Document:

Multifamily Note

 Exhibit 10.4 
 MULTIFAMILY NOTE 
  

			
	 US $12,482,000.00
	  	May 8, 2013

 FOR VALUE RECEIVED, the undersigned (“Borrower”) promises to pay
to the order of KEYCORP REAL ESTATE CAPITAL MARKETS, INC., an Ohio corporation (“Lender”), the principal amount of Twelve Million Four Hundred Eighty-Two Thousand and No/100 Dollars (US $12,482,000.00) (the “Mortgage
Loan”), together with interest thereon accruing at the Interest Rate on the unpaid principal balance from the date the Mortgage Loan proceeds are disbursed until fully paid in accordance with the terms hereof and of that certain Multifamily
Loan and Security Agreement dated as of the date hereof, by and between Borrower and Lender (as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time, the “Loan Agreement”). 

 

	1.	 Defined Terms. 

 Capitalized terms used and not specifically defined in this Multifamily Note (this “Note”) have the meanings given to such terms in the Loan Agreement. 

 

	2.	 Repayment. 

 Borrower agrees to pay the principal amount of the Mortgage Loan and interest on the principal amount of the Mortgage Loan from time to time outstanding at the Interest Rate or such other rate or rates
and at the times specified in the Loan Agreement, together with all other amounts due to Lender under the Loan Documents. The outstanding balance of the Mortgage Loan and all accrued and unpaid interest thereon shall be due and payable on the
Maturity Date, together with all other amounts due to Lender under the Loan Documents. 
  

	3.	 Security. 

 The Mortgage Loan evidenced by this Note, together with all other Indebtedness is secured by, among other things, the Security Instrument, the Loan Agreement and the other Loan Documents. All of the
terms, covenants and conditions contained in the Loan Agreement, the Security Instrument and the other Loan Documents are hereby made part of this Note to the same extent and with the same force as if they were fully set forth herein. In the event
of a conflict or inconsistency between the terms of this Note and the Loan Agreement, the terms and provisions of the Loan Agreement shall govern. 
  

	4.	 Acceleration. 

 In accordance with the Loan Agreement, if an Event of Default has occurred and is continuing, the entire unpaid principal balance of the Mortgage Loan, any accrued and unpaid interest, including interest
accruing at the Default Rate, the Prepayment Premium (if applicable), and all other amounts payable under this Note, the Loan Agreement and any other Loan Document shall at once become due and payable, at the option of Lender, without any prior
notice to Borrower, unless applicable law requires otherwise (and in such case, after satisfactory notice has been given). 
  

  

					
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	5.	 Personal Liability. 

 The provisions of Article 3 (Personal Liability) of the Loan Agreement are hereby incorporated by reference into this Note to the same extent and with the same force as if fully set forth herein.

  

	6.	 Governing Law. 

 This Note shall be governed in accordance with the terms and provisions of Section 15.01 (Governing Law; Consent to Jurisdiction and Venue) of the Loan Agreement. 

 

	7.	 Waivers. 

 Presentment, demand for payment, notice of nonpayment and dishonor, protest and notice of protest, notice of acceleration, notice of intent to demand or accelerate payment or maturity, presentment for
payment, notice of nonpayment, grace and diligence in collecting the Indebtedness are waived by Borrower, for and on behalf of itself, Guarantor and Key Principal, and all endorsers and guarantors of this Note and all other third party obligors or
others who may become liable for the payment of all or any part of the Indebtedness. 
  

	8.	 Commercial Purpose. 

 Borrower represents that the Indebtedness is being incurred by Borrower solely for the purpose of carrying on a business or commercial enterprise or activity, and not for agricultural, personal, family or
household purposes. 
  

	9.	 Construction; Joint and Several (or Solidary, as applicable) Liability. 

(a)        Section 15.08 (Construction) of the Loan Agreement is hereby
incorporated herein as if fully set forth in the body of this Note. 

(b)        If more than one Person executes this Note as Borrower, the
obligations of such Person shall be joint and several (solidary instead for purposes of Louisiana law). 
  

	10.	 Notices. 

 All Notices required or permitted to be given by Lender to Borrower pursuant to this Note shall be given in accordance with Section 15.02 (Notice) of the Loan Agreement. 

 

	11.	 Time is of the Essence. 

 Borrower agrees that, with respect to each and every obligation and covenant contained in this Note, time is of the essence. 

  

					
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	12.	 Loan Charges Savings Clause. 

 Borrower agrees to pay an effective rate of interest equal to the sum of the Interest Rate and any additional rate of interest resulting from any other charges of interest or in the nature of interest
paid or to be paid in connection with the Mortgage Loan and any other fees or amounts to be paid by Borrower pursuant to any of the other Loan Documents. Neither this Note, the Loan Agreement nor any of the other Loan Documents shall be construed to
create a contract for the use, forbearance or detention of money requiring payment of interest at a rate greater than the maximum interest rate permitted to be charged under applicable law. It is expressly stipulated and agreed to be the intent of
Borrower and Lender at all times to comply with all applicable laws governing the maximum rate or amount of interest payable on the Indebtedness evidenced by this Note and the other Loan Documents. If any applicable law limiting the amount of
interest or other charges permitted to be collected from Borrower is interpreted so that any interest or other charge or amount provided for in any Loan Document, whether considered separately or together with other charges or amounts provided for
in any other Loan Document, or otherwise charged, taken, reserved or received in connection with the Mortgage Loan, or on acceleration of the maturity of the Mortgage Loan or as a result of any prepayment by Borrower or otherwise, violates that law,
and Borrower is entitled to the benefit of that law, that interest or charge is hereby reduced to the extent necessary to eliminate any such violation. Amounts, if any, previously paid to Lender in excess of the permitted amounts shall be applied by
Lender to reduce the unpaid principal balance of the Mortgage Loan without the payment of any prepayment premium (or, if the Mortgage Loan has been or would thereby be paid in full, shall be refunded to Borrower), and the provisions of the Loan
Agreement and any other Loan Documents immediately shall be deemed reformed and the amounts thereafter collectible under the Loan Agreement and any other Loan Documents reduced, without the necessity of the execution of any new documents, so as to
comply with any applicable law, but so as to permit the recovery of the fullest amount otherwise payable under the Loan Documents. For the purpose of determining whether any applicable law limiting the amount of interest or other charges permitted
to be collected from Borrower has been violated, all Indebtedness that constitutes interest, as well as all other charges made in connection with the Indebtedness that constitute interest, and any amount paid or agreed to be paid to Lender for the
use, forbearance or detention of the Indebtedness, shall be deemed to be allocated and spread ratably over the stated term of the Mortgage Loan. Unless otherwise required by applicable law, such allocation and spreading shall be effected in such a
manner that the rate of interest so computed is uniform throughout the stated term of the Mortgage Loan. 
  

	13.	 WAIVER OF TRIAL BY JURY. 

 TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACH OF BORROWER AND LENDER (A) AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING OUT OF THIS NOTE OR THE RELATIONSHIP BETWEEN THE
PARTIES AS LENDER AND BORROWER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS
SEPARATELY GIVEN BY EACH PARTY, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL. 

  

					
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	14.	 Receipt of Loan Documents. 

 Borrower acknowledges receipt of a copy of each of the Loan Documents. 
  

	15.	 Incorporation of Schedules. 

 The schedules, if any, attached to this Note are incorporated fully into this Note by this reference and each constitutes a substantive part of this Note. 

ATTACHED SCHEDULE. The following Schedule is attached to this Note: 

 ̈        
Schedule1                 Modifications to Note 

[Remainder of Page Intentionally Blank] 

  

					
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 IN WITNESS WHEREOF, Borrower has signed and delivered this Note under
seal (where applicable) or has caused this Note to be signed and delivered under seal (where applicable) by its duly authorized representative. Where applicable law so provides, Borrower intends that this Note shall be deemed to be signed and
delivered as a sealed instrument. 
  

			
	BORROWER:
	
	 CHT ZANESVILLE OH SENIOR LIVING, LLC, a

Delaware limited liability company

		
	By:	 	/s/ Joshua J. Taube
	Name:	 	Joshua J. Taube
	Title:	 	Vice President

 This Note was executed by Borrower in the State of Florida. Accordingly, documentary stamp tax in
the amount of $2,450.00 has been, or will be, paid directly to the Florida Department of Revenue upon execution and delivery of the Note by Borrower. 

  

					
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 PAY TO THE ORDER OF FANNIE MAE 
 WITHOUT RECOURSE. 
  

			
	KEYCORP REAL ESTATE CAPITAL MARKETS, INC., an Ohio corporation
		
	By:	 	/s/ Crystal L. Williams 
	Name:	 	Crystal L. Williams
	Title:	 	Vice President
		
	Date:	 	May 8, 2013

  

					
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	Fannie Mae	 	06-12	  	© 2012 Fannie MaeMultifamily Mortage Assignment Agreement

 Exhibit 10.5 
  

Prepared by, and after recording 
 return to: 
 James J. Schwert, Esquire 

Oppenheimer Wolff & Donnelly LLP 
 Campbell Mithun Tower – Suite 2000 
 222 S. Ninth Street 

Minneapolis, MN 55402-3338 
 MULTIFAMILY MORTGAGE, 
 ASSIGNMENT OF LEASES AND RENTS, 

SECURITY AGREEMENT 
 AND FIXTURE FILING 
 (ILLINOIS) 

THIS SECURITY INSTRUMENT IS NOT TO BE USED FOR 
 MULTIFAMILY PROPERTIES CONTAINING FIVE (5) OR SIX (6) 
 RESIDENTIAL UNITS
IF ANY RESIDENTIAL UNIT 
 IS OWNER-OCCUPIED PROPERTY 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.IL	  	Page 1
	Illinois	 	12-12	  	© 2012 Fannie Mae

 MULTIFAMILY MORTGAGE, 

ASSIGNMENT OF LEASES AND RENTS, 
 SECURITY AGREEMENT AND 
 FIXTURE FILING 

This MULTIFAMILY MORTGAGE, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING (as amended, restated,
replaced, supplemented, or otherwise modified from time to time, the “Security Instrument”) dated as of May 8, 2013, is executed by CHT DECATUR IL SENIOR LIVING, LLC, a limited liability company organized and existing under the
laws of Delaware, as mortgagor (“Borrower”), to and for the benefit of KEYCORP REAL ESTATE CAPITAL MARKETS, INC., a corporation organized and existing under the laws of Ohio, as mortgagee (“Lender”). 

Borrower, in consideration of (a) the loan in the original principal amount of $11,060,000.00 (the “Mortgage
Loan”) evidenced by that certain Multifamily Note dated as of the date of this Security Instrument, executed by Borrower and made payable to the order of Lender, which matures on June 1, 2020 (the “Maturity Date”), and
which shall accrue interest (i) prior to the occurrence of an Event of Default (as defined in this Security Instrument) at a per annum rate of interest equal to three and eighty-one one-hundredths percent (3.81%) (the “Interest
Rate”) and (ii) from and after the Maturity Date or upon the occurrence and during the continuance of an Event of Default at a per annum rate of interest equal to the Interest Rate plus four percent (4.00%) (the “Default
Rate”), (as amended, restated, replaced, supplemented, or otherwise modified from time to time, the “Note”), and (b) that certain Multifamily Loan and Security Agreement dated as of the date of this Security
Instrument, executed by and between Borrower and Lender (as amended, restated, replaced, supplemented or otherwise modified from time to time, the “Loan Agreement”), and to secure to Lender the repayment of the Indebtedness (as
defined in this Security Instrument), and all renewals, extensions and modifications thereof, and the performance of the covenants and agreements of Borrower contained in the Loan Documents (as defined in the Loan Agreement), excluding the
Environmental Indemnity Agreement (as defined in this Security Instrument), irrevocably and unconditionally mortgages, grants, assigns, remises, releases, warrants and conveys to Lender the Mortgaged Property (as defined in this Security
Instrument), including the real property located in the County of Macon, State of Illinois, and described in Exhibit A attached to this Security Instrument and incorporated by reference (the “Land”), to have and to hold
such Mortgaged Property unto Lender and Lender’s successors and assigns, forever; Borrower hereby releasing, relinquishing and waiving, to the fullest extent allowed by law, all rights and benefits, if any, under and by virtue of the homestead
exemption laws of the Property Jurisdiction (as defined in this Security Instrument), if applicable. 
 Borrower
represents and warrants that Borrower is lawfully seized of the Mortgaged Property and has the right, power and authority to mortgage, grant, assign, remise, release, warrant and convey the Mortgaged Property, and that the Mortgaged Property is not
encumbered 

  

					
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by any Lien (as defined in this Security Instrument) other than Permitted Encumbrances (as defined in this Security Instrument). Borrower covenants that Borrower will warrant and defend the title
to the Mortgaged Property against all claims and demands other than Permitted Encumbrances. 
 Borrower and
Lender, by its acceptance hereof, each covenants and agrees as follows: 
  

	1.	 Defined Terms. 

 Capitalized terms used and not specifically defined herein have the meanings given to such terms in the Loan Agreement. All terms used and not specifically defined herein, but which are otherwise defined
by the UCC, shall have the meanings assigned to them by the UCC. The following terms, when used in this Security Instrument, shall have the following meanings: 
 “Condemnation Action” means any action or proceeding, however characterized or named, relating to any condemnation or other taking, or conveyance in lieu thereof, of all or any part of
the Mortgaged Property, whether direct or indirect. 
 “Enforcement Costs” means all expenses and costs,
including reasonable attorneys’ fees and expenses, fees and out-of-pocket expenses of expert witnesses and costs of investigation, incurred by Lender as a result of any Event of Default under the Loan Agreement or in connection with efforts to
collect any amount due under the Loan Documents, or to enforce the provisions of the Loan Agreement or any of the other Loan Documents, including those incurred in post-judgment collection efforts and in any bankruptcy or insolvency proceeding
(including any action for relief from the automatic stay of any bankruptcy proceeding or Foreclosure Event) or judicial or non-judicial foreclosure proceeding, to the extent permitted by law. 

“Environmental Indemnity Agreement” means that certain Environmental Indemnity Agreement dated as of the date of this
Security Instrument, executed by Borrower to and for the benefit of Lender, as the same may be amended, restated, replaced, supplemented, or otherwise modified from time to time. 

“Environmental Laws” has the meaning set forth in the Environmental Indemnity Agreement. 

“Event of Default” has the meaning set forth in the Loan Agreement. 

“Fixtures” means all Goods that are so attached or affixed to the Land or the Improvements as to constitute a fixture
under the laws of the Property Jurisdiction. 
 “Goods” means all of Borrower’s present and hereafter
acquired right, title and interest in all goods which are used now or in the future in connection with the ownership, management, or operation of the Land or the Improvements or are located on the Land or in the Improvements, including inventory;
furniture; furnishings; machinery, equipment, engines, boilers, incinerators, and installed building materials; systems and equipment for the purpose of supplying or 

  

					
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distributing heating, cooling, electricity, gas, water, air, or light; antennas, cable, wiring, and conduits used in connection with radio, television, security, fire prevention, or fire
detection, or otherwise used to carry electronic signals; telephone systems and equipment; elevators and related machinery and equipment; fire detection, prevention and extinguishing systems and apparatus; security and access control systems and
apparatus; plumbing systems; water heaters, ranges, stoves, microwave ovens, refrigerators, dishwashers, garbage disposers, washers, dryers, and other appliances; light fixtures, awnings, storm windows, and storm doors; pictures, screens, blinds,
shades, curtains, and curtain rods; mirrors, cabinets, paneling, rugs, and floor and wall coverings; fences, trees, and plants; swimming pools; exercise equipment; supplies; tools; books and records (whether in written or electronic form); websites,
URLs, blogs, and social network pages; computer equipment (hardware and software); and other tangible personal property which is used now or in the future in connection with the ownership, management, or operation of the Land or the Improvements or
are located on the Land or in the Improvements. 
 “Imposition Deposits” means deposits in an amount sufficient
to accumulate with Lender the entire sum required to pay the Impositions when due. 
 “Impositions” means

 (a)        any water and sewer charges which, if not paid, may result
in a lien on all or any part of the Mortgaged Property; 

(b)        the premiums for fire and other casualty insurance, liability
insurance, rent loss insurance and such other insurance as Lender may require under the Loan Agreement; 

(c)        Taxes; and 

(d)        amounts for other charges and expenses assessed against the Mortgaged
Property which Lender at any time reasonably deems necessary to protect the Mortgaged Property, to prevent the imposition of liens on the Mortgaged Property, or otherwise to protect Lender’s interests, all as reasonably determined from time to
time by Lender. 
 “Improvements” means the buildings, structures, improvements, and alterations now
constructed or at any time in the future constructed or placed upon the Land, including any future replacements, facilities, and additions and other construction on the Land. 
 “Indebtedness” means the principal of, interest on, and all other amounts due at any time under the Note, the Loan Agreement, this Security Instrument or any other Loan Document (other
than the Environmental Indemnity Agreement and Guaranty), including Prepayment Premiums, late charges, interest charged at the Default Rate, and accrued interest as provided in the Loan Agreement and this Security Instrument, advances, costs and
expenses to perform the obligations of Borrower or to protect the Mortgaged Property or the security of this Security Instrument, all other monetary obligations of Borrower under the Loan Documents (other than the Environmental Indemnity Agreement),
including amounts due as a result of any indemnification obligations, and any Enforcement Costs. 

  

					
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 “Land” means the real property described in Exhibit A.

 “Leases” means all present and future leases, subleases, licenses, concessions or grants or other possessory
interests now or hereafter in force, whether oral or written, covering or affecting the Mortgaged Property, or any portion of the Mortgaged Property (including proprietary leases or occupancy agreements if Borrower is a cooperative housing
corporation), and all modifications, extensions or renewals thereof. 
 “Lien” means any claim or charge
against property for payment of a debt or an amount owed for services rendered, including any mortgage, deed of trust, deed to secure debt, security interest, tax lien, any materialman’s or mechanic’s lien, or any lien of a Governmental
Authority, including any lien in connection with the payment of utilities, or any other encumbrance. 
 “Mortgaged
Property” means all of Borrower’s present and hereafter acquired right, title and interest, if any, in and to all of the following: 
 (a)        the Land; 

(b)        the Improvements; 

(c)        the Personalty; 

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

(e)        insurance policies relating to the Mortgaged Property (and any
unearned premiums) and all proceeds paid or to be paid by any insurer of the Land, the Improvements, the Personalty, or any other part of the Mortgaged Property, whether or not Borrower obtained the insurance pursuant to Lender’s requirements;

 (f)        awards, payments and other compensation made or to be made
by any municipal, state or federal authority with respect to the Land, the Improvements, the Personalty, or any other part of the Mortgaged Property, including any awards or settlements resulting from (1) Condemnation Actions, (2) any
damage to the Mortgaged Property caused by governmental action that does not result in a Condemnation Action, or (3) the total or partial taking of the Land, the Improvements, the Personalty, or any other part of the Mortgaged Property under
the power of eminent domain or otherwise and including any conveyance in lieu thereof; 

  

					
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 (g)        contracts, options and
other agreements for the sale of the Land, the Improvements, the Personalty, or any other part of the Mortgaged Property entered into by Borrower now or in the future, including cash or securities deposited to secure performance by parties of their
obligations; 
 (h)        Leases and Lease guaranties, letters of
credit and any other supporting obligation for any of the Leases given in connection with any of the Leases, and all Rents; 
 (i)        earnings, royalties, accounts receivable, issues and profits from the Land, the Improvements or any other part of the Mortgaged Property, and all
undisbursed proceeds of the Mortgage Loan and, if Borrower is a cooperative housing corporation, maintenance charges or assessments payable by shareholders or residents; 

(j)        Imposition Deposits; 

(k)        refunds or rebates of Impositions by any municipal, state or federal
authority or insurance company (other than refunds applicable to periods before the real property tax year in which this Security Instrument is dated); 
 (l)        tenant security deposits; 
 (m)        names under or by which any of the above Mortgaged Property may be operated or known, and all trademarks, trade names, and goodwill relating to any of
the Mortgaged Property; 
 (n)        Collateral Accounts and all
Collateral Account Funds; 
 (o)        products, and all cash and
non-cash proceeds from the conversion, voluntary or involuntary, of any of the above into cash or liquidated claims, and the right to collect such proceeds; and 

(p)        all of Borrower’s right, title and interest in the oil, gas,
minerals, mineral interests, royalties, overriding royalties, production payments, net profit interests and other interests and estates in, under and on the Mortgaged Property and other oil, gas and mineral interests with which any of the foregoing
interests or estates are pooled or unitized. 
 “Permitted Encumbrance” means only the easements, restrictions
and other matters listed in a schedule of exceptions to coverage in the Title Policy and Taxes for the current tax year that are not yet due and payable. 
 “Permitted Equipment Financing” means, with respect to the Mortgaged Property, equipment lease or other purchase money financing incurred in the ordinary course of business for
acquisition of additional or replacement equipment or other personal property or to refinance Permitted Equipment Financing, in an amount not to exceed two percent (2%) of the Loan Amount, less normal outstanding account payable balances.

  

					
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 “Personalty” means all of Borrower’s present and hereafter acquired
right, title and interest in all Goods, accounts, choses of action, chattel paper, documents, general intangibles (including Software), payment intangibles, instruments, investment property, letter of credit rights, supporting obligations, computer
information, source codes, object codes, records and data, all telephone numbers or listings, claims (including claims for indemnity or breach of warranty), deposit accounts and other property or assets of any kind or nature related to the Land or
the Improvements now or in the future, including operating agreements, surveys, plans and specifications and contracts for architectural, engineering and construction services relating to the Land or the Improvements, and all other intangible
property and rights relating to the operation of, or used in connection with, the Land or the Improvements, including all governmental permits relating to any activities on the Land. 

“Prepayment Premium” has the meaning set forth in the Loan Agreement. 

“Property Jurisdiction” means the jurisdiction in which the Land is located. 

“Rents” means all rents (whether from residential or non-residential space), revenues and other income from the Land or
the Improvements, including subsidy payments received from any sources, including payments under any “Housing Assistance Payments Contract” or other rental subsidy agreement (if any), parking fees, laundry and vending machine income and
fees and charges for food, health care and other services provided at the Mortgaged Property, whether now due, past due, or to become due, and tenant security deposits. 
 “Software” means a computer program and any supporting information provided in connection with a transaction relating to the program. The term does not include any computer program that
is included in the definition of Goods. 
 “Taxes” means all taxes, assessments, vault rentals and other
charges, if any, general, special or otherwise, including assessments for schools, public betterments and general or local improvements, which are levied, assessed or imposed by any public authority or quasi-public authority, and which, if not paid,
may become a lien, on the Land or the Improvements or any taxes upon any Loan Document. 
 “Title Policy” has
the meaning set forth in the Loan Agreement. 
 “UCC” means the Uniform Commercial Code in effect in the
Property Jurisdiction, as amended from time to time. 

  

					
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	Illinois	 	12-12	  	© 2012 Fannie Mae

 “UCC Collateral” means any or all of that portion of the Mortgaged Property
in which a security interest may be granted under the UCC and in which Borrower has any present or hereafter acquired right, title or interest. 
  

	2.	 Security Agreement; Fixture Filing. 

(a)        To secure to Lender, the repayment of the Indebtedness, and all
renewals, extensions and modifications thereof, and the performance of the covenants and agreements of Borrower contained in the Loan Documents, Borrower hereby pledges, assigns, and grants to Lender a continuing security interest in the UCC
Collateral. This Security Instrument constitutes a security agreement and a financing statement under the UCC. This Security Instrument also constitutes a financing statement pursuant to the terms of the UCC with respect to any part of the Mortgaged
Property that is or may become a Fixture under applicable law, and will be recorded as a “fixture filing” in accordance with the UCC. Borrower hereby authorizes Lender to file financing statements, continuation statements and financing
statement amendments in such form as Lender may require to perfect or continue the perfection of this security interest without the signature of Borrower. If an Event of Default has occurred and is continuing, Lender shall have the remedies of a
secured party under the UCC or otherwise provided at law or in equity, in addition to all remedies provided by this Security Instrument and in any Loan Document. Lender may exercise any or all of its remedies against the UCC Collateral separately or
together, and in any order, without in any way affecting the availability or validity of Lender’s other remedies. For purposes of the UCC, the debtor is Borrower and the secured party is Lender. The name and address of the debtor and secured
party are set forth after Borrower’s signature below which are the addresses from which information on the security interest may be obtained. 
 (b)        Borrower represents and warrants that: (1) Borrower maintains its chief executive office at the location set forth after Borrower’s signature
below, and Borrower will notify Lender in writing of any change in its chief executive office within five (5) days of such change; (2) Borrower is the record owner of the Mortgaged Property; (3) Borrower’s state of incorporation,
organization, or formation, if applicable, is as set forth on Page 1 of this Security Instrument; (4) Borrower’s exact legal name is as set forth on Page 1 of this Security Instrument; (5) Borrower’s organizational
identification number, if applicable, is as set forth after Borrower’s signature below; (6) Borrower is the owner of the UCC Collateral subject to no liens, charges or encumbrances other than the lien hereof and Permitted Equipment
Financing; (7) except as expressly provided in the Loan Agreement, the UCC Collateral will not be removed from the Mortgaged Property without the consent of Lender, except for replacement in the ordinary course of business; and (8) no
financing statement covering any of the UCC Collateral or any proceeds thereof is on file in any public office except pursuant hereto. 
 (c)        All property of every kind acquired by Borrower after the date of this Security Instrument which by the terms of this Security Instrument shall be
subject to the lien and the security interest created hereby, shall immediately upon the acquisition thereof by Borrower and without further conveyance or assignment become subject to the lien and security interest created

  

					
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	Illinois	 	12-12	  	© 2012 Fannie Mae

 
by this Security Instrument. Nevertheless, Borrower shall execute, acknowledge, deliver and record or file, as appropriate, all and every such further deeds of trust, mortgages, deeds to secure
debt, security agreements, financing statements, assignments and assurances as Lender shall require for accomplishing the purposes of this Security Instrument and to comply with the rerecording requirements of the UCC. 

 

	3.	 Assignment of Leases and Rents; Appointment of Receiver; Lender in Possession. 

(a)        As part of the consideration for the Indebtedness, Borrower absolutely
and unconditionally assigns and transfers to Lender all Leases and Rents. It is the intention of Borrower to establish present, absolute and irrevocable transfers and assignments to Lender of all Leases and Rents and to authorize and empower Lender
to collect and receive all Rents without the necessity of further action on the part of Borrower. Borrower and Lender intend the assignments of Leases and Rents to be effective immediately and to constitute absolute present assignments, and not
assignments for additional security only. Only for purposes of giving effect to these absolute assignments of Leases and Rents, and for no other purpose, the Leases and Rents shall not be deemed to be a part of the Mortgaged Property. However, if
these present, absolute and unconditional assignments of Leases and Rents are not enforceable by their terms under the laws of the Property Jurisdiction, then each of the Leases and Rents shall be included as part of the Mortgaged Property, and it
is the intention of Borrower, in such circumstance, that this Security Instrument create and perfect a lien on each of the Leases and Rents in favor of Lender, which liens shall be effective as of the date of this Security Instrument. 

(b)        Until an Event of Default has occurred and is continuing, but subject
to the limitations set forth in the Loan Documents, Borrower shall have a revocable license to exercise all rights, power and authority granted to Borrower under the Leases (including the right, power and authority to modify the terms of any Lease,
extend or terminate any Lease, or enter into new Leases, subject to the limitations set forth in the Loan Documents), and to collect and receive all Rents, to hold all Rents in trust for the benefit of Lender, and to apply all Rents to pay the
Monthly Debt Service Payments and the other amounts then due and payable under the other Loan Documents, including Imposition Deposits, and to pay the current costs and expenses of managing, operating and maintaining the Mortgaged Property,
including utilities and Impositions (to the extent not included in Imposition Deposits), tenant improvements and other capital expenditures. So long as no Event of Default has occurred and is continuing (and no event which, with the giving of notice
or the passage of time, or both, would constitute an Event of Default has occurred and is continuing), the Rents remaining after application pursuant to the preceding sentence may be retained and distributed by Borrower free and clear of, and
released from, Lender’s rights with respect to Rents under this Security Instrument. 

(c)        If an Event of Default has occurred and is continuing, without the
necessity of Lender entering upon and taking and maintaining control of the Mortgaged Property directly, by a receiver, or by any other manner or proceeding permitted by the laws of the Property Jurisdiction, the revocable license granted to
Borrower pursuant to Section 3(b) shall 

  

					
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automatically terminate, and Lender shall immediately have all rights, powers and authority granted to Borrower under any Lease (including the right, power and authority to modify the terms of
any such Lease, or extend or terminate any such Lease) and, without notice, Lender shall be entitled to all Rents as they become due and payable, including Rents then due and unpaid. During the continuance of an Event of Default, Borrower authorizes
Lender to collect, sue for and compromise Rents and directs each tenant of the Mortgaged Property to pay all Rents to, or as directed by, Lender, and Borrower shall, upon Borrower’s receipt of any Rents from any sources, pay the total amount of
such receipts to Lender. Although the foregoing rights of Lender are self-effecting, at any time during the continuance of an Event of Default, Lender may make demand for all Rents, and Lender may give, and Borrower hereby irrevocably authorizes
Lender to give, notice to all tenants of the Mortgaged Property instructing them to pay all Rents to Lender. No tenant shall be obligated to inquire further as to the occurrence or continuance of an Event of Default, and no tenant shall be obligated
to pay to Borrower any amounts that are actually paid to Lender in response to such a notice. Any such notice by Lender shall be delivered to each tenant personally, by mail or by delivering such demand to each rental unit. 

(d)        If an Event of Default has occurred and is continuing, Lender may,
regardless of the adequacy of Lender’s security or the solvency of Borrower, and even in the absence of waste, enter upon, take and maintain full control of the Mortgaged Property, and may exclude Borrower and its agents and employees
therefrom, in order to perform all acts that Lender, in its discretion, determines to be necessary or desirable for the operation and maintenance of the Mortgaged Property, including the execution, cancellation or modification of Leases, the
collection of all Rents (including through use of a lockbox, at Lender’s election), the making of repairs to the Mortgaged Property and the execution or termination of contracts providing for the management, operation or maintenance of the
Mortgaged Property, for the purposes of enforcing this assignment of Rents, protecting the Mortgaged Property or the security of this Security Instrument and the Mortgage Loan, or for such other purposes as Lender in its discretion may deem
necessary or desirable. 
 (e)        Notwithstanding any other right
provided Lender under this Security Instrument or any other Loan Document, if an Event of Default has occurred and is continuing, and regardless of the adequacy of Lender’s security or Borrower’s solvency, and without the necessity of
giving prior notice (oral or written) to Borrower, Lender may apply to any court having jurisdiction for the appointment of a receiver for the Mortgaged Property to take any or all of the actions set forth in Section 3. If Lender elects to seek
the appointment of a receiver for the Mortgaged Property at any time after an Event of Default has occurred and is continuing, Borrower, by its execution of this Security Instrument, expressly consents to the appointment of such receiver, including
the appointment of a receiver ex parte, if permitted by applicable law. Borrower consents to shortened time consideration of a motion to appoint a receiver. Lender or the receiver, as applicable, shall be entitled to receive a reasonable fee for
managing the Mortgaged Property and such fee shall become an additional part of the Indebtedness. Immediately upon appointment of a receiver or Lender’s entry upon and taking possession and control of the Mortgaged Property, possession of the
Mortgaged Property and all documents, 

  

					
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	Illinois	 	12-12	  	© 2012 Fannie Mae

 
records (including records on electronic or magnetic media), accounts, surveys, plans, and specifications relating to the Mortgaged Property, and all security deposits and prepaid Rents, shall be
surrendered to Lender or the receiver, as applicable. If Lender or receiver takes possession and control of the Mortgaged Property, Lender or receiver may exclude Borrower and its representatives from the Mortgaged Property. 

(f)        The acceptance by Lender of the assignments of the Leases and Rents
pursuant to this Section 3 shall not at any time or in any event obligate Lender to take any action under any Loan Document or to expend any money or to incur any expense. Lender shall not be liable in any way for any injury or damage to person
or property sustained by any Person in, on or about the Mortgaged Property. Prior to Lender’s actual entry upon and taking possession and control of the Land and Improvements, Lender shall not be: 

(1)        obligated to perform any of the terms, covenants and
conditions contained in any Lease (or otherwise have any obligation with respect to any Lease); 

(2)        obligated to appear in or defend any action or
proceeding relating to any Lease or the Mortgaged Property; or 

(3)        responsible for the operation, control, care,
management or repair of the Mortgaged Property or any portion of the Mortgaged Property. 
 The execution of this Security
Instrument shall constitute conclusive evidence that all responsibility for the operation, control, care, management and repair of the Mortgaged Property is and shall be that of Borrower, prior to such actual entry and taking possession and control
by Lender of the Land and Improvements. 
 (g)        Lender shall be
liable to account only to Borrower and only for Rents actually received by Lender. Lender shall not be liable to Borrower, anyone claiming under or through Borrower or anyone having an interest in the Mortgaged Property by reason of any act or
omission of Lender under this Section 3, and Borrower hereby releases and discharges Lender from any such liability to the fullest extent permitted by law, provided that Lender shall not be released from liability that occurs as a result of
Lender’s gross negligence or willful misconduct as determined by a court of competent jurisdiction pursuant to a final, non-appealable court order. If the Rents are not sufficient to meet the costs of taking control of and managing the
Mortgaged Property and collecting the Rents, any funds expended by Lender for such purposes shall be added to, and become a part of, the principal balance of the Indebtedness, be immediately due and payable, and bear interest at the Default Rate
from the date of disbursement until fully paid. Any entering upon and taking control of the Mortgaged Property by Lender or the receiver, and any application of Rents as provided in this Security Instrument, shall not cure or waive any Event of
Default or invalidate any other right or remedy of Lender under applicable law or provided for in this Security Instrument or any Loan Document. 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.IL	  	Page 10
	Illinois	 	12-12	  	© 2012 Fannie Mae

	4.	 Protection of Lender’s Security. 

(a)        Advances, disbursements and expenditures made by Lender for the
following purposes, whether before and during a foreclosure, and at any time prior to sale, and, where applicable, after sale, and during the pendency of any related proceedings, for the following purposes, shall, in addition to those otherwise
authorized by this Security Instrument, constitute “Protective Advances”: 

(1)        all advances by Lender in accordance with the terms of
this Security Instrument to: (A) preserve or maintain, repair, restore or rebuild the improvements upon the Mortgaged Property; (B) preserve the lien of this Security Instrument or the priority thereof; or (C) enforce this Security
Instrument, as referred to in Subsection (b)(5) of Section 5/15-1302 of the Illinois Mortgage Foreclosure Law, 735 ILCS 5/15-1101 et seq., as from
time to time amended (the “Act”); 

(2)        payments by Lender of: (A) when due, installments
of principal, interest or other obligations in accordance with the terms of any prior lien or encumbrance; (B) when due, installments of real estate taxes and assessments, general and special and all other taxes and assessments of any kind or
nature whatsoever which are assessed or imposed upon the mortgaged real estate or any part thereof; (C) other obligations authorized by this Security Instrument; or (D) with court approval, any other amounts in connection with other liens,
encumbrances or interests reasonably necessary to preserve the status of title to the Mortgaged Property, as referred to in Section 5/15-1505 of the Act; 

(3)        advances by Lender in settlement or compromise of any
claims asserted by claimants under any prior liens; 

(4)        reasonable attorneys’ fees and other costs
incurred: (A) in connection with the foreclosure of this Security Instrument as referred to in Section 5/15-1504(d)(2) and 5/15-1510 of the Act; (B) in
connection with any action, suit or proceeding brought by or against Lender for the enforcement of this Security Instrument or arising from the interest of Lender hereunder or under any of the other Loan Documents; or (C) in the preparation for
the commencement or defense of any such foreclosure or other action; 

(5)        Lender’s fees and costs, including reasonable
attorneys’ fees, arising between the entry of judgment of foreclosure and the confirmation hearing as referred to in Subsection (b)(1) of Section 5/15-1508 of the Act; 

(6)        advances of any amount required to make up a
deficiency in deposits for installments of taxes and assessments and insurance premiums as may be authorized by this Security Instrument; 

  

					
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	Illinois	 	12-12	  	© 2012 Fannie Mae

 (7)        expenses
deductible from proceeds of sale as referred to in Subsections (a) and (b) of Section 5/15-1512 of the Act; and 

(8)        expenses incurred and expenditures made by Lender for
any one (1) or more of the following: (A) premiums for casualty and liability insurance paid by Lender whether or not Lender or a receiver is in possession, if reasonably required, in reasonable amounts, and all renewals thereof, without
regard to the limitation to maintaining of existing insurance in effect at the time any receiver or mortgagee takes possession of the Mortgaged Property imposed by Subsection (c)(1) of
Section 5/15-1704 of the Act; (B) repair or restoration of damage or destruction in excess of available insurance proceeds or condemnation awards; (C) payments required or deemed by Lender to be
for the benefit of the Mortgaged Property under any grant or declaration of easement, easement agreement, agreement with any adjoining land owners or instruments creating covenants or restrictions for the benefit of or affecting the Mortgaged
Property; (D) shared or common expense assessments payable to any association or corporation in which the owner of the mortgaged real estate is a member in any way affecting the Mortgaged Property; (E) pursuant to any lease or other
agreement for occupancy of the mortgaged real estate. 
 (b)        All
Protective Advances shall be so much additional Indebtedness, and shall become immediately due and payable without notice and with interest thereon from the date of the advance until paid at the Default Rate. 

(c)        This Security Instrument shall be a lien for all Protective Advances
as to subsequent purchasers and judgment creditors from the time this Security Instrument is recorded pursuant to Subsection (b)(5) of Section 5/15-1302 of the Act. 

(d)        All Protective Advances shall, except to the extent, if any, that any
of the same is clearly contrary to or inconsistent with the provisions of the Act, apply to and be included in the: 
 (1)        determination of the amount of Indebtedness at any time; 

(2)        indebtedness found due and owing to Lender in the
judgment of foreclosure and any subsequent supplemental judgments, orders, adjudications or findings by the court of any additional indebtedness becoming due after such entry of judgment, it being agreed that in any foreclosure judgment, the court
may reserve jurisdiction for such purpose; 

(3)        determination of amounts deductible from sale proceeds
pursuant to Section 5/15-1512 of the Act; 

(4)        application of income in the hands of any receiver or
mortgagee in possession; and 
 (5)        computation
of any deficiency judgment pursuant to Subsections (b)(2) and (e) of Section 5/15-1508 and Section 5/15-1511 of the Act. 

  

					
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	Illinois	 	12-12	  	© 2012 Fannie Mae

	5.	 Default; Acceleration; Remedies. 

 (a)        If an Event of Default has occurred and is continuing, Lender, at its option, may declare the Indebtedness to be immediately due and payable without
further demand, and may either with or without entry or taking possession as herein provided or otherwise, proceed by any action at law or suit in equity or any other appropriate proceedings, whether for the specific performance of any agreement
contained herein, or for an injunction against the violation of any of the terms hereof, or in aid of the exercise of any power granted hereby or by law (1) to enforce payment of the Mortgage Loan; (2) to foreclose this Security Instrument
judicially or non-judicially; (3) to enforce or exercise any right under any Loan Document; and (4) to pursue any one (1) or more other remedies provided in this Security Instrument or in any other Loan Document or otherwise afforded
by applicable law. Each right and remedy provided in this Security Instrument or any other Loan Document is distinct from all other rights or remedies under this Security Instrument or any other Loan Document or otherwise afforded by applicable law,
and each shall be cumulative and may be exercised concurrently, independently, or successively, in any order. Borrower has the right to bring an action to assert the nonexistence of an Event of Default or any other defense of Borrower to
acceleration and sale. 
 (b)        In connection with any sale made
under or by virtue of this Security Instrument, the whole of the Mortgaged Property may be sold in one (1) parcel as an entirety or in separate lots or parcels at the same or different times, all as Lender may determine in its sole discretion.
Lender shall have the right to become the purchaser at any such sale. In the event of any such sale, the outstanding principal amount of the Mortgage Loan and the other Indebtedness, if not previously due, shall be and become immediately due and
payable without demand or notice of any kind. If the Mortgaged Property is sold for an amount less than the amount outstanding under the Indebtedness, the deficiency shall be determined by the purchase price at the sale or sales. To the extent not
prohibited by applicable law, Borrower waives all rights, claims, and defenses with respect to Lender’s ability to obtain a deficiency judgment. Borrower acknowledges that the Mortgaged Property does not constitute agricultural real estate, as
defined in Section 5/15-1201 of the Act, or residential real estate, as defined in Section 5/15-1219 of the Act. 

(c)        Borrower acknowledges and agrees that the proceeds of any sale shall
be applied as determined by Lender unless otherwise required by applicable law. 

(d)        In connection with the exercise of Lender’s rights and remedies
under this Security Instrument and any other Loan Document, there shall be allowed and included as Indebtedness: (1) all expenditures and expenses authorized by applicable law and all other expenditures and expenses which may be paid or
incurred by or on behalf of Lender for reasonable legal fees, appraisal fees, outlays for documentary and expert evidence, stenographic 

  

					
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	Illinois	 	12-12	  	© 2012 Fannie Mae

 
charges and publication costs; (2) all expenses of any environmental site assessments, environmental audits, environmental remediation costs, appraisals, surveys, engineering studies,
wetlands delineations, flood plain studies, and any other similar testing or investigation deemed necessary or advisable by Lender incurred in preparation for, contemplation of or in connection with the exercise of Lender’s rights and remedies
under the Loan Documents; and (3) costs (which may be reasonably estimated as to items to be expended in connection with the exercise of Lender’s rights and remedies under the Loan Documents) of procuring all abstracts of title, title
searches and examinations, title insurance policies, and similar data and assurance with respect to title as Lender may deem reasonably necessary either to prosecute any suit or to evidence the true conditions of the title to or the value of the
Mortgaged Property to bidders at any sale which may be held in connection with the exercise of Lender’s rights and remedies under the Loan Documents. All expenditures and expenses of the nature mentioned in this Section 5, and such other
expenses and fees as may be incurred in the protection of the Mortgaged Property and rents and income therefrom and the maintenance of the lien of this Security Instrument, including the fees of any attorney employed by Lender in any litigation or
proceedings affecting this Security Instrument, the Note, the other Loan Documents, or the Mortgaged Property, including bankruptcy proceedings, any Foreclosure Event, or in preparation of the commencement or defense of any proceedings or threatened
suit or proceeding, or otherwise in dealing specifically therewith, shall be so much additional Indebtedness and shall be immediately due and payable by Borrower, with interest thereon at the Default Rate until paid. Without limiting the generality
of the foregoing, all expenses incurred by Lender which are of the type referred to in the Act, whether incurred before or after any decree or judgment of foreclosure, and whether or not enumerated in this Security Instrument, shall be added to the
Indebtedness and/or by any judgment of foreclosure. 
 (e)        Any
action taken by Lender pursuant to the provisions of this Section 5 shall comply with the laws of the Property Jurisdiction including the Act. Such applicable laws shall take precedence over the provisions of this Section 5, but shall not
invalidate or render unenforceable any other provision of any Loan Document that can be construed in a manner consistent with any applicable law. If any provision of this Security Instrument shall grant to Lender (including Lender acting as a
mortgagee-in-possession), or a receiver appointed pursuant to the provisions of this Security Instrument any powers, rights or remedies prior to, upon, during the continuance of or following an Event of Default that are more limited than the powers,
rights, or remedies that would otherwise be vested in such party under any applicable law in the absence of said provision, such party shall be vested with the powers, rights, and remedies granted in such applicable law to the full extent permitted
by law. 
  

	6.	 Waiver of Statute of Limitations and Marshaling. 

Borrower hereby waives the right to assert any statute of limitations as a bar to the enforcement of the lien of this
Security Instrument or to any action brought to enforce any Loan Document. Notwithstanding the existence of any other security interests in the Mortgaged Property held by Lender or by any other party, Lender shall have the right to determine the
order 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.IL	  	Page 14
	Illinois	 	12-12	  	© 2012 Fannie Mae

 
in which any or all of the Mortgaged Property shall be subjected to the remedies provided in this Security Instrument and/or any other Loan Document or by applicable law. Lender shall have the
right to determine the order in which any or all portions of the Indebtedness are satisfied from the proceeds realized upon the exercise of such remedies. Borrower, for itself and all who may claim by, through or under it, and any party who now or
in the future acquires a security interest in the Mortgaged Property and who has actual or constructive notice of this Security Instrument, waives any and all right to require the marshaling of assets or to require that any of the Mortgaged Property
be sold in the inverse order of alienation or that any of the Mortgaged Property be sold in parcels (at the same time or different times) in connection with the exercise of any of the remedies provided in this Security Instrument or any other Loan
Document, or afforded by applicable law. 
  

	7.	 Waiver of Redemption; Rights of Tenants. 

(a)        Borrower hereby covenants and agrees that it will not at any time
apply for, insist upon, plead, avail itself, or in any manner claim or take any advantage of, any appraisement, stay, exemption or extension law or any so-called “Moratorium Law” now or at any time hereafter enacted or in force in order to
prevent or hinder the enforcement or foreclosure of this Security Instrument. Without limiting the foregoing: 
 (1)        Borrower, for itself and all Persons who may claim by, through or under Borrower, hereby expressly waives any so-called “Moratorium Law” and
any and all rights of reinstatement and redemption, if any, under any order or decree of foreclosure of this Security Instrument, it being the intent hereof that any and all such “Moratorium Laws”, and all rights of reinstatement and
redemption of Borrower and of all other Persons claiming by, through or under Borrower are and shall be deemed to be hereby waived to the fullest extent permitted by the laws of the Property Jurisdiction; 

(2)        Borrower shall not invoke or utilize any such law or
laws or otherwise hinder, delay or impede the execution of any right, power remedy herein or otherwise granted or delegated to Lender but will suffer and permit the execution of every such right, power and remedy as though no such law or laws had
been made or enacted; and 
 (3)        if Borrower is a
trust, Borrower represents that the provisions of this Section 7 (including the waiver of reinstatement and redemption rights) were made at the express direction of Borrower’s beneficiaries and the persons having the power of direction
over Borrower, and are made on behalf of the trust estate of Borrower and all beneficiaries of Borrower, as well as all other persons mentioned above. 
 (b)        Lender shall have the right and option to commence a civil action to foreclose this Security Instrument and to obtain a decree of foreclosure and sale
subject to the rights of any tenant or tenants of the Mortgaged Property having an interest in the Mortgaged Property prior to that of Lender. The failure to join any such tenant or tenants of the Mortgaged Property as party

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.IL	  	Page 15
	Illinois	 	12-12	  	© 2012 Fannie Mae

 
defendant or defendants in any such civil action or the failure of any decree of foreclosure and sale to foreclose their rights shall not be asserted by Borrower as a defense in any civil action
instituted to collect the Indebtedness, or any part thereof or any deficiency remaining unpaid after foreclosure and sale of the Mortgaged Property, any statute or rule of law at any time existing to the contrary notwithstanding. 

 

	8.	 Notice. 

 (a)      All notices under this Security Instrument shall be: 
   (1)      in writing, and shall be (A) delivered, in person, (B) mailed, postage prepaid, either by registered or certified delivery, return receipt
requested, or (C) sent by overnight express courier; 

  (2)      addressed to the intended recipient at its respective
address set forth at the end of this Security Instrument; and 

  (3)      deemed given on the earlier to occur of: 

  (A)        the date when the notice is received by
the addressee; or 
   (B)        if the
recipient refuses or rejects delivery, the date on which the notice is so refused or rejected, as conclusively established by the records of the United States Postal Service or such express courier service. 

(b)      Any party to this Security Instrument may change the address to which notices
intended for it are to be directed by means of notice given to the other party in accordance with this Section 8. 
 (c)      Any required notice under this Security Instrument which does not specify how notices are to be given shall be given in accordance with this Section 8.

  

	9.	 Mortgagee-in-Possession. 

 Borrower acknowledges and agrees that the exercise by Lender of any of the rights conferred in this Security Instrument shall not be construed to make Lender a mortgagee-in-possession of the Mortgaged
Property so long as Lender has not itself entered into actual possession of the Land and Improvements. 
  

	10.	 Release. 

 Upon payment in full of the Indebtedness, Lender shall cause the release of this Security Instrument and Borrower shall pay Lender’s costs incurred in connection with such release. 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.IL	  	Page 16
	Illinois	 	12-12	  	© 2012 Fannie Mae

	11.	 Governing Law; Consent to Jurisdiction and Venue. 

This Security Instrument shall be governed by the laws of the Property Jurisdiction without giving effect to any choice
of law provisions thereof that would result in the application of the laws of another jurisdiction. Borrower agrees that any controversy arising under or in relation to this Security Instrument shall be litigated exclusively in the Property
Jurisdiction. The state and federal courts and authorities with jurisdiction in the Property Jurisdiction shall have exclusive jurisdiction over all controversies that arise under or in relation to any security for the Indebtedness. Borrower
irrevocably consents to service, jurisdiction, and venue of such courts for any such litigation and waives any other venue to which it might be entitled by virtue of domicile, habitual residence or otherwise. 

 

	12.	 Miscellaneous Provisions. 

 (a)      This Security Instrument shall bind, and the rights granted by this Security Instrument shall benefit, the successors and assigns of Lender. This Security Instrument
shall bind, and the obligations granted by this Security Instrument shall inure to, any permitted successors and assigns of Borrower under the Loan Agreement. If more than one (1) person or entity signs this Security Instrument as Borrower, the
obligations of such persons and entities shall be joint and several. The relationship between Lender and Borrower shall be solely that of creditor and debtor, respectively, and nothing contained in this Security Instrument shall create any other
relationship between Lender and Borrower. No creditor of any party to this Security Instrument and no other person shall be a third party beneficiary of this Security Instrument or any other Loan Document. 

(b)      The invalidity or unenforceability of any provision of this Security Instrument or
any other Loan Document shall not affect the validity or enforceability of any other provision of this Security Instrument or of any other Loan Document, all of which shall remain in full force and effect. This Security Instrument contains the
complete and entire agreement among the parties as to the matters covered, rights granted and the obligations assumed in this Security Instrument. This Security Instrument may not be amended or modified except by written agreement signed by the
parties hereto. 
 (c)      The following rules of construction shall apply to
this Security Instrument: 
   (1)        The
captions and headings of the sections of this Security Instrument are for convenience only and shall be disregarded in construing this Security Instrument. 

  (2)        Any reference in this Security Instrument
to an “Exhibit” or “Schedule” or a “Section” or an “Article” shall, unless otherwise explicitly provided, be construed as referring, respectively, to an exhibit or schedule attached to this Security Instrument
or to a Section or Article of this Security Instrument. 

  

					
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	Illinois	 	12-12	  	© 2012 Fannie Mae

 (3)        Any
reference in this Security Instrument to a statute or regulation shall be construed as referring to that statute or regulation as amended from time to time. 

(4)        Use of the singular in this Security Instrument
includes the plural and use of the plural includes the singular. 

(5)        As used in this Security Instrument, the term
“including” means “including, but not limited to” or “including, without limitation,” and is for example only, and not a limitation. 

(6)        Whenever Borrower’s knowledge is implicated in
this Security Instrument or the phrase “to Borrower’s knowledge” or a similar phrase is used in this Security Instrument, Borrower’s knowledge or such phrase(s) shall be interpreted to mean to the best of Borrower’s
knowledge after reasonable and diligent inquiry and investigation. 

(7)        Unless otherwise provided in this Security Instrument,
if Lender’s approval, designation, determination, selection, estimate, action or decision is required, permitted or contemplated hereunder, such approval, designation, determination, selection, estimate, action or decision shall be made in
Lender’s sole and absolute discretion. 

(8)        All references in this Security Instrument to a
separate instrument or agreement shall include such instrument or agreement as the same may be amended or supplemented from time to time pursuant to the applicable provisions thereof. 

(9)        “Lender may” shall mean at Lender’s
discretion, but shall not be an obligation. 
  

	13.	 Time is of the Essence. 

 Borrower agrees that, with respect to each and every obligation and covenant contained in this Security Instrument and the other Loan Documents, time is of the essence. 

 

	14.	 WAIVER OF TRIAL BY JURY. 

 TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH OF BORROWER AND LENDER (BY ITS ACCEPTANCE HEREOF) (A) COVENANTS AND AGREES NOT TO ELECT A TRIAL BY JURY WITH RESPECT TO ANY ISSUE ARISING
OUT OF THIS SECURITY INSTRUMENT OR THE RELATIONSHIP BETWEEN THE PARTIES AS BORROWER AND LENDER THAT IS TRIABLE OF RIGHT BY A JURY AND (B) WAIVES ANY RIGHT TO TRIAL BY JURY WITH RESPECT TO SUCH ISSUE TO THE EXTENT THAT ANY SUCH RIGHT EXISTS NOW
OR IN THE FUTURE. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS SEPARATELY GIVEN BY EACH OF BORROWER AND LENDER, KNOWINGLY AND VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL. 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.IL	  	Page 18
	Illinois	 	12-12	  	© 2012 Fannie Mae

 ATTACHED EXHIBITS. The following Exhibits are attached to this
Security Instrument and incorporated fully herein by reference: 
  

					
			
	 |X|
	 	 Exhibit A
	 	Description of the Land (required)
			
	 |X|
	 	 Exhibit B
	 	Modifications to Security Instrument (Seniors Housing)
			
	 |X|
	 	 Exhibit C
	 	Modifications to Security Instrument (Cross-Default and Cross-Collateralization: Multi-Note)
			
	 |X|
	 	 Exhibit D
	 	Borrower Projects

 [Remainder of Page Intentionally Blank] 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.IL	  	Page 19
	Illinois	 	12-12	  	© 2012 Fannie Mae

 IN WITNESS WHEREOF, Borrower has signed and delivered this Security
Instrument under seal (where applicable) or has caused this Security Instrument to be signed and delivered by its duly authorized representative under seal (where applicable). Where applicable law so provides, Borrower intends that this Security
Instrument shall be deemed to be signed and delivered as a sealed instrument. 
  

	
	 BORROWER:

	
	 CHT DECATUR IL SENIOR LIVING, LLC, a Delaware limited liability company

 
 By:       /s/ Joshua J. Taube

Name:  Joshua J. Taube

Title:    Vice President

	
	 The name, chief executive office and organizational identification number of Borrower (as Debtor under any applicable Uniform Commercial
Code) are:
 Debtor Name/Record Owner: CHT Decatur IL Senior Living, LLC
 Debtor Chief Executive Office Address:
 c/o Healthcare Properties, Inc.

CNL Center at City Commons
 450 South Orange
Avenue, Suite 1200
 Orlando, Florida 32801
 Debtor Organizational ID Number: 5234656

	
	 The name and chief executive office of Lender (as Secured Party) are:
 Secured Party Name: KeyCorp Real Estate Capital Markets, Inc.
 Secured Party Chief Executive Office
Address:
 11501 Outlook Street, Suite 300
 Overland Park, Kansas 66211
 Mailcode: KS-01-11-0501

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.IL	  	Page S-1
	Illinois	 	12-12	  	© 2012 Fannie Mae

 STATE OF FLORIDA 
 COUNTY OF ORANGE 
 The foregoing instrument was acknowledged before me this 15th
day of April, 2013 by Joshua J. Taube, the Vice President of CHT DECATUR IL SENIOR LIVING, LLC, a Delaware limited liability company, on behalf of the limited liability company. 

/s/ Cathleen A. Coffey 
 Notary Public 
 (SEAL) 

Printed Name: Cathleen A. Coffey 
 My Commission Expires: September 24, 2013 

  

					
	Fannie Mae Multifamily Security Instrument	 	Form 6025.IL	  	S-2
	Illinois	 	12-12	  	© 2012 Fannie Mae

 EXHIBIT A 
 DESCRIPTION OF THE LAND 
 (Intentionally Omitted) 

EXHIBIT B 
 MODIFICATIONS TO SECURITY INSTRUMENT 
 (Seniors Housing) 

(Intentionally Omitted) 
 EXHIBIT C 
 MODIFICATIONS TO SECURITY INSTRUMENT 

(Cross-Default and Cross-Collateralization: Multi-Note) 
 (Intentionally Omitted) 
 EXHIBIT D 

TO 

MODIFICATIONS TO MULTIFAMILY SECURITY INSTRUMENT 
 (Cross-Default and Cross-Collateralization: Multi-Note) 
 (Intentionally
Omitted) 

  

					
	Modifications to Security Instrument (Cross-Default and Cross-Collateralization: Multi-Note)	 	Form 6305	  	
	Fannie Mae	 	12-12	  	© 2012 Fannie Mae

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