Document:

a101loanagreement

                                                              EXHIBIT 10.1           MULTIFAMILY LOAN AND SECURITY AGREEMENT                          (NON-RECOURSE)                           BY AND BETWEEN                         SIR JEFFERSON, LLC, a                    Delaware limited liability company                                  AND              JONES LANG LASALLE MULTIFAMILY, LLC, a                    Delaware limited liability company                             DATED AS  OF                          SEPTEMBER 20, 2019    @)  Fannie Mae- 

 

                                TABLE OF CONTENTS    ARTICLE 1-  DEFINITIONS; SUMMARY OF MORTGAGE LOAN TERMS ................................. 1     SECTION 1.01  DEFINED TERMS ............................................................................................................ 1     SECTION 1.02  SCHEDULES, EXHIBITS, AND ATTACHMENTS lNCORPORATED ...................................... 1   ARTICLE 2 - GENERAL MORTGAGE LOAN TERMS ...................................................................... 2     SECTION 2.01  MORTGAGE LOAN ORIGINATION AND  SECURITY ......................................................... 2       (a)   Making of Mortgage Loan ......................................................................................................... 2       (b)   Security for Mortgage Loan ...................................................................................................... 2       ( c)  Protective Advances .................................................................................................................. 2     SECTION 2.02  PAYMENTS ON MORTGAGE LOAN ................................................................................. 2       (a)   Debt Service Payments .............................................................................................................. 2       (b)   Capitalization of Accrued But Unpaid Interest ......................................................................... 3       ( c)  Late Charges .............................................................................................................................. 3       (d)   Default Rate ............................................................................................................................... 4       ( e) Address for Payments ................................................................................................................ 5       (f)  Application of Payments ........................................................................................................... 5    SECTION 2.03   LOCKOUT/PREPAYMENT ............................................................................................... 6       (a)  Prepayment; Prepayment Lockout; Prepayment Premium ........................................................ 6      (b)   Voluntary Prepayment in Full ................................................................................................... 6      (c)   Acceleration of Mortgage Loan ................................................................................................. 7      ( d)  Application of Collateral ........................................................................................................... 7      (e)   Casualty and Condemnation ...................................................................................................... 7      (f)   No Effect on Payment Obligations ............................................................................................ 8      (g)   Loss Resulting from Prepayment .............................................................................................. 8  ARTICLE 3 -  PERSONAL LIABILITY .................................................................................................. 8     SECTION 3.01  NON-RECOURSE MORTGAGE LOAN; EXCEPTIONS ........................................................ 8    SECTION 3.02  PERSONAL LIABILITY OF BORROWER (EXCEPTIONS TO NON-RECOURSE PROVISION) 9      (a)   Personal Liability Based on Lender's Loss ............................................................................... 9      (b)   Full Personal Liability for Mortgage Loan .............................................................................. 10    SECTION 3.03  PERSONAL LIABILITY FOR INDEMNITY OBLIGATIONS ................................................ 10    SECTION 3.04  LENDER'S RIGHT TO FOREGO RIGHTS AGAINST MORTGAGED PROPERTY ................. 11  ARTICLE 4-BORROWER STATUS ................................................................................................... 11    SECTION 4.01  REPRESENTATIONS AND WARRANTIES ....................................................................... 11      (a)   Due Organization and Qualification; Organizational Agreements .......................................... 11      (b)   Location ................................................................................................................................... 12      (c)   Power and Authority ................................................................................................................ 12      ( d)  Due Authorization ................................................................................................................... 12      (e)   Valid and Binding Obligations ................................................................................................ 13      (f)   Effect of Mortgage Loan on Borrower's Financial Condition ................................................ 13      (g)   Economic Sanctions, Anti-Money Laundering, and Anti-Corruption ..................................... 13      (h)   Borrower Single Asset Status .................................................................................................. 14      (i)   No Bankruptcies or Judgments ................................................................................................ 15      (j)   No Actions or Litigation .......................................................................................................... 16      (k)   Payment of Taxes, Assessments, and Other Charges .............................................................. 16   Multifamily Loan and Security Agreement  (Non-Recourse)                            Form 6001.NR                             Page i  Fannie Mae                                   06-19                      © 2019 Fannie Mae  

 

     (1)   Not a Foreign Person ............................................................................................................... 16       (m)   ERISA ..................................................................................................................................... 16       (n)   Default Under Other Obligations ............................................................................................ 17       (o)   Prohibited Person ..................................................................................................................... 17        (p)   No Contravention .................................................................................................................... 17       ( q)  Lockbox Arrangement ............................................................................................................. 17      SECTION 4.02  COVENANTS  ................................................................................................................ 18       (a)   Maintenance of Existence; Organizational Documents ........................................................... 18       (b)   Economic Sanctions, Anti-Money Laundering, and Anti-Corruption ..................................... 18       ( c)  Payment of Taxes, Assessments, and Other Charges .............................................................. 19       ( d)  Borrower Single Asset Status .................................................................................................. 19       (e)   ERISA ..................................................................................................................................... 20       (f)   Notice of Litigation or Insolvency ........................................................................................... 21       (g)   Payment of Costs, Fees, and Expenses .................................................................................... 21       (h)   Restrictions on Distributions ................................................................................................... 22       (i)   Lockbox Arrangement ............................................................................................................. 22  ARTICLE 5 -  THE MORTGAGE LOAN .............................................................................................. 22     SECTION 5.01  REPRESENTATIONS AND WARRANTIES ....................................................................... 22      (a)   Receipt and Review of Loan Documents ................................................................................ 22      (b)   No Default ............................................................................................................................... 22      ( c)  No Defenses ............................................................................................................................. 22      (d)   Loan Document Taxes ............................................................................................................. 22    SECTION 5.02   COVENANTS  ................................................................................................................ 23      (a)   Ratification of Covenants; Estoppels; Certifications ............................................................... 23      (b)   Further Assurances .................................................................................................................. 23      ( c)  Sale of Mortgage Loan ............................................................................................................ 24      (d)   Limitations on Further Acts of Borrower ................................................................................ 25      (e)   Financing Statements; Record Searches .................................................................................. 25      (f)   Loan Document Taxes ............................................................................................................. 25  ARTICLE 6 -  PROPERTY USE, PRESERVATION, AND MAINTENANCE .................................. 26    SECTION 6.01  REPRESENTATIONS AND WARRANTIES ....................................................................... 26      (a)   Compliance with Law; Permits and Licenses .......................................................................... 26      (b)   Property Characteristics ........................................................................................................... 26      ( c)  Property Ownership ................................................................................................................. 27      (d)   Condition of the Mortgaged Property ...................................................................................... 27      (e)   Personal Property ..................................................................................................................... 27    SECTION 6.02  COVENANTS  ................................................................................................................ 27      (a)   Use of Property ........................................................................................................................ 27      (b)   Property Maintenance .............................................................................................................. 28      ( c)  Property Preservation .............................................................................................................. 29      ( d)  Property Inspections ................................................................................................................ 30      ( e)  Compliance with Laws ............................................................................................................ 31    SECTION 6.03  MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING THE PROPERTY ........... 31      (a)   Property Management ............................................................................................................. 31      (b)   Subordination of Fees to Affiliated Property Managers .......................................................... 31      ( c)  Property Condition Assessment.. ............................................................................................. 32    Multifamily Loan and Security Agreement  (Non-Recourse)                           Form 6001.NR                             Page ii  Fannie Mae                                   06-19                      © 2019 Fannie Mae  

 

 ARTICLE 7 - LEASES AND RENTS ..................................................................................................... 32     SECTION 7.01  REPRESENTATIONS AND WARRANTIES ....................................................................... 32       (a)   Prior Assignment of Rents ....................................................................................................... 32       (b)   Prepaid Rents ........................................................................................................................... 3 2     SECTION 7.02  COVENANTS  ................................................................................................................ 32       (a)   Leases ...................................................................................................................................... 32       (b)   Commercial Leases ................................................................................................................. 33       ( c)  Payment of Rents ..................................................................................................................... 34       ( d)  Assignment of Rents ................................................................................................................ 34       ( e)  Further Assignments of Leases and Rents ............................................................................... 35       ( f)  Options to Purchase by Tenants .............................................................................................. 35     SECTION 7.03  MORTGAGE LOAN ADMINISTRATION REGARDING LEASES AND   RENTS .................... 35       ( a)  Material Commercial Lease Requirements ............................................................................. 35       (b)   Residential Lease Form ........................................................................................................... 35   ARTICLE 8 - BOOKS AND RECORDS; FINANCIAL REPORTING .............................................. 36     SECTION 8.01  REPRESENTATIONS AND WARRANTIES ....................................................................... 36       (a)   Financial Information .............................................................................................................. 36       (b)  No Change in Facts or Circumstances ..................................................................................... 36     SECTION 8.02  COVENANTS  ................................................................................................................ 36       (a)   Obligation to Maintain Accurate Books and Records ............................................................. 36       (b)   Items to Furnish to Lender ...................................................................................................... 36       ( c) Audited Financials ................................................................................................................... 39       (d)  Delivery of Books and Records ............................................................................................... 40    SECTION 8.03   MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING BOOKS AND    RECORDS                   AND FINANCIAL REPORTING ....................................................................................... 40      (a)   Lender's Right to Obtain Audited Books and Records .......................................................... .40      (b)   Credit Reports; Credit Score .................................................................................................. .40  ARTICLE 9 -  INSURANCE .................................................................................................................... 41    SECTION 9.01   REPRESENTATIONS AND WARRANTIES ....................................................................... 41      (a)   Compliance with Insurance Requirements .............................................................................. 41      (b)   Property Condition .................................................................................................................. 41    SECTION 9.02  COVENANTS  ................................................................................................................ 41      (a)   Insurance Requirements .......................................................................................................... 41      (b)   Delivery of Policies, Renewals, Notices, and Proceeds ......................................................... .42    SECTION 9.03  MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING lNSURANCE ................ .42      (a)   Lender's Ongoing Insurance Requirements ............................................................................ 42      (b)   Application of Proceeds on Event of Loss ............................................................................. .43      (c)   Payment Obligations Unaffected ............................................................................................. 45      (d)   Foreclosure Sale ...................................................................................................................... 45      ( e)  Appointment of Lender as Attorney-In-Fact .......................................................................... .46  ARTICLE 10 -  CONDEMNATION ........................................................................................................ 46    SECTION 10.01 REPRESENTATIONS AND WARRANTIES ....................................................................... 46      (a)   Prior Condemnation Action ..................................................................................................... 46      (b)   Pending Condemnation Actions .............................................................................................. 46    Multifamily Loan and Security Agreement  (Non-Recourse)                            Form 6001.NR                            Page iii  Fannie Mae                                   06-19                      © 2019 Fannie Mae  

 

   SECTION 10.02 COVENANTS  ................................................................................................................ 46       (a)   Notice ofCondemnation .......................................................................................................... 46       (b)   Condemnation Proceeds .......................................................................................................... 46     SECTION 10.03 MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING CONDEMNATION ........ .47       (a)   Application of Condemnation Awards .................................................................................... 47       (b)   Payment Obligations Unaffected ............................................................................................. 4 7       (c)   Appointment of Lender as Attomey-In-Fact ........................................................................... 47       (d)   Preservation of Mortgaged Property ........................................................................................ 47   ARTICLE 11-LIENS, TRANSFERS, AND ASSUMPTIONS ............................................................ 48      SECTION 11.01 REPRESENTATIONS AND WARRANTIES ....................................................................... 48       (a)   No Labor or Materialmen's Claims ........................................................................................ .48       (b)   No Other Interests .................................................................................................................... 48     SECTION 11.02 COVENANTS  ................................................................................................................ 48       (a)   Liens; Encumbrances ............................................................................................................... 48       (b)   Transfers .................................................................................................................................. 49       ( c)  No Other Indebtedness ............................................................................................................ 54       ( d)  No Mezzanine Financing or Preferred Equity ......................................................................... 54     SECTION 11.03 MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING LIENS, TRANSFERS, AND                   ASSUMPTIONS ............................................................................................................. 54      (a)   Assumption of Mortgage Loan ................................................................................................ 54      (b)   Transfers to Key Principal-Owned Affiliates or Guarantor-Owned Affiliates ........................ 56      ( c)  Estate Planning ........................................................................................................................ 56      ( d)  Termination or Revocation of Trust ........................................................................................ 57      (e)   Death of Key Principal or Guarantor; Transfer Due to Death ................................................. 57      (f)   Bankruptcy of Guarantor ......................................................................................................... 58      (g)   Further Conditions to Transfers and Assumption .................................................................... 59  ARTICLE 12   - IMPOSITIONS ............................................................................................................... 62    SECTION 12.01  REPRESENTATIONS AND WARRANTIES ....................................................................... 62      (a)   Payment of Taxes, Assessments, and Other Charges .............................................................. 62    SECTION 12.02  COVENANTS ................................................................................................................ 63      (a)   Imposition Deposits, Taxes, and Other Charges ..................................................................... 63    SECTION 12.03 MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING IMPOSITIONS ............... 63      (a)   Maintenance of Records by Lender ......................................................................................... 63      (b)   Imposition Accounts ................................................................................................................ 64      ( c)  Payment of Impositions; Sufficiency of Imposition Deposits ................................................. 64      ( d)  Imposition Deposits Upon Event of Default ........................................................................... 64      ( e)  Contesting Impositions ............................................................................................................ 64      (f)   Release to Borrower ................................................................................................................ 65  ARTICLE 13-REPLACEMENTS, REPAIRS, AND RESTORATION ............................................ 65    SECTION 13.01 COVENANTS  ................................................................................................................ 65      (a)   Initial Deposits to Replacement Reserve Account, Repairs Escrow Account, and Restoration      Reserve Account ................................................................................................................................. 65      (b)   Monthly Replacement Reserve Deposits ................................................................................. 65      (c)   Payment and Deliverables for Replacements, Repairs, and Restoration ................................. 66      ( d)  Assignment of Contracts for Replacements, Repairs, and Restoration ................................... 66      ( e)  Indemnification ........................................................................................................................ 66   Multifamily Loan and Security Agreement  (Non-Recourse)                            Form 6001.NR                            Page iv  Fannie Mae                                   06-19                      © 2019 Fannie Mae  

 

     (f)   Amendments to Loan Documents ........................................................................................... 67       (g)   Administrative Fees and Expenses .......................................................................................... 67     SECTION 13.02 MORTGAGE LOAN ADMINISTRATION MATTERS REGARDING RESERVES ................... 67       (a)   Accounts, Deposits, and Disbursements .................................................................................. 67       (b)   Approvals of Contracts; Assignment of Claims ...................................................................... 75       (c)   Delays and Workmanship ........................................................................................................ 75       (d)   Appointment of Lender as Attorney-In-Fact.. ......................................................................... 75       (e)   No Lender Obligation .............................................................................................................. 76       (f)   No Lender Warranty ................................................................................................................ 76   ARTICLE 14 - DEFAULTS/REMEDIES .............................................................................................. 76     SECTION 14.01 EVENTS OF DEFAULT ................................................................................................... 76       (a)   Automatic Events of Default ................................................................................................... 76       (b)   Events of Default Subject to a Specified Cure Period ............................................................. 77       (c)   Events of Default Subject to Extended Cure Period ................................................................ 78     SECTION 14.02 REMEDIES .................................................................................................................... 78       (a)   Acceleration; Foreclosure ........................................................................................................ 78       (b)   Loss of Right to Disbursements from Collateral Accounts ..................................................... 79       (c)   Remedies Cumulative .............................................................................................................. 79     SECTION 14.03 ADDITIONAL LENDER RIGHTS; FORBEARANCE .......................................................... 80       (a)  No Effect Upon Obligations .................................................................................................... 80       (b)  No Waiver of Rights or Remedies ........................................................................................... 80       (c)  Appointment of Lender as Attorney-In-Fact ........................................................................... 81       (d)  Borrower Waivers ................................................................................................................... 82    SECTION 14.04  W AIYER OF MARSHALING ........................................................................................... 83  ARTICLE 15   - MISCELLANEOUS ....................................................................................................... 83    SECTION 15.01  GOVERNING LAW; CONSENT TO JURISDICTION AND VENUE ...................................... 83      (a)   Governing Law ........................................................................................................................ 83      (b)   Venue ....................................................................................................................................... 83    SECTION 15.02  NOTICE ........................................................................................................................ 84      (a)   Process of Serving Notice ....................................................................................................... 84      (b)   Change of Address .................................................................................................................. 84      (c)   Default Method of Notice ........................................................................................................ 84      (d)   Receipt of Notices ................................................................................................................... 85    SECTION 15.03  SUCCESSORS AND ASSIGNS BOUND; SALE OF MORTGAGE LOAN .............................. 85      (a)   Binding Agreement ................................................................................................................. 85      (b)   Sale of Mortgage Loan; Change of Servicer ........................................................................... 85    SECTION 15.04 COUNTERPARTS ........................................................................................................... 85    SECTION 15.05 JOINT AND SEVERAL (OR SOLIDARY) LIABILITY ........................................................ 85    SECTION 15.06 RELATIONSHIP OF PARTIES; NO THIRD PARTY BENEFICIARY .................................... 85      (a)   Solely Creditor and Debtor ...................................................................................................... 85      (b)   No Third Party Beneficiaries ................................................................................................... 86    Multifamily Loan and Security Agreement  (Non-Recourse)                            Form 6001.NR                            Page v  Fannie Mae                                   06-19                      © 2019 Fannie Mae  

 

    SECTION 15 .07    SEVERABILITY; ENTIRE AGREEMENT; AMENDMENTS ................................................ 86      SECTION 15.08     CONSTRUCTION ........................................................................................................... 86     SECTION 15.09      MORTGAGE LOAN SERVICING ..................................................................................... 87     SECTION 15 .10     DISCLOSURE OF    lNFORMATION     ................................................................................... 87     SECTION 15.11      WAIVER; CONFLICT ..................................................................................................... 88     SECTION 15.12      No RELIANCE .............................................................................................................. 88     SECTION 15.13      SUBROGATION ............................................................................................................. 88     SECTION 15.14      COUNTING OF DAYS .................................................................................................... 88     SECTION 15.15      REVIVALANDREINSTATEMENTOFlNDEBTEDNESS ................................................... 89     SECTION 15.16      TIMEISOFTHEESSENCE ............................................................................................. 89     SECTION 15.17      FINAL AGREEMENT ..................................................................................................... 89     SECTION 15 .18     W AIYER OF TRIAL BY JURY················································································· 89    Multifamily  Loan  and  Security Agreement  (Non-Recourse)                                       Form 6001.NR                                        Page vi  Fannie Mae                                                06-19                              © 2019 Fannie Mae  

 

          MULTIFAMILY LOAN AND SECURITY AGREEMENT                                  (Non-Recourse)          This MULTIFAMILY   LOAN AND   SECURITY  AGREEMENT    (as amended, restated,  replaced, supplemented, or otherwise modified from time to time, the "Loan Agreement") is made   as of the Effective Date (as hereinafter defined) by and between SIR JEFFERSON, LLC, a  Delaware  limited liability company ("Borrower"), and JONES   LANG   LASALLE  MULTIFAMILY, LLC, a Delaware limited liability company ("Lender").                                    RECITALS:         WHEREAS, Borrower desires to obtain the Mortgage Loan (as hereinafter defined) from  Lender to be secured by the Mortgaged Property ( as hereinafter defined); and         WHEREAS,   Lender is willing to make the Mortgage Loan on the terms and conditions  contained in this Loan Agreement and in the other Loan Documents (as hereinafter defined);         NOW, THEREFORE, in consideration of the making of the Mortgage Loan by Lender and  other good and valuable consideration, the receipt and adequacy of which are hereby conclusively  acknowledged, the parties hereby covenant, agree, represent, and warrant as follows:                                 AGREEMENTS:           ARTICLE 1 -   DEFINITIONS; SUMMARY OF MORTGAGE                                 LOAN TERMS   Section 1.01   Defined Terms.         Capitalized terms not otherwise defined in the body of this Loan Agreement shall have the  meanings set forth in the Definitions Schedule attached as Schedule 1 to this Loan Agreement.   Section 1.02   Schedules, Exhibits, and Attachments Incorporated.         The schedules, exhibits, and any other addenda or attachments are incorporated fully into  this Loan Agreement by this reference and each constitutes a substantive part of this Loan  Agreement.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                         Page 1  Article 1                                06-19                   © 2019 Fannie Mae  

 

           ARTICLE 2 -    GENERAL MORTGAGE LOAN TERMS    Section 2.01   Mortgage Loan Origination and Security.          (a)   Making of Mortgage Loan.          Subject to the terms and conditions of this Loan Agreement and the other Loan Documents,  Lender hereby makes the Mortgage Loan to Borrower, and Borrower hereby accepts the Mortgage  Loan from Lender. Borrower covenants and agrees that it shall:               (1)   pay the Indebtedness, including the Prepayment Premium, if any (whether        in connection with any voluntary prepayment or in connection with an acceleration by        Lender of the Indebtedness), in accordance with the terms of this Loan Agreement and the        other Loan Documents; and               (2)   perform, observe, and comply with this Loan Agreement and all other        provisions of the other Loan Documents.         (b)   Security for Mortgage Loan.         The Mortgage Loan is made pursuant to this Loan Agreement, is evidenced by the Note,  and is secured by the Security Instrument, this Loan Agreement, and the other Loan Documents  that are expressly stated to be security for the Mortgage Loan.         (c)   Protective Advances.         As provided in the Security Instrument, Lender may take such actions or disburse such  funds as Lender reasonably deems necessary to perform the obligations of Borrower under this  Loan Agreement and the other Loan Documents and to protect Lender's interest in the Mortgaged  Property.   Section 2.02   Payments on Mortgage Loan.         (a)   Debt Service Payments.               (1)   Short Month Interest.               If the date the Mortgage Loan proceeds are disbursed is any day other than the first        day of the month, interest for the period beginning on the disbursement date and ending on        and including the last day of the month in which the disbursement occurs shall be payable        by Borrower on the date the Mortgage Loan proceeds are disbursed. In the event that the        disbursement date is not the same as the Effective Date, then:                     (A)   the disbursement date and the Effective Date must be in the same              month, and    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                         Page 2  Article 2                                06-19                   © 2019 Fannie Mae  

 

                  (B)    the Effective Date shall not be the first day of the month.               (2)   Interest Accrual and Computation.               Except as provided in Section 2.02(a)(l), interest shall be paid in arrears. Interest        shall accrue as provided in the Schedule of Interest Rate Type Provisions and shall be        computed in accordance with the Interest Accrual Method. If the Interest Accrual Method        is "Actual/360," Borrower acknowledges and agrees that the amount allocated to interest        for each month will vary depending on the actual number of calendar days during such        month.               (3)   Monthly Debt Service Payments.               Consecutive monthly debt service installments (comprised  of either interest only or        principal and interest, depending on the Amortization Type), each in the amount of the        applicable Monthly Debt Service Payment, shall be due and payable on the First Payment        Date, and on each Payment Date thereafter until the Maturity Date, at which time all        Indebtedness shall be due. Any regularly scheduled Monthly Debt Service Payment that        is received by Lender before the applicable Payment Date shall be deemed to have been        received on such Payment Date solely for the purpose of calculating interest due. All        payments made by Borrower under this Loan Agreement shall be made without set-off,        counterclaim, or other defense.               (4)   Payment at Maturity.               The unpaid principal balance of the Mortgage Loan, any Accrued Interest thereon        and all other Indebtedness shall be due and payable on the Maturity Date.               (5)   Interest Rate Type.               See the Schedule of Interest Rate Type Provisions for additional provisions, if any,        specific to the Interest Rate Type.         (b)   Capitalization of Accrued But Unpaid Interest.         Any accrued and unpaid interest on the Mortgage Loan remaining past due for thirty (30)  days or more may, at Lender's election, be added to and become part of the unpaid principal  balance of the Mortgage Loan.         (c)   Late Charges.               (1)   If any Monthly Debt Service Payment due hereunder is not received by        Lender within ten (10) days (or fifteen (15) days for any Mortgaged Property located in        Mississippi or North Carolina to comply with applicable law) after the applicable Payment        Date, or any amount payable under this Loan Agreement (other than the payment due on        the Maturity Date for repayment of the Mortgage Loan in full) or any other Loan Document   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                         Page3  Article 2                               06-19                    © 2019 Fannie Mae  

 

      is not received by Lender within ten (10) days ( or fifteen (15) days for any Mortgaged        Property located in Mississippi or North Carolina to comply with applicable law) after the        date such amount is due, inclusive of the date on which such amount is due, Borrower shall        pay to Lender, immediately without demand by Lender, the Late Charge.         The Late Charge is payable in addition to, and not in lieu of, any interest payable at the        Default Rate pursuant to Section 2.02(d).               (2)   Borrower acknowledges and agrees that:                     (A)   its failure to make timely payments will cause Lender to mcur              additional expenses in servicing and processing the Mortgage Loan;                     (B)   it is extremely difficult and impractical to determine those additional              expenses;                     (C)   Lender is entitled to be compensated for such additional expenses;              and                     (D)   the Late Charge represents a fair and reasonable estimate, taking              into account all circumstances existing on the date hereof, of the additional              expenses Lender will incur by reason of any such late payment.         (d)   Default Rate.               (1)   Default interest shall be paid as follows:                     (A)   If any amount due in respect of the Mortgage Loan (other  than              amounts due on the Maturity Date) remains past due for thirty (30) days or more,              interest on such unpaid amount(s) shall accrue from the date payment is due at the              Default Rate and shall be payable upon demand by Lender.                     (B)   If any Indebtedness due is not paid in full on the Maturity Date, then              interest shall accrue at the Default Rate on all such unpaid amounts from the              Maturity Date until fully paid and shall be payable upon demand by Lender.         Absent a demand by Lender, any such amounts shall be payable by Borrower in the same        manner as provided for the payment of Monthly Debt Service Payments. To the extent        permitted by applicable law, interest shall also accrue at the Default Rate on any judgment        obtained by Lender against Borrower in connection with the Mortgage Loan. To the extent        Borrower or any other Person is vested with a right of redemption, interest shall continue        to accrue at the Default Rate during any redemption period until such time as the        Mortgaged Property has been redeemed.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                         Page4  Article 2                               06-19                    © 2019 Fannie Mae  

 

             (2)   Borrower acknowledges and agrees that:                      (A)   its failure to make timely payments will cause Lender to mcur               additional expenses in servicing and processing the Mortgage Loan; and                      (B)   in connection with any failure to timely pay all amounts due in              respect of the Mortgage Loan on the Maturity Date, or during the time that any               amount due in respect of the Mortgage Loan is delinquent for more than thirty (30)              days:                           (i)   Lender's risk of nonpayment of the Mortgage Loan will be                    materially increased;                           (ii)  Lender's ability to meet its other obligations and to take                    advantage of other investment opportunities will be adversely impacted;                           (iii) Lender will incur additional costs and expenses arising from                    its loss of the use of the amounts due;                           (iv)  it is extremely difficult and impractical to determine such                    additional costs and expenses;                           (v)   Lender is entitled to be compensated for such additional                    risks, costs, and expenses; and                           (vi)  the increase from the Interest Rate to the Default Rate                    represents a fair and reasonable estimate of the additional risks, costs, and                    expenses Lender will incur by reason of Borrower's delinquent payment                    and the additional compensation Lender is entitled to receive for the                    increased risks of nonpayment associated with a delinquency on the                    Mortgage Loan (taking into account all circumstances existing on the                    Effective Date).         (e)   Address for Payments.         All payments due pursuant to the Loan Documents shall be payable at Lender's Payment  Address, or such other place and in such manner as may be designated from time to time by written  notice to Borrower by Lender.         (f)   Application of Payments.         If at any time Lender receives, from Borrower or otherwise, any payment in respect of the  Indebtedness that is less than all amounts due and payable at such time, then Lender may apply  such payment to amounts then due and payable in any manner and in any order determined by  Lender or hold in suspense and not apply such payment at Lender's election. Neither Lender's  acceptance of a payment that is less than all amounts then due and payable, nor Lender's   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                         Page 5  Article 2                               06-19                    © 2019 Fannie Mae  

 

 application of, or suspension of the application of, such payment, shall constitute or be deemed to   constitute either a waiver of the unpaid amounts or an accord and satisfaction. Notwithstanding   the application of any such payment to the Indebtedness, Borrower's obligations under this Loan   Agreement and the other Loan Documents shall remain unchanged.    Section 2.03   Lockout/Prepayment.          (a)   Prepayment; Prepayment Lockout; Prepayment Premium.                (1)   Borrower shall not make a voluntary partial prepayment on the Mortgage        Loan at any time during the Loan Term, or a voluntary full prepayment on the Mortgage        Loan at any time during any Prepayment Lockout Period. Except as expressly provided in        this Loan Agreement (including as provided in the Prepayment Premium Schedule), a        Prepayment Premium calculated in accordance with the Prepayment Premium Schedule        shall be payable in connection with any prepayment of the Mortgage Loan.               (2)   If a Prepayment Lockout Period applies to the Mortgage Loan, and during        such Prepayment Lockout Period Lender accelerates the unpaid principal balance of the        Mortgage Loan or otherwise applies collateral held by Lender to the repayment of any        portion of the unpaid principal balance of the Mortgage Loan, the Prepayment Premium        shall be due and payable and equal to the amount obtained by multiplying the percentage        indicated (if at all) in the Prepayment Premium Schedule by the amount of principal being        prepaid at the time of such acceleration or application.         (b)   Voluntary Prepayment in Full.         At any time after the expiration of any Prepayment Lockout Period, Borrower may  voluntarily prepay the Mortgage Loan in full on a Permitted Prepayment Date so long as:               (1)   Borrower delivers to Lender a Prepayment Notice specifying the Intended        Prepayment Date not more than sixty (60) days, but not less than thirty (30) days (if given        via U.S. Postal Service) or twenty (20) days (if given via facsimile, e-mail, or overnight        courier) prior to such Intended Prepayment Date; and               (2)   Borrower pays to Lender an amount equal to the sum of:                     (A)   the entire unpaid principal balance of the Mortgage Loan; plus                     (B)   all Accrued Interest (calculated through the last day of the month in              which the prepayment occurs); plus                     (C)   the Prepayment Premium; plus                     (D)   all other Indebtedness.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                         Page 6  Article 2                                06-19                   © 2019 Fannie Mae  

 

 In connection with any such voluntary prepayment, Borrower acknowledges and agrees that   interest shall always be calculated and paid through the last day of the month in which the   prepayment occurs (even  if the Permitted Prepayment Date for such month is not the last day of   such month, or if Lender approves prepayment on an Intended Prepayment Date that is not a   Permitted Prepayment Date). Borrower further acknowledges that Lender is not required to accept   a voluntary prepayment of the Mortgage Loan on any day other than a Permitted Prepayment Date.  However, if Lender does approve an Intended Prepayment Date that is not a Permitted Prepayment  Date and accepts a prepayment on such Intended Prepayment Date, such prepayment shall be  deemed to be received on the immediately following Permitted Prepayment Date. If Borrower  fails to prepay the Mortgage Loan on the Intended Prepayment Date for any reason (including on  any Intended Prepayment Date that is approved by Lender) and such failure either continues for  five (5) Business Days, or into the following month, Lender shall have the right to recalculate the  payoff amount. If Borrower prepays the Mortgage Loan either in the following month or more  than five (5) Business Days after the Intended Prepayment Date that was approved by Lender,  Lender shall also have the right to recalculate the payoff amount based upon the amount of such  payment and the date such payment was received by Lender. Borrower shall immediately pay to  Lender any additional amounts required by any such recalculation.         (c)   Acceleration of Mortgage Loan.         Upon acceleration of the Mortgage Loan, Borrower shall pay to Lender:               (1)   the entire unpaid principal balance of the Mortgage Loan;               (2)   all Accrued Interest (calculated through the last day of the month in which        the acceleration occurs);               (3)   the Prepayment Premium; and               (4)   all other Indebtedness.         (d)   Application of Collateral.         Any application by Lender of any collateral or other security to the repayment of all or any  portion of the unpaid principal balance of the Mortgage Loan prior to the Maturity Date in  accordance with the Loan Documents shall be deemed to be a prepayment by Borrower. Any such  prepayment shall require the payment to Lender by Borrower of the Prepayment Premium  calculated on the amount being prepaid in accordance with this Loan Agreement.         (e)   Casualty and Condemnation.         Notwithstanding any provision of this Loan Agreement to the contrary, no Prepayment  Premium shall be payable with respect to any prepayment occurring as a result of the application  of any insurance proceeds or amounts received in connection with a Condemnation Action in  accordance with this Loan Agreement.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                         Page 7  Article 2                                06-19                   © 2019 Fannie Mae  

 

       (f)   No Effect on Payment Obligations.          Unless otherwise expressly provided in this Loan Agreement, any prepayment required by   any Loan Document of less than the entire unpaid principal balance of the Mortgage Loan shall  not extend or postpone the due date of any subsequent Monthly Debt Service Payments, Monthly  Replacement Reserve Deposit, or other payment, or change the amount of any such payments or  deposits.          (g)   Loss Resulting from Prepayment.         In any circumstance in which a Prepayment Premium is due under this Loan Agreement,  Borrower acknowledges that:               (1)   any prepayment of the unpaid principal balance of the Mortgage Loan,        whether voluntary or involuntary, or following the occurrence of an Event of Default by        Borrower, will result in Lender's incurring loss, including reinvestment loss, additional        risk, expense, and frustration or impairment of Lender's ability to meet its commitments to        third parties;               (2)   it is extremely difficult and impractical to ascertain the extent of such losses,        risks, and damages;               (3)   the formula for calculating the Prepayment Premium represents a        reasonable estimate of the losses, risks, and damages Lender will incur as a result of a        prepayment; and               (4)   the provisions regarding the Prepayment Premium contained in this Loan        Agreement are a material part of the consideration for the Mortgage Loan, and that the        terms of the Mortgage Loan are in other respects more favorable to Borrower as a result of        Borrower's voluntary agreement to such prepayment provisions.                      ARTICLE 3 -   PERSONAL LIABILITY   Section 3.01   Non-Recourse Mortgage Loan; Exceptions.         Except as otherwise provided in this Article 3 or in any other Loan Document, none of  Borrower, or any director, officer, manager, member, partner, shareholder, trustee, trust  beneficiary, or employee of Borrower, shall have personal liability under this Loan Agreement or  any other Loan Document for the repayment of the Indebtedness or for the performance of any  other obligations of Borrower under the Loan Documents, and Lender's only recourse for the  satisfaction of such Indebtedness and the performance of such obligations shall be Lender's  exercise of its rights and remedies with respect to the Mortgaged Property and any other collateral  held by Lender as security for the Indebtedness. This limitation on Borrower's liability shall not  limit or impair Lender's enforcement of its rights against Guarantor under any Loan Document.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                         Page 8  Article 2                                06-19                   © 2019 Fannie Mae  

 

 Section 3.02   Personal Liability of Borrower (Exceptions to Non-Recourse Provision).          (a)   Personal Liability Based on Lender's Loss.          Borrower shall be personally liable to Lender for the repayment of the portion of the  Indebtedness equal to any loss or damage suffered by Lender as a result of, subject to any notice  and cure period, if any:                (1)   failure to pay as directed by Lender upon demand after an Event of Default        (to the extent actually received by Borrower):                     (A)   all Rents to which Lender is entitled under the Loan Documents; and                     (B)   the amount of all security deposits then held or thereafter collected              by Borrower from tenants and not properly applied pursuant to the applicable              Leases;               (2)   failure to maintain all insurance policies required by the Loan Documents,        except to the extent Lender has the obligation to pay the premiums pursuant to Section        12.03(c);               (3)   failure to apply all insurance proceeds received by Borrower or any amounts        received by Borrower in connection with a Condemnation Action, as required by the Loan        Documents;               (4)   failure to comply with any provision of this Loan Agreement or any other        Loan Document relating to the delivery of books and records, statements, schedules, and        reports;               (5)   except to the extent directed otherwise by Lender pursuant to Section        3.02(a)(l), failure to apply Rents to the ordinary and necessary expenses of owning and        operating the Mortgaged Property and Debt Service Amounts, as and when each is due and        payable, except that Borrower will not be personally liable with respect to Rents that are        distributed by Borrower in any calendar year if Borrower has paid all ordinary and        necessary expenses of owning and operating the Mortgaged Property and Debt Service        Amounts for such calendar year;               ( 6)  waste or abandonment of the Mortgaged Property; or               (7)   grossly negligent or reckless unintentional material misrepresentation or        omission by Borrower, Guarantor, Key Principal, or any officer, director, partner, manager,        or member of Borrower, Guarantor, or Key Principal or any Person having a Restricted        Ownership Interest in Guarantor or Key Principal in connection with on-going financial or        other reporting required by the Loan Documents, or any request for action or consent by        Lender..    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                         Page 9  Article 3                               06-19                    © 2019 Fannie Mae  

 

 Notwithstanding the foregoing, Borrower shall not have personal liability under clauses (1), (3),   or ( 5) above to the extent that Borrower lacks the legal right to direct the disbursement of the   applicable funds due to an involuntary Bankruptcy Event that occurs without the consent,   encouragement, or active participation of Borrower, Guarantor, Key Principal, or any Borrower  Affiliate.          (b)   Full Personal Liability for Mortgage Loan.         Borrower shall be personally liable to Lender for the repayment of all of the Indebtedness,  and the Mortgage Loan shall be fully recourse to Borrower, upon the occurrence of any of the  following:               (1)   failure by Borrower to comply with the single-asset entity requirements of        Section 4.02(d) of this Loan Agreement;               (2)   a Transfer ( other than a conveyance of the Mortgaged Property at a        Foreclosure Event pursuant to the Security Instrument and this Loan Agreement) that is        not permitted under this Loan Agreement or any other Loan Document;               (3)   the occurrence of any Bankruptcy Event (other than an acknowledgement        in writing as described in clause (b) of the definition of "Bankruptcy Event"); provided,        however, in the event of an involuntary Bankruptcy Event, Borrower shall only be        personally liable if such involuntary Bankruptcy Event occurs with the consent,        encouragement, or active participation of Borrower, Guarantor, Key Principal, or any        Borrower Affiliate;               (4)   fraud, written material misrepresentation, or material om1ss10n by        Borrower, Guarantor, Key Principal, or any officer, director, partner, manager, or member        of Borrower, Guarantor, or Key Principal or any Person having a Restricted Ownership        Interest in Guarantor or Key Principal in connection with any application for or creation of        the Indebtedness; or               (5)   fraud, written intentional material misrepresentation, or intentional material        omission by Borrower, Guarantor, Key Principal, or any officer, director, partner, manager,        or member of Borrower, Guarantor, or Key Principal or any Person having a Restricted        Ownership Interest in Guarantor or Key Principal in connection with on-going financial or        other reporting required by the Loan Documents, or any request for action or consent by        Lender.               (6)   a Division that is not permitted under this Loan Agreement or any other        Loan Document.   Section 3.03   Personal Liability for Indemnity Obligations.         Borrower shall be personally and fully liable to Lender for Borrower's indemnity  obligations under Section 13.0l(e) of this Loan Agreement, the Environmental Indemnity   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 10  Article 3                                06-19                   © 2019 Fannie Mae  

 

 Agreement, and any other express indemnity obligations provided by Borrower under any Loan   Document. Borrower's liability for such indemnity obligations shall not be limited by the amount   of the Indebtedness, the repayment of the Indebtedness, or otherwise, provided that Borrower's   liability for such indemnities shall not include any loss caused by the gross negligence or willful  misconduct of Lender as determined by a court of competent jurisdiction pursuant to a final non­ appealable court order.   Section 3.04   Lender's Right to Forego Rights Against Mortgaged Property.         To the extent that Borrower has personal liability under this Loan Agreement or any other  Loan Document, Lender may exercise its rights against Borrower personally to the fullest extent  permitted by applicable law without regard to whether Lender has exercised any rights against the  Mortgaged Property, the UCC Collateral, or any other security, or pursued any rights against  Guarantor, or pursued any other rights available to Lender under this Loan Agreement, any other  Loan Document, or applicable law. For purposes of this Section 3.04 only, the term "Mortgaged  Property" shall not include any funds that have been applied by Borrower as required or permitted  by this Loan Agreement prior to the occurrence of an Event of Default, or that Borrower was  unable to apply as required or permitted by this Loan Agreement because of a Bankruptcy Event.  To the fullest extent permitted by applicable law, in any action to enforce Borrower's personal  liability under this Article 3, Borrower waives any right to set off the value of the Mortgaged  Property against such personal liability.                       ARTICLE 4 -   BORROWER STATUS   Section 4.01   Representations and Warranties.         The representations and warranties made by Borrower to Lender in this Section 4.01 are  made as of the Effective Date and are true and correct except as disclosed on the Exceptions to  Representations and Warranties Schedule.         (a)   Due Organization and Qualification; Organizational Agreements.               (1)   Borrower is validly existing and qualified to transact business, and in good        standing in:                     (A)   the state in which it is formed or organized;                     (B)   the Property Jurisdiction; and                     (C)   each other jurisdiction that qualification or good standing is required              according to applicable law to conduct its business with respect to the Mortgaged              Property and where the failure to be so qualified or in good standing would              adversely affect Borrower's operation of the Mortgaged Property or the validity,              enforceability or the ability of Borrower to perform its obligations under this Loan              Agreement or any other Loan Document.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 11  Article 3                               06-19                    © 2019 Fannie Mae  

 

             (2)   Intentionally Omitted.                (3)   True, correct and complete organizational documents of Borrower,         Guarantor and Key Principal have been delivered to Lender prior to the Effective Date.         The Ownership Interests Schedule attached hereto as Schedule 8 to this Loan Agreement         sets forth:                      (A)   the direct owners of Borrower and their respective interests;                      (B)   the indirect owners (and any non-member managers) of Borrower              that Control Borrower (excluding any Publicly-Held Corporations or Publicly-Held              Trusts) and their respective interests; and                     (C)   the indirect owners of Borrower that hold twenty-five percent (25%)              or more of the ownership interests in Borrower (excluding any Publicly-Held              Corporations or Publicly-Held Trusts) and their respective interests.         (b)   Location.         Borrower's General Business Address 1s Borrower's principal place of business and  principal office.         (c)   Power and Authority.         Borrower has the requisite power and authority:               (1)   to own the Mortgaged Property and to carry on its business as now        conducted and as contemplated to be conducted in connection with the performance of its        obligations under this Loan Agreement and under the other Loan Documents to which it is        a party; and               (2)   to execute and deliver this Loan Agreement and the other Loan Documents        to which it is a party, and to carry out the transactions contemplated by this Loan        Agreement and the other Loan Documents to which it is a party.         (d)   Due Authorization.         The execution, delivery, and performance of this Loan Agreement and the other Loan  Documents to which it is a party have been duly authorized by all necessary action and proceedings  by or on behalf of Borrower, and no further approvals or filings of any kind, including any approval  of or filing with any Governmental Authority, are required by or on behalf of Borrower as a  condition to the valid execution, delivery, and performance by Borrower of this Loan Agreement  or any of the other Loan Documents to which it is a party, except filings required to perfect and  maintain the liens to be granted under the Loan Documents and routine filings to maintain good  standing and its existence.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 12  Article 4                                06-19                   © 2019 Fannie Mae  

 

       (e)   Valid and Binding Obligations.          This Loan Agreement and the other Loan Documents to which it is a party have been duly   executed and delivered by Borrower and constitute the legal, valid, and binding obligations of  Borrower, enforceable against Borrower in accordance with their respective terms, except as such   enforceability may be limited by applicable Insolvency Laws or by the exercise of discretion by   any court.         (f)    Effect of Mortgage Loan on Borrower's Financial Condition.         The Mortgage Loan will not render Borrower Insolvent. Borrower has sufficient working  capital, including proceeds from the Mortgage Loan, cash flow from the Mortgaged Property, or  other sources, not only to adequately maintain the Mortgaged Property, but also to pay all of  Borrower's outstanding debts as they come due, including all Debt Service Amounts, exclusive of  Borrower's ability to refinance or pay in full the Mortgage Loan on the Maturity Date. In  connection with the execution and delivery of this Loan Agreement and the other Loan Documents  (and the delivery to, or for the benefit of, Lender of any collateral contemplated thereunder), and  the incurrence by Borrower of the obligations under this Loan Agreement and the other Loan  Documents, Borrower did not receive less than reasonably equivalent value in exchange for the  incurrence of the obligations of Borrower under this Loan Agreement and the other Loan  Documents.         (g)   Economic Sanctions, Anti-Money Laundering, and Anti-Corruption.               (1)   None  of Borrower, Guarantor, or Key Principal, or to Borrower's        knowledge, any Person Controlling Borrower, Guarantor, or Key Principal, or any Person        Controlled by Borrower, Guarantor, or Key Principal that also has a direct or indirect        ownership interest in Borrower, Guarantor, or Key Principal, is in violation of any        applicable civil or criminal laws or regulations, including those requiring internal controls,        intended to prohibit, prevent, or regulate money laundering, drug trafficking, terrorism, or        corruption, of the United States and the jurisdiction where the Mortgaged Property is        located or where the Person resides, is domiciled, or has its principal place of business.               (2)   None  of Borrower, Guarantor, or Key Principal, or to Borrower's        knowledge, any Person Controlling Borrower, Guarantor, or Key Principal, or any Person        Controlled by Borrower, Guarantor, or Key Principal that also has a direct or indirect        ownership interest in Borrower, Guarantor, or Key Principal, is a Person:                     (A)   against whom proceedings are pending for any alleged violation of              any laws described in Section 4.0l(g)(l);                     (B)   that has been convicted of any violation of, has been subject to civil              penalties or Economic Sanctions pursuant to, or had any of its property seized or              forfeited under, any laws described in Section 4.0l(g)(l);    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 13  Article 4                                06-19                   © 2019 Fannie Mae  

 

                   (C)   with whom any United States Person, any entity organized under the               laws of the United States or its constituent states or territories, or any entity,               regardless of where organized, having its principal place of business within the               United States or any of its territories, is prohibited from transacting business of the               type contemplated by this Loan Agreement and the other Loan Documents under               any other Applicable Law; or                      (D)   that is deemed a Sanctioned Person.                (3)  Borrower, Guarantor, and Key Principal are in compliance with all        applicable Economic Sanctions laws and regulations.         (h)   Borrower Single Asset Status.         Borrower:               (1)   does not own or lease any real property, personal property, or assets other        than the Mortgaged Property;               (2)   does not own, operate, or participate in any business other than the leasing,        ownership, management, operation, and maintenance of the Mortgaged Property;               (3)   has no material financial obligation under or secured by any indenture,        mortgage, deed of trust, deed to secure debt, loan agreement, or other agreement or        instrument to which Borrower is a party, or by which Borrower is otherwise bound, or to        which the Mortgaged Property is subject or by which it is otherwise encumbered, other        than:                     (A)   unsecured trade payables incurred in the ordinary course of the              operation of the Mortgaged Property (exclusive of amounts for rehabilitation,              restoration, repairs, or replacements of the Mortgaged Property) that (i) are not              evidenced by a promissory note, (ii) are payable within sixty (60) days of the date              incurred, and (iii) as of the Effective Date, do not exceed, in the aggregate, four              percent (4%) of the original principal balance of the Mortgage Loan;                     (B)   if the Security Instrument grants a lien on a leasehold estate,              Borrower's obligations as lessee under the ground lease creating such leasehold              estate; and                     (C)   obligations under the Loan Documents and obligations secured by              the Mortgaged Property to the extent permitted by the Loan Documents;               (4)   has maintained its financial statements, accounting records, and other        partnership, real estate investment trust, limited liability company, or corporate documents,        as the case may be, separate from those of any other Person (unless Borrower's assets have    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 14  Article 4                                06-19                   © 2019 Fannie Mae  

 

       been included in a consolidated financial statement prepared in accordance with generally         accepted accounting principles);                (5)  has not commingled its assets or funds with those of any other Person,        unless such assets or funds can easily be segregated and identified in the ordinary course        of business from those of any other Person;               (6)   has been adequately capitalized m light of its contemplated business        operations;               (7)   has not assumed, guaranteed, or pledged its assets to secure the liabilities or        obligations of any other Person ( except in connection with the Mortgage Loan or other        mortgage loans that have been paid in full or collaterally assigned to Lender, including in        connection  with any Consolidation, Extension and Modification Agreement or similar        instrument), or held out its credit as being available to satisfy the obligations of any other        Person;               (8)   has not made loans or advances to any other Person;               (9)   has not entered into, and is not a party to, any transaction with any Borrower        Affiliate, except in the ordinary course of business and on terms which are no more        favorable to any such Borrower Affiliate than would be obtained in a comparable arm's        length transaction with an unrelated third party; and               (10)  has not sought and has no plans to Divide at any time during the Loan Term.         (i)   No Bankruptcies or Judgments.         None of Borrower, Guarantor, or Key Principal, or to Borrower's knowledge, any Person  Controlling Borrower, Guarantor, or Key Principal, or any Person Controlled by Borrower,  Guarantor, or Key Principal that also has a direct or indirect ownership interest in Borrower,  Guarantor, or Key Principal, is currently:               (1)   the subject of or a party to any completed or pending bankruptcy,        reorganization, including any receivership or other insolvency proceeding ( other than as a        creditor);               (2)   preparing or intending to be the subject of a Bankruptcy Event; or               (3)   the subject of any judgment unsatisfied ofrecord or docketed in any court;        or               ( 4)  Insolvent.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 15  Article 4                               06-19                    © 2019 Fannie Mae  

 

        (j)   No Actions or Litigation.                 (1)    There are no claims, actions, suits, or proceedings at law or in equity by or          before any Governmental Authority now pending against or, to Borrower's knowledge,         threatened against or affecting Borrower or the Mortgaged Property not otherwise covered         by insurance ( except claims, actions, suits, or proceedings regarding fair housing, anti­        discrimination, or equal opportunity, which shall always be disclosed); and                 (2)    there are no claims, actions, suits, or proceedings at law or in equity by or         before any Governmental Authority now pending or, to Borrower's knowledge, threatened         against or affecting Guarantor or Key   Principal, which claims,  actions, suits, or         proceedings, if adversely determined (individually or in the aggregate) reasonably would         be expected to materially adversely affect the financial condition or business of Borrower,         Guarantor, or Key Principal or the condition, operation, or ownership of the Mortgaged         Property ( except claims, actions, suits, or proceedings regarding fair housing, anti­        discrimination, or equal opportunity, which shall always be deemed material).          (k)    Payment of Taxes, Assessments, and Other Charges.          Borrower confirms that:                 (1)   it has filed all federal, state, county, and municipal tax returns and reports         required to have been filed by Borrower;                 (2)   it has paid, before any fine, penalty interest, lien, or costs may be added         thereto, all taxes, governmental charges, and assessments due and payable with respect to         such returns and reports;                 (3)   there is no controversy or objection pending, or to the knowledge of         Borrower, threatened in respect of any tax returns of Borrower; and                 ( 4)  it has made adequate reserves on its books and records for all taxes that have         accrued but which are not yet due and payable.          (I)   Not a Foreign Person.          Borrower is not a "foreign person" within the meaning of Section 1445(£)(3) of the Internal  Revenue Code.          (m)   ERISA.          Borrower represents and warrants that:                (1)    Borrower is not an Employee Benefit Plan;    Multifamily Loan and Security Agreement  (Non-Recourse)                           Form 6001.NR                            Page 16  Article 4                                    06-19                      © 2019 Fannie Mae  

 

             (2)   no asset of Borrower constitutes "plan assets" (within the meaning of         Section 3(42) of ERISA and Department of Labor Regulation Section 2510.3-101) of an         Employee Benefit Plan;                (3)   no asset of Borrower is subject to any laws of any Governmental Authority         governing the assets of an Employee Benefit Plan; and                (4)   neither Borrower nor any ERISA Affiliate is subject to any obligation or        liability with respect to any ERISA Plan.         (n)   Default Under Other Obligations.               (1)   The execution, delivery, and performance of the obligations imposed on        Borrower under this Loan Agreement and the Loan Documents to which it is a party will        not cause Borrower to be in default under the provisions of any agreement, judgment, or        order to which Borrower is a party or by which Borrower is bound.               (2)   None  of Borrower, Guarantor, or Key Principal is in default under any        obligation to Lender.         ( o)  Prohibited Person.         None of Borrower, Guarantor, or Key Principal is a Prohibited Person. To Borrower's  knowledge, none of the following is a Prohibited Person:               (1)   Any Person Controlling Borrower, Guarantor, or Key Principal; or               (2)   Any Person Controlled by and having a direct or indirect ownership interest        in Borrower, Guarantor, or Key Principal.         (p)   No Contravention.         Neither the execution and delivery of this Loan Agreement and the other Loan Documents  to which Borrower is a party, nor the fulfillment of or compliance with the terms and conditions  of this Loan Agreement and the other Loan Documents to which Borrower is a party, nor the  performance of the obligations of Borrower under this Loan Agreement and the other Loan  Documents does or will conflict with or result in any breach or violation of, or constitute a default  under, any of the terms, conditions, or provisions of Borrower's organizational documents, or any  indenture, existing agreement, or other instrument to which Borrower is a party or to which  Borrower, the Mortgaged Property, or other assets of Borrower are subject.         ( q)  Lockbox Arrangement.         Borrower is not party to any type of lockbox agreement or similar cash management  arrangement that has not been approved by Lender in writing, and no direct or indirect owner of  B01Tower is party to any type oflockbox agreement or similar cash management arrangement with   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 17  Article 4                                06-19                   © 2019 Fannie Mae  

 

 respect to Rents or other income from the Mortgaged Property that has not been approved by   Lender in writing.    Section 4.02   Covenants.          (a)   Maintenance of Existence; Organizational Documents.         Borrower shall maintain its existence, its entity status, franchises, rights, and privileges  under the laws of the state of its formation or organization ( as applicable). Borrower shall continue  to be duly qualified and in good standing to transact business in each jurisdiction in which  qualification or standing is required according to applicable law to conduct its business with  respect to the Mortgaged Property and where the failure to do so would adversely affect  Borrower's operation of the Mortgaged Property or the validity, enforceability, or the ability of  Borrower to perform its obligations under this Loan Agreement or any other Loan Document.  Neither Borrower nor any partner, member, manager, officer, or director of Borrower shall:               (1)   make  or allow any material change to the organizational documents or        organizational structure of Borrower, including changes relating to the Control of        Borrower, or               (2)   file any action, complaint, petition, or other claim to:                     (A)   divide, partition, or otherwise compel the sale of the Mortgaged              Property, or                     (B)   otherwise change the Control of Borrower.         (b)   Economic Sanctions, Anti-Money Laundering, and Anti-Corruption.               (1)   Borrower, Guarantor, Key Principal, and any Person Controlling Borrower,        Guarantor, or Key Principal, or any Person Controlled by Borrower, Guarantor, or Key        Principal that also has a direct or indirect ownership interest in Borrower, Guarantor, or        Key Principal shall remain in compliance with any applicable civil or criminal laws or        regulations (including those requiring internal controls) intended to prohibit, prevent, or        regulate money laundering, drug trafficking, terrorism, or corruption, of the United States        and the jurisdiction where the Mortgaged Property is located or where the Person resides,        is domiciled, or has its principal place of business.               (2)   At no time shall Borrower, Guarantor, or Key Principal, or any Person        Controlling Borrower, Guarantor, or Key Principal, or any Person Controlled by Borrower,        Guarantor, or Key Principal that also has a direct or indirect ownership interest in        Borrower, Guarantor, or Key Principal, be a Person:                     (A)   against whom proceedings are pending for any alleged violation of              any laws described in Section 4.02(b)(l);    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 18  Article 4                                06-19                   © 2019 Fannie Mae  

 

                   (B)   that has been convicted of any violation of, has been subject to civil               penalties or Economic Sanctions pursuant to, or had any of its property seized or               forfeited under, any laws described in Section 4.02(b )(1 );                      (C)   with whom any United States Person, any entity organized under the               laws of the United States or its constituent states or territories, or any entity,               regardless of where organized, having its principal place of business within the               United States or any of its territories, is prohibited from transacting business of the              type contemplated by this Loan Agreement and the other Loan Documents under               any other Applicable Law; or                     (D)   that is deemed a Sanctioned Person.               (3)   Borrower, Guarantor, and Key Principal shall at all times remam m        compliance with any applicable Economic Sanctions laws and regulations.         (c)   Payment of Taxes, Assessments, and Other Charges.         Borrower shall file all federal, state, county, and municipal tax returns and reports required  to be filed by Borrower and shall pay, before any fine, penalty interest, or cost may be added  thereto, all taxes payable with respect to such returns and reports.         ( d)  Borrower Single Asset Status.         Until the Indebtedness is fully paid, Borrower:               (1)   shall not acquire or lease any real property, personal property, or assets        other than the Mortgaged Property;               (2)   shall not acquire, own, operate, or participate in any business other than the        leasing, ownership, management, operation, and maintenance of the Mortgaged Property;               (3)   shall not commingle its assets or funds with those of any other Person,        unless such assets or funds can easily be segregated and identified in the ordinary course        of business from those of any other Person;               ( 4)  shall maintain its financial statements, accounting records, and other        partnership, real estate investment trust, limited liability company, or corporate documents,        as the case may be, separate from those of any other Person (unless Borrower's assets are        included in a consolidated financial statement prepared in accordance with generally        accepted accounting principles);               ( 5)  shall have no material financial obligation under any indenture, mortgage,        deed of trust, deed to secure debt, loan agreement, other agreement or instrument to which        Borrower is a party or by which Borrower is otherwise bound, or to which the Mortgaged        Property is subject or by which it is otherwise encumbered, other than:   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 19  Article 4                                06-19                   © 2019 Fannie Mae  

 

                   (A)   unsecured trade payables incurred in the ordinary course of the               operation of the Mortgaged Property ( exclusive of amounts (i) to be paid out of the               Replacement Reserve Account or  Repairs Escrow Account, or (ii) for               rehabilitation, restoration, repairs, or replacements of the Mortgaged Property or               otherwise approved by Lender) so long as such trade payables (I) are not evidenced               by a promissory note, (2) are payable within sixty (60) days of the date incurred,               and (3) as of any date, do not exceed, in the aggregate, two percent (2%) of the               original principal balance of the Mortgage Loan; provided, however, that otherwise              compliant outstanding trade payables may exceed two percent (2%) up to an              aggregate amount of four percent (4%) of the original principal balance of the              Mortgage Loan for a period (beginning on or after the Effective Date) not to exceed              ninety (90) consecutive days;                     (B)   if the Security Instrument grants a lien on a leasehold estate,              Borrower's obligations as lessee under the ground lease creating such leasehold              estate; and                     (C)   obligations under the Loan Documents and obligations secured by              the Mortgaged Property to the extent permitted by the Loan Documents;               (6)   shall not assume, guaranty, or pledge its assets to secure the liabilities or        obligations of any other Person ( except in connection with the Mortgage Loan or other        mortgage loans that have been paid in full or collaterally assigned to Lender, including in        connection with any Consolidation, Extension and Modification Agreement or similar        instrument) or hold out its credit as being available to satisfy the obligations of any other        Person;               (7)   shall not make loans or advances to any other Person;               (8)   shall not enter into, or become a party to, any transaction with any Borrower        Affiliate, except in the ordinary course of business and on terms which are no more        favorable to any such Borrower Affiliate than would be obtained in a comparable arm's­       length transaction with an unrelated third party; or               (9)   shall not Divide.         (e)   ERISA.         Borrower covenants that:               (I)   no asset of Borrower shall constitute "plan assets" (within  the meaning of        Section 3(42) of ERISA and Department of Labor Regulation Section 2510.3-101) of an        Employee Benefit Plan;               (2)   no asset of Borrower shall be subject to the laws of any Governmental        Authority governing the assets of an Employee Benefit Plan; and   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 20  Article 4                                06-19                   © 2019 Fannie Mae  

 

             (3)  neither Borrower nor any ERISA Affiliate shall incur any obligation or        liability with respect to any ERISA Plan.         (f)   Notice of Litigation or Insolvency.         Borrower shall give immediate written notice to Lender of any claims, actions, suits, or  proceedings at law or in equity (including any insolvency, bankruptcy, or receivership proceeding)  by or before any Governmental Authority pending or, to Borrower's knowledge, threatened against  or affecting Borrower, Guarantor, Key Principal, or the Mortgaged Property, which claims,  actions, suits, or proceedings, if adversely determined reasonably would be expected to materially  adversely affect the financial condition or business of Borrower, Guarantor, or Key Principal, or  the condition, operation, or ownership of the Mortgaged Property (including any claims, actions,  suits, or proceedings regarding fair housing, anti-discrimination, or equal opportunity, which shall  always be deemed material).         (g)   Payment of Costs, Fees, and Expenses.         In addition to the payments specified in this Loan Agreement, Borrower shall pay, on  demand, all of Lender's out-of-pocket fees, costs, charges, or expenses (including the reasonable  fees and expenses of attorneys, accountants, and other experts) incurred by Lender in connection  with:               (1)   any amendment  to, or consent, or waiver required under, this Loan        Agreement or any of the Loan Documents (whether or not any such amendments, consents,        or waivers are entered into);               (2)   defending or participating in any litigation arising from actions by third        parties and brought against or involving Lender with respect to:                     (A)   the Mortgaged Property;                     (B)   any event, act, condition, or circumstance in connection with the              Mortgaged Property; or                     (C)   the relationship between or among Lender, Borrower, Key              Principal, and Guarantor in connection with this Loan Agreement or any of the              transactions contemplated by this Loan Agreement;               (3)   the administration or enforcement of, or preservation of rights or remedies        under, this Loan Agreement or any other Loan Documents including or in connection with        any litigation or appeals, any Foreclosure Event or other disposition of any collateral        granted pursuant to the Loan Documents; and               (4)   any Bankruptcy Event or Guarantor Bankruptcy Event.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 21  Article 4                                06-19                   © 2019 Fannie Mae  

 

       (h)   Restrictions on Distributions.         No distributions or dividends of any nature with respect to Rents or other income from the  Mortgaged Property shall be made to any Person having a direct ownership interest in Borrower if  an Event of Default has occurred and is continuing.         (i)   Lockbox Arrangement.         Borrower shall not enter into any type of lockbox agreement or similar cash management  arrangement that has not been approved by Lender in writing, and no direct or indirect owner of  Borrower shall enter into any type oflockbox agreement or similar cash management arrangement  with respect to Rents or other income from the Mortgaged Property that has not been approved by  Lender in writing. Lender's approval of any such cash management arrangement may be  conditioned upon requiring Borrower to enter into a lockbox agreement or similar cash  management arrangement with Lender in form and substance acceptable to Lender with regard to  Rents and other income from the Mortgaged Property.                      ARTICLE 5 -   THE MORTGAGE LOAN   Section 5.01   Representations and Warranties.         The representations and warranties made by Borrower to Lender in this Section 5.01 are  made as of the Effective Date and are true and correct except as disclosed on the Exceptions to  Representations and Warranties Schedule.         (a)   Receipt and Review of Loan Documents.         Borrower has received and reviewed this Loan Agreement and all of the other Loan  Documents.         (b)   No Default.         No default exists under any of the Loan Documents.         (c)   No Defenses.         The Loan Documents  are not currently subject to any right of rescission, set-off,  counterclaim, or defense by either Borrower or Guarantor, including the defense of usury, and  neither Borrower nor  Guarantor has asserted any right of rescission, set-off, counterclaim, or  defense with respect thereto.         (d)   Loan Document Taxes.         All mortgage, mortgage recording, stamp, intangible, or any other similar taxes required to  be paid by any Person under applicable law currently in effect in connection with the execution,  delivery, recordation, filing, registration, perfection, or enforcement of any of the Loan   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 22  Article 4                               06-19                    © 2019 Fannie Mae  

 

 Documents, including the Security Instrument, have been paid or will be paid in the ordinary   course of the closing of the Mortgage Loan.                                ·    Section 5.02   Covenants.          (a)  Ratification of Covenants; Estoppels; Certifications.         Borrower shall:               (1)   promptly notify Lender in writing upon any violation of any covenant set        forth in any Loan Document of which Borrower has notice or knowledge; provided,        however, any such written notice by Borrower to Lender shall not relieve Borrower of, or        result in a waiver of, any obligation under this Loan Agreement or any other Loan        Document; and               (2)   within ten (10) days after a request from Lender, provide a written        statement, signed and acknowledged by Borrower, certifying to Lender or any person        designated by Lender, as of the date of such statement:                     (A)   that the Loan Documents are unmodified and in full force and effect              ( or, if there have been modifications, that the Loan Documents are in full force and              effect as modified and setting forth such modifications);                     (B)   the unpaid principal balance of the Mortgage Loan;                     (C)   the date to which interest on the Mortgage Loan has been paid;                     (D)   that Borrower is not in default in paying the Indebtedness or in              performing or observing any of the covenants or agreements contained in this Loan              Agreement or any of the other Loan Documents ( or, if Borrower is in default,              describing such default in reasonable detail);                     (E)   whether or not there are then-existing any setoffs or defenses known              to Borrower against the enforcement of any right or remedy of Lender under the              Loan Documents; and                     (F)   any additional facts reasonably requested in writing by Lender.         (b)   Further Assurances.               (1)   Other Documents As Lender May Require.               Within ten (10) days after request by Lender, Borrower shall, subject to Section        5.02(d) below, execute, acknowledge, and deliver, at its cost and expense, all further acts,        deeds, conveyances, assignments, financing statements, transfers, documents, agreements,        assurances, and such other instruments as Lender may reasonably require from time to time   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 23  Article 5                                06-19                   © 2019 Fannie Mae  

 

       in order to better assure, grant, and convey to Lender the rights intended to be granted, now         or in the future, to Lender under this Loan Agreement and the other Loan Documents.                (2)   Corrective Actions.                Within ten (10) days after request by Lender, Borrower shall provide, or cause to        be provided, to Lender, at Borrower's cost and expense, such further documentation or        information reasonably deemed necessary or appropriate by Lender in the exercise of its        rights under the related commitment letter between Borrower and Lender or to correct        patent mistakes in the Loan Documents, the Title Policy, or the funding of the Mortgage        Loan.         ( c)  Sale of Mortgage Loan.         Borrower shall, subject to Section 5.02(d) below:               (1)   comply with the reasonable requirements of Lender or any Investor of the        Mortgage Loan or provide, or cause to be provided, to Lender or any Investor of the        Mortgage Loan within ten ( 10) days after the request, at Borrower's cost and expense, such        further documentation or information as Lender or Investor may reasonably require, in        order to enable:                     (A)   Lender to sell the Mortgage Loan to such Investor;                     (B)   Lender to obtain a refund of any commitment fee from any such              Investor; or                     (C)   any such Investor to further sell or securitize the Mortgage Loan;               (2)   ratify and affirm in writing the representations and warranties set forth in        any Loan Document as of such date specified by Lender modified as necessary to reflect        changes that have occurred subsequent to the Effective Date;               (3)   confirm that Borrower is not in default in paying the Indebtedness or in        performing or observing any of the covenants or agreements contained in this Loan        Agreement or any of the other Loan Documents (or, if Borrower is in default, describing        such default in reasonable detail); and               (4)   execute and deliver to Lender and/or any  Investor such other        documentation, including any amendments, corrections, deletions, or additions to this Loan        Agreement or other Loan Document(s) as is reasonably required by Lender or such        Investor.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 24  Article 5                                06-19                   © 2019 Fannie Mae  

 

       (d)   Limitations on Further Acts of Borrower.          Nothing in Section 5.02(b) and Section 5.02(c) shall require Borrower to do any further act  that has the effect of:                (1)   changing the economic terms of the Mortgage Loan set forth in the related        commitment letter between Borrower and Lender;                (2)  imposing on Borrower or Guarantor greater personal liability under the        Loan Documents than that set forth in the related commitment letter between Borrower and        Lender; or               (3)   materially changing the rights and obligations of Borrower or Guarantor        under the commitment letter.         (e)   Financing Statements; Record Searches.               (1)   Borrower shall pay all costs and expenses associated with:                     (A)   any filing or recording of any financing statements, including all              continuation statements, termination statements, and amendments or any other              filings related to security interests in or liens on collateral; and                     (B)   any record  searches for financing statements that Lender may              reqmre.               (2)   Borrower hereby authorizes  Lender to file any financing statements,        continuation statements, termination statements, and amendments (including an "all        assets" or "all personal property" collateral description or words of similar import) in form        and substance as Lender may require in order to protect and preserve Lender's lien priority        and security interest in the Mortgaged Property ( and to the extent Lender has filed any such        financing statements, continuation statements, or amendments prior to the Effective Date,        such filings by Lender are hereby authorized and ratified by Borrower).         (f)   Loan Document Taxes.         Borrower shall pay, on demand, any transfer taxes, documentary taxes, assessments, or  charges made by any Governmental Authority in connection with the execution, delivery,  recordation, filing, registration, perfection, or enforcement of any of the Loan Documents or the  Mortgage Loan.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 25  Article 5                               06-19                    © 2019 Fannie Mae  

 

 ARTICLE 6 -    PROPERTY USE, PRESERVATION, AND MAINTENANCE   Section 6.01    Representations and Warranties.         The representations and warranties made by Borrower to Lender in this Section 6.01 are  made as of the Effective Date and are true and correct except as disclosed on the Exceptions to  Representations and Warranties Schedule.         (a)   Compliance with Law; Permits and Licenses.               (1)   To Borrower's knowledge, all improvements to the Land and the use of the        Mortgaged Property comply with all applicable laws, ordinances, statutes, rules, and        regulations, including all applicable statutes, rules, and regulations pertaining to        requirements for equal opportunity, anti-discrimination, fair housing, and rent control, and        Borrower has no knowledge of any action or proceeding (or threatened action or        proceeding) regarding noncompliance or nonconformity with any of the foregoing.               (2)   To Borrower's knowledge, there is no evidence of any illegal activities on        the Mortgaged Property.               (3)   To Borrower's knowledge, no permits or approvals from any Governmental        Authority, other than those previously obtained and furnished to Lender, are necessary for        the commencement and completion of the Repairs or Replacements, as applicable, other        than those permits or approvals which will be timely obtained in the ordinary course of        business.               (4)   All required permits, licenses, and certificates to comply with all zoning and        land use statutes, laws, ordinances, rules, and regulations, and all applicable health, fire,        safety, and building codes, and for the lawful use and operation of the Mortgaged Property,        including certificates of occupancy, apartment licenses, or the equivalent, have been        obtained and are in full force and effect.               (5)   No portion of the Mortgaged Property has been purchased with the proceeds        of any illegal activity.         (b)   Property Characteristics.               (1)   The Mortgaged Property contains at least:                     (A)   the Property Square Footage;                     (B)   the Total Parking Spaces; and                     (C)   the Total Residential Units.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 26  Article 6                                06-19                   © 2019 Fannie Mae  

 

             (2)   No part of the Land is included or assessed under or as part of another tax         lot or parcel, and no part of any other property is included or assessed under or as part of         the tax lot or parcels for the Land.          (c)   Property Ownership.         Borrower is sole owner or ground lessee of the Mortgaged Property.          (d)   Condition of the Mortgaged Property.               (1)   Borrower has not made any claims, and to Borrower's knowledge, no claims        have been made, against any contractor, engineer, architect, or other party with respect to        the construction or condition of the Mortgaged Property or the existence of any structural        or other material defect therein; and               (2)   neither the Land nor the Improvements have sustained any damage other        than damage which has been fully repaired, or is fully insured and is being repaired in the        ordinary course of business.         (e)   Personal Property.         Borrower owns (or,  to the extent disclosed on the Exceptions to Representations and  Warranties Schedule, leases) all of the Personal Property that is material to and is used in  connection with the management, ownership, and operation of the Mortgaged Property.   Section 6.02   Covenants.         (a)   Use of Property.         From and after the Effective Date, Borrower shall not, unless required by applicable law  or Governmental Authority:               (1)   change the use of all or any part of the Mortgaged Property;               (2)   convert any individual dwelling units or common areas to commercial use,        or convert any common area or commercial use to individual dwelling units without        Lender's prior written consent;               (3)   initiate or acquiesce in a change in the zoning classification of the Land;               (4)   establish any condominium or cooperative regime with respect to the        Mortgaged Property;               (5)   subdivide the Land; or               (6)   suffer, permit, or initiate the joint assessment of any Mortgaged Property        with any other real property constituting a tax lot separate from such Mortgaged Property   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 27  Article 6                                06-19                   © 2019 Fannie Mae  

 

       which could cause the part of the Land to be included or assessed under or as part of another         tax lot or parcel, or any part of any other property to be included or assessed under or as         part of the tax lot or parcels for the Land.          (b)   Property Maintenance.         Borrower shall:               (1)   pay the expenses of operating, managing, maintaining, and repairing the        Mortgaged Property (including insurance premiums, utilities, Repairs, and Replacements)        before the last date upon which each such payment may be made without any penalty or        interest charge being added;               (2)   keep the Mortgaged Property in good repair and marketable condition        (ordinary  wear and tear excepted) (including the replacement of Personalty and Fixtures        with items of equal or better function and quality) and subject to Section 9.03(b)(3) and        Section 10.03(d) restore or repair promptly, in a good and workmanlike manner, any        damaged part of the Mortgaged Property to the equivalent of its original condition or        condition immediately prior to the damage (if improved after the Effective Date), whether        or not any insurance proceeds received upon an event of loss or any amounts received in        connection with a Condemnation Action are available to cover any costs of such restoration        or repair;               (3)   commence all Required Repairs, Additional Lender Repairs, and Additional        Lender Replacements as follows:                     (A)   with respect to any Required Repairs, promptly following the              Effective Date (subject to Force Majeure, if applicable), in accordance with the              timelines set forth on the Required Repair Schedule, or if no timelines are provided,              as soon as practical following the Effective Date;                     (B)   with respect to Additional Lender Repairs, in the event that Lender              determines that Additional Lender Repairs are necessary from time to time or              pursuant to Section 6.03(c), promptly following Lender's written notice of such              Additional Lender Repairs (subject to Force Majeure, if applicable), commence any              such Additional Lender Repairs in accordance with Lender's timelines, or if no              timelines are provided, as soon as practical;                     (C)   with respect to Additional Lender Replacements, in the event that              Lender determines that Additional Lender Replacements are necessary from time              to time or pursuant to Section 6. 03( c),  promptly following Lender's written notice              of such Additional Lender Replacements (subject to Force Majeure, if applicable),              commence any such Additional Lender Replacements in accordance with Lender's              timelines, or if no timelines are provided, as soon as practical;    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 28  Article 6                                06-19                   © 2019 Fannie Mae  

 

             (4)   make, construct, install, diligently perform, and complete all Replacements,         Repairs, Restoration, and any other work permitted under the Loan Documents:                      (A)   in a good and workmanlike manner as soon as practicable following              the commencement thereof, free and clear of any Liens, including mechanics' or              materialmen's liens and encumbrances (except Permitted Encumbrances and              mechanics' or materialmen's liens which attach automatically under the laws of              any Governmental Authority upon the commencement of any work upon, or              delivery of any materials to, the Mortgaged Property and for which Borrower is not              delinquent in the payment for any such work or materials);                     (B)   in accordance with all applicable laws, ordinances, rules, and              regulations of any Governmental Authority, including applicable building codes,              special use permits, and environmental regulations;                     (C)   m   accordance with all applicable insurance and bonding              requirements; and                     (D)   within all timeframes required by Lender, and Borrower              acknowledges that it shall be an Event of Default if Borrower abandons or ceases              work on any Repair at any time prior to the completion of the Repairs for a period              of longer than twenty (20) days ( except when Force Majeure exists and Borrower              is diligently pursuing the reinstitution of such work, provided, however, any such              abandonment or cessation shall not in any event allow the Repair to be completed              after the Completion Period, subject to Force Majeure); and               (5)   subject to the terms of Section 6.03(a), provide for professional        management of the Mortgaged Property by a residential rental property manager        satisfactory to Lender under a contract approved by Lender in writing;               (6)   give written notice to Lender of, and, unless otherwise directed in writing        by Lender, appear in and defend any action or proceeding purporting to affect the        Mortgaged Property, Lender's security for the Mortgage Loan, or Lender's rights under        this Loan Agreement; and               (7)   upon Lender's written request, submit to Lender any contracts or work        orders described in Section 13.02(b).         (c)   Property Preservation.         Borrower shall:               (1)   not commit waste or abandon or (ordinary wear and tear excepted) permit        impairment or deterioration of the Mortgaged Property;    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 29  Article 6                                06-19                   © 2019 Fannie Mae  

 

             (2)   not ( or otherwise permit any other Person to) demolish, make any change         in the unit mix, otherwise alter the Mortgaged  Property or any part of the Mortgaged         Property, or remove any Personalty or Fixtures from the Mortgaged Property, except for:         (A) alterations required in connection with Repairs and Replacements; or (B) the        replacement of tangible Personalty or Fixtures, provided (i) such Personalty or Fixtures are        replaced with items of equal or better function and quality, and (ii) such replacement does        not result in any disruption in occupancy ( other than in connection with the routine re­       leasing of units);               (3)   not engage in or knowingly permit, and shall take appropriate measures to        prevent and abate or cease and desist, any illegal activities at the Mortgaged Property that        could endanger tenants or visitors, result in damage to the Mortgaged Property, result in        forfeiture of the Land or otherwise materially impair the lien created by the Security        Instrument or Lender's interest in the Mortgaged Property;               (4)   not permit any condition to exist on the Mortgaged Property that would        invalidate any part of any insurance coverage required by this Loan Agreement; or               (5)   not subject the Mortgaged Property to any voluntary, elective, or non-       compulsory tax lien or assessment (or  opt in to any voluntary, elective, or non-compulsory        special tax district or similar regime).         ( d)  Property Inspections.         Borrower shall:               (1)   permit Lender, its agents, representatives, and designees to enter upon and        inspect the Mortgaged Property (including in connection with any Replacement, Repair, or        Restoration, or to conduct any Environmental Inspection pursuant to the Environmental        Indemnity Agreement), and shall cooperate and provide access to all areas of the        Mortgaged Property (subject to the rights of tenants under the Leases):                     (A)   during normal business hours;                     (B)   at such other reasonable time upon reasonable notice of not less than              one (1) Business Day;                     (C)   at any time when exigent circumstances exist; or                     (D)   at any time after an Event of Default has occurred and is continuing;              and               (2)   pay for reasonable costs or expenses incurred by Lender or its agents in        connection with any such inspections.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 30  Article 6                                06-19                   © 2019 Fannie Mae  

 

       ( e)  Compliance with Laws.          Borrower shall:                (1)   comply with all laws, ordinances, statutes, rules, and regulations of any         Governmental Authority and all recorded lawful covenants and agreements relating to or         affecting the Mortgaged Property, including all laws, ordinances, statutes, rules and        regulations, and covenants pertaining to construction of improvements on the Land, fair        housing, and requirements for equal opportunity, anti-discrimination, and Leases;               (2)   procure and maintain all required permits, licenses, charters, registrations,        and certificates necessary to comply with all zoning and land use statutes, laws, ordinances,        rules and regulations, and all applicable health, fire, safety, and building codes and for the        lawful use and operation of the Mortgaged Property, including certificates of occupancy,        apartment licenses, or the equivalent;               (3)   comply with all applicable laws that pertain to the maintenance and        disposition of tenant security deposits;               (4)   at all times maintain records sufficient to demonstrate compliance with the        provisions of this Section 6.02(e); and               (5)   promptly after receipt or notification thereof, provide Lender copies of any        building code or zoning violation from any Governmental Authority with respect to the        Mortgaged Property.   Section 6.03   Mortgage Loan Administration Matters Regarding the Property.         (a)   Property Management.         From and after the Effective Date, each property manager and each property management  agreement must be approved by Lender. If, in connection with the making of the Mortgage Loan,  or at any later date, Lender waives in writing the requirement that Borrower enter into a written  contract for management of the Mortgaged Property, and Borrower later elects to enter into a  written contract or change the management of the Mortgaged Property, such new property manager  or the property management agreement must be approved by Lender. As a condition to any  approval by Lender, Lender may require that Borrower and such new property manager enter into  a collateral assignment of the property management agreement on a form approved by Lender.         (b)   Subordination of Fees to Affiliated Property Managers.         Any property manager that is a Borrower Affiliate to whom fees are payable for the  management of the Mortgaged Property must enter into an assignment of management agreement  or other agreement with Lender, in a form approved by Lender, providing for subordination of  those fees and such other provisions as Lender may require.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 31  Article 6                               06-19                    © 2019 Fannie Mae  

 

       (c)   Property Condition Assessment.          If, in connection with any inspection of the Mortgaged Property, Lender determines that   the condition of the Mortgaged Property has deteriorated (ordinary wear and tear excepted) since   the Effective Date, Lender may obtain, at Borrower's expense, a property condition assessment of  the Mortgaged Property. Lender's right to obtain a property condition assessment pursuant to this   Section 6.03(c) shall be in addition to any other rights available to Lender under this  Loan  Agreement in connection with any such deterioration. Any such inspection or property condition  assessment may result in Lender requiring Additional Lender Repairs or Additional Lender  Replacements as further described in Section 13.02(a)(9)(B).                        ARTICLE 7 -   LEASES AND RENTS   Section 7 .01  Representations and Warranties.         The representations and warranties made by Borrower to Lender in this Section 7.01 are  made as of the Effective Date and are true and correct except as disclosed on the Exceptions to  Representations and Warranties Schedule.         (a)   Prior Assignment of Rents.         Borrower has not executed any:               (1)   prior assignment of Rents ( other than an assignment of Rents securing prior        indebtedness that has been paid off and discharged or will be paid off and discharged with        the proceeds of the Mortgage Loan); or               (2)   instrument which would prevent Lender from exercising its rights under this        Loan Agreement or the Security Instrument.         (b)   Prepaid Rents.         Borrower has not accepted, and does not expect to receive prepayment of, any Rents for  more than two (2) months prior to the due dates of such Rents.   Section 7.02   Covenants.         (a)   Leases.         Borrower shall:               (1)   comply with and observe Borrower's obligations under all Leases,        including Borrower's obligations pertaining to the maintenance and disposition of tenant        security deposits;    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 32  Article 6                                06-19                   © 2019 Fannie Mae  

 

             (2)   surrender possession of the Mortgaged Property, including all Leases and         all security deposits and prepaid Rents, immediately upon appointment of a receiver or         Lender's entry upon and taking of possession and control of the Mortgaged Property, as         applicable;                (3)  require that all Residential Leases have initial lease terms of not less than         six (6) months and not more than twenty-four (24) months (however, if customary in the        applicable market for properties comparable to the Mortgaged Property, Residential Leases        with terms of less than six (6) months (but in no case less than one (1) month) may be        permitted with Lender's prior written consent); notwithstanding the foregoing, Residential        Leases having initial terms of less than six (6)  months but at least one (1) month shall be        permitted so long as the total number of such Residential Leases does not exceed ten        percent (10%) of all residential units; and               (4)   promptly provide Lender a copy of any non-Residential Lease at the time        such Lease is executed (subject to Lender's consent rights for Material Commercial Leases        in Section 7.02(b)) and, upon Lender's written request, promptly provide Lender a copy of        any Residential Lease then in effect.         (b)   Commercial Leases.               (1)   With respect to Material Commercial Leases, Borrower shall not:                     (A)   enter into any Material Commercial Lease except with the prior              written consent of Lender; or                     (B)   modify the terms of, extend, or terminate any Material Commercial              Lease (including any Material Commercial Lease in existence on the Effective              Date) without the prior written consent of Lender.               (2)   With respect to any non-Material Commercial Lease, Borrower shall not:                     (A)   enter into any non-Material Commercial Lease that materially alters              the use and type of operation of the premises subject to the Lease in effect as of the              Effective Date or reduces the number or size of residential units at the Mortgaged              Property; or                     (B)   modify the terms of any non-Material Commercial Lease (including              any non-Material Commercial Lease in existence on the Effective Date) in any way              that materially alters the use and type of operation of the premises subject to such              non-Material Commercial Lease in effect as of the Effective Date, reduces the              number or size of residential units at the Mortgaged Property, or results in such              non-Material Commercial Lease being deemed a Material Commercial Lease.               (3)   With respect to any Material Commercial Lease or non-Material        Commercial Lease, Borrower shall cause the applicable tenant to provide within ten (10)   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 33  Article 7                               06-19                    © 2019 Fannie Mae  

 

       days after a request by Borrower, a certificate of estoppel, or if not provided by tenant         within such ten (10) day period, Borrower shall provide such certificate of estoppel,         certifying:                      (A)   that such Material Commercial Lease or non-Material Commercial               Lease is unmodified and in full force and effect (or  if there have been modifications,               that such Material Commercial Lease or non-Material Commercial Lease is in full               force and effect as modified and stating the modifications);                     (B)   the term of the Lease including any extensions thereto;                     (C)   the dates to which the Rent and any other charges hereunder have              been paid by tenant;                     (D)   the amount of any security deposit delivered to Borrower as              landlord;                     (E)   whether or not Borrower is in default ( or whether any event or              condition exists which, with the passage of time, would constitute an event of              default) under such Lease;                     (F)   the address to which notices to tenant should be sent; and                     (G)   any other information as may be reasonably required by Lender.         (c)   Payment of Rents.         Borrower shall:               (1)   pay to Lender upon demand all Rents after an Event of Default has occurred        and is continuing;               (2)   cooperate with Lender's efforts in connection with the assignment of Rents        set forth in the Security Instrument; and               (3)   not accept Rent under any Lease (whether a Residential Lease or a non-       Residential Lease) for more than two (2) months in advance.         (d)   Assignment of Rents.         Borrower shall not:               (1)   perform any acts or execute any instrument that would prevent Lender from        exercising its rights under the assignment of Rents granted in the Security Instrument or in        any other Loan Document; or               (2)   interfere with Lender's collection of such Rents.   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 34  Article 7                               06-19                    © 2019 Fannie Mae  

 

       (e)   Further Assignments of Leases and Rents.          Borrower shall execute and deliver any further assignments of Leases and Rents as Lender  may reasonably require.          (f)   Options to Purchase by Tenants.         No Lease (whether a Residential Lease or a non-Residential Lease) shall contain an option  to purchase, right of first refusal to purchase or right of first offer to purchase, except as required  by applicable law.   Section 7 .03  Mortgage Loan Administration Regarding Leases and Rents.         (a)   Material Commercial Lease Requirements.         Each Material Commercial Lease, including any renewal or extension of any Material  Commercial Lease in existence as of the Effective Date, shall provide, directly or pursuant to a  subordination, non-disturbance and attomment agreement approved by Lender, that:               (1)   the tenant shall, upon written notice from Lender after the occurrence of an        Event of Default, pay all Rents payable under such Lease to Lender;               (2)   such Lease and all rights of the tenant thereunder are expressly subordinate        to the lien of the Security Instrument;               (3)   the tenant shall attom to Lender and any purchaser at a Foreclosure Event        (such attomment to be self-executing and effective upon acquisition of title to the        Mortgaged Property by any purchaser at a Foreclosure Event or by Lender in any manner);               (4)   the tenant agrees to execute such further evidences of attomment as Lender        or any purchaser at a Foreclosure Event may from time to time request; and               (5)   such Lease shall not terminate as a result of a Foreclosure Event unless        Lender or any other purchaser at such Foreclosure Event affirmatively elects to terminate        such Lease pursuant to the terms of the subordination, non-disturbance and attomment        agreement.         (b)   Residential Lease Form.         All Residential Leases entered into from and after the Effective Date shall be on forms  approved by Lender.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 35  Article 7                                06-19                   © 2019 Fannie Mae  

 

     ARTICLE 8 -   BOOKS AND RECORDS; FINANCIAL REPORTING    Section 8.01   Representations and Warranties.          The representations and warranties made by Borrower to Lender in this Section 8.01 are  made as of the Effective Date and are true and correct except as disclosed on the Exceptions to  Representations and Warranties Schedule.         (a)   Financial Information.         All financial statements and data, including statements of cash flow and income and  operating expenses, that have been delivered to Lender in respect of the Mortgaged Property:               (1)   are true, complete, and correct in all material respects; and               (2)   accurately represent the financial condition of the Mortgaged Property as of        such date.         (b)   No Change in Facts or Circumstances.         All information in the Loan Application and in all financial statements, rent rolls, reports,  certificates, and other documents submitted in connection with the Loan Application are complete  and accurate in all material respects. There has been no material adverse change in any fact or  circumstance that would make any such information incomplete or inaccurate.   Section 8.02   Covenants.         (a)   Obligation to Maintain Accurate Books and Records.         Borrower shall keep and maintain at all times at the Mortgaged Property or the property  management agent's offices or Borrower's General Business Address and, upon Lender's written  request, shall make available at the Land:               (1)   complete and accurate books of account and records (including copies of        supporting bills and invoices) adequate to reflect correctly the operation of the Mortgaged        Property; and               (2)   copies of all written contracts, Leases, and other instruments that affect        Borrower or the Mortgaged Property.         (b)   Items to Furnish to Lender.         Borrower shall furnish to Lender the following, certified as true, complete, and accurate,  in all material respects, by an individual having authority to bind Borrower (or Guarantor, as  applicable), in such form and with such detail as Lender reasonably requires:    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 36  Article 8                                06-19                   © 2019 Fannie Mae  

 

             (1)   within forty-five (45) days after the end of each first, second, and third         calendar quarter, a statement ofincome and expenses for Borrower on a year-to-date basis         as of the end of each calendar quarter;                (2)   within one hundred twenty (120) days after the end of each calendar year:                      (A)   for any Borrower that is an entity, a statement of income and               expenses and a statement of cash flows for such calendar year;                      (B)   for any Borrower that is an individual, or a trust established for              estate-planning purposes, a personal financial statement for such calendar year;                      (C)  when requested in writing by Lender, balance sheet(s) showing all              assets and liabilities of Borrower and a statement of all contingent liabilities as of              the end of such calendar year;                     (D)   if an energy consumption metric for the Mortgaged Property is              required to be reported to any Governmental Authority, the Fannie Mae Energy              Performance Metrics report, as generated by ENERGY STAR® Portfolio Manager,              for the Mortgaged Property for such calendar year, which report must include the              ENERGY STAR score, the Source Energy Use Intensity (EUI), the month and year              ending period for such ENERGY STAR  score and such Source Energy Use              Intensity, and the ENERGY STAR Portfolio Manager Property  Identification              Number; provided that, if the Governmental Authority does not require the use of              ENERGY STAR Portfolio Manager for the reporting of the energy consumption              metric and Borrower does not use ENERGY STAR  Portfolio Manager, then              Borrower shall furnish to Lender the Source Energy Use Intensity for the              Mortgaged Property for such calendar year;                     (E)   a written certification ratifying and affirming that:                           (i)   Borrower has taken no action in violation of Section 4.02(d)                    regarding its single asset status;                           (ii)  Borrower has received no notice of any building code                    violation, or if Borrower has received such notice, evidence of remediation;                           (iii) Borrower has made no application for rezoning or received                    any notice that the Mortgaged Property has been or is being rezoned; and                           (iv)  Borrower has taken no action and has no knowledge of any                    action that would violate the provisions of Section l 1.02(b)(l)(F) regarding                    liens encumbering the Mortgaged Property;                     (F)   an accounting of all security deposits held pursuant to all Leases,              including the name of the institution (if any) and the names and identification   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 37  Article 8                                06-19                   © 2019 Fannie Mae  

 

             numbers of the accounts (if any) in which such security deposits are held and the               name of the person to contact at such financial institution, along with any authority               or release necessary for Lender to access information regarding such accounts; and                      (G)   written confirmation of:                            (i)   any changes occurring since the Effective Date (or  that no                     such changes have occurred since the Effective Date) in (1) the direct                     owners of Borrower, (2) the indirect owners (and any non-member                    managers) of Borrower that Control Borrower (excluding any Publicly­                   Held Corporations or Publicly-Held Trusts), or (3) the indirect owners of                    Borrower that hold twenty-five percent (25%) or more of the ownership                    interests in Borrower (excluding any Publicly-Held Corporations or                    Publicly-Held Trusts), and their respective interests;                           (ii)  the names of all officers and directors of (1) any Borrower                    which is a corporation, (2) any corporation which is a general partner of any                    Borrower which is a partnership, or (3) any corporation which is the                    managing member or non-member manager of any Borrower which is a                    limited liability company; and                           (iii) the names of all managers who are not members of (1) any                    Borrower which is a limited liability company, (2) any limited liability                    company which is a general partner of any Borrower which is a partnership,                    or (3) any limited liability company which is the managing member or non­                   member manager of any Borrower which is a limited liability company; and                     (H)   if not already provided pursuant to Section 8.02(b )(2)(A) above, a              statement of income and expenses for Borrower's operation of the Mortgaged              Property on a year-to-date basis as of the end of each calendar year;               (3)   within forty-five (45) days after the end of each first, second, and third        calendar quarter and within one hundred twenty (120) days after the end of each calendar        year, and at any other time upon Lender's written request, a rent schedule for the        Mortgaged Property showing the name of each tenant and for each tenant, the space        occupied, the lease expiration date, the rent payable for the current month, the date through        which rent has been paid, and any related information requested by Lender; and               (4)   upon Lender's written request (but, absent an Event of Default, no more        frequently than once in any six (6) month period):                     (A)   any item described in Section 8.02(b)(l) or Section 8.02(b)(2) for              Borrower, certified as true, complete, and accurate by an individual having              authority to bind Borrower;    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page38  Article 8                               06-19                    © 2019 Fannie Mae  

 

                   (B)   a property management or leasing report for the Mortgaged               Property, showing the number of rental applications received from tenants or               prospective tenants and deposits received from tenants or prospective tenants, and               any other information requested by Lender;                      (C)   a statement of income and expenses for Borrower's operation of the              Mortgaged Property on a year-to-date basis as of the end of each month for such              period as requested by Lender, which statement shall be delivered within thirty (30)              days after the end of such month requested by Lender;                     (D)   a statement of real estate owned directly or indirectly by Borrower              and Guarantor for such period as requested by Lender, which statement(s) shall be              delivered within thirty (30) days after the end of such month requested by Lender;                     (E)   for any Guarantor, by the later of thirty (30) days after the date              requested by Lender and the date one hundred twenty (120) days after the end of              the most recent calendar year:                           (i)   that is an entity, a statement of income and expenses and a                    statement of cash flows for such calendar year;                           (ii)  that is an individual, or a trust established for estate-planning                    purposes, a personal financial statement for such calendar year; and                           (iii) balance sheet(s) showing all assets and liabilities of                    Guarantor and a statement of all contingent liabilities as of the end of such                    calendar year; and                     (F)   a statement that identifies:                           (i)   the direct owners of Borrower and their respective interests;                           (ii)  the indirect owners  (and any non-member managers) of                    Borrower  that Control Borrower  (excluding any Publicly-Held                    Corporations or Publicly-Held Trusts) and their respective interests; and                           (iii) the indirect owners of Borrower that hold twenty-five                    percent (25%) or more of the ownership interests in Borrower ( excluding                    any Publicly-Held Corporations or Publicly-Held Trusts) and their                    respective interests.         (c)   Audited Financials.         In the event Borrower or Guarantor receives or obtains any audited financial statements  and such financial statements are required to be delivered to Lender under Section 8.02(b),    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 39  Article 8                               06-19                    © 2019 Fannie Mae  

 

 Borrower shall deliver or cause to be delivered to Lender the audited versions of such financial   statements.          (d)   Delivery of Books and Records.          If an Event of Default has occurred and is continuing, Borrower shall deliver to Lender,   upon written demand, all books and records relating to the Mortgaged Property or its operation.   Section 8.03    Mortgage Loan Administration Matters Regarding Books and Records  and Financial Reporting.         (a)   Lender's Right to Obtain Audited Books and Records.         Lender may require that Borrower's or Guarantor's books and records be audited, at  Borrower's expense, by an independent certified public accountant selected by Lender in order to  produce or audit any statements, schedules, and reports of Borrower, Guarantor, or the Mortgaged  Property required by Section 8.02, if:               (1)   Borrower or Guarantor fails to provide in a timely manner the statements,        schedules, and reports required by Section 8.02 and, thereafter, Borrower or Guarantor fails        to provide such statements, schedules, and reports within the cure period provided in        Section 14.0l(c);               (2)   the statements, schedules, and reports submitted to Lender pursuant to        Section 8.02 are not full, complete, and accurate in all material respects as determined by        Lender and, thereafter, Borrower or Guarantor fails to provide such statements, schedules,        and reports within the cure period provided in Section 14.0l(c); or               (3)   an Event of Default has occurred and is continuing.         Notwithstanding the foregoing, the ability of Lender to require the delivery of audited  financial statements shall be limited to not more than once per Borrower's fiscal year so long as  no Event of Default has occurred during such fiscal year ( or any event which, with the giving of  written notice or the passage of time, or both, would constitute an Event of Default has occurred  and is continuing). Borrower shall cooperate with Lender in order to satisfy the provisions of this  Section 8.03(a). All related costs and expenses of Lender shall become due and payable by  Borrower within ten (10) Business Days after demand therefor.         (b)   Credit Reports; Credit Score.         No more often than once in any twelve (12) month period, Lender is authorized to obtain  a credit report (if applicable) on Borrower or Guarantor, the cost of which report shall be paid by  Borrower. Lender is authorized to obtain a Credit Score (if applicable) for Borrower or Guarantor  at any time at Lender's expense.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 40  Article 8                                06-19                   © 2019 Fannie Mae  

 

                         ARTICLE 9 -    INSURANCE   Section 9.01   Representations and Warranties.         The representations and warranties made by Borrower to Lender in this Section 9.01 are  made as of the Effective Date and are true and correct except as disclosed on the Exceptions to  Representations and Warranties Schedule.         (a)   Compliance with Insurance Requirements.         Borrower is in compliance with Lender's insurance requirements (or  has obtained a written  waiver from Lender for any non-compliant coverage) and has timely paid all premiums on all  required insurance policies.         (b)   Property Condition.               (1)   The Mortgaged Property has not been damaged by fire, water, wind, or other        cause ofloss; or               (2)   if previously damaged, any previous damage to the Mortgaged Property has        been repaired and the Mortgaged Property has been fully restored.   Section 9.02   Covenants.         (a)   Insurance Requirements.               (1)   As required by Lender and applicable law, and as may be modified from        time to time, Borrower shall:                     (A)   keep the Improvements insured at all times against any hazards,              which insurance shall include coverage against loss by fire and all other perils              insured by the "special causes ofloss" coverage form, general boiler and machinery              coverage, business income coverage, and flood (if any of the Improvements are              located in an area identified by the Federal Emergency Management Agency (or              any successor) as an area having special flood hazards and to the extent flood              insurance is available in that area), and may include sinkhole insurance, mine              subsidence insurance, earthquake insurance, terrorism insurance, windstorm              insurance and, if the Mortgaged Property does not conform to applicable building,              zoning, or land use laws, ordinance and law coverage;                     (B)   maintain at all times commercial general liability insurance,              workmen's compensation insurance, and such other liability, errors and omissions,              and fidelity insurance coverage; and    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 41  Article 9                               06-19                    © 2019 Fannie Mae  

 

                   (C)  maintain builder's risk and public liability insurance, and other              insurance in connection with completing the Repairs or Replacements, as              applicable.         (b)   Delivery of Policies, Renewals, Notices, and Proceeds.         Borrower shall:               (1)   cause all insurance policies (including any policies not otherwise required        by  Lender) which can be endorsed with standard non-contributing, non-reporting        mortgagee clauses making loss payable to Lender (or Lender's assigns) to be so endorsed;               (2)   promptly deliver to Lender a copy of all renewal and other notices received        by Borrower with respect to the policies and all receipts for paid premiums;               (3)   deliver evidence, in form and content acceptable to Lender, that each        required insurance policy under this Article 9 has been renewed not less than fifteen (15)        days prior to the applicable expiration date, and (if such evidence is other than an original        or duplicate original of a renewal policy) deliver the original or duplicate original of each        renewal policy (or  such other evidence of insurance as may be required by or acceptable to        Lender) in form and content acceptable to Lender within ninety (90) days after the        applicable expiration date of the original insurance policy;               (4)   provide immediate written notice to the insurance company and to Lender        of any event ofloss;               (5)   execute such further evidence of assignment of any insurance proceeds as        Lender may require; and               (6)   provide immediate written notice to Lender of Borrower's receipt of any        insurance proceeds under any insurance policy required by Section 9.02(a)(l) above and,        if requested by Lender, deliver to Lender all of such proceeds received by Borrower to be        applied by Lender in accordance with this Article 9.   Section 9.03   Mortgage Loan Administration Matters Regarding Insurance         (a)   Lender's Ongoing Insurance Requirements.         Borrower acknowledges that Lender's insurance requirements may change from time to  time. All insurance policies and renewals of insurance policies required by this Loan Agreement  shall be:               (1)   in the form and with the terms required by Lender;               (2)   in such amounts, with such maximum deductibles and for such periods       required by Lender; and   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 42  Article 9                               06-19                    © 2019 Fannie Mae  

 

             (3)   issued by insurance companies satisfactory to Lender.         BORROWER     ACKNOWLEDGES      THAT   ANY   FAILURE  OF  BORROWER     TO  COMPLY    WITH  THE REQUIREMENTS     SET FORTH  IN SECTION  9.02(a) OR SECTION  9.02(b)(3) ABOVE   SHALL   PERMIT  LENDER    TO  PURCHASE    THE  APPLICABLE  INSURANCE    AT BORROWER'S     COST.  SUCH  INSURANCE   MAY,  BUT  NEED   NOT,  PROTECT BORROWER'S      INTERESTS.  THE  COVERAGE THAT    LENDER PURCHASES  MAY   NOT  PAY  ANY  CLAIM  THAT  BORROWER     MAKES  OR  ANY  CLAIM  THAT  IS  MADE AGAINST BORROWER IN       CONNECTION WITH THE MORTGAGED PROPERTY.  IF  LENDER   PURCHASES    INSURANCE    FOR  THE   MORTGAGED     PROPERTY    AS  PERMITTED HEREUNDER, BORROWER WILL BE RESPONSIBLE FOR THE COSTS             OF  THAT INSURANCE, INCLUDING INTEREST AT THE DEFAULT RATE AND ANY OTHER  CHARGES   LENDER MAY IMPOSE IN     CONNECTION WITH THE PLACEMENT OF       THE  INSURANCE    UNTIL  THE   EFFECTIVE   DATE  OF  THE  CANCELLATION     OR  THE  EXPIRATION   OF  THE  INSURANCE.   THE  COSTS   OF THE  INSURANCE   SHALL  BE  ADDED   TO BORROWER'S TOTAL OUTSTANDING BALANCE          OR OBLIGATION AND  SHALL CONSTITUTE ADDITIONAL INDEBTEDNESS.        THE COSTS OF THE INSURANCE  MAY   BE MORE   THAN  THE  COST  OF INSURANCE   BORROWER    MAY   BE ABLE  TO  OBTAIN   ON  ITS OWN.    BORROWER     MAY   LATER   CANCEL   ANY   INSURANCE  PURCHASED     BY  LENDER,   BUT   ONLY   AFTER   PROVIDING   EVIDENCE    THAT  BORROWER     HAS   OBTAINED     INSURANCE    AS  REQUIRED    BY   THIS  LOAN  AGREEMENT AND THE OTHER LOAN DOCUMENTS.         (b)   Application of Proceeds on Event of Loss.               (1)   Upon an event ofloss, Lender may, at Lender's option:                     (A)   hold such proceeds in the Restoration Reserve Account to be applied              to reimburse Borrower for the cost of Restoration (in accordance with Article 13              and Lender's then-current policies relating to the Restoration of similar multifamily              residential properties); or                     (B)   apply such proceeds to the payment of the Indebtedness, whether or              not then due; provided, however, Lender shall not apply insurance proceeds to the              payment of the Indebtedness and shall permit Restoration pursuant to Section              9.03(b )(1 )(A) if all of the following conditions are met:                           (i)   no Event of Default has occurred and is continuing (or  any                    event which, with the giving of written notice or the passage of time, or                    both, would constitute an Event of Default has occurred and is continuing);                           (ii)  Lender  determines that the combination of insurance                    proceeds and amounts provided by Borrower will be sufficient funds to                    complete the Restoration;    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 43  Article 9                               06-19                    © 2019 Fannie Mae  

 

                         (iii) Lender determines that the Net Cash Flow generated by the                     Mortgaged Property after completion of the Restoration will be sufficient                     to support a debt service  coverage ratio not less than the debt service                     coverage ratio immediately prior to the event of loss, but in no event less                     than 1.0x (the debt service coverage ratio shall be calculated on a thirty (30)                     year amortizing basis (if applicable, on a proforma basis approved by                     Lender) in all events and shall include all operating costs and other                     expenses, Imposition Deposits, deposits to Collateral Accounts, and                     Mortgage Loan repayment obligations);                            (iv)  Lender  determines that the  Restoration will be                     completed before the earlier of (1) one year before the stated Maturity Date,                    or (2) one year after the date of the loss or casualty; and                            (v)  Borrower provides Lender, upon written request, evidence                    of the availability during and after the Restoration of the insurance required                    to be maintained by Borrower pursuant to this Loan Agreement.               (2)   Notwithstanding the foregoing, if any loss is estimated to be in an amount        equal to or less than $75,000, Lender shall not exercise its rights and remedies as power­       of-attomey herein and shall allow Borrower to make proof of loss, to adjust and        compromise any claims under policies of property damage insurance, to appear in and        prosecute any action arising from such policies of property damage insurance, and to        collect and receive the proceeds of property damage insurance; provided that each of the        following conditions shall be satisfied:                     (A)   Borrower shall immediately notify Lender of the casualty giving rise              to the claim;                     (B)   no Event of Default has occurred and is continuing (or any event              which, with the giving of written notice or the passage of time, or both, would              constitute an Event of Default has occurred and is continuing);                     (C)   the Restoration will be completed before the earlier of (i) one year              before the stated Maturity Date, or (ii) one year after the date of the loss or casualty;                     (D)   Lender determines that the combination of insurance proceeds and              amounts provided by Borrower will be sufficient funds to complete the Restoration;                     (E)   all proceeds of property damage insurance shall be issued in the              form of joint checks to Borrower and Lender;                     (F)   all proceeds of property damage insurance shall be applied to the              Restoration;    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 44  Article 9                                06-19                   © 2019 Fannie Mae  

 

                   (G)   Borrower shall deliver to Lender evidence satisfactory to Lender of              completion of the Restoration and obtainment of all lien releases;                      (H)   Borrower shall have complied to Lender's satisfaction with the              foregoing requirements on any prior claims subject to this provision, if any; and                     (I)   Lender shall have the right to inspect the Mortgaged Property              (subject to the rights of tenants under the Leases).               (3)   If Lender elects to apply insurance proceeds to the Indebtedness in        accordance with the terms of this Loan Agreement, Borrower shall not be obligated to        restore or repair the Mortgaged Property. Rather, Borrower shall restrict access to the        damaged portion of the Mortgaged Property and, at its expense and regardless of whether        such costs are covered by insurance, clean up any debris resulting from the casualty event,        and, if required or otherwise permitted by Lender, demolish or raze any remaining part of        the damaged Mortgaged Property to the extent necessary to keep and maintain the        Mortgaged Property in a safe, habitable, and marketable condition. Nothing in this Section        9.03(b) shall affect any of Lender's remedial rights against Borrower in connection with a        breach by Borrower of any of its obligations under this Loan Agreement or under any Loan        Document, including any failure to timely pay Monthly Debt Service Payments or maintain        the insurance coverage(s) required by this Loan Agreement.         (c)   Payment Obligations Unaffected.         The application of any insurance proceeds to the Indebtedness shall not extend or postpone  the Maturity Date, or the due date or the full payment of any Monthly Debt Service Payment,  Monthly Replacement Reserve Deposit, or any other installments referred to in this Loan  Agreement or in any other Loan Document. Notwithstanding the foregoing, if Lender applies  insurance proceeds to the Indebtedness in connection with a casualty of less than the entire  Mortgaged Property, and after such application of proceeds the debt service coverage ratio (as  determined by Lender) is less than 1.25x based on the then-applicable Monthly Debt Service  Payment and the anticipated ongoing Net Cash Flow of the Mortgaged Property after such casualty  event, then Lender may, at its discretion, permit an adjustment to the Monthly Debt Service  Payments that become due and owing thereafter, based on Lender's then-current underwriting  requirements. In no event shall the preceding sentence obligate Lender to make any adjustment to  the Monthly Debt Service Payments.         (d)   Foreclosure Sale.         If the Mortgaged Property is transferred pursuant to a Foreclosure Event or Lender  otherwise acquires title to the Mortgaged Property, Borrower acknowledges that Lender shall  automatically succeed to all rights of Borrower in and to any insurance policies and unearned  insurance premiums applicable to the Mortgaged Property and in and to the proceeds resulting  from any damage to the Mortgaged Property prior to such Foreclosure Event or such acquisition.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 45  Article 9                               06-19                    © 2019 Fannie Mae  

 

      (e)   Appointment of Lender as Attorney-In-Fact.         Borrower hereby authorizes and appoints Lender as attorney-in-fact pursuant to Section   14.03(c).                         ARTICLE 10    - CONDEMNATION   Section 10.01  Representations and Warranties.         The representations and warranties made by Borrower to Lender in this Section 10.01 are  made as of the Effective Date and are true and correct except as disclosed on the Exceptions to  Representations and Warranties Schedule.         (a)   Prior Condemnation Action.         No part of the Mortgaged Property has been taken in connection with a Condemnation  Action.         (b)   Pending Condemnation Actions.         No Condemnation Action is pending or, to Borrower's knowledge, is threatened for the  partial or total condemnation or taking of the Mortgaged Property.   Section 10.02  Covenants.         (a)   Notice of Condemnation.         Borrower shall:               (1)   promptly notify Lender of any Condemnation Action of which Borrower        has knowledge;               (2)   appear in and prosecute or defend, at its own cost and expense, any action        or proceeding relating to any Condemnation Action, including any defense of Lender's        interest in the Mortgaged Property tendered to Borrower by Lender, unless otherwise        directed by Lender in writing; and               (3)   execute such further evidence of assignment of any condemnation award in        connection with a Condemnation Action as Lender may require.         (b)   Condemnation Proceeds.         Borrower shall pay to Lender all awards or proceeds of a Condemnation Action promptly  upon receipt.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 46  Article 9                               06-19                    © 2019 Fannie Mae  

 

Section 10.03  Mortgage Loan Administration Matters Regarding Condemnation.         (a)   Application of Condemnation Awards.         Lender may apply any awards or proceeds of a Condemnation Action, after the deduction  of Lender's expenses incurred in the collection of such amounts, to:               (1)   the restoration or repair of the Mortgaged Property, if applicable;               (2)   the payment of the Indebtedness, with the balance, if any, paid to Borrower;        or               (3)   Borrower.         (b)   Payment Obligations Unaffected.         The application of any awards or proceeds of a Condemnation Action to the Indebtedness  shall not extend or postpone the Maturity Date, or the due date or the full payment of any Monthly  Debt Service Payment, Monthly Replacement Reserve Deposit, or any other installments referred  to in this Loan Agreement or in any other Loan Document.         (c)   Appointment of Lender as Attorney-In-Fact.         Borrower hereby authorizes and appoints Lender as attorney-in-fact pursuant to Section  14.03(c).         (d)   Preservation of Mortgaged Property.         If a Condemnation Action results in or from damage to the Mortgaged Property and Lender  elects to apply the proceeds or awards from such Condemnation Action to the Indebtedness in  accordance with the terms of this Loan Agreement, Borrower shall not be obligated to restore or  repair the Mortgaged Property. Rather, Borrower shall restrict access to any portion of the  Mortgaged Property which has been damaged or destroyed in connection with such Condemnation  Action and, at Borrower's expense and regardless of whether such costs are covered by insurance,  clean up any debris resulting in or from the Condemnation Action, and, if required by any  Governmental Authority or otherwise permitted by Lender, demolish or raze any remaining part  of the damaged Mortgaged Property to the extent necessary to keep and maintain the Mortgaged  Property in a safe, habitable, and marketable condition. Nothing in this Section 10.03(d) shall  affect any of Lender's remedial rights against Borrower in connection with a breach by Borrower  of any of its obligations under this Loan Agreement or under any Loan Document, including any  failure to timely pay Monthly Debt Service Payments or maintain the insurance coverage(s)  required by this Loan Agreement.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 47  Article 10                              06-19                    © 2019 Fannie Mae  

 

         ARTICLE 11    - LIENS, TRANSFERS, AND ASSUMPTIONS   Section 11.01  Representations and Warranties.         The representations and warranties made by Borrower to Lender in this Section 11.01 are  made as of the Effective Date and are true and correct except as disclosed on the Exceptions to  Representations and Warranties Schedule.         (a)   No Labor or Materialmen's Claims.         All parties furnishing labor and materials on behalf of Borrower have been paid in full.  There are no mechanics' or materialmen's liens (whether filed or untiled) outstanding for work,  labor, or materials ( and no claims or work outstanding that under applicable law could give rise to  any such mechanics' or materialmen's liens) affecting the Mortgaged Property, whether prior to,  equal with, or subordinate to the lien of the Security Instrument.         (b)   No Other Interests.         No Person:               (1)   other than Borrower has any  possessory ownership or interest in the        Mortgaged Property or right to occupy the same except under and pursuant to the        provisions of existing Leases, the material terms of all such Leases having been previously        disclosed in writing to Lender; or               (2)   has an option, right of first refusal, or right of first offer ( except as required        by applicable law) to purchase the Mortgaged Property, or any interest in the Mortgaged        Property.   Section 11.02  Covenants.         (a)   Liens; Encumbrances.         Borrower shall not permit the grant, creation, or existence of any Lien, whether voluntary,  involuntary, or by operation of law, on all or any portion of the Mortgaged Property (including  any voluntary, elective, or non-compulsory tax lien or assessment pursuant to a voluntary, elective,  or non-compulsory special tax district or similar regime) other than:               (1)   Permitted Encumbrances;               (2)   the creation of:                     (A)   any tax lien, municipal lien, utility lien, mechanics' lien,              materialmen's lien, or judgment lien against the Mortgaged Property if bonded off,              released ofrecord, or otherwise remedied to Lender's satisfaction within sixty (60)    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 48  Article 11                              06-19                    © 2019 Fannie Mae  

 

             days after the earlier of the date Borrower has actual notice or constructive notice               of the existence of such lien; or                      (B)   any mechanics' or materialmen's liens which attach automatically               under the laws of any Governmental Authority upon the commencement of any               work upon, or delivery of any materials to, the Mortgaged Property and for which               Borrower is not delinquent in the payment for any such work or materials; and                (3)  the lien created by the Loan Documents.         (b)   Transfers.               (1)   Mortgaged Property.               Borrower shall not Transfer, or cause or permit a Transfer of, all or any part of the        Mortgaged Property (including any interest in the.Mortgaged Property) other than:                     (A)   a Transfer to which Lender has consented in writing;                     (B)   Leases permitted pursuant to the Loan Documents;                     (C)   the grant of an easement solely for telephone, cable and/or internet              services, provided such easement is a standard form of telephone, cable and/or              internet service easement used by nationally or regionally recognized telephone,              cable and/or internet service providers;                     (D)   a Transfer of obsolete or worn out Personalty or Fixtures that are              contemporaneously replaced by items of equal or better function and quality which              are free of Liens (other than those created by the Loan Documents);                     (E)   the grant of an easement, servitude or restrictive covenant to which              Lender has consented, and Borrower has paid to Lender, upon demand, all costs              and expenses incurred by Lender in connection with reviewing Borrower's request;              provided, however, that Borrower shall be permitted to grant an easement over the              Mortgaged Property to a publicly operated or private franchise utility provided that              each of the following conditions is satisfied:                          (i)    Borrower provides Lender with at least 30 days prior written                    notice of the proposed easement;                          (ii)   no Event of Default has occurred and is continuing, and no                    event or condition has occurred and is continuing that, with the giving of                   written notice or the passage of time, or both, would become an Event of                   Default;                          (iii)  prior to the grant, Lender determines, in its sole discretion,                   (aa) that the easement will not materially affect the operation, marketability,   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 49  Article 11                              06-19                    © 2019 Fannie Mae  

 

                   or value of the Mortgaged Property; the health or safety of tenants or                    visitors; Lender's interest in the Mortgaged Property; or Borrower's access                    to the Mortgaged Property or the use of any easements or amenities which                    benefit the Mortgaged Property and (bb) that the easement will not result in                    the loss of the use of any residential or commercial units;                           (iv)   Borrower has paid to Lender all costs and expenses incurred                    by Lender in connection with reviewing Borrower's request;                           (v)    at Borrower's expense, Borrower delivers an endorsement to                    the Lender's Loan Policy and an update to the survey, if applicable, to                    reflect the easement; and                           (vi)  Lender  has reviewed  and  approved the documents                    evidencing the proposed easement, and Borrower delivers to Lender                    recorded copies of the easement and signed copies of any unrecorded                    documents within ten (10) days following the granting of the easement.          Any consideration paid to Borrower under this Section l l .02(b )(1 )(E) shall be distributed  as follows:                          (AA)   first, to payment of all of Lender's out of pocket expenses,                   including but not limited to attorneys' fees, as well as recording and title                   costs;                          (BB)   second, to restoration or repa1r of the remainder of the                   Mortgaged Property, if applicable;                          (CC)   third, an amount not to exceed $250 per individual dwelling                   (after deducting Borrower's cost and expense incurred in connection with                   the granting of such easement) unit to Borrower for its own account; and                          (DD)   fourth, any remaining funds will be deposited into the                         Replacement Reserve.                     (F)   a lien permitted pursuant to Section 1 l .02(a) of this  Loan              Agreement; or                     (G)   the conveyance of the Mortgaged Property following a Foreclosure              Event.               (2)   Interests in Borrower, Key Principal, or Guarantor.               Other than a Transfer to which Lender has consented in writing, Borrower shall not        Transfer, or cause or permit to be Transferred:                     (A)   any direct or indirect ownership interest in Borrower, Key Principal,              or Guarantor (if applicable) if such Transfer would cause a change in Control;    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 50  Article 11                              06-19                    © 2019 Fannie Mae  

 

                   (B)   a direct or indirect Restricted Ownership Interest in Borrower, Key               Principal, or Guararttor (if applicable);                      (C)   fifty percent (50%) or more of Key Principal's or Guarantor's direct               or indirect ownership interests in Borrower that existed on the Effective Date               (individually or on an aggregate basis);                      (D)   the economic benefits or rights to cash flows attributable to any              ownership interests in Borrower, Key Principal, or Guarantor (if applicable)              separate from the Transfer of the underlying ownership interests if the Transfer of              the underlying ownership interest is prohibited by this Loan Agreement; or                     (E)   a Transfer to a new key principal or new guarantor (if such new key              principal or guarantor is an entity), which entity has an organizational existence              termination date that ends before the Maturity Date.         Notwithstanding the foregoing, if a Publicly-Held Corporation or a Publicly-Held Trust        Controls Borrower, Key Principal, or Guarantor, or owns a direct or indirect Restricted        Ownership Interest in Borrower, Key Principal, or Guarantor, a Transfer of any ownership        interests in such Publicly-Held Corporation or Publicly-Held Trust shall not be prohibited        under this Loan Agreement as long as (i) such Transfer does not result in a conversion of        such Publicly-Held Corporation or Publicly-Held Trust to a privately held entity, and (ii)        Borrower provides written notice to Lender not later than thirty (30) days thereafter of any        such Transfer that results in any Person owning ten percent (10%) or more of the ownership        interests in such Publicly-Held Corporation or Publicly-Held Trust.               (3)   Transfers of Non-Controlling Interests.               Transfers of direct or indirect limited partnership or non-managing member        interests in Borrower that result in a Transfer of fifty percent (50%) or more of the limited        partnership or non-managing membership interests shall be consented to by Lender if such        Transfer satisfies the following conditions:                     (A)   Key Principal or Guarantor (as applicable) Controls Borrower with              the same rights and abilities as Key Principal or Guarantor (as applicable) Controls              Borrower immediately prior to the date of such Transfer;                     (B)   such Transfer satisfies the requirements of Section 1 l.02(b)(2)(C);                     (C)   Borrower shall provide Lender not less than thirty (30) days prior              written notice of the proposed Transfer and obtain Lender's approval;                     (D)   Borrower shall provide with its notice to Lender an organizational              chart reflecting, and all organizational documents relevant to, the proposed              Transfer;    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 51  Article 11                               06-19                   © 2019 Fannie Mae  

 

                   (E)   Borrower shall provide with its notice to Lender a certification that               no change of Control of Borrower or Key Principal shall occur as a result of such               Transfer;                      (F)   the transferee shall not be, as of the date of the Transfer, a Prohibited              Person if, as a result of the Transfer, the transferee will own twenty­             five percent (25%) or more of the direct or indirect ownership interests in Borrower              (or, if any other investor will own twenty-five percent (25%) or more of the direct              or  indirect ownership interests in Borrower that did not own twenty­             five percent (25%) or more before the Transfer, such investor shall not, as of the              date of the Transfer, be a Prohibited Person);                     (G)   Borrower shall pay to Lender:                           (i)   concurrently with its notice to Lender, the Review Fee plus                    a Transfer Fee of$25,000; and                           (ii)  upon  demand, any out-of-pocket costs and expenses,                    including reasonable attorneys' fees and expenses, incurred by Lender in                    connection with its review of the Transfer request; and                     (H)   Borrower  shall execute upon demand  such documents or              certifications as Lender reasonably requires in order to confirm the post-transfer              ownership structure, compliance with the stated conditions, and any other relevant              factual matter.               (4)   Name Change or Entity Conversion.               Lender shall consent to Borrower changing its name, changing its jurisdiction of        organization, or converting from one type of legal entity into another type of legal entity        for any lawful purpose, provided that:                     (A)   Lender receives written notice at least thirty (30) days prior to such              change or conversion, which notice shall include organizational charts that reflect              the structure of Borrower both prior to and subsequent to such name change or              entity conversion;                     (B)   such Transfer is not otherwise prohibited under the provisions of              Section l 1.02(b)(2);                      (C)   Borrower executes an amendment to this Loan Agreement and any              other Loan Documents required by Lender documenting the name change or entity              convers10n;                     (D)   Borrower agrees and acknowledges, at Borrower's expense, that (i)              Borrower will execute and record in the land records any instrument required by   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 52  Article 11                               06-19                   © 2019 Fannie Mae  

 

             the Property Jurisdiction to be recorded to evidence such name change or entity               conversion (or  provide Lender with written confirmation from the title company               (via electronic mail or letter) that no such instrument is required), (ii) Borrower will               execute any additional documents required by Lender, including the amendment to               this Loan Agreement, and allow such documents to be recorded or filed in the land               records of the Property Jurisdiction, (iii) at Lender's sole discretion, Lender will               obtain a "date down" endorsement to the Lender's Title Policy (or obtain a new               Title Policy if a "date down" endorsement is not available in the Property               Jurisdiction), evidencing title to the Mortgaged Property being in the name of the               successor entity and the Lien of the Security Instrument against the Mortgaged              Property, and (iv) Lender will file any required UCC-3 financing statement and              make any other filing deemed necessary to maintain the priority of its Liens on the              Mortgaged Property; and                     (E)   no later than ten ( 10) days subsequent to such name change or entity              conversion, Borrower shall provide Lender (i) the documentation filed with the              appropriate office in Borrower's state of formation evidencing such name change              or entity conversion, (ii) copies of the organizational documents of Borrower,              including any amendments, filed with the appropriate office in Borrower's state of              formation reflecting the post-conversion Borrower name, form of organization, and              structure, and (iii) if available, new certificates of good standing or valid formation              for Borrower.               (5)   No Delaware Statutory Trust or Series LLC Conversion.               Notwithstanding any provisions herein to the contrary, no Borrower, Guarantor, or        Key Principal shall  convert to a Delaware Statutory Trust or a series limited liability        company.               (6)   Plans of Division.               Borrower shall not Divide. Lender shall consent to a Division by Guarantor or Key        Principal provided that:                     (A)   Lender receives written notice at least thirty (30) days prior to the              effective date of such Division, which notice shall include (i) a certification              acceptable to Lender that such Division is not otherwise prohibited under the              provisions of Article 11, (ii) a copy of the plan of division, and (iii) organizational              charts that reflect the organizational structure of Borrower, Guarantor, and Key              Principal both prior to and subsequent to such Division;                     (B)   no later than ten (10) days subsequent to such Division, Borrower              shall provide Lender (i) the certificate of division or such other documentation filed              with the appropriate office evidencing such Division, (ii) copies of the              organizational documents of Borrower (if amended), Guarantor, and Key Principal,   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 53  Article 11                               06-19                   © 2019 Fannie Mae  

 

             including any amendments thereto, that reflect the post-Division organizational               structure, and (iii) new certificates of good standing or valid formation for Borrower               (if amended), Guarantor, and Key Principal; and                      (C)   Borrower has paid to Lender, upon demand, all costs and expenses               incurred by Lender in connection with reviewing Borrower's request (including              reasonable attorneys' fees and a $25,000 review fee, which shall be in lieu of any               other Review Fee or Transfer Fee).         (c)   No Other Indebtedness.         Other than the Mortgage Loan, Borrower shall not incur or be obligated at any time with  respect to any loan or other indebtedness ( except trade payables as otherwise permitted in this  Loan Agreement), including any indebtedness secured by a Lien on, or the cash flows from, the  Mortgaged Property.         (d)   No Mezzanine Financing or Preferred Equity.         Neither Borrower nor any direct or indirect owner of Borrower shall: (1) incur any  Mezzanine Debt other than Permitted Mezzanine Debt; (2) issue any Preferred Equity other than  Permitted Preferred Equity; or (3) incur any similar indebtedness or issue any similar equity.   Section 11.03  Mortgage Loan Administration Matters Regarding Liens, Transfers, and  Assumptions.         (a)   Assumption of Mortgage Loan.         Lender shall consent to a Transfer of the Mortgaged Property to and an assumption of the  Mortgage Loan by a new borrower if each of the following conditions is satisfied prior to the  Transfer:               (1)   Borrower has submitted to Lender all information required by Lender to        make the determination required by this Section 1 l.03(a);               (2)   no Event of Default has occurred and is continuing, and no event which,        with the giving of written notice or the passage of time, or both, would constitute an Event        of Default has occurred and is continuing;               (3)   Lender determines that:                     (A)   the proposed new borrower, new key principal, and any other new              guarantor fully satisfy all of Lender's then-applicable borrower, key principal, or              guarantor eligibility, credit, management, and other loan underwriting standards,              which shall include an analysis of (i) the previous relationships between Lender              and the proposed new borrower, new key principal, new guarantor, and any Person              in Control of them, and the organization of the new borrower, new key principal,   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 54  Article 11                               06-19                   © 2019 Fannie Mae  

 

             and new guarantor (if applicable), and (ii) the operating and financial performance               of the Mortgaged Property, including physical condition and occupancy;                      (B)   none of the proposed new borrower, new key principal, and any new               guarantor, or any owners of the proposed new borrower, new key principal, and               any new guarantor, are a Prohibited Person; and                      (C)  none of the proposed new borrower, new key principal, and any new              guarantor (if any of such are entities) shall have an organizational existence              termination date that ends before the Maturity Date;               (4)   [reserved];               ( 5)  the proposed new borrower has:                     (A)   executed an assumption agreement acceptable to Lender that,              among other things, requires the proposed new borrower to assume and perform all              obligations of Borrower (or  any other transferor), and that may require that the new              borrower comply with any provisions of any Loan Document that previously may              have been waived by Lender for Borrower, subject to the terms of Section 1 l.03(g);                     (B)   ifrequired by Lender, delivered to the title company for filing and/or              recording in all applicable jurisdictions, all applicable Loan Documents including              the assumption agreement to correctly evidence the assumption and the              confirmation, continuation, perfection, and priority of the Liens created hereunder              and under the other Loan Documents; and                     (C)   delivered to Lender a "date-down" endorsement to the Title Policy              acceptable to Lender (or  a new title insurance policy if a "date-down" endorsement              is not available);               (6)   one or more individuals or entities acceptable to Lender as new guarantors        have executed and delivered to Lender:                     (A)   an assumption agreement acceptable to Lender that requires the new              guarantor to assume and perform all obligations of Guarantor under any Guaranty              given in connection with the Mortgage Loan; or                     (B)   a substitute Non-Recourse Guaranty and other substitute guaranty              in a form acceptable to Lender;               (7)   Lender has reviewed and approved the Transfer documents; and               (8)   Lender has received the fees described in Section l l .03(g).    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 55  Article 11                              06-19                    © 2019 Fannie Mae  

 

        (b)   Transfers to Key Principal-Owned Affiliates or Guarantor-Owned Affiliates.                 (1)    Except as otherwise covered in Section l l.03(b)(2) below, Transfers of         direct or indirect ownership interests in Borrower to Key Principal or Guarantor, or to a         transferee through which Key Principal or Guarantor (as applicable) Controls Borrower         with the same rights and abilities as Key Principal or Guarantor ( as applicable) Controls         Borrower immediately prior to the date of such Transfer, shall be consented to by Lender         if such Transfer satisfies the applicable requirements of Section l l .03(a) as they would         relate to such transferee, other than Section l l .03(a)(5).                 (2)    Transfers of direct or indirect interests in Borrower held by a Key Principal         or Guarantor to other Key Principals or Guarantors, as applicable, shall be consented to by         Lender if such Transfer satisfies the following conditions:                        (A)   the Transfer does not cause a change in the Control of Borrower;                and                       (B)    the transferor Key Principal or Guarantor maintains the same right                and ability to Control Borrower as existed prior to the Transfer.   If the conditions set forth in this Section l l .03(b) are satisfied, the Transfer Fee shall be waived  provided Borrower shall pay the Review Fee and out-of-pocket costs set forth in Section l l .03(g).          ( c)   Estate Planning.          Notwithstanding the provisions of Section l l.02(b )(2), so long as (1) the Transfer does not  cause a change in the Control of Borrower, and (2) Key Principal and Guarantor, as applicable,  maintain the same right and ability to Control Borrower as existed prior to the Transfer, Lender  shall consent to Transfers of direct or indirect ownership interests in Borrower and Transfers of  direct or indirect ownership interests in an entity Key Principal or entity Guarantor to:                       (A)    Immediate Family Members of such transferor, each of whom must               have obtained the legal age of majority;                       (B)    United States domiciled trusts established for the benefit of the               transferor or Immediate Family Members of the transferor; or                       (C)    partnerships or limited liability companies of which the partners or               members, respectively, are comprised entirely of (i) such transferor and Immediate               Family Members (each of whom must have obtained the legal age of majority) of               such transferor, (ii) Immediate Family Members ( each of whom must have obtained               the legal age of majority) of such transferor, or (iii) United States domiciled trusts               established for the benefit of the transferor or Immediate Family Members of the               transferor.    Multifamily Loan and Security Agreement  (Non-Recourse)                            Form 6001.NR                           Page 56  Article 11                                   06-19                      © 2019 Fannie Mae  

 

 If the conditions set forth in this Section 11.03(c) are satisfied, the Transfer Fee shall be waived   provided Borrower shall pay the Review Fee and out-of-pocket costs set forth in Section l l .03(g).          (d)   Termination or Revocation of Trust.          If any of Borrower, Guarantor, or Key Principal is a trust, or if Control of Borrower,   Guarantor, or Key Principal is Transferred or if a Restricted Ownership Interest in Borrower,  Guarantor, or Key Principal would be Transferred due to the termination or revocation of a trust,  the termination or revocation of such trust is an unpermitted Transfer; provided that the termination  or revocation of the trust due to the death of an individual trustor shall not be considered an  unpermitted Transfer so long as:               (1)   Lender is notified within thirty (30) days of the death; and               (2)   such Borrower, Guarantor, Key Principal, or other Person, as applicable, is        replaced with an individual or entity acceptable to Lender, in accordance with the        provisions of Section 11.03(a) within ninety (90) days of the date of the death causing the        termination or revocation.   If the conditions set forth in this Section l l.03(d) are satisfied, the Transfer Fee shall be waived;  provided Borrower shall pay the Review Fee and out-of-pocket costs set forth in Section 11.03(g).         (e)   Death of Key Principal or Guarantor; Transfer Due to Death.               (1)   If a Key Principal or Guarantor that is a natural person dies, or if Control of        Borrower, Guarantor, or Key Principal is Transferred, or if a Restricted Ownership Interest        in Borrower, Guarantor, or Key Principal would be Transferred as a result of the death of        a Person (except in the case of trusts which is addressed in Section 11.03(d)), Borrower        must notify Lender in writing within ninety (90) days in the event of such death. Unless        waived in writing by Lender, the deceased shall be replaced by an individual or entity        within one hundred eighty ( 180) days, subject to Borrower's satisfaction of the following        conditions:                     (A)   Borrower has submitted to Lender all information required by              Lender to make the determination required by this Section 11.03( e);                     (B)   Lender determines that, if applicable:                           (i)   any proposed new key principal and any other new guarantor                    ( or Person Controlling such new key principal or new guarantor) fully                    satisfies all of Lender's then-applicable key principal or guarantor                    eligibility, credit, management, and other loan underwriting standards                    (including any standards with respect to previous relationships between                    Lender and the proposed new key principal and new guarantor ( or Person                    Controlling such new key principal or new guarantor) and the organization                    of the new key principal and new guarantor);   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 57  Article 11                               06-19                   © 2019 Fannie Mae  

 

                         (ii)  none of any proposed new key principal or any new                     guarantor, or any owners of the proposed new key principal or any new                     guarantor, is a Prohibited Person; and                            (iii) none of any proposed new key principal or any new                     guarantor (if any of such are entities) shall have an organizational existence                     termination date that ends before the Maturity Date; and                      (C)   if applicable, one or more individuals or entities acceptable to              Lender as new guarantors have executed and delivered to Lender:                            (i)   an assumption agreement acceptable to Lender that requires                    the new guarantor to assume and perform all obligations of Guarantor under                    any Guaranty given in connection with the Mortgage Loan; or                           (ii)  a substitute Non-Recourse Guaranty and other substitute                    guaranty in a form acceptable to Lender.               (2)   In the event a replacement Key Principal, Guarantor, or other Person is        required by Lender due to the death described in this Section 1 l.03(e), and such        replacement has not occurred within such period, the period for replacement may be        extended by Lender to a date not more than one year from the date of such death; however,        Lender may require as a condition to any such extension that:                     (A)   the then-current property manager be replaced with a property              manager reasonably acceptable to Lender (or if a property manager has not been              previously engaged, a property manager reasonably acceptable to Lender be              engaged); or                     (B)   a lockbox agreement or similar cash management arrangement (with              the property manager) reasonably acceptable to Lender during such extended              replacement period be instituted.   If the conditions set forth in this Section 1 l.03(e) are satisfied, the Transfer Fee shall be waived,  provided Borrower shall pay the Review Fee and out-of-pocket costs set forth in Section l l.03(g).         (f)   Bankruptcy of Guarantor.               (1)   Upon the occurrence of any Guarantor Bankruptcy Event, unless waived in        writing by Lender, the applicable Guarantor shall be replaced by an individual or entity        within ninety (90) days of such Guarantor Bankruptcy Event, subject to Borrower's        satisfaction of the following conditions:                     (A)   Borrower has submitted to Lender all infonnation required by              Lender to make the detennination required by this Section 1 l.03(f);    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 58  Article 11                               06-19                   © 2019 Fannie Mae  

 

                   (B)   Lender determines that:                            (i)   the proposed new guarantor fully satisfies all of Lender's                     then-applicable guarantor eligibility, credit, management, and other loan                     underwriting standards (including any standards with respect to previous                    relationships between Lender and the proposed new  guarantor and the                     organization of the new guarantor (if applicable));                            (ii)  no new guarantor is a Prohibited Person; and                            (iii) no new guarantor (if any of such are entities) shall have an                    organizational existence termination date that ends before the Maturity                    Date; and                     (C)   one or more individuals or entities acceptable to Lender as new              guarantors have executed and delivered to Lender:                           (i)   an assumption agreement acceptable to Lender that requires                    the new guarantor to assume and perform all obligations of Guarantor under                    any Guaranty given in connection with the Mortgage Loan; or                           (ii)  a substitute Non-Recourse Guaranty and other substitute                    guaranty in a form acceptable to Lender.               (2)   In the event a replacement Guarantor is required by Lender due to the        Guarantor Bankruptcy Event described in this Section 1 l .03(f), and such replacement has        not occurred within such period, the period for replacement may be extended by Lender in        its discretion; however, Lender may require as a condition to any such extension that:                     (A)   the then-current property manager be replaced with a property              manager reasonably acceptable to Lender (or  if a property manager has not been              previously engaged, a property manager reasonably acceptable to Lender be              engaged); or                     (B)   a lockbox agreement or similar cash management arrangement (with              the property manager) reasonably acceptable to Lender during such extended              replacement period be instituted.   If the conditions set forth in this Section 1 l.03(f) are satisfied, the Transfer Fee shall be waived,  provided Borrower shall pay the Review Fee and out-of-pocket costs set forth in Section 11.03(g).         (g)   Further Conditions to Transfers and Assumption.               (1)   In connection with any Transfer of the Mortgaged Property, or an ownership        interest in Borrower, Key Principal, or Guarantor for which Lender's approval is required    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 59  Article 11                               06-19                   © 2019 Fannie Mae  

 

       under this Loan Agreement (including Section 11.03(a)), Lender may, as a condition to         any such approval, require:                      (A)   additional collateral, guaranties, or other credit support to mitigate               any risks concerning the proposed transferee or the performance or condition of the               Mortgaged Property;                      (B)   amendment of the Loan Documents to delete or modify any               specially negotiated terms or provisions previously granted for the exclusive benefit              of original Borrower, Key Principal, or Guarantor and to restore the original              provisions of the standard Fannie Mae form multifamily loan documents, to the              extent such provisions were previously modified; or                     (C)   a modification to the amounts required to be deposited into the              Reserve/Escrow Account pursuant to the terms of Section 13.02(a)(3)(B).               (2)   In connection with any request by Borrower for consent to a Transfer,        Borrower shall pay to Lender upon demand:                     (A)   the Transfer Fee (to the extent charged by Lender);                     (B)   the Review Fee (regardless of whether Lender approves or denies              such request); and                     (C)   all of Lender's out-of-pocket costs (including reasonable attorneys'              fees) incurred in reviewing the Transfer request, regardless of whether Lender              approves or denies such request.         (h)   Public Offering of Securities in Guarantor and/or Key Principal.         Notwithstanding any terms to the contrary in Section 11.02(b )(2) above, Guarantor and/or        Key Principal may engage in a public offering of securities of Guarantor and/or Key        Principal, as applicable, and Lender shall waive any Transfer Fee otherwise due in        connection therewith, so long as: (1) such public offering shall not occur without Lender's        prior written notice and consent to the same; (2) such public offering shall not result in any        change in the management and/or Control of Borrower; (3) such public offering shall not        result in the dilution of the aggregate ownership interests of Guarantor or Key Principal in        Borrower to less than a 51 % ownership interest; and (4) following any such public offering,        there is no Transfer of a Restricted Ownership Interest in Borrower.         (i)   Steadfast Affiliate Transfer.         Notwithstanding the restrictions contained in Section 11.02(b)(2) (Interests in Borrower,        Key Principal, or Guarantor) and Section 11.03(g)(l) (Further Conditions to Transfers and        Assumption), a Transfer of the ownership interests in, or held by, the Key Principal to        Steadfast Apartment REIT, Inc. or other affiliated entity (collectively, the "Steadfast   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 60  Article 11                               06-19                   © 2019 Fannie Mae  

 

       AffIIiate"), including without limitation by way of a merger with the Steadfast Affiliate,         and a replacement of Key Principal and Guarantor by the Steadfast Affiliate, shall be         permitted, provided the following conditions are satisfied:                (1)   Borrower has submitted to Lender all information required by Lender to        make the determination required by this Section l 1.03(i);                (2)   Lender determines that:                      (A)   (i) the eligibility, organization, credit, and experience in the              management of similar properties of the Steadfast Affiliate are appropriate to the              overall structure and documentation of the Loan and (ii) the Steadfast Affiliate and              any proposed new key principal and any other new guarantor (or Person Controlling              such new key principal or new guarantor) fully satisfies all of Lender's then­             applicable key principal or guarantor eligibility, credit, management, and other loan              underwriting standards (including any standards with respect to previous              relationships between Lender and the proposed new key principal and new              guarantor ( or Person Controlling such new key principal or new guarantor) and the              organization of the new key principal and new guarantor);                     (B)   none of the Steadfast Affiliate, any proposed new key principal, or              any new guarantor, nor any owners of the Steadfast Affiliate, any proposed new              key principal, or any new guarantor, is a Prohibited Person; and                     ( C)  none of the Steadfast Affiliate, any proposed new key principal, or              any new guarantor (if any of such are entities) shall have an organizational              existence termination date that ends before the Maturity Date;               (3)   One or more individuals or entities acceptable to Lender as new guarantors        have executed and delivered to Lender:                     (A)   an assumption agreement acceptable to Lender that requires the new              guarantor to assume and perform all obligations of Guarantor under any Guaranty              given in connection with the Mortgage Loan; or                     (B)   a substitute Non-Recourse Guaranty and other substitute guaranty              in a form acceptable to Lender.               ( 4)  Borrower shall provide with its notice to Lender an organizational chart        reflecting, and all organizational documents relevant to, the proposed Transfer;               (5)   Borrower shall provide with its notice to Lender a certification that:                     (i)   no Event of Default shall occur as a result of such Transfer; and                     (ii)  no Event of Default has occurred and is continuing;   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 61  Article 11                              06-19                    © 2019 Fannie Mae  

 

            (6)   No Event of Default shall have occurred and be continuing:                     (i)   at the time Lender is notified of the Transfer; and                     (ii)  at the time of such Transfer;               (7)   Borrower shall pay to Lender, concurrently with its notice to Lender, the        Review Fee plus a Transfer Fee of $0.00 and, upon demand, any out-of-pocket costs and        expenses, including attorneys' fees and expenses, incurred by Lender in connection with        its review of the Transfer request;               (8)   Borrower shall execute upon demand such documents or certifications as        Lender reasonably requires in order to confirm the post-transfer ownership structure,        compliance with the stated conditions, and any other relevant factual matter (including any        modifications necessary or desirable to identify the new key principal in the Loan        Documents); and               (9)   The Steadfast Affiliate is Controlled by, is under common Control with, or        Controls, the Key Principal or the Steadfast Affiliate and the Key Principal have the same        chief executive officer.                          ARTICLE 12    - IMPOSITIONS   Section 12.01  Representations and Warranties.         The representations and warranties made by Borrower to Lender in this Section 12.01 are  made as of the Effective Date and are true and correct except as disclosed on the Exceptions to  Representations and Warranties Schedule.         (a)   Payment of Taxes, Assessments, and Other Charges.         Borrower has:               (1)   paid ( or with the approval of Lender, established an escrow fund sufficient        to pay when due and payable) all amounts and charges relating to the Mortgaged Property        that have become due and payable before any fine, penalty interest, lien, or costs may be        added thereto, including Impositions, leasehold payments, and ground rents;               (2)   paid all Taxes for the Mortgaged Property that have become due before any        fine, penalty interest, lien, or costs may be added thereto pursuant to any notice of        assessment received by Borrower and any and all taxes that have become due against       Borrower before any fine, penalty interest, lien, or costs may be added thereto;    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 62  Article 11                              06-19                    © 2019 Fannie Mae  

 

             (3)   no knowledge of any basis for any additional assessments;                ( 4)  no knowledge of any presently pending special assessments against all or         any part of the Mortgaged Property, or any presently pending special assessments against         Borrower; and                (5)   not received any written notice of any contemplated special assessment         against the Mortgaged Property, or any contemplated special assessment against Borrower.   Section 12.02  Covenants.         (a)   Imposition Deposits, Taxes, and Other Charges.         Borrower shall:               (1)   deposit the Imposition Deposits with Lender on each Payment Date ( or on        another day designated in writing by Lender) in amount sufficient, in Lender's discretion,        to enable Lender to pay each Imposition before the last date upon which such payment may        be made without any penalty or interest charge being added, plus an amount equal to no        more than one-sixth (1/6) ( or the amount permitted by applicable law) of the Impositions        for the trailing twelve (12) months ( calculated based on the aggregate annual Imposition        costs divided by twelve (12) and multiplied by two (2));               (2)   deposit with Lender, within ten (10) days after written notice from Lender        (subject to applicable law), such additional amounts estimated by Lender to be reasonably        necessary to cure any deficiency in the amount of the Imposition Deposits held for payment        of a specific Imposition;               (3)   except as set forth in Section 12.03(c) below, pay all Impositions, leasehold        payments, ground rents, and Taxes when due and before any fine, penalty interest, lien, or        costs may be added thereto;               (4)   promptly deliver to Lender a copy of all notices of, and invoices for,        Impositions, and, if Borrower pays any Imposition directly, Borrower shall promptly        furnish to Lender receipts evidencing such payments; and               (5)   promptly deliver to Lender a copy of all notices of any special assessments        and contemplated special assessments against the Mortgaged Property or Borrower.   Section 12.03  Mortgage Loan Administration Matters Regarding Impositions.         (a)   Maintenance of Records by Lender.         Lender shall maintain records of the monthly and aggregate Imposition Deposits held by  Lender for the purpose of paying Taxes, insurance premiums, and each other obligation of  Borrower for which Imposition Deposits are required.   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 63  Article 12                               06-19                   © 2019 Fannie Mae  

 

      (b)   Imposition Accounts.         All Imposition Deposits shall be held in an institution (which may be Lender, if Lender is  such an institution) whose deposits or accounts are insured or guaranteed by a federal agency and  which accounts meet the standards for custodial accounts as required by Lender from time to time.  Lender shall not be obligated to open additional accounts, or deposit  Imposition Deposits in  additional institutions, when the amount of the Imposition Deposits exceeds the maximum amount  of the federal deposit insurance or guaranty. No interest, earnings, or profits on the Imposition  Deposits shall be paid to Borrower unless applicable law so requires. Imposition Deposits shall  not be trust funds or operate to reduce the Indebtedness, unless applied by Lender for that purpose  in accordance with this Loan Agreement. For the purposes of 9-104(a)(3) of the UCC, Lender is  the owner of the Imposition Deposits and shall be deemed a "customer" with sole control of the  account holding the Imposition Deposits.         (c)   Payment of Impositions; Sufficiency of Imposition Deposits.         Lender may pay an Imposition according to any bill, statement, or estimate from the  appropriate public office or insurance company without inquiring into the accuracy of the bill,  statement, or estimate or into the validity of the Imposition. Imposition Deposits shall be required  to be used by Lender to pay Taxes, insurance premiums and any other individual Imposition only  if:               (1)   no Event of Default exists;               (2)   Borrower has timely delivered to Lender all applicable bills or premium        notices that it has received; and               (3)   sufficient Imposition Deposits are held by Lender for each Imposition at the        time such Imposition becomes due and payable.         Lender shall have no liability to Borrower or any other Person for failing to pay any  Imposition if any of the conditions are not satisfied. If at any time the amount of the Imposition  Deposits held for payment of a specific Imposition exceeds the amount reasonably deemed  necessary by Lender to be held in connection with such Imposition, the excess may be credited  against future installments of Imposition Deposits for such Imposition.         (d)   Imposition Deposits Upon Event of Default.         If an Event of Default has occurred and is continuing, Lender may apply any Imposition  Deposits, in such amount and in such order as Lender determines, to pay any Impositions or as a  credit against the Indebtedness.         (e)   Contesting Impositions.         Other than insurance premiums, Borrower may contest, at its expense, by appropriate legal  proceedings, the amount or validity of any Imposition if:   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 64  Article 12                              06-19                    © 2019 Fannie Mae  

 

             (1)   Borrower  notifies Lender of the  commencement   or expected         commencement of such proceedings;                (2)   Lender determines that the Mortgaged Property is not in danger of being         sold or forfeited;                (3)   Borrower deposits with Lender (or the applicable Governmental Authority        if required by applicable law) reserves sufficient to pay the contested Imposition, if        required by Lender (or the applicable Governmental Authority);               (4)   Borrower  furnishes whatever additional security 1s required m the        proceedings or is reasonably requested in writing by Lender; and               (5)   Borrower commences, and at all times thereafter diligently prosecutes, such        contest in good faith until a final determination is made by the applicable Governmental        Authority.         (f)   Release to Borrower.         Upon  payment in full of all sums secured by the Security Instrument and this Loan  Agreement and release by Lender of the lien of the Security Instrument, Lender shall disburse to  Borrower the balance of any Imposition Deposits then on deposit with Lender.       ARTICLE 13 -    REPLACEMENTS, REPAIRS, AND RESTORATION   Section 13.01  Covenants.         (a)   Initial Deposits to Replacement Reserve Account, Repairs Escrow Account,  and Restoration Reserve Account.               (1)   On the Effective Date, Borrower shall pay to Lender:                     (A)   the Initial Replacement Reserve Deposit for deposit into the              Replacement Reserve Account; and                     (B)   the Repairs Escrow Deposit for deposit into the Repairs Escrow              Account.               (2)   After an event of loss, Borrower shall deliver or cause to be delivered to        Lender any insurance proceeds received under any insurance policy required to be        maintained in accordance with Article 9.         (b)   Monthly Replacement Reserve Deposits.         Borrower shall deposit the applicable Monthly Replacement Reserve Deposit into the  Replacement Reserve Account on each Payment Date.   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 65  Article 12                              06-19                    © 2019 Fannie Mae  

 

      ( c)   Payment and Deliverables for Replacements, Repairs, and Restoration.         Borrower shall:               (1)   pay all invoices for Replacements, Repairs, and Restoration, regardless of        whether funds on deposit in the applicable Reserve/Escrow Account are sufficient to pay        the full amount of such invoices, prior to any request for disbursement from such        Reserve/Escrow Account (unless Lender has agreed to issue joint checks in connection        with a particular Replacement, Repair, or Restoration);               (2)   pay all applicable fees and charges of any Governmental Authority on        account of the Replacements, Repairs, and Restoration, as applicable;               (3)   provide evidence satisfactory to Lender of completion of the Replacements,        Restoration (within the period required under Section 9.03(b)(l)(B)(iv) or such other        period required by Lender), and any Required Repairs (within the Completion Period or        within such other period or by such other date set forth in the Required Repair Schedule        and any Borrower Requested Repairs and Additional Lender Repairs (by the date specified        by Lender for any such Borrower Requested Repairs or Additional Lender Repairs)); and               (4)   prior to commencement of any Restoration, Borrower shall deliver to        Lender, for Lender's review and approval:                     (A)   a copy of the plans and specifications for the Restoration; and                     (B)   a copy of all building and other permits and authorizations required              by any law, ordinance, statute, rule or regulation of the Governmental Authority to              carry out the Restoration.         (d)   Assignment of Contracts for Replacements, Repairs, and Restoration.         Borrower shall collaterally assign to Lender as additional security any contract or  subcontract for Replacements, Repairs, or Restoration, upon Lender's written request, on a form  of assignment approved by Lender.         (e)   Indemnification.         If Lender elects to exercise its rights under Section 14.03 due to Borrower's failure to  timely commence or complete any Replacements, Repairs, or Restoration, Borrower shall  indemnify and hold Lender harmless for, from and against any and all actions, suits, claims,  demands, liabilities, losses, damages, obligations, and costs or expenses, including litigation costs  and reasonable attorneys' fees, arising from or in any way connected with the performance by  Lender of the  Replacements, Repairs, or Restoration or the investment of the Reserve/Escrow  Account Funds; provided that Borrower shall have no indemnity obligation if such actions, suits,  claims, demands, liabilities, losses, damages, obligations, and costs or expenses, including  litigation costs and reasonable attorneys' fees, arise as a result of the willful misconduct or gross   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 66  Article 13                              06-19                    © 2019 Fannie Mae  

 

negligence of Lender, Lender's agents, employees, or representatives as determined by a court of  competent jurisdiction pursuant to a final non-appealable court order.         (t)   Amendments to Loan Documents.         Subject to Section 5.02, Borrower shall execute and deliver to Lender, upon written  request, an amendment to this Loan Agreement, the Security Instrument, and any other Loan  Document deemed  necessary or desirable to perfect Lender's lien upon any portion of the  Mortgaged Property for which Reserve/Escrow Account Funds were expended.         (g)   Administrative Fees and Expenses.         Borrower shall pay to Lender:               (1)   by the date specified in the applicable invoice, the Repairs Escrow Account        Administrative Fee, the Replacement Reserve Account Administration Fee, and the        Restoration Reserve Account Administration Fee for Lender's services in administering        the Reserve/Escrow Accounts and investing the Reserve/Escrow Account Funds;               (2)   upon demand, a reasonable inspection fee, not exceeding the Maximum        Inspection Fee, for each inspection of the Mortgaged Property by Lender in connection        with a Repair, Replacement, or Restoration item, plus all other reasonable costs and out­       of-pocket expenses relating to such inspections; and               (3)   upon demand, all reasonable fees charged by any engineer, architect,        inspector or other person inspecting the Mortgaged Property on behalf of Lender for each        inspection of the Mortgaged Property in connection with a Repair, Replacement, or        Restoration item, plus all other reasonable costs and out-of-pocket expenses relating to        such inspections.   Section 13.02  Mortgage Loan Administration Matters Regarding Reserves.         (a)   Accounts, Deposits, and Disbursements.               (1)   Custodial Accounts.                     (A)   The Replacement Reserve Account shall be an interest-bearing              account that meets the standards for custodial accounts as required by Lender from              time to time. Lender shall not be responsible for any losses resulting from the              investment of the Replacement Reserve Deposits or for obtaining any specific level              or percentage of earnings on such investment. All interest, if any, earned on the              Replacement Reserve Deposits shall be added to and become part of the             Replacement Reserve Account; provided, however, if applicable law requires, and              so long as no Event of Default has occurred and is continuing under any of the Loan             Documents, Lender shall pay to Borrower the interest earned on the Replacement    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 67  Article 13                              06-19                    © 2019 Fannie Mae  

 

             Reserve Account not less frequently than the Replacement Reserve  Account               Interest Disbursement Frequency.                      (B)   Lender shall not be obligated to deposit the Repairs Escrow Deposits               or any funds held in the Restoration Reserve Account into an interest-bearing               account.                      (C)   In no event shall Lender be obligated to disburse funds from any              Reserve/Escrow Account if an Event of Default has occurred and is continuing.               (2)   Disbursements by Lender Only.               Only Lender or a designated representative of Lender may make disbursements        from the Reserve/Escrow Accounts and the Repairs Escrow Account. Except as provided        in Section 13.02(a)(8), disbursements shall only be made upon Borrower request and after        satisfaction of all conditions for disbursement.               (3)   Adjustment to Deposits.                     (A)   Mortgage Loan Terms Exceeding Ten (10) Years.                     If the Loan Term exceeds ten (10) years (or  five (5) years in the case of any              Mortgaged Property that is an "affordable housing property" as indicated on the              Summary  of Loan Terms), a property condition assessment shall be ordered by              Lender for the Mortgaged Property at the expense of Borrower (which expense may              be paid out of the Replacement Reserve Account if excess funds are available). The              property  condition assessment shall be performed no earlier than the sixth (6th)              month and no later than the ninth (9th) month of the tenth (10th) Loan Year and              every tenth (10th) Loan Year thereafter if the Loan Term exceeds twenty (20) years              (or the fifth (5th) Loan Year in the case of any Mortgaged Property that is an              "affordable housing property" as indicated on the Summary of Loan Terms and              every fifth (5th) Loan Year thereafter if the Loan Term exceeds ten (10) years).              After review of the property  condition assessment, the amount of the Monthly              Replacement Reserve Deposit may be adjusted by Lender for the remaining Loan              Term by written notice to Borrower so that the Monthly Replacement Reserve              Deposits are sufficient to fund the Replacements as and when required and/or the              amount to be held in the Repairs Escrow Account may be adjusted by Lender so              that the Repairs Escrow Deposit is sufficient to fund the Repairs as and when              required.                     (B)   Transfers.                     In connection with any Transfer of the Mortgaged Property, or any Transfer              of an ownership interest in Borrower, Guarantor, or Key Principal that requires              Lender's consent, Lender may review the amounts on deposit, if any, in the             Reserve/Escrow Accounts, the amount of the Monthly Replacement Reserve   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 68  Article 13                              06-19                    © 2019 Fannie Mae  

 

             Deposit and the likely repairs and replacements required by the Mortgaged               Property, and the related contingencies which may arise during the remaining Loan               Term. Based upon that review, Lender may require an additional deposit to the               Replacement Reserve Account, the Repairs Escrow Account, or the Restoration               Reserve Account, or an increase in the amount of the Monthly Replacement              Reserve Deposit as a condition to Lender's consent to such Transfer.                (4)  Insufficient Funds.               Lender may, upon thirty (30) days' prior written notice to Borrower, require an        additional deposit(s) to the Replacement Reserve Account, the Repairs Escrow Account,        or the Restoration Reserve Account, or an increase in the amount of the Monthly        Replacement Reserve Deposit, if Lender determines that the amounts on deposit in any of        the Reserve/Escrow Accounts are not sufficient to cover the costs for Required Repairs,        Required Replacements, or the Restoration or, pursuant to the terms of Section 13 .02( a)(9),        not sufficient to cover the costs for Borrower Requested Repairs, Additional Lender        Repairs, Borrower Requested Replacements, or Additional Lender Replacements.        Borrower's agreement to complete the Replacements, the Repairs, or the Restoration as        required by this Loan Agreement shall not be affected by the insufficiency of any balance        in the Reserve/Escrow Accounts.               (5)   Disbursements for Replacements, Repairs, and Restoration.                     (A)   With respect to Replacements, disbursement requests may only be              made after completion of the applicable Replacements and only to reimburse              Borrower for the actual approved costs of the Replacements (unless Lender has              agreed to issue joint checks in connection with a particular Replacement). Lender              shall not disburse from the Replacement Reserve Account the costs of routine              maintenance to the Mortgaged Property or for costs which are to be reimbursed              from any other Reserve/Escrow Account. Disbursement from the Replacement              Reserve Account shall not be made more frequently than the Maximum              Replacement Reserve Disbursement Interval. Other than in connection with a final              request for disbursement, disbursements from the Replacement Reserve Account              shall not be less than the Minimum Replacement Reserve Disbursement Amount.                     (B)   With respect to Repairs, disbursement requests may only be made              after completion of the applicable Repairs and only to reimburse Borrower for the              actual cost of the Repairs, (unless Lender has agreed to issue joint checks in              connection with a particular Repair), up to the Maximum Repair Cost. Lender shall              not disburse any amounts which would cause the funds remaining in the Repairs              Escrow Account after any disbursement (other  than with respect to the final              disbursement) to be less than the Maximum Repair Cost of the then-current              estimated cost of completing all remaining Repairs. Lender shall not disburse from             the Repairs Escrow Account the costs of routine maintenance to the Mortgaged             Property or for costs which are to be reimbursed from any other Reserve/Escrow   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 69  Article 13                              06-19                    © 2019 Fannie Mae  

 

            Account. Disbursement from the Repairs Escrow Account shall not be made more               frequently than the Maximum Repair Disbursement Interval. Other than in              connection with a final request for disbursement, disbursements from the Repairs              Escrow  Account shall not be less than the Minimum Repairs Disbursement              Amount.                     (C)   With respect to Restoration, disbursement requests may only be              made  after completion of the applicable Restoration and only to reimburse              Borrower for the actual approved costs of the Restoration. Each disbursement shall              be equal to the amount of the actual approved costs of the Restoration items covered              by the disbursement request. In addition, Lender shall not disburse any amounts              which would cause the funds remaining in the Restoration Reserve Account after              any disbursement (other  than with respect to the final disbursement) to be less than              the then-current estimated cost of completing all remaining Restoration. Lender              shall not disburse from the Restoration Reserve Account the costs of routine              maintenance to the Mortgaged Property or for costs which are to be reimbursed              from any other Reserve/Escrow Account. Disbursement from the Restoration              Reserve Account shall not be made more frequently than the Maximum Restoration              Reserve Disbursement Interval. Other than in connection with a final request for              disbursement, disbursements from the Restoration Reserve Account shall not be              less than the Minimum Restoration Reserve Disbursement Amount.               (6)   Disbursement Requests.               Borrower must submit a disbursement request in writing for each disbursement        from a Reserve/Escrow Account, which disbursement request must specify the items of        Replacement, Repairs, or Restoration for which reimbursement is requested (provided that        for any Borrower Requested Replacements, Borrower Requested Repairs, Additional        Lender Replacements, and Additional Lender Repairs, Lender shall have approved the use        of the Reserve/Escrow Account Funds for such replacements or repairs pursuant to the        terms of Section 13.02(a)(9)), and must:                     (A)   if applicable, specify the quantity and price of the items or materials              purchased, grouped by type or category;                     (B)   if applicable, specify the cost of all contracted labor or other              services, including architectural services, involved in the Replacement, Repair, or              Restoration for which such request for disbursement is made;                     (C)   if applicable, include copies of invoices for all items or materials              purchased and all contracted labor or services provided;                     (D)   include evidence of payment of such Replacement, Repair, or              Restoration satisfactory to Lender (unless Lender has agreed to issue joint checks    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 70  Article 13                              06-19                    © 2019 Fannie Mae  

 

             in connection with a particular Repair, Replacement, or Restoration item as               provided in this Loan Agreement);                      (E)   if applicable, contain a certification by Borrower that the Repair,               Replacement, or Restoration has been completed lien free and in a good and               workmanlike manner, in accordance with any plans and specifications previously               approved by Lender (if applicable) and in compliance with all applicable laws,               ordinances, rules, and regulations of any Governmental Authority having              jurisdiction over the Mortgaged Property, and otherwise in accordance with the              provisions of this Loan Agreement; and                      (F)  if applicable, include evidence that any certificates of occupancy              required by applicable laws or any Governmental Authority have been issued.               (7)   Conditions to Disbursement.               In addition to each disbursement request and information required in connection        with such disbursement request, Lender may require any or all of the following at the        expense of Borrower as a condition to disbursement of Reserve/Escrow Account Funds        (provided that for any Borrower Requested Replacements, Borrower Requested Repairs,        Additional Lender Replacements, and Additional Lender Repairs, Lender shall have        approved the use of the Reserve/Escrow Account Funds for such replacements or repairs        pursuant to the terms of Section 13.02(a)(9)):                     (A)   an inspection by Lender of the Mortgaged Property and the              applicable Replacement, Repair, or Restoration item;                     (B)   an inspection or certificate of completion by an appropriate              independent qualified professional (such as an architect, engineer or property              inspector, depending on the nature of the Repair, Replacement, or Restoration)              selected by Lender;                     (C)   either:                           (i)   a search of title to the Mortgaged Property effective to the                    date of disbursement; or                           (ii)  a "date-down" endorsement to Lender's Title Policy (or a                    new Lender's Title Policy if a "date-down" is not available) extending the                    effective date of such policy to the date of disbursement, and showing no                    Liens other than (1) Permitted Encumbrances, (2) liens which Borrower is                    diligently contesting in good faith that have been bonded off to the                    satisfaction of Lender, or (3) mechanics' or materialmen's liens which                    attach automatically under the laws of any Governmental Authority upon                    the commencement of any work upon, or delivery of any materials to, the    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 71  Article 13                               06-19                   © 2019 Fannie Mae  

 

                   Mortgaged Property and for which Borrower 1s not delinquent m the                     payment for any such work or materials; and                      (D)   an acknowledgement of payment, waiver of claims, and release of               lien for work performed and materials supplied from each contractor, subcontractor               or materialman in accordance with the requirements of applicable law and covering               all work performed and materials supplied (including equipment and fixtures) for               the Mortgaged Property by that contractor, subcontractor, or materialman through              the date covered by the disbursement request ( or, in the event that payment to such              contractor, subcontractor, or materialman is to be made by a joint check, the release              oflien shall be effective through the date covered by the previous disbursement).               (8)   Joint Checks for Periodic Disbursements.               Lender may, upon Borrower's written request, issue joint checks, payable to        Borrower and the applicable supplier, materialman, mechanic, contractor, subcontractor,        or other similar party, if:                     (A)   the cost of the Replacement, Repair, or Restoration item exceeds the              Replacement Threshold, the Repair Threshold, or the Restoration Threshold, as              applicable, and the contractor performing such Replacement, Repair, or Restoration              requires periodic payments pursuant to the terms of the applicable written contract;                     (B)   the contract for such Replacement, Repair, or Restoration item              requires payment upon completion of the applicable portion of the work;                     (C)   Borrower makes the disbursement request after completion of the              applicable portion of the work required to be completed under such contract;                     (D)   the materials for which the request for disbursement has been made              are on site at the Mortgaged Property and are properly secured or installed;                     (E)   Lender determines that the remaining funds in the Reserve/Escrow              Account are sufficient to pay the cost of the Replacement, Repair, or Restoration              item, as applicable, and the then-current estimated cost of completing all remaining              Required Replacements, Restoration, or Required Repairs (at the Maximum Repair              Cost), as applicable, and any other Borrower Requested Replacements, Borrower              Requested Repairs, Additional Lender Replacements, or Additional Lender Repairs              that have been previously approved by Lender;                     (F)   each supplier, materialman, mechanic, contractor, subcontractor, or              other similar party receiving payments shall have provided, if requested in writing              by Lender, a waiver of liens with respect to amounts which have been previously              paid to them; and                     (G)   all other conditions for disbursement have been satisfied.   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 72  Article 13                              06-19                    © 2019 Fannie Mae  

 

             (9)   Replacements and Repairs Other than Required Replacements or         Required Repairs.                      {A)   Borrower Requested Replacements and Borrower Requested               Repairs.                      Borrower may submit a disbursement request from the Replacement               Reserve Account or the Repairs Escrow Account to reimburse Borrower for any               Borrower Requested Replacement or Borrower Requested Repair.  The              disbursement request must be in writing and include an explanation for such              request. Lender shall make disbursements for Borrower Requested Replacements              or Borrower Requested Repairs if:                           (i)   they are of the type intended to be covered by the                    Replacement Reserve Account or the Repairs Escrow Account, as                    applicable;                           (ii)  the costs are commercially reasonable;                           (iii) the amount of funds in the Replacement Reserve Account or                    Repairs Escrow Account, as applicable, is sufficient to pay such costs and                    the then-current estimated cost of completing all remaining Required                    Replacements or Required Repairs (at the Maximum Repair Cost), as                    applicable, and any other Borrower Requested Replacements, Borrower                    Requested Repairs, Additional Lender Replacements or Additional Lender                    Repairs that have been previously approved by Lender; and                           (iv)  all conditions for disbursement from the Replacement                    Reserve Account or Repairs Escrow Account, as applicable, have been                    satisfied.               Nothing in this Loan Agreement shall limit Lender's right to require an additional              deposit to the Replacement Reserve Account or an increase to the Monthly              Replacement Reserve Deposit in connection with any such Borrower Requested              Replacements, or an additional deposit to the Repairs Escrow Account for any such              Borrower Requested Repairs.                     (B)   Additional Lender Replacements  and  Additional Lender              Repairs.                     Lender may require, as set forth in Section 6.02(b), Section 6.03(c), or              otherwise from time to time, upon written notice to Borrower, that Borrower make              Additional Lender Replacements or Additional Lender Repairs. Lender shall make              disbursements from the Replacement Reserve Account for Additional Lender              Replacements or from the Repairs Escrow Account for Additional Lender Repairs,              as applicable, if:   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 73  Article 13                              06-19                    © 2019 Fannie Mae  

 

                         (i)   the costs are commercially reasonable;                            (ii)  the amount of funds in the Replacement Reserve Account or                     the Repairs Escrow Account, as applicable, is sufficient to pay such costs                     and the then-current estimated cost of completing all remaining Required                     Replacements or Required Repairs (at the Maximum Repair Cost), as                     applicable, and any other Borrower Requested Replacements, Borrower                    Requested Repairs, Additional Lender Replacements, or Additional Lender                    Repairs that have been previously approved by Lender; and                            (iii) all conditions for disbursement from the Replacement                    Reserve Account or Repairs Escrow Account, as applicable, have been                    satisfied.               Nothing in this Loan Agreement shall limit Lender's right to require an additional              deposit to the Replacement Reserve Account or an increase to the Monthly              Replacement Reserve Deposit for any such Additional Lender Replacements or an              additional deposit to the Repairs Escrow Account for any such Additional Lender              Repair.               (10)  Excess Costs.               In the event any Replacement, Repair, or Restoration item exceeds the approved        cost set forth on either the Required Replacement Schedule for Replacements, the        Maximum Repair Cost for Repairs, or the initial cost approved by Lender for Restoration,        as applicable, Borrower may submit a disbursement request to reimburse Borrower for        such excess cost. The disbursement request must be in writing and include an explanation        for such request. Lender shall make disbursements from the applicable Reserve/Escrow        Account, if:                     (A)   the excess cost is commercially reasonable;                     (B)   the amount of funds in the applicable Reserve/Escrow Account is              sufficient to pay such excess costs and the then-current estimated cost of              completing all remaining Required Replacements, Restoration, or Required Repairs              (at the Maximum Repair Cost), as applicable, and any other Borrower Requested              Replacements, Borrower Requested Repairs, Additional Lender Replacements, or              Additional Lender Repairs that have been previously approved by Lender; and                     (C)   all conditions for disbursement from the applicable Reserve/Escrow              Account or the Repairs Escrow Account have been satisfied.               (11)  Final Disbursements.               Upon completion and satisfaction of all conditions for disbursements for any       Repairs and Restoration, and further provided no Event of Default has occurred and is   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 74  Article 13                              06-19                    © 2019 Fannie Mae  

 

      continuing, Lender shall disburse to Borrower any amounts then remaining in the Repairs        Escrow Account or the Restoration Reserve Account, as applicable. Upon payment in full        of the Indebtedness and release by Lender of the lien of the Security Instrument, Lender        shall disburse to Borrower any and all amounts then remaining in the Reserve/Escrow        Accounts (if not previously released).         (b)   Approvals of Contracts; Assignment of Claims.         Lender retains the right to approve all contracts or work orders with materialmen,  mechanics, suppliers, subcontractors, contractors, or other parties providing labor or materials in  connection with the Replacements, Repairs, or Restoration. Notwithstanding Borrower's  assignment (in the Security Instrument) of its rights and claims against all Persons supplying labor  or materials in connection with the Replacements, Repairs, or Restoration, Lender will not pursue  any such right or claim unless an Event of Default has occurred and is continuing or as otherwise  provided in Section 14.03(c).         (c)   Delays and Workmanship.         If any work for any Replacement, Repair, or Restoration item has not timely commenced,  has not been timely performed in a workmanlike manner, or has not been timely completed in a  workmanlike manner, Lender may, without notice to Borrower:               (1)   withhold disbursements from the applicable Reserve/Escrow Account;               (2)   proceed under existing contracts or contract with third parties to make or        complete such Replacements, Repairs, or Restoration items;               (3)   apply the funds in the applicable Reserve/Escrow Account toward the labor        and materials necessary to make or complete such Replacements, Repairs, or Restoration        items, as applicable; or               (4)   exercise any and all other remedies available to Lender under this Loan        Agreement or any other Loan Document, including any remedies otherwise available upon        an Event of Default pursuant to the terms of Section 14.02.   To facilitate Lender's completion and performance of such Replacements, Repairs, or Restoration  items, Lender shall have the right to enter onto the Mortgaged Property and perform any and all  work and labor necessary to make or complete the Replacements, Repairs, or Restoration and  employ watchmen to protect the Mortgaged Property from damage. All funds so expended by  Lender shall be deemed to have been advanced to Borrower, and included as part of the  Indebtedness and secured by the Security Instrument and this Loan Agreement.         (d)   Appointment of Lender as Attorney-In-Fact.         Borrower hereby authorizes and appoints Lender as attorney-in-fact pursuant to Section  14.03(c).   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 75  Article 13                              06-19                    © 2019 Fannie Mae  

 

      (e)   No Lender Obligation.         Nothing in this Loan Agreement shall:               (1)   make  Lender responsible for making or completing the Replacements,        Repairs, or Restoration;               (2)   require Lender to expend funds, whether from any Reserve/Escrow        Account, or otherwise, to make or complete any Replacement, Repair, or Restoration item;               (3)   obligate Lender to proceed with the Replacements, Repairs, or Restoration;        or               (4)   obligate Lender to demand from Borrower additional sums to make or        complete any Replacement, Repair, or Restoration item.         (f)   No Lender Warranty.         Lender's approval of any plans for any Replacement, Repair, or Restoration, release of  funds from any Reserve/Escrow Account, inspection of the Mortgaged Property by Lender or its  agents, representatives, or designees, or other acknowledgment of completion of any Replacement,  Repair, or Restoration in a manner satisfactory to Lender shall not be deemed an acknowledgment  or warranty by Lender to any Person that the Replacement, Repair, or Restoration has been  completed in accordance with applicable building, zoning, or other codes, ordinances, statutes,  laws, regulations, or requirements of any Governmental Authority, such responsibility being at all  times exclusively that of Borrower.                     ARTICLE 14 -    DEFAULTS/REMEDIES   Section 14.01  Events of Default.         The occurrence of any one or more of the following in this Section 14.01 shall constitute  an Event of Default under this Loan Agreement.         (a)   Automatic Events of Default.         Any of the following shall constitute an automatic Event of Default:               (1)   any failure by Borrower to pay or deposit when due any amount required        by the Note, this Loan Agreement or any other Loan Document;               (2)   any failure by Borrower to maintain the insurance coverage required by any        Loan Document;               (3)   any failure by Borrower to comply with the provisions of Section 4.02(d)       relating to its single asset status;   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 76  Article 13                              06-19                    © 2019 Fannie Mae  

 

             (4)   if any warranty, representation, certification, or statement of Borrower or        Guarantor in this Loan Agreement or any of the other Loan Documents is false, inaccurate,        or misleading in any material respect when made;               (5)   fraud, gross negligence, willful misconduct, or material misrepresentation        or material omission by or on behalf of Borrower, Guarantor, or Key Principal or any of        their officers, directors, trustees, partners, members, or managers in connection with:                     (A)   the application for, or creation of, the Indebtedness;                     (B)   any financial statement, rent roll, or other report or information              provided to Lender during the term of the Mortgage Loan; or                     (C)   any request for Lender's consent to any proposed action, including              a request for disbursement of Reserve/Escrow Account Funds or Collateral              Account Funds;               (6)   the occurrence of any Transfer not permitted by the Loan Documents;               (7)   the occurrence of a Bankruptcy Event;               (8)   the commencement of a forfeiture action or other similar proceeding,        whether civil or criminal, which, in Lender's reasonable judgment, could result in a        forfeiture of the Mortgaged Property or otherwise materially impair the lien created by this        Loan Agreement or the Security Instrument or Lender's interest in the Mortgaged Property;               (9)   if Borrower, Guarantor, or Key Principal is a trust, or if Control of        Borrower, Guarantor, or Key Principal is Transferred or if a Restricted Ownership Interest        in Borrower, Guarantor, or Key Principal would be Transferred due to the termination or        revocation of a trust, the termination or revocation of such trust, except as set forth in        Section 11.03(d);                (10)  any failure by Borrower to complete any Repair related to fire, life, or safety        issues in accordance with the terms of this Loan Agreement within the Completion Period        ( or such other date set forth on the Required Repair Schedule or otherwise required by        Lender in writing for such Repair); or               (11)  any exercise by the holder of any other debt instrument secured by a        mortgage, deed of trust, or deed to secure debt on the Mortgaged Property of a right to        declare all amounts due under that debt instrument immediately due and payable.         (b)   Events of Default Subject to a Specified Cure Period.         Any of the following shall constitute an Event of Default subject to the cure period set forth  in the Loan Documents:    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 77  Article 14                               06-19                   © 2019 Fannie Mae  

 

             ( 1)  if Key Principal or Guarantor is a natural person, the death of such        individual, unless all requirements of Section 1 l.03(e) are met;               (2)   the occurrence of a Guarantor Bankruptcy Event, unless requirements of        Section 11.03(£) are met;               (3)   any failure by Borrower, Key Principal, or Guarantor to comply with the        provisions of Section 5.02(b) and Section 5.02(c); or               ( 4)  any failure by Borrower to perform any obligation under this Loan        Agreement or any Loan Document that is subject to a specified written notice and cure        period, which failure continues beyond such specified written notice and cure period as set        forth herein or in the applicable Loan Document.         (c)   Events of Default Subject to Extended Cure Period.         The following shall constitute an Event of Default if the existence of such condition or  event, or such failure to perform or default in performance continues for a period of thirty (30)  days after written notice by Lender to Borrower of the existence of such condition or event, or of  such failure to perform or default in performance, provided, however, such period may be extended  for up to an additional thirty (30) days if Borrower, in the discretion of Lender, is diligently  pursuing a cure of such; provided, further, however, no such written notice, grace period, or  extension shall apply if, in Lender's discretion, immediate exercise by Lender of a right or remedy  under this Loan Agreement or any Loan Document is required to avoid harm to Lender or  impairment of the Mortgage Loan (including the Loan Documents), the Mortgaged Property or  any other security given for the Mortgage Loan:               (1)   any failure by Borrower to perform any of its obligations under this Loan        Agreement or any Loan Document (other than those specified in Section 14.0l(a) or        Section 14.0l(b) above) as and when required.   Section 14.02  Remedies.         (a)   Acceleration; Foreclosure.         If an Event of Default has occurred and is continuing, the entire unpaid principal balance  of the Mortgage Loan, any Accrued Interest, interest accruing at the Default Rate, the Prepayment  Premium (if applicable), and all other Indebtedness, at the option of Lender, shall immediately  become due and payable, without any prior written notice to Borrower, unless applicable law  requires otherwise (and in such case, after any required written notice has been given). Lender  may exercise this option to accelerate regardless of any prior forbearance. In addition, Lender  shall have all rights and remedies afforded to Lender hereunder and under the other Loan  Documents, including, foreclosure on and/or the power of sale of the Mortgaged Property, as  provided in the Security Instrument, and any rights and remedies available to Lender at law or in  equity (subject to Borrower's statutory rights of reinstatement, if any). Any proceeds of a  Foreclosure Event may be held and applied by Lender as additional collateral for the Indebtedness   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 78  Article 14                              06-19                    © 2019 Fannie Mae  

 

pursuant to this Loan Agreement. Notwithstanding the foregoing, the occurrence of any  Bankruptcy Event shall automatically accelerate the Mortgage Loan and all obligations and  Indebtedness shall be immediately due and payable without written notice or further action by  Lender.         (b)   Loss of Right to Disbursements from Collateral Accounts.         If an Event of Default has occurred and is continuing, Borrower shall immediately lose all  of its rights to receive disbursements from the Reserve/Escrow Accounts and  any Collateral  Accounts.  During the continuance of any such Event of Default, Lender may use the  Reserve/Escrow Account Funds and any Collateral Account Funds (or  any portion thereof) for any  purpose, including:               (1)   repayment of the Indebtedness, including principal prepayments and the        Prepayment Premium applicable to such full or partial prepayment, as applicable (however,        such application of funds shall not cure or be deemed to cure any Event of Default);               (2)   reimbursement of Lender for all losses and expenses (including reasonable        legal fees) suffered or incurred by Lender as a result of such Event of Default;               (3)   completion of the Replacement, Repair, or Restoration for any other        replacement or repair to the Mortgaged Property; and               (4)   payment of any amount expended in exercising (and the exercise of) all        rights and remedies available to Lender at law or in equity or under this Loan Agreement        or under any of the other Loan Documents.   Nothing in this Loan Agreement shall obligate Lender to apply all or any portion of the  Reserve/Escrow Account Funds or Collateral Account Funds on account of any Event of Default  by Borrower or to repayment of the Indebtedness or in any specific order of priority.         (c)   Remedies Cumulative.         Each right and remedy provided in this Loan Agreement is distinct from all other rights or  remedies under this Loan Agreement or any other Loan Document or afforded by applicable law,  and each shall be cumulative and may be exercised concurrently, independently, or successively,  in any order. Lender shall not be required to demonstrate any actual impairment of its security or  any increased risk of additional default by Borrower in order to exercise any of its remedies with  respect to an Event of Default.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 79  Article 14                               06-19                   © 2019 Fannie Mae  

 

Section 14.03  Additional Lender Rights; Forbearance.         (a)   No Effect Upon Obligations.         Lender may, but shall not be obligated to, agree with Borrower, from time to time, and  without giving notice to, or obtaining the consent of, or having any effect upon the obligations of,  Guarantor, Key Principal, or other third party obligor, to take any of the following actions:               (1)   the time for payment of the principal of or interest on the Indebtedness may        be extended, or the Indebtedness may be renewed in whole or in part;               (2)   the rate of interest on or period of amortization of the Mortgage Loan or the        amount of the Monthly Debt Service Payments payable under the Loan Documents may        be modified;               (3)   the time for Borrower's performance of or compliance with any covenant        or agreement contained in any Loan Document, whether presently existing or hereinafter        entered into, may be extended or such performance or compliance may be waived;               (4)   any or all payments due under this Loan Agreement or any other Loan        Document may be reduced;               (5)   any Loan Document may be modified or amended by Lender and Borrower        in any respect, including an increase in the principal amount of the Mortgage Loan;               (6)   any amounts under this Loan Agreement or any other Loan Document may        be released;               (7)   any security for the Indebtedness may be modified, exchanged, released,        surrendered, or otherwise dealt with, or additional security may be pledged or mortgaged        for the Indebtedness;               (8)   the payment of the Indebtedness or any security for the Indebtedness, or        both, may be subordinated to the right to payment or the security, or both, of any other        present or future creditor of Borrower; or               (9)   any other terms of the Loan Documents may be modified.         (b)   No Waiver of Rights or Remedies.         Any waiver of an Event of Default or forbearance by Lender in exercising any right or  remedy under this Loan Agreement or any other Loan Document or otherwise afforded by  applicable law, shall not be a waiver of any other Event of Default or preclude the exercise or  failure to exercise of any other right or remedy. The acceptance by Lender of payment of all or  any part of the Indebtedness after the due date of such payment, or in an amount which is less than  the required payment, shall not be a waiver of Lender's right to require prompt payment when due   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 80  Article 14                              06-19                    © 2019 Fannie Mae  

 

of all other payments on account of the Indebtedness or to exercise any remedies for any failure to  make prompt payment. Enforcement by Lender of any security for the Indebtedness shall not  constitute an election by Lender of remedies so as to preclude the exercise or failure to exercise of  any other right available to Lender. Lender's receipt of any insurance proceeds or amounts in  connection with a Condemnation Action shall not operate to cure or waive any Event of Default.         (c)   Appointment of Lender as Attorney-In-Fact.         Borrower hereby irrevocably makes, constitutes, and appoints Lender (and any officer of  Lender or any Person designated by Lender for that purpose) as Borrower's true and lawful proxy  and attorney-in-fact (and agent-in-fact) in Borrower's name, place, and stead, with full power of  substitution, to:               (1)   use any Reserve/Escrow Account Funds for the purpose of making or        completing the Replacements, Repairs, or Restoration;               (2)   make  such additions, changes, and corrections to the Replacements,        Repairs, or Restoration as shall be necessary or desirable to complete the Replacements,        Repairs, or Restoration;               (3)   employ such contractors, subcontractors, agents, architects, and inspectors        as shall be required for such purposes;               (4)   pay, settle, or compromise all bills and claims for materials and work        performed in connection with the Replacements, Repairs, or Restoration, or as may be        necessary or desirable for the completion of the Replacements, Repairs, or Restoration, or        for clearance of title;               (5)   adjust and compromise any claims under any and all policies of insurance        required pursuant to this Loan Agreement and any other Loan Document, subject only to        Borrower's rights under this Loan Agreement;               (6)   appear in and prosecute any action arising from any insurance policies;               (7)   collect and receive the proceeds of insurance, and to deduct from such        proceeds Lender's expenses incurred in the collection of such proceeds;               (8)   commence, appear in, and prosecute, in Lender's or Borrower's name, any        Condemnation Action;               (9)   settle or compromise any claim m connection with any Condemnation        Action;               (10)  execute all applications and certificates in the name of Borrower which may        be required by any of the contract documents;    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 81  Article 14                              06-19                    © 2019 Fannie Mae  

 

             (11)  prosecute and defend all actions or proceedings in connection with the         Mortgaged Property or the rehabilitation and repair of the Mortgaged Property;                (12)  take such actions as are permitted in this  Loan Agreement and any other        Loan Documents;                (13)  execute such financing statements and other documents and to do such other        acts as Lender may require to perfect and preserve Lender's security interest in, and to        enforce such interests in, the collateral; and               (14)  carry out any remedy provided for in this  Loan Agreement and any other        Loan Documents, including endorsing Borrower's name to checks, drafts, instruments and        other items of payment and proceeds of the collateral, executing change of address forms        with the postmaster of the United States Post Office serving the address of Borrower,        changing the address of Borrower to that of Lender, opening all envelopes addressed to        Borrower, and applying any payments contained therein to the Indebtedness.         Borrower hereby acknowledges that the constitution and appointment of such proxy and        attorney-in-fact are coupled with an interest and are irrevocable and shall not be affected        by the disability or incompetence of Borrower. Borrower specifically acknowledges and        agrees that this power of attorney granted to Lender may be assigned by Lender to Lender's        successors or assigns as holder of the Note (and the other Loan Documents). The foregoing        powers conferred on Lender under this Section 14.03(c) shall not impose any duty upon        Lender to exercise any such powers and shall not require Lender to incur any expense or        take any action. Borrower hereby ratifies and confirms all that such attorney-in-fact may        do or cause to be done by virtue of any provision of this Loan Agreement and any other        Loan Documents.         Notwithstanding the foregoing provisions, Lender shall not exercise its rights as set forth        in this Section 14.03(c) unless: (A) an Event of Default has occurred and is continuing, or        (B) Lender determines, in its discretion, that exigent circumstances exist or that such        exercise is necessary or prudent in order to protect and preserve the Mortgaged Property,        or Lender's lien priority and security interest in the Mortgaged Property.         (d)   Borrower Waivers.         If more than one Person signs this Loan Agreement as Borrower, each Borrower, with  respect to any other Borrower, hereby agrees that Lender, in its discretion, may:               (1)   bring suit against Borrower, or any one or more of Borrower, jointly and        severally, or against any one or more of them;               (2)   compromise or settle with any one or more of the persons constituting        Borrower, for such consideration as Lender may deem proper;               (3)   release one or more of the persons constituting Borrower, from liability; or   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 82  Article 14                               06-19                   © 2019 Fannie Mae  

 

             (4)   otherwise deal with Borrower, or any one or more of them, in any manner,         and no such action shall impair the rights of Lender to collect from any Borrower the full         amount of the Indebtedness.   Section 14.04   Waiver of Marshaling.         Notwithstanding the existence of any other security interests in the Mortgaged Property  held by Lender or by any other party, Lender shall have the right to determine the order in which  any or all of the Mortgaged Property shall be subjected to the remedies provided in this Loan  Agreement, any other Loan Document or applicable law. Lender shall have the right to determine  the order in which all or any part of the Indebtedness is satisfied from the proceeds realized upon  the exercise of such remedies. Borrower and any party who now or in the future acquires a security  interest in the Mortgaged Property and who has actual or constructive notice of this Loan  Agreement 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 or as an entirety in connection with the exercise of any of the remedies permitted  by applicable law or provided in this Loan Agreement or any other Loan Documents.         Lender shall account for any moneys received by Lender in respect of any foreclosure on  or disposition of collateral hereunder and under the other Loan Documents provided that Lender  shall not have any duty as to any collateral, and Lender shall be accountable only for amounts that  it actually receives as a result of the exercise of such powers. NONE OF LENDER OR ITS  AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, OR REPRESENTATIVES  SHALL  BE  RESPONSIBLE   TO BORROWER    (a) FOR ANY  ACT  OR FAILURE   TO ACT  UNDER   ANY  POWER    OF ATTORNEY    OR  OTHERWISE,   EXCEPT   IN RESPECT  OF  DAMAGES    ATTRIBUTABLE     SOLELY   TO  THEIR  OWN   GROSS  NEGLIGENCE    OR  WILLFUL MISCONDUCT AS      FINALLY DETERMINED PURSUANT TO       A FINAL, NON­ APPEALABLE   COURT   ORDER BY   A COURT   OF COMPETENT   JURISDICTION,  OR  (b)  FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.                        ARTICLE 15 -   MISCELLANEOUS   Section 15.01  Governing Law; Consent to Jurisdiction and Venue.         (a)   Governing Law.         This Loan Agreement and any other Loan Document which does not itself expressly  identify the law that is to apply to it, shall be governed by the laws of the Property Jurisdiction  without regard to the application of choice of law principles.         (b)   Venue.         Any controversy arising under or in relation to this Loan Agreement or any other Loan  Document shall be litigated exclusively in the Property Jurisdiction without regard to conflicts of  laws principles. The state and federal courts and authorities with jurisdiction in the Property  Jurisdiction shall have exclusive jurisdiction over all controversies which shall arise under or in   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 83  Article 14                               06-19                   © 2019 Fannie Mae  

 

 relation to this Loan Agreement or any other Loan Document. Borrower irrevocably consents to   service, jurisdiction, and venue of such courts for any such litigation and waives any other venue   to which it might be entitled by virtue of domicile, habitual residence, or otherwise.    Section 15.02 Notice.          (a)   Process of Serving Notice.         Except as otherwise set forth herein or in any other Loan Document, all notices under this  Loan Agreement and any other Loan Document shall be:               {l)   in writing and shall be:                     (A)   delivered, in person;                     (B)   mailed, postage prepaid, either by registered or certified delivery,              return receipt requested;                     (C)   sent by overnight courier; or                     (D)   sent by electronic mail with originals to follow by overnight courier;               (2)   addressed to the intended recipient at Borrower's Notice Address and        Lender's Notice Address, as applicable; 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)   Change of Address.         Any party to this Loan Agreement may change the address to which notices intended for it  are to be directed by means of notice given to the other parties identified on the Summary of Loan  Terms in accordance with this Section 15.02.         (c)   Default Method of Notice.         Any required notice under this Loan Agreement or any other Loan Document which does  not specify how notices are to be given shall be given in accordance with this Section 15.02.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 84  Article 15                               06-19                   © 2019 Fannie Mae  

 

      (d)   Receipt of Notices.         Neither Borrower nor Lender shall refuse or reject delivery of any notice given in  accordance with this Loan Agreement. Each party is required to acknowledge, in writing, the  receipt of any notice upon request by the other party.   Section 15.03  Successors and Assigns Bound; Sale of Mortgage Loan.         (a)   Binding Agreement.         This Loan Agreement shall bind, and the rights granted by this Loan Agreement shall inure  to, the successors and assigns of Lender and the permitted successors and assigns of Borrower.  However, a Transfer not permitted by this Loan Agreement shall be an Event of Default and shall  be void ab initio.         (b)   Sale of Mortgage Loan; Change of Servicer.         Nothing in this Loan Agreement shall limit Lender's (including its successors and assigns)  right to sell or transfer the Mortgage Loan or any interest in the Mortgage Loan. The Mortgage  Loan or a partial interest in the Mortgage Loan (together with this Loan Agreement and the other  Loan Documents) may be sold one or more times without prior written notice to Borrower. A sale  may result in a change of the Loan Servicer.   Section 15.04  Counterparts.         This Loan Agreement may be executed in any number of counterparts with the same effect  as if the parties hereto had signed the same document and all such counterparts shall be construed  together and shall constitute one instrument.   Section 15.05  Joint and Several (or Solidary) Liability.         If more than one Person signs this Loan Agreement as Borrower, the obligations of such  Persons shall be joint and several (solidary instead for purposes of Louisiana law).   Section 15.06  Relationship of Parties; No Third Party Beneficiary.         (a)   Solely Creditor and Debtor.         The relationship between Lender and Borrower shall be solely that of creditor and debtor,  respectively, and nothing contained in this Loan Agreement shall create any other relationship  between Lender and Borrower. Nothing contained in this Loan Agreement shall constitute Lender  as a joint venturer, partner, or agent of Borrower, or render Lender liable for any debts, obligations,  acts, omissions, representations, or contracts of Borrower.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 85  Article 15                              06-19                    © 2019 Fannie Mae  

 

       (b)   No Third Party Beneficiaries.          No creditor of any party to this Loan Agreement and no other Person shall be a third party   beneficiary of this Loan Agreement or any other Loan Document or any account created or   contemplated under this Loan Agreement or any other Loan Document. Nothing contained in this   Loan Agreement shall be deemed or construed to create an obligation on the part of Lender to any   third party and no third party shall have a right to enforce against Lender any right that Borrower   may have under this Loan Agreement. Without limiting the foregoing:                ( 1)  any Servicing Arrangement between Lender and  any Loan Servicer shall         constitute a contractual obligation of such Loan Servicer that is independent of the         obligation of Borrower for the payment of the Indebtedness;                (2)   Borrower shall not be a third party beneficiary of any Servicing         Arrangement; and                (3)   no payment by the Loan Servicer under any Servicing Arrangement will         reduce the amount of the Indebtedness.    Section 15.07  Severability; Entire Agreement; Amendments.          The invalidity or unenforceability of any provision of this Loan Agreement or any other   Loan Document shall not affect the validity or enforceability of any other provision of this Loan   Agreement or of any other Loan Document, all of which shall remain in full force and effect,   including the Guaranty. All of the Loan Documents contain the complete and entire agreement   among the parties as to the matters covered, rights granted, and the obligations assumed in this   Loan Agreement and the other Loan Documents. This Loan Agreement may not be amended or   modified except by written agreement signed by the parties hereto.    Section 15.08  Construction.          (a)   The captions and headings of the sections of this  Loan Agreement and the Loan   Documents are for convenience only and shall be disregarded in construing this Loan Agreement   and the Loan Documents.          (b)   Any reference in this Loan Agreement 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 Loan Agreement or to a Section or Article of this Loan   Agreement.          ( c) Any reference in this Loan Agreement to a statute or regulation shall be construed   as referring to that statute or regulation as amended from time to time.         (d)   Use of the singular in this Loan Agreement includes the plural and use of the plural  includes the singular.     Multifamily Loan and Security Agreement   (Non-Recourse)                       Form 6001.NR                        Page 86   Article 15                              06-19                    © 2019 Fannie Mae  

 

      ( e)  As used in this Loan Agreement, the term "including" means "including, but not  limited to" or "including, without limitation," and is for example only and not a limitation.         (f)   Whenever Borrower's knowledge is implicated in this Loan Agreement or the  phrase "to Borrower's knowledge" or a similar phrase is used in this Loan Agreement, 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.         (g)   Unless otherwise provided in this Loan Agreement, 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.         (h)   All references in this Loan Agreement 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.         (i)   "Lender may" shall mean at Lender's discretion, but shall not be an obligation.         G)    Ifthe  Mortgage Loan proceeds are disbursed on a date that is later than the Effective  Date, as described in Section 2.02(a)(l  ), the representations and warranties in the Loan Documents  with respect to the ownership and operation of the Mortgaged Property shall be deemed to be made  as of the disbursement date.   Section 15.09  Mortgage Loan Servicing.         All actions regarding the servicing of the Mortgage Loan, including the collection of  payments, the giving and receipt of notice, inspections of the Mortgaged Property, inspections of  books and records, and the granting of consents and approvals, may be taken by the Loan Servicer  unless Borrower receives written notice to the contrary. If Borrower receives conflicting notices  regarding the identity of the Loan Servicer or any other subject, any such written notice from  Lender shall govern. The Loan Servicer may change from time to time (whether related or  unrelated to a sale of the Mortgage Loan). If there is a change of the Loan Servicer, Borrower will  be given written notice of the change.   Section 15.10  Disclosure of Information.         Lender may furnish information regarding Borrower, Key Principal, or Guarantor, or the  Mortgaged Property to third parties with an existing or prospective interest in the servicing,  enforcement, evaluation, performance, purchase, or securitization of the Mortgage Loan, including  trustees, master servicers, special servicers, rating agencies, and organizations maintaining  databases on the underwriting and performance of multifamily mortgage loans. Borrower  irrevocably waives any and all rights it may have under applicable law to prohibit such disclosure,  including any right of privacy.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 87  Article 15                               06-19                   © 2019 Fannie Mae  

 

Section 15.11  Waiver; Conflict.         No specific waiver of any of the terms of this Loan Agreement shall be considered as a  general waiver. If any provision of this Loan Agreement is in conflict with any provision of any  other Loan Document, the provision contained in this Loan Agreement shall control.   Section 15.12  No Reliance.         Borrower acknowledges, represents, and warrants that:         (a)   it understands the nature and structure of the transactions contemplated by this Loan  Agreement and the other Loan Documents;         (b)   it is familiar with the provisions of all of the documents and instruments relating to  such transactions;         (c)   it understands the risks inherent in such transactions, including the risk of loss of  all or any part of the Mortgaged Property;         ( d)  it has had the opportunity to consult counsel; and         (e)   it has not relied on Lender for any guidance or expertise in analyzing the financial  or other consequences of the transactions contemplated by this Loan Agreement or any other Loan  Document or otherwise relied on Lender in any manner in connection with interpreting, entering  into, or otherwise in connection with this Loan Agreement, any other Loan Document, or any of  the matters contemplated hereby or thereby.   Section 15.13  Subrogation.         If, and to the extent that, the proceeds of the Mortgage Loan are used to pay, satisfy, or  discharge any obligation of Borrower for the payment of money that is secured by a pre-existing  mortgage, deed of trust, or other lien encumbering the Mortgaged Property, such Mortgage Loan  proceeds shall be deemed to have been advanced by Lender at Borrower's request, and Lender  shall be subrogated automatically, and without further action on its part, to the rights, including  lien priority, of the owner or holder of the obligation secured by such prior lien, whether or not  such prior lien is released.   Section 15.14  Counting of Days.         Except where otherwise specifically provided, any reference in this Loan Agreement to a  period of "days" means calendar days, not Business Days. If the date on which Borrower is  required to perform an obligation under this Loan Agreement is not a Business Day, Borrower  shall be required to perform such obligation by the Business Day immediately preceding such date;  provided, however, in respect of any Payment Date, or if the Maturity Date is other than a Business  Day, Borrower shall be obligated to make such payment by the Business Day immediately  following such date.   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 88  Article 15                              06-19                    © 2019 Fannie Mae  

 

 Section 15.15  Revival and Reinstatement of Indebtedness.          If the payment of all or any part of the Indebtedness by Borrower, Guarantor, or any other   Person, or the transfer to Lender of any collateral or other property should for any reason   subsequently be declared to be void or voidable under any state or federal law relating to creditors'  rights, including provisions of the Insolvency Laws relating to a Voidable Transfer, and if Lender  is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so  upon the advice of its counsel, then the amount of such Voidable Transfer or the amount of such  Voidable Transfer that Lender is required or elects to repay or restore, including all reasonable  costs, expenses, and attorneys' fees incurred by Lender in connection therewith, and the  Indebtedness shall be automatically revived, reinstated, and restored by such amount and shall  exist as though such Voidable Transfer had never been made.   Section 15.16  Time is of the Essence.         Borrower agrees that, with respect to each and every obligation and covenant contained in  this Loan Agreement and the other Loan Documents, time is of the essence.   Section 15.17  Final Agreement.         THIS  LOAN    AGREEMENT     ALONG   WITH   ALL   OF  THE  OTHER    LOAN  DOCUMENTS    REPRESENT   THE  FINAL AGREEMENT BETWEEN       THE PARTIES  WITH  RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY  EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.            All prior  or contemporaneous agreements, understandings, representations, and statements, oral or written,  are merged into this Loan Agreement and the other Loan Documents. This Loan Agreement, the  other Loan Documents, and any of their provisions may not be waived, modified, amended,  discharged, or terminated except by an agreement in writing signed by the party against which the  enforcement of the waiver, modification, amendment, discharge, or termination is sought, and then  only to the extent set forth in that agreement.   Section 15.18  WAIVER OF TRIAL BY JURY.         TO THE  MAXIMUM     EXTENT  PERMITTED   BY  APPLICABLE   LAW,  EACH  OF  BORROWER AND LENDER (a)    COVENANTS AND AGREES NOT TO ELECT A TRIAL BY  JURY WITH  RESPECT TO   ANY ISSUE ARISING OUT OF   THIS LOAN AGREEMENT OR  ANY OTHER LOAN DOCUMENT, 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 W AIYER OF  RIGHT  TO TRIAL  BY JURY  IS SEPARATELY   GIVEN   BY EACH  PARTY,  KNOWINGLY    AND  VOLUNTARILY WITH THE BENEFIT OF     COMPETENT LEGAL COUNSEL.                        [Remainder of Page Intentionally Blank]   Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                        Page 89  Article 15                               06-19                   © 2019 Fannie Mae  

 

      IN WITNESS WHEREOF, Borrower and   Lender have signed and delivered this Loan  Agreement under seal (where applicable) or have caused this Loan Agreement to be signed and  delivered under seal (where applicable) by their duly authorized representatives. Where applicable  law so provides, Borrower and Lender intend that this Loan Agreement shall be deemed to be  signed and delivered as a sealed instrument.                               BORROWER:                               SIR JEFFERSON, LLC,                              a Delaware limited liability company                               By:   STEADFAST INCOME ADVISOR, LLC,                                    a Delaware limited liability company,                                    Its Manager                                     B y:_-;/----£i>"'~-l;,oG-----\,'------( SEAL)                                    Name.                                    Title:    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                      Page S-1  Signature Page                          06-19                  © 2019 Fannie Mae  

 

                               LENDER:                                  JONES LANG LASALLE MULTIFAMILY,                                 LLC, a Delaware limited liability company                                  By:Q~~ (SEAL)                                 Name:       Rhonda D. Peare                                Title:       Closing Coordinator    Multifamily Loan and Security Agreement  (Non-Recourse)                         Form 6001.NR                          Page S-2  Signature Page                             06-19                    © 2019 Fannie Mae  

 

                                SCHEDULES & EXHIBITS     Schedules     Schedule 1    Definitions Schedule (required)                     Form 6101.FR     Schedule 2    Summary of Loan Terms (required)                    Form 6102.FR     Schedule 3    Schedule of Interest Rate Type Provisions (required) Form 6103.FR     Schedule 4    Prepayment Premium Schedule (required)              Form 6104.01     Schedule 5    Required Replacement Schedule (required)     Schedule 6    Required Repair Schedule (required)     Schedule 7    Exceptions to Representations and Warranties Schedule                   (required)     Schedule 8    Ownership Interests Schedule     Exhibits     NIA    Multifamily Loan and Security Agreement  (Non-Recourse)                           Form 6001.NR                             Page I  Schedules and Exhibits                       06-19                      © 2019 Fannie Mae  

 

Borrower hereby acknowledges and agrees that the Schedules and Exhibits referenced above are  hereby incorporated fully into this Loan Agreement by this reference and each constitutes a  substantive part of this Loan Agreement.                                                 Borrower Initials    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                    Initial Page  Schedules and Exhibits                  06-19                  © 2019 Fannie Mac  

 

                                 SCHEDULE l               TO MULTIFAMILY LOAN AND SECURITY AGREEMENT                                 Definitions Schedule                           (Interest Rate Type -Fixed Rate)         Capitalized terms used in the Loan Agreement have the meanings given to such terms in  this Definitions Schedule.   "Accrued Interest" means unpaid interest, if any, on the Mortgage Loan that has not been added  to the unpaid principal balance of the Mortgage Loan pursuant to Section 2.02(b) (Capitalization  of Accrued But Unpaid Interest) of the Loan Agreement.   "Additional Lender Repairs" means repairs of the type listed on the Required Repair Schedule  but not otherwise identified thereon that are determined advisable by Lender to keep the Mortgaged  Property in good order and repair (ordinary wear and tear excepted) and in good marketable  condition or to prevent deterioration of the Mortgaged Property.   "Additional Lender Replacements" means replacements of the type listed on the Required  Replacement Schedule but not otherwise identified thereon that are determined advisable by  Lender to keep the Mortgaged Property in good order and repair ( ordinary wear and tear excepted)  and in good marketable condition or to prevent deterioration of the Mortgaged Property.   "Amortization Period" has the meaning set forth in the Summary of Loan Terms.   "Amortization Type" has the meaning set forth in the Summary of Loan Terms.   "Bankruptcy Event" means any one or more of the following:         (a)   the commencement, filing or continuation of a voluntary case or proceeding under  one or more of the Insolvency Laws by Borrower;         (b)   the acknowledgment in writing by Borrower ( other than to Lender in connection  with a workout) that it is unable to pay its debts generally as they mature;         ( c)  the making of a general assignment for the benefit of creditors by Borrower;         ( d)  the commencement, filing or continuation of an involuntary case or proceeding  under one or more Insolvency Laws against Borrower; or         (e)   the appointment of a receiver (other than a receiver appointed at the direction or  request of Lender under the terms of the Loan Documents), liquidator, custodian, sequestrator,  trustee or other similar officer who exercises control over Borrower or any substantial part of the  assets of Borrower;   Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)    Form 6101.FR                         Page 1  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

provided, however, that any proceeding or case under (d)  or (e)  above shall not be a Bankruptcy  Event until the ninetieth (90th) day after filing (if not earlier dismissed) so long as such proceeding  or case occurred without the consent, encouragement or active participation of Borrower,  Guarantor, Key Principal, or any Borrower Affiliate (in which event such case or proceeding shall  be a Bankruptcy Event immediately).   "Borrower" means, individually (and jointly and severally (solidarily instead for purposes of  Louisiana law) if more than one), the entity (or entities) identified as "Borrower" in the first  paragraph of the Loan Agreement.   "Borrower Affiliate" means, as to Borrower, Guarantor or Key Principal:         (a)   any Person (other  than the shareholders or beneficial owners of any Publicly-Held  Corporation or a Publicly-Held Trust) that owns any direct ownership interest in Borrower,  Guarantor or Key Principal;         (b)   any Person that indirectly owns, with the power to vote, twenty percent (20%) or  more of the ownership interests in Borrower, Guarantor or Key Principal;         (c)   any Person Controlled by, under common Control with, or which Controls,  Borrower, Guarantor or Key Principal;         ( d)  any entity in which Borrower, Guarantor or Key Principal directly or indirectly  owns, with the power to vote, twenty percent (20%) or more of the ownership interests in such  entity; or         (e)   any other individual that is related (to the third degree of consanguinity) by blood  or marriage to Borrower, Guarantor or Key Principal.   "Borrower Requested Repairs" means repairs not listed on the Required Repair Schedule  requested by Borrower to be reimbursed from the Repairs Escrow Account and determined  advisable by Lender to keep the Mortgaged Property in good order and repair and in a good  marketable condition or to prevent deterioration of the Mortgaged Property.   "Borrower  Requested Replacements" means  replacements not listed on the Required  Replacement Schedule requested by Borrower to be reimbursed from the Replacement Reserve  Account and determined advisable by Lender to keep the Mortgaged Property in good order and  repair and in a good marketable condition or to prevent deterioration of the Mortgaged Property.   "Borrower's General Business Address" has the meaning set forth in the Summary of Loan  Terms.   "Borrower's Notice Address" has the meaning set forth in the Summary of Loan Terms.    Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                        Page 2  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

"Business Day" means any day other than (a) a Saturday, (b) a Sunday, (c) a day on which Lender  is not open for business, or ( d) a day on which the Federal Reserve Bank of New York is not open  for business.   "Collateral Account Funds" means, collectively, the funds on deposit in any or all of the  Collateral Accounts, including the Reserve/Escrow Account Funds.   "Collateral Accounts" means any account designated as such by Lender pursuant to a Collateral  Agreement or as established pursuant to this Loan Agreement, including the Reserve/Escrow  Account.   "Collateral Agreement" means any separate agreement between Borrower and Lender and any  other party for the establishment of any other fund, reserve or account affecting the Mortgage  Loan.   "Completion Period" has the meaning set forth in the Summary of Loan Terms.   "Condemnation Action" has the meaning set forth in the Security Instrument.   "Control" (including with correlative meanings, such as "Controlling," "Controlled by" and  "under common  Control with") means, as applied to any entity, the possession, directly or  indirectly, of the power to direct or cause the direction of the management and operations of such  entity, (including, by way of illustration, the power to (1) elect the majority of the directors of such  entity; (2) make management decisions on behalf of or independently select the manager of a  limited liability company or the managing partner of a partnership; (3) independently remove and  then select a majority of those individuals exercising managerial authority over any entity; and ( 4)  limit or otherwise modify the extent of control over the management and operations of an entity  by any Person exercising managerial authority over such entity), whether through the ownership  of voting securities or other ownership interests, by contract or otherwise.   "Credit Score" means a numerical value or a categorization derived from a statistical tool or  modeling system used to measure credit risk and predict the likelihood of certain credit behaviors,  including default.   "Debt Service Amounts" means the Monthly Debt Service Payments and all other amounts  payable under the Loan Agreement, the Note, the Security Instrument or any other Loan  Document.   "Default Rate" means an interest rate equal to the lesser of:         (a)   the sum of the Interest Rate plus four (4) percentage points; or         (b)   the maximum interest rate which may be collected from Borrower under applicable  law.   "Definitions Schedule" means this Schedule 1 (Definitions Schedule) to the Loan Agreement.   Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                         Page3  Fannie Mae                               06-19                    © 2019 Fannie Mae  

 

"Division" means the filing of a certificate of division, adoption of a plan of division, amending  of any organizational documents, or any other actions taken, permitted, or consented to in order to  divide a Person into two or more Persons pursuant to a plan of division such as contemplated under  the Delaware Limited Liability Company Act or any other similar requirement of law in any  jurisdiction. The term "Divide" shall have a correlative meaning.   "Economic Sanctions" means any economic or financial sanction administered or enforced by the  United States Government (including, without limitation, those administered by OF AC at  http://www.treasury.gov/about/organizational-structure/offices/Pages/Office-of-Foreign-Assets­ Control.aspx), the U.S. Department of Commerce, or the U.S. Department of State.   "Effective Date" has the meaning set forth in the Summary of Loan Terms.   "Employee Benefit Plan" means a plan described in Section 3(3) ofERISA, regardless of whether  the plan is subject to ERISA.   "Enforcement Costs" has the meaning set forth in the Security Instrument.   "Environmental  Indemnity Agreement"  means  that certain Environmental Indemnity  Agreement dated as of the Effective Date made 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 Inspections" has the meaning set forth m the Environmental Indemnity  Agreement.   "Environmental Laws" has the meaning set forth in the Environmental Indemnity Agreement.   "ERISA" means the Employee Retirement Income Security Act of 1974, as amended.   "ERISA Affiliate" shall mean, with respect to Borrower, any entity that, together with Borrower,  would be treated as a single employer under Section 414(b) or ( c) of the Internal Revenue Code,  or Section 4001(a)(14) of ERISA, or the regulations thereunder.   "ERISA Plan" means any employee pension benefit plan within the meaning of Section 3(2) of  ERISA (or  related trust) that is subject to the requirements of Title IV of ERISA, Sections 430 or  431 of the Internal Revenue Code, or Sections 302,303, or 304 ofERISA, which is maintained or  contributed to by Borrower or its ERISA Affiliates.   "Event of Default" means the occurrence of any event listed in Section 14.01 (Events of Default)  of the Loan Agreement.   "Exceptions to Representations and Warranties Schedule" means that certain Schedule 7  (Exceptions to Representations and Warranties Schedule) to the Loan Agreement.   "First Payment Date" has the meaning set forth in the Summary of Loan Terms.   Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                         Page 4  Fannie Mae                               06-19                    © 2019 Fannie Mae  

 

"First Principal and Interest Payment Date" has the meaning set forth in the Summary of Loan  Terms, if applicable.   "Fixed Rate" has the meaning set forth in the Summary of Loan Terms.   "Fixtures" has the meaning set forth in the Security Instrument.   "Force Majeure" shall mean acts of God, acts of war, civil disturbance, governmental action  (including the revocation or refusal to grant licenses or permits, where such revocation or refusal  is not due to the fault of Borrower), strikes, lockouts, fire, unavoidable casualties or any other  causes beyond the reasonable control of Borrower (other  than lack of financing), and of which  Borrower shall have notified Lender in writing within ten (10) days after its occurrence.   "Foreclosure Event" means:          (a)  foreclosure under the Security Instrument;          (b)  any other exercise by Lender of rights and remedies (whether under the Security  Instrument or under applicable law, including Insolvency Laws) as holder of the Mortgage Loan  and/or the Security Instrument, as a result of which Lender (or its designee or nominee) or a third  party purchaser becomes owner of the Mortgaged Property;          (c)  delivery by Borrower to Lender (or its designee or nominee) of a deed or other  conveyance of Borrower's interest in the Mortgaged Property in lieu of any of the foregoing; or          (d)  in Louisiana, any dation en paiement.   "Goods" has the meaning set forth in the Security Instrument.   "Governmental Authority" means any court, board, commission, department or body of any  municipal, county, state or federal governmental unit, or any subdivision of any of them, that has  or acquires jurisdiction over Borrower or the Mortgaged Property or the use, operation or  improvement of the Mortgaged Property.   "Guarantor" means, individually and collectively, any guarantor of the Indebtedness or any other  obligation of Borrower under any Loan Document.   "Guarantor Bankruptcy Event" means any one or more of the following:         (a)   the commencement, filing or continuation of a voluntary case or proceeding under  one or more of the Insolvency Laws by Guarantor;         (b)   the acknowledgment in writing by Guarantor (other  than to Lender in connection  with a workout) that it is unable to pay its debts generally as they mature;         (c)   the making of a general assignment for the benefit of creditors by Guarantor;   Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                         Page 5  Fannie Mae                               06-19                    © 2019 Fannie Mae  

 

      ( d)  the commencement, filing or continuation of an involuntary case or proceeding  under one or more Insolvency Laws against Guarantor; or         (e)   the appointment of a receiver, liquidator, custodian, sequestrator, trustee or other  similar officer who exercises control over Guarantor or any substantial part of the assets of  Guarantor, as applicable;   provided, however, that any proceeding or case under (d) or (e) above shall not be a Guarantor  Bankruptcy Event until the ninetieth (90th) day after filing (if not earlier dismissed) so long as  such proceeding or case occurred without the consent, encouragement or active participation  of Borrower, Guarantor, Key Principal, or any Borrower Affiliate (in which event such case or  proceeding shall be a Guarantor Bankruptcy Event immediately).   "Guarantor's General Business Address" has the meaning set forth in the Summary of Loan  Terms.   "Guarantor's Notice Address" has the meaning set forth in the Summary of Loan Terms.   "Guaranty" means,  individually and collectively, any Payment Guaranty, Non-Recourse  Guaranty or other guaranty executed by Guarantor in connection with the Mortgage Loan.   "Immediate Family Members" means a child, stepchild, grandchild, spouse, sibling, or parent,  each of whom is not a Prohibited Person.   "Imposition Deposits" has the meaning set forth in the Security Instrument.   "Impositions" has the meaning set forth in the Security Instrument.   "Improvements" has the meaning set forth in the Security Instrument.   "Indebtedness" has the meaning set forth in the Security Instrument.   "Initial Replacement Reserve Deposit" has the meaning set forth in the Summary of Loan Terms.   "Insolvency Laws" means the United States Bankruptcy Code, 11 U.S.C. Section 101, et seq.,  together with any other federal or state law affecting debtor and creditor rights or relating to the  bankruptcy, insolvency, reorganization, arrangement, moratorium, readjustment of debt,  dissolution, liquidation or similar laws, proceedings, or equitable principles affecting the  enforcement of creditors' rights, as amended from time to time.   "Insolvent" means:         (a)   that the sum total of all of a specified Person's liabilities (whether secured or  unsecured, contingent or fixed, or liquidated or unliquidated) is in excess of the value of such  Person's non-exempt assets, i.e., all of the assets of such Person that are available to satisfy claims  of creditors; or   Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                        Page 6  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

      (b)   such Person's inability to pay its debts as they become due.   "Intended Prepayment Date"  means the date upon which Borrower intends to make a  prepayment on the Mortgage Loan, as set forth in the Prepayment Notice.   "Interest Accrual Method" has the meaning set forth in the Summary of Loan Terms.   "Interest Only Term" has the meaning set forth in the Summary of Loan Terms.   "Interest Rate" means the Fixed Rate.   "Interest Rate Type" has the meaning set forth in the Summary of Loan Terms.   "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended.   "Investor" means any Person to whom Lender intends to (a) sell, transfer, deliver or assign the  Mortgage Loan in the secondary mortgage market, or (b) sell an MBS backed by the Mortgage  Loan.   "Key Principal" means, collectively:         (a)   the natural person(s) or entity that Controls Borrower that Lender determines is  critical to the successful operation and management of Borrower and the Mortgaged Property, as  identified as such in the Summary of Loan Terms; or         (b)   any natural person or entity who becomes a Key Principal after the date of the Loan  Agreement and is identified as such in an assumption agreement, or another amendment or  supplement to the Loan Agreement.   "Key Principal's General Business Address" has the meaning set forth in the Summary of Loan  Terms.   "Key Principal's Notice Address" has the meaning set forth in the Summary of Loan Terms.   "Land" means the land described in Exhibit A to the Security Instrument.   "Last Interest Only Payment Date" has the meaning set forth in the Summary of Loan Terms, if  applicable.   "Late Charge" means an amount equal to the delinquent amount then due under the Loan  Documents multiplied by five percent (5%).   "Leases" has the meaning set forth in the Security Instrument.   "Lender" means the entity identified as "Lender" in the first paragraph of the Loan Agreement  and its transferees, successors and assigns, or any subsequent holder of the Note.   Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                        Page 7  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

"Lender's General Business Address" has the meaning set forth in the Summary of Loan Terms.   "Lender's Notice Address" has the meaning set forth in the Summary of Loan Terms.   "Lender's Payment Address" has the meaning set forth in the Summary of Loan Terms.   "Lien" has the meaning set forth in the Security Instrument.   "Loan Agreement" means the Multifamily Loan and Security Agreement dated as of the Effective  Date executed by and between Borrower and Lender to which this  Definitions Schedule is  attached, as the same may be amended, restated, replaced, supplemented or otherwise modified  from time to time.   "Loan Amount" has the meaning set forth in the Summary of Loan Terms.   "Loan Application" means the application for the Mortgage Loan submitted by Borrower to  Lender.   "Loan Documents"  means  the Note, the Loan Agreement, the Security Instrument, the  Environmental Indemnity Agreement, the Guaranty, all guaranties, all indemnity agreements, all  Collateral Agreements, all O&M Plans, and any other documents now or in the future executed by  Borrower, Guarantor, Key Principal, any other guarantor or any other Person in connection with  the Mortgage Loan, as such documents may be amended, restated, replaced, supplemented or  otherwise modified from time to time.   "Loan Servicer" means the entity that from time to time is designated by Lender to collect  payments and deposits and receive notices under the Note, the Loan Agreement, the Security  Instrument and any other Loan Document, and otherwise to service the Mortgage Loan for the  benefit of Lender. Unless Borrower receives notice to the contrary, the Loan Servicer shall be the  Lender originally named on the Summary of Loan Terms.   "Loan Term" has the meaning set forth in the Summary of Loan Terms.   "Loan Year" has the meaning set forth in the Summary of Loan Terms.   "Material Commercial Lease" means:         (a)   any Lease that, individually or in the aggregate with other Leases entered into with  the same tenant, comprises five percent (5%) or more of the total gross income at the Mortgaged  Property on an annualized basis; or         (b)   regardless of the percentage of the total gross income at the Mortgaged Property  that it comprises, any Lease relating to:    Schedule I to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                        Page 8  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

            (1)   solar power, thermal power generation, or co-power generation, or for the        installation of solar panels or any other electrical power generation equipment, and any        related power purchase agreement; or               (2)   any dwelling unit at the Mortgaged Property leased to Guarantor, Key        Principal, or another Borrower Affiliate.   "Maturity Date" has the meaning set forth in the Summary of Loan Terms.   "Maximum Inspection Fee" has the meaning set forth in the Summary of Loan Terms.   "Maximum Repair Cost"  shall be the amount(s) set forth in the Required Repair Schedule, if  any.   "Maximum Repair Disbursement Interval" has the meaning set forth in the Summary of Loan  Terms.   "Maximum   Replacement Reserve Disbursement Interval" has the meaning set forth in the  Summary of Loan Terms.   "Maximum   Restoration Reserve Disbursement Interval" means one time(s) per calendar  month.   "MBS"  means an investment security that represents an undivided beneficial interest in a pool of  mortgage loans or participation interests in mortgage loans held in trust pursuant to the terms of a  governing trust document.   "Mezzanine Debt" means a loan to a direct or indirect owner of Borrower secured by a pledge of  such owner's interest in an entity owning a direct or indirect interest in Borrower.   "Minimum Repairs Disbursement Amount" has the meaning set forth in the Summary of Loan  Terms.   "Minimum  Replacement Reserve Disbursement Amount" has the meaning set forth in the  Summary of Loan Terms.   "Minimum Restoration Reserve Disbursement Amount" means $5,000.00.   "Monthly Debt Service Payment" has the meaning set forth in the Summary of Loan Terms.   "Monthly Replacement Reserve Deposit" has the meaning set forth in the Summary of Loan  Terms.   "Mortgage Loan" means the mortgage loan made by Lender to Borrower in the principal amount  of the Note made pursuant to the Loan Agreement, evidenced by the Note and secured by the Loan  Documents that are expressly stated to be security for the Mortgage Loan.   Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                        Page 9  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

"Mortgaged Property" has the meaning set forth in the Security Instrument.   "Multifamily Project" has the meaning set forth in the Summary of Loan Terms.   "Multifamily Project Address" has the meaning set forth in the Summary of Loan Terms.   "Net Cash Flow" means, for any specified period, the total of (a) the net rental income for the  Mortgaged Property, plus (b) other allowable income for the Mortgaged Property, if any, minus  (c) operating expenses for the Mortgaged Property, minus (d) the full amount underwritten for the  Replacement Reserve Account (regardless of whether deposits have been or will be waived or  reduced), and as adjusted for economic vacancy and other factors by Lender for the specific asset  class or loan type.   "Non-Recourse Guaranty"  means, if applicable, that certain Guaranty of Non-Recourse  Obligations of even date herewith executed by Guarantor to and for the benefit of Lender, as the  same may be amended, restated, replaced, supplemented or otherwise modified from time to time.   "Note" means that certain Multifamily Note of even date herewith in the original principal amount  of the stated Loan Amount made by Borrower in favor of Lender, and all schedules, riders, allonges  and addenda attached thereto, as the same may be amended, restated, replaced, supplemented or  otherwise modified from time to time.   "O&M Plan" has the meaning set forth in the Environmental Indemnity Agreement.   "OF AC" means the United States Treasury Department, Office of Foreign Assets Control, and  any successor thereto.   "Ownership Interests Schedule" means that certain Schedule 8 (Ownership Interests Schedule)  to the Loan Agreement.   "Payment Date" means the First Payment Date and the first day of each month thereafter until the  Mortgage Loan is fully paid.   "Payment Guaranty" means, if applicable, that certain Guaranty (Payment) of even date herewith  executed by Guarantor to and for the benefit of Lender, as the same may be amended, restated,  replaced, supplemented or otherwise modified from time to time.   "Permitted Encumbrance" has the meaning set forth in the Security Instrument.   "Permitted Mezzanine Debt" means Mezzanine Debt incurred by a direct or indirect owner or  owners of Borrower where the exercise of any of the rights and remedies by the holder or holders  of the Mezzanine Debt would not in any circumstance cause (a) a change in Control in Borrower,  Key Principal, or Guarantor, or (b) a Transfer of a direct or indirect Restricted Ownership Interest  in Borrower, Key Principal, or Guarantor.    Schedule I to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                        Page 10  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

"Permitted Preferred Equity" means Preferred Equity that does not (a) require mandatory  dividends, distributions, payments or returns (including at maturity or in connection with a  redemption), or (b) provide the Preferred Equity owner with rights or remedies on account of a  failure to receive any preferred dividends, distributions, payments or returns (or,  if such rights are  provided, the exercise of such rights do not violate the Loan Documents or are otherwise exercised  with the prior written consent of Lender in accordance with Article 11 (Liens, Transfers and  Assumptions) of the Loan Agreement and the payment of all applicable fees and expenses as set  forth in Section 11.03(g) (Further Conditions to Transfers and Assumption) of the Loan  Agreement).   "Permitted Prepayment Date" means the last Business Day of a calendar month.   "Person" means an individual, an estate, a trust, a corporation, a partnership, a limited liability  company or any other organization or entity (whether governmental or private).   "Personal Property" means all of Borrower's present and hereafter acquired right, title, and  interest in the 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, 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.   "Personalty" has the meaning set forth in the Security Instrument.   "Preferred Equity" means a direct or indirect equity ownership interest in, economic interests in,  or rights with respect to, Borrower that provide an equity owner preferred dividend, distribution,  payment, or return treatment relative to other equity owners.   "Prepayment Lockout Period" has the meaning set forth in the Summary of Loan Terms.   "Prepayment Notice" means the written notice that Borrower is required to provide to Lender in  accordance with Section 2.03 (Lockout/Prepayment) of the Loan Agreement in order to make a  prepayment on the Mortgage Loan, which shall include, at a minimum, the Intended Prepayment  Date.   "Prepayment  Premium"  means the amount payable by Borrower in connection with a  prepayment of the Mortgage Loan, as provided in Section 2.03 (Lockout/Prepayment) of the Loan  Agreement and calculated in accordance with the Prepayment Premium Schedule.    Schedule I to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                        Page 11  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

"Prepayment Premium Period End Date" or "Yield Maintenance Period End Date" has the  meaning set forth in the Summary of Loan Terms.   "Prepayment Premium Period Term" or "Yield Maintenance Period Term" has the meaning  set forth in the Summary of Loan Terms.   "Prepayment  Premium  Schedule" means that certain Schedule 4 (Prepayment Premium  Schedule) to the Loan Agreement.   "Prohibited Person" means:         (a)   any Person with whom Lender or Fannie Mae is prohibited from doing business  pursuant to any law, rule, regulation, judicial proceeding or administrative directive; or         (b)   any Person identified on the United States Department of Housing and Urban  Development's "Limited Denial of Participation, HUD Funding Disqualifications and Voluntary  Abstentions List," or on the General Services Administration's "System for Award Management  (SAM)" exclusion list, each of which may be amended from time to time, and any successor or  replacement thereof; or         (c)   any Person that is determined by Fannie Mae to pose an unacceptable credit risk  due to the aggregate amount of debt of such Person owned or held by Fannie Mae; or         (d)   any Person that has caused any unsatisfactory experience of a material nature with  Fannie Mae or Lender, such as a default, fraud, intentional misrepresentation, litigation, arbitration  or other similar act.   "Property Jurisdiction" has the meaning set forth in the Security Instrument.   "Property Square Footage" has the meaning set forth in the Summary of Loan Terms.   "Publicly-Held Corporation" means a corporation, the outstanding voting stock of which is  registered under Sections 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended.   "Publicly-Held Trust" means a real estate investment trust, the outstanding voting shares or  beneficial interests of which are registered under Sections l 2(b) or l 2(g) of the Securities  Exchange Act of 1934, as amended.   "Rents" has the meaning set forth in the Security Instrument.   "Repair Threshold" has the meaning set forth in the Summary of Loan Terms.   "Repairs" means, individually and collectively, the Required Repairs, Borrower Requested  Repairs, and Additional Lender Repairs.    Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                        Page 12  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

"Repairs Escrow Account" means the account established by Lender into which the Repairs  Escrow Deposit is deposited to fund the Repairs.   "Repairs Escrow Account Administrative Fee" has the meaning set forth in the Summary of  Loan Terms.   "Repairs Escrow Deposit" has the meaning set forth in the Summary of Loan Terms.   "Replacement Reserve Account" means the account established by Lender into which the  Replacement Reserve Deposits are deposited to fund the Replacements.   "Replacement Reserve Account Administration Fee" has the meaning set forth in the Summary  of Loan Terms.   "Replacement Reserve Account Interest Disbursement Frequency" has the meaning set forth  in the Summary of Loan Terms.   "Replacement Reserve Deposits" means the Initial Replacement Reserve Deposit, Monthly  Replacement Reserve Deposits and any other deposits to the Replacement Reserve Account  required by the Loan Agreement.   "Replacement Threshold" has the meaning set forth in the Summary of Loan Terms.   "Replacements" means, individually and collectively, the Required Replacements, Borrower  Requested Replacements and Additional Lender Replacements.   "Required Repair Schedule" means that certain Schedule 6 (Required Repair Schedule) to the  Loan Agreement.   "Required Repairs" means those items listed on the Required Repair Schedule.   "Required Replacement Schedule" means that certain Schedule 5 (Required Replacement  Schedule) to the Loan Agreement.   "Required Replacements" means those items listed on the Required Replacement Schedule.   "Reserve/Escrow Account  Funds"  means, collectively, the funds on deposit in the  Reserve/Escrow Accounts.   "Reserve/Escrow Accounts" means, individually and collectively, the Replacement Reserve  Account, the Repairs Escrow Account, and the Restoration Reserve Account.   "Residential Lease" means a Lease of an individual dwelling unit.    Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                        Page 13  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

"Restoration" means restoring and repairing the Mortgaged Property to the equivalent of its  physical condition immediately prior to such casualty or to another condition approved by Lender  following a casualty.   "Restoration Reserve Account" means, if applicable, the account established by Lender into  which insurance proceeds are deposited in order to fund a Restoration following a casualty or event  of loss.   "Restoration Reserve Account Administration Fee" means $0.00.   "Restoration Threshold means $10,000.00.   "Restricted Ownership Interest" means, with respect to any entity, the following:         (a)   if such entity is a general partnership or a joint venture, fifty percent (50%) or more  of all general partnership or joint venture interests in such entity;         (b)   if such entity is a limited partnership:               (1)   the interest of any general partner; or               (2)   fifty percent (50%) or more of all limited partnership interests m such        entity;         (c)   if such entity is a limited liability company or a limited liability partnership:               (1)   the interest of any managing member or the contractual rights of any non-       member manager; or               (2)   fifty percent (50%) or more of all membership or other ownership interests        in such entity;         (d)   if such entity is a corporation (other than a Publicly-Held Corporation) with only  one class of voting stock, fifty percent (50%) or more of voting stock in such corporation;         ( e)  if such entity is a corporation ( other than a Publicly-Held Corporation) with more  than one class of voting stock, the amount of shares of voting stock sufficient to have the power to  elect the majority of directors of such corporation; or         (f)   if such entity is a trust (other than a land trust or a Publicly-Held Trust), the power  to Control such trust vested in the trustee of such trust or the ability to remove, appoint or substitute  the trustee of such trust (unless the trustee of such trust after such removal, appointment or  substitution is a trustee identified in the trust agreement approved by Lender).   "Review Fee" means the non-refundable fee of $3,000 payable to Lender.    Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                        Page 14  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

"Sanctioned Country" means a country subject to either a targeted or comprehensive country­ wide sanctions program administered and enforced by OF AC, which list is updated from time to  time.   "Sanctioned Person" means (a) a Person named on the list of "Specially Designated Nationals  and Blocked Persons" maintained by OFAC, available at http://www.treasury.gov/resource­ center/sanctions/SDN-List/Pages/default.aspx, or as otherwise published from time to time; (b) (1)  an agency of the government of a Sanctioned Country, (2) an organization controlled by a  Sanctioned Country, or (3) a Person resident in a Sanctioned Country, to the extent any Person  described in clauses (1 ), (2) or (3) is the subject of a sanctions program administered by OF AC;  and, (c) a Person whose property and interests in property are blocked pursuant to an Executive  Order or regulations administered by OF AC consistent with the guidance issued by OF AC.   "Schedule oflnterest Rate Type Provisions" means that certain Schedule 3 (Schedule oflnterest  Rate Type Provisions) to the Loan Agreement.   "Security Instrument" means that certain multifamily mortgage, deed to secure debt or deed of  trust executed and delivered by Borrower as security for the Mortgage Loan and encumbering the  Mortgaged Property, including all riders or schedules attached thereto, as the same may be  amended, restated, replaced, supplemented or otherwise modified from time to time.   "Short-Term Rental" means any Lease or master Lease (including subleases, licenses, and other  possessory interests, whether oral or written) of an individual dwelling unit, for which the intended  occupancy of the dwelling unit is for a period or periods of less than thirty (30) days, irrespective  of the stated term of the Lease, including any Lease:         (a)   for corporate tenant and guest suite purposes; or         (b)   with an agreement or arrangement between either:               (i)   Borrower and a tenant whereby the tenant may enter into a separate        agreement or arrangement with a Short-Term Rental Provider to offer Short-Term Rentals        at the Mortgaged Property; or               (ii)  Borrower and a Short-Term Rental Provider, pursuant to which tenants may        offer Short-Term Rentals at the Mortgaged Property.   "Short-Term Rental Provider" means any platform or provider (including any internet or online  service platform or provider) that offers Short-Term Rental services and arrangements, including  booking and reservation services to guests and customers.   "Servicing Arrangement" means any arrangement between Lender and the Loan Servicer for loss  sharing or interim advancement of funds.   "Software" has the meaning set forth in the Security Instrument.   Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)     Form 6101.FR                        Page 15  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

"Summary of Loan Terms" means that certain Schedule 2 (Summary of Loan Terms) to the Loan  Agreement.   "Taxes" has the meaning set forth in the Security Instrument.   "Title Policy" means the mortgagee's loan policy of title insurance issued in connection with the  Mortgage Loan and insuring the lien of the Security Instrument as set forth therein, as approved  by Lender.   "Total Parking Spaces" has the meaning set forth in the Summary of Loan Terms.   "Total Residential Units" has the meaning set forth in the Summary of Loan Terms.   "Transfer" means:         (a)   a sale, assignment, transfer or other disposition (whether voluntary, involuntary, or  by operation of law), other than Residential Leases, Material Commercial Leases or non-Material  Commercial Leases permitted by this Loan Agreement;         (b)   a granting, pledging, creating or attachment of a lien, encumbrance or security  interest (whether voluntary, involuntary, or by operation oflaw);         ( c)  an issuance or other creation of a direct or indirect ownership interest;         ( d)  a withdrawal, retirement, removal or involuntary resignation of any owner or  manager of a legal entity; or         (e)   a merger, consolidation, dissolution, Division or liquidation of a legal entity.   "Transfer Fee" means a fee equal to one percent (1 %) of the unpaid principal balance of the  Mortgage Loan payable to Lender.   "U CC" has the meaning set forth in the Security Instrument.   "UCC Collateral" has the meaning set forth in the Security Instrument.   "Voidable Transfer" means any fraudulent conveyance, preference or other voidable or  recoverable payment of money or transfer of property.   "Yield Maintenance Period End Date" or "Prepayment Premium Period End Date" has the  meaning set forth in the Summary of Loan Terms.   "Yield Maintenance Period Term" or "Prepayment Premium Period Term" has the meaning  set forth in the Summary of Loan Terms.    Schedule 1 to Multifamily Loan and  Security Agreement - Definitions Schedule  (Interest Rate Type - Fixed Rate)    Form 6101.FR                        Page 16  Fannie Mae                               06-19                   © 2019 Fannie Mae  

 

                                 SCHEDULE2              TO MULTIFAMILY LOAN AND       SECURITY AGREEMENT                                Summary of Loan Terms                           (Interest Rate Type - Fixed Rate)                                     SIR JEFFERSON, LLC, a   Borrower                                   Delaware limited liability company                                    JONES LANG LASALLE MULTIFAMILY, LLC,   Lender                                   a Delaware limited liability company                                    STEADFAST INCOME REIT, INC., a Maryland   Key Principal                                   corporation                                    STEADFAST INCOME REIT, INC., a Maryland   Guarantor                                   corporation    Multifamily Project             Jefferson at Perimeter Apartments                                  1;tWJ1llRES$,s~:1~g1                                   18100 Von Karman Ave, Suite 500   Borrower's General Business     Irvine, Ca 92612   Address                         Attn: Kevin J. Keating                                       Ana Marie del Rio                                    18100 Von Karman Ave, Suite 500                                   Irvine, Ca 92612                                   Attn: Kevin J. Keating                                       Ana Marie del Rio                                   Email: AnaMarie.delRio@steadfastCo.com    Borrower's Notice Address       with a courtesy copy to Borrower's counsel:                                    DeFrenza Lee LLP                                   3200 Park Center Drive, Suite 1160                                   Costa Mesa, California 92626                                   Attention: Marcello F. De Frenza                                   Email: marc@defrenzalee.com                                    4867 Ashford Dunwoody Road   Multifamily Project Address                                   Atlanta, Georgia 30338   (01564925;2}  Schedule 2 to Multifamily Loan and  Security Agreement - Summary of Loan  Terms (Interest Rate Type - Fixed Rate) Form 6102.FR                      Page 1  Fannie Mae                               12-17                   © 2017 Fannie Mae  

 

 Multifamily Project County      DeKalb                                    18100 Von Karman Ave, Suite 500                                   Irvine, Ca 92612   Key Principal's General Business                                   Attn: Kevin J. Keating   Address                                       Ana Marie del Rio                                    18100 Von Karman Ave, Suite 500                                   Irvine, Ca 92612                                   Attn: Kevin J. Keating                                       Ana Marie del Rio                                   Email: AnaMarie.delRio@steadfastCo.com    Key Principal's Notice Address  with a courtesy copy to Guarantor's counsel:                                    DeFrenza Lee LLP                                   3200 Park Center Drive, Suite 1160                                   Costa Mesa, CA 92626                                   Attention: Marcello F. De Frenza                                   Email: marc@defrenzalee.com                                    18100 Von Karman Ave, Suite 500   Guarantor's General Business    Irvine, Ca 92612   Address                         Attn: Kevin J. Keating                                       Ana Marie del Rio                                    18100 Von Karman Ave, Suite 500                                   Irvine, Ca 92612                                   Attn: Kevin J. Keating                                       Ana Marie del Rio                                   Email: AnaMarie.delRio@steadfastCo.com    Guarantor's Notice Address      with a courtesy copy to Guarantor's counsel:                                    DeFrenza Lee LLP                                   3200 Park Center Drive, Suite 1160                                   Costa Mesa, CA 92626                                   Attention: Marcello F. De Frenza                                   Email: marc@defrenzalee.com                                    21 77 Youngman A venue   Lender's General Business                                   St. Paul, Minnesota 5 5116   Address                                   Attn: Loan Servicing   (01564925;2)  Schedule 2 to Multifamily Loan and  Security Agreement - Summary of Loan  Terms (Interest Rate Type - Fixed Rate) Form 6102.FR                      Page 2  Fannie Mae                               12-17                   © 2017 Fannie Mae  

 

                                 2177 Youngman A venue                                   St. Paul, Minnesota 55116   Lender's Notice Address                                   Attn: Loan Servicing                                   Email: loanservicing@am.jll.com                                    7233 Solution Center   Lender's Payment Address                                   Chicago, Illinois 60677-7002     Property Square Footage         24.744    Total Parking Spaces            859    Total Residential Units         504                                    D     Yes   Affordable Housing Property                                         No     Amortization Period             Three hundred sixty (360) months                                    D     Amortizing   Amortization Type               D     Full Term Interest Only                                   ~     Partial Interest Only    Effective Date                  As of September 20, 2019.    First Payment Date              The first day of November, 2019.    First Principal and Interest                                   The first day of November, 2025.   Payment Date    Fixed Rate                      3.48%    {01564925;2)  Schedule 2 to Multifamily Loan and  Security Agreement - Summary of Loan  Terms (Interest Rate Type - Fixed Rate) Form 6102.FR                       Page3  Fannie Mae                               12-17                   © 2017 Fannie Mae  

 

                                 D     30/360 (computed on the basis of a three                                   hundred sixty (360) day year consisting of twelve (12)                                   thirty (30) day months).                                    or                                    ~     Actual/360 ( computed on the basis of a three   Interest Accrual Method         hundred sixty (360) day year and the actual number of                                   calendar days during the applicable month, calculated                                   by multiplying the unpaid principal balance of the                                   Mortgage Loan by the Interest Rate, dividing the                                   product by three hundred sixty (360), and multiplying                                   the quotient obtained by the  actual number of days                                   elapsed in the applicable month).    Interest Only Term              Seventy-two (72) months    Interest Rate                   The Fixed Rate    Interest Rate Type              Fixed Rate    Last Interest Only Payment Date The first day of October, 2025.    Loan Amount                     $73,800,000.00    Loan Term                       One hundred twenty (120) months                                    The period beginning on the Effective Date and ending   Loan Year                       on the last day of September, 2020, and each                                   successive twelve (12) month period thereafter.                                    The first day of October, 2029, or any earlier date on                                   which the unpaid principal balance of the Mortgage   Maturity Date                                   Loan becomes due and payable by acceleration or                                   otherwise.                                    (i)   $221,154.00 for the First Payment Date;   Monthly Debt Service Payment                                   (ii)  for each Payment Date thereafter through and                                         including the Last Interest Only Payment Date:   {01564925;2}  Schedule 2 to Multifamily Loan and  Security Agreement- Summary of Loan  Terms (Interest Rate Type - Fixed Rate) Form 6102.FR                      Page 4  Fannie Mae                               12-17                   © 2017 Fannie Mae  

 

                                        (a)   $199,752.00 if the prior month was a                                                28-day month;                                           (b)   $206,886.00 if the prior month was a                                                29-day month;                                           (c)   $214,020.00 if the prior month was a                                                30-day month; and                                           (d)   $221,154.00 if the prior month was a                                                31-day month; and                                    (iii) $330,571.61 for the First Principal and Interest                                   Payment Date and each Payment Date thereafter until                                   the Mortgage Loan is fully paid.    Prepayment Lockout Period       The -0- Loan Year of the term of the Mortgage Loan.     Yield Maintenance Period End   Date                                   The last day of March, 2029.    Prepayment Premium Period End   Date    Yield Maintenance Period Term                  Q!.               One hundred fourteen (114) months   Prepayment Premium Period   Term                                    Within one  hundred eighty (180) days after the   Completion Period              Effective Date or as otherwise shown on the Required                                  Repair Schedule.    {01564925;2}  Schedule 2 to Multifamily Loan and  Security Agreement - Summary of Loan  Terms (Interest Rate Type - Fixed Rate) Form 6102.FR                       Page 5  Fannie Mae                               12-17                    © 2017 Fannie Mae  

 

 Initial Replacement Reserve                                  $0.00   Deposit    Maximum Inspection Fee         $500.00    Maximum Repair Disbursement                                  One (1) time per calendar month   Interval    Maximum Replacement Reserve                                  One (1) time per calendar quarter   Disbursement Interval    Minimum Repairs Disbursement                                  $5,000.00   Amount    Minimum Replacement Reserve                                  $5,000.00   Disbursement Amount    Monthly Replacement Reserve                                  $12,180.00   Deposit    Repair Threshold               $10,000.00    Repairs Escrow Account                                  $0.00   Administrative Fee    Repairs Escrow Deposit         NOT APPLICABLE    Replacement Reserve Account                                  $0.00   Administration Fee    Replacement Reserve Account                                  Annually   Interest Disbursement Frequency    Replacement Threshold          $10,000.00    (01564925;2}  Schedule 2 to Multifamily Loan and  Security Agreement - Summary of Loan  Terms (Interest Rate Type - Fixed Rate) Form 6102.FR                      Page 6  Fannie Mae                               12-17                   © 2017 Fannie Mae  

 

                                  SCHEDULE3               TO MULTIFAMILY LOAN AND SECURITY AGREEMENT                         Schedule of Interest Rate Type Provisions                                     (Fixed Rate)    1.    Defined Terms.          Capitalized terms not otherwise defined in this Schedule have the meanings given to such   terms in the Definitions Schedule to the Loan Agreement.    2.    Interest Accrual.          Except as otherwise provided in the Loan Agreement, interest shall accrue at the Interest   Rate until fully paid.    Schedule 3 to Multifamily Loan and  Security Agreement - Interest Rate Type  Provisions (Fixed Rate)              Form 6103.FR                         Page 1   Fannie Mae                              01-11                   © 2011 Fannie Mae  

 

                                 SCHEDULE4              TO MULTIFAMILY LOAN AND SECURITY AGREEMENT                             Prepayment Premium Schedule                       (Standard Yield Maintenance - Fixed Rate)   1.    Defined Terms.         All capitalized terms used but not defined in this Prepayment Premium Schedule shall  have the meanings assigned to them in the Loan Agreement.   2.    Prepayment Premium.         Any Prepayment Premium payable under Section 2.03 (Lockout/Prepayment) of the Loan  Agreement shall be computed as follows:         (a)   If the prepayment is made at any time after the Effective Date and before the  Yield Maintenance Period End Date, the Prepayment Premium shall be the greater of:               (1)   one percent (1 %) of the amount of principal being prepaid; or               (2)   the product obtained by multiplying:                     (A)   the amount of principal being prepaid,                     by                     (B)   the difference obtained by subtracting from the Fixed Rate on the              Mortgage Loan, the Yield Rate (as defined below) on the twenty-fifth (25th)              Business Day preceding (i) the Intended Prepayment Date, or (ii) the date Lender              accelerates the Mortgage Loan or otherwise accepts a prepayment pursuant to              Section 2.03( d) (Application of Collateral) of the Loan Agreement,                     by                     (C)   the present value factor calculated using the following formula:                                       1 _ (1 + ryn112                                            r                           [r  = Yield Rate                           n =   the number of months remaining between (i) either of the                                following: (x) in the case of a voluntary prepayment, the   Schedule 4 to Multifamily Loan and  Security Agreement (Prepayment Premium  Schedule - Standard Yield Maintenance - Fixed Rate)                           Form 6104.01                      Page 1  Fannie Mae                               08-13                 © 2013 Fannie Mae  

 

                              last day of the month in which the prepayment is made, or                                (y) in any other case, the date on which Lender accelerates                                the unpaid principal balance of the Mortgage Loan and                                (ii) the Yield Maintenance Period End Date.                                 For purposes of this clause (2), the "Yield Rate" means the                                yield calculated by interpolating the yields for the                                immediately shorter and longer term U.S. "Treasury                                constant maturities" (as reported in the Federal Reserve                                Statistical Release H.15 Selected Interest Rates (the "Fed                                Release") under the heading "U.S. government securities")                                closest to the remaining term of the Yield Maintenance                                Period Term, as follows (rounded to three (3) decimal                                places):                                         (a-b) x(z-y))+b                                      ( (x- y)                                 a=    the yield for the longer U.S. Treasury constant                                      maturity                                b =   the yield for the shorter U.S. Treasury constant                                      maturity                                x =   the term of the longer U.S. Treasury constant                                      maturity                                y =   the term of the shorter U.S. Treasury constant                                      maturity                                z =   "n"  (as defined m  the present value factor                                      calculation above) divided by twelve (12).                                 Notwithstanding any provision to the contrary, if "z" equals                                a  term reported under the U.S. "Treasury constant                                maturities" subheading in the Fed Release, the yield for                                such term shall be used, and interpolation shall not be                                necessary. If publication of the Fed Release is discontinued                                by the Federal Reserve Board, Lender shall determine the                                Yield Rate from another source selected by Lender. Any                                determination of the  Yield Rate by Lender will be binding                                absent manifest error.]         (b)   If the prepayment is made on or after the Yield Maintenance Period End Date but  before the last calendar day of the fourth (4th) month prior to the month in which the Maturity    Schedule 4 to Multifamily Loan and  Security Agreement (Prepayment Premium  Schedule - Standard Yield Maintenance - Fixed Rate)                           Form 6104.01                       Page 2  Fannie Mae                               08-13                 © 2013 Fannie Mae  

 

Date occurs, the Prepayment Premium shall be one percent (1 %) of the amount of principal being  prepaid.         (c)   Notwithstanding the provisions of Section 2.03 (Lockout/Prepayment) of the Loan  Agreement, no Prepayment Premium shall be payable with respect to any prepayment made on or  after the last calendar day of the fourth (4th)  month prior to the month in which the Maturity Date  occurs.    Schedule 4 to Multifamily Loan and  Security Agreement (Prepayment Premium  Schedule - Standard Yield Maintenance - Fixed Rate)                           Form 6104.01                      Page3  Fannie Mae                               08-13                 © 2013 Fannie Mae  

 

                                                                                                                 SCHEDULE 5 TO                                                                        MULTIFAMILY LOAN AND SECURITY AGREEMENT                                                                                                      Required Replacement Schedule    .ILL                                                                                                                PHYSICAL NEEDS ANALYSIS   DmSamr:                         Jefftoon at Ptri~er                          Ag,:2)                 Yr lint CO lmJ<d: 1"96                         M>as. 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Sl8.7l0    S1S.7l0   111,151  sm.ooo   Solitn~~                                )04    )00           Sll'k        !6.IO      Sl'lS.000     S16,2.<0   S16lSO    S16.ll(   SIU'!      116.250   S1U<o      S(b..DI   Sl6lSO    $16.llOI   116.llO   $16.251   SIU~     Sl'lS.000 I   lndhidual unil~ic hot watu hC'a1t1      Sil'   )60           Iii)'>       $400       Sl<M.000      Sll,IXIO   Sll.000   Sll.000   112.0011   112.000   Sll,IX!l   Sl2.IXXl  Sll.000   Sll.0001   Sll.lX!l  Sll,OOJ   Sl2.00I  Sl<M.000  I                                                                 I)<;                     so                                                          I                                        I                                    so     I                                                                                             ..    lntaion    C=i                                    Sf~     )81          19'>          S4(JO     S1SlJ8I       $16,IX!J   Sl6.tlt<  S16.0IXJ   116,00:   116,000   $16,000    S16.      Sl6.rol   116,00I    116,IXX)  Sl6.tn1   516,000  S19l.OOO    Vinvtllootin2                          ltJ,!   llJ          S6'>          SllO      181.667        S<J.l!OC   $9,800    SY.ROIi   $9,""1     S<J.81(   $9,800     S9.       $9,800    $9,800     S9.ffl,   S<J.s«    S9,l!OC $117,600    Di~hw2ffitl'                           304     161          S6'i          SlSO      141.667        S7.000     Sl.000    1),(1.ll) Sl.00:     Sl,000    Sl,00:     SJ.       S7,000    S1,000     S1.000    Sl,00:    Sl,000   $84.000                                                                                                                                                                      if, (I'   iVfflW                                  5tμ     llO          J6'>          SJlO      m.soo          S6JIK      Iii.JOO   S6,JOO    S6..'0(J   S6.100    S6JOO                S6,JOO    S6JOO      16.JOO    S6.JOO    S6.JO(   S7S.600    Rdn"ctaU>I'                            304     im            S6'i         S400      $1116.667      Sll.lO(   Sll.200   Sll.200    Sll.111!  111.lO()   S11.l00   SIi,      Sll.lO(I   111.Zll   SII.Zll   Sll,200    Sll,W    S1l4.400    Mkmwaw                                 lO      Ill           S6'i         Slll0     126.661        SS.6(•     SH,oo     SS,6()11   Sl,6IIO   Sl,HIO    Sl,60!!    S.<,6(    !S,60!1   SS,60      SS,f>Q    Sl,60!    S.l.1,0  167.lO(J    Drnr                                   lO      JR            16'!,        Sl00       17.619         S1,6!Ji   ll,IJOO   Sl,60(     Sl.60     Sl.600     Sl,l>OO   Sl.600    Sl,/JOO   $1,60      Sl.600    Sl,111     Sl,611  $19,200    Wlihin, ~bd!Jne                        504      JK           16'i         SlOO       Sl,619        Sl.6!Jil   SI.Ill!   Sl,i\lX    SI.ill~   SI.MO     Sl.i\lij   11.JIIX   Sl,6(Jll  Sl,611(    $1,i\lX   S1.61X:    Sl.61l  Sl9,l00                                                           .,_, .. _._J1r ....         1'1"1.'f''l06t0         tu..:1r,n #11Llnn              ,.    ,   o<, ... .,..,.                           ru·..  .-,,. l'l'IIUVI             .,                                                                                                    PUU:: '""                      ................ .......       ............ .......... "'"'""'-                    ........... .... ......                                                           lnflatioofl<lor   lOO'i                   100.00'J  !OJ.Im     106.Qn    109.271>  lll5l'!,   115.93'1- 119.JI'>  In.99~     12M8'i    IJ0.48'1-  134.391-  138.42'1-                                                          (nflal<d Cost                            11116,100  5109,213  sw,110    5115,9J8   1163.l&I  l14l.2U    114,1,!0II 1141,938 St5J,416   $lOl,ll87 1176,187  Sl!7,6)1   ll,7SS.731                                                           Rwmlog lnflaltd To<al                    11116,100  SllS,JU   SlJl.sSJ  W4,,19l    $617,596  $760,832   !905,481 ll,1154A211 ll,lOl,126 ll,411,913 11,588,100 IJlSS,731                                                                                                       ~ Resm<C,kul,!!oo                                                                               /\'t, Offl' loan 1enn+lt1111inlla1eJ) $244                                Ongol-, Am,aal Jlc,cms Walm!!     No                                                                                                                                   A,g.OTtrloaoltnn+l(lnflaitdl 1290                                              ~umber of uniu:    lOI      Multifamily            Loan and           Security Agreement    (Non-Recourse)                                                                                Form 6001.NR                                                                                Page 1    Schedule 5                                                                                            06-19                                                        © 2019 Fannie Mae  

 

                                         SCHEDULE 6 TO                     MULTIFAMILY LOAN AND SECURITY AGREEMENT                                       Required Repair Schedule                                                  NONE.    Multifamily Loan and Security Agreement  (Non-Recourse)                                 Form 6001.NR                                  Page 1  Schedule 6                                          06-19                         © 2019 Fannie Mae  

 

                                SCHEDULE 7 TO                MULTIFAMILY LOAN AND SECURITY AGREEMENT                   Exceptions to Representations and Warranties Schedule    1.   With respect to the representations in Section 4.0l(j) and 6.0l(a)(l), Borrower notes the  following exception:         Borrower has disclosed to Lender that certain fair housing complaint styled Harold Lemons        v. SIR Truman Farm, LLC, filed with the Missouri Commission on Huma Rights (MCHR)        and the Federal Department of Housing & Urban Development on October 29, 2015, as        Case No. H-10/15-4255. At the time of the complaint's filing, SIR Truman Farm, LLC,        an indirect subsidiary of Guarantor and Key Principal, was the owner of the senior        apartment community commonly known as Truman Farm Villas. The complaint asserts        that respondent terminated complaintant's lease on account of an alleged disability and as        a  result of  an  allegedly wrongful denial of  a  request for  reasonable        accommodation. Respondent disputes and denies those assertions and in response        submitted a position statement on November 20, 2015, from which time the matter has        remained dormant.   2.    With respect to the representation under Section 11.0l(a) of this Loan Agreement,  Borrower notes the following exception:            Ongoing general maintenance and upkeep of the Mortgaged Property and upgrades in           connection with residential unit turns performed in the ordinary course of business at           the Mortgaged Property, all such work subject to any and all requirements set forth in           this Loan Agreement and the other Loan Documents; all invoices for the same to be           paid by Borrower when due.    Multifamily Loan and Security Agreement  (Non-Recourse)                       Form 6001.NR                         Page 1  Schedule 7                              06-19                    © 2019 Fannie Mae  

 

                                                                SCHEDULE 8 TO                               MULTIFAMILY LOAN AND                                  SECURITY AGREEMENT                                                         Ownership Interests Schedule                                                     STEADFAST INCOME REIT,                         INC.                                                Refinance of Jefferson at Perimeter                                                                     Atlanta, GA                                      Steadfast Income REIT, Inc.                                        a Maryland corporation                                                                                           Steadfast Income Advisor, LLC,                                       General Partner - 99.99%                                                                                          a Delaware limned liability company                                           EIN: 27-0351641                                                                                                 Limited Partner- .01%                                                                                                  EIN: 27-0507934                                             Guarantor                                               Principal                                            Bon.rd of Oin.:CIOOi                                      Rodn.iy F. Em~. Smt B. Bark&r,                               &ad ot Manawrs                                  Don 8. Soulic, Nod Sne»._ Ella Show tJ.;ia.od                    ~F.E,-,                                                                                                   Ana.MmiP OOJPj.o                                                                                                  J. Gra,soo Sando.-.                                               .Qffi;;m                                          Rcdnoy F. Emery. CEO                                        ~                                        Ella Shaw Noyland P,.,;a,nt                              Rodney F. E"""Y. CEO                                         1<9vin Keating. T rea~r.;r                            Ella Sh... N•yland, p,.,ki°"'                                                                                            iw,,in Koa!ing. Chio! Accounting Offia;r                                        Ana Mari" 001 Rio. Secn,tar,.-                                                                                              Ana Maii9- @I Rio, 59ct0tary                                              Ownornhio                              ·°"''Mr""...hp tr\~ REIT t~ hrm!QC 10 9B% of tot.a! sha.rei                                                 i                                                      .L                                                                              .L                                                                    Steadfast Income REIT                                                                  Operating Partnership, L.P.                                                                 a Delaware limited partnership                                                                        Sole Member                                                                       EIN: 27-0508033                                                                          Prin;,ipal                                                                             l                                                                                                                .. ------------- -------------- ...                                                                                                                    Steadfast lnco me Advisor, UC •                                                                 SIR Jefferson, LLC                             .'  a DelaNare limite d liability company                                                                                                                          EIN:27-0507934                                                            a Delaware limited  liability company            -+:        Non-Mem berManager                                                                       EIN: 27-0508033                          '            Prin cipal                                                                          Borrower                              ,'__________   ,_ __ .,    Multifamily       Loan     and    Security     Agreement  (Non-Recourse)                                                             Form 6001.NR                                                             Page 1  Schedule 8                                                                        06-19                                           © 2019 Fannie Mae  

 

                                               Steadfi!S! REIT                                                !nvesimffi!S. UC                                                    ~·                           Stn~pitl!l                       ~Gitoop,U.C                       ~·~·                                                Steadfast Income                                                  REIT, Inc.                                                  ~L-RE!T                                               Ollo<~f'llltrle,$!;ip,t?                                              (Rl.lif P/~& kdoote                                                 ~Assets}                                 [Remainder of Page Intentionally BlankJ      Multifamily Loan and  Security Agreement  (Non-Recourse)                                 Form 6001.NR                                  Page 2  Schedule 8                                         06-19                          © 2019 Fannie Maea102securityinstrument

                                                                          EXHIBIT 10.2   After recording return to:  Cassin & Cassin LLP  711 Third Avenue, 20th Floor  New York, New York 10017  Attn: Recording Department                                                                   County: DeKalb                        MULTIFAMILY DEED TO SECURE DEBT,                       ASSIGNMENT OF LEASES AND RENTS,                  SECURITY AGREEMENT AND FIXTURE FILING                                     (GEORGIA)   Jefferson at Perimeter Apartments  4867 Ashford Dunwoody Road  Atlanta, Georgia 30338     Fannie Mae Multifamily Security Instrument Form 6025.GA   Georgia                                     01-16               © 2016 Fannie Mae  

 

                   MULTIFAMILY DEED TO SECURE DEBT,                      ASSIGNMENT OF LEASES AND RENTS,                  SECURITY AGREEMENT AND FIXTURE FILING         This MULTIFAMILY DEED TO SECURE DEBT, 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  September 20, 2019, is executed by SIR JEFFERSON, LLC, a limited liability company  organized and existing under the laws of Delaware, as grantor ("Borrower"), to and for the benefit  of JONES LANG LASALLE MULTIFAMILY, LLC, a        limited liability company organized  and existing under the laws of Delaware, as grantee ("Lender").         Borrower, in consideration of (i) the loan in the original principal amount of SEVENTY­ THREE    MILLION    EIGHT   HUNDRED     THOUSAND      AND   N0/100  DOLLARS  ($73,800,000.00) (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  maturing on October 1, 2029 (as amended, restated, replaced, supplemented, or otherwise  modified from time to time, the "Note"), (ii) 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 (iii) the security title created and transferred to Lender by this  Security Instrument, 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), and other good and valuable consideration, the receipt and sufficiency of which are  hereby acknowledged, irrevocably and unconditionally grants, warrants, conveys, bargains, sells,  and assigns to and for the benefit of Lender, with power of sale and right of entry and possession,  the Mortgaged Property (as defined in this Security Instrument), including the real property located  in DeKalb County, State of Georgia, and described in Exhibit A attached to this Security  Instrument and incorporated herein 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 grant, warrant, convey, bargain, sell, and assign  the Mortgaged Property, and that the Mortgaged Property is not encumbered 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.   Fannie Mae Multifamily Security Instrument Form 6025.GA                   Page 1  Georgia                                     01-16                © 2016 Fannie Mae  

 

      Borrower and (by its acceptance hereof) Lender 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 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   Fannie Mae Multifamily Security Instrument Form 6025.GA                   Page2  Georgia                                     01-16                © 2016 Fannie Mae  

 

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, biogs, 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.   "Land" means the real property described in Exhibit A.   Fannie Mae Multifamily Security Instrument Form 6025.GA                   Page3  Georgia                                     01-16                © 2016 Fannie Mae  

 

"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;         (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;   Fannie Mae Multifamily Security Instrument Form 6025.GA                   Page4  Georgia                                     01-16                © 2016 Fannie Mae  

 

      (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;         (i)   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);         (1)   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.   "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,   Fannie Mae Multifamily Security Instrument Form 6025.GA                   Pages  Georgia                                     01-16                © 2016 Fannie Mae  

 

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.   "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   Fannie Mae Multifamily Security Instrument Form 6025.GA                   Page6  Georgia                                     01-16                © 2016 Fannie Mae  

 

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: (I) 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 I 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; (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; 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  by this Security Instrument. Nevertheless, Borrower shall execute, acknowledge, deliver and  record or file, as appropriate, all and every such further deeds oftrust,  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   Fannie Mae Multifamily Security Instrument Form 6025.GA                   Page7  Georgia                                     01-16                © 2016 Fannie Mae  

 

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 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   Fannie Mae Multifamily Security Instrument Form 6025.GA                   Page8  Georgia                                     01-16                © 2016 Fannie Mae  

 

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, 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:    Fannie Mae Multifamily Security Instrument Form 6025.GA                   Page9  Georgia                                     01 -16               © 2016 Fannie Mae  

 

            (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.   4.    Protection of Lender's Security.         If Borrower fails to perform any of its obligations under this Security Instrument or any  other Loan Document, or any action or proceeding is commenced that purports to affect the  Mortgaged Property, Lender's security, rights or interests under this Security Instrument or any  Loan Document (including eminent domain, insolvency, code enforcement, civil or criminal  forfeiture, enforcement of Environmental Laws, fraudulent conveyance or reorganizations or  proceedings involving a debtor or decedent), Lender may, at its option, make such appearances,  disburse or pay such sums and take such actions, whether before or after an Event of Default or  whether directly or to any receiver for the Mortgaged Property, as Lender reasonably deems  necessary to perform such obligations of Borrower and to protect the Mortgaged Property or  Lender's security, rights or interests in the Mortgaged Property or the Mortgage Loan, including:    Fannie Mae Multifamily Security Instrument Form 6025.GA                  Page 10  Georgia                                     01-16                © 2016 Fannie Mae  

 

       (a)    paying fees and out-of-pocket expenses of attorneys, accountants, inspectors and  consultants;          (b)   entering upon the Mortgaged Property to make repairs or secure the Mortgaged  Property;          (c)   obtaining (or  force-placing) the insurance required by the Loan Documents; and          ( d)  paying any amounts required under any of the Loan Documents that Borrower has  failed to pay.   Any amounts so disbursed or paid by Lender shall be added to, and become 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. The provisions of this Section 4 shall not be deemed  to obligate or require Lender to incur any expense or take any action.   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 suit  or suits at law or in equity or any other appropriate proceeding or remedy (1) to enforce payment  of the Mortgage Loan; (2) to foreclose this Security Instrument judicially or non-judicially by the  power of sale granted herein; (3) to enforce or exercise any right under any Loan Document; and  (4) to pursue any one (l)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)   Borrower acknowledges that the power of sale granted in this Security Instrument  may be exercised or directed by Lender without prior judicial hearing and hereby appoints Lender  as Borrower's agent and attorney-in-fact to exercise such power of sale in the name and on behalf  of Borrower. In the event Lender invokes the power of sale:                (1)    Borrower hereby authorizes and empowers Lender to take possession of the         Mortgaged Property, or any part thereof, and hereby grants to Lender a power of sale and         authorizes and empowers Lender to sell ( or, in the case of the default of any purchaser, to         resell) the Mortgaged Property or any part thereof, in compliance with applicable law,         including compliance with any and all notice and timing requirements for such sale;    Fannie Mae Multifamily Security Instrument    Form 6025.GA                       Page 11  Georgia                                          01-16                  © 2016 Fannie Mae  

 

            (2)   Lender may sell and dispose of the Mortgaged Property at public auction,        at the usual place for conducting sales at the courthouse in the county where all or any part        of the Mortgaged Property is located, to the highest bidder for cash, first advertising the        time, terms and place of such sale by publishing a notice of sale once a week for four (4)        consecutive weeks (without regard to the actual number of days) in a newspaper in which        serves as the official publication of legal notices and advertisements in such county, all        other notice being waived by Borrower; and Lender may thereupon execute and deliver to        the purchaser a sufficient instrument of conveyance of the Mortgaged Property, which may        contain recitals as to the happening of the Event of Default upon which the execution of        the power of sale granted by this Section 5 depends. The recitals in the instrument of        conveyance shall be presumptive evidence that Lender duly complied with all preliminary        acts prerequisite to the sale and instrument of conveyance. Borrower constitutes and        appoints Lender as Borrower's agent and attorney-in-fact to make such recitals, sale and        conveyance;               (3)   the power and agency granted in this Section 5 are coupled with an interest,        are irrevocable by death or otherwise, and are in addition to the remedies for collection of        the Indebtedness as provided by law. Borrower ratifies all of Lender's acts, as such        attorney-in-fact, and Borrower agrees that such recitals shall be binding and conclusive        upon Borrower and that the conveyance to be made by Lender (and in the event of a deed        in lieu of foreclosure, then as to such conveyance) shall be effectual to bar all right, title        and interest, equity of redemption, including all statutory redemption, homestead, dower,        curtsey, and all other exemptions of Borrower, or its successors in interest, in and to the        Mortgaged Property; and               (4)   the Mortgaged Property may be sold in one (1) parcel and as an entirety, or        in such parcels, manner or order as Lender, in its discretion, may elect, and one (1) or more        exercises of the powers granted in this Section 5 shall not extinguish or exhaust the power        unless the entire Mortgaged Property is sold or the Indebtedness is paid in full, and Lender        shall collect the proceeds of such sale, applying such proceeds as provided in this Section 5.        In the event of a deficiency, Borrower shall immediately on demand from Lender pay such        deficiency to Lender, subject to the provisions of the Note limiting Borrower's personal        liability for payment of the Indebtedness. Borrower waives all rights, claims, and defenses        with respect to Lender's ability to obtain a deficiency judgment. Borrower acknowledges        that Lender may bid for and purchase the Mortgaged Property at any foreclosure sale and        shall be entitled to apply all or any part of the Indebtedness as a credit to the purchase price.         (c)   If the Mortgaged Property is sold pursuant to this Section 5, Borrower, or any  person holding possession of the Mortgaged Property through Borrower, shall surrender  possession of the Mortgaged Property to the purchaser at such sale on demand. If possession is  not surrendered on demand, Borrower or such person shall be a tenant holding over and may be  dispossessed in accordance with Georgia law.   Fannie Mae Multifamily Security Instrument Form 6025.GA                  Page 12  Georgia                                     01-16                © 2016 Fannie Mae  

 

      ( d)  Borrower covenants and agrees that Lender shall apply the proceeds of any sale in  the following order:               (1)   to all reasonable costs and expenses of the sale, including reasonable        attorneys' fees and costs associated with title evidence and the reasonable cost of such        other professionals who provided services in connection with the sale or establishing a        deficiency, if any;               (2)   to the Indebtedness in such order as Lender, in Lender' s discretion, directs;        and               (3)   the excess, if any, to the person or persons legally entitled to the excess.         ( e)  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 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.         (f)   Any action taken by Lender pursuant to the provisions of this Section 5 shall  comply with the laws of the Property Jurisdiction. 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   Fannie Mae Multifamily Security Instrument Form 6025.GA                  Page 13  Georgia                                     01-16                © 2016 Fannie Mae  

 

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  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)   Subject, in any event, to Section 1 l(c) hereof, 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 applicable law;               (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    Fannie Mae Multifamily Security Instrument Form 6025.GA                  Page 14  Georgia                                     01-16                © 2016 Fannie Mae  

 

      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 to foreclose 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 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.   Fannie Mae Multifamily Security Instrument Form 6025.GA                  Page 15  Georgia                                     01-16                © 2016 Fannie Mae  

 

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 and Reconveyance.         Upon payment in full of the Indebtedness, Lender shall cause the release of this Security  Instrument and the reconveyance of the Mortgaged Property to Borrower, and Borrower shall pay  Lender's costs incurred in connection with such release and reconveyance.   11.   Georgia State Specific Provisions.         (a)   To the fullest extent permitted by law, Borrower agrees that Borrower will not at  any time insist upon, plead, claim or take the benefit or advantage of any present or future law  providing for any appraisement, valuation, stay, extension or redemption, homestead, moratorium,  reinstatement, marshaling or forbearance, and Borrower, for Borrower, Borrower' s heirs, devisees,  representatives, successors and assigns, and for any and all persons ever claiming any interest in  the Mortgaged Property, to the fullest extent permitted by law, waives and releases all rights of  redemption, valuation, appraisement, stay of execution, reinstatement (including all rights under  O.C.G.A. Section 44-14-85), notice of intention to mature or declare due the whole of the  Indebtedness, and all rights to a marshaling of assets of Borrower, including the Mortgaged  Property.         (b)   This Security Instrument secures future advances.         (c)   This conveyance is intended to and shall constitute and be construed as (I) a deed  passing fee title to the Mortgaged Property to Lender, and is made under those provisions of the  existing laws of the State of Georgia (O.C.G.A. Section 44-14-60 et seq.) relating to conveyances  and deeds to secure debt (a/k/a "security deed"), and not a mortgage, and is given to secure the  payment and performance of the Indebtedness, and (2) a security agreement pursuant to the  provisions of the Uniform Commercial Code of Georgia, Title 11 of the Official Code of Georgia.  Moreover, use of the terms "Mortgaged Property" or "Mortgage Loan," whether in this Security  Instrument or in any other Loan Document, shall not be construed to mean that this Security  Instrument is a mortgage.         (d)   Lender's acceptance, if any, of an assumption of the obligations of this Security  Instrument and the Note, and the release of Borrower pursuant to the Loan Agreement, shall not  constitute a novation and shall not affect the priority of the lien created by this Security Instrument.    Fannie Mae Multifamily Security Instrument Form 6025.GA                  Page 16  Georgia                                     01-16                © 2016 Fannie Mae  

 

      (e)   The interest of Lender under this Security Instrument and the liability and  obligation of Borrower for the Indebtedness arise from a "commercial transaction" within the  meaning of O.C.G.A. Section 44-14-260(1). Accordingly, pursuant to O.C.G.A. Section 44-14- 263, Borrower waives any and all rights which Borrower may have to notice (other than as may  be expressly provided for herein) prior to seizure by Lender of any interest in personal property of  Borrower which constitutes part of the Mortgaged Property, whether such seizure is by writ of  possession or otherwise.         (f)   In all events where Borrower may be obligated to pay all reasonable costs, expenses  and attorneys' fees incurred by Lender in connection with the Loan Documents, "reasonable  attorneys' fees" or words of similar import shall in all events mean reasonable attorneys' fees,  actually incurred, without the application of the statutory presumption established by the 0.C.G.A.  Section 13-1-11.         (g)   Pursuant to O.C.G.A. Section 44-14-80, the parties to this Security Instrument  intend to establish and do hereby establish a perpetual or indefinite security interest in the  Mortgaged Property.         (h)   Wherever the word "lien" is used with respect to the encumbrance effected by this  Security Instrument, such as in the phrase "the lien of this Security Instrument," or words of similar  import, such word shall mean and be a reference to the "lien and security title" of this Security  Instrument.   12.   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.   13.   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   Fannie Mae Multifamily Security Instrument Form 6025.GA                  Page 17  Georgia                                     01-16                © 2016 Fannie Mae  

 

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.               (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.    Fannie Mae Multifamily Security Instrument Form 6025.GA                  Page 18  Georgia                                     01-16                © 2016 Fannie Mae  

 

            (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.   14.   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.   15.   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  SEPARA  TEL  Y GIVEN BY EACH OF BORROWER AND LENDER, KNOWINGLY AND  VOLUNTARILY WITH THE BENEFIT OF COMPETENT LEGAL COUNSEL.         ATTACHED    EXHIBITS.    The  following Exhibits are attached to thi s Security  Instrument and incorporated fu lly herein by reference:               IXI         Exhibit A         Description of the Land (required)              1_1         Exhibit B         Modifications to Security Instrument                        [Remainder of Page Intentionally Blank]    Fannie Mae Multifamily Security Instrument Form 6025.GA                  Page 19  Georgia                                     01 -16               © 201 6 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:    Signed, sealed and delivered   In the presence of:           SIR JEFFERSON, LLC,    ~~c,u~                       a Delaware limited liability company   Unofficial Witness            By:   STEADFAST INCOME ADVISOR, LLC,                                        a Delaware limited liability company,                                        Its Manager     ~                                        By: ~,                         (SEAL)      Commission Expires:   My                                  Nam~Kting    Oct 4. , 2022                                       Title: Chief Accounting Officer    Fannie Mae Multifamily Security Instrument Form 6025.GA               Page S-1  Georgia                                    01-16              © 2016 Fannie Mae  

 

    CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT                     CIVIL CODE§ 1189                         CERTIFICATE OF ACKNOWLEDGMENT     A Notary Public or other officer completing this certificate verifies only the identity of the    individual who signed the document to which this certificate is attached, and not the    truthfulness, accuracy, or validity ofthat  document.    STATE OF   CALIFORNIA     )                             ): ss.   COUNTY OF     ORANGE      )    On September 12, 2019   before me,  Laurie Sanders                   , Notary Public,   personally appeared Kevin J. Keating                    , who proved to me on the basis   of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within   instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized   capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity   upon behalf of which the person(s) acted, executed the instrument.    I certify under PENALTY  OF  PERJURY   under the laws of the State of California that the   foregoing paragraph is true and correct.    WITNESS my hand and official seal.  ~~   Print Name:  Laurie Sanders    My commission expires:          October 4, 2022     Fannie Mae Multifamily Security Instrument  Form 6025.GA                      Page S-2   Georgia                                        01-16                  © 2016 Fannie Mac  

 

                                 The name, chief executive office and organizational                                   identification number of Borrower (as  Debtor under any                                   applicable Uniform Commercial Code) are:                                    Debtor Name/Record Owner:                                    SIR JEFFERSON, LLC, a Delaware limited liability                                   company                                    Debtor Chief Executive Office Address:                                    18100 Von Karman Ave, Suite 500                                   Irvine CA 92612                                   Attn: Kevin J. Keating                                       Ana Marie del Rio                                    Debtor Organizational ID Number: =6=88=6::....:7....::.9....:..7___ _                                     The name and chief executive office of Lender (as                                   Secured Party) are:                                    Secured Party Name:                                   JONES LANG LASALLE MULTIFAMILY, LLC, a                                   Delaware limited liability company                                    Secured Party Chief Executive Office Address:                                    2177 Youngman A venue                                   St. Paul, Minnesota 55116    Fannie Mae Multifamily Security Instrument Form 6025.GA                 Page S-3  Georgia                                     01-16                © 2016 Fannie Mae  

 

                                                EXHIBIT A                                       DESCRIPTION OF THE LAND    ALL THAT TRACT OR PARCEL OF LAND LYING        IN AND BEING A PART   OF LAND LOT   363 OF THE  18TH DISTRICT,  DEKALB COUNTY, GEORGIA AND       BEING  MORE PARTICULARLY DESCRIBED AS        FOLLOWS:   BEGINNING AT THE INTERSECTION OF THE NORTHERLY RIGHT-OF-WAY OF VALLEY VIEW                ROAD (60  FOOT  RIGHT-OF-WAY) AND THE     EASTERLY RIGHT-OF-WAY OF      ASHFORD-DUNWOODY ROAD (RIGHT-OF-WAY  VARIES) PROCEED NORTHERLY ALONG SAID ASHFORD-DUNWOODY ROAD RIGHT-OF-WAY 124.94                    FEET TO A  POINT ANO   THE TRUE POINT OF BEGINNING.   THENCE    PROCEED   ALONG   SAID  RIGHT-OF-WAY NORTH      01 DEGREE   38 MINUTES   09 SECONDS    WEST  616.66  FEET  TO  A POINT;  THENCE PROCEED     ALONG   A CURVE   TO  THE  RIGHT  NORTH   41 DEGREES   35 MINUTES   01  SECOND    EAST  WITH   AN  ARC  LENGTH   OF  96.59 FEET  ANO   A RADIUS   OF  59 FEET  TO  A  POINT; THENCE  PROCEED    NORTH   84  DEGREES   48  MINUTES   12 SECONDS   EAST  A  DISTANCE   OF  309.31 FEET  TO  A POINT;  THENCE PROCEED ALONG        A CURVE TO THE LEFT    NORTH 44   DEGREES 58   MINUTES 59   SECONDS EAST WITH  AN  ARC  LENGTH   OF  485.88 FEET AND  A  RADIUS  OF 360.30 FEET  TO  A POINT; THENCE    PROCEED   NORTH   05  DEGREES    44  MINUTES   20 SECONDS    EAST  A  DISTANCE   OF  353.16 FEET  TO  A  POINT; THENCE    PROCEED  ALONG   A CURVE   TO  THE RIGHT  NORTH   38 DEGREES    12 MINUTES  51 SECONDS    EAST WITH   AN ARC  LENGTH  OF  328.64 FEET   ANO  A RADIUS   OF  287.70 FEET  TO  A POINT;  THENCE   PROCEED    NORTH   70  DEGREES   19  MINUTES   47  SECONDS    EAST  233.32 FEET  TO  A POINT; THENCE    PROCEED    ALONG   A CURVE   TO  THE  LEFT  NORTH 68 DEGREES      52 MINUTES 34  SECONDS    EAST  WITH AN  ARC  LENGTH   OF 72.96 FEET ANO  A RADIUS OF  356.71 FEET TO   A POINT; THENCE   LEAVING   SAID RIGHT-OF-WAY    PROCEED SOUTH     23 DEGREES 47    MINUTES  37  SECONDS    EAST  A DISTANCE    OF  75.25 FEET  TO A  POINT;  THENCE   PROCEED    SOUTH   63 DEGREES    40  MINUTES   14 SECONDS WEST 246.87      FEET TO  A POINT; THENCE   PROCEED    SOUTH   02 DEGREES 02    MINUTES  36  SECONDS    EAST   369.16 FEET  TO  A  POINT;  THENCE    PROCEED    SOUTH   47  DEGREES    51 MINUTES   55  SECONDS    EAST  465.94 FEET  TO A POINT; THENCE    PROCEED   NORTH   89 DEGREES    11 MINUTES 41   SECONDS  WEST   250.00 FEET   TO A  POINT; THENCE    PROCEED   SOUTH   06  DEGREES   08  MINUTES   50 SECONDS    WEST  261 .70 FEET TO  A  POINT; THENCE    PROCEED   NORTH   87  DEGREES   43  MINUTES   14 SECONDS    WEST   100.00  FEET  TO  A POINT; THENCE    PROCEED   SOUTH   27 DEGREES    07 MINUTES  21 SECONDS    EAST 93.58  FEET  TO A  POINT:  THENCE   PROCEED    SOUTH   51  DEGREES   40  MINUTES   51 SECONDS    WEST   91.67 FEET  TO  A POINT;  THENCE    PROCEED    SOUTH   24 DEGREES   02  MINUTES   19 SECONDS   EAST   28.50 FEET  TO A  POINT; THENCE  PROCEED    SOUTH   11 DEGREES   34 MINUTES   21 SECONDS   WEST   142.13 FEET TO A POINT; THENCE     PROCEED  SOUTH   23 DEGREES    19 MINUTES   16 SECONDS   WEST   57.64 FEET TO  A POINT; THENCE    PROCEED    SOUTH  87  DEGREES 55    MINUTES 58  SECONDS    EAST 47.00 FEET TO  A POINT;  THENCE PROCEED SOUTH       03 DEGREES   51  MINUTES   24 SECONDS    EAST 253.68  FEET  TO  A POINT  ALONG   THE  NORTHERN    BOUNDARY     OF THE  VALLEY  VIEW   SUBDIVISION   AS  MORE   PARTICULARLY     DESCRIBED   IN  PLAT  BOOK   23, PAGE   9, DEKALB   COUNTY,  GEORGIA    RECORDS;    THENCE    PROCEED    ALONG   SAID  BOUNDARY     NORTH   89  DEGREES    14 MINUTES   06  SECONDS WEST 300.84      FEET TO A POINT;  THENCE   PROCEED SOUTH 89      DEGREES   18 MINUTES 03   SECONDS  WEST   129.97 FEET   TO A  POINT; THENCE    PROCEED   SOUTH   89  DEGREES   21  MINUTES   21 SECONDS    WEST  260.08  FEET  TO A  POINT; THENCE    PROCEED   SOUTH   89  DEGREES   17  MINUTES   46 SECONDS    WEST   130.05  FEET  TO  A POINT; THENCE    PROCEED   NORTH   89 DEGREES    56 MINUTES  55 SECONDS    WEST A   DISTANCE   OF   145.07 FEET TO A  POINT  ON SAID  RIGHT-OF-WAY OF    ASHFORD-DUNWOODY        ROAD AND   THE  TRUE  POINT  OF  BEGINNING;   CONTAINING    24 .74 ACRES  AS  MORE   PARTICULARLY    DESCRIBED    ON  THAT  CERTAIN   PLAT  OF  SURVEY   FOR  NORTHWESTERN       MUTUAL   LIFE INSURANCE   COMPANY,    MAGNOLIA COMMONS JOINT VENTURE  AND   CHICAGO    TITLE  INSURANCE    COMPANY,     PREPARED    BY  BLUE   RIDGE   ENGINEERING,    INC., DATED  SEPTEMBER     17, 1994, LAST REVISED  MARCH    21 , 1995, BEARING THE  SEAL  AND  CERTIFICATION   OF  H. TATE  JONES, GEORGIA PROFESSIONAL LAND        SURVEYOR NO. 2339.    Fannie Mae Multifamily Security Instrument                 Form 6025.GA                                Page A-1  Georgia                                                        01-16                         © 2016 Fannie Mae

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