borrower shall not receive or accept Rent under any Lease (whether residential or
non-residential) for more than two months in advance. 
 5. PAYMENT OF INDEBTEDNESS; PERFORMANCE UNDER LOAN DOCUMENTS;
PREPAYMENT PREMIUM. 
 Borrower shall pay the Indebtedness when due in accordance with the terms of the Note and the other
Loan Documents and shall perform, observe and comply with all other provisions of the Note and the other Loan Documents. Borrower shall pay a prepayment premium in connection with certain prepayments of the Indebtedness, including a payment made
after Lender’s exercise of any right of acceleration of the Indebtedness, as provided in the Note. 
 6. EXCULPATION.

 Borrower’s personal liability for payment of the Indebtedness and for performance of the other obligations to be
performed by it under this Instrument is limited in the manner, and to the extent, provided in the Note. 
 7. DEPOSITS FOR
TAXES, INSURANCE AND OTHER CHARGES. 
 (a) Borrower shall deposit with Lender on the day monthly installments of principal
or interest, or both, are due under the Note (or on another day designated in writing by Lender), until the Indebtedness is paid in full, an additional amount sufficient to accumulate with Lender the entire sum required to pay, when due (1) any
water and sewer charges which, if not paid, may result in a lien on all or any part of the Mortgaged Property, (2) the premiums for fire and other hazard insurance, rent loss insurance and such other insurance as Lender may require under
Section 19, (3) Taxes, and (4) amounts for other charges and expenses which Lender at any time reasonably deems necessary to protect the Mortgaged Property, to prevent the imposition of liens on the Mortgaged Property, or otherwise to
protect Lender’s interests, all as reasonably estimated from time to time by Lender. The amounts deposited under the preceding sentence are collectively referred to in this Instrument as the “Imposition Deposits”. The
obligations of Borrower for which the Imposition Deposits are required are collectively referred to in this Instrument as “Impositions”. The amount of the Imposition Deposits shall be sufficient to enable Lender to pay each
Imposition before the last date upon which such payment may be made without any penalty or interest charge being added. Lender shall maintain records indicating how much of the monthly Imposition Deposits and how much of the aggregate Imposition
Deposits held by Lender are held for the purpose of paying Taxes, insurance premiums and each other obligation of Borrower for which Imposition Deposits are required. Any waiver by Lender of the requirement that Borrower remit Imposition Deposits to
Lender may be revoked by Lender, in Lender’s discretion, at any time upon notice to Borrower. 

  

			
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 (b) Imposition Deposits shall be held in an institution (which may be Lender, if Lender is
such an institution) whose deposits or accounts are insured or guaranteed by a federal agency. Lender shall not be obligated to open additional accounts or deposit Imposition Deposits in additional institutions when the amount of the Imposition
Deposits exceeds the maximum amount of the federal deposit insurance or guaranty. Lender shall apply the Imposition Deposits to pay Impositions so long as no Event of Default has occurred and is continuing. Unless applicable law requires, Lender
shall not be required to pay Borrower any interest, earnings or profits on the Imposition Deposits. Borrower hereby pledges and grants to Lender a security interest in the Imposition Deposits as additional security for all of Borrower’s
obligations under this Instrument and the other Loan Documents. Any amounts deposited with Lender under this Section 7 shall not be trust funds, nor shall they operate to reduce the Indebtedness, unless applied by Lender for that purpose under
Section 7(e). 
 (c) If Lender receives a bill or invoice for an Imposition, Lender shall pay the Imposition from the
Imposition Deposits held by Lender. Lender shall have no obligation to pay any Imposition to the extent it exceeds Imposition Deposits then held by Lender. Lender may pay an Imposition according to any bill, statement or estimate from the
appropriate public office or insurance company without inquiring into the accuracy of the bill, statement or estimate or into the validity of the Imposition. 
 (d) If at any time the amount of the Imposition Deposits held by Lender for payment of a specific Imposition exceeds the amount reasonably deemed necessary by Lender, the excess shall be credited against
future installments of Imposition Deposits. If at any time the amount of the Imposition Deposits held by Lender for payment of a specific Imposition is less than the amount reasonably estimated by Lender to be necessary, Borrower shall pay to Lender
the amount of the deficiency within 15 days after notice from Lender. 
 (e) If an Event of Default has occurred and is
continuing, Lender may apply any Imposition Deposits, in any amounts and in any order as Lender determines, in Lender’s discretion, to pay any Impositions or as a credit against the Indebtedness. Upon payment in full of the Indebtedness, Lender
shall refund to Borrower any Imposition Deposits held by Lender. 
 8. COLLATERAL AGREEMENTS. 

Borrower shall deposit with Lender such amounts as may be required by any Collateral Agreement and shall perform all other obligations of
Borrower under each Collateral Agreement. 
 9. APPLICATION OF PAYMENTS. 

If at any time Lender receives, from Borrower or otherwise, any amount applicable to the Indebtedness which is less than all amounts due
and payable at such time, then Lender may apply that payment to amounts then due and payable in any manner and in any order determined by Lender, in Lender’s discretion. Neither Lender’s acceptance of an amount which is less than all
amounts then due and payable nor Lender’s application of such payment in the manner authorized shall constitute or be deemed to constitute either a waiver of the unpaid amounts or an accord and satisfaction. Notwithstanding the application of
any such amount to the Indebtedness, Borrower’s obligations under this Instrument and the Note shall remain unchanged. 

  

			
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 10. COMPLIANCE WITH LAWS. 

Borrower shall comply with all laws, ordinances, regulations and requirements of any Governmental Authority and all recorded lawful
covenants and agreements relating to or affecting the Mortgaged Property, including all laws, ordinances, regulations, requirements and covenants pertaining to health and safety, construction of improvements on the Mortgaged Property, fair housing,
zoning and land use, and Leases. Borrower also shall comply with all applicable laws that pertain to the maintenance and disposition of tenant security deposits. Borrower shall at all times maintain records sufficient to demonstrate compliance with
the provisions of this Section 10. Borrower shall take appropriate measures to prevent, and shall not engage in or knowingly permit, any illegal activities at the Mortgaged Property that could endanger tenants or visitors, result in damage to
the Mortgaged Property, result in forfeiture of the Mortgaged Property, or otherwise materially impair the lien created by this Instrument or Lender’s interest in the Mortgaged Property. Borrower represents and warrants to Lender that no
portion of the Mortgaged Property has been or will be purchased with the proceeds of any illegal activity. 
 11. USE OF
PROPERTY. 
 Unless required by applicable law, Borrower shall not (a) except for any change in use approved by Lender,
allow changes in the use for which all or any part of the Mortgaged Property is being used at the time this Instrument was executed, (b) convert any individual dwelling units or common areas to commercial use, (c) initiate or acquiesce in
a change in the zoning classification of the Mortgaged Property, or (d) establish any condominium or cooperative regime with respect to the Mortgaged Property. 
 12. PROTECTION OF LENDER’S SECURITY. 
 (a) If Borrower fails to
perform any of its obligations under this Instrument or any other Loan Document, or if any action or proceeding (including a Bankruptcy Event) is commenced which purports to affect the Mortgaged Property, Lender’s security or Lender’s
rights under this Instrument, including eminent domain, insolvency, code enforcement, civil or criminal forfeiture, enforcement of Hazardous Materials Laws, fraudulent conveyance or reorganizations or proceedings involving a bankrupt or decedent,
then Lender at Lender’s option may make such appearances, disburse such sums and take such actions as Lender reasonably deems necessary to perform such obligations of Borrower and to protect Lender’s interest, including (1) payment of
fees and out-of-pocket expenses of attorneys, accountants, inspectors and consultants, (2) entry upon the Mortgaged Property to make repairs or secure the Mortgaged Property, (3) procurement of the insurance required by Section 19,
and (4) payment of amounts which Borrower has failed to pay under Sections 15 and 17. 
 (b) Any amounts disbursed by
Lender under this Section 12, or under any other provision of this Instrument that treats such disbursement as being made under this Section 12, shall be added to, and become part of, the principal component of the Indebtedness, shall be
immediately due and payable and shall bear interest from the date of disbursement until paid at the “Default Rate”, as defined in the Note. 

  

			
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 (c) Nothing in this Section 12 shall require Lender to incur any expense or take any
action. 
 13. INSPECTION. 
 Lender, its agents, representatives, and designees may make or cause to be made entries upon and inspections of the Mortgaged Property (including environmental inspections and tests) during normal
business hours, or at any other reasonable time. 
 14. BOOKS AND RECORDS; FINANCIAL REPORTING. 

(a) Borrower shall keep and maintain at all times at the Mortgaged Property or the management agent’s offices, and upon
Lender’s request shall make available at the Mortgaged Property, complete and accurate books of account and records (including copies of supporting bills and invoices) adequate to reflect correctly the operation of the Mortgaged Property, and
copies of all written contracts, Leases, and other instruments which affect the Mortgaged Property. The books, records, contracts, Leases and other instruments shall be subject to examination and inspection at any reasonable time by Lender.

 (b) Borrower shall furnish to Lender: 
  

	 	(1)	(i) except as provided in clause (ii) below, within 45 days after the end of each fiscal quarter of Borrower, a statement of income and expenses for
Borrower’s operation of the Mortgaged Property on a year-to-date basis as of the end of each fiscal quarter, (ii) within 120 days after the end of each fiscal year of Borrower, (A) a statement of income and expenses for
Borrower’s operation of the Mortgaged Property for such fiscal year, (B) a statement of changes in financial position of Borrower relating to the Mortgaged Property for such fiscal year, and (C) when requested by Lender, a balance
sheet showing all assets and liabilities of Borrower relating to the Mortgaged Property as of the end of such fiscal year; and (iii) any of the foregoing at any other time upon Lender’s request; 

 

	 	(2)	(i) except as provided in clause (ii) below, within 45 days after the end of each fiscal quarter of Borrower, and (ii) within 120 days after the end of each
fiscal year of Borrower, and at any other time upon Lender’s request, a rent schedule for the Mortgaged Property showing the name of each tenant, and for each tenant, the space occupied, the lease expiration date, the rent payable for the
current month, the date through which rent has been paid, and any related information requested by Lender; 

  

	 	(3)	 within 120 days after the end of each fiscal year of Borrower, and at any other time upon Lender’s request, an accounting of all security deposits
held pursuant to all Leases, including the name of the institution (if any) and the names and identification numbers of the accounts (if any) in which 

  

			
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such security deposits are held and the name of the person to contact at such financial institution, along with any authority or release necessary for Lender to access information regarding such
accounts; 

  

	 	(4)	within 120 days after the end of each fiscal year of Borrower, and at any other time upon Lender’s request, a statement that identifies all owners of any interest
in Borrower and the interest held by each, if Borrower is a corporation, all officers and directors of Borrower, and if Borrower is a limited liability company, all managers who are not members; 

 

	 	(5)	upon Lender’s request, a monthly property management report for the Mortgaged Property, showing the number of inquiries made and rental applications received from
tenants or prospective tenants and deposits received from tenants and any other information requested by Lender; 

  

	 	(6)	upon Lender’s request, a balance sheet, a statement of income and expenses for Borrower and a statement of changes in financial position of Borrower for
Borrower’s most recent fiscal year; and 

  

	 	(7)	if required by Lender, within 30 days of the end of each calendar month, a monthly statement of income and expenses for such calendar month on a year-to-date basis for
Borrower’s operation of the Mortgaged Property. 

 (c) Each of the statements, schedules and reports required
by Section 14(b) shall be certified to be complete and accurate by an individual having authority to bind Borrower, and shall be in such form and contain such detail as Lender may reasonably require. Lender also may require that any statements,
schedules or reports be audited at Borrower’s expense by independent certified public accountants acceptable to Lender. 

(d) If Borrower fails to provide in a timely manner the statements, schedules and reports required by Section 14(b), Lender shall
have the right to have Borrower’s books and records audited, at Borrower’s expense, by independent certified public accountants selected by Lender in order to obtain such statements, schedules and reports, and all related costs and
expenses of Lender shall become immediately due and payable and shall become an additional part of the Indebtedness as provided in Section 12. 
 (e) If an Event of Default has occurred and is continuing, Borrower shall deliver to Lender upon written demand all books and records relating to the Mortgaged Property or its operation. 

(f) Borrower authorizes Lender to obtain a credit report on Borrower at any time. 

15. TAXES; OPERATING EXPENSES. 
 (a) Subject to the provisions of Section 15(c) and Section 15(d), Borrower shall pay, or cause to be paid, all Taxes when due and before the addition of any interest, fine, penalty or cost for
nonpayment. 

  

			
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 (b) Subject to the provisions of Section 15(c), Borrower shall pay the expenses of
operating, managing, maintaining and repairing the Mortgaged Property (including insurance premiums, utilities, repairs and replacements) before the last date upon which each such payment may be made without any penalty or interest charge being
added. 
 (c) As long as no Event of Default exists and Borrower has timely delivered to Lender any bills or premium notices
that it has received, Borrower shall not be obligated to pay Taxes, insurance premiums or any other individual Imposition to the extent that sufficient Imposition Deposits are held by Lender for the purpose of paying that specific Imposition. If an
Event of Default exists, Lender may exercise any rights Lender may have with respect to Imposition Deposits without regard to whether Impositions are then due and payable. Lender shall have no liability to Borrower for failing to pay any Impositions
to the extent that any Event of Default has occurred and is continuing, insufficient Imposition Deposits are held by Lender at the time an Imposition becomes due and payable or Borrower has failed to provide Lender with bills and premium notices as
provided above. 
 (d) Borrower, at its own expense, may contest by appropriate legal proceedings, conducted diligently and in
good faith, the amount or validity of any Imposition other than insurance premiums, if (1) Borrower notifies Lender of the commencement or expected commencement of such proceedings, (2) the Mortgaged Property is not in danger of being sold
or forfeited, (3) Borrower deposits with Lender reserves sufficient to pay the contested Imposition, if requested by Lender, and (4) Borrower furnishes whatever additional security is required in the proceedings or is reasonably requested
by Lender, which may include the delivery to Lender of the reserves established by Borrower to pay the contested Imposition. 

(e) Borrower shall promptly deliver to Lender a copy of all notices of, and invoices for, Impositions, and if Borrower pays any
Imposition directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. 
 16. LIENS; ENCUMBRANCES.

 Borrower acknowledges that, to the extent provided in Section 21, the grant, creation or existence of any mortgage,
deed of trust, deed to secure debt, security interest or other lien or encumbrance (a “Lien”) on the Mortgaged Property (other than the lien of this Instrument) or on certain ownership interests in Borrower, whether voluntary,
involuntary or by operation of law, and whether or not such Lien has priority over the lien of this Instrument, is a “Transfer” which constitutes an Event of Default. 

17. PRESERVATION, MANAGEMENT AND MAINTENANCE OF MORTGAGED PROPERTY. 

(a) Borrower (1) shall not commit waste or permit impairment or deterioration of the Mortgaged Property, (2) shall not abandon
the Mortgaged Property, (3) shall restore or repair promptly, in a good and workmanlike manner, any damaged part of the Mortgaged Property to the equivalent of its original condition, or such other condition as Lender may approve in writing,
whether or not insurance proceeds or condemnation awards are available to cover any costs of such restoration or repair, (4) shall keep the Mortgaged Property in good repair, including the replacement of Personalty and Fixtures with items of
equal or better function and 

  

			
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quality, (5) shall provide for professional management of the Mortgaged Property by a residential rental property manager satisfactory to Lender under a contract approved by Lender in
writing, and (6) shall give notice to Lender of and, unless otherwise directed in writing by Lender, shall appear in and defend any action or proceeding purporting to affect the Mortgaged Property, Lender’s security or Lender’s rights
under this Instrument. Borrower shall not (and shall not permit any tenant or other person to) remove, demolish or alter the Mortgaged Property or any part of the Mortgaged Property except in connection with the replacement of tangible Personalty.

 (b) If, in connection with the making of the loan evidenced by the Note or at any later date, Lender waives in writing the
requirement of Section 17(a)(5) above that Borrower enter into a written contract for management of the Mortgaged Property and if, after the date of this Instrument, Borrower intends to change the management of the Mortgaged Property, Lender
shall have the right to approve such new property manager and the written contract for the management of the Mortgaged Property and require that Borrower and such new property manager enter into an Assignment of Management Agreement on a form
approved by Lender. If required by Lender (whether before or after an Event of Default), Borrower will cause any Affiliate of Borrower to whom fees are payable for the management of the Mortgaged Property to enter into an agreement with Lender, in a
form approved by Lender, providing for subordination of those fees and such other provisions as Lender may require. “Affiliate of Borrower” means any corporation, partnership, joint venture, limited liability company, limited liability
partnership, trust or individual controlled by, under common control with, or which controls Borrower (the term “control” for these purposes shall mean the ability, whether by the ownership of shares or other equity interests, by contract
or otherwise, to elect a majority of the directors of a corporation, to make management decisions on behalf of, or independently to select the managing partner of, a partnership, or otherwise to have the power independently to remove and then select
a majority of those individuals exercising managerial authority over an entity, and control shall be conclusively presumed in the case of the ownership of 50% or more of the equity interests). 

18. ENVIRONMENTAL HAZARDS. 
 (a) Except for matters covered by a written program of operations and maintenance approved in writing by Lender (an “O&M Program”) or matters described in Section 18(b), Borrower
shall not cause or permit any of the following: 
  

	 	(1)	the presence, use, generation, release, treatment, processing, storage (including storage in above ground and underground storage tanks), handling, or disposal of any
Hazardous Materials on or under the Mortgaged Property or any other property of Borrower that is adjacent to the Mortgaged Property; 

  

	 	(2)	the transportation of any Hazardous Materials to, from, or across the Mortgaged Property; 

 

	 	(3)	any occurrence or condition on the Mortgaged Property or any other property of Borrower that is adjacent to the Mortgaged Property, which occurrence or condition is or
may be in violation of Hazardous Materials Laws; or 

  

	 	(4)	any violation of or noncompliance with the terms of any Environmental Permit with respect to the Mortgaged Property or any property of Borrower that is adjacent to the
Mortgaged Property. 

  

			
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 The matters described in clauses (1) through (4) above are referred to collectively in this
Section 18 as “Prohibited Activities or Conditions”. 
 (b) Prohibited Activities and Conditions shall not
include the safe and lawful use and storage of quantities of (1) pre-packaged supplies, cleaning materials and petroleum products customarily used in the operation and maintenance of comparable multifamily properties, (2) cleaning
materials, personal grooming items and other items sold in pre-packaged containers for consumer use and used by tenants and occupants of residential dwelling units in the Mortgaged Property; and (3) petroleum products used in the operation and
maintenance of motor vehicles from time to time located on the Mortgaged Property’s parking areas, so long as all of the foregoing are used, stored, handled, transported and disposed of in compliance with Hazardous Materials Laws. 

(c) Borrower shall take all commercially reasonable actions (including the inclusion of appropriate provisions in any Leases executed
after the date of this Instrument) to prevent its employees, agents, and contractors, and all tenants and other occupants from causing or permitting any Prohibited Activities or Conditions. Borrower shall not lease or allow the sublease or use of
all or any portion of the Mortgaged Property to any tenant or subtenant for nonresidential use by any user that, in the ordinary course of its business, would cause or permit any Prohibited Activity or Condition. 

(d) If an O&M Program has been established with respect to Hazardous Materials, Borrower shall comply in a timely manner with, and
cause all employees, agents, and contractors of Borrower and any other persons present on the Mortgaged Property to comply with the O&M Program. All costs of performance of Borrower’s obligations under any O&M Program shall be paid by
Borrower, and Lender’s out-of-pocket costs incurred in connection with the monitoring and review of the O&M Program and Borrower’s performance shall be paid by Borrower upon demand by Lender. Any such out-of-pocket costs of Lender
which Borrower fails to pay promptly shall become an additional part of the Indebtedness as provided in Section 12. 
 (e)
Borrower represents and warrants to Lender that, except as previously disclosed by Borrower to Lender in writing: 
  

	 	(1)	Borrower has not at any time engaged in, caused or permitted any Prohibited Activities or Conditions; 

 

	 	(2)	to the best of Borrower’s knowledge after reasonable and diligent inquiry, no Prohibited Activities or Conditions exist or have existed; 

 

	 	(3)	 except to the extent previously disclosed by Borrower to Lender in writing, the Mortgaged Property does not now contain any underground

  

			
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storage tanks, and, to the best of Borrower’s knowledge after reasonable and diligent inquiry, the Mortgaged Property has not contained any underground storage tanks in the past. If there is
an underground storage tank located on the Mortgaged Property which has been previously disclosed by Borrower to Lender in writing, that tank complies with all requirements of Hazardous Materials Laws; 

 

	 	(4)	Borrower has complied with all Hazardous Materials Laws, including all requirements for notification regarding releases of Hazardous Materials. Without limiting the
generality of the foregoing, Borrower has obtained all Environmental Permits required for the operation of the Mortgaged Property in accordance with Hazardous Materials Laws now in effect and all such Environmental Permits are in full force and
effect; 

  

	 	(5)	no event has occurred with respect to the Mortgaged Property that constitutes, or with the passing of time or the giving of notice would constitute, noncompliance with
the terms of any Environmental Permit; 

  

	 	(6)	there are no actions, suits, claims or proceedings pending or, to the best of Borrower’s knowledge after reasonable and diligent inquiry, threatened that involve
the Mortgaged Property and allege, arise out of, or relate to any Prohibited Activity or Condition; and 

  

	 	(7)	Borrower has not received any complaint, order, notice of violation or other communication from any Governmental Authority with regard to air emissions, water
discharges, noise emissions or Hazardous Materials, or any other environmental, health or safety matters affecting the Mortgaged Property or any other property of Borrower that is adjacent to the Mortgaged Property. 

The representations and warranties in this Section 18 shall be continuing representations and warranties that shall be deemed to be
made by Borrower throughout the term of the loan evidenced by the Note, until the Indebtedness has been paid in full. 
 (f)
Borrower shall promptly notify Lender in writing upon the occurrence of any of the following events: 
  

	 	(1)	Borrower’s discovery of any Prohibited Activity or Condition; 

  

	 	(2)	Borrower’s receipt of or knowledge of any complaint, order, notice of violation or other communication from any Governmental Authority or other person with regard
to present or future alleged Prohibited Activities or Conditions or any other environmental, health or safety matters affecting the Mortgaged Property or any other property of Borrower that is adjacent to the Mortgaged Property; and

  

	 	(3)	any representation or warranty in this Section 18 becomes untrue after the date of this Agreement. 

  

			
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 Any such notice given by Borrower shall not relieve Borrower of, or result in a waiver of,
any obligation under this Instrument, the Note, or any other Loan Document. 
 (g) Borrower shall pay promptly the costs of any
environmental inspections, tests or audits (“Environmental Inspections”) required by Lender in connection with any foreclosure or deed in lieu of foreclosure, or as a condition of Lender’s consent to any Transfer under
Section 21, or required by Lender following a reasonable determination by Lender that Prohibited Activities or Conditions may exist. Any such costs incurred by Lender (including the fees and out-of-pocket costs of attorneys and technical
consultants whether incurred in connection with any judicial or administrative process or otherwise) which Borrower fails to pay promptly shall become an additional part of the Indebtedness as provided in Section 12. The results of all
Environmental Inspections made by Lender shall at all times remain the property of Lender and Lender shall have no obligation to disclose or otherwise make available to Borrower or any other party such results or any other information obtained by
Lender in connection with its Environmental Inspections. Lender hereby reserves the right, and Borrower hereby expressly authorizes Lender, to make available to any party, including any prospective bidder at a foreclosure sale of the Mortgaged
Property, the results of any Environmental Inspections made by Lender with respect to the Mortgaged Property. Borrower consents to Lender notifying any party (either as part of a notice of sale or otherwise) of the results of any of Lender’s
Environmental Inspections. Borrower acknowledges that Lender cannot control or otherwise assure the truthfulness or accuracy of the results of any of its Environmental Inspections and that the release of such results to prospective bidders at a
foreclosure sale of the Mortgaged Property may have a material and adverse effect upon the amount which a party may bid at such sale. Borrower agrees that Lender shall have no liability whatsoever as a result of delivering the results of any of its
Environmental Inspections to any third party, and Borrower hereby releases and forever discharges Lender from any and all claims, damages, or causes of action, arising out of, connected with or incidental to the results of, the delivery of any of
Lender’s Environmental Inspections. 
 (h) If any investigation, site monitoring, containment, clean-up, restoration or
other remedial work (“Remedial Work”) is necessary to comply with any Hazardous Materials Law or order of any Governmental Authority that has or acquires jurisdiction over the Mortgaged Property or the use, operation or improvement
of the Mortgaged Property under any Hazardous Materials Law, Borrower shall, by the earlier of (1) the applicable deadline required by Hazardous Materials Law or (2) 30 days after notice from Lender demanding such action, begin performing
the Remedial Work, and thereafter diligently prosecute it to completion, and shall in any event complete the work by the time required by applicable Hazardous Materials Law. If Borrower fails to begin on a timely basis or diligently prosecute any
required Remedial Work, Lender may, at its option, cause the Remedial Work to be completed, in which case Borrower shall reimburse Lender on demand for the cost of doing so. Any reimbursement due from Borrower to Lender shall become part of the
Indebtedness as provided in Section 12. 
 (i) Borrower shall cooperate with any inquiry by any Governmental Authority and
shall comply with any governmental or judicial order which arises from any alleged Prohibited Activity or Condition. 

  

			
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 (j) Borrower shall indemnify, hold harmless and defend (i) Lender, (ii) any prior
owner or holder of the Note, (iii) the Loan Servicer, (iv) any prior Loan Servicer, (v) the officers, directors, shareholders, partners, employees and trustees of any of the foregoing, and (vi) the heirs, legal representatives,
successors and assigns of each of the foregoing (collectively, the “Indemnitees”) from and against all proceedings, claims, damages, penalties and costs (whether initiated or sought by Governmental Authorities or private
parties), including fees and out-of-pocket expenses of attorneys and expert witnesses, investigatory fees, and remediation costs, whether incurred in connection with any judicial or administrative process or otherwise, arising directly or indirectly
from any of the following: 
  

	 	(1)	any breach of any representation or warranty of Borrower in this Section 18; 

 

	 	(2)	any failure by Borrower to perform any of its obligations under this Section 18; 

 

	 	(3)	the existence or alleged existence of any Prohibited Activity or Condition; 

 

	 	(4)	the presence or alleged presence of Hazardous Materials on or under the Mortgaged Property or any property of Borrower that is adjacent to the Mortgaged Property; and

  

	 	(5)	the actual or alleged violation of any Hazardous Materials Law. 

 (k) Counsel selected by Borrower to defend Indemnitees shall be subject to the approval of those Indemnitees. However, any Indemnitee may elect to defend any claim or legal or administrative proceeding at
the Borrower’s expense. 
 (l) Borrower shall not, without the prior written consent of those Indemnitees who are named as
parties to a claim or legal or administrative proceeding (a “Claim”), settle or compromise the Claim if the settlement (1) results in the entry of any judgment that does not include as an unconditional term the delivery by the
claimant or plaintiff to Lender of a written release of those Indemnitees, satisfactory in form and substance to Lender; or (2) may materially and adversely affect Lender, as determined by Lender in its discretion. 

(m) Lender agrees that the indemnity under this Section 18 shall be limited to the assets of Borrower and Lender shall not seek to
recover any deficiency from any natural persons who are general partners of Borrower. 
 (n) Borrower shall, at its own cost and
expense, do all of the following: 
  

	 	(1)	pay or satisfy any judgment or decree that may be entered against any Indemnitee or Indemnitees in any legal or administrative proceeding incident to any matters
against which Indemnitees are entitled to be indemnified under this Section 18; 

  

			
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	 	(2)	reimburse Indemnitees for any expenses paid or incurred in connection with any matters against which Indemnitees are entitled to be indemnified under this
Section 18; and 

  

	 	(3)	reimburse Indemnitees for any and all expenses, including fees and out-of-pocket expenses of attorneys and expert witnesses, paid or incurred in connection with the
enforcement by Indemnitees of their rights under this Section 18, or in monitoring and participating in any legal or administrative proceeding. 

 (o) In any circumstances in which the indemnity under this Section 18 applies, Lender may employ its own legal counsel and consultants to prosecute, defend or negotiate any claim or legal or
administrative proceeding and Lender, with the prior written consent of Borrower (which shall not be unreasonably withheld, delayed or conditioned), may settle or compromise any action or legal or administrative proceeding. Borrower shall reimburse
Lender upon demand for all costs and expenses incurred by Lender, including all costs of settlements entered into in good faith, and the fees and out-of-pocket expenses of such attorneys and consultants. 

(p) The provisions of this Section 18 shall be in addition to any and all other obligations and liabilities that Borrower may have
under applicable law or under other Loan Documents, and each Indemnitee shall be entitled to indemnification under this Section 18 without regard to whether Lender or that Indemnitee has exercised any rights against the Mortgaged Property or
any other security, pursued any rights against any guarantor, or pursued any other rights available under the Loan Documents or applicable law. If Borrower consists of more than one person or entity, the obligation of those persons or entities to
indemnify the Indemnitees under this Section 18 shall be joint and several. The obligation of Borrower to indemnify the Indemnitees under this Section 18 shall survive any repayment or discharge of the Indebtedness, any foreclosure
proceeding, any foreclosure sale, any delivery of any deed in lieu of foreclosure, and any release of record of the lien of this Instrument. 
 19. PROPERTY AND LIABILITY INSURANCE. 
 (a) Borrower shall keep the
Improvements insured at all times against such hazards as Lender may from time to time require, which insurance shall include but not be limited to coverage against loss by fire and allied perils, general boiler and machinery coverage, and business
income coverage. Lender’s insurance requirements may change from time to time throughout the term of the Indebtedness. If Lender so requires, such insurance shall also include sinkhole insurance, mine subsidence insurance, earthquake insurance,
and, if the Mortgaged Property does not conform to applicable zoning or land use laws, building ordinance or law coverage. If any of the Improvements is located in an area identified by the Federal Emergency Management Agency (or any successor to
that agency) as an area having special flood hazards, and if flood insurance is available in that area, Borrower shall insure such Improvements against loss by flood. 
 (b) All premiums on insurance policies required under Section 19(a) shall be paid in the manner provided in Section 7, unless Lender has designated in writing another method of

  

			
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payment. All such policies shall also be in a form approved by Lender. All policies of property damage insurance shall include a non-contributing, non-reporting mortgage clause in favor of, and
in a form approved by, Lender. Lender shall have the right to hold the original policies or duplicate original policies of all insurance required by Section 19(a). Borrower shall promptly deliver to Lender a copy of all renewal and other
notices received by Borrower with respect to the policies and all receipts for paid premiums. At least 30 days prior to the expiration date of a policy, Borrower shall deliver to Lender the original (or a duplicate original) of a renewal policy in
form satisfactory to Lender. 
 (c) Borrower shall maintain at all times commercial general liability insurance, workers’
compensation insurance and such other liability, errors and omissions and fidelity insurance coverages as Lender may from time to time require. 
 (d) All insurance policies and renewals of insurance policies required by this Section 19 shall be in such amounts and for such periods as Lender may from time to time require, and shall be issued by
insurance companies satisfactory to Lender. 
 (e) Borrower shall comply with all insurance requirements and shall not permit
any condition to exist on the Mortgaged Property that would invalidate any part of any insurance coverage that this Instrument requires Borrower to maintain. 
 (f) In the event of loss, Borrower shall give immediate written notice to the insurance carrier and to Lender. Borrower hereby authorizes and appoints Lender as attorney-in-fact for Borrower to make proof
of loss, to adjust and compromise any claims under policies of property damage insurance, to appear in and prosecute any action arising from such property damage insurance policies, to collect and receive the proceeds of property damage insurance,
and to deduct from such proceeds Lender’s expenses incurred in the collection of such proceeds. This power of attorney is coupled with an interest and therefore is irrevocable. However, nothing contained in this Section 19 shall require
Lender to incur any expense or take any action. Lender may, at Lender’s option, (1) hold the balance of such proceeds to be used to reimburse Borrower for the cost of restoring and repairing the Mortgaged Property to the equivalent of its
original condition or to a condition approved by Lender (the “Restoration”), or (2) apply the balance of such proceeds to the payment of the Indebtedness, whether or not then due. To the extent Lender determines to apply
insurance proceeds to Restoration, Lender shall do so in accordance with Lender’s then-current policies relating to the restoration of casualty damage on similar multifamily properties. 

(g) Lender shall not exercise its option to apply insurance proceeds to the payment of the Indebtedness if all of the following
conditions are met; (1) no Event of Default (or any event which, with the giving of notice or the passage of time, or both, would constitute an Event of Default) has occurred and is continuing; (2) Lender determines, in its discretion,
that there will be sufficient funds to complete the Restoration; (3) Lender determines, in its discretion, that the net operating income generated by the Mortgaged Property after completion of the Restoration will be sufficient to support a
debt service coverage ratio not less than the greater of (A) the debt service coverage ratio as of the date of this Instrument (based on the final underwriting of the Mortgaged Property) or (B) the debt service coverage ratio immediately
prior to the loss (in each case, Lender’s determination shall include all operating costs and other expenses, Imposition 

  

			
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Deposits, deposits to reserves and loan repayment obligations relating to the Mortgaged Property); (4) Lender determines, in its discretion, that the Restoration will be completed before the
earlier of (A) one year before the maturity date of the Note or (B) one year after the date of the loss or casualty; and (5) upon Lender’s request, Borrower provides Lender evidence of the availability during and after the
Restoration of the insurance required to be maintained by Borrower pursuant to this Section 19. 
 (h) If the Mortgaged
Property is sold at a foreclosure sale or Lender acquires title to the Mortgaged Property, Lender shall automatically succeed to all rights of Borrower in and to any insurance policies and unearned insurance premiums and in and to the proceeds
resulting from any damage to the Mortgaged Property prior to such sale or acquisition. 
 20. CONDEMNATION. 

(a) Borrower shall promptly notify Lender of any action or proceeding relating to any condemnation or other taking, or conveyance in lieu
thereof, of all or any part of the Mortgaged Property, whether direct or indirect (a “Condemnation”). Borrower shall appear in and prosecute or defend any action or proceeding relating to any Condemnation unless otherwise directed
by Lender in writing. Borrower authorizes and appoints Lender as attorney-in-fact for Borrower to commence, appear in and prosecute, in Lender’s or Borrower’s name, any action or proceeding relating to any Condemnation and to settle or
compromise any claim in connection with any Condemnation. This power of attorney is coupled with an interest and therefore is irrevocable. However, nothing contained in this Section 20 shall require Lender to incur any expense or take any
action. Borrower hereby transfers and assigns to Lender all right, title and interest of Borrower in and to any award or payment with respect to (i) any Condemnation, or any conveyance in lieu of Condemnation, and (ii) any damage to the
Mortgaged Property caused by governmental action that does not result in a Condemnation. 
 (b) Lender may apply such awards or
proceeds, after the deduction of Lender’s expenses incurred in the collection of such amounts, at Lender’s option, to the restoration or repair of the Mortgaged Property or to the payment of the Indebtedness, with the balance, if any, to
Borrower. Unless Lender otherwise agrees in writing, any application of any awards or proceeds to the Indebtedness shall not extend or postpone the due date of any monthly installments referred to in the Note, Section 7 of this Instrument or
any Collateral Agreement, or change the amount of such installments. Borrower agrees to execute such further evidence of assignment of any awards or proceeds as Lender may require. 

21. TRANSFERS OF THE MORTGAGED PROPERTY OR INTERESTS IN BORROWER. 

(a) The occurrence of any of the following events shall constitute an Event of Default under this Instrument: 

 

	 	(1)	a Transfer of all or any part of the Mortgaged Property or any interest in the Mortgaged Property; 

 

	 	(2)	a Transfer of a Controlling Interest in Borrower; 

  

			
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	 	(3)	a Transfer of a Controlling Interest in any entity which owns, directly or indirectly through one or more intermediate entities, a Controlling Interest in Borrower;

  

	 	(4)	a Transfer of all or any part of a Key Principal’s ownership interests in Borrower, or in any other entity which owns, directly or indirectly through one or more
intermediate entities, an ownership interest in Borrower (other than a Transfer of an aggregate beneficial ownership interest in the Borrower of 49% or less of such Key Principal’s original ownership interest in the Borrower and which does not
otherwise result in a Transfer of the Key Principal’s Controlling Interest in such intermediate entities or in the Borrower); 

  

	 	(5)	if Key Principal is an entity, (A) a Transfer of a Controlling Interest in Key Principal, or (B) a Transfer of a Controlling Interest in any entity which
owns, directly or indirectly through one or more intermediate entities, a Controlling Interest in Key Principal; 

  

	 	(6)	if Borrower or Key Principal is a trust, the termination or revocation of such trust; unless the trust is terminated as a result of the death of an individual trustor,
in which event Lender must be notified and such Borrower or Key Principal must be replaced with an individual or entity acceptable to Lender, in accordance with the provisions of Section 21(c) hereof, within 90 days of such death (provided
however that no property inspection shall be required and a 1% transfer fee will not be charged); 

  

	 	(7)	if Key Principal is a natural person, the death of such individual; unless the Lender is notified and such individual is replaced with an individual or entity
acceptable to Lender, in accordance with the provisions of Section 21(c) hereof, within 90 days of such death (provided however that no property inspection shall be required and a 1% transfer fee will not be charged); 

 

	 	(8)	the merger, dissolution, liquidation, or consolidation of (i) Borrower, (ii) any Key Principal that is a legal entity, or (iii) any legal entity holding,
directly or indirectly, a Controlling Interest in the Borrower or in any Key Principal that is an entity; 

  

	 	(9)	a conversion of Borrower from one type of legal entity into another type of legal entity (including the conversion of a general partnership into a limited partnership
and the conversion of a limited partnership into a limited liability company), whether or not there is a Transfer; if such conversion results in a change in any assets, liabilities, legal rights or obligations of Borrower (or of Key Principal,
guarantor, or any general partner of Borrower, as applicable), by operation of law or otherwise; and 

  

	 	(10)	a Transfer of the economic benefits or right to cash flows attributable to the ownership interests in Borrower and/or, if Key Principal is an entity, Key Principal,
separate from the Transfer of the underlying ownership interests, unless the Transfer of the underlying ownership interests would otherwise not be prohibited by this Agreement Lender shall not be required to demonstrate any actual impairment of its
security or any increased risk of default in order to exercise any of its remedies with respect to an Event of Default under this Section 21. 

  

			
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 (b) The occurrence of any of the following events shall not constitute an Event of Default
under this Instrument, notwithstanding any provision of Section 21(a) to the, contrary: 
  

	 	(1)	a Transfer to which Lender has consented; 

  

	 	(2)	except as provided in Section 21(a)(6) and (7), a Transfer that occurs by devise, descent, pursuant to the provisions of a trust, or by operation of law upon the
death of a natural person; 

  

	 	(3)	the grant of a leasehold interest in an individual dwelling unit for a term of two years or less not containing an option to purchase; 

 

	 	(4)	a Transfer of obsolete or worn out Personalty or Fixtures that are contemporaneously replaced by items of equal or better function and quality, which are free of liens,
encumbrances and security interests other than those created by the Loan Documents or consented to by Lender; 

  

	 	(5)	the grant of an easement, servitude, or restrictive covenant if, before the grant, Lender determines that the easement, servitude, or restrictive covenant will not
materially affect the operation or value of the Mortgaged Property or Lender’s interest in the Mortgaged Property, and Borrower pays to Lender, upon demand, all costs and expenses incurred by Lender in connection with reviewing Borrower’s
request; 

  

	 	(6)	the creation of a tax lien or a mechanic’s, materialman’s, or judgment lien against the Mortgaged Property which is bonded off, released of record, or
otherwise remedied to Lender’s satisfaction within 45 days after Borrower has actual or constructive notice of the existence of such lien; and 

  

	 	(7)	5the conveyance of the Mortgaged Property at a judicial or non judicial foreclosure sale under this Instrument. 

(c) Lender shall consent to a Transfer that would otherwise violate this Section 21 if, prior to the Transfer, Borrower has
satisfied each of the following requirements: 
  

	 	(1)	the submission to Lender of all information required by Lender to make the determination required by this Section 21(c); 

 

	 	(2)	the absence of any Event of Default; 

  

			
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	 	(3)	the transferee meets all of the eligibility, credit, management, and other standards (including any standards with respect to previous relationships between Lender and
the transferee and the organization of the transferee) customarily applied by Lender at the time of the proposed Transfer to the approval of borrowers in connection with the origination or purchase of similar mortgage finance structures on similar
multifamily properties, unless partially waived by Lender in exchange for such additional conditions as Lender may require; 

  

	 	(4)	the Mortgaged Property, at the time of the proposed Transfer, meets all standards as to its physical condition that are customarily applied by Lender at the time of the
proposed Transfer to the approval of properties in connection with the origination or purchase of similar mortgage finance structures on similar multifamily properties, unless partially waived by Lender in exchange for such additional conditions as
Lender may require; 

  

	 	(5)	if transferor or any other person has obligations under any Loan Document, the execution by the transferee or one or more individuals or entities acceptable to Lender
of an assumption agreement (including, if applicable, an Acknowledgement and Agreement of Key Principal to Personal Liability for Exceptions to Non-Recourse Liability) that is acceptable to Lender and that, among other things, requires the
transferee to perform all obligations of transferor or such person set forth in such Loan Document, and may require that the transferee comply with any provisions of this Instrument or any other Loan Document which previously may have been waived by
Lender; 

  

	 	(6)	if a guaranty has been executed and delivered in connection with the Note, this Instrument or any of the other Loan Documents, the Borrower causes one or more
individuals or entities acceptable to Lender to execute and deliver to Lender a substitute guaranty in a form acceptable to Lender; 

  

	 	(7)	Lender’s receipt of all of the following: 

 (A) a non-refundable review fee in the amount of $3,000 and a transfer fee equal to 1 percent of the outstanding Indebtedness immediately prior to the Transfer; and 

(B) Borrower’s reimbursement of all of Lender’s out-of-pocket costs (including reasonable attorneys’ fees) incurred in
reviewing the Transfer request, to the extent such expenses exceed $3,000; and 
 (8) Borrower has agreed to
Lender’s conditions to approve such Transfer, which may include, but are not limited to (A) providing additional collateral, guaranties, or other credit support to mitigate any risks concerning the proposed transferee or the performance or
condition of the Mortgaged Property, and (B) amending the Loan Documents to (i) delete any specially negotiated terms or provisions previously granted for the exclusive benefit of transferor and (ii) restore to original provisions of
the standard Fannie Mae form multifamily loan documents, to the extent such provisions were previously modified. 

  

			
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 (d) For purposes of this Section, the following terms shall have the meanings set forth
below: 
 (1) “Initial Owners” means, with respect to Borrower or any other entity, the persons
or entities who on the date of the Note, directly or indirectly, own in the aggregate 100% of the ownership interests in Borrower or that entity. 
 (2) A Transfer of a “Controlling Interest” shall mean: 
 (A) with respect to any entity, the following: 
 (i) if such
entity is a general partnership or a joint venture, a Transfer of any general partnership interest or joint venture interest which would cause the Initial Owners to own less than 51% of all general partnership or joint venture interests in such
entity; 
 (ii) if such entity is a limited partnership, (A) a Transfer of any general partnership
interest, or (B) a Transfer of any partnership interests which would cause the Initial Owners to own less than 51% of all limited partnership interests in such entity; 

(iii) if such entity is a limited liability company or a limited liability partnership, (A) a Transfer of any
membership or other ownership interest which would cause the Initial Owners to own less than 51% of all membership or other ownership interests in such entity, (B) a Transfer of any membership, or other interest of a manager, in such entity
that results in a change of manager, or (C) a change of the non-member manager; 
 (iv) if such entity is a
corporation (other than a Publicly-Held Corporation) with only one class of voting stock, a Transfer of any voting stock which would cause the Initial Owners to own less than 51% of voting stock in such corporation; 

(v) if such entity is a corporation (other than a Publicly-Held Corporation) with more than one class of voting stock, a
Transfer of any voting stock which would cause the Initial Owners to own less than a sufficient number of shares of voting stock having the power to elect the majority of directors of such corporation; and 

(vi) if such entity is a trust (other than a Publicly-Held Trust), the removal, appointment or substitution of a trustee
of such trust other than (A) in the case of a land trust, or (B) if the trustee of such trust after such removal, appointment, or substitution is a trustee identified in the trust agreement approved by Lender; and/or 

  

			
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 (B) any agreement (including provisions contained in the organizational
and/or governing documents of Borrower or Key Principal) or Transfer not specified in clause (A), the effect of which, either immediately or after the passage of time or occurrence of a specified event or condition, including the failure of a
specified event or condition to occur or be satisfied, would (i) cause a change in or replacement of the Person that controls the management and operations of the Borrower or Key Principal or (ii) limit or otherwise modify the extent of
such Person’s control over the management and operations of Borrower or Key Principal. 
 (3)
“Publicly-Held Corporation” shall mean a corporation the outstanding voting stock of which is registered under Section 12(b) or 12(g) of the Securities and Exchange Act of 1934, as amended. 

(4) “Publicly-Held Trust” shall mean a real estate investment trust the outstanding voting shares or
beneficial interests of which are registered under Section 12 (b) or 12 (g) of the Securities Exchange Act of 1934, as amended. 
 (e) Lender shall be provided with written notice of all Transfers under this Section 21, whether or not such Transfers are permitted under Section 21(b) or approved by Lender under
Section 21(c), no later than 10 days prior to the date of the Transfer.” 
 22. EVENTS OF DEFAULT. 

The occurrence of any one or more of the following shall constitute an Event of Default under this Instrument: 

(a) any failure by Borrower to pay or deposit when due any amount required by the Note, this Instrument or any other Loan Document;

 (b) any failure by Borrower to maintain the insurance coverage required by Section 19; 

(c) any failure by Borrower to comply with the provisions of Section 33; 

(d) fraud or material misrepresentation or material omission by Borrower, or any of its officers, directors, trustees, general partners
or managers, Key Principal or any guarantor in connection with (A) the application for or creation of the Indebtedness, (B) any financial statement, rent roll, or other report or information provided to Lender during the term of the
Indebtedness, or (C) any request for Lender’s consent to any proposed action, including a request for disbursement of funds under any Collateral Agreement; 
 (e) any (i) Event of Default under Section 21 and/or (ii) occurrence of a Bankruptcy Event; 
 (f) the commencement of a forfeiture action or proceeding, whether civil or criminal, which, in Lender’s reasonable judgment, could result in a forfeiture of the Mortgaged Property or otherwise
materially impair the lien created by this Instrument or Lender’s interest in the Mortgaged Property; 

  

			
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 (g) any failure by Borrower to perform any of its obligations under this Instrument (other
than those specified in Sections 22(a) through (f)), as and when required, which continues for a period of 30 days after notice of such failure by Lender to Borrower, but no such notice or grace period shall apply in the case of any such failure
which could, in Lender’s judgment, absent immediate exercise by Lender of a right or remedy under this Instrument, result in harm to Lender, impairment of the Note or this Instrument or any other security given under any other Loan Document;

 (h) any failure by Borrower to perform any of its obligations as and when required under any Loan Document other than this
Instrument which continues beyond the applicable cure period, if any, specified in that Loan Document; and 
 (i) any exercise
by the holder of any other debt instrument secured by a mortgage, deed of trust or deed to secure debt on the Mortgaged Property of a right to declare all amounts due under that debt instrument immediately due and payable. 

23. REMEDIES CUMULATIVE. 
 Each right and remedy provided in this Instrument is distinct from all other rights or remedies under this Instrument or any other Loan Document or afforded by applicable law, and each shall be cumulative
and may be exercised concurrently, independently, or successively, in any order. 
 24. FORBEARANCE. 

(a) Lender may (but shall not be obligated to) agree with Borrower, from time to time, and without giving notice to, or obtaining the
consent of, or having any effect upon the obligations of, any guarantor or other third party obligor, to take any of the following actions: extend the time for payment of all or any part of the Indebtedness; reduce the payments due under this
Instrument, the Note, or any other Loan Document; release anyone liable for the payment of any amounts under this Instrument, the Note, or any other Loan Document; accept a renewal of the Note; modify the terms and time of payment of the
Indebtedness; join in any extension or subordination agreement; release any Mortgaged Property, take or release other or additional security; modify the rate of interest or period of amortization of the Note or change the amount of the monthly
installments payable under the Note; and otherwise modify this Instrument, the Note, or any other Loan Document. 
 (b) Any
forbearance by Lender in exercising any right or remedy under the Note, this Instrument, or any other Loan Document or otherwise afforded by applicable law, shall not be a waiver of or preclude the exercise of any other right or remedy. The
acceptance by Lender of payment of all or any part of the Indebtedness after the due date of such payment, or in an amount which is less than the required payment, shall not be a waiver of Lender’s right to require prompt payment when due of
all other payments on account of the Indebtedness or to exercise any remedies for any failure to make prompt payment. Enforcement by Lender of any security for the Indebtedness shall not constitute an election by Lender of remedies so as to preclude
the exercise of any other right available to Lender. Lender’s receipt of any awards or proceeds under Sections 19 and 20 shall not operate to cure or waive any Event of Default. 

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 30
	GEORGIA	 	© 1997-2009 Fannie Mae

 25. LOAN CHARGES. 

If any applicable law limiting the amount of interest or other charges permitted to be collected from Borrower is interpreted so that any
charge provided for in any Loan Document, whether considered separately or together with other charges levied in connection with any other Loan Document, violates that law, and Borrower is entitled to the benefit of that law, that charge is hereby
reduced to the extent necessary to eliminate that violation. The amounts, if any, previously paid to Lender in excess of the permitted amounts shall be applied by Lender to reduce the principal of the Indebtedness. For the purpose of determining
whether any applicable law limiting the amount of interest or other charges permitted to be collected from Borrower has been violated, all Indebtedness which constitutes interest, as well as all other charges levied in connection with the
Indebtedness which constitute interest, shall be deemed to be allocated and spread over the stated term of the Note. Unless otherwise required by applicable law, such allocation and spreading shall be effected in such a manner that the rate of
interest so computed is uniform throughout the stated term of the Note. 
 26. WAIVER OF STATUTE OF LIMITATIONS.

 Borrower hereby waives the right to assert any statute of limitations as a bar to the enforcement of the lien of this
Instrument or to any action brought to enforce any Loan Document. 
 27. WAIVER OF MARSHALLING. 

Notwithstanding the existence of any other security interests in the Mortgaged Property held by Lender or by any other party, Lender
shall have the right to determine the order in which any or all of the Mortgaged Property shall be subjected to the remedies provided in this Instrument, the Note, any other Loan Document or applicable law. Lender shall have the right to determine
the order in which any or all portions of the Indebtedness are satisfied from the proceeds realized upon the exercise of such remedies. Borrower and any party who now or in the future acquires a security interest in the Mortgaged Property and who
has actual or constructive notice of this Instrument waives any and all right to require the marshalling of assets or to require that any of the Mortgaged Property be sold in the inverse order of alienation or that any of the Mortgaged Property be
sold in parcels or as an entirety in connection with the exercise of any of the remedies permitted by applicable law or provided in this Instrument. 
 28. FURTHER ASSURANCES. 
 Borrower shall execute, acknowledge, and deliver,
at its sole cost and expense, all further acts, deeds, conveyances, assignments, estoppel certificates, financing statements, transfers and assurances as Lender may require from time to time in order to better assure, grant, and convey to Lender the
rights intended to be granted, now or in the future, to Lender under this Instrument and the Loan Documents. 

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 31
	GEORGIA	 	© 1997-2009 Fannie Mae

 29. ESTOPPEL CERTIFICATE. 

Within 10 days after a request from Lender, Borrower shall deliver to Lender a written statement, signed and acknowledged by Borrower,
certifying to Lender or any person designated by Lender, as of the date of such statement, (i) that the Loan Documents are unmodified and in full force and effect (or, if there have been modifications, that the Loan Documents are in full force
and effect as modified and setting forth such modifications); (ii) the unpaid principal balance of the Note; (iii) the date to which interest under the Note has been paid; (iv) that Borrower is not in default in paying the
Indebtedness or in performing or observing any of the covenants or agreements contained in this Instrument or any of the other Loan Documents (or, if the Borrower is in default, describing such default in reasonable detail); (v) whether or not
there are then existing any setoffs or defenses known to Borrower against the enforcement of any right or remedy of Lender under the Loan Documents; and (vi) any additional facts requested by Lender. 

30. GOVERNING LAW; CONSENT TO JURISDICTION AND VENUE. 
 (a) This Instrument, and any Loan Document which does not itself expressly identify the law that is to apply to it, shall be governed by the laws of the jurisdiction in which the Land is located (the
“Property Jurisdiction”). 
 (b) Borrower agrees that any controversy arising under or in relation to the Note,
this Instrument, or any other Loan Document 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 the Note, any security for the Indebtedness, or any other Loan Document. 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. 
 31. NOTICE.

 (a) All notices, demands and other communications (“notice”) under or concerning this Instrument shall
be in writing. Each notice shall be addressed to the intended recipient at its address set forth in this Instrument, and shall be deemed given on the earliest to occur of (1) the date when the notice is received by the addressee; (2) the
first Business Day after the notice is delivered to a recognized overnight courier service, with arrangements made for payment of charges for next Business Day delivery; or (3) the third Business Day after the notice is deposited in the United
States mail with postage prepaid, certified mail, return receipt requested. As used in this Section 31, the term “Business Day” means any day other than a Saturday, a Sunday or any other day on which Lender is not open for business.

 (b) Any party to this Instrument may change the address to which notices intended for it are to be directed by means of
notice given to the other party in accordance with this Section 31. Each party agrees that it will not refuse or reject delivery of any notice given in accordance with this Section 31, that it will acknowledge, in writing, the receipt of
any notice upon request by the other party and that any notice rejected or refused by it shall be deemed for purposes of this Section 31 to have been received by the rejecting party on the date so refused or rejected, as conclusively
established by the records of the U.S. Postal Service or the courier service. 

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 32
	GEORGIA	 	© 1997-2009 Fannie Mae

 (c) Any notice under the Note and any other Loan Document which does not specify how notices
are to be given shall be given in accordance with this Section 31. 
 32. SALE OF NOTE; CHANGE IN SERVICER.

 The Note or a partial interest in the Note (together with this Instrument and the other Loan Documents) may be sold one
or more times without prior notice to Borrower. A sale may result in a change of the Loan Servicer. There also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will
be given notice of the change. 
 33. SINGLE ASSET BORROWER. 

Until the Indebtedness is paid in full, Borrower (a) shall not acquire any real or personal property other than the Mortgaged
Property and personal property related to the operation and maintenance of the Mortgaged Property; (b) shall not operate any business other than the management and operation of the Mortgaged Property; and (c) shall not maintain its assets
in a way difficult to segregate and identify. 
 34. SUCCESSORS AND ASSIGNS BOUND. 

This Instrument shall bind, and the rights granted by this Instrument shall inure to, the respective successors and assigns of Lender and
Borrower. However, a Transfer not permitted by Section 21 shall be an Event of Default. 
 35. JOINT AND SEVERAL
LIABILITY. 
 If more than one person or entity signs this Instrument as Borrower, the obligations of such persons and
entities shall be joint and several. 
 36. RELATIONSHIP OF PARTIES; NO THIRD PARTY BENEFICIARY. 

(a) The relationship between Lender and Borrower shall be solely that of creditor and debtor, respectively, and nothing contained in this
Instrument shall create any other relationship between Lender and Borrower. 
 (b) No creditor of any party to this Instrument
and no other person shall be a third party beneficiary of this Instrument or any other Loan Document. Without limiting the generality of the preceding sentence, (1) any arrangement (a “Servicing Arrangement”) between the Lender
and any Loan Servicer for loss sharing or interim advancement of funds shall constitute a contractual obligation of such Loan Servicer that is independent of the obligation of Borrower for the payment of the Indebtedness, (2) Borrower shall not
be a third party beneficiary of any Servicing Arrangement, and (3) no payment by the Loan Servicer under any Servicing Arrangement will reduce the amount of the Indebtedness. 

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 33
	GEORGIA	 	© 1997-2009 Fannie Mae

 37. SEVERABILITY; AMENDMENTS. 

The invalidity or unenforceability of any provision of this Instrument shall not affect the validity or enforceability of any other
provision, and all other provisions shall remain in full force and effect. This Instrument contains the entire agreement among the parties as to the rights granted and the obligations assumed in this Instrument. This Instrument may not be amended or
modified except by a writing signed by the party against whom enforcement is sought. 
 38. CONSTRUCTION. 

The captions and headings of the sections of this Instrument are for convenience only and shall be disregarded in construing this
Instrument. Any reference in this Instrument to an “Exhibit” or a “Section” shall, unless otherwise explicitly provided, be construed as referring, respectively, to an Exhibit attached to this Instrument or to a Section of this
Instrument. All Exhibits attached to or referred to in this Instrument are incorporated by reference into this Instrument. Any reference in this Instrument to a statute or regulation shall be construed as referring to that statute or regulation as
amended from time to time. Use of the singular in this Agreement includes the plural and use of the plural includes the singular. As used in this Instrument, the term “including” means “including, but not limited to.” 

39. LOAN SERVICING. 
 All actions regarding the servicing of the loan evidenced by the Note, including the collection of payments, the giving and receipt of notice, inspections of the Property, inspections of books and
records, and the granting of consents and approvals, may be taken by the Loan Servicer unless Borrower receives notice to the contrary. If Borrower receives conflicting notices regarding the identity of the Loan Servicer or any other subject, any
such notice from Lender shall govern. 
 40. DISCLOSURE OF INFORMATION. 

Lender may furnish information regarding Borrower or the Mortgaged Property to third parties with an existing or prospective interest in
the servicing, enforcement, evaluation, performance, purchase or securitization of the Indebtedness, including trustees, master servicers, special servicers, rating agencies, and organizations maintaining databases on the underwriting and
performance of multifamily mortgage loans. Borrower irrevocably waives any and all rights it may have under applicable law to prohibit such disclosure, including any right of privacy. 

41. NO CHANGE IN FACTS OR CIRCUMSTANCES. 
 All information in the application for the loan submitted to Lender (the “Loan Application”) and in all financial statements, rent rolls, reports, certificates and other documents
submitted in connection with the Loan Application are complete and accurate in all material respects. There has been no material adverse change in any fact or circumstance that would make any such information incomplete or inaccurate. 

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 34
	GEORGIA	 	© 1997-2009 Fannie Mae

 42. SUBROGATION. 

If, and to the extent that, the proceeds of the loan evidenced by the Note are used to pay, satisfy or discharge any obligation of
Borrower for the payment of money that is secured by a pre-existing mortgage, deed of trust or other lien encumbering the Mortgaged Property (a “Prior Lien”), such loan proceeds shall be deemed to have been advanced by Lender at
Borrower’s request, and Lender shall automatically, and without further action on its part, be subrogated to the rights, including lien priority, of the owner or holder of the obligation secured by the Prior Lien, whether or not the Prior Lien
is released. 
 43. ACCELERATION; REMEDIES. 
 At any time during the existence of an Event of Default, Lender, at Lender’s option, may declare the Indebtedness to be immediately due and payable without further demand, and may invoke the power of
sale granted in this Instrument (and Borrower appoints Lender as Borrower’s agent and attorney-in-fact to exercise such power of sale in the name and on behalf of Borrower) and any other remedies permitted by Georgia law or provided in this
Instrument or in any other Loan Document. Borrower acknowledges that the power of sale granted in this Instrument may be exercised by Lender without prior judicial hearing. Lender shall be entitled to collect all costs and expenses incurred in
pursuing such remedies, including reasonable attorneys’ fees, costs of documentary evidence, abstracts and title reports. 

Lender may sell and dispose of the Mortgaged Property at public auction, at the usual place for conducting sales at the courthouse in the
county where all or any part of the Mortgaged Property is located, to the highest bidder for cash, first advertising the time, terms and place of such sale by publishing a notice of sale once a week for four consecutive weeks (without regard to the
actual number of days) in a newspaper in which sheriffs advertisements are published in such county, all other notice being waived by Borrower; and Lender may thereupon execute and deliver to the purchaser a sufficient instrument of conveyance of
the Mortgaged Property in fee simple, which may contain recitals as to the happening of the default upon which the execution of the power of sale granted by this Section depends. The recitals in the instrument of conveyance shall be presumptive
evidence that Lender duly complied with all preliminary acts prerequisite to the sale and instrument of conveyance. Borrower constitutes and appoints Lender as Borrower’s agent and attorney-in-fact to make such recitals, sale and conveyance.
Borrower ratifies all of Lender’s acts, as such attorney-in-fact, and Borrower agrees that such recitals shall be binding and conclusive upon Borrower and that the conveyance to be made by Lender (and in the event of a deed in lieu of
foreclosure, then as to such conveyance) shall be effectual to bar all right, title and interest, equity of redemption, including all statutory redemption, homestead, dower, curtsey and all other exemptions of Borrower, or its successors in
interest, in and to the Mortgaged Property. 
 The Mortgaged Property may be sold in one parcel and as an entirety, or in such
parcels, manner or order as Lender, in its discretion, may elect, and one or more exercises of the powers granted in this Section shall not extinguish or exhaust the power unless the entire Mortgaged Property is sold or the Indebtedness is paid in
full, and Lender shall collect the proceeds of such sale, applying such proceeds as provided in this Section. In the event of a deficiency, Borrower shall immediately on demand from Lender pay such deficiency to Lender, subject to the

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 35
	GEORGIA	 	© 1997-2009 Fannie Mae

 
provisions of the Note limiting Borrower’s personal liability for payment of the Indebtedness. Borrower acknowledges that Lender may bid for and purchase the Mortgaged Property at any
foreclosure sale and shall be entitled to apply all or any part of the Indebtedness as a credit to the purchase price. Borrower covenants and agrees that Lender shall apply the proceeds of the sale in the following order: (a) to all reasonable
costs and expenses of the sale, including reasonable attorneys’ fees and costs of title evidence; (b) to the Indebtedness in such order as Lender, in Lender’s discretion, directs; and (c) the excess, if any, to the person or
persons legally entitled to the excess. The power and agency granted in this Section 43 are coupled with an interest, are irrevocable by death or otherwise and are in addition to the remedies for collection of the Indebtedness as provided by
law. 
 If the Mortgaged Property is sold pursuant to this Section 43, Borrower, or any person holding possession of the
Mortgaged Property through Borrower, shall surrender possession of the Mortgaged Property to the purchaser at such sale on demand. If possession is not surrendered on demand, Borrower or such person shall be a tenant holding over and may be
dispossessed in accordance with Georgia law. 
 44. RELEASE. 

Upon payment of the Indebtedness, Lender shall cancel this Instrument. Borrower shall pay Lender’s reasonable costs incurred in
canceling this Instrument. 
 45. BORROWER’S WAIVER OF CERTAIN RIGHTS. 

To the fullest extent permitted by law, Borrower agrees that Borrower will not at any time insist upon, plead, claim or take the benefit
or advantage of any present or future law providing for any appraisement, valuation, stay, extension or redemption, homestead, moratorium, reinstatement, marshalling or forbearance, and Borrower, for Borrower, Borrower’s heirs, devisees,
representatives, successors and assigns, and for any and all persons ever claiming any interest in the Mortgaged Property, to the fullest extent permitted by law, waives and releases all rights of redemption, valuation, appraisement, stay of
execution, reinstatement (including all rights under O.C.G.A. Section 44-14-85), notice of intention to mature or declare due the whole of the Indebtedness, and all rights to a marshaling of assets of Borrower, including the Mortgaged Property.

 46. DEED TO SECURE DEBT. 
 This conveyance is to be construed under the existing laws of the State of Georgia as a deed passing title, and not as a mortgage, and is intended to secure the payment of the Indebtedness. 

47. ASSUMPTION NOT A NOVATION. 
 Lender’s acceptance of an assumption of the obligations of this Instrument and the Note, and the release of Borrower pursuant to Section 21, shall not constitute a novation and shall not affect
the priority of the lien created by this Instrument. 

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 36
	GEORGIA	 	© 1997-2009 Fannie Mae

 48. WAIVER OF TRIAL BY JURY. 

BORROWER AND LENDER EACH (A) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS
INSTRUMENT OR THE RELATIONSHIP BETWEEN THE PARTIES AS BORROWER 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 SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL. 

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 37
	GEORGIA	 	© 1997-2009 Fannie Mae

 ATTACHED EXHIBITS. The following Exhibits are attached to this Instrument:

  

			
	x	  	Exhibit A Description of Land (required)
		
	x	  	Exhibit B Modifications to Instrument

 IN WITNESS WHEREOF, Borrower has signed and delivered this Instrument under seal or has caused
this Instrument to be signed and delivered by its duly authorized representative under seal. 

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 38
	GEORGIA	 	© 1997-2009 Fannie Mae

 
									
	 BSF/BR AUGUSTA, LLC, a Florida limited liability company

		
	 By:
	 	BSF/BR Augusta JV, LLC, a Delaware limited liability company, its Sole Member
			
		 	By:	 	 BSF-TSC GP, LLC, a Delaware limited
 liability company, its Manager

					
		 		 	By:	 	 /s/ Michael Baumann
	 	(SEAL)
		 		 		 	Michael Baumann
		 		 		 	Manager	 	
			
		 	By:	 	BR August JV Member, LLC, a Delaware limited liability company, its Manager
					
		 		 	By:	 	 /s/ James Babb
	 	(SEAL)
		 		 		 	Name: James Babb	 	
		 		 		 	Authorized Signatory	 	

 Signed, sealed and delivered in the presence of: 

			
	
	 /s/ Collin Ross

		
	Print Name:	 	Collin Ross, Unofficial Witness
	
	 /s/ Barbara Maytin

	Notary Public, Barbara Maytin
	County, Dade
	[SEAL]

 My commission expires: 12/16/10 

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 39
	GEORGIA	 	© 1997-2009 Fannie Mae

 KEY PRINCIPAL 

 

			
	Name:	  	Bluerock Real Estate L.L.C.
		
	Address:	  	c/o Trade Street Capital
		  	19950 West Country Club Drive, Suite 801
		  	Aventura, Florida 33180
		
	Name:	  	BSF-TSC, LP
		
	Address:	  	c/o Trade Street Capital
		  	19950 West Country Club Drive, Suite 801
		  	Aventura, Florida 33180

  

			
	FANNIE MAE MULTIFAMILY SECURITY INSTRUMENT –	 	Form 4011    06/09  Page 40
	GEORGIA	 	© 1997-2009 Fannie Mae

 EXHIBIT A 
 LEGAL DESCRIPTION 
 All that certain lot, piece or parcel of land, with the buildings and
improvements thereon erected, situate, lying and being in the City of Augusta, County of Richmond, State of Georgia: 
 Beginning at the
intersection of Wheeler Road and Perimeter Parkway thence along the Southern right-of-way of Perimeter Parkway 2,642.76 feet to a #4 rebar found known as the point of beginning; thence along property now or formerly Hunt Holdings Inc. south 52
degrees 09 minutes 06 seconds West for a distance of 347.76 feet to a #4 rebar found; thence continuing along property now or formerly Hunt Holdings Inc. South 11 degrees 05 minutes 26 seconds West for a distance of 569.90 feet to a 3/4" open
top found; thence continuing along property now or formerly Hunt Holdings Inc. North 73 degrees 54 minutes 03 seconds West for a distance of 499.98 feet to a 3/4" open top found; thence along property now or formerly Whitney Place Phase II
North 31 degrees 27 minutes 47 seconds West for a distance of 394.99 feet to a #4 rebar found; thence along property now or formerly Augusta Investment Associates, LLC North 58 degrees 22 minutes 53 seconds East for a distance of 348.97 feet to a #4
rebar set; thence continuing along property nor or formerly Augusta Investment Associates, LLC North 39 degrees 26 minutes 41 seconds East for a distance of 511.12 feet to a #4 rebar found; thence along Perimeter Parkway south 59 degrees 16 minutes
39 seconds East for a distance of 380.17 feet to a #4 rebar found; thence continuing along Perimeter Parkway along a curve with a radius of 907.11 feet and an arc length of 149.69 feet a chord bearing of South 54 degrees 43 minutes 03 seconds East
with a chord distance of 149.52 feet to the point of beginning and containing 12.60 acres. 
 BEING the same premises described in a survey
prepared by Technical Survey Services, Inc., dated August 9, 2006, last revised August 19, 2010, as follows: 
 To reach the POINT OF
BEGINNING commence at a point being the northern Right of Way of Whitney Place (Private Right of Way) (27.7 feet from center line at this point) and the western Right of Way of Perimeter Parkway (Variable Right of Way) (41.0 feet from center line at
this point) at a 1/2" rebar found; thence running North 08° 34' 31" West a distance of 1411.81 feet to a 1/2" rebar found on the southern Right of Way of Perimeter Parkway and the TRUE POINT OF BEGINNING; from point thus
established and leaving Perimeter Parkway running South 52° 09' 05" West a distance of 347.73 feet to a 1/2" rebar and cap found; thence South 11° 05' 35" West a distance of 569.93 feet to a 3/4" open top pipe
found; thence North 73° 54' 03" West a distance of 499.98 feet to a 3/4" open top pipe found; thence North 31° 27' 49" West a distance of 395.00 feet to a'     " rebar found; thence
North 58° 23' 01" East a distance of 348.93 feet to a 1/2" rebar found; thence North 39° 26' 45" East a distance of 511.17 feet to a 1/2" rebar found on the southwesterly Right of Way of aforementioned Perimeter
Parkway; thence continuing along Perimeter Parkway South 59° 16' 15" East a distance of 380.16 feet to a 1/2" rebar found; thence along a curve to the right having a radius of 907.11 feet and an arc length of 149.70 feet, being
subtended by a chord of South 54° 44' 04" East a distance of 149.53 feet to the true POINT OF BEGINNING. Said property contains 12.595 acres. 
 NOTE: Being Parcel No. 023-0-003-04-1 of the City of Augusta, County of Richmond. 

  
 Page A-1

 EXHIBIT B 
 MODIFICATIONS TO INSTRUMENT 
 (Key Principal Transfers) 

The following modifications are made to the text of the Instrument that precedes this Exhibit: 

1. Section 21 is modified to add new Section 21(f) as follows: 

“(f) The requirement to pay a 1% transfer fee as provided in Section 21(c)(7)(A) shall not apply to Transfers of the Mortgaged
Property or of ownership interests held by any person or entity to (i) one or more Key Principals or (ii) any entity or entities in which a Key Principal has a direct or indirect Controlling Interest (“Affiliated
Entities”). However, such Transfers to Affiliated Entities shall be subject to all other requirements of Section 21(c) herein.” 
 2. Section 21(b) is modified to delete the period at the end of Section 21(b)(7) and substitute “; and” therefor and to add a new Section 21(b)(8): 

“(8) a Transfer of the Mortgaged Property or of ownership interests held by an individual or entity Key Principal in Borrower, or in
any other entity which owns, directly or indirectly through one or more intermediate entities, an ownership interest in Borrower, to (i) other Key Principals; (ii) Immediate Family Members; or (iii) trusts established for the benefit
of the transferor and/or Immediate Family Members; provided, however, that such Transfer of ownership interests will not cause a change in the management and control of Borrower (or other intermediate entity), and after which Transfer, the
transferor Key Principal shall maintain the same right and ability to manage and control Borrower (or other intermediate entity) as existed prior to the Transfer.” 
 3. Section 1 is modified to add the following defined term: 
 “(dd)
“Immediate Family Members” means a non-minor child, grandchild, spouse, or parent, of a transferor under Section 21.” 
 4. All capitalized terms used in this Exhibit not specifically defined herein shall have the meanings set forth in the text of the Instrument that precedes this Exhibit. 

 
	
	 /s/ MB

	Borrower’s Initials

  
 Page B-2

 EXHIBIT B-3 
 MODIFICATIONS TO INSTRUMENT 
 The following modifications are made to the Instrument that
precedes this Exhibit: 
 1. Section 21(b) is modified to delete the period at the end of Section 21(b)(7) and substitute “;
and” thereof and to add a new section 21(b)(8) as follows: 
  

	 	(8)	any Transfer listed in (A) through (C) below (a “Preapproved Transfer”) under the terms and conditions listed as items (1) through
(4) below: 

  

	 	(A)	any Transfer by (x) BR Augusta JV Member, LLC (“BR Member”), Bluerock Special Opportunity + Income Fund II, LLC (“BR SOIF II”)
and/or BEMT Augusta, LLC (“REIT Member”), of a direct or indirect interest in the Borrower to a Bluerock Affiliate (as defined below), or (y) BSF-Augusta, LLC (“Trade Street Member”) or direct or indirect
owners of Trade Street Member, of a direct or indirect interest in the Borrower to a Trade Street Affiliate (as defined below); 

  

	 	(B)	any Transfer by BSF/BR Augusta JV, LLC (“JV Entity”) of all or any of its interest in Borrower, provided that, the Initial Owners continue to own a
Controlling Interest in Borrower; 

  

	 	(C)	any change in manager of Borrower or JV Entity so long as the replacement manager is an entity that is wholly owned and controlled by Bluerock Real Estate, LLC or
BSF-TSC, LP; 

  

	 	(1)	Borrower shall provide Lender with 10 days prior written Notice of the proposed Preapproved Transfer; 

 

	 	(2)	at the time of the proposed Preapproved Transfer, no Event of Default shall have occurred and no event or condition shall have occurred and be continuing that, with the
giving of Notice or the passage of time, or both, would become an Event of Default; 

  

	 	(3)	either directly or indirectly, Bluerock Real Estate, LLC and/or BSF-TSC, LP shall maintain the management and control of the Borrower; and 

 

	 	(4)	Lender shall be entitled to collect all costs, including the cost of all title searches, title insurance and recording costs and all reasonable Attorneys’ fees and
costs, but Lender shall not be entitled to collect a transfer fee as a result of the Preapproved Transfers. 

 As
used herein, the term “Bluerock Affiliate” means an entity that is wholly owned and/or controlled by Bluerock Real Estate, LLC; and the term “Trade Street Affiliate” means an entity that is wholly owned and/or controlled by
BSF-TSC, LP. 

 2. Section 21 is modified to add a new subsection 21(e) as follows: 

(e) the requirement to pay a 1% transfer fee as provided in Section 21(c)(7)(A) shall be waived, but an additional
$3,000 transfer fee will be collected for any of the following Transfers (all other requirements of Section 21(c) remain applicable): 
  

	 	(1)	any Transfer by BR Member or its members of a direct or indirect interest in the Borrower to one or more third parties so long as, after the transfer a Bluerock
Affiliate continues to maintain the management and control of BR Member; and 

  

	 	(2)	any Transfer or issuance of limited partnership interests in BSF-TSC, LP to one or more third parties so long as, after the transfer Michael Baumann continues to
maintain the management and control of BSF-TSC, LP. 

  
 Page B-4

 
	
	 /s/ MB

	Borrower’s Initials

  
 Page B-5

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