Document:

atax-ex102_7.htm

Exhibit 10.2

 

 

 

SUPPLEMENTAL AGREEMENT

by and among

ATAX TEBS HOLDINGS, LLC, as owner,

STERN BROTHERS & CO, as underwriter,

MIZUHO CAPITAL MARKETS LLC, as initial noteholder,

and

U.S. BANK NATIONAL ASSOCIATION, as trustee

Dated as of September 24, 2020

Relating to:

$103,500,000
ATAX TEBS Holdings, LLC

 Taxable Secured Notes
2020 Series A

 

 

 

 

 

 

 

SUPPLEMENTAL AGREEMENT

THIS SUPPLEMENTAL AGREEMENT (this “Supplemental Agreement”), dated as of September 24, 2020, is by and among ATAX TEBS HOLDINGS, LLC, a limited liability company organized and existing under the laws of the State of Delaware (the “Owner”), STERN BROTHERS & CO., a corporation duly authorized and validly existing under the laws of the State of Missouri (“Stern Brothers”), and any owner of any of the Notes (as defined herein) which is a permitted transferee of Stern Brothers, including MIZUHO CAPITAL MARKETS LLC (“Mizuho”) as initial purchaser of the Notes from Stern Brothers on the date hereof (collectively, the “Noteholder”) and U.S. BANK NATIONAL ASSOCIATION, as Trustee (together with its successors hereunder, the “Trustee”).

WITNESSETH:

WHEREAS, pursuant to that certain Indenture of Trust, dated as of September 24, 2020 (as amended, restated and/or supplemented from time to time, the “Indenture”), between the Owner and the Trustee, the Owner is issuing $103,500,000 in aggregate principal amount of its Taxable Secured Notes 2020 Series A (the “Notes”);

WHEREAS, Stern Brothers has agreed to purchase the Notes and upon such purchase immediately sell the Notes to Mizuho upon satisfaction of certain conditions, including the execution and delivery of this Supplemental Agreement;

WHEREAS, the Owner, Stern Brothers and Mizuho desire to set forth their agreement as to the terms of their lender/borrower relationship represented by Stern Brothers’ initial purchase and Mizuho’s ownership of the Notes, as provided in this Supplemental Agreement;

WHEREAS, the Trustee, at the direction of Mizuho, which is hereby given, desires to evidence its consent to this Supplemental Agreement by executing and delivering this Supplemental Agreement;

WHEREAS, all capitalized terms used herein and not defined herein shall have the meanings ascribed thereto in Exhibit A hereto or in the Indenture, as applicable.

NOW THEREFORE, for and in consideration of the foregoing premises, and the mutual covenants and agreements hereinafter set forth, the Owner, Stern Brothers, Mizuho and the Trustee hereby agree as follows:

Section 1.Representations, Warranties and Covenants of Owner.  To induce Stern Brothers to purchase the Notes and to enter into this Supplemental Agreement and to induce Mizuho to purchase the Notes from Stern Brothers and to enter into this Supplemental Agreement, and for other good and valuable consideration, the Owner makes the following representations and warranties:

(a)Organization and Power.  The Owner is a limited liability company,  duly organized, validly existing and in good standing under the laws of the State of Delaware, is in compliance with all legal requirements applicable to doing business in the 

 

 

jurisdictions where its business requires it to be in compliance, and is under no legal disability.  The Owner is not a “foreign person” within the meaning of §1445(f)(3) of the Code.

(b)Due Authorization and Execution.  The Owner has lawful power and authority to issue the Notes, to enter into this Supplemental Agreement and each of the other Note Documents to which it is a party and to carry out its obligations hereunder and thereunder, and has duly authorized the execution, delivery and performance of this Supplemental Agreement and each of the other Note Documents to which it is a party.

(c)Execution and Delivery.  The issuance of the Notes, and the Owner’s execution and delivery of this Supplemental Agreement and the other Note Documents to which it is a party and its performance of or compliance with the terms and conditions thereof will not, in any material respect, conflict with or result in a breach of any of the terms, conditions or provisions of, or constitute a default under, any agreement to which the Owner is a party or by which it or any of its property is bound, nor to its knowledge conflict with, or result in a breach of, any of the terms, conditions or provisions of or constitute a default under, the Operating Agreement, or under any order, rule or regulation applicable to the Owner or any of its property of any court or governmental body, nor result in the creation or imposition of any Lien, charge or encumbrance of any nature whatsoever, other than Permitted Liens, upon any of the property or assets of the Owner under the terms of any instrument or agreement to which the Owner is a party.

(d)Consents Obtained.  No consent, authorization or approval, except such consents, authorizations or approvals as have been obtained prior to the issuance of the Notes or execution and delivery of this Supplemental Agreement and the other Note Documents, from any pertinent governmental, public or quasi-public body or authority, is necessary for the issuance of the Notes or the due execution, delivery and performance by the Owner of this Supplemental Agreement and the other Note Documents; provided, however, that no representation is made with respect to any state securities or “blue sky” laws.

(e)Valid and Binding Obligations.  Assuming the due execution and delivery by the other parties thereto, this Supplemental Agreement and the other Note Documents to which it is a party constitute the legal, valid and binding obligations of the Owner, enforceable against the Owner in accordance with their respective terms, subject to applicable bankruptcy, insolvency or similar laws generally affecting the enforcement of creditors’ rights or by general principles of equity, and except as enforceability may be limited by applicable securities laws or public policy.

(f)Voluntary Acts.  The Owner is entering into this Supplemental Agreement and the other Note Documents to which it is a party freely and voluntarily with the advice of legal counsel of its own choosing, and has freely and voluntarily agreed to the terms, provisions and undertakings set forth in this Supplemental Agreement and such other Note Documents.

			
	
 
	
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(g)Outstanding Principal Amount of Notes.  As of the date hereof, the Notes are being issued in the principal amount of $103,500,000.  The Owner has no defenses, counterclaims or offsets with respect to such principal amount.

(h)No Defaults.  The Owner is in compliance in all material respects with all the terms and conditions of the Notes and the other Note Documents, and no default or event which, with the giving of notice or the lapse of time or both, would become a default or event of default has occurred and is continuing under the Note Documents.

(i)No Actions Pending or Threatened.  There are no actions, suits or proceedings pending or, to the knowledge of the Owner, threatened against the Owner, at law, in equity, in arbitration or before or by any court, board, commission, agency or instrumentality of any federal, state or local government or of any agency or subdivision thereof, or before any arbitrator or panel of arbitrators, which involve the existing Class B Certificate, the Collateral, the Notes or the transactions contemplated by this Supplemental Agreement or the other Note Documents.

(i)Use of Note Proceeds.  The proceeds from the sale of the Notes will be used and applied in accordance with the terms and conditions of the Indenture.

(k)Authority of the Sole Member.  America First Multifamily Investors, L.P. is the sole member (the “Sole Member”) of the Owner.  The Sole Member has the power and authority to cause the Owner to execute and deliver this Supplemental Agreement and the other Note Documents to which the Owner is a party, and to perform such other matters and things provided to be performed by it in this Supplemental Agreement and in such other Note Documents.

(1)ERISA.  Neither the Owner nor any ERISA Affiliate maintains a Plan nor contributes to or has ever contributed to a Multiemployer Plan.

Section 2.Representations and Warranties of Mizuho and Stern Brothers.  

(a)To induce the Owner to enter into this Supplemental Agreement, Mizuho represents that:

(i)Mizuho is a limited liability company duly organized and validly existing under the laws of the State of Delaware.  

(ii)Mizuho is duly authorized to execute and deliver this Supplemental Agreement.

(iii)Mizuho has freely and voluntarily agreed to the terms, provisions and undertakings set forth in this Supplemental Agreement.

(iv)This Supplemental Agreement and the other documents executed by Mizuho in connection with this Supplemental Agreement, constitute the legal, valid and binding obligations of Mizuho enforceable in accordance with their respective terms, except as such enforceability and the availability of certain 

			
	
 
	
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rights and remedies provided for therein may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights or by general principles of equity limiting the availability of equitable remedies, and except as enforceability may be limited by applicable securities laws or public policy.

(b)To induce the Owner to enter into this Supplemental Agreement, Stern Brothers represents that:

(i)Stern Brothers is a corporation duly organized and validly existing under the laws of the State of Missouri.

(ii)Stern Brothers is duly authorized to execute and deliver this Supplemental Agreement.

(iii)Stern Brothers has freely and voluntarily agreed to the terms, provisions and undertakings set forth in this Supplemental Agreement.

(iv)This Supplemental Agreement and the other documents executed by Stern Brothers in connection with this Supplemental Agreement constitute the legal, valid and binding obligations of Stern Brothers enforceable in accordance with their respective terms, except as such enforceability and the availability of certain rights and remedies provided for therein may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights or by general principles of equity limiting the availability of equitable remedies, and except as enforceability may be limited by applicable securities laws or public policy.

(v)Stern Brothers (a) is a dealer registered pursuant to section 15 of the Securities Exchange Act of 1934 and is a “qualified institutional buyer” under Rule 144A(a)(iii) for purposes of the transactions contemplated hereby, (b) has agreed to serve the limited role of dealer intermediary and riskless principal by purchasing the Notes for the purpose of immediate resale to Mizuho under Rule 144A, and (c) is making no recommendation to Mizuho concerning an investment in the Notes.

Section 3.Covenants of Owner.

(a)Administrative Fee.  The Owner agrees to pay to Stern Brothers on or prior to the Closing Date, the sum of $20,000 in immediately available funds.

(b)Indemnification.  The Owner shall indemnify, defend and hold Stern Brothers, Mizuho, the Noteholder Representative, and their respective Affiliates and any of their respective shareholders, partners, members, managers, directors, officers, employees or agents (collectively, “Mizuho Parties”), and any other Noteholder, its Affiliates and any of their respective shareholders, partners, members, Sole Members, directors, officers, employees or agents (collectively, “Noteholder Parties”), harmless from and against any and all losses, liabilities, claims, damages, expenses, obligations, 

			
	
 
	
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penalties, actions, judgments, suits, costs or disbursements of any kind or nature whatsoever, including the reasonable fees and actual expenses of their counsel (collectively, “Losses”), in connection with (i) any investigative, administrative, mediation, arbitration, or judicial proceeding by or against the Owner or the Collateral, whether or not any Mizuho Party or Noteholder Party is designated a party thereto, commenced or threatened at any time and in any way related to the Collateral or the execution, delivery or performance of any Note Document, other than internal audits or investigations; (ii) any proceeding instituted by any Person claiming a lien on or interest in the Collateral (other than Permitted Liens); and (iii) any brokerage commissions or finder’s fees claimed by any broker or other party (other than through Stern Brothers, Mizuho, the Noteholder or their Affiliates) in connection with the Notes, the Collateral or any of the transactions contemplated in this Supplemental Agreement or in the Note Documents, including, but not limited to, those arising from the joint, concurrent or comparative negligence of the Owner, the Trustee, Stern Brothers, any Mizuho Party or any Noteholder Party, except to the extent any of the foregoing is caused by the gross negligence or willful misconduct of Stern Brothers, any Mizuho Party or Noteholder Party (whether sole, joint, concurrent, comparative or otherwise), in which event the Owner shall not be liable under this Section to Stern Brothers, such Mizuho Party or such Noteholder Party to the extent such Losses were caused by such Person’s (or its agent’s) gross negligence or willful misconduct.

(c)Costs of Defense, Etc.  If any action or proceeding is commenced with respect to the Collateral or the transactions contemplated by the Note Documents to which action or proceeding Stern Brothers, the Noteholder Representative, Mizuho, any other Noteholder or any of their respective Affiliates, as applicable, is made a party or in which it becomes necessary to defend or uphold the Security Interest or the Obligations, the Owner shall, on demand, reimburse Stern Brothers, the Noteholder Representative, Mizuho and/or such other Noteholder or Affiliate, as applicable, for all reasonable out-of-pocket expenses including, without limitation, reasonable attorneys’ fees and disbursements and appellate attorneys’ fees and disbursements, incurred by Stern Brothers, the Noteholder Representative, Mizuho and/or such other Noteholder or Affiliate, as applicable, in connection with such action or proceeding, together with interest thereon at the Default Rate from the date that is ten (10) days after such demand until the same are paid to Stern Brothers, the Noteholder Representative, Mizuho and/or such other Noteholder or Affiliate, as applicable.

(d)Costs of Administration and Enforcement.  The Owner agrees to pay all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees and disbursements and appellate attorneys’ fees and disbursements) of Stern Brothers, Mizuho and the Noteholder Representative incidental to the negotiation, execution and delivery of this Supplemental Agreement and the other Note Documents or incurred in connection with any Event of Default or Potential Default, any requested waiver or consent hereunder or amendment of any of the Note Documents or the enforcement of any provision hereof, or the enforcement, compromise, workout, restructuring or settlement of this Supplemental Agreement, any other Note Document or the Obligations, or for defending or asserting the rights and claims of Stern Brothers, the Noteholder Representative, Mizuho and any other Noteholder, as applicable, in respect 

			
	
 
	
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thereof, by litigation or otherwise.  All rights and remedies of Stern Brothers, the Noteholder Representative, Mizuho and any other Noteholder, as applicable, shall be cumulative and may be exercised singularly or concurrently.  Notwithstanding anything herein contained to the contrary, the Owner, to the extent allowable by applicable law: (i) waives any right (A) to at any time insist upon, or plead, or in any manner whatsoever claim or take any benefit or advantage of any stay or extension or moratorium law, any exemption from execution or sale of the Collateral or any portion thereof, whenever enacted, nor at any time hereafter in force, which may affect the covenants and terms of performance of this Supplemental Agreement or any of the other Note Documents; provided such language shall not be deemed to limit any force majeure rights the Owner may have with respect thereto, (B) to claim, take or insist upon any benefit or advantage of any law now or hereafter in force providing for the valuation of the Collateral, or any part thereof, prior to any sale or sales thereof which may be made pursuant to any provision herein, or pursuant to the decree, judgment or order of any court of competent jurisdiction, or (C) after any such sale or sales, to claim or exercise any right under any statute heretofore or hereafter enacted to redeem the property so sold or any part thereof, and (ii) hereby expressly waives all benefit or advantage of any such law or laws which may, and covenants not to, hinder, delay or impede the execution of any power herein granted or delegated to the Noteholder Representative or any Noteholder, and agree to suffer and permit the execution of every power as though no such law or laws had been made or enacted.  The Owner, for itself and all who may claim under it, waives, to the extent allowed by applicable law, all right to have the Collateral marshaled upon any foreclosure thereof.

(e)Due on Sale and Encumbrance; Transfers of Interests.  Without the prior written consent of Mizuho:

(i)except as otherwise permitted by the release provisions of this Supplemental Agreement, the Owner shall not (A) directly or indirectly sell, transfer, convey, mortgage, pledge or assign any interest in the Collateral or any part thereof, or direct or permit any such action; or (B) except for Permitted Liens and  liens, security interests and other rights arising in connection with the Note Documents, further encumber, grant a lien on or grant any other interest in the Collateral or any part thereof, or direct or permit any such action; and

(ii)there shall be no change in the Sole Member or members of the Owner nor any amendment to the Operating Agreement or governing documents among the same.

(f)Execution of Additional Documents; Further Assurances.  The Owner will execute and deliver such additional instruments and perform such additional acts as may be necessary, in the reasonable opinion of the Noteholder Representative, to carry out the intent hereof and of the other Note Documents, or to perfect or give further assurances of any of the rights granted or provided for herein or in the other Note Documents. The Owner shall promptly (i) cure any defects in the execution and delivery of the Note Documents and (ii) execute and deliver, or cause to be executed and delivered, all such other documents, agreements and instruments as the Noteholder 

			
	
 
	
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Representative may reasonably request to further evidence and more fully describe the collateral for the Notes; to correct any factual misstatements and/or omissions in the Note Documents; to perfect, protect or preserve any Liens created under any of the Note Documents; or to cause to be made any recordings, file any notices or obtain any consents as may be necessary or appropriate in connection therewith.

(g)No Plans.  Neither the Owner nor any ERISA Affiliate shall at any time maintain a Plan or contribute to a Multiemployer Plan.  Consequently, no ERISA Event has occurred or will occur while the Notes or any other Obligation remains unpaid or unsatisfied. 

(h)Legal Existence; Etc.  The Owner shall preserve and keep in full force and effect its entity status, franchises, rights and privileges under the laws of the State of its formation, and all qualifications, licenses and permits applicable to the ownership of the Collateral.  The Owner shall not wind up, liquidate, dissolve, reorganize, merge or consolidate with or into, or convey, sell, assign, transfer, lease or otherwise dispose of all or substantially all of its assets.  The Owner shall provide prompt notice to the Trustee and the Noteholder Representative of any change in its name or jurisdiction of formation.  The Owner shall maintain its separateness as an entity, including maintaining separate books, records and accounts and observing corporate and partnership formalities independent of any other entity, shall pay its obligations with its own funds and shall not commingle funds or assets with those of any other entity.

(i)Limitation on Other Debt.  The Owner shall not, without the prior written consent of the Noteholder Representative, create, incur or assume any Debt whether secured, unsecured, recourse or non-recourse, prior, parity or subordinate, fixed or contingent, other than (i) its obligations contemplated by the Note Documents and (ii) other Debt, in writing, approved in advance by the Noteholder Representative in its sole discretion.

(j)Notice of Certain Events.  The Owner shall promptly notify the Noteholder Representative in writing of (i) any Potential Default or Event of Default, together with a detailed statement of the steps being taken to cure such Potential Default or Event of Default; (ii) any notice of default received by the Owner under other obligations relating to the Collateral or the Class B Certificates, or otherwise material to the Owner’s business; and (iii) any threatened or pending legal, judicial or regulatory proceedings which could have a material adverse effect on the Owner or the Collateral.

(k)Right of Access to Records.  The Noteholder Representative and its duly authorized agents, attorneys, accountants and representatives shall also be permitted, at all reasonable times and upon reasonable notice, to examine the books and records of the Owner with respect to the Collateral.

(l)Reporting Duties.  To the extent such items are not otherwise provided to the Noteholder Representative pursuant to the terms of the Note Documents, the Owner hereby agrees to provide or cause to be provided, to Noteholder Representative (i) copies of any and all notices, reports, demands, declarations or other similar items 

			
	
 
	
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received by the Owner or its affiliates related to or provided under the terms of the Class B Certificates or the TEBS Documents, promptly following receipt thereof, and (ii) within ten (10) Business Days (or such longer period as may be necessary to compile and deliver such information) after demand, any other information reasonably requested by Mizuho or the Noteholder Representative.

(m)Compliance with Laws; Use.  The Owner has to the best of its knowledge, and at all times shall have, all material permits, licenses, exemptions and approvals necessary for the transaction of its business.  

(n)Note Documents.  The Owner shall not amend, modify, terminate or grant any waiver under, or consent to, permit or suffer to occur any action or omission which results in, or is equivalent to, an amendment, modification or grant of a waiver under any of the Note Documents to which the Owner is a party, without the prior written consent of the Noteholder Representative.

(o)Post-Closing Covenants.  Following the occurrence and during the continuance of any Event of Default, upon the written request of the Noteholder Representative, the Owner agrees to use commercially reasonable efforts to seek and obtain any consents required from Freddie Mac to effectuate the transfer of ownership of the Collateral and/or the Class B Certificates to the Trustee for the benefit of the Holders of the Notes, or to the Holders of the Notes, as directed by the Noteholder Representative.

Section 4.Redemption of Notes.  The Notes shall be subject to redemption as set forth in Article IV of the Indenture.

Section 5.Events of Default.

(a)Each of the following shall constitute an “Event of Default” under this Supplemental Agreement and each of the other Note Documents

(i)The sale, transfer, conveyance, pledge, mortgage, encumbrance or assignment of any part or all of the Collateral other than a Permitted Lien; or

(ii)The occurrence of an “event of default” or “Event of Default” as defined in any of the other Note Documents following any applicable grace period contained in such documents; or

(iii)The Owner’s failure to perform or observe any of the agreements and covenants contained in this Supplemental Agreement or in any of the other Note Documents to which the Owner is a party (other than any payment obligations under any of the Note Documents or transfers and encumbrances referenced under Section 5(a)(i)), and the continuance of such failure for thirty (30) days after notice by the Noteholder Representative or the Trustee to the Owner; however, subject to any shorter period for curing any failure by the Owner as specified in any of the other Note Documents, the Owner shall have an additional sixty (60) days to cure such failure if (A) such failure does not involve 

			
	
 
	
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the failure to make payments on a monetary obligation; (B) such failure cannot reasonably be cured within thirty (30) days; (C) the Owner is diligently undertaking to cure such default; and (D) the Owner has provided the Trustee and the Noteholder Representative with security reasonably satisfactory to the Trustee and the Noteholder Representative against any interruption of payment or impairment of collateral as a result of such continuing failure; or

(iv)Any representation or warranty made by the Owner in this Supplemental Agreement or any other Note Documents to which the Owner is a party proves to be untrue in any material respect when made or deemed made.

Notwithstanding anything to the contrary contained herein, (w) the notice and grace periods described in Section 5(a)(iii) hereof shall not apply to any of the Events of Default described in the other subsections of Section 5(a), (x) in no event shall any of the notice and/or grace periods provided for in this Section or in any of the other Note Documents be considered to be in addition to any other notice or grace period provided herein or therein, and (y) any applicable notice or grace period shall run concurrently with and not in addition to any other notice or grace period to which the Owner shall be entitled either hereunder or under any of the other Note Documents, and (z) in the event there are different notice or grace periods in this Section and any other Note Document for the same occurrence or failure to perform, the shortest such period shall control.

(b)Remedies.  Upon the happening of an Event of Default, the Noteholder Representative shall have the right, in addition to all the remedies conferred upon Mizuho and/or any other Noteholder, as applicable, by law or equity or the terms of any Note Document, to notify the Trustee of such Event of Default in writing and to direct the Trustee in writing to exercise any and all remedies under the Note Documents.

Section 6.Relationship of Parties.  Except as specifically set forth herein, nothing in this Supplemental Agreement shall be construed to alter the existing relationship between the Owner and the Trustee as set forth in the Note Documents.  This Supplemental Agreement is not intended, nor shall it operate or be construed, to create a partnership or joint venture relationship between the parties hereto.

Section 7.Entire Agreement; Modification of Agreement.  This Supplemental Agreement and the other Note Documents constitute the entire understanding of the parties to each such document with respect to the subject matter hereof and thereof.  This Supplemental Agreement may not be modified, altered or amended except by an agreement in writing signed by each party hereto, with the prior written consent of the Noteholder Representative.  THIS SUPPLEMENTAL AGREEMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY ACTUAL OR ALLEGED PRIOR, CONTEMPORANEOUS OR SUBSEQUENT UNDERSTANDINGS OR AGREEMENTS OF THE PARTIES, WRITTEN OR ORAL, EXPRESSED OR IMPLIED, OTHER THAN A WRITING WHICH EXPRESSLY AMENDS OR SUPERSEDES THIS SUPPLEMENTAL AGREEMENT EXECUTED BY THE PARTIES HERETO.  THERE ARE NO UNWRITTEN ORAL UNDERSTANDINGS OR AGREEMENTS AMONG THE PARTIES.

			
	
 
	
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Section 8.Notices.  All notices and other communications required or contemplated hereunder shall be (a) in writing; (b) deemed to have been given (i) upon personal delivery; (ii) one (1) Business Day (as such term is defined in the Indenture) after such notice is sent by a reputable overnight courier service; (iii) three (3) days after mailing by United States certified or registered mail, return receipt requested; or (c) upon receipt of an electronic mail transmission to be promptly confirmed and followed by United States mail, in each case with (as applicable) postage, courier or delivery charges prepaid and addressed as follows:

 

		
	
The Owner:
	
ATAX TEBS Holdings, LLC

152 West 57th Street 

4th Floor

New York, NY 10019

Attention:  Ken Rogozinski, CIO

Phone: (212) 896-9184

Email: ken.rogozinski@greyco.com

 

and

 

ATAX TEBS Holdings, LLC

Suite 211

14301 FNB Parkway

Omaha, NE 68154

Attention:  Jesse Coury, CFO

Phone: (402) 952-1233

Email: Jesse.Coury@greyco.com

	
With a  copy to (which copy shall not constitute notice to the Issuer):
	
Conal L. Hession

Kutak Rock LLP

1650 Farnam Street

Omaha, NE  68102

Phone: (402) 346-6000

Email: conal.hession@kutakrock.com

	
The Trustee:

 

 

 
	
U.S. Bank National Association
100 Wall Street, STE 600

New York, NY 10005

Attention: James W. Hall

Phone: (551)427-1335

Email: james.hall2@usbank.com

 

			
	
 
	
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If to Mizuho:
	
Mizuho Capital Markets LLC
1271 Avenue of the Americas
New York, New York 10020 
Attention:  Julian Rudin, Esq.

Phone:(646) 949-9692
E-mail: julian.rudin@mizuhogroup.com

	
With a  copy to (which copy shall not constitute notice to the Noteholder Representative):
	
Greenberg Traurig LLP
1717 Arch Street, Suite 400
Philadelphia, Pennsylvania 19103
Attention: Dianne Coady Fisher
Phone:  (215) 988-7802
E-mail: FisherD@gtlaw.com

 

	
If to Stern Brothers: 
	
Stern Brothers & Co.

8000 Maryland Avenue, Suite 800 

St. Louis, MO 63105.

Attention:  Tom Gibson
Telephone  (303) 364-2229
E-mail:  tgibson@sternbrothers.com

 

or to such other address as may be specified by notice given as required herein.  If to any other Noteholder, to the address or addresses provided by such Noteholder to the Trustee and Owner from time to time.

Section 9.Construction of Ambiguities.  Each party hereto and its counsel have reviewed and revised (or requested revisions of) this Supplemental Agreement and have participated in the drafting hereof; accordingly, the normal rule of construction that any ambiguities are to be resolved against the drafting party shall not be applicable in the construction and interpretation of this Supplemental Agreement or any amendments hereof or exhibits hereto.

Section 10.Severability.  If any term or provision of this Supplemental Agreement or an application thereof to any Person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Supplemental Agreement, or the application of such term or provision to Persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Supplemental Agreement shall be valid and enforceable to the fullest extent permitted by law.

Section 11.Full Recourse Liability.  The Owner has full recourse and personal liability for all of its obligations under this Supplemental Agreement and the other Note Documents.  In particular and not in limitation of the foregoing, (i) Mizuho (or the Trustee or Noteholder, as applicable) shall retain all rights which Mizuho (or the Trustee or Noteholder, as applicable) may have under Sections 506(a), 506(b), 111l(b), as amended, or any other provisions of the United States Bankruptcy Code to file a claim for the full amount of the obligations secured by the Collateral or to require that all collateral required pursuant to the Note Documents continue to secure all of the Obligations in accordance with the Note Documents and (ii) the Owner agrees and acknowledges that it shall continue to be liable for the payment of the Obligations in the event an Event of Bankruptcy shall occur with respect to the Owner.

			
	
 
	
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Section 12.Limitation on Liability of Stern Bothers’ and Mizuho’s Officers, Employees, etc.  Any obligation or liability whatsoever of Stern Brothers, Mizuho or any other Noteholder or any of such persons respective Affiliates, as applicable, which may arise at any time under this Supplemental Agreement or any other Note Document shall be satisfied, if at all, out of Stern Brothers, Mizuho’s or such Noteholder’s, as applicable, property and assets only.  No such obligation or liability shall be personally binding upon, nor shall resort for the enforcement thereof be had to, the property or assets of any of Stern Brothers’, Mizuho’s any other Noteholder’s or any such person’s respective Affiliates’, as applicable, shareholders, directors, officers, employees or agents, regardless of whether such obligation or liability is in the nature of contract, tort or otherwise.

Section 13.Rights and Remedies Cumulative.  The rights and remedies arising under and contained in this Supplemental Agreement shall be separate, distinct and cumulative, and none of them shall be in exclusion of the other.  All remedies arising under or contained in this Supplemental Agreement shall be in addition to every other remedy now or hereafter existing at law, in equity or by statute, or under any of the Note Documents.  Neither any course of dealing by the Noteholder Representative or the Trustee nor any failure or delay on its part to exercise any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof or the exercise of any other right or privilege.

Section 14.Successors and Assigns.  The covenants and obligations in this Supplemental Agreement shall bind, and the benefits and advantages hereof shall inure to, the parties hereto and their respective heirs, legal and personal representatives, executors, administrators, successors and permitted assigns.  This Supplemental Agreement may not be assigned by the Owner without the prior written consent of the Noteholder Representative.  This Supplemental Agreement is freely assignable by Stern Brothers, Mizuho or the Noteholder, as applicable.

Section 15.Counterparts.  This Supplemental Agreement may be executed in multiple counterparts, each of which shall constitute an original, but all of which taken together shall constitute one and the same instrument.  This Supplemental Agreement is solely for the benefit of the Owner, Stern Brothers, the Trustee, the Noteholder Representative, Mizuho and any future Noteholder, and no provision hereof shall be deemed to confer rights on any other person or entity.

Section 16.Time of the Essence.  TIME IS OF THE ESSENCE as to the Owner’s observance and performance of each and every one of its agreements and undertakings contained in this Supplemental Agreement.

Section 17.Voluntary Waiver of Automatic Stay.  THE OWNER HEREBY AGREES THAT IN THE EVENT THE OWNER COMMENCES A CASE UNDER THE UNITED STATES BANKRUPTCY CODE (11 U.S.C. § 101, ET SEQ., AS AMENDED, THE “BANKRUPTCY CODE”), OR IF A CASE IS COMMENCED AGAINST THE OWNER THEREUNDER, MIZUHO AND/OR ANY OTHER NOTEHOLDER, AS APPLICABLE, OR THE TRUSTEE SHALL THEREUPON BE ENTITLED, AND THE OWNER SHALL CONSENT, TO RELIEF FROM ANY AUTOMATIC STAY IMPOSED BY SECTION 362 

			
	
 
	
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OF THE BANKRUPTCY CODE, OR OTHERWISE, ON OR AGAINST THE RIGHTS AND REMEDIES OTHERWISE AVAILABLE TO MIZUHO AND ANY OTHER NOTEHOLDER, AS APPLICABLE, OR THE TRUSTEE UNDER THIS SUPPLEMENTAL AGREEMENT, THE INDENTURE, AND UNDER APPLICABLE LAW, TO ALLOW MIZUHO AND ANY OTHER NOTEHOLDER, AS APPLICABLE, OR THE TRUSTEE TO PURSUE SUCH REMEDIES.  THE OWNER FURTHER AGREES THAT IT SHALL, IMMEDIATELY UPON THE REQUEST OF THE NOTEHOLDER REPRESENTATIVE OR THE TRUSTEE, TAKE ALL ACTIONS NECESSARY TO AFFORD SUCH RELIEF TO MIZUHO OR ANY OTHER NOTEHOLDER, AS APPLICABLE, OR THE TRUSTEE, INCLUDING WITHOUT LIMITATION, TO EXECUTE SUCH DOCUMENTS AND TO FILE SUCH PAPERS AS MIZUHO OR ANY OTHER NOTEHOLDER, AS APPLICABLE, OR THE TRUSTEE DEEM NECESSARY AND APPROPRIATE TO OBTAIN SUCH RELIEF.

Section 18.Governing Law.  THIS SUPPLEMENTAL AGREEMENT SHALL BE DEEMED TO BE A CONTRACT UNDER, AND TOGETHER WITH ANY DISPUTES OR CONTROVERSIES ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL AGREEMENT, SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK AND APPLICABLE FEDERAL LAW, WITHOUT REGARD TO CHOICE OF LAW RULES OTHER THAN NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401 (OR ANY SUCCESSOR STATUTE THERETO).

Section 19. Waiver of Jury Trial.  BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS.  THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION (WITHOUT SUBMITTING TO ARBITRATION), THE PARTIES HERETO, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR LITIGATION (WHETHER AS CLAIM, COUNTER-CLAIM, AFFIRMATIVE DEFENSE OR OTHERWISE) BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH, THIS SUPPLEMENTAL AGREEMENT, THE INDENTURE OR THE OTHER NOTE DOCUMENTS.  EACH OF THE PARTIES REPRESENTS AND ACKNOWLEDGES THAT IT HAS REVIEWED THIS PROVISION WITH ITS LEGAL COUNSEL.

Section 20.Damages.  NONE OF STERN BROTHERS, MIZUHO, THE NOTEHOLDER REPRESENTATIVE, THE NOTEHOLDERS OR THEIR RESPECTIVE AFFILIATES SHALL BE RESPONSIBLE OR LIABLE TO THE OWNER, THE TRUSTEE OR ANY OTHER PERSON OR ENTITY FOR ANY PUNITIVE, EXEMPLARY, SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES OR LOST PROFITS OR LOST REVENUES WHICH MAY BE ALLEGED AS A RESULT OF THIS SUPPLEMENTAL AGREEMENT.

			
	
 
	
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Section 21.Sale of Notes and Secondary Market Transaction.  At the Noteholder Representative’s request, the Owner shall use reasonable efforts to satisfy the market standards reasonably required in the marketplace or by the Noteholder Representative in connection with one or more sales or assignments of all or a portion of the Notes or participations therein or securitizations of single or multi-class securities (the “Securities”) secured by or evidencing ownership interests in all or a portion of the Notes (each such sale, assignment and/or securitization, a “Secondary Market Transaction”); provided that the Owner shall not incur any third party or other out-of-pocket costs and expenses in connection with a Secondary Market Transaction, including the costs associated with the delivery of any provided information or any opinion required in connection therewith, and all such costs including, without limitation, any costs associated with receiving a rating on the Notes, shall be paid by the Noteholder, and shall not materially modify the Owner’s rights or obligations.

Section 22.Termination.  This Supplemental Agreement shall terminate upon payment in full of the Notes, and simultaneous thereto, the Trustee will release all Liens and security interests in the Collateral or any part thereof existing for the benefit of Mizuho or any other Noteholder; provided that if the Noteholder Representative has a good faith reason to believe the Owner will have any obligation pursuant to Section 3(b) hereof, then such Liens and security interests shall not be released until the Owner has provided other security for such obligations or made other arrangements reasonably acceptable to the Noteholder Representative for the protection of the Noteholders.

Section 23.Payments Set Aside.  To the extent that any payment is made to or for the benefit of the Trustee, Mizuho or any other Noteholder, or the Trustee, Mizuho or any other Noteholder exercises its right of setoff, and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by Mizuho or any other Noteholder in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any law or regulation relating to liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws and regulations or otherwise, then to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such setoff had not occurred.

Section 24.Electronic Signature; Electronically Signed Document.  For purposes hereof, “electronic signature” means a manually signed original signature that is then transmitted by electronic means; “transmitted by electronic means” means sent in the form of a facsimile or sent via the Internet as a pdf (portable document format) or other replicating image attached to an email message; and “electronically signed document” means a document transmitted by electronic means and containing, or to which there is affixed, an electronic signature.  The parties agree that the electronic signature of a party to this Supplemental Agreement (or any amendment or supplement of this Supplemental Agreement) shall be as valid as an original signature of such party and shall be effective to bind such party to this Supplemental Agreement.  The parties agree that any electronically signed document (including this Supplemental Agreement) shall be deemed (i) to be “written” or “in writing,” (ii) to have been signed, and (iii) to constitute a record established and maintained in the ordinary course of 

			
	
 
	
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business and an original written record when printed from electronic files.  Such paper copies or “printouts”, if introduced as evidence in any judicial, arbitral, mediation or administrative proceeding, will be admissible as between the parties to the same extent and under the same conditions as other original business records created and maintained in documentary form.  Neither party shall contest the admissibility of true and accurate copies of electronically signed documents on the basis of the best evidence rule or as not satisfying the business records exception to the hearsay rule.

Section 25.Conflict.  The Owner, Stern Brothers, the Trustee and Mizuho hereby agree and acknowledge that the terms and conditions of this Supplemental Agreement, and the obligations of the Owner hereunder, are intended to be supplemental to and not in derogation of the terms and conditions of the other Note Documents, and the obligations of the Owner thereunder.

Section 26.Purchase by Stern Brothers.

(a)Subject to the terms and conditions set forth in this Agreement, Stern Brothers hereby agrees to purchase $103,500,000 of Notes from the Owner and the Owner hereby agrees to sell such Notes to Stern Brothers when, as and if issued, in exchange for payment of the purchase price of $103,500,000.  Subsequent to the initial purchase of the Notes, Stern Brothers hereby agrees to sell $103,500,000 in principal amount of the Notes to Mizuho and Mizuho agrees to purchase all (but not less than all) of the Notes from Stern Brothers for the purchase price of  $103,500,000.

(b)The Notes will (i) be issued in accordance with the applicable procedural and substantive requirements of the Indenture and (ii) have the payment-related terms (that is, the dated date, maturity date, interest rates, interest payment dates and redemption provisions) set forth therein.  As a condition to the sale of the Notes, Mizuho will execute and deliver an Investor Letter to the Trustee and the Owner on the Closing Date.

Section 27.Reliance; Failure to Perform; Consequences.  Each of the parties hereto acknowledges that Stern Brothers and Mizuho have agreed (subject to the terms and conditions of this Supplemental Agreement) to purchase the Notes and is entering into and will enter into this Supplemental Agreement and other contracts with other parties in reliance upon fulfillment and satisfaction of the respective obligations of the parties under this Supplemental Agreement and the Note Documents.  In the event of a failure to fulfill or a breach of any of the terms, provisions or conditions of this Supplemental Agreement or the Note Documents (or any of them) Stern Brothers and Mizuho shall have no responsibility or other obligation of any nature or kind to purchase, retire, refund or otherwise repay the Notes in whole or in part.

 

 

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IN WITNESS WHEREOF, the Owner has caused this Supplemental Agreement to be executed by its duly authorized officer, Mizuho has caused this Supplemental Agreement to be executed by a duly authorized officer of its Sole Member, Stern Brothers has caused this Supplemental Agreement to be executed by its duly authorized officer, and the Trustee has caused this Supplemental Agreement to be executed by its duly authorized signatory, all as of the date first above written.

 

			
	
ATAX TEBS HOLDINGS, LLC,

	
a Delaware limited liability company

	
 
	
 
	
 

	
By:
	
 
	
 

	
Name:
	
 
	
Jesse Coury

	
Title:
	
 
	
Chief Financial Officer

 

 

 

			
	
 
	
S-1
	
 

	
 
	
 
	
 

 

 

 

			
	
STERN BROTHERS & CO.

	
 

	
 
	
 
	
 

	
By:
	
 
	
 

	
Name:
	
 
	
 

	
Title:
	
 
	
 

 

 

			
	
 
	
S-2
	
 

	
 
	
 
	
 

 

 

 

 

				
	
MIZUHO CAPITAL MARKETS LLC,

	
a Delaware limited liability company

	
 

	
By: Mizuho Securities USA LLC, in its capacity as

	
 
	
manager
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
Name:
	
 
	
Mirza Kafedzic

	
 
	
Title:
	
 
	
Managing Director

 

 

			
	
 
	
S-3
	
 

	
 
	
 
	
 

 

 

 

			
	
TERMS CONSENTED TO:
	
 
	
U.S. BANK  NATIONAL

	
 
	
 
	
ASSOCIATION, as Trustee

 

			
	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
Authorized Signatory

 

 

 

			
	
 
	
S-4
	
 

	
 
	
 
	
 

 

 

EXHIBIT A

DEFINITIONS

Capitalized terms used in this Agreement shall have the respective meanings assigned thereto in the body of this Agreement or in this Exhibit A, as applicable.  Capitalized terms used herein and not defined herein (including in this Exhibit A) shall have the respective meanings assigned thereto in the Indenture.

“Affiliate” of any specified Person shall mean any other Person directly or indirectly controlling or controlled by, or under direct or indirect common control with, such specified Person.  For purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by agreement, contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

“Code of 1986” or “Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations, rulings and proclamations promulgated or proposed thereunder.

“Debt” shall mean, for any Person, without duplication: (a) all indebtedness of such Person for borrowed money, for amounts drawn under a letter of credit, or for the deferred purchase price of property for which such Person or its assets is liable; (b) all unfunded amounts under a loan agreement, letter of credit, or other credit facility for which such Person would be liable, if such amounts were advanced under the credit facility; (c) all amounts required to be paid by such Person as a guaranteed payment to partners or a preferred or special dividend, including any mandatory redemption of shares or interests; (d) all indebtedness guaranteed by such Person, directly or indirectly; (e) all obligations secured by any Lien on any property of such Person, whether or not the obligations have been assumed; (f) current liabilities in respect of unfunded benefits under employee benefit, retirement or pension plans; (g) all obligations under leases that constitute capital leases for which such Person is liable; and (h) all obligations of such Person under interest rate swaps, caps, floors, collars and other interest hedge agreements, in each case whether such Person is liable contingently or otherwise, as obligor, guarantor or otherwise, or in respect of which obligations such Person otherwise assures a creditor against loss.

“Default Rate” shall mean the lesser of (a) the maximum rate of interest allowed by applicable law and (b) fifteen percent (15%) per annum (computed on the basis of a 360-day year for the actual number of days elapsed).

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

“ERISA Affiliate” means any trade or business (whether or not incorporated) that, together with the Owner, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section 414 of the Code.

 

			
	
 
	
A-1
	
 

	
 
	
 
	
 

 

 

“ERISA Event” means (a) any “reportable event,” as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30 day notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Owner or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the Owner, any ERISA Affiliate or a Plan administrator of notice from the PBGC relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the Owner or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Owner or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

“Event of Default” shall have the meaning set forth in Section 5 hereof. 

“Interest” shall mean, collectively, any interest, including, but not limited to, any interest accrued at the Default Rate, due and payable with respect to the Notes.

“Mizuho” shall mean Mizuho Capital Markets LLC.

“Mizuho Party” or “Mizuho Parties” shall have the meaning set forth in Section 3(b).

“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

“Obligations” shall mean, collectively, the total indebtedness secured by the Collateral and all other obligations of the Owner under the Note Documents.

“Operating Agreement” means the Limited Liability Company Agreement for ATAX TEBS Holdings, LLC, dated as of September 9, 2020, as the same me\a be amended, modified or supplemented from time to time.

“Owner” shall mean ATAX TEBS Holdings, LLC, a limited liability company organized and existing under the laws of the State of Delaware  and its permitted successors and assigns.

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

“Person” shall mean any individual, corporation, partnership, joint venture, association, joint stock company, trust, trustee, estate, limited liability company, unincorporated organization, real estate investment trust, government or any agency or political subdivision thereof, or any other form of entity.

 

			
	
 
	
A-2
	
 

	
 
	
 
	
 

 

 

“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the Owner or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

“Potential Default” shall mean any event or condition which, with the giving of notice, the passage of time, or both, would constitute an Event of Default

“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

 

 

			
	
 
	
A-3atax-ex103_8.htm

Exhibit 10.3

 

 

LIMITED GUARANTY, PLEDGE OF SOLE MEMBERSHIP
INTERESTS AND SECURITY AGREEMENT

from

AMERICA FIRST MULTIFAMILY INVESTORS, L.P., as Assignor,

for the benefit of

U.S. BANK NATIONAL ASSOCIATION, as trustee

Dated as of September 24, 2020

Relating to:

$103,500,000

ATAX TEBS Holdings, LLC 

Taxable Secured Notes
2020 Series A

 

 

 

 

 

 

 

 

LIMITED GUARANTY, PLEDGE
OF SOLE MEMBERSHIP INTERESTS AND SECURITY AGREEMENT

This LIMITED GUARANTY, PLEDGE OF SOLE MEMBERSHIP INTERESTS AND SECURITY AGREEMENT dated as of September 24, 2020 (as amended, modified or supplemented from time to time, this “Assignment”) made from AMERICA FIRST MULTIFAMILY INVESTORS, L.P., a limited partnership organized and existing under the laws of the State of Delaware (together with its permitted successors and assigns, the “Assignor”), in favor of U.S. BANK NATIONAL ASSOCIATION, a national banking association duly organized and validly existing under the laws of the United States of America, in its capacity as Trustee under that certain Indenture (defined below), for the hereinafter defined Notes (together with any successor trustee under the Indenture described below and their respective successors and assigns, the “Trustee”),

W I T N E S S E T H:

WHEREAS, the Assignor is the sole member of ATAX TEBS Holdings, LLC, a limited liability company organized and existing under the laws of the State of Delaware (together with its permitted successors and assigns, the “Issuer”);

WHEREAS, the Issuer has entered into an Indenture of Trust dated as of September 24, 2020 (as the same may be amended, modified or supplemented from time to time, the “Indenture”), pursuant to which the Issuer has issued its Secured Taxable Notes 2020 Series A in the original principal amount of $103,500,000 (the “Notes”);

WHEREAS, to provide as source of payment for the Notes and as collateral for the Issuer’s obligations in respect of the Notes and under the Indenture and the other Note Documents (as defined in the Indenture), the Issuer has requested and the Assignor has agreed to guaranty the Issuer’s obligations in respect of the Notes and under the Note Documents and to pledge the collateral set forth herein to the Trustee for the benefit of the holders from time to time of the Notes; and

WHEREAS, the Assignor, as sole member of the Issuer, will realize economic and other benefits as a result of the purchase of the Notes by the holders thereof;

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Trustee and the Assignor hereby agree as follows:

Section 1.Guaranty.

(a)The Assignor hereby absolutely, irrevocably and unconditionally guarantees and is surety to the Trustee for, the full and punctual payment and performance by the Issuer of the payment and other covenants and obligations of the Issuer with respect to the Notes and under the Note Documents (hereinafter collectively referred to as the “Guaranteed Obligations”).

 

 

(b)The guaranty of the Assignor under this Assignment is a guaranty of payment and performance and not merely of collection or enforceability and shall remain in full force and effect until all of the Guaranteed Obligations are indefeasibly paid and performed in full. The obligations and liabilities of the Assignor under this Assignment are the primary, direct and immediate obligations of the Assignor and shall in no way be affected, limited, impaired, modified or released by, subject to or conditioned upon, and may be enforced against the Assignor irrespective of (i) any attempt, pursuit, enforcement or exhaustion of any rights and remedies the Trustee may at any time have to collect, any or all of the Guaranteed Obligations (whether pursuant to any of Note Documents or otherwise) from the Issuer, from any other maker, endorser, surety or assignor of, or assignor of collateral and security for, all or any part of the Guaranteed Obligations, and/or by any resort or recourse to or against any collateral and security for all or any part of the Guaranteed Obligations, (ii) the invalidity, irregularity, lack of priority or unenforceability in whole or in part of any or all of the Note Documents, (iii) any counter-claim, recoupment, setoff, reduction or defense based on any claim the Issuer or the Assignor may now or hereafter have against the Trustee (other than the defense that payment in full of all amounts claimed to be due by the Trustee actually has been made), (iv) the voluntary or involuntary liquidation, dissolution, termination, merger, sale or other disposition of any of the assets and properties of the Issuer, (v) any bankruptcy, reorganization, insolvency or similar proceedings for the relief of debtors under any federal or state law by or against the Issuer, or any discharge, limitation, modification or release of liability of the Issuer by virtue of any such proceedings, (vi) any event, circumstance or matter to which the Assignor has consented pursuant to the provisions of clause (c) below, hereof, and (vii) any other event or circumstance which might otherwise constitute a legal or equitable discharge, release or defense of the Assignor or surety, whether similar or dissimilar to the foregoing (other than the defense that payment in full of all amounts claimed to be due by the Trustee actually has been made).

(c)Without notice to, or further consent of, the Assignor, the Assignor hereby agrees that the Trustee, at the direction of the Noteholder Representative, in accordance with the applicable Note Documents, may at any time and from time to time on one or more occasions (i) renew, extend, accelerate, subordinate, change the time or manner of payment or performance of, or otherwise deal with, in any manner satisfactory to the Noteholder Representative, any of the terms and provisions of, all or any part of the Guaranteed Obligations, (ii) waive, excuse, release, change, amend, modify or otherwise deal with in any manner satisfactory to the Noteholder Representative any of the provisions of any of, the Note Documents, (iii) release the Issuer, (iv) waive, omit or delay the exercise of any of its powers, rights and remedies against the Issuer or all or any of the collateral and security for all or any part of the Guaranteed Obligations, (v) release, substitute, subordinate, add, fail to maintain, preserve or perfect any of its liens on, security interests in or rights to, or otherwise deal with in any manner satisfactory to the Noteholder Representative, any collateral and security for all or any part of the Guaranteed Obligations, (vi) apply any payments of all or any of the Guaranteed Obligations received from the Issuer or any other party or source whatsoever first to late charges or other sums due and owing to the Trustee, next to accrued and unpaid interest, and then to amounts due under the Notes, the Indenture and the other Note Documents and any excess, after payment of the Guaranteed Obligations and performance of all other Guaranteed Obligations of the Issuer to the Trustee, shall be returned to the Issuer, or (vii) take or omit to take any other action, whether similar or dissimilar to the foregoing which may or might in any manner or to any extent vary the risk of the Assignor or otherwise operate as a legal or equitable discharge, release or defense of the Assignor under applicable laws.

(d)The Assignor hereby waives (i) notice of the execution and delivery of any of the Note Documents, (ii) notice of the creation of any of the Guaranteed Obligations, (iii) notice of the Trustee’s acceptance of and reliance on this Assignment, (iv) presentment and demand for payment of the Guaranteed Obligations and notice of non-payment and protest of non-payment of the Guaranteed Obligations, (v) any notice from the Trustee of the financial condition of the Issuer regardless of the Trustee’s knowledge thereof, (vi) demand for observance, performance or enforcement of, or notice of default under, any of the provisions of this Assignment or any of the Note Documents (other than such as are expressly provided for therein), and all other demands and notices otherwise required by law which the Assignor may lawfully waive, (vii) any right or claim to cause a marshalling of the assets of the Issuer, and (viii) any defense at law or in equity based on the adequacy or value of the consideration for this Assignment, the Assignor agrees not to institute any action or proceeding based on any rights of subrogation and reimbursement against the Issuer or against any collateral or security for any of the Guaranteed Obligations until the Guaranteed Obligations have been indefeasibly paid and satisfied in full. The foregoing sentence is not intended to limit the Assignor’s right to accept payments from the Issuer that are otherwise 

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permitted under the Note Documents. The Assignor waives any and all other rights and defenses available to the Assignor by reason of any statutory provisions now or hereafter in effect in any other jurisdiction, including, without limitation, any and all rights or defenses the Assignor may have by reason of protection afforded to the Issuer or any obligor with respect to the Guaranteed Obligations pursuant to antideficiency or other laws of any state limiting or discharging the Issuer ’s or any obligor’s indebtedness (other than the defense that payment in full of all amounts claimed to be due from such parties actually has been made). The Assignor waives all rights and defenses arising out of an election of remedies by the Trustee, even if that election of remedies, such as a nonjudicial foreclosure with respect to security for a guaranteed obligation, has destroyed the Assignor’s rights of subrogation and reimbursement against the Issuer.

(e)The obligations of the Assignor hereunder shall be recoverable solely out of the collateral pledged pursuant to this Assignment, and shall otherwise be without recourse to the Assignor or any of its other assets or any past, present or future, direct or indirect, partners, members or shareholders in the Assignor, except that the Trustee shall have recourse to the assets of any such person or entity if and only to the extent such person or entity has expressly assumed (other than by execution and delivery of this Assignment) or hereafter expressly assumes liability for, or has pledged (other than pursuant to this Assignment) or hereafter pledges any of its other assets as security for the performance of the Guaranteed Obligations or of the Assignor’s obligations hereunder.  Notwithstanding the preceding sentence, the Assignor (and its general partners or members) shall be jointly and severally personally liable for and to the extent of any loss suffered by the Trustee, as a result of (i) any act of fraud or willful misconduct by the Assignor, (ii) the application of any Collateral by the Assignor following an Event of Default other than as provided herein, or (iii) the failure by the Assignor to obtain the Trustee’s prior written consent to take any action otherwise proscribed by the terms of Section 3 below.  In addition, nothing herein contained shall be deemed to limit, vary, modify or amend any obligation owed to the Trustee, under any guaranty or indemnification agreement to which the Assignor is a party.

Section 2.Assignment; Security Interests.  

(a)The Assignor hereby pledges, transfers and assigns to the Trustee and grants to the Trustee a security interest (the “Security Interest”) in the following described items, and in all interest received thereon, in all renewals, replacements and substitutions therefor in all accessions thereto and in all proceeds thereof in any form (the “Collateral”): all of the Assignor’s right, title and interest in and to, 

(i) its membership interest in the Issuer, whether now or hereafter existing, or now or hereafter acquired, including, but not by way of limitation, (1) its interest in the income, all distributions, repayment of capital contributions, deductions, losses and tax benefits, (2) any and all loans made by the Issuer to any person or entity, (3) any other sums, payments, fees or other amounts to which the Assignor may be entitled from the Issuer as a member thereof, (4) the Operating Agreement, as it may be amended, supplemented and/or restated from time to time, (5) all voting rights of the Assignor under the operating agreement for the Issuer dated as of September 9, 2020, as it may be amended, supplemented and/or restated from time to time (the “Operating Agreement”), and (6) all books and records pertaining to 

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any of the above described property, including, but not limited to, any computer readable memory and any computer hardware or software;

(ii)its membership interests in the four (4) separate entities identified on Schedule I hereto as the “TEBS Sponsors” (the “TEBS Sponsors”), whether now or hereafter existing, or now or hereafter acquired, including, but not by way of limitation, (1) its interest in the income, all distributions, repayment of capital contributions, deductions, losses and tax benefits, including, without limitation, all payments of principal, interest of other cash flow from the “Class B Certificates” identified on Schedule I hereto (the “Class B Certificates”) held by the TEBS Sponsors and the proceeds of any redemption or disposition of the Class B Certificates, (2) any and all loans made by the TEBS Sponsors to any person or entity, (3) any other sums, payments, fees or other amounts to which the Assignor may be entitled from the TEBS Sponsors as sole member thereof, (4) the “TEBS Sponsor Operating Agreements” identified on Schedule I hereto, as they may be amended, supplemented and/or restated from time to time (the “TEBS Sponsor Operating Agreements”), (5) all voting rights of the Assignor under the TEBS Sponsor Operating Agreements, and (6) all books and records pertaining to any of the above described property, including, but not limited to, any computer readable memory and any computer hardware or software; and

(iii) all proceeds and products of the foregoing and all accounts, contract rights and general intangibles related to the foregoing.

(b)As of the date of execution and delivery of this agreement, all distributions on the Class B Certificates are deposited by Freddie Mac on a monthly basis to the bank accounts of the TEBS Sponsors (the “Sponsor Accounts”) with Bankers Trust Company. The Assignor shall cause each TEBS Sponsor to forward all payments in respect of the Class B Certificates to the Trustee upon receipt, and the Trustee shall deposit all Class B Certificate payments, when received from the TEBS Sponsors, into the Collateral Fund established under the Indenture; provided, however, if the amount then on deposit in the Reserve Account of the Note Fund shall be less than the Reserve Amount, the Trustee shall first apply such funds to replenish the Reserve Account and shall deposit the balance, if any, in the Collateral Fund.

(c)As soon as practicable, and in any event within sixty (60) days of the date of issuance of the Notes, the Assignor shall (i) cause the TEBS Sponsors to change their payment instructions with Freddie Mac to provide for payments in respect of the Class B Certificates to be made to accounts owned by the TEBS Sponsors at the U.S. Bank National Association and (ii) to irrevocably instruct that amounts be automatically deposited with, or exclusively made available to the Trustee upon receipt.  The Trustee shall deposit all Class B Certificate payments so received into the Collateral Fund established under the Indenture.  At such time as the Assignor has established to the Initial Noteholder’s reasonable satisfaction that the payments in respect of the Class B Certificates are being made as provided in the first sentence of this Section 2(c) and so long as no other Event of Default shall have occurred and be then continuing, the Trustee, at the Initial Noteholder’s written direction, shall release the balance of any funds held in the Reserve Account of the Note Fund to or upon the direction of the Issuer.

4

 

(d)So long as no Event of Default has occurred and is then continuing, the Trustee shall hold the amounts paid in respect of the Class B Certificates in the Collateral Fund and shall, on each Interest Payment Date in respect of the Notes, (i) transfer to the Note Fund an amount needed to pay interest on the Notes due on such Interest Payment Date, (ii) transfer to the Note Fund any amounts representing principal payments under any Class B Certificates or the principal component of any payment of the redemption price of any Class B Certificates or the disposition proceeds of any Class B Certificates to the Note Fund to be applied to the mandatory redemption of the Notes on the next date for which notice of redemption can be given under the Indenture, (iii) apply funds held in the Collateral Fund to pay or reimburse any other amounts then due and owing by the Issuer under the Indenture or the Note Documents, and (iv) release the balance, if any, to or upon the direction of the Assignor. Upon the occurrence and during the continuance of an Event of Default under the Note Documents, any profits (but not losses), incomes, contributions, proceeds and any other sums, fees or amounts which the Assignor receives (or is entitled to receive) from the Issuer or the TEBS Sponsors, including any payment in respect of the Class B Certificates, will be immediately delivered by the Assignor or the Issuer, as applicable, to the Trustee as cash collateral to be held by the Trustee in the Collateral Fund established under the Indenture.  Following the occurrence of an Event of Default, the Trustee shall release the cash and interest thereon and deliver the balance thereof remaining on deposit in the Collateral Fund to the Assignor upon the payment in full of all indebtedness of the Issuer to the Trustee.

(e)The Assignor covenants that upon the occurrence and during the continuance of an Event of Default under the Note Documents, any profits (but not losses), incomes, contributions, proceeds and any other sums, fees or amounts which the Assignor receives (or is entitled to receive) from the Issuer will be immediately delivered by the Assignor or the Issuer, as applicable, to the Trustee as cash collateral to be held by the Trustee for the purpose of securing the payment and performance by the Issuer under the Indenture and the Note Documents.  

(f)As satisfaction of its obligations pursuant to this Section, the Assignor agrees to deliver to the Trustee assignments in blank of all of its interest in the Issuer.  Upon termination of this Assignment as provided in Section 9 below, such assignments shall be returned by the Trustee to the Assignor without recourse, representation or warranty.

Section 3.Representations and Covenants of Assignor.

(a)The Assignor represents and warrants that it owns one hundred percent (100%) of the membership interests in the Issuer and each of the TEBS Sponsors. The Assignor represents, covenants and warrants that, prior to the date of this Agreement, it is the legal and beneficial owner of the Collateral, and, except for Permitted Liens, it has not, and will not, enter into any assignment, mortgage, pledge or other instrument which transfers or encumbers all or any part of its interest in the Issuer or in any TEBS Sponsor or all or any part of its rights to receive income, contributions, proceeds, profits or distributions thereof assigned hereby without the prior written consent of the Trustee, acting at the direction of the Noteholder Representative. For purposes of the foregoing, “Permitted Liens” shall mean the rights of Federal Home Loan Mortgage Corporation (“Freddie Mac”) in and to the Class B Certificates and certain rights with respect thereto granted under the related documents identified on Schedule I hereto with respect to each such Class B Certificate (the “TEBS Documents”), and any right Freddie Mac may have 

5

 

to consent to the transfer of the membership interests in the Issuer or the TEBS Sponsors or amendment of any of their organizational documents.

(b)The Assignor has provided the Noteholder Representative with true, correct and complete copies of the Operating Agreement, the TEBS Sponsor Operating Agreements, the Class B Certificates and the TEBS Documents, including all amendments and modifications thereto.  There are no material agreements or arrangements, formal or informal, which would affect the rights of the Assignor as the sole member of the Issuer and the TEBS Sponsors or the terms of the Class B Certificates and the TEBS Documents which have not been provided to the Noteholder Representative.

(c)The Assignor is duly organized, validly existing and in good standing under the laws of the state of its formation or incorporation, is in compliance with all legal requirements applicable to doing business in the states where such qualification is required, and is under no legal disability.

(d)The execution and delivery of this Assignment and the consummation of the transactions contemplated hereby (i) are within the legal power and authority of the Assignor, (ii) have been duly authorized by the Assignor, (iii) do not conflict with, or result in a breach of, any of the governing documents of the Assignor or any agreement to which the Assignor is a party or by which it or its properties are bound, (iv) do not conflict with, or result in a breach of, any of the terms, conditions or provisions of or constitute a default under any order, rule or regulation applicable to the Assignor or any of its property of any court or governmental body, and (v) do not result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the Assignor or under the terms of any instrument or agreement to which the Assignor is a party.

(e)No consent, authorization or approval, except such consents, authorizations or approvals as have been obtained prior to the execution and delivery of this Assignment, from any governmental, public or quasi-public body or authority of the United States or of the State of Delaware, or of any agency or subdivision of any thereof, is necessary for the issuance of the due execution, delivery and performance by the Assignor of this Assignment.

(f)This Assignment constitutes the legal, valid and binding obligation of the Assignor, enforceable against the Assignor in accordance with its terms, subject to applicable bankruptcy, insolvency or similar laws generally affecting the enforcement of creditors’ rights or by general principles of equity, and except as enforceability may be limited by applicable securities laws or public policy.

(g)  The Assignor is entering into this Assignment freely and voluntarily with the advice of legal counsel of its own choosing, and has freely and voluntarily agreed to the terms, provisions and undertakings set forth in this Assignment.

(h)There are no actions, suits or proceedings pending or, to the knowledge of the Assignor, threatened against the Assignor, at law, in equity, in arbitration or before or by any court, board, commission, agency or instrumentality of any federal, state or local government or 

6

 

of any agency or subdivision thereof, or before any arbitrator or panel of arbitrators, which involve the transactions contemplated by this Assignment.

(i)The Assignor represents that there are no defaults, or events which with the giving of notice or the passage of time, would constitute defaults on the part of any TEBS Sponsor under any of the Class B Certificates or any of the TEBS Documents.  The Assignor covenants and agrees to cause the TEBS Sponsors to comply with the provisions of the Class B Certificates and the TEBS Documents.

(j)The Assignor agrees not to amend or voluntarily permit the amendment of the Operating Agreement, any of the TEBS Sponsor Operating Agreements, or the terms of the Class B Certificates and the TEBS Documents, without in each case the prior written consent of the Noteholder Representative.

(k)The Assignor covenants and agrees not to (i) voluntarily withdraw as sole member of the Issuer or any of the TEBS Sponsors, or (ii) sell, transfer or otherwise dispose of any of its membership interests in the Issuer or any TEBS Sponsor, without in each case the prior written consent of the Noteholder Representative

Section 4.Further Assurances; Rights of Trustee, Noteholder Representative.  

(a)The Assignor covenants and agrees to execute such additional documents and to take such further actions as may be reasonably required to carry out the provisions and intent of this Assignment.  The Assignor hereby grants the Trustee permission to file any and all financing statements and continuations, renewals and/or amendments thereof as the Trustee may deem necessary and/or appropriate in connection with this Assignment. For the avoidance of doubt, nothing herein shall require the Trustee to file financing statements or continuation statements, or be responsible for maintaining the security interest purported to be created as described herein (except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder or under any other Note Document) and such responsibility shall be solely that of the Assignor. Without limiting the generality of the foregoing, the Assignor hereby agrees, contemporaneously with the execution and delivery hereof,  to deliver (i) consents of the Issuer and each of the TEBS Sponsors to the pledge of the Collateral hereunder in the form attached hereto as Exhibit A, and (ii) certificates of membership interest in the Issuer and each of the TEBS Sponsors accompanied by an assignment of transfer in blank in the form attached hereto as Exhibit B.

(b)The Trustee and the Noteholder Representative shall have and the Assignor hereby irrevocably authorizes and agrees to permit, to cooperate with and to facilitate the exercise of the following rights:

(i) To inspect the Assignor’s books and records with respect to the Collateral from time to time upon reasonable notice and without notice for reasonable cause; and

(ii) To deal, without notice, with the Assignor’s successors or successors in interest with respect to this Assignment and the Guaranteed Obligations secured hereby in the same manner as with the Assignor without in any way vitiating or discharging the Assignor’s liability hereunder or upon the Guaranteed Obligations.

7

 

(c)The Assignor hereby irrevocably appoints the Trustee and any officers or agent thereof (including the Noteholder Representative), with full power of substitution the Assignor’s attorney-in-fact and proxy, coupled with an interest, with full and irrevocable power and authority in the place and stead of the Assignor to take any action and to execute any instrument deemed necessary or advisable by the Trustee or the Noteholder Representative to perfect the Trustee’s security interest in and to collection the Collateral. The powers conferred upon the Trustee by this Assignment are to protect its interest in the Collateral and shall not impose any duty upon the Trustee to exercise any such powers.  The Assignor agrees that the Trustee shall not be liable for, nor shall the indebtedness evidenced by the Guaranteed Obligations be diminished by, the Trustee’s delay or failure to collect upon, foreclose, sell, take possession of or otherwise obtain value for the Collateral.  Except as may be required by the provisions of the Indenture, the Trustee shall be under no duty to make or give any presentment, notice of dishonor, protest, demand for performance, notice of non-performance, notice of intent to accelerate, notice of acceleration, or other notice or demand in connection with any Collateral or the Guaranteed Obligations, or take any steps necessary to preserve any rights against the Assignor or any other person.

Section 5.  Events of Default and Remedies Upon Default.  

(a)The occurrence of any of the following events or conditions shall constitute an event of default (an “Event of Default”) and shall, at the Trustee’s election, upon the direction of the Noteholder Representative, authorize and empower the Trustee to exercise any of the Trustee’s rights and remedies hereunder or at law or in equity;

(i)Failure of the Assignor to pay, perform or observe any of the Assignor’s obligations set forth herein, if such failure shall continue for ten (10) days after written notice thereof is sent to the Assignor;

(ii)    The Issuer or any other obligor’s default, beyond applicable notice and grace periods, if any, in respect of the Notes or under the Note Documents;

(iii)  Any event of default, beyond applicable notice and grace period, if any, under the Class B Certificates or any of the TEBS Documents; or

(iv)   If foreclosure or other proceedings intended to enforce or realize upon any junior or senior security interest covering all or any part of the Collateral, including, Freddie Mac’s lien on the Class B Certificates or any interests therein, or other proceeding whereby the Assignor’s ownership or rights to possession or control of the Collateral may be threatened, should be commenced or instituted; or

(v)    Any Event of Bankruptcy with respect to the Assignor or any TEBS Sponsor.

(b)Upon and during the continuation of an Event of Default under the Note Documents, the Trustee, acting at the direction of the Noteholder Representative, shall have all rights and remedies available to it at law or in equity, including, without limitation, any one or more of the following:

8

 

(i)The right to sell the Collateral at one or more public or private sales at such price and on such terms as the Trustee at the direction of the Noteholder Representative accepts, for cash, upon or for future delivery.  Upon any such sale the Trustee shall have the right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral, subject to the requirements of Freddie Mac.  Such purchaser at any such sale shall hold the Collateral sold absolutely free from any claim or right on the part of the Assignor, and the Assignor hereby waives (to the extent permitted by law) all rights of redemption, stay or appraisal which it has or may have under any rule of law or statute now existing or hereafter adopted.  The Trustee shall give the Assignor ten (10) days’ written notice by registered or certified mail, postage prepaid, return receipt requested (which the Assignor acknowledges is reasonable and sufficient), of the Trustee’s intention to make any such public or private sale.  Such notice, in the case of public sale, shall state the time and place fixed for such sale.  Any such public sale shall be held at such time or times within ordinary business hours and at such place or places as the Trustee may fix in the notice of such sale.  The Trustee shall not be obligated to make any sale of the Collateral if it shall determine not to do so at the direction of the Noteholder Representative, regardless of the fact that notice of such sale of the Collateral may have been given.  The Trustee may, at the direction of the Noteholder Representative, upon one (1) day’s written notice, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place within which the same was so adjourned.  In case sale of all or any part of the Collateral is made on credit or for future delivery, the Collateral so sold may be retained by the Trustee until the sale price is paid by the purchaser or purchasers thereof, but the Trustee shall not incur any liability in case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold, and, in case of any such failure, such Collateral may be sold again upon like notice.

(ii)To proceed by a suit or suits at law or in equity to foreclose this Assignment and to sell the Collateral, or any portion thereof, pursuant to a judgment or decree of a court of competent jurisdiction.

(iii)The right to appoint a receiver to operate the Issuer or any TEBS Sponsor.

(iv)Such other rights with respect to the Collateral as shall be afforded to secured parties by the U.C.C. of the State of New York, including, but not limited to, the right to setoff.

(v)To apply any proceeds of any disposition of the Collateral to the payment of expenses of the Trustee in connection with the exercise of its rights or remedies, including reasonable fees and expenses of attorneys, and any balance of such proceeds shall be applied by the Trustee as set forth in the Indenture.

(c)No remedy herein conferred upon or reserved to the Trustee is intended to be exclusive of any other remedy, and such remedies shall be cumulative and shall be in addition 

9

 

to every other remedy given hereunder and under the other Note Documents.  No delay or omission of the Trustee in exercising any right or power shall be construed to be a waiver of any default or any acquiescence therein, and every power and remedy given by this Assignment to the Trustee may be exercised from time to time as often as may be deemed expedient by the Noteholder Representative.  In addition to all other remedies provided in this Assignment, the Trustee shall be entitled, to the extent permitted by applicable law, to injunctive relief in case of the violation, or attempted or threatened violation, of any of the provisions of this Assignment and to a decree compelling performance of any of the provisions of this Assignment.

Section 6.No Marshalling.  The Assignor hereby waives any right to require that the Trustee or the Issuer proceed against any real or personal property or any guaranty given as security for the Notes, whether or not existing or hereafter given, before exercising its rights and remedies with respect to the Collateral.

Section 7.Trustee Not Liable.  The Trustee shall not be obligated to perform or discharge, nor does it hereby undertake to perform or discharge any obligation, duty or liability under the Collateral and the Assignor shall and does hereby agree to indemnify the Trustee for and to hold the Trustee harmless of and from any and all liability, loss or damage which it may or might incur under the Collateral or under or by reason of the assignment of the Collateral and of and from any and all claims and demands whatsoever which may be asserted against it by reason of any alleged obligations or undertaking on its part to perform or discharge any of the terms, covenants or agreements contained therein or by reason of this Assignment, except for those arising from the gross negligence or willful misconduct of the Trustee.  Should the Trustee incur any such liability, loss or damage under or by reason of the assignment thereof or in the defense or any such claims or demands, the amount thereof including costs, expenses and reasonable attorneys’ fees shall be secured hereby and the Assignor shall reimburse the Trustee therefor immediately upon demand.

Section 8.Miscellaneous.

(a)This Assignment may be executed in counterparts, each of which, when taken together, shall be construed as one and the same instrument.  To the fullest extent permitted by applicable law, electronically transmitted or facsimile signatures shall constitute original signatures for all purposes hereunder.

(b)The Assignor hereby irrevocably and unconditionally waives any and all right to trial by jury in any action, suit or counterclaim arising with, out of or otherwise relating to this Assignment.

(c)All notices, demands and other communications provided for herein shall be deemed received upon personal delivery or delivery by national overnight delivery service, or three (3) Business Days following deposit in the U.S. mail, postage prepaid, first class registered or certified, to the Assignor or the Trustee at the following addresses:

10

 

		
		
	
The Assignor:
	
America First Multifamily Investors, L.P.

152 West 57th Street 

4th Floor

New York, NY 10019

Attention:  Ken Rogozinski, CIO

Phone: (212) 896-9184

Email: ken.rogozinski@greyco.com

 

and

 

America First Multifamily Investors, L.P. 

Suite 211

14301 FNB Parkway

Omaha, NE 68154

Attention:  Jesse Coury, CFO

Phone: (402) 952-1233

Email: Jesse.Coury@greyco.com

 

	
With a copy to (which copy shall not constitute notice to the Assignor):
	
Conal L. Hession

Kutak Rock LLP

1650 Farnam Street

Omaha, NE  68102

Phone: (402) 346-6000

Email: conal.hession@kutakrock.com

	
If to the Trustee: 
	
U.S. Bank National Association 
100 Wall Street, STE 600
New York, NY 10005
Attention:  James W. Hall                      Phone: (551)427-1335                                                          Email: james.hall2@usbank.com

 

 

(d)Capitalized terms used herein and not defined shall have the meanings ascribed to such terms in the Indenture.

(e)The covenants provided for in this Assignment shall be binding upon the successors and assigns of the parties hereto, and shall inure to the benefit of the Noteholder Representative and the Holders from time to time of the Notes.

(f)This Assignment and all matters arising out of or related to this Assignment shall be governed by the laws of the State of New York, without regard to conflict of laws principles.

(g)Neither this Assignment nor any provision hereof may be amended, modified, waived, discharged or terminated orally, but only by an instrument in writing duly signed by or on behalf of the Assignor or the Trustee.

11

 

Section 9.Term and Termination.  This Assignment shall be a continuing one, and all representations, warranties, covenants, undertakings, obligations, consents, waivers and agreements of the Assignor herein shall survive the date of this Assignment and shall continue in full force and effect until the payment and performance in full of the Notes and the performance in full of the Issuer’s obligations in respect of the Notes and under the Note Documents.  Upon the payment and performance in full of the Notes and the performance in full of the Issuer’s obligations in respect of the Notes and under the Note Documents, and provided there exists no Event of Default under the Note Documents, this Assignment shall terminate.  If an Event of Default shall exist and be then continuing under the Note Document, then this Assignment shall not terminate.  Notwithstanding the foregoing, upon termination of this Assignment, the indemnities contained herein, including the indemnity set forth in Section 7 hereof, shall survive such termination.

[Signatures appear on next page]

 

12

 

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

	
ASSIGNOR:

	
AMERICA FIRST MULTIFAMILY INVESTORS, L.P., a Delaware limited partnership 

	
 
	
 
	
 

	
By:
	
 
	
 

	
Name: 
	
 
	
Jesse Coury

	
Title:
	
 
	
Chief Financial Officer

 

 

 

13

 

SCHEDULE I

LIST OF TEBS SPONSORS, CLASS B CERTIFICATES AND RELATED DOCUMENTS

 

 

				
	
Class B Certificate Series
	
Sponsor Name
	
Date of Operating Agreement
	
TEBS Documents

	
Freddie Mac Multifamily Variable Rate Certificates Series M024

 
	
ATAX TEBS I,

LLC
	
August 25, 2010
	
Bond Exchange, Reimbursement, Pledge and Security Agreement between Freddie Mac and Sponsor dated as of September 1, 2010 and the “Sponsor Documents” defined therein 

 

	
Freddie Mac Multifamily M Certificates Series M-031
	
ATAX TEBS II, LLC
	
July 1, 2014
	
Bond Exchange, Reimbursement, Pledge and Security Agreement between Freddie Mac and Sponsor dated as of July 1, 2014 and the “Sponsor Documents” defined therein

 

	
Freddie Mac Multifamily M Certificates Series M-033
	
ATAX TEBS III, LLC
	
July 1, 2015
	
Bond Exchange, Reimbursement, Pledge and Security Agreement between Freddie Mac and Sponsor dated as of July 1, 2015 and the “Sponsor Documents” defined therein

 

	
Freddie Mac Multifamily M Certificates Series M-045
	
ATAX TEBS IV, LLC
	
July 1, 2018
	
Bond Exchange, Reimbursement, Pledge and Security Agreement between Freddie Mac and Sponsor dated as of August 1, 2018 and the “Sponsor Documents” defined therein

 

 

 

S-1

[Guaranty and Pledge Agreement] 

 

EXHIBIT A

FORM OF ACKNOWLEDGEMENT AND CONSENT

 

_______________________, a limited liability company duly organized and validly existing under the laws of the State of Delaware (the “Company”), the ____________ referred to in the foregoing Limited Guaranty, Pledge of Sole Membership Interests and Security Agreement (the “Assignment”), hereby acknowledges receipt of a copy thereof and agrees to be bound thereby and to comply with the terms thereof insofar as such terms are applicable to it.

The Company also agrees, [if an Event of Default (as defined in the Assignment) shall occur,] to pay to the Trustee all amounts then due and thereafter as they become due to the sole member of the Company, until the Assignment is no longer in force. The Company hereby consents to the admission of the Trustee or the designee or successor or assign of the Trustee as the sole member, if any such party, upon acquiring the Collateral in the form of membership interests, desires to become a substitute sole member, and agrees to provide further written evidence of their consent at any later time if necessary or appropriate to allow or evidence the admission of a substitute sole member pursuant to the applicable provisions of its governing  documents. The Company further agrees that the Trustee will not have any of the obligations of the sole member of the Company unless the Trustee affirmatively elects to undertake such obligations by becoming the sole member in the Company in accordance with the terms of the Assignment.

September 24, 2020

 

[Signature appears on next page]

 

 

 

	
[NAME OF COMPANY], a Delaware limited liability company 

	
By: 
	
 
	
 
	
 
	
, a
	
 
	
, its sole member

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
 
	
 
	
 

	
Name:
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
Title:
	
 
	
 
	
 
	
 

 

 

 

 

 

 

EXHIBIT B

FORM OF ASSIGNMENT OF MEMBERSHIP INTEREST

FOR VALUE RECEIVED, the undersigned 

	
 
	
(a)
	
does hereby sell, assign and transfer to U.S. Bank National Association, as trustee, (i) the full legal and beneficial membership and limited liability company interest in [Name of Company], a Delaware limited liability company (the “Company”) owned by the sole member of the Company (the “Membership Interest”), standing in the name of the undersigned on the books of the Company, together with (ii) all right title and interest of the undersigned in and to the Membership Interest and its membership interest in the Company, whether now or hereafter existing, or now or hereafter acquired, including, but not by way of limitation, (1) its interest in the income, all distributions, repayment of capital contributions, deductions, losses and tax benefits, (2) any and all loans made by the Company to any person or entity, (3) any other sums, payments, fees or other amounts to which the undersigned may be entitled from the Company as a member thereof, (4) the governing documents of the Company, as it may be amended, supplemented and/or restated from time to time, (5) all voting rights and rights to participate in the management of the Company of the undersigned under the governing documents of the Company, as it may be amended, supplemented and/or restated from time to time,  (6) all books and records pertaining to any of the above described property, including, but not limited to, any computer readable memory and any computer hardware or software, (7) any and all options, warrants or rights to acquire additional or other securities if the Company, and (8) all proceeds from the sale, assignment, exchange, transfer or other disposition thereof; and 

	
 
	
(b)
	
does hereby irrevocably constitute and appoint ______________________ as the undersigned’s true and lawful attorney, for it and in its name and stead, to sell, assign and transfer all or any of the Membership Interest, and for that purpose to make and execute all necessary acts of assignment and transfer thereof; and to substitute one or more persons with like full power, hereby ratifying and confirming all that said attorney or substitute or substitutes shall lawfully do by virtue hereof.

Dated: ________________, 20___

	
AMERICA FIRST MULTIFAMILY INVESTORS, L.P., a Delaware limited partnership

	
 
	
 

	
By:
	
 

	
Name:
	
Jesse Coury

	
Title:
	
Chief Financial Officer

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