Document:

a104guaranty20190926

                                                                          EXHIBIT 10.4   Freddie Mac Loan Number: 499673646  Property Name: Tapestry Park at Montclair                                    GUARANTY                                   MULTISTATE                                 (Revised 4-19-2018)   THIS GUARANTY ("Guaranty") is entered into to be effective as of September 26, 2019, by  STEADFAST INCOME REIT, INC., a Maryland corporation ("Guarantor", collectively if  more than one), for the benefit of BERKELEY POINT CAPITAL LLC, d/b/a NEWMARK  KNIGHT FRANK, a Delaware limited liability company ("Lender").                                     RECITALS   A.    Pursuant to the terms of a Multifamily Loan and Security Agreement dated the same date        as this Guaranty ( as amended, modified or supplemented from time to time, the "Loan        Agreement"), SIR TAPESTRY PARK, LLC, a Delaware limited liability company        ("Borrower") has requested that Lender make a loan to Borrower in the amount of        $48,750,000.00 ("Loan"). The Loan will be evidenced by one or more Multifamily        Note(s) from Borrower to Lender dated effective as of the effective date of this Guaranty        (as amended, modified or supplemented from time to time, and collectively if applicable,        the "Note"). The Note will be secured by a Multifamily Mortgage, Deed of Trust, or        Deed to Secure Debt dated effective as of the effective date of the Note (as amended,        modified or supplemented from time to time, the "Security Instrument"), encumbering        the Mortgaged Property described in the Loan Agreement.   B.    As a condition to making the Loan to Borrower, Lender requires that Guarantor execute        this Guaranty.   C.    Guarantor has a direct or indirect ownership or other financial interest in Borrower and/or        will otherwise derive a material benefit from the making of the Loan.                                   AGREEMENT   NOW, THEREFORE, in order to induce Lender to make the Loan to Borrower, and in  consideration thereof and other good and valuable consideration, the receipt and sufficiency of  which are hereby acknowledged, Guarantor agrees as follows:   1.    Defined Terms. The terms "Indebtedness," "Loan Documents," and "Property        Jurisdiction," and other capitalized terms used but not defined in this Guaranty, will have        the meanings assigned to them in the. Loan Agreement.   Guaranty - Multistate                                                    Page 1  

 

2.    Scope of Guaranty.         (a)   Guarantor hereby absolutely, unconditionally and irrevocably guarantees to              Lender each of the following:               (i)   Guarantor guarantees the full and prompt payment when due, whether at                    the Maturity Date or earlier, by reason of acceleration or otherwise, and at                    all times thereafter, of each of the following:                     (A)   Guarantor guarantees a portion of the Indebtedness (including                          interest at the Note rate) equal to 0% of the original principal                          balance of the Note ("Base Guaranty").                     (B)   In addition to the Base Guaranty, Guarantor guarantees all other                          amounts for which Borrower is personally liable under                          Sections 9(c), 9(d) and 9(f) of the Note (provided, however, that                          Guarantor will have no liability for failure of Borrower or SPE                          Equity Owner to comply with (I) Section 6.13(a)(xviii) of the Loan                          Agreement, and (II) the requirement in Section 6.13(a)(x)(B) of the                          Loan Agreement as to payment of trade payables within 60 days of                          the date incurred).                     (C)   Guarantor guarantees all costs and expenses, including reasonable                          Attorneys' Fees and Costs incurred by Lender in enforcing its                          rights under this Guaranty.               (ii)  Guarantor guarantees the full and prompt payment and performance of,                    and compliance with, all of Borrower's obligations under Sections 6.12,                    10.02(b) and I0.02(d) of the Loan Agreement when due and the accuracy                    of Borrower's representations and warranties under Section 5.05 of the                    Loan Agreement.               (iii) Guarantor guarantees the full and prompt payment and performance of,                    and compliance with, Borrower's obligations under Section 6.09(e)(v) of                    the Loan Agreement to the extent Property Improvement Alterations have                    commenced and remain uncompleted.               (iv) through (vi) Reserved.         (b)   If the Base Guaranty stated in Section 2(a)(i)(A) is 100% of the original principal              balance of the Note, then the following will be applicable:               (i)   The Base Guaranty will mean and include, and Guarantor hereby                    absolutely, unconditionally and irrevocably guarantees to Lender, the full                    and complete prompt payment of the entire Indebtedness, the performance   Guaranty - Multistate                                                    Page 2  

 

                  of and/or compliance with an of Borrower's obligations under the Loan                    Documents when due, and the accuracy of Borrower's representations and                    warranties contained in the Loan Documents.               (ii)  For so long as the Base Guaranty remains in effect (there being no limit to                    the duration of the Base Guaranty unless otherwise expressly provided in                    this Guaranty), the obligations guaranteed pursuant to Sections 2(a)(i)(B)                    and 2(a)(i)(C) will be part of, and not in addition to or in limitation of, the                    Base Guaranty.         (c)   If the Base Guaranty stated in Section 2(a)(i)(A) is less than 100% of the original              principal balance of the Note, then Section 2(b) will be completely inapplicable.         (d)   If Guarantor is not liable for the entire Indebtedness, then all payments made by              Borrower with respect to the Indebtedness and all amounts received by Lender              from the enforcement of its rights under the Loan Agreement and the other Loan              Documents (except this Guaranty) will be applied first to the portion of the              Indebtedness for which neither Borrower nor Guarantor has personal liability.   3.    Additional Guaranty Relating to Bankruptcy.         (a)   Notwithstanding any limitation on liability provided for elsewhere in this              Guaranty, Guarantor hereby absolutely, unconditionally and irrevocably              guarantees to Lender the full and prompt payment when due, whether at the              Maturity Date or earlier, by reason of acceleration or otherwise, and at all times              thereafter, the entire Indebtedness, in the event that:               (i)   Borrower or any SPE Equity Owner voluntarily files for bankruptcy                    protection under the Bankruptcy Code.               (ii)  Borrower or any SPE Equity Owner voluntarily becomes subject to any                    reorganization, receivership, insolvency proceeding, or other similar                    proceeding pursuant to any other federal or state law affecting debtor and                    creditor rights.               (iii) The Mortgaged Property or any part of the Mortgaged Property becomes                    an asset in a voluntary bankruptcy or becomes subject to any voluntary                    reorganization, receivership, insolvency proceeding, or other similar                    voluntary proceeding pursuant to any other federal or state law affecting                    debtor and creditor rights.               (iv)  An order of relief is entered against Borrower or any SPE Equity Owner                    pursuant to the Bankruptcy Code or other federal or state law affecting                    debtor arid creditor rights in any involuntary bankruptcy proceeding                    initiated or joined in by a Related Party.    Guaranty - Multistate                                                    Page 3  

 

            (v)   An involuntary bankruptcy or other involuntary insolvency proceeding is                    commenced against Borrower or any SPE Equity Owner (by a paity other                    than Lender) but only if Borrower or such SPE Equity Owner has failed to                    use commercially reasonable efforts to dismiss such proceeding or has                    consented to such proceeding. "Commercially reasonable efforts" will not                    require any direct or indirect interest holders in Borrower or any SPE                    Equity Owner to contribute or cause the contribution of additional capital                    to Borrower or any SPE Equity Owner.         (b)   For purposes of Section 3(a) the term "Related Party" will include all of the              following:               (i)   Borrower, any Guarantor or any SPE Equity Owner.               (ii)  Any Person that holds, directly or indirectly, any ownership interest                    (including any shareholder, member or partner) in Borrower, any                    Guarantor or any SPE Equity Owner or any Person that has a right to                    manage Borrower, any Guarantor or any SPE Equity Owner.               (iii) Any Person in which Borrower, any Guarantor or any SPE Equity Owner                    has any ownership interest (direct  or indirect) or right to manage.               (iv)  Any Person in which any partner, shareholder or member of Borrower,                    any Guarantor or any SPE Equity Owner has an ownership interest or right                    to manage.               (v)   Any Person in which any Person holding an interest in Borrower, any                    Guarantor or any SPE Equity Owner also has any ownership interest.               (vi)  Any creditor ( as defined in the Bankruptcy Code) of Borrower that is                    related by blood, marriage or adoption to Borrower, any Guarantor or any                    SPE Equity Owner.               (vii) Any creditor ( as defined in the Bankruptcy Code) of Borrower that is                    related to any partner, shareholder or member of, or any other Person                    holding an interest in, Borrower, any Guarantor or any SPE Equity Owner.         (c)   If Borrower, any Guarantor, any SPE Equity Owner or any Related Party has              solicited creditors to initiate or participate in any proceeding referred to in              Section 3(a), regardless of whether any of the creditors solicited actually initiates              or participates in the proceeding, then such proceeding will be considered as              having been initiated by a Related Party.   4.    Guarantor's Obligations Survive Foreclosure. The obligations of Guarantor under this        Guaranty will survive any foreclosure proceeding, any foreclosure sale, any delivery of        any deed in lieu of foreclosure, and any release of record of the Security Instrument, and,        in addition, the obligations of Guarantor relating to Borrower's representations and   Guaranty - Multistate                                                    Page 4  

 

      warranties under Section 5.05 of the Loan Agreement, and Borrower's obligations under        Sections 6.12 and 10.02(b) of the Loan Agreement will survive any repayment or        discharge of the Indebtedness. Notwithstanding the foregoing, if Lender has never been a        mortgagee-in-possession of or held title to the Mortgaged Property, Guarantor will have        no obligation under this Guaranty relating to Borrower's representations and warranties        under Section 5.05 of the Loan Agreement or Borrower's obligations relating to        environmental matters under Sections 6.12 and 10.02(b) of the Loan Agreement after the        date of the release of record of the lien of the Security Instrument as a result of the        payment in full of the Indebtedness on the Maturity Date or by voluntary prepayment in        full.   5.    Guaranty of Payment and Performance. Guarantor's obligations under this Guaranty        constitute an unconditional guaranty of payment and performance and not merely a        guaranty of collection.   6.    No Demand by Lender Necessary; Waivers by Guarantor. The obligations of        Guarantor under this Guaranty must be performed without demand by Lender and will be        unconditional regardless of the genuineness, validity, regularity or enforceability of the        Note, the Loan Agreement, or any other Loan Document, and without regard to any other        circumstance which might otherwise constitute a legal or equitable discharge of a surety,        a guarantor, a borrower or a mortgagor. Guarantor hereby waives, to the fullest extent        permitted by applicable law, all of the following:         (a)   The benefit of all principles or provisions of law, statutory or otherwise, which              are or might be in conflict with the terms of this Guaranty and agrees that              Guarantor's obligations will not be affected by any circumstances, whether or not              referred to in this Guaranty, which might otherwise constitute a legal or equitable              discharge of a surety, a guarantor, a borrower or a mortgagor.         (b)   The benefits of any right of discharge under any and all statutes or other laws              relating to a guarantor, a surety, a borrower or a mortgagor, and any other rights              of a surety, a guarantor, a borrower or a mortgagor under such statutes or laws.         (c)   Diligence in collecting the Indebtedness, presentment, demand for payment,              protest, all notices with respect to the Note and this Guaranty which may be              required by statute, rule of law or otherwise to preserve Lender's rights against              Guarantor under this Guaranty, including notice of acceptance, notice of any              amendment of the Loan Documents, notice of the occurrence of any default or              Event of Default, notice of intent to accelerate, notice of acceleration, notice of              dishonor, notice of foreclosure, notice of protest, and notice of the incurring by              Borrower of any obligation or indebtedness.         (d)   All rights to cause a marshalling of the Borrower's assets or to require Lender to              do any of the following:    Guaranty - Multistate                                                    Page 5  

 

             (i)   Proceed against Borrower or any other guarantor of Borrower's payment                     or performance under the Loan Documents ( an "Other Guarantor").                (ii)  Proceed against any general partner of Borrower or any Other Guarantor if                     Borrower or any Other Guarantor is a partnership.                (iii) Proceed against or exhaust any collateral held by Lender to secure the                     repayment of the Indebtedness.                (iv)  Pursue any other remedy it may now or hereafter have against Borrower,                     or, if Borrower is a partnership, any general partner of Borrower.          (e)   Any right to objectto the timing, manner or conduct of Lender's enforcement of               its rights under any of the Loan Documents.          (f)   Any right to revoke this Guaranty as to any future advances by Lender under the               terms of the Loan Agreement to protect Lender's interest in the Mortgaged               Property.    7.    Modification of Loan Documents. At any time or from time to time and any number of         times, without notice to Guarantor and without affecting the liability of Guarantor, all of         the following will apply:          (a)   Lender may extend the time for payment of the principal of or interest on the               Indebtedness or renew the Indebtedness in whole or in part.          (b)   Lender may extend the time for Borrower's performance of or compliance with               any covenant or agreement contained in the Note, the Loan Agreement or any               other Loan Document, whether presently existing or entered into after the date of               this Guaranty, or waive such performance or compliance.          (c)   Lender may accelerate the Maturity Date of the Indebtedness as provided in the               Note, the Loan Agreement, or any other Loan Document.          (d)   Lender and Borrower may modify or amend the Note, the Loan Agreement, or               any other Loan Document in any respect, including an increase in the principal               amount.          (e)   Lender may modify, exchange, surrender or otherwise deal with any security for               the Indebtedness or accept additional security that is pledged or mortgaged for the               Indebtedness.   8.     Joint and Several Liability. The obligations of Guarantor (and each party named as a         Guarantor in this Guaranty) and any Other Guarantor will be joint and several. Lender, in         its sole and absolute discretion, may take any of the following actions:    Guaranty - Multistate                                                     Page6  

 

       (a)   Lender may bring suit against Guarantor, or any one or more of the parties named               as a Guarantor in this Guaranty, and any Other Guarantor, jointly and severally, or               against any one or more of them.          (b)   Lender may compromise or settle with Guarantor, any one or more of the parties               named as a Guarantor in this Guaranty, or any Other Guarantor, for such               consideration as Lender may deem proper.          (c)   Lender may release one or more of the parties named as a Guarantor in this               Guaranty, or any Other Guarantor, from liability.          (d)   Lender may otherwise deal with Guarantor and any Other Guarantor, or any one               or more of them, in any manner.          No action of Lender described in this Section 8 will affect or impair the rights of Lender         to collect from any one or more of the parties named as a Guarantor under this Guaranty         any amount guaranteed by Guarantor under this Guaranty.    9.    Limited Release of Guarantor Upon Transfer of Mortgaged Property. If Guarantor         requests a release of its liability under this Guaranty in connection with a Transfer which         Lender has approved pursuant to Section 7.05(a) of the Loan Agreement, and Borrower         has provided a replacement Guarantor acceptable to Lender, then one of the following         will apply:          (a)   If Borrower delivers to Lender a Clean Site Assessment, then Lender will release               Guarantor from all of Guarantor's obligations except Guarantor's obligation to               guaranty Borrower's liability under Section 6.12 (Environmental Hazards) or               Section I0.02(b) (Environmental Indemnification) of the Loan Agreement with               respect to any loss, liability, damage, claim, cost or expense which directly or               indirectly arises from or relates to any Prohibited Activities or Conditions existing               prior to the date of the Transfer.          (b)   If Borrower does not deliver a Clean Site Assessment as described in               Section 7.05(b)(i) of the Loan Agreement, then Lender will release Guarantor               from all of Guarantor's obligations except for Guarantor's obligation to guaranty               Borrower's liability under Section 6.12 (Environmental Hazards) or               Section· i O. 02(b) (Environmental Indemnification) of the Loan Agreement.    10.   Subordination of Borrower's Indebtedness to Guarantor. Any indebtedness of         Borrower held by Guarantor now or in the future is and will be subordinated to the         Indebtedness and Guarantor will collect, enforce and receive any such indebtedness of         Borrower as trustee for Lender, but without reducing or affecting in any manner the         liability of Guarantor under the other provisions of this Guaranty.    11.  Waiver of Subrogation. Guarantor will have no right of, and hereby waives any claim        for, subrogation or reimbursement against Borrower or any general partner of Borrower   Guaranty - Multistate                                                     Page 7  

 

       by reason of any payment by Guarantor under this Guaranty, whether such right or claim         arises at law or in equity or under any contract or statute, until the Indebtedness has been         paid in full and there has expired the maximum possible period thereafter during which         any payment made by Borrower to Lender with respect to the Indebtedness could be         deemed a preference under the United States Bankruptcy Code.    12.   Preference. If any payment by Borrower is held to constitute a preference under any         applicable bankruptcy, insolvency, or similar laws, or if for any other reason Lender is         required to refund any sums to Borrower, such refund will not constitute a release of any         liability of Guarantor under this Guaranty. It is the intentiop of Lender and Guarantor that         Guarantor's obligations under this Guaranty will not be discharged except by Guarantor's         performance of such obligations and then only to the extent of such performance.    13.   Financial Information and Litigation. Guarantor will deliver each of the following to         Lender within 10 Business Days following a Notice from Lender requesting such         information:          (a)   Guarantor's balance sheet and profit and loss statement as of the end of (A) the               quarter that ended at least 30 days prior to the due date of the requested items,               and/or (B) the fiscal year that ended at least 90 days prior to the due date of the               requested items.          (b)   Other Guarantor financial statements as Lender may reasonably require.          ( c)  Written updates on the status of all litigation proceedings that Guarantor disclosed               or should have disclosed to Lender as of the date of this Guaranty..           (d)   If an Event of Default has occurred and is continuing, copies of Guarantor's most               recent filed state and federal tax returns, including any current tax return               extensions.    14.   Assignment. Lender may assign its rights under this Guaranty in whole or in part and         upon any such assignment, all the terms and provisions of this Guaranty will inure to the        benefit of such assignee to the extent so assigned. The terms used to designate any of the        parties in this Guaranty will be deemed to include the heirs, legal representatives,         successors and assigns of such parties, and the term "Lender" will also include any lawful         owner, holder or pledgee of the Note.    15.   Complete and Final Agreement. This Guaranty and the other Loan Documents        represent the final agreement between the parties and may not be contradicted by         evidence of prior, contemporaneous or subsequent oral agreements. There are no        unwritten oral agreements between the parties. All prior or contemporaneous agreements,         understandings, representations, and statements, oral or written, are merged into this         Guaranty and the other Loan Documents. Guarantor acknowledges that Guarantor has        received a copy of the Note and all other Loan Documents. Neither this Guaranty nor any         of its provisions may be waived, modified, amended, discharged, or terminated except by   Guaranty - Multistate                                                     Page8  

 

      a writing signed by the party against which the enforcement of the waiver, modification,        amendment, discharge, or termination is sought, and then only to the extent set forth in        that writing.   16.   Governing Law. This Guaranty will be governed by and enforced in accordance with the        laws of the Property Jurisdiction, without giving effect to the choice of law principles of        the Property Jurisdiction that would require the application of the laws of a jurisdiction        other than the Property Jurisdiction.   17.   Jurisdiction; Venue. Guarantor agrees that any controversy arising under or in relation        to this Guaranty may be litigated in the Property Jurisdiction, and that the state and        federal courts and authorities with jurisdiction in the Property Jurisdiction will have        jurisdiction over all controversies which may arise under or in relation to this Guaranty.        Guarantor irrevocably consents to service, jurisdiction and venue of such courts for any        such litigation and waives any other venue to which it might be entitled by virtue of        domicile, habitual residence or otherwise. However, nothing in this Guaranty is intended        to limit Lender's right to bring any suit, action or proceeding relating to matters arising        under this Guaranty against Guarantor or any of Guarantor's assets in any court of any        other jurisdiction.   18.   Guarantor's Interest in Borrower. Guarantor represents to Lender that Guarantor has a        direct or indirect ownership or other financial interest in Borrower and/or will otherwise        derive a material financial benefit from the making of the Loan.   19.   Reserved.   20.   Reserved.   21.   Reserved.   22.   Term of Existence.         (a)   This Section 22 will only apply to any Guarantor(s) that is an entity whose term              of existence expires prior to the Maturity Date.         (b)   At least 6 months prior to the expiration of its term of existence (''Term"), each              entity Guarantor must take one of the following actions ("Guarantor Expiration              Alternatives"):               (i)   Extend its Term to a date that is at least 6 month$ after the Maturity Date                    ("Ext.ension") and provide Lender with Notice of the Extension.               (ii)  Cause one or more natural persons or entities who individually or                    collectively, as applicable, is/are acceptable to Lender, to execute and                    deliver to Lender a guaranty in the same form as this Guaranty, without                    any cost or expense to Lender.    Guaranty - Multistate                                                     Page 9  

 

             (iii) Deliver to Lender a letter of credit ("Term Extension Letter of Credit")                     or other collateral acceptable to Lender as collateral security for the Loan.                     The Term Extension Letter of Credit must meet all of the following                     conditions:                      (A)   Satisfy the requirements for Letters of Credit in Section 11.15 of                           the Loan Agreement.                      (B)   Be in an amount equal to 10% of the outstanding principal balance                           of the Note.                      (C)   Include an automatic renewal provision or have a term that extends                           six months beyond the Maturity Date of the Loan.          (c)   Guarantor must ensure the Term Extension Letter of Credit remains in force until               the Loan is paid in full. If Lender receives any Notice from the Term Extension               Letter of Credit Issuer that Issuer will not renew the Term Extension Letter of               Credit, then Lender may immediately draw upon the Term Extension Letter of               Credit in full and hold the proceeds in an escrow account.          (d)   Lender wili hold the Term Extension Letter of Credit or, if Lender has previously               drawn on the Term Extension Letter of Credit pursuant to Section 22( c),  the               proceeds of the Term Extension Letter of Credit, until the first to occur of the               following:                (i)   Lender has a claim against Guarantor under the terms of this Guaranty, in                     which case Lender may take either of the following actions:                      (A)   Draw on the Term Extension Letter of Credit in an amount equal to                           the claim and apply the proceeds to fully or partially satisfy the                           claim.                      (B)   If Lender has previously drawn on the Term Extension Letter of                           Credit pursuant to Section 22( c),  then Lender may apply the                           proceeds of such draw to fully or partially satisfy the claim.                      If the amount of the claim exceeds the amount of the Term Extension                     Letter of Credit, Guarantor wiH remain liable to Lender for the remainder                     of the claim.                (ii)  The Loan is paid in full.          (e)   The requirement to provide a Term Extension Letter of Credit is in addition to,               and not in substitution for, any requirement to provide a Letter of Credit pursuant               to the Minimum Net Worth/Liquidity Rider to Guaranty (if.applicable) or any               other Letter of Credit required under the terms of the Loan Documents.   Guaranty - Multistate                                                    Page 10  

 

      (f)   If Guarantor fails to exercise one of the Guarantor Expiration Alternatives at least              6 months prior to the expiration of the Term ("Term Expiration Date"),              Guarantor must deliver to Lender monthly financial statements ( each a              "Guarantor Financial Statement") in the form required under Section 6.07(f) of              the Loan Agreement.               (i)   Guarantor must begin delivering the Guarantor Financial Statement on the                    first day of the month which is 6 months prior to the Term Expiration Date                    arid continue delivering the Guarantor Financial Statement on the first day                    of every month thereafter until Guarantor exercises one of the Guarantor                    Expiration Alternatives. The Guarantor Financial Statement must                    demonstrate a net worth and liquidity that are acceptable to Lender. If a                    Guarantor Financial Statement indicates that Guarantor's net worth or                    liquidity is unacceptable to Lender, upon Notice from Lender, Guarantor                    must immediately exercise one of the Guarantor Expiration Alternatives.               (ii)  Guarantor must exercise one of the Guarantor Expiration Alternatives                    prior to the Term Expiration Date.               (iii) Guarantor's requirements to deliver the Guarantor Financial Statements                    are in addition to any other requirements set forth in the Loan Documents                    requiring Guarantor to deliver any financial information (including the                    Guarantor's requirements regarding financial covenants set forth in                    Section 20).   23.   Reserved.   24.   Reserved.   25.   State-Specific Provisions. State-specific provisions, if any, are included on Schedule 1        to this Guaranty.   26.   Community Property. If Guarantor (or any Guarantor, if more than one) is a married        person, and the state of residence of Guarantor or his or her spouse ("Guarantor        Spouse") is a community property jurisdiction, then each of the following apply:         (a)   Guarantor (or each such married Guarantor, if more than one) agrees that Lender              may satisfy Guarantor's obligations under this Guaranty to the extent of all of              Guarantor's separate property and against the marital community property of              Guarantor and Guarantor Spouse.                         ··         (b)   If Guarantor Spouse is not also a Guarantor of the Loan, Guarantor certifies that              none of the assets shown on his or her financial statements submitted to Lender              for purposes of underwriting the Loan were either (i) Guarantor Spouse's              individual property, or (ii) community property under the sole management,              control, and disposition of Guarantor Spouse.   Guaranty - Multistate                                                    Page 11  

 

       ( c)  If Guarantor or Guarantor Spouse resides in Alaska, Arizona, Idaho, Louisiana,               Nevada, New Mexico, Washington or Wisconsin, Guarantor has caused               Guarantor Spouse to acknowledge this Guaranty as required on the signature page               of this Guaranty.   27.    WAIVER OF TRIAL BY JURY.         (a)    GUARANTOR AND LENDER EACH COVENANTS AND AGREES NOT               TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE               ARISING OUT OF THIS GUARANTY OR THE RELATIONSHIP               BETWEEN THE PARTIES AS GUARANTOR AND LENDER THAT IS               TRIABLE OF RIGHT BY A JURY.         (b)    GUARANTOR AND LENDER EACH WAIVES ANY RIGHT TO TRIAL               BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT               ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER               OF RIGHT TO TRIAL BY JURY IS SEPARA     TEL Y  GIVEN BY EACH               PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF               COMPETENT LEGAL COUNSEL.   28.   Notices. All Notices required under this Guaranty will be provided in accordance with        the requirements of Section 11.03 of the Loan Agreement. Guarantor's address for        Notices is as set forth on the signature page of this Guaranty unless changed in         accordance with this Section 28.               .                .  29.   Attached Schedules and Riders. The following Schedules and Riders, if marked with         an "X" in the space provided, are attached to this Guaranty:          IXI   Schedule 1 - State Specific Provisions .          I_I   Material Adverse Change Rider          I_I   Minimum Net ,Worth/Liquidity Rider          I_I   Other~---------  30.    Attached Exhibit. The following Exhibit, if marked with an "X" in the space provided,         is attached to this Guaranty:          IXI . . Exhibit A Modifications to Guaranty                  (Remainder of page intentionally left_blank; signature pages follow.)   Guaranty - Multistate                                                    Page 12  

 

IN WITNESS WHEREOF, Guarantor has signed and delivered this Guaranty under seal or has  caused this Guaranty to be signed and delivered under seal by its duly authorized representative.  Where applicable law provides, Guarantor intends that this Guaranty will be deemed to be signed  and delivered as a sealed instrument.                                   GUARANTOR:                                   STEADFAST INCOME REIT, INC.                                  a Maryland corporation                                   By:    Guaranty - Multistate                                                        Page S-1  

 

(a)   Guarantor's Notice Address:         Name:       Steadfast Income REIT, Inc.        Address:    clo Steadfast Companies                    18100 Von Karman Avenue, Suite 500                    Irvine, California 92612                    Attention: Ana Marie del Rio, General Counsel   (b)   Guarantor represents and warrants that Guarantor is:         [__] married        [_] single        [X] an entity   ( c)  If Guarantor is married, then Guarantor represents and warrants that Guarantor's state of        residence is NIA and Guarantor Spouse's state ofresidence is NIA.        Note: If Guarantor is an entity or an unmarried person, insert "NIA" in each blank.   ( d)  If Guarantor (i) is married, and (ii) Guarantor Spouse is not also a Guarantor of this Loan,        and (iii) Guarantor or Guarantor Spouse's state of residence is Alaska, Arizona, Idaho,        Louisiana, Nevada, New Mexico, Washington, or Wisconsin, then Guarantor must cause        Guarantor Spouse to sign below in accordance with Section 26 of this Guaranty.         Any person signing this Guaranty solely as a Guarantor Spouse will bind only Guarantor        Spouse 's marital community property and will not bind Guarantor Spouse 's separate       property to the payment and performance ofthe  Guarantor's obligations under this        Guaranty.         Note: If Guarantor is an entity or an unmarried person, insert "NIA'' in each blank.        Guarantor Spouse's Signature: NIA        Guarantor Spouse's Printed Name: NIA        Guarantor Spouse's Address:   NIA   (e)   If Guarantor is an entity, Guarantor represents and warrants that Guarantor's term of        existence, excluding any renewal or extension options:         Select one        [__] does not expire during the term of the Loan.        LX_] expires during the te1m of the Loan, and that the expiration date is [See Exhibit        "A"].    Guaranty - Multistate                                                   Page S-2  

 

                                 SCHEDULE 1                            STATE SPECIFIC PROVISIONS   I Alabama     I None    Guaranty - Multistate                                           Schedule 1 - Page l  

 

                                   EXHIBIT A                           MODIFICATIONS TO    GUARANTY    The following modifications are made to the text of the Guaranty that precedes this Exhibit:    1.    Sections 22(b )(ii) and 22( c) are deleted in their entirety and replaced with the following:                     (ii)  Cause one or more natural persons or entities who individually or                           collectively, as applicable, is/are acceptable to Lender, to execute                           and deliver to Lender a guaranty in the same form as this                           Guaranty, without any cost or expense to Lender. If the                           replacement Guarantor is an entity other than a publicly-held                           REIT, the replacement Guaranty must be modified to include                           Freddie Mac's standard form Minimum Net Worth/Liquidity                           Rider  to Guaranty   reflecting a minimum   net  worth                           requirement of $15,000,000 and a minimum required liquidity                           of $4,875,000.               (c)   Guarantor must ensure the Term Extension Letter of Credit remains in                     force until the Loan is paid in full. If Lender receives any Notice from the                     Term Extension Letter of Credit Issuer that Issuer will not renew the Term                     Extension Letter of Credit, then Lender may immediately draw upon the                     Term Extension Letter of Credit in full and hold the proceeds in an escrow                     account. The Term Extension Letter of Credit or other collateral                     delivered by Guarantor to Lender shall be drawn upon and the                     proceeds thereof applied only to satisfy Guarantor's obligations under                     this Guaranty.                           ·   2.     Subpart (e)  of the Guarantor Information following the signature page is deleted in its         entirety and replaced with the following:               (e)   If Guarantor is an entity, Guarantor represents and warrants that                     Guarantor's term of existence, excluding · any renewal or extension                     options:                     [__ ]  does .not expire during the term of the Loan.                     [ X ] · expires during the term of the Loan, and that the expiration datii is                           was originally December 31, 2016 but subsequently deferred                           on an annual basis until such time as shareholder approval of                           liquidation is obtained ..    Guaranty - Multistate                                                 Exhibit A- 1a105note20190926

                                                                          EXHIBIT 10.5   Freddie Mac Loan Number: 499673646  Property Name: Tapestry Park at Montclair                                MULTIFAMILY NOTE                             FIXED RATE DEFEASANCE                                  (Revised 4-10-2019)    us $48,750,000.00                            Effective Date: as of September 26, 2019   FOR VALUE RECEIVED, SIR TAPESTRY PARK, LLC, a Delaware limited liability  company (together with such party's or parties' successors and assigns, "Borrower") jointly and  severally (if more than one), promises to pay to the order of BERKELEY POINT CAPITAL  LLC, d/b/a NEWMARK KNIGHT FRANK, a Delaware limited liability company, the  principal sum of $48,750,000.00, with interest on the unpaid principal balance, as hereinafter  provided.   1.    Defined Terms.         (a)   As used in this Note:               "Base Recourse" means a portion of the Indebtedness equal to 0% of the original              principal balance of this Note.               "Business Day" means any day other than a Saturday, a Sunday or any other day              on which Lender or the national banking associations are not open for business.               "Cut-off Date" means the 12th Installment Due Date.               "Defeasance Date" means the 2nd anniversary of the "startup date" of the last              REMIC within the meaning of Section 860G(a)(9) of the Tax Code which holds              all or any portion of the Loan.               "Default Rate" means an annual interest rate equal to 4 percentage points above              the Fixed Interest Rate. However, at no time will the Default Rate exceed the              Maximum Interest Rate.               "Defeasance Period" is the period beginning the day after the Defeasance Date              until but not including the first day of the Window Period. The Defeasance Period              only applies if this Note is assigned to a REMIC trust prior to the Cut-off Date.               "First Installment Due Date" means November 1, 2019.    Multifamily Note  Fixed Rate Defeasance                                                     Page 1  

 

            "First Principal and Interest Installment Due Date" means November 1, 2024.               "Fixed Interest Rate" means the annual interest rate of 3.66%.               "Installment Due Date" means, for any monthly installment of interest-only or              principal and interest, the date on which such monthly installment is due and              payable pursuant to Section 3 of this Note.               "Lender" means the holder from time to time of this Note.               "Loan" means the loan evidenced by this Note.               "Loan Agreement" means the Multifamily Loan and Security Agreement entered              into by and between Borrower and Lender, effective as of the effective date of              this Note, as amended, modified or supplemented from time to time.               "Lockout Period" means the period beginning on the day that this Note is              assigned to a REMIC trust until and including the Defeasance Date. The Lockout              Period only applies if this Note is assigned to a REMIC trust prior to the Cut-off              Date.               "Maturity Date" means the earlier of (i) October 1, 2029 ("Scheduled Maturity              Date") and (ii) the date on which the unpaid principal balance of this Note              becomes due and payable by acceleration or otherwise pursuant to the Loan              Documents or the exercise by Lender of any right or remedy under any Loan              Document; provided, however, that if the unpaid principal balance of this Note              becomes due and payable by acceleration but such acceleration is rendered null              and void and of no further force and effect by operation of law or agreement by              Lender, such acceleration will have no effect on the Maturity Date.               "Maximum Interest Rate" means the rate of interest which results in the              maximum amount of interest allowed by applicable law.               "Prepayment Premium Period" means the period during which, if a prepayment              of principal occurs, a prepayment premium will be payable by Borrower to              Lender.               (a)   If this Note is assigned to a REMIC trust prior to the Cut-off Date, then                    the Prepayment Premium Period is the period from and including the date                    of this Note until but not including the day that this Note is assigned to a                    REMIC  trust.               (b)   If this Note is assigned to a REMIC trust after the Cut-off Date or is not                    assigned to a REMIC trust, then the Prepayment Premium Period is the                    period from and including the date of this Note until but not including the                    first day of the Window Period.   Multifamily Note  Fixed Rate Defeasance                                                     Page 2  

 

            "Security Instrument" means the multifamily mortgage, deed to secure debt or              deed of trust effective as of the effective date of this Note, from Borrower to or              for the benefit of Lender and securing this Note, as amended, modified or              supplemented from time to time.               "Window Period" means the 3 consecutive calendar month period prior to the              Scheduled Maturity Date. If the first day of the Window Period falls on a day              which is not a Business Day, then with respect to payments made under Section              10 or Section 11, the "Window Period" will begin on the Business Day              immediately preceding the scheduled first day of the Window Period.               "Yield Maintenance Expiration Date" means April 1, 2029.               "Yield Maintenance Period" means the period from and including the date of              this Note until but not including (i) the day that this Note is assigned to a REMIC              trust, if this Note is assigned to a REMIC trust prior to the Cut-off Date, or (ii) the              Yield Maintenance Expiration Date, if this Note is not assigned to a REMIC trust              or if this Note is assigned to a REMIC trust on or after the Cut-off Date.         (b)   Other capitalized terms used but not defined in this Note will have the meanings              given to such terms in the Loan Agreement.   2.    Address  t or p aymen.t  All payment  s d ue und  er th'IS  N o t ew1·11  b epayabl ea t         Payment Mailing Address:                       Payment Wiring Instructions:                              Payment Overnight Address:        Berkeley Point Capital LLC,                    PNCBank,NA                              Berkeley Point Capital LLC, d/b/a        d/b/a Newmark Knight Frank                     ABA#043000096                              Newmark Knight Frank Lockbox        Lockbox                                        Berkeley Point Capital LLC, d/b/a                              Box 773194        Box 773194                                     Newmark Knight Frank                              350 East Devon A venue        3194 Solutions Center                          Credit #1019788912                              Itasca, IL 60143        Chicago, IL 60677-3001                         Ref Loan #201941012  or such other place as may be designated by Notice to Borrower from or on behalf of Lender.   3.    Payments.         (a)   Interest will accrue on the outstanding principal balance of this Note at the Fixed              Interest Rate, subject to the provisions of Section 8 of this Note.         (b)   Interest under this Note will be computed, payable and allocated on the basis of              an actual/360 interest calculation schedule (interest is payable for the actual              number of days in each month, and each month's interest is calculated by              multiplying the unpaid principal amount of this Note as of the first day of the              month for which interest is being calculated by the Fixed Interest Rate, dividing              the product by 360, and multiplying the quotient by the number of days in the              month for which interest is being calculated). The portion of the monthly              installment of principal and interest under this Note attributable to principal and              the portion attributable to interest will vary based upon the number of days in the   Multifamily Note  Fixed Rate Defeasance                                                     Page3  

 

            month for which such installment is paid. Each monthly payment of principal and              interest will first be applied to pay in full interest due, and the balance of the              monthly installment payment paid by Borrower will be credited to principal.         (c)   Unless disbursement of principal is made by Lender to Borrower on the first day              of a calendar month, interest for the period beginning on the date of disbursement              and ending on and including the last day of such calendar month will be payable              by Borrower simultaneously with the execution of this Note. If disbursement of              principal is made by Lender to Borrower on the first day of a calendar month,              then no payment will be due from Borrower at the time of the execution of this              Note. The Installment Due Date for the first monthly installment payment under              Section 3(d) of interest-only or principal and interest, as applicable, will be the              First Installment Due Date set forth in Section l(a) of this Note. Except as              provided in this Section 3(c), Section 10, and in Section 11, accrued interest will              be payable in arrears.         (d)   (i)   Beginning on the First Installment Due Date, and continuing until and                    including the Installment Due Date immediately prior to the First Principal                    and Interest Installment Due Date, accrued interest-only will be payable                    by Borrower in consecutive monthly installments due and payable on the                    first day of each calendar month. The amount of each monthly installment                    of interest-only payable pursuant to this Section 3(d)(i) on an Installment                    Due Date will vary, and will equal $4,956.25000 multiplied by the number                    of days in the month prior to the Installment Due Date.               (ii)  Beginning on the First Principal and Interest Installment Due Date, and                    continuing until and including the monthly installment due on the Maturity                    Date, principal and accrued interest will be payable by Borrower in                    consecutive monthly installments due and payable on the first day of each                    calendar month. The amount of the monthly installment of principal and                    interest payable pursuant to this Section 3(d)(ii) on an Installment Due                    Date will be $223,286.46.         (e)   Reserved.         (f)   Reserved.         (g)   Reserved.         (h)   All remaining Indebtedness, including all principal and interest, will be due and              payable by Borrower on the Maturity Date.         (i)   Reserved.         U)    All payments under this Note must be made in immediately available U.S. funds.    Multifamily Note  Fixed Rate Defeasance                                                     Page4  

 

      (k)   Any regularly scheduled monthly installment of interest-only or principal and              interest payable pursuant to this Section 3 that is received by Lender before the              date it is due will be deemed to have been received on the due date for the              purpose of calculating interest due.         (1)   Any accrued interest remaining past due for 30 days or more, at Lender's              discretion, may be added to and become part of the unpaid principal balance of              this Note and any reference to "accrued interest" will refer to accrued interest              which has not become part of the unpaid principal balance. Any amount added to              principal pursuant to the Loan Documents will bear interest at the applicable rate              or rates specified in this Note and will 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.         (m)    through (q) are Reserved.   4.    Application of Partial 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 the amount received 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 will constitute or be deemed to constitute either a waiver of        the unpaid amounts or an accord and satisfaction.   5.    Security. The Indebtedness is secured by, among other things, the Security Instrument        and reference is made to the Security Instrument and the Loan Agreement for other rights        with respect to collateral for the Indebtedness.   6.    Acceleration. If an Event of Default has occurred and is continuing, the entire unpaid        principal balance, any accrued interest, any prepayment premium payable under        Section 10 and Section 11, and all other amounts payable under this Note and any other        Loan Document, will at once become due and payable, at the option of Lender, without        any prior Notice to Borrower (except if notice is required by applicable law, then after        such notice). Lender may exercise this option to accelerate regardless of any prior        forbearance. For purposes of exercising such option, Lender will calculate the        prepayment premium as if prepayment occurred on the date of acceleration. If        prepayment occurs thereafter, Lender will recalculate the prepayment premium as of the        actual prepayment date.   7.    Late Charge.         (a)   If any monthly installment of interest or principal and interest or other amount              payable under this Note or under the Loan Agreement or any other Loan              Document is not received in full by Lender within 10 days after the installment or              other amount is due, counting from and including the date such installment or   Multifamily Note  Fixed Rate Defeasance                                                     Page5  

 

            other amount is due (unless applicable law requires a longer period of time before              a late charge may be imposed, in which event such longer period will be              substituted), Borrower must pay to Lender, immediately and without demand by              Lender, a late charge equal to 5% of such installment or other amount due (unless              applicable law requires a lesser amount be charged, in which event such lesser              amount will be substituted). If the Loan is not fully amortizing, the late charge              will not be due on the final payment of principal owed on the Maturity Date if              such payment is not timely made.         (b)   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 Section 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 Section 8.   8.    Defa ult  Rate.         (a)   So long as (i) any monthly installment under this Note remains past due for              30 days or more or (ii) any other Event of Default has occurred and is continuing,              then notwithstanding anything in Section 3 of this Note to the contrary, interest              under this Note will accrue on the unpaid principal balance from the Installment              Due Date of the .first such unpaid monthly installment or the occurrence of such              other Event of Default, as applicable, at the Default Rate.         (b)   From and after the Maturity Date, the unpaid principal balance will continue to              bear interest at the Default Rate until and including the date on which the entire              principal balance is paid in full.         (c)   Borrower acknowledges that (i) its failure to make timely payments will cause              Lender to incur additional expenses in servicing and processing the Loan,              (ii) during the time that any monthly installment under this Note is delinquent for              30 days or more, 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              opportunities, and (iii) it is extremely difficult and impractical to determine those              additional costs and expenses. Borrower also acknowledges that, during the time              that any monthly installment under this Note is delinquent for 30 days or more or              any other Event of Default has occurred and is continuing, 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   Multifamily Note  Fixed Rate Defeasance                                                     Page6  

 

            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 Section 9, none of Borrower, SPE Equity              Owner, or any member or limited partner of Borrower will have any personal              liability under this Note, the Loan Agreement or any other Loan Document for the              repayment of the Indebtedness or for the performance of or compliance with 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 will be Lender's exercise of its rights and remedies with respect to the              Mortgaged Property and to any other collateral held by Lender as security for the              Indebtedness. This limitation on Borrower's liability will not limit or impair              Lender's enforcement of its rights against any Guarantor of the Indebtedness or              any Guarantor of any other obligations of Borrower.         (b)   Borrower will be personally liable to Lender for the amount of the Base Recourse,              plus any other amounts for which Borrower has personal liability under this              Section 9.         (c)   In addition to the Base Recourse, Borrower will be personally liable to Lender for              the repayment of a further portion of the Indebtedness equal to any loss or damage              suffered by Lender as a result of the occurrence of any of the following events:               (i)   Borrower fails to pay to Lender upon demand after an Event of Default all                    Rents to which Lender is entitled under Section 3 of the Security                    Instrument and the amount of all security deposits collected by Borrower                    from tenants then in residence. However, Borrower will not be personally                    liable for any failure described in this Section 9(c)(i) if Borrower is unable                    to pay to Lender all Rents and security deposits as required by the Security                    Instrument because of a valid order issued in, or an automatic stay                    applicable because of, a bankruptcy, receivership, or similar judicial                    proceeding.               (ii)  Borrower fails to apply all Insurance proceeds and Condemnation                    proceeds as required by the Loan Agreement. However, Borrower will not                    be personally liable for any failure described in this Section 9(c)(ii) if                    Borrower is unable to apply Insurance or Condemnation proceeds as                    required by the Loan Agreement because of a valid order issued in, or an                    automatic stay applicable because of, a bankruptcy, receivership, or                    similar judicial proceeding.               (iii) Either of the following occurs:    Multifamily Note  Fixed Rate Defeasance                                                     Page 7  

 

                  (A)   Borrower fails to deliver the statements, schedules and reports                          required by Section 6.07 of the Loan Agreement and Lender                          exercises its right to audit those statements, schedules and reports.                     (B)   If an Event of Default has occurred and is continuing, Borrower                          fails to deliver all books and records relating to the Mortgaged                          Property or its operation in accordance with the provisions of                          Section 6.07 of the Loan Agreement.               (iv)  Borrower fails to pay when due in accordance with the terms of the Loan                    Agreement the amount of any item below marked "Deferred"; provided                    however, that if no item is marked "Deferred", this Section 9(c)(iv) will be                    of no force or effect.                     [Collect]   Property Insurance premiums or other Insurance premiums                    [Collect]  . Taxes or payments in lieu of taxes (PILOT)                    [Deferred]  water and sewer charges (that could become                                a lien on the Mortgaged Property)                    [NIA]       Ground Rents                    [Deferred]  assessments or other charges (that could become a                                lien on the Mortgaged Property), including home                                owner association dues               (v)   Borrower engages in any willful act of material waste of the Mortgaged                    Property.               (vi)  Borrower fails to comply with any provision of Section 6.13(a)(iii)                    through (xxvi) of the Loan Agreement or any SPE Equity Owner fails to                    comply with any provision of Section 6.13(b )(iii) through (v) of the Loan                    Agreement (subject to possible full recourse liability as set forth in Section                    9(f)(ii) ).               (vii) Any of the following Transfers occurs:                     (A)   Any Person that is not an Affiliate creates a mechanic's lien or                          other involuntary lien or encumbrance against the Mortgaged                          Property and Borrower has not complied with the provisions of the                          Loan Agreement.                     (B)   A Transfer of property by devise, descent or operation of law                          occurs upon the death of a natural person and such Transfer does                          not meet the requirements set forth in the Loan Agreement.                     (C)   Borrower grants an easement that does not meet the requirements                          set forth in the Loan Agreement.    Multifamily Note  Fixed Rate Defeasance                                                     Page8  

 

                  (D)   Borrower executes a Lease that does not meet the requirements set                          forth in the Loan Agreement.               (viii) Reserved.               (ix)  through (xviii) are Reserved.               (xix) Borrower fails to complete any Property Improvement Alterations that                    have been commenced in accordance with Section 6.09(e)(v) of the Loan                    Agreement.               (xx)  Reserved.               (xxi) Borrower or any officer, director, partner, member or employee of                    Borrower makes an unintentional written material misrepresentation in                    connection with ( 1) the application for or creation of the Indebtedness, or                    (2) any action or consent of Lender; provided that the assumption will be                    that any written material misrepresentation was intentional and the burden                    of proof will be on Borrower to prove that there was no intent.               (xxii) through (xxviii) are Reserved.         (d)   In addition to the Base Recourse, Borrower will be personally liable to Lender for              all of the following:               (i)   Borrower will be personally liable for the performance of all of                    Borrower's obligations under Sections 6.12, 10.02(b) and 10.02(e) of the                    Loan Agreement.               (ii)  Borrower will be personally liable for the costs of any audit under                    Section 6.07 of the Loan Agreement.               (iii) Borrower will be personally liable for any costs and expenses incurred by                    Lender in connection with the collection of any amount for which                    Borrower is personally liable under this Section 9, including Attorneys'                    Fees and Costs and the costs of conducting any independent audit of                    Borrower's books and records to determine the amount for which                    Borrower has personal liability.               (iv)  through (viii) are Reserved.               (ix)  Borrower will be personally liable for any fees, costs, or expenses incurred                    by Lender in connection with Borrower's termination of any agreement                    for the provision of services to or in connection with the Mortgaged                    Property, including cable, internet, garbage collection, landscaping,                    security, and cleaning.   Multifamily Note  Fixed Rate Defeasance                                                     Page 9  

 

            (x)   Reserved.               (xi)  Reserved.         (e)   All payments made by Borrower with respect to the Indebtedness and all amounts              received by Lender from the enforcement of its rights under the Loan Agreement              and the other Loan Documents will be applied first to the portion of the              Indebtedness for which Borrower has no personal liability.         (f)   Notwithstanding the Base Recourse, Borrower will become personally liable to              Lender for the repayment of all of the Indebtedness upon the occurrence of any of              the following Events of Default:               (i)   Borrower fails to comply with Section 6.13(a)(i) or (ii) of the Loan                    Agreement or any SPE Equity Owner fails to comply with Section                    6. l 3(b )(i) or (ii) of the Loan Agreement.               (ii)  Borrower fails to comply with any provision of Section 6.13(a)(iii)                    through (xxvi) of the Loan Agreement or any SPE Equity Owner fails to                    comply with any provision of Section 6.13(b )(iii) through (v) of the Loan                    Agreement and a court of competent jurisdiction holds or determines that                    such failure or combination of failures is the basis, in whole or in part, for                    the substantive consolidation of the assets and liabilities of Borrower or                    any SPE Equity Owner with the assets and liabilities of a debtor pursuant                    to Title 11 of the Bankruptcy Code.               (iii) A Transfer that is an Event of Default under Section 7 .01 of the Loan                    Agreement occurs other than a Transfer set forth in Section 9(c)(vii) above                    (for which Borrower will have personal liability for Lender's loss or                    damage); provided, however, that Borrower will not have any personal                    liability for a Transfer consisting solely of the involuntary removal or                    involuntary withdrawal of a general partner in a limited partnership or a                    manager in a limited liability company.               (iv)  There was fraud or intentional written material misrepresentation by                    Borrower or any officer, director, partner, member, or employee of                    Borrower in connection with ( 1) the application for or creation of the                    Indebtedness, (2) on-going financial or other reporting requirements or                    information required by the Loan Documents, or (3) any action or consent                    of Lender.               (v)   Borrower or any SPE Equity Owner voluntarily files for bankruptcy                    protection under the Bankruptcy Code.    Multifamily Note  Fixed Rate Defeasance                                                    Page 10  

 

            (vi)  Borrower or any SPE Equity Owner voluntarily becomes subject to any                    reorganization, receivership, insolvency proceeding, or other similar                    proceeding pursuant to any other federal or state law affecting debtor and                    creditor rights.               (vii) The Mortgaged Property or any part of the Mortgaged Property becomes                    an asset in a voluntary bankruptcy or becomes subject to any voluntary                    reorganization, receivership, insolvency proceeding, or other similar                    voluntary proceeding pursuant to any other federal or state law affecting                    debtor and creditor rights.               (viii) An order of relief is entered against Borrower or any SPE Equity Owner                    pursuant to the Bankruptcy Code or other federal or state law affecting                    debtor and creditor rights in any involuntary bankruptcy proceeding                    initiated or joined in by a Related Party.               (ix)  An involuntary bankruptcy or other involuntary insolvency proceeding is                    commenced against Borrower or any SPE Equity Owner (by a party other                    than Lender) but only if Borrower or such SPE Equity Owner has failed to                    use commercially reasonable efforts to dismiss such proceeding or has                    consented to such proceeding. "Commercially reasonable efforts" will not                    require any direct or indirect interest holders in Borrower or any SPE                    Equity Owner to contribute or cause the contribution of additional capital                    to Borrower or any SPE Equity Owner.               (x)   through (xiii) are Reserved.         (g)   For purposes of Sections 9(f) and (h), the term "Related Party" will include all of              the following:               (i)   Borrower, any Guarantor, or any SPE Equity Owner.               (ii)  Any Person that holds, directly or indirectly, any ownership interest                    (including any shareholder, member or partner) in Borrower, any                    Guarantor, or any SPE Equity Owner or any Person that has a right to                    manage Borrower, any Guarantor, or any SPE Equity Owner.               (iii) Any Person in which Borrower, any Guarantor, or any SPE Equity Owner                    has any ownership interest (direct or indirect) or right to manage.               (iv)  Any Person in which any partner, shareholder, or member of Borrower,                    any Guarantor, or any SPE Equity Owner has an ownership interest or                    right to manage.               (v)   Any Person in which any Person holding an interest in Borrower, any                    Guarantor, or any SPE Equity Owner also has any ownership interest.   Multifamily Note  Fixed Rate Defeasance                                                    Page 11  

 

            (vi)  Any creditor (as defined in the Bankruptcy Code) of Borrower that is                    related by blood, marriage or adoption to Borrower, any Guarantor, or any                    SPE Equity Owner.               (vii) Any creditor (as defined in the Bankruptcy Code) of Borrower that is                    related to any partner, shareholder or member of, or any other Person                    holding an interest in, Borrower, any Guarantor, or any SPE Equity                    Owner.         (h)   If Borrower, any Guarantor, any SPE Equity Owner, or any Related Party has              solicited creditors to initiate or participate in any proceeding referred to in              Section 9(f), regardless of whether any of the creditors solicit~d actually initiates              or participates in the proceeding, then such proceeding will be considered as              having been initiated by a Related Party.         (i)   To the extent that Borrower has personal liability under this Section 9, Lender              may, to the fullest extent permitted by applicable law, 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 Loan Agreement, any other Loan Document, or applicable law. To the              fullest extent permitted by applicable law, in any action to enforce Borrower's              personal liability under this Section 9, Borrower waives any right to set off the              value of the Mortgaged Property against such personal liability.   10.   Voluntary and Involuntary Prepayments (Section Applies unless and until Loan is        Assigned to REMIC Trust Prior to the Cut-off Date).         (a)   This Section 10 will apply:               (i)   Until this Note is assigned to the REMIC trust, if this Note is assigned to a                    REMIC trust prior to the Cut-off Date.               (ii)  If this Note is assigned to a REMIC trust on or after the Cut-off Date.               (iii) If this Note is not assigned to a REMIC trust.               This Section 10 will be of no effect after this Note is assigned to a REMIC trust, if              this Note is assigned to the REMIC trust prior to the Cut-off Date.         (b)   Any receipt by Lender of principal due under this Note prior to the Maturity Date,              other than principal required to be paid in monthly installments pursuant to              Section 3, constitutes a prepayment of principal under this Note. Without limiting              the foregoing, any application by Lender, prior to the Maturity Date, of any    Multifamily Note  Fixed Rate Defeasance                                                    Page 12  

 

            proceeds of collateral or other security to the repayment of any portion of the              unpaid principal balance of this Note constitutes a prepayment under this Note.         (c)   To make a voluntary prepayment of all of the unpaid principal balance of this              Note, Borrower must designate the date for such prepayment in a Notice from              Borrower to Lender given at least 30 days prior to the date of such prepayment.              Upon receipt of such Notice from Borrower, if a voluntary prepayment is not              permitted, Lender will notify Borrower. If a voluntary prepayment is permitted,              Borrower may voluntarily prepay all of the unpaid principal balance of this Note              on an Installment Due Date. If an Installment Due Date (as defined in              Section l(a)) falls on a day which is not a Business Day, then with respect to              payments made under this Section 10 only, then (A) the term "Installment Due              Date" will mean the Business Day immediately preceding the scheduled              Installment Due Date and (B) the calculation of any required prepayment              premium will be made as if the prepayment had actually been made on the              scheduled Installment Due Date.         (d)   If a voluntary prepayment is permitted, Borrower may voluntarily prepay all of              the unpaid principal balance of this Note on a Business Day other than an              Installment Due Date if Borrower provides Lender with the Notice set forth in              Section lO(c) and meets the other requirements set forth in this Section lO(d).              Borrower acknowledges that Lender has agreed that Borrower may prepay              principal on a Business Day other than an Installment Due Date only because              Lender will deem any prepayment received by Lender on any day other than an              Installment Due Date to have been received on the Installment Due Date              immediately following such prepayment and Borrower must pay to Lender all              interest and any required prepayment premium that would have been due if the              prepayment had actually been made on the Installment Due Date immediately              following such prepayment.         (e)   Unless otherwise expressly provided in the Loan Documents, Borrower may not              voluntarily prepay less than all of the unpaid principal balance of this Note. In              order to voluntarily prepay all or any part of the principal of this Note, Borrower              must also pay to Lender, together with the amount of principal being prepaid,              (i) all accrued and unpaid interest due under this Note, plus (ii) all other sums due              to Lender at the time of such prepayment, plus (iii) if the prepayment occurs              during the Prepayment Premium Period, any prepayment premium calculated              pursuant to Section lO(f).         (f)   Except as provided in Section lO(g), a prepayment premium will be due and              payable by Borrower in connection with any prepayment of principal under this              Note during the Prepayment Premium Period. The prepayment premium will be              computed as follows:    Multifamily Note  Fixed Rate Defeasance                                                    Page 13  

 

            (i)   For any prepayment made during the Yield Maintenance Period, the                    prepayment premium will be whichever is the greater of                    Sections lO(f)(i)(A) and (B) below:                     (A)    1.0% of the amount of principal being prepaid; or                     (B)   the product obtained by multiplying:                           ( 1)  the amount of principal being prepaid or accelerated,                                by                          (2)   the excess (if any) of the Monthly Note Rate over the                                Assumed Reinvestment Rate,                                by                          (3)   the Present Value Factor.                     For purposes of Section lO(f)(i)(B), the following definitions will apply:                     Monthly Note Rate: 1/12 of the Fixed Interest Rate, expressed as a                    decimal calculated to 5 digits.                     Prepayment Date: in the case of a voluntary prepayment, the date on                    which the prepayment is made; in the case of the application by Lender of                    collateral or security to a portion of the principal balance, the date of such                    application.                     Assumed Reinvestment Rate: 1/12 of the yield rate expressed as a                    decimal to 2 digits, as of the close of the trading session which is 5                    Business Days before the Prepayment Date, found among the Daily                    Treasury Yield Curve Rates, commonly known as Constant Maturity                    Treasury ("CMT") rates, with a maturity equal to the remaining Yield                    Maintenance Period, as reported on the U.S. Department of the Treasury                    website.                     If no published CMT maturity matches the remaining Yield Maintenance                    Period, Lender will interpolate as a decimal to 2 digits the yield rate                    between (a) the CMT with a maturity closest to, but shorter than, the                    remaining Yield Maintenance Period, and (b) the CMT with a maturity                    closest to, but longer than, the remaining Yield Maintenance Period, as                    follows:                                       .m:81 ) X (E-C) ] + A                                   [( (D-C)                     A =   yield rate for the CMT with a maturity shorter than the remaining                          Yield Maintenance Period                     ·    Multifamily Note  Fixed Rate Defeasance                                                    Page 14  

 

                  B =   yield rate for the CMT with a maturity longer than the remaining                          Yield Maintenance Period                    C =   number of months to maturity for the CMT maturity shorter than                          the remaining Yield Maintenance Period                    D =   number of months to maturity for the CMT maturity longer than                          the remaining Yield Maintenance Period                    E =   number of months remaining in the Yield Maintenance Period                     In the event the U.S. Department of the Treasury ceases publication of the                    CMT rates, the Assumed Reinvestment Rate will equal the yield rate on                    the first U.S. Treasury security which is not callable or indexed to inflation                    and which matures after the expiration of the Yield Maintenance Period.                     The Assumed Reinvestment Rate may be a positive number, a negative                    number or zero.                     If the Assumed Reinvestment Rate is a positive number or a negative                    number, Lender will calculate the prepayment premium using such                    positive number or negative number, as appropriate, as the Assumed                    Reinvestment Rate in 10(f)(i)(B)(2) and in the calculation of the Present                    Value Factor.                     If the Assumed Reinvestment Rate is zero, Lender will calculate the                    prepayment premium twice as set forth in (I) and (II) below and will                    average the results to determine the actual prepayment premium.                     (I)   Lender will calculate the prepayment premium using an Assumed                          Reinvestment Rate of one basis point (+0.01 %) in                          Section 10(f)(i)(B)(2) and in the calculation of the Present Value                          Factor.                     (II)  Lender will calculate the prepayment premium using an Assumed                          Reinvestment Rate of negative one basis point (-0.01 %)  in                          Section 10(f)(i)(B)(2) and in the calculation of the Present Value                          Factor.                     Present Value Factor: the factor that discounts to present value the costs                    resulting to Lender from the difference in interest rates during the months                    remaining in the Yield Maintenance Period, using the Assumed                    Reinvestment Rate as the discount rate, with monthly compounding,                    expressed numerically as follows:    Multifamily Note  Fixed Rate Defeasance                                                    Page 15  

 

                  n = the number of months remaining in Yield Maintenance Period;                    provided, however, if a prepayment occurs on an Installment Due Date,                    then the number of months remaining in the Yield Maintenance Period                    will be calculated beginning with the month in which such prepayment                    occurs and if such prepayment occurs on a Business Day other than an                    Installment Due Date, then the number of months remaining in the Yield                    Maintenance Period will be calculated beginning with the month                    immediately following the date of such prepayment.                     ARR = Assumed Reinvestment Rate               (ii)  For any prepayment made after the expiration of the Yield Maintenance                    Period but during the remainder of the Prepayment Premium Period, the                    prepayment premium will be 1.0% of the amount of principal being                    prepaid.         (g)   Notwithstanding any other provision of this Section 10, no prepayment premium              will be payable with respect to any of the following:               (i)   Any prepayment made during the Window Period.               (ii)  Any prepayment occurring as a result of the application of any Insurance                    proceeds or Condemnation award.               (iii) Any prepayment required under the terms of the Loan Agreement in                    connection with a Condemnation proceeding.               (iv)  Reserved.         (h)   Unless Lender agrees otherwise in writing, a permitted or required prepayment of              less than the unpaid principal balance of this Note will not extend or postpone the              due date of any subsequent monthly installments or change the amount of such              installments.         (i)   Borrower recognizes that any prepayment of any of the unpaid principal balance              of this Note, whether voluntary or involuntary or resulting from an Event of              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 in this Note represents a reasonable              estimate of the damages Lender will incur because of a prepayment. Borrower              further acknowledges that the prepayment premium provisions of this Note are a   Multifamily Note  Fixed Rate Defeasance                                                    Page 16  

 

            material part of the consideration for the Loan, and 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.         U)    Reserved.         (k)   Reserved.         (1)   Reserved.   11.   Voluntary and Involuntary Prepayments During the Lockout Period and During        the Defeasance Period (Section Applies if Loan is Assigned to REMIC Trust Prior to        the Cut-off Date).         (a)   This Section 11 will apply in the event this Note is assigned to a REMIC trust              prior to the Cut-off Date. This Section 11 will be of no effect if this Note is              assigned to a REMIC trust on or after the Cut-off Date or if this Note is not              assigned to a REMIC trust.         (b)   Any receipt by Lender of principal due under this Note prior to the Maturity Date,              other than principal required to be paid in monthly installments pursuant to              Section 3, constitutes a prepayment of principal under this Note. Without limiting              the foregoing, any application by Lender, prior to the Maturity Date, of any              proceeds of collateral or other security to the repayment of any portion of the              unpaid principal balance of this Note constitutes a prepayment under this Note.         (c)   Borrower may not voluntarily prepay any portion of the principal balance of this              Note during the Lockout Period or during the Defeasance Period; provided,              however, any prepayment occurring as a result of the application of any Insurance              proceeds or Condemnation award under the Loan Agreement will be permitted              during the Lockout Period and during the Defeasance Period. If any portion of the              principal balance of this Note is prepaid during the Lockout Period or during the              Defeasance Period by reason of the application by Lender of any proceeds of              collateral or otqer security to any portion of the unpaid principal balance of this              Note or following a determination that the prohibition on voluntary prepayments              during the Lockout Period or during the Defeasance Period is in contravention of              applicable law, then Borrower must also pay to Lender upon demand by Lender, a              prepayment premium equal to 5.0% of the amount of principal being prepaid.         (d)   Notwithstanding any other provision of this Section 11, no prepayment premium              will be payable with respect to any of the following:               (i)   Any prepayment made during the Window Period.               (ii)  Any prepayment occurring as a result of the application of any Insurance                    proceeds or Condemnation award under the Loan Agreement.   Multifamily Note  Fixed Rate Defeasance                                                    Page 17  

 

            (iii) Any prepayment required under the terms of the Loan Agreement in                    connection with a Condemnation proceeding.               (iv)  Reserved.         (e)   After the expiration of the Lockout Period and the Defeasance Period, Borrower              may voluntarily prepay all of the unpaid principal balance of this Note on an              Installment Due Date so long as Borrower designates the date for such              prepayment in a Notice from Borrower to Lender given at least 30 days prior to              the date of such prepayment. If an Installment Due Date (as defined in              Section l(a)) falls on a day which is not a Business Day, then with respect to              payments made under this Section 11 only, the term "Installment Due Date" will              mean the Business Day immediately preceding the scheduled Installment Due              Date.         (f)   Notwithstanding Section 1 l(e) above, following the end of the Lockout Period              and the Defeasance Period, Borrower may voluntarily prepay all of the unpaid              principal balance of this Note on a Business Day other than an Installment Due              Date if Borrower provides Lender with the Notice set forth in Section 1 l(e) and              meets the other requirements set forth in this Section 1 l(f). Borrower              acknowledges that Lender has agreed that Borrower may prepay principal on a              Business Day other than an Installment Due Date only because Lender will deem              any prepayment received by Lender on any day other than an Installment Due              Date to have been received on the Installment Due Date immediately following              such prepayment and Borrower must pay to Lender all interest that would have              been due if the prepayment had actually been made on the Installment Due Date              immediately following such prepayment.         (g)   Unless otherwise expressly provided in the Loan Documents, Borrower may not              voluntarily prepay less than all of the unpaid principal balance of this Note. In              order to voluntarily prepay all or any part of the principal of this Note, Borrower              must also pay to Lender, together with the amount of principal being prepaid,              (i) all accrued and unpaid interest due under this Note, plus (ii) all other sums due              to Lender at the time of such prepayment.         (h)   Unless Lender agrees otherwise in writing, a permitted or required prepayment of              less than the unpaid principal balance of this Note will not extend or postpone the              due date of any subsequent monthly installments or change the amount of such              installments.         (i)   Borrower recognizes that any prepayment of any of the unpaid principal balance              of this Note, whether voluntary or involuntary or resulting from an Event of              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   Multifamily Note  Fixed Rate Defeasance                                                    Page 18  

 

            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 in Section l l(c) of this Note              represents a reasonable estimate of the damages Lender will incur because of a              prepayment. Borrower further acknowledges that the lockout and prepayment              premium provisions of this Note are a material part of the consideration for the              Loan, and 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.         (j)   If, after the expiration of the Lockout Period, Borrower defeases the Loan as              described in Section 11.12 of the Loan Agreement during the Defeasance Period,              Borrower will not have the right to voluntarily prepay any of the principal of this              Note at any time.   12.   Defeasance (Section Applies if Loan is Assigned to REMIC Trust Prior to the Cut­       off Date).         (a)   This Section 12 will apply in the event this Note is assigned to a REMIC trust              prior to the Cut-off Date. This Section 12 will be of no effect if this Note is              assigned to a REMIC trust on or after the Cut-off Date or if this Note is not              assigned to a REMIC trust.         (b)   Section 5 of this Note is amended by adding a new paragraph at the end of the              Section as follows:               If Borrower obtains a release of the Mortgaged Property from the lien of the              Security Instrument pursuant to Section 11.12 of the Loan Agreement, the              Indebtedness will be secured by the Pledge Agreement and reference will be made              to the Pledge Agreement for other rights of Lender as to collateral for the              Indebtedness.         (c)   Section 9 of this Note is amended by adding a new paragraph at the end thereof as              follows:               If Borrower obtains a release of the Mortgaged Property from the lien of the              Security Instrument pursuant to Section 11.12 of the Loan Agreement, Borrower              will have no personal liability under this Note or the Pledge Agreement for the              repayment of the Indebtedness or for the performance of any other obligations of              Borrower under this Note or the Pledge Agreement (other than any liability under              Section 6.12 or Section 10.02 of the Loan Agreement for events that occur prior              to the Defeasance Closing Date, whether discovered before or after the              Defeasance Closing Date), and Lender's only recourse for the satisfaction of the              Indebtedness and the performance of such obligations will be Lender's exercise of              its rights and remedies with respect to the collateral held by Lender under the              Pledge Agreement as security for the Indebtedness.   Multifamily Note  Fixed Rate Defeasance                                                    Page 19  

 

      (d)   Section 2l(a) of this Note is amended by adding a new paragraph at the end of              that subsection as follows:               If Borrower obtains a release of the Mortgaged Property from the lien of the              Security Instrument pursuant to Section 11.12 of the Loan Agreement, all Notices,              demands and other communications required or permitted to be given pursuant to              this Note will be given in accordance with the Pledge Agreement.   13.   Costs and Expenses. To the fullest extent allowed by applicable law, Borrower must pay        all expenses and costs, including Attorneys' Fees and Costs 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. Borrower acknowledges        and agrees that, in connection with each request by Borrower under this Note or any Loan        Document, Borrower must pay all reasonable Attorneys' Fees and Costs and expenses        incurred by Lender, including any fees charged by the Rating Agencies (if applicable),        regardless of whether the matter is approved, denied or withdrawn.   14.   Forbearance. Any forbearance by Lender in exercising any right or remedy under this        Note, the Loan Agreement, or any other Loan Document, or otherwise afforded by        applicable law, will 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, will 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 will not constitute an election        by Lender of remedies so as to preclude the exercise of any other right or remedy        available to Lender.   15.   Waivers. Borrower and all endorsers and Guarantors of this Note and all other third party        obligors waive 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.   16.   Loan Charges. Neither this Note nor any of the other Loan Documents will 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. 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   Multifamily Note  Fixed Rate Defeasance                                                    Page 20  

 

      permitted amounts will 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, will be deemed to be allocated and spread        ratably over the stated term of this Note. Unless otherwise required by applicable law,        such allocation and spreading will be effected in such a manner that the rate of interest so        computed is uniform throughout the stated term of this Note.   17.   Commercial Purpose. Borrower represents that Borrower is incurring the Indebtedness        solely for the purpose of carrying on a business or commercial enterprise, and not for        personal, family, household, or agricultural purposes.   18.   Counting of Days. Any reference in this Note to a period of "days" means calendar days,        not Business Days, except where otherwise specifically provided.   19.   Governing Law. This Note will be governed by the law of the Property Jurisdiction.   20.   Captions. The captions of the Sections of this Note are for convenience only and will be        disregarded in construing this Note.   21.   Notices; Written Modifications.         (a)   All Notices, demands, and other communications required or permitted to be              given pursuant to this Note will be given in accordance with Section 11.03 of the              Loan Agreement.         (b)   Any modification or amendment to this Note will be ineffective unless in writing              and signed by the party sought to be charged with such modification or              amendment; provided, however, in the event of a Transfer under the terms of the              Loan Agreement that requires Lender's consent, any or some or all of the              Modifications to Multifamily Note set forth in Exhibit A to this Note may be              modified or rendered void by Lender at Lender's option, by Notice to Borrower              and the transferee, as a condition of Lender's consent.   22.   Consent to Jurisdiction and Venue. Borrower agrees that any controversy arising under        or in relation to this Note may be litigated in the Property Jurisdiction. The state and        federal courts and authorities with jurisdiction in the Property Jurisdiction will have        jurisdiction over all controversies that will arise under or in relation to this Note.        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. However, nothing in this Note is intended to        limit any right that Lender may have to bring any suit, action, or proceeding relating to        matters arising under this Note in any court of any other jurisdiction.    Multifamily Note  Fixed Rate Defeasance                                                    Page21  

 

23.   WAIVER OF TRIAL BY JURY. BORROWER 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 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.   24.   State-Specific Provisions. State-specific provisions, if any, are included on Schedule 1        to this Note.   25.   Attached Riders. The following Riders are attached to this Note:         Rider to Multifamily Note - Recycled Borrower and/or Recycled SPE Equity Owner   26.   Attached Schedules and Exhibits. The following Schedules and Exhibits, if marked        with an "X" in the space provided, are attached to this Note:         IXI   Schedule 1  State Specific Provisions for Multifamily Note         IXI   Exhibit A   Modifications to Multifamily Note   27.   Reserved.   28.   Reserved.   29.   Reserved.   30.   Reserved.   31.   Reserved.    Multifamily Note  Fixed Rate Defeasance                                                    Page22  

 

IN WITNESS WHEREOF, and in    consideration of the Lender's agreement to lend Borrower the  principal amount set forth above, 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 will be deemed to be signed and delivered as a sealed  instrument.                                   BORROWER:                                   SIR TAPESTRY PARK, LLC                                  a Delaware limited liability company                                   By:    Steadfast Income Advisor, LLC                                         a Delaware limited liability company                                         Manager                                          By:    Multifamily Note  Fixed Rate Defeasance                                                        Page S-1  

 

                        RIDER TO MULTIFAMILY NOTE          RECYCLED BORROWER AND/OR RECYCLED SPE EQUITY OWNER                                  (Revised 3-1-2014)   The following changes are made to the Note which precedes this Rider:   A.    Section 9(c)(ix) is restated as follows:         (ix)  Any of the Underwriting Representations or Separateness Representations set              forth in Sections 5.40(a) and (b) of the Loan Agreement are false or misleading in              any material respect.    Rider to Multifamily Note  Recycled Borrower and/or Recycled SPE Equity Owner                   Pagel  

 

                              SCHEDULE 1             STATE SPECIFIC PROVISIONS FOR MULTIFAMILY NOTE    Property Jurisdiction State-Specific Provision(s)    Alabama            None    Multifamily Note  Fixed Rate. Defeasance                                      Page Sch. 1-1  

 

                                  EXHIBIT A                       MODIFICATIONS TO MULTIFAMILY NOTE   The following modifications are made to the text of the Note that precedes this Exhibit.                                        NONE    Multifamily Note  Fixed Rate Defeasance                                                   PageA-1

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