Document:

exv10w47wm

Exhibit 10.47.M

EXECUTION COPY

 

PLEDGE AGREEMENT

from

MUNIMAE TEI HOLDINGS, LLC

as Pledgor

to

MERRILL
LYNCH CAPITAL SERVICES, INC.

and

MERRILL
LYNCH, PIERCE, FENNER & SMITH INCORPORATED

Dated March 6, 2008

 

 

 

	 	 	 	 	 
	Section 1.  Grant of Security
	 	 	2	 
	 
	 	 	 	 
	Section 2.  Security for Obligations
	 	 	2	 
	 
	 	 	 	 
	Section 3.  Pledgor Remains Liable
	 	 	2	 
	 
	 	 	 	 
	Section 4.  Delivery and Control of Security Collateral
	 	 	3	 
	 
	 	 	 	 
	Section 5.  Representations and Warranties
	 	 	3	 
	 
	 	 	 	 
	Section 6.  Further Assurances
	 	 	5	 
	 
	 	 	 	 
	Section 7.  Post-Closing Changes
	 	 	5	 
	 
	 	 	 	 
	Section 8.  Voting Rights; Dividends; Etc.
	 	 	6	 
	 
	 	 	 	 
	Section 9.  Transfers and Other Liens; Additional Shares
	 	 	7	 
	 
	 	 	 	 
	Section 10.  The Pledgee Appointed Attorney-in-Fact
	 	 	7	 
	 
	 	 	 	 
	Section 11.  The Pledgee May Perform
	 	 	8	 
	 
	 	 	 	 
	Section 12.  The Pledgee Duties
	 	 	8	 
	 
	 	 	 	 
	Section 13.  Remedies
	 	 	9	 
	 
	 	 	 	 
	Section 14.  Indemnity and Expenses
	 	 	10	 
	 
	 	 	 	 
	Section 15.  Amendments; Waivers, Etc.
	 	 	11	 
	 
	 	 	 	 
	Section 16.  Notices, Etc.
	 	 	11	 
	 
	 	 	 	 
	Section 17.  Continuing Security Interest; Assignments
	 	 	11	 
	 
	 	 	 	 
	Section 18.  Release; Termination
	 	 	12	 
	 
	 	 	 	 
	Section 19.  Execution in Counterparts
	 	 	12	 
	 
	 	 	 	 
	Section 20.  Governing Law
	 	 	13	 
	 
	 	 	 	 
	SCHEDULES I    LOCATION, CHIEF EXECUTIVE OFFICE, TYPE OF ORGANIZATION, JURISDICTION OF
ORGANIZATION AND ORGANIZATIONAL IDENTIFICATION NUMBER
	 	 
	 
	 	 	 	 
	SCHEDULE II    PLEDGED EQUITY
	 	 	 	 
	 
	 	 	 	 
	SCHEDULE III   CHANGES IN NAME, LOCATION, ETC.
	 	 	 	 

 

 

PLEDGE AGREEMENT

     THIS PLEDGE AGREEMENT dated March 6, 2008 is made by MUNIMAE TEI HOLDINGS, LLC, a Maryland
limited liability company (the “Pledgor”), to and for the benefit of MERRILL LYNCH CAPITAL
SERVICES, INC. (“MLCS”) and MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (“MLPFS” and
together with MLCS, the “Pledgee”).

PRELIMINARY STATEMENTS.

     A. The Pledgee, the Pledgor, Municipal Mortgage & Equity, LLC and U.S. Bank Trust National
Association entered into that certain Fourth Amended and Restated Pledge and Security Agreement
dated July 11, 2005 (as amended, restated and/or supplemented from time to time, the “2005
Pledge Agreement”);

     B. The Pledgor is entering into this Agreement in order to grant to the Pledgee a security
interest in the Collateral (as hereinafter defined) as security for the Obligations (as defined
under the 2005 Pledge Agreement).

     C. The Pledgor is also entering into other related pledge agreements (the “Related Pledge
Agreements”) in order to grant to MLCS a security interest in the Collateral (as defined
thereunder) as security for its obligations under the following related agreements, together with
all related schedules, annexes and confirmation letters thereto, and other agreements, as
applicable: (i) that certain ISDA Master Agreement, dated as of April 28, 1997, by and between
MLCS and Municipal Mortgage & Equity, LLC, (ii) that certain ISDA Master Agreement, dated as of
December 5, 2003, by and between MLCS and MuniMae TEI Holdings, LLC, (iii) that certain ISDA Master
Agreement, dated as of June 14, 2004, by and between MLCS and MMA Financial Holdings, Inc., and
(iv) that certain ISDA Master Agreement dated as of February 1, 2007, by and between the Pledgee
and MMA Realty Capital, LLC (as amended, restated and/or supplemented from time to time, the
“Related Swap Agreements”).

     D. The Pledgor is the owner of the shares of stock or other equity interests (the “Initial
Pledged Equity”) set forth opposite the Pledgor’s name on and as otherwise described in Schedule II
hereto and issued by the issuer named therein.

     E. Terms defined in the 2005 Pledge Agreement and not otherwise defined in this Agreement are
used in this Agreement as defined in the 2005 Pledge Agreement. Further, unless otherwise defined
in this Agreement or in the 2005 Pledge Agreement, terms defined in Article 8 or 9 of the UCC (as
defined below) are used in this Agreement as such terms are defined in such Article 8 or 9. “UCC”
means the Uniform Commercial Code as in effect, from time to time, in the State of New York;
provided that, if perfection or the effect of perfection or nonperfection or the priority of any
security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as in effect
from time to time in such other jurisdiction for purposes of the provisions hereof relating to such
perfection, effect of perfection or nonperfection or priority.

 

 

     NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is hereby
acknowledged, the Pledgor hereby agrees with the Pledgee as follows:

     Section 1. Grant of Security. The Pledgor hereby grants to the Pledgee a security interest in
the Pledgor’s right, title and interest in and to the following, in each case, as to each type of
property described below, whether now owned or hereafter acquired by the Pledgor, wherever located,
and whether now or hereafter existing or arising (collectively, the “Collateral”):

     (a) the following (the “Security Collateral”):

     (i) the Initial Pledged Equity and the certificates, if any, representing the
Initial Pledged Equity, and all dividends, distributions, return of capital, cash,
instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the Initial Pledged
Equity and all subscription warrants, rights or options issued thereon or with
respect thereto;

     (ii) all additional shares of stock and other equity interests of or in any
issuer of the Initial Pledged Equity or any successor entity from time to time
acquired by the Pledgor in any manner in connection with the Initial Pledged Equity
(such shares and other equity interests, together with the Initial Pledged Equity,
being the “Pledged Equity”), and the certificates, if any, representing such
additional shares or other equity interests, and all dividends, distributions,
return of capital, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of
such shares or other equity interests and all subscription warrants, rights or
options issued thereon or with respect thereto;

     (b) all proceeds of, collateral for and supporting obligations relating to, any and all
of the Collateral (including, without limitation, proceeds, collateral and supporting
obligations that constitute property of the types described in clause (a) of this Section 1
and this clause (b)) and, to the extent not otherwise included, all (A) payments under
insurance, or any indemnity, warranty or guaranty, payable by reason of loss or damage to or
otherwise with respect to any of the foregoing Collateral and (B) cash proceeds.

     Section 2. Security for Obligations. This Agreement secures the payment of all obligations of
the Pledgor now or hereafter existing under the 2005 Pledge Agreement Documents (as defined in
Section 3 hereof), whether direct or indirect, absolute or contingent, and whether for principal,
reimbursement obligations, interest, fees, premiums, penalties, indemnifications, contract causes
of action, costs, expenses or otherwise (all such obligations being the “Secured Obligations”).

     Section 3. Pledgor Remains Liable. Anything herein to the contrary notwithstanding, (a) the
Pledgor shall remain liable under any contracts and agreements included in the Collateral to the
extent set forth therein and to perform all of its duties and obligations thereunder to the same
extent as if this Agreement had not been executed, (b) the exercise by the Pledgee of any of

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the rights hereunder shall not release the Pledgor from any of its duties or obligations under
any contracts and agreements included in the Collateral and (c) the Pledgee shall not have any
obligation or liability under any contracts and agreements included in the Collateral by reason of
this Agreement or any other documents evidencing or securing the 2005 Pledge Agreement or the
documents secured thereby (the “2005 Pledge Agreement Documents”), nor shall the Pledgee be
obligated to perform any of the obligations or duties of the Pledgor thereunder or to take any
action to collect or enforce any claim for payment assigned hereunder.

     Section 4. Delivery and Control of Security Collateral.

     (a) All certificates or instruments representing or evidencing Security Collateral
shall be delivered to and held by or on behalf of the Pledgee pursuant hereto and shall be
in suitable form for transfer by delivery, or shall be accompanied by duly executed
instruments of transfer or assignment in blank, all in form and substance satisfactory to
the Pledgee. The Pledgee, or its agent, shall have the right, at any time in its discretion
and without notice to the Pledgor, to transfer to or to register in the name of the Pledgee,
its agent, or any of its nominees any or all of the Collateral, subject only to the
revocable rights of the Pledgor specified in Section 8(a). In addition, upon the occurrence
and during the continuance of an Event of Default under the 2005 Pledge Agreement (in each
case, a “Specified Event of Default”), the Pledgee shall have the right at any time to
exchange certificates or instruments representing or evidencing Security Collateral for
certificates or instruments of smaller or larger denominations.

     (b) With respect to any Security Collateral in which the Pledgor has any right, title
or interest and that constitutes an uncertificated security, the Pledgor will cause the
issuer thereof either (i) to register the Pledgee, or its nominee or agent, as the
registered owner of such security subject, however, to this Agreement, or (ii) to agree in
an authenticated record with the Pledgor and the Pledgee that such issuer will comply with
instructions with respect to such security originated by the Pledgee without further consent
of the Pledgor, such authenticated record to be in form and substance satisfactory to the
Pledgee. With respect to any Pledged Equity in which the Pledgor has any right, title or
interest and that is not an uncertificated security, the Pledgor will notify each such
issuer of Pledged Equity that such Pledged Equity is subject to the security interest
granted hereunder.

     Section 5. Representations and Warranties. The Pledgor represents and warrants as follows:

     (a) The Pledgor’s exact legal name, as defined in Section 9-503(a) of the UCC, is
correctly set forth in Schedule I hereto. The Pledgor has no other trade names. The
Pledgor is located (within the meaning of Section 9-307 of the UCC) and has its chief
executive office in the state or jurisdiction set forth in Schedule I hereto. The
information set forth in Schedule I hereto with respect to the Pledgor is true and accurate
in all respects. The Pledgor has not, in the past five years, changed its name, location,
chief executive office, type of organization, jurisdiction of organization or organizational
identification number from those set forth in Schedule I hereto except as disclosed in
Schedule III hereto.

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     (b) All Security Collateral consisting of certificated securities has been delivered to
the Pledgee or its agent.

     (c) The Pledgor is the legal and beneficial owner of the Collateral of the Pledgor free
and clear of any lien, claim, option or right of others, except for the security interest
created under this Agreement. No effective financing statement or other instrument similar
in effect covering all or any part of such Collateral or listing the Pledgor or any trade
name of the Pledgor as debtor is on file in any recording office, except such as may have
been filed in favor of the Pledgee relating to the 2005 Pledge Agreement Documents.

     (d) The Pledged Equity pledged by the Pledgor hereunder has been duly authorized and
validly issued and is fully paid and nonassessable. With respect to any Pledged Equity that
is an uncertificated security, the Pledgor has caused the issuer thereof either (i) to
register the Pledgee, or its agent, as the registered owner of such security subject,
however, to this Agreement, or (ii) to agree in an authenticated record with the Pledgor and
the Pledgee that such issuer will comply with instructions with respect to such security
originated by the Pledgee, or its agent, without further consent of the Pledgor.

     (e) The Initial Pledged Equity pledged by the Pledgor constitutes the percentage of the
issued and outstanding equity interests of the issuers thereof indicated on Schedule II
hereto.

     (f) All filings and other actions (including, without limitation, actions necessary to
obtain control of the Collateral as provided in Section 9-106 of the UCC) necessary to
perfect the security interest in the Collateral of the Pledgor created under this Agreement
have been duly made or taken, or delivered to the Pledgee or its agent for filing, and are
in full force and effect, and this Agreement creates in favor of the Pledgee a valid and,
together with such filings and other actions, a perfected first priority security interest
in the Collateral of the Pledgor, securing the payment of the Secured Obligations.

     (g) No authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any other third party is required for
(i) the grant by the Pledgor of the security interest granted hereunder or for the
execution, delivery or performance of this Agreement by the Pledgor, (ii) the perfection or
maintenance of the security interest created hereunder (including the first priority nature
of such security interest), except for the filing of financing and continuation statements
under the UCC, which financing statements have been duly filed and are in full force and
effect, or delivered to the Pledgee or its agent for filing, and the actions described in
Section 4 with respect to the Collateral, which actions have been taken and are in full
force and effect, or (iii) the exercise by the Pledgee of its voting or other rights
provided for in this Agreement or the remedies in respect of the Collateral pursuant to this
Agreement, except as may be required in connection with the disposition of any portion of
the Security Collateral by laws affecting the offering and sale of securities generally.

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     Section 6. Further Assurances.

     (a) The Pledgor agrees that from time to time, at the expense of the Pledgor, the
Pledgor will promptly execute and deliver, or otherwise authenticate, all further
instruments and documents, and take all further action that may be necessary or desirable,
or that the Pledgee may request, in order to perfect and protect any pledge or security
interest granted or purported to be granted by the Pledgor hereunder or to enable the
Pledgee to exercise and enforce its rights and remedies hereunder with respect to any
Collateral of the Pledgor. Without limiting the generality of the foregoing, the Pledgor
will promptly with respect to Collateral of the Pledgor: (i) if any such Collateral shall
be evidenced by a promissory note or other instrument, deliver and pledge to the Pledgee
hereunder such note or instrument duly indorsed and accompanied by duly executed instruments
of transfer or assignment, all in form and substance satisfactory to the Pledgee;
(ii) execute or authenticate and file such financing or continuation statements, or
amendments thereto, and such other instruments or notices, as may be necessary or desirable,
or as the Pledgee may request, in order to perfect and preserve the security interest
granted or purported to be granted by the Pledgor hereunder; (iii) deliver and pledge to the
Pledgee certificates representing any Collateral that constitutes certificated securities,
accompanied by undated stock or bond powers executed in blank; (iv) take all action
necessary to ensure that the Pledgee has control of Collateral consisting of investment
property as provided in Section 9-106 of the UCC; and (v) deliver to the Pledgee evidence
that all other action that the Pledgee may deem reasonably necessary or desirable in order
to perfect and protect the security interest created by the Pledgor under this Agreement has
been taken.

     (b) The Pledgor hereby authorizes the Pledgee to file one or more financing or
continuation statements, and amendments thereto, in each case without the signature of the
Pledgor, and regardless of whether any particular asset described in such financing
statements falls within the scope of the UCC. A photocopy or other reproduction of this
Agreement or any financing statement covering the Collateral or any part thereof shall be
sufficient as a financing statement where permitted by law. The Pledgor ratifies its
authorization for the Pledgee to have filed such financing statements, continuation
statements or amendments filed prior to the date hereof.

     (c) The Pledgor will furnish to the Pledgee from time to time statements and schedules
further identifying and describing the Collateral of the Pledgor and such other reports in
connection with such Collateral as the Pledgee may reasonably request, all in reasonable
detail.

     Section 7. Post-Closing Changes. The Pledgor will not change its name, type of organization,
jurisdiction of organization, organizational identification number or location from those set forth
in Section 5(a) of this Agreement without first giving at least 10 Business Days’ prior written
notice to the Pledgee and taking all action required by the Pledgee for the purpose of perfecting
or protecting the security interest granted by this Agreement. The Pledgor will not become bound
by a security agreement covering the Collateral authenticated by another person or entity
(“Person”) (determined as provided in Section 9-203(d) of the UCC) without giving the Pledgee
30 days’ prior written notice thereof and taking all action required by the Pledgee to

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ensure that the perfection and first priority nature of the Pledgee’s security interest in the
Collateral will be maintained. The Pledgor will hold and preserve its records relating to the
Collateral, and will permit representatives of the Pledgee at any time during normal business hours
to inspect and make abstracts from such records and other documents. If the Pledgor does not have
an organizational identification number and later obtains one, it will forthwith notify the Pledgee
of such organizational identification number.

     Section 8. Voting Rights; Dividends; Etc. (a) So long as no Specified Event of Default shall
have occurred and be continuing:

     (i) The Pledgor shall be entitled to exercise any and all voting and other consensual
rights pertaining to the Collateral of the Pledgor or any part thereof for any purpose;
provided, however, that the Pledgor will not exercise or refrain from exercising any such
right if such action would have a material adverse effect on the value of the Collateral or
any part thereof.

     (ii) The Pledgor shall be entitled to receive and retain any and all dividends,
interest and other distributions paid in respect of the Collateral of the Pledgor if and to
the extent that the payment thereof is not otherwise prohibited by the terms of the 2005
Pledge Agreement Documents; provided, however, that any and all:

     (A) dividends, interest and other distributions paid or payable other than in
cash in respect of, and instruments and other property received, receivable or
otherwise distributed in respect of, or in exchange for, any Collateral,

     (B) dividends and other distributions paid or payable in cash in respect of any
Collateral in connection with a partial or total liquidation or dissolution or in
connection with a reduction of capital, capital surplus or paid-in-surplus and

     (C) cash paid, payable or otherwise distributed in respect of principal of, or
in redemption of, or in exchange for, any Collateral

shall be, and shall be forthwith delivered to the Pledgee to hold as, Collateral and shall,
if received by the Pledgor, be received in trust for the benefit of the Pledgee, be
segregated from the other property or funds of the Pledgor and be forthwith delivered to the
Pledgee as Collateral in the same form as so received (with any necessary indorsement).

     (iii) The Pledgee will execute and deliver (or cause to be executed and delivered) to
the Pledgor all such proxies and other instruments as the Pledgor may reasonably request for
the purpose of enabling the Pledgor to exercise the voting and other rights that it is
entitled to exercise pursuant to paragraph (i) above and to receive the dividends or
interest payments that it is authorized to receive and retain pursuant to paragraph (ii)
above.

     (b) Upon the occurrence and during the continuance of a Specified Event of Default:

     (i) All rights of the Pledgor (x) to exercise or refrain from exercising the voting and
other consensual rights that it would otherwise be entitled to exercise pursuant

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to Section 8(a)(i) shall, upon notice to the Pledgor by the Pledgee, cease and (y) to
receive the dividends, interest and other distributions that it would otherwise be
authorized to receive and retain pursuant to Section 8(a)(ii) shall automatically cease, and
all such rights shall thereupon become vested in the Pledgee, which shall thereupon have the
sole right to exercise or refrain from exercising such voting and other consensual rights
and to receive and hold as Collateral such dividends, interest and other distributions.

     (ii) All dividends, interest and other distributions that are received by the Pledgor
contrary to the provisions of paragraph (i) of this Section 8(b) shall be received in trust
for the benefit of the Pledgee, shall be segregated from other funds of the Pledgor and
shall be forthwith paid over to the Pledgee as Collateral in the same form as so received
(with any necessary indorsement).

     Section 9. Transfers and Other Liens; Additional Shares.

     (a) The Pledgor agrees that it will not, without the prior written consent of the
Pledgee, (i) sell, assign or otherwise dispose of, or grant any option with respect to, any
of the Collateral, other than sales, assignments and other dispositions of Collateral, and
options relating to Collateral, permitted under the terms of the 2005 Pledge Agreement
Documents, or (ii) create or suffer to exist any lien upon or with respect to any of the
Collateral of the Pledgor except for the pledge, assignment and security interest created
under this Agreement.

     (b) The Pledgor agrees that, except as otherwise agreed to by the Pledgee, it will
(i) cause each issuer of the Pledged Equity pledged by the Pledgor not to issue any equity
interests or other securities in addition to or in substitution for the Pledged Equity
issued by such issuer, except to the Pledgor to be pledged hereunder (except that MuniMae TE
Bond Subsidiary, LLC shall be permitted to issue preferred shares in substitution for or in
addition to the preferred shares issued and outstanding on the date hereof to holders other
than the Pledgor), and (ii) pledge hereunder, immediately upon its acquisition (directly or
indirectly) thereof, any and all additional stock and other equity interests of each issuer
of the Pledged Equity.

     Section 10. The Pledgee Appointed Attorney-in-Fact. The Pledgor hereby irrevocably appoints
the Pledgee, or its agent, the Pledgor’s attorney-in-fact, with full authority in the place and
stead of the Pledgor and in the name of the Pledgor or otherwise, from time to time upon the
occurrence and during the continuance of a Specified Event of Default in the Pledgee’s discretion,
to take any action and to execute any instrument that the Pledgee may deem necessary or advisable
to accomplish the purposes of this Agreement, including, without limitation:

     (a) to ask for, demand, collect, sue for, recover, compromise, receive and give
acquittance and receipts for moneys due and to become due under or in respect of any of the
Collateral,

     (b) to receive, indorse and collect any drafts or other instruments or documents in
connection with clause (a) above, and

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     (c) to file any claims or take any action or institute any proceedings that the Pledgee
may deem necessary or desirable for the collection of any of the Collateral or otherwise to
enforce compliance with the rights of the Pledgee with respect to any of the Collateral.

     Section 11. The Pledgee May Perform. If the Pledgor fails to perform any agreement contained
herein, the Pledgee may, as the Pledgee deems necessary to protect the security interest granted
hereunder in the Collateral or to protect the value thereof, but without any obligation to do so
and without notice, itself perform, or cause performance of, such agreement, and the expenses of
the Pledgee incurred in connection therewith shall be payable by the Pledgor under Section 14.

     Section 12. The Pledgee Duties.

     (a) The powers conferred on the Pledgee hereunder are solely to protect the Pledgee’
interest in the Collateral and shall not impose any duty upon it to exercise any such
powers. Except for the safe custody of any Collateral in its possession and the accounting
for moneys actually received by it hereunder, the Pledgee shall have no duty as to any
Collateral, as to ascertaining or taking action with respect to calls, conversions,
exchanges, maturities, tenders or other matters relative to any Collateral, whether or not
the Pledgee is deemed to have knowledge of such matters, or as to the taking of any
necessary steps to preserve rights against any parties or any other rights pertaining to any
Collateral. the Pledgee shall be deemed to have exercised reasonable care in the custody
and preservation of any Collateral in its possession if such Collateral is accorded
treatment substantially equal to that which it accords its own property.

     (b) Anything contained herein to the contrary notwithstanding, the Pledgee may from
time to time, when the Pledgee deems it to be necessary, appoint one or more collateral
agents (each a “Collateral Agent”) for the Pledgee hereunder with respect to all or any part
of the Collateral, which Collateral Agent shall be selected with reasonable care. In the
event that the Pledgee so appoints any Collateral Agent with respect to any Collateral,
(i) the assignment and pledge of such Collateral and the security interest granted in such
Collateral by the Pledgor hereunder shall be deemed for purposes of this Agreement to have
been made to such Collateral Agent, in addition to the Pledgee, as security for the Secured
Obligations of the Pledgor, (ii) such Collateral Agent shall automatically be vested, in
addition to the Pledgee, with all rights, powers, privileges, interests and remedies of the
Pledgee hereunder with respect to such Collateral, and (iii) the term “the Pledgee,” when
used herein in relation to any rights, powers, privileges, interests and remedies of the
Pledgee with respect to such Collateral, shall include such Collateral Agent; provided,
however, that no such Collateral Agent shall be authorized to take any action with respect
to any such Collateral unless and except to the extent expressly authorized in writing by
the Pledgee.

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     Section 13. Remedies. If a Specified Event of Default shall have occurred and be continuing:

     (a) The Pledgee may exercise in respect of the Collateral, in addition to other rights
and remedies provided for herein or otherwise available to it, all the rights and remedies
of a secured party upon default under the UCC (whether or not the UCC applies to the
affected Collateral) and also may: (i) without notice except as specified below, sell the
Collateral or any part thereof in one or more parcels at public or private sale, at any of
the Pledgee’s offices or elsewhere, for cash, on credit or for future delivery, and upon
such other terms as the Pledgee may deem commercially reasonable; and (ii) exercise any and
all rights and remedies of the Pledgor under or in connection with the Collateral, or
otherwise in respect of the Collateral, including, without limitation, any and all rights of
the Pledgor to demand or otherwise require payment of any amount under, or performance of
any provision of, the Collateral, and exercise all other rights and remedies with respect to
the Collateral, including, without limitation, those set forth in Section 9-607 of the UCC.
The Pledgor agrees that, to the extent notice of sale shall be required by law, at least ten
days’ notice to the Pledgor of the time and place of any public sale or the time after which
any private sale is to be made shall constitute reasonable notification. the Pledgee shall
not be obligated to make any sale of Collateral regardless of notice of sale having been
given. the Pledgee may adjourn any public or private sale from time to time by announcement
at the time and place fixed therefor, and such sale may, without further notice, be made at
the time and place to which it was so adjourned.

     (b) Any cash held by or on behalf of the Pledgee and all cash proceeds received by or
on behalf of the Pledgee in respect of any sale of, collection from, or other realization
upon all or any part of the Collateral may, in the discretion of the Pledgee, be held by the
Pledgee as collateral for, and/or then or at any time thereafter applied (after payment of
any amounts payable to the Pledgee pursuant to Section 14) in whole or in part by the
Pledgee against, all or any part of the Secured Obligations, in the following manner:

     (i) first, paid to the Pledgee for any amounts then owing to the Pledgee by the
Pledgor pursuant to the 2005 Pledge Agreement Documents; and

     (ii) second, any surplus of such cash or cash proceeds held by or on the behalf
of the Pledgee and remaining after payment in full of all the Secured Obligations
shall be paid over to the Pledgor or to whomsoever may be lawfully entitled to
receive such surplus; provided that if the Pledgor has any other past due payment
obligations owing to the Pledgee under the Related Swap Agreements, the Pledgee
shall be entitled to apply such surplus to such payment obligations before releasing
such surplus to Pledgor.

     (c) All payments received by the Pledgor under or in connection with the Collateral
shall be received in trust for the benefit of the Pledgee, shall be segregated from other
funds of the Pledgor and shall be forthwith paid over to the Pledgee in the same form as so
received (with any necessary indorsement).

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     (d) If the Pledgee shall determine to exercise its right to sell all or any of the
Security Collateral of the Pledgor pursuant to this Section 13, the Pledgor agrees that,
upon request of the Pledgee, the Pledgor will, at its own expense:

     (i) execute and deliver, and cause each issuer of such Security Collateral
contemplated to be sold and the directors and officers thereof to execute and
deliver, all such instruments and documents, and do or cause to be done all such
other acts and things, as may be necessary or, in the opinion of the Pledgee,
advisable to register such Security Collateral under the provisions of the
Securities Act of 1933 (as amended from time to time, the “Securities Act”), to
cause the registration statement relating thereto to become effective and to remain
effective for such period as prospectuses are required by law to be furnished and to
make all amendments and supplements thereto and to the related prospectus that, in
the opinion of the Pledgee, are necessary or advisable, all in conformity with the
requirements of the Securities Act and the rules and regulations of the Securities
and Exchange Commission applicable thereto;

     (ii) use its best efforts to qualify the Security Collateral under the state
securities or “Blue Sky” laws and to obtain all necessary governmental approvals for
the sale of such Security Collateral, as requested by the Pledgee;

     (iii) cause each such issuer of such Security Collateral to make available to
its security holders, as soon as practicable, an earnings statement that will
satisfy the provisions of Section 11(a) of the Securities Act;

     (iv) provide the Pledgee with such other information and projections as may be
necessary or, in the opinion of the Pledgee, advisable to enable the Pledgee to
effect the sale of such Security Collateral; and

     (v) do or cause to be done all such other acts and things as may be necessary
to make such sale of such Security Collateral or any part thereof valid and binding
and in compliance with applicable law.

     (e) the Pledgee is authorized, in connection with any sale of the Security Collateral
pursuant to this Section 13, to deliver or otherwise disclose to any prospective purchaser
of the Security Collateral: (i) any registration statement or prospectus, and all
supplements and amendments thereto, prepared pursuant to subsection (d)(i) above; (ii) any
information and projections provided to it pursuant to subsection (d)(iv) above; and
(iii) any other information in its possession relating to such Security Collateral.

     (f) the Pledgee may, without notice to the Pledgor except as required by law and at any
time or from time to time, charge, set-off and otherwise apply all or any part of the
Secured Obligations against any funds held in any deposit account of the Pledgor.

     Section 14. Indemnity and Expenses.

     (a) The Pledgor agrees to indemnify, defend and save and hold harmless the Pledgee and
each of its Affiliates and its respective officers, directors, employees, agents

10

 

and advisors (each, an “Indemnified Party”) from and against, and shall pay on demand,
any and all claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and expenses of counsel) that may be incurred by or asserted or
awarded against any Indemnified Party, in each case arising out of or in connection with or
resulting from this Agreement (including, without limitation, enforcement of this
Agreement), except to the extent such claim, damage, loss, liability or expense is found in
a final, nonappealable judgment by a court of competent jurisdiction to have resulted from
such Indemnified Party’s gross negligence or willful misconduct.

     (b) The Pledgor will upon demand pay to the Pledgee the amount of any and all
reasonable expenses, including, without limitation, the reasonable fees and expenses of its
counsel and of any experts and agents, that the Pledgee may incur in connection with (i) the
administration of this Agreement, (ii) the custody or preservation, or the sale of,
collection from or other realization upon, any of the Collateral of the Pledgor, (iii) the
exercise or enforcement of any of the rights of the Pledgee hereunder or (iv) the failure by
the Pledgor to perform or observe any of the provisions hereof.

     Section 15. Amendments; Waivers, Etc. No amendment or waiver of any provision of this
Agreement, and no consent to any departure by the Pledgor herefrom, shall in any event be effective
unless the same shall be in writing and signed by the Pledgee, and then such waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given. No
failure on the part of the Pledgee to exercise, and no delay in exercising any right hereunder,
shall operate as a waiver thereof; nor shall any single or partial exercise of any such right
preclude any other or further exercise thereof or the exercise of any other right.

     Section 16. Notices, Etc. All notices and other communications provided for hereunder shall
be in writing (including telecopier communication) and mailed, telecopied or otherwise delivered to
the applicable parties at the addresses set forth in the 2005 Pledge Agreement; or at such other
address as shall be designated by such party in a written notice to the other parties. All such
notices and other communications shall, when mailed, telecopied or otherwise, be effective three
Business Days after when deposited in the mails, or when actually received, if telecopied or
otherwise delivered (or confirmed by a signed receipt), respectively, addressed as aforesaid;
except that notices and other communications to the Pledgee shall not be effective until received
by the Pledgee. Delivery by telecopier of an executed counterpart of any amendment or waiver of
any provision of this Agreement or Schedule hereto shall be effective as delivery of an original
executed counterpart thereof.

     Section 17. Continuing Security Interest; Assignments. This Agreement shall create a
continuing security interest in the Collateral and shall (a) remain in full force and effect until
(i) the termination of the 2005 Pledge Agreement and the payment in full of all of the Pledgor’s
obligations with respect thereto and under the 2005 Pledge Agreement Documents or (ii) the release
of the security interest is permitted pursuant to the terms of the Agreement With Respect to
Collateral, dated as of March 6, 2008, relating to the 2005 Pledge Agreement (as amended, restated
and/or supplemented from time to time, the “Amendment to 2005 Pledge Agreement Documents”), and
(b) be binding upon the Pledgor, its successors and assigns. All of the rights of the Pledgee
hereunder shall be assignable without the consent of the Maker to any person or

11

 

entity that has assumed the obligations of the Pledgee with respect to the Confirmation
Letters as permitted by the 2005 Pledge Agreement Documents.

     Section 18. Release; Termination.

     (a) Upon any sale, transfer or other disposition of any item of Collateral of the
Pledgor in accordance with the terms of the 2005 Pledge Agreement Documents at the direction
of or with the consent of the Pledgee, the Pledgee will, at the Pledgor’s expense, execute
and deliver to the Pledgor such documents as the Pledgor shall reasonably request to
evidence the release of such item of Collateral from the assignment and security interest
granted hereby; provided, however, that (i) at the time of such request and such release no
Specified Event of Default shall have occurred and be continuing, and (ii) the Pledgor shall
have delivered to the Pledgee, at least ten Business Days prior to the date of the proposed
release, a written request for release describing the item of Collateral and the terms of
the sale, transfer or other disposition in reasonable detail, including, without limitation,
the price thereof and any expenses in connection therewith, together with a form of release
for execution by the Pledgee and a certificate of the Pledgor to the effect that the
transaction is in compliance with the 2005 Pledge Agreement Documents and as to such other
matters as the Pledgee may request. Notwithstanding the foregoing, the Pledgee shall
release its security interest as required to do so pursuant to the terms of the Agreement
With Respect to Swap Collateral. Promptly, upon any such termination, all rights to the
Collateral shall revert to the Pledgor and the Pledgee shall, at the Pledgor’s expense,
(i) return to Pledgor all certificates representing the Pledged Equity along with any
related endorsements and (ii) execute and deliver to the Pledgor such documents and take
such actions as the Pledgor shall reasonably request to evidence such termination to effect
the release of its security interests hereunder.

     (b) Upon the complete termination of all 2005 Pledge Agreement and the payment in full
of the Pledgor’s obligations with respect thereto and under the 2005 Pledge Agreement
Documents or a release of the security interest pursuant to the terms of the Amendment to
2005 Pledge Agreement Documents, the pledge and security interest granted hereby shall
terminate and all rights to the Collateral shall revert to the Pledgor. Promptly, upon any
such termination, the Pledgee shall, at the Pledgor’s expense, (i) return to Pledgor all
certificates representing the Pledged Equity along with any related endorsements and
(ii) execute and deliver to the Pledgor such documents and take such actions as the Pledgor
shall reasonably request to evidence such termination to effect the release of its security
interests hereunder.

     Section 19. Execution in Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement. Delivery of an executed counterpart of
a signature page to this Agreement by telecopier shall be effective as delivery of an original
executed counterpart of this Agreement.

12

 

     Section 20. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

[Remainder of page intentionally left blank]

13

 

     IN WITNESS WHEREOF, the Pledgor has caused this Agreement to be duly executed and delivered by
its officer thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	MUNIMAE TEI HOLDINGS, LLC

 	 
	 	By  	 	 
	 	Name	 	 
	 	Title	 	 
	 

 

 

[Signature page to Pledge Agreement]

	 	 	 	 	 
	 	MERRILL LYNCH CAPITAL SERVICES, INC.

 	 
	 	By  	 	 
	 	Name	 	 
	 	Title	 	 
	 

 

 

[Signature page to Pledge Agreement]

	 	 	 	 	 
	 	MERRILL, LYNCH, PIERCE, FENNER & SMITH INCORPORATED

 
	 	By  	 	 	 
	 	Name	 	 	 
	 	Title	 	 	 
	 

 

 

SCHEDULE I TO THE

SECURITY AGREEMENT

LOCATION, CHIEF EXECUTIVE OFFICE,

TYPE OF ORGANIZATION, JURISDICTION OF ORGANIZATION

AND ORGANIZATIONAL IDENTIFICATION NUMBER

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Location (per	 	Chief	 	 	 	 	 	 
	 	 	Section 9-307 of	 	Executive	 	Type of	 	Jurisdiction	 	Organizational
	
Pledgor
	 	the UCC)	 	Office	 	Organization	 	of Organization	 	I.D. No.
	MuniMae TEI
	 	Maryland	 	621 East Pratt	 	LLC	 	Maryland	 	W05207691
	Holdings, LLC
	 	 	 	Street,
3rd floor,
Baltimore, MD
21202	 	 	 	 	 	 
	 
	 	 	 		 	 	 	 	 	 

 

 

SCHEDULE II TO THE

SECURITY AGREEMENT

PLEDGED EQUITY

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Percentage
	 	 	 	 	Type of
Equity	 	 	 	Certificate	 	Number of	 	of
Outstanding
	Pledgor	 	Issuer	 	Interests	 	Par Value	 	No(s)	 	Shares	 	Shares
	MuniMae TEI
Holdings, LLC	 	MuniMae TE
Bond
Subsidiary, LLC	 	Common
LLC Interests	 	N/A	 	010	 	1,000	 	9.9% of Common Shares (as defined in the Operating Agreement of the Issuer)

 

 

SCHEDULE III TO THE

SECURITY AGREEMENT

CHANGES IN NAME, LOCATION, ETC.

     Changes in the Pledgor’s Name (including new pledgor with a new name and names associated with
all predecessors in interest of the Pledgor): None.

     Changes in the Pledgor’s Location: None

Changes in the Pledgor’s Chief Executive Office: until 10/24/2003, the Pledgor’s Chief
Executive office was located at: Suite 500, N. Charles Street, Baltimore, MD 21201

     Changes in the Type of Organization: None

     Changes in the Jurisdiction of Organization: None

     Changes in the Organizational Identification Number: Noneexv10w49

Exhibit 10.49

SIXTH AMENDED AND RESTATED LOAN AGREEMENT

AMONG

MMA MULTIFAMILY EQUITY REIT

AND

MUNICIPAL
MORTGAGE & EQUITY, LLC

AND

CERTAIN
OF ITS AFFILIATES DEFINED

HEREIN
AS THE BORROWER AND THE GUARANTORS

DATED AS OF: MARCH ___, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I: DEFINITIONS	 	 	3	 
	1.1.  
	 	Certain Defined Terms	 	 	3	 
	1.2.  
	 	Accounting Terms	 	 	12	 
	1.3.  
	 	Interpretation and Construction	 	 	12	 
	ARTICLE II: LOANS; INTEREST; FEES; COLLATERAL	 	 	12	 
	2.1  
	 	Loans	 	 	12	 
	2.2  
	 	[Reserved]	 	 	13	 
	2.3  
	 	Loan Account	 	 	13	 
	2.4  
	 	Interest and Fees	 	 	14	 
	2.5  
	 	Prime Rate Applicability	 	 	14	 
	2.6  
	 	Payments and Computations	 	 	15	 
	2.7  
	 	Obligations Absolute	 	 	15	 
	2.8  
	 	Grant of Security	 	 	16	 
	2.9  
	 	Guaranty	 	 	16	 
	2.10

	 	Maturity	 	 	16	 
	2.11

	 	Posting of Collateral	 	 	16	 
	2.12

	 	[Reserved]	 	 	16	 
	2.13

	 	[Reserved]	 	 	16	 
	2.14

	 	Change in Laws
	 	 	17	 
	2.15

	 	Term of Agreement	 	 	17	 
	ARTICLE III: CONDITIONS PRECEDENT	 	 	17	 
	3.1  
	 	Conditions Precedent to Effectiveness of this Agreement	 	 	17	 
	3.2  
	 	Conditions Precedent to Making Loans	 	 	18	 
	3.3  
	 	Delivery of Documents	 	 	21	 
	3.4  
	 	Conditions Precedent to Releasing Collateral	 	 	21	 
	3.5  
	 	Financing Statement Filings	 	 	21	 
	ARTICLE IV: REPRESENTATIONS AND WARRANTIES	 	 	21	 
	4.1  
	 	Organization and Qualification	 	 	21	 
	4.2  
	 	Capitalization	 	 	22	 
	4.3  
	 	Authorization	 	 	23	 
	4.4  
	 	Title to Properties; Absence of Liens	 	 	23	 
	4.5  
	 	Compliance	 	 	23	 
	4.6  
	 	Solvency	 	 	24	 
	4.7  
	 	Events of Default	 	 	24	 
	4.8  
	 	Taxes	 	 	24	 
	4.9  
	 	Restrictions on the Borrower and the Guarantors	 	 	24	 
	4.10

	 	ERISA	 	 	24	 
	4.11

	 	Environmental and Regulatory Compliance	 	 	25	 
	4.12

	 	Contracts with Affiliates, Etc.
	 	 	25	 
	4.13

	 	Regulatory Approvals	 	 	25	 
	4.14

	 	Enforceability	 	 	25	 
	4.15

	 	Liens	 	 	26	 
	4.16

	 	Litigation	 	 	26	 
	4.17

	 	Lender’s Representation and Warranty	 	 	26	 
	ARTICLE V: COVENANTS	 	 	26	 

i

 

	 	 	 	 	 	 	 
	5.1  
	 	Liens	 	 	26	 
	5.2  
	 	Merger; Sale	 	 	26	 
	5.3  
	 	Taxes; Reserves	 	 	27	 
	5.4  
	 	Notices	 	 	27	 
	5.5  
	 	Inspection	 	 	28	 
	5.6  
	 	Financial Reporting	 	 	29	 
	5.7  
	 	Insurance	 	 	30	 
	5.8  
	 	Collateral	 	 	30	 
	5.9  
	 	Further Assurances	 	 	31	 
	5.10

	 	Intentionally Omitted	 	 	31	 
	5.11

	 	No Amendments to Certain Documents	 	 	31	 
	5.12

	 	Intentionally Omitted
	 	 	31	 
	5.13

	 	Change of Jurisdiction of Organization; Name Change; Change of Location	 	 	31	 
	5.14

	 	[Reserved]	 	 	31	 
	5.15

	 	[Reserved]	 	 	31	 
	5.16

	 	Conduct of Business	 	 	31	 
	5.17

	 	Limitation of Indebtedness
	 	 	33	 
	5.18

	 	ERISA Compliance	 	 	33	 
	5.19

	 	Intentionally Omitted	 	 	33	 
	5.20

	 	Maintenance of Books and Records	 	 	33	 
	5.21

	 	Use of Proceeds	 	 	33	 
	5.22

	 	Transactions with Affiliates	 	 	34	 
	5.23

	 	Environmental Regulations	 	 	34	 
	5.24

	 	Fiscal Year	 	 	34	 
	5.25

	 	Investor Contributions	 	 	34	 
	5.26

	 	Restricted Payments	 	 	35	 
	5.27

	 	Ownership; Control	 	 	35	 
	5.28

	 	Transfer of Property Partnership Interests	 	 	35	 
	5.29

	 	Separate Credit Reliance	 	 	35	 
	5.30

	 	[Reserved]	 	 	35	 
	5.31

	 	Disbursement and Repayment Accounts	 	 	35	 
	5.33

	 	Special Limited Partner	 	 	36	 
	ARTICLE VI: DEFAULTS AND REMEDIES	 	 	36	 
	6.1  
	 	Events of Default	 	 	36	 
	6.2  
	 	Remedies	 	 	39	 
	ARTICLE VII: CONVERSION OF CORPORATE PROPERTY PARTNERSHIPS TO PROPERTY PARTNERSHIPS	 	 	39	 
	7.1  
	 	Direct Investment, Capital Contribution and Direct Convertible
Loans to Corporate Property Partnerships	 	 	39	 
	7.2  
	 	Conversion of Corporate Property Partnerships	 	 	40	 
	7.3  
	 	No Additional Funding Obligations	 	 	40	 
	7.4  
	 	Release of Corporate Property Partnership as Collateral	 	 	40	 
	ARTICLE VIII: MISCELLANEOUS	 	 	40	 
	8.1  
	 	Amendments and Waivers	 	 	40	 
	8.2  
	 	CONTROLLING LAW
	 	 	40	 
	8.3  
	 	Notices	 	 	41	 

ii

 

	 	 	 	 	 	 	 
	8.4  
	 	Headings	 	 	41	 
	8.5  
	 	Counterparts	 	 	41	 
	8.6  
	 	Indemnification	 	 	41	 
	8.7  
	 	[Reserved]	 	 	42	 
	8.8  
	 	Costs and Expenses	 	 	42	 
	8.9  
	 	Severability	 	 	43	 
	8.10

	 	Continuing Obligation; Recourse; Assignment; Survival	 	 	43	 
	8.11

	 	Compliance with Usury Laws	 	 	43	 
	8.12

	 	Replacement Documents	 	 	44	 
	8.13

	 	Setoff	 	 	44	 
	8.14

	 	Investment Securities	 	 	44	 
	8.15

	 	Entire Agreement	 	 	44	 
	8.16

	 	WAIVER OF JURY TRIAL; VENUE	 	 	44	 

iii

 

ATTACHMENTS TO SIXTH AMENDED AND RESTATED LOAN AGREEMENT

	 	 	 
	SCHEDULE A

	 	Information Regarding Borrower, Guarantors,
	SCHEDULE B

	 	Property Partnership, Corporate Property Partnership and Additional Collateral
	EXHIBIT 3.2

	 	Form of Borrowing Base Certificate
	EXHIBIT 3.2.5(c)

	 	Form of Collateral Assignment, Pledge and Security Agreement
	EXHIBIT 5.7

	 	Insurance Requirements

iv

 

SIXTH AMENDED AND RESTATED LOAN AGREEMENT

     THIS SIXTH AMENDED AND RESTATED LOAN AGREEMENT (this “Agreement”) is entered into as of March
___, 2008, among: the several entities included among the Borrower as listed on Schedule A
attached hereto (individually, and collectively, jointly and severally, the “Borrower”); the
several entities included among the Guarantors as listed on Schedule A attached hereto
(each, individually, a “Guarantor,” and collectively, jointly and severally, the “Guarantors”); and
MMA Multifamily Equity REIT, a Maryland real estate investment trust (the “Lender”).

R E C I T A L S

     Reference is made to the following facts that constitute the background of this Agreement
(certain of the terms set forth in these Recitals are defined in Section 1.1 and
Schedule A):

I. BACKGROUND REGARDING PURPOSE OF THE LOAN:

     A. On or about November 4, 2005, the Borrower and Guarantors amended and restated an existing
credit facility with Bank of America and other banks acting as a syndicate (collectively, the
“Banks”) pursuant to which the Banks agreed to continue to provide certain credit facilities made
available to the Borrower (the “Prior Revolving Loan”) pursuant to that certain Fifth Amended and
Restated Revolving Loan and Letter of Credit Agreement (the “Prior Loan Agreement’).

     B. The Borrower and Guarantors have requested that the Lender purchase the Prior Revolving
Loan and continue, to a limited extent, the line of credit made available to the Borrower under the
Prior Loan Agreement pursuant to this amended and restated Agreement.

     C. In response to such request from the Borrower and Guarantors, Lender agreed to purchase and
as of the date hereof has purchased the Prior Revolving Loan from the Banks pursuant to an
Assignment and Assumption Agreement dated as of the date hereof among the Lender, the Bank of
America, N.A., Citicorp USA, Inc., Merrill Lynch Community Development Company, LLC, Sovereign
Bank, HSBC Bank USA, and Comerica Bank. In connection with the foregoing purchase, the Credit
Notes, the Prior Loan Agreement and all other documents or instruments executed and delivered in
connection with the Prior Revolving Loan were assigned to the Lender.

     D. The Lender is willing to amend and restate the Prior Loan Agreement and all other documents
and instruments in connection with the Prior Revolving Loan to the extent the Lender deems is
reasonably necessary to continue the credit facility provided under the Prior Revolving Loan, but
only in accordance with the terms and conditions contained herein. It is the intention of the
parties that such amendment and restatement shall constitute a continuation, rather than a
novation, of the obligations of the Borrower and Guarantors under the Prior Loan Agreement.

     E. The parties hereto hereby agree that this Agreement amends and restates in its entirety the
Prior Loan Agreement and all obligations of the Borrower and Guarantors in

 

 

connection with the
Loans are being provided pursuant to the terms and conditions contained herein.

II. BACKGROUND REGARDING THE BORROWER’S BUSINESS AND PURPOSE OF THIS AGREEMENT:

     F. The Borrower holds, prior to syndication via an Investment Partnership, equity interests
constituting at least 95% (or, at the Borrower’s election, such greater interest as permitted in
applicable Internal Revenue Service regulations) of the limited partnership or membership interests
in Property Partnerships and has made and in some instances will continue to make capital
contributions to the Property Partnerships in exchange for such equity interests (such capital
contributions hereinafter referred to as “Direct Investments”).

     G. In lieu of making Direct Investments directly to Property Partnerships, the Borrower made
and may continue, from time to time, to make capital contributions to Middle Tier Entities in
exchange for all of the equity interests in such MTEs (such capital contributions hereinafter
referred to as “Investment Contributions”), so as to permit each such MTE to make Direct
Investments in one, and only one, Property Partnership, in order to permit the Borrower to hold,
indirectly through its ownership of 100% of the equity of such MTE, equity interests constituting
at least 95% (or, at the Borrower’s election, such greater interest as permitted in applicable
Internal Revenue Service Regulations) of the limited partnership or membership interests in such
Property Partnership.

     H. The Borrower intends that such equity interests it holds directly in such Property
Partnerships or directly in such MTEs will be syndicated via Investment Partnerships to third-party
investors at a price that will provide such investors with an internal rate of return which is
comparable to the prevailing market rate of return for similar investments.

     I. The Borrower also made loans directly to various Property Partnerships (“Direct Convertible
Loans”) as an alternative to making Direct Investments and made loans to fund capital contributions
to Middle Tier Entities in lieu of making Direct Convertible Loans or making Investment
Contributions in exchange for all of the equity interests in such MTEs (such capital contributions
hereinafter referred to as “Convertible Loan Contributions” and referred to collectively with
Investment Contributions as “Capital Contributions”) so as to permit each such MTE to make loans to
one (and only one) Property Partnership (“MTE Convertible Loans” referred to collectively with
Direct Convertible Loans.

     J. MuniMae agreed to cause one or more of the Guarantors to provide the Borrower with
Co-Funding Amounts with respect to each Direct Investment, Direct Convertible Loan or Capital
Contribution to be made by a Borrower or a MTE under this Agreement. By means of the credit
facilities to be continued under and subject to this Agreement, the Borrower desires and Lender
agrees to continue the credit facility provided to Borrower, the proceeds of which shall fund (in
combination with Co-Funding Amounts) the
remaining sums required by the Borrower or a MTE, as the case may be, to fund Direct
Investments or Convertible Loans and to fund Capital Contributions.

2

 

     K. Prior to the date hereof, the Borrower and/or Affiliates of MuniMae have made investments
with respect to Property Partnerships (either directly or indirectly) from funds other than the
proceeds of the Prior Revolving Loan (each being a “Corporate Property Partnership”). Each
Corporate Property Partnership shall constitute part of the Collateral for the Loan hereunder, and
may convert to a Property Partnership pursuant to the terms contained in Article VII hereof.
Unless and until a Corporate Property Partnership converts to a Property Partnership pursuant to
Article VII hereof, no proceeds of any Loan from the Lender shall be used to fund any Direct
Investments, Capital Contributions or Direct Convertible Loans with respect to any Corporate
Property Partnership.

     L. On the terms and conditions of this Agreement and with the benefit of the security being
provided to the Lender in connection with this Agreement and the other Credit Documents, the Lender
has agreed to make available to the Borrower a line of credit not to exceed the Maximum Amount (as
defined in Section 1.1) for use by the Borrower, in combination with the Co-Funding Amounts, in
making Capital Contributions, Direct Investments and Direct Convertible Loans as described in this
Agreement and to payoff all obligations of the Borrower outstanding under the Prior Revolving Loan.

     NOW, THEREFORE, in consideration of the Recitals and of the mutual covenants and conditions
therein and set forth below, and for other valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by the parties, the parties agree as follows:

ARTICLE I: DEFINITIONS

     1.1. Certain Defined Terms. In addition to the terms defined in the preamble,
Recitals, and Schedule A to this Agreement, the following terms shall have the meanings set
forth below:

     “401(k) Plan” has the meaning assigned to that term in Section 5.18.

     “Additional Collateral” means all right, title and interest of MMA Construction
Finance, LLC in all promissory notes, loan agreements, mortgages or deeds of trust, guarantees and
any other documents executed in connection with loans made by MMCF in connection with the projects
listed on Schedule “B” attached hereto and pledged as collateral for the Loans.

     “Affiliate” means, with reference to any person (including an individual, a
corporation, a partnership, a limited liability company, a trust and a governmental agency or
instrumentality) that is controlling, controlled by or under direct or indirect common control of
that person.

     “Agreement” means this Sixth Amended and Restated Loan Agreement, among the Borrower,
the Lender, and the Guarantors, as may be amended, restated or otherwise modified from time to time
in accordance with the terms hereof.

     “Borrower” means, individually or collectively as the context may require, SPE I and
SPE II.

     “Business Day” means any day other than a Saturday, Sunday or legal holiday recognized
by Banks in the State of Maryland. If any payment hereunder or in the Note becomes due on a day
which is not a Business Day, the due date of such payment shall be extended to the next

3

 

succeeding Business Day, and such extension of time shall be included in computing interest and fees in
connection with such payment.

     “Capital Contribution” shall mean, collectively, Convertible Loan Contributions and
Investment Contributions.

     “Closing Date” means March 21, 2008.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Co-Funding Amount” means the portion of each Direct Convertible Loan or Direct
Investment that was or shall be provided by the Borrower to a Property Partnership or the portion
of each Capital Contribution that was or shall be provided by the Borrower to a MTE, rather than by
a Loan. The Co-Funding Amount associated with any Loan made or issued in order to permit the
Borrower to make a Capital Contribution, Direct Investment or Direct Convertible Loan shall equal
ten percent (10%) of the total principal amount of such Capital Contribution, Direct Investment or
Direct Convertible Loan. The Borrower and the Guarantors hereby covenant and agree that all
Co-Funding Amounts shall be made available to the Borrower solely by one or more of the Guarantors
and that such Guarantor or Guarantors shall provide such Co-Funding Amounts solely by either making
a capital contribution to the Borrower or by lending such Co-Funding Amount to the Borrower. In
the event that a Guarantor lends Co-Funding Amounts to the Borrower, such loans shall be unsecured
and shall be entered on the books of such Guarantor or Guarantors and the Borrower, but shall
otherwise not be evidenced by any promissory note or other instrument, agreement or writing of any
kind (in order to assure that any such loan will not become collateral for any third party creditor
of such Guarantor or Guarantors). The Borrower and Guarantors each agree that all Co-Funding
Amounts provided to the Borrower, and any obligation of the Borrower to any Guarantor (or to any
other entity in the event the Borrower violates its covenant to obtain Co-Funding Amounts solely
from any one or more of the Guarantors) regarding any Co-Funding Amounts, shall be and hereby is
fully subordinated to any Loans made or issued with respect to the Property Partnership with
respect to which such Co-Funding Amount is provided, such that no Co-Funding Amount shall be repaid
to the Borrower or any Guarantor (or any such other entity) until such time as the Release
Conditions with respect to such Property Partnership have been satisfied and provided that no Event
of Default beyond any applicable notice and cure period has occurred and is continuing.

     “Collateral” means the property of the Borrower, each MTE and/or the Guarantors
securing, from time to time, the Obligations pursuant to the Security Documents, including without
limitation each Property Partnership, Corporate Property Partnership and Additional Collateral
Projects listed on Schedule “B” attached hereto and incorporated herein and any additional
Collateral approved by MRC Investment Committee from time to time pursuant to Section 2.11 hereof.

     “Collateral Assignment, Pledge and Security Agreement” has the meaning assigned to
such term in Section 3.2.5(c).

     “Collateral Value” means the sum of (i) total aggregate amount funded and outstanding
with respect to Direct Loans, Capital Contributions and Direct Convertible Loans with respect to

4

 

each Property Partnership and each Corporate Property Partnership, and (ii) the aggregate
outstanding principal balance of all loans constituting the Additional Collateral.

     “Control” means either (a) having an economic interest in greater than 50% of the
equity of an entity and the power and authority to elect or otherwise determine a majority of the
board of directors or similar governing body of such entity, or (b) having the power and authority
to determine and control the policies and operations of such entity.

     “Convertible Loan Agreement” means that certain loan agreement between the Borrower
(in the case of a Direct Convertible Loan) or a MTE (in the case of a MTE Convertible Loan) and a
Property Partnership evidencing a Convertible Loan.

     “Convertible Loan Contribution” shall mean each capital contribution made by the
Borrower to a Middle Tier Entity as contemplated by Recital II.H., the proceeds of which (together
with the applicable Co-Funding Amount) such MTE shall use solely to make MTE Convertible Loans in a
single Property Partnership.

     “Convertible Loans” shall mean, collectively, Direct Convertible Loans and MTE
Convertible Loans.

     “Corporate Property Partnerships” means those certain limited partnerships or limited
liability companies taxed as partnerships listed on Schedule “B” attached hereto and
incorporated herein (a) to which the Borrower made Direct Convertible Loans using funds other than
from the proceeds of the Prior Revolving Loan or the Loan, (b) in which the Borrower made Direct
Investments using funds other than from the proceeds of the Prior Revolving Loan or the Loan, and
(c) in which a MTE made Direct Investments or MTE Convertible Loans using funds other than from the
proceeds of the Prior Revolving Loan or the Loan. The sole purpose of such entities shall be to
develop, maintain and manage affordable multi-family residential developments for which the LIHTC
is available and to which a reservation, binding commitment or allocation of LIHTC has been made or
for which all action necessary for the LIHTC has occurred pursuant to an allocation of “volume cap”
for the issuance of tax exempt bonds or as otherwise approved by the Lender as set forth in this
Agreement.

     “Credit Documents” means, collectively, this Agreement, the Note, the Security
Documents and any other certificates, instruments or documents now or hereafter to be delivered to
the Lender pursuant to this Agreement or the Security Documents, as each of the same may be
ratified, amended, restated or otherwise modified from time to time.

     “Default” has the meaning assigned to that term in Section 6.1.

     “Default Rate” means, the lesser of (a) the Interest Rate in effect (i.e., Prime Rate
or LIBOR Rate) plus four percent (4%) or (b) the maximum rate of interest which may be charged or
collected in accordance with applicable law.

     “Direct Convertible Loans” shall mean the loans made by the Borrower to Property
Partnerships, in accordance with, and as contemplated by, the terms of this Agreement, as an
alternative to Direct Investments, as described in Recital II.I.

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     “Direct Investment” means the Borrower’s or a MTE’s investment in a Property
Partnership pursuant to which the Borrower or such MTE acquires at least 95% of the limited
partnership or membership interests in a Property Partnership in accordance with, and as
contemplated by, the terms of this Agreement.

     “Disclosure Schedule” means that certain Disclosure Schedule attached to, and referred
to in, this Agreement.

     “Encumbrances” has the meaning assigned to that term in Section 5.1 hereof.

     “Environmental Laws” has the meaning assigned to that term in Section 5.23
below.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the
rules and regulations thereunder.

     “ERISA Disqualified Person” shall have the meaning assigned to that term in
Section 4.10 hereof.

     “ERISA Party-in-Interest” shall have the meaning assigned to that term in
Section 4.10 hereof.

     “Event of Default” shall have the meaning assigned to that term in Section 6.1
hereof.

     “Filing Requirement” has the meaning assigned to that term in Section 5.18.

     “GAAP” means generally accepted accounting principles and practices as applicable
under Section 1.2 hereof and as set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of the accounting
profession. GAAP shall be consistently applied from one accounting period to another.

     “Governmental Authority” means any regional, national, federal, state, provincial,
county or municipal government, or political subdivision thereof, any governmental or
quasi-governmental agency, authority, board, bureau, commission, department, instrumentality,
office, or public body, or any court or administrative tribunal thereof.

     “Guarantors” has the meaning assigned to that term in the preamble and Schedule
A to this Agreement.

     “Guaranty” has the meaning assigned to that term in Section 2.9 hereof.

     “Indebtedness” with respect to any Person means and includes, without duplication (a)
all items which, in accordance with GAAP, would be liabilities on the balance sheet of such Person,
but excluding anything in the nature of capital stock or other equity, surplus capital and retained
earnings, (b) the face amount of all banker’s acceptances and of all drafts drawn under all
banker’s acceptances and of all letters of credit issued by any bank for the account of such Person
and, without duplication, all drafts drawn thereunder, (c) the total amount of all

6

 

indebtedness secured by any encumbrance to which any property or asset of such Person is subject, whether or not
the indebtedness secured thereby shall have been assumed, and (d) the total amount of all
indebtedness and obligations of others which such Person has directly or indirectly guaranteed,
endorsed (otherwise than for collection or deposit in the ordinary course of business), discounted
with recourse or agreed (contingently or otherwise) to purchase or repurchase or otherwise acquire,
including, without limitation, any agreement (i) to provide or supply funds to such other Person to
maintain working capital, equity capital, net worth or solvency, or (ii) otherwise to assure or
hold harmless such other Person against loss in respect of its obligations.

     “Insolvent” or “Insolvency” means that there shall have occurred one or more of the
following events with respect to a Person: death; dissolution; termination of existence;
insolvency within the meaning of the United States Bankruptcy Code or other applicable statute;
such Person’s general inability to pay its debts as they come due; the filing of a petition in
bankruptcy or commencement of any proceedings under any bankruptcy or insolvency laws, or any laws
relating to the relief of debtors, readjustment of indebtedness or reorganization of debtors, or
the offering of a plan to creditors for composition or extension, except for an involuntary
proceeding commenced against such person which is dismissed within ninety (90) days after the
commencement thereof without the entry of an order for relief or the appointment of a trustee.

     “Interest Period” means, with respect to Prime Rate Amounts, one (1) day. With respect
to LIBOR Rate Amounts the initial term period commencing on the Closing Date and continuing until
March 31, 2008 and with respect to each Interest Period thereafter, such period shall commence on
the first day of each and every month and shall end on the last day of such month until the
Maturity Date. In no event shall an Interest Period extend beyond the Maturity Date.

     “Interest Rate” means the per annum rate of interest owed on all Obligations
outstanding under the Loans equal to the greater of (i) the LIBOR Rate (or Prime Rate in the
event the per annum rate of interest on amounts outstanding on the Loans converts to the Prime
Rate pursuant to Section 2.5 hereof), and (ii) ten percent (10%).

     “Investment Contribution” shall mean each capital contribution made by the Borrower to
a Middle Tier Entity as contemplated by Recital II.G., the proceeds of which (together with the
applicable Co-Funding Amount) such MTE used or shall use solely to make Direct Investments in a
single Property Partnership.

     “Investment Partnership” shall mean any limited partnership or limited liability
company formed by the Guarantors (or Affiliates of the Guarantors) for the sole purpose of
investing either (a) directly in Property Partnerships, or (b) indirectly in Property Partnerships
by investing directly in MTEs, and syndicating the equity in such Property Partnerships or MTE’s to
Investors.

     “Investors” means the limited partners of any Investment Partnership admitted as
limited partners in connection with the syndication of such limited partnership interests.

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     “Lender” has the meaning assigned to that term in the preamble and in Schedule
A to this Agreement.

     “LIBOR” means, as applicable to any Interest Period, the floating rate per annum equal
to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other
commercially available source providing quotations of BBA LIBOR as designated by the Lender from
time to time) as of 11:00 a.m. London time on the date that is two London Banking Days preceding
the first day of such Interest Period; provided, however, if the rate described above does not
appear on Reuters on any applicable interest determination date, LIBOR shall be the rate determined
on the basis of the offered rates for deposits in U.S. dollars for a period of time comparable to
such Interest Period which are offered by four major banks in the London interbank market at
approximately 11:00 a.m. London time, on the day that is two (2) London Banking Days preceding the
first day of such Interest Period as selected by the Lender. The principal London office of each
of the four major London banks will be requested to provide a quotation of its U.S. Dollar deposit
offered rate. If at least two such quotations are provided, the rate for that date will be the
arithmetic mean of the quotations. If fewer than two quotations are provided as requested, the
rate for that date will be determined on the basis of the rates quoted for loans in U.S. Dollars to
leading European banks for a period of time comparable to such Interest Period offered by major
banks in New York City at approximately 11:00 a.m. New York City time, on the day that is two
London Banking Days preceding the first day of such Interest Period. In the event that the Lender
is unable to obtain any such quotation as provided above, it will be deemed that LIBOR for such
Interest Period cannot be determined.

     “LIBOR Rate” shall be the annual rate of interest equal to LIBOR plus seven percent
(7%). The LIBOR Rate shall be determined by the Lender on the day immediately preceding the first
day of an Interest Period. The Lender shall send immediate written notice of such LIBOR Rate to
the Borrower.

     “LIHTC” means low income housing tax credits under Section 42 of the Code.

     “Loan” or “Loans” has the meaning set forth in Section 2.1.1 hereof.

     “Loan Account” means the account on the books of the Lender in which will be recorded
Loans made by the Lender to the Borrower pursuant to this Agreement, payments made on such Loans
and other appropriate debits and credits as provided by this Agreement.

     “London Banking Day” means any date on which commercial banks in London, England are
open for business.

     “Maturity Date” means the earlier of: (a) September 30, 2008, or in the event that
such date is not a Business Day, the Maturity Date shall mean the first Business Day immediately
preceding such date; or (b) the date on which repayment of the Obligations has been accelerated
under the terms of Section 6.2 hereof. The Maturity Date may be extended to December 31,
2008 upon written notice by the Borrower to the Lender no later than five (5) Business Days prior
to the initial Maturity Date and the payment by the Borrower to the Lender of an extension fee
equal to one-quarter of one percent (.25%) of the Maximum Amount committed by Lender at the time
the extension notice is provided by the Borrower to the Lender, provided, however, at the

8

 

time of the notice of extension from the Borrower to the Lender no Event of Default has occurred and is
continuing.

     “Maximum Amount” means at any given time the lesser of (i) Thirty-Eight Million Five
Hundred Seventy-Five Thousand and 00/100 Dollars ($38,575,000.00), and (ii) the amount equal to
fifty percent (50%) of the Collateral Value; provided, however, at the option of the Borrower the
Maximum Amount hereunder may be permanently reduced at any time upon written notice from the
Borrower to the Lender.

     Middle Tier Entity” or “MTE” means a Delaware limited liability company
wholly-owned by either SPE I or SPE II and formed as a single purpose entity solely for the purpose
of receiving Capital Contributions from the Borrower and using such Capital Contributions to make
Direct Investments in one specific Property Partnership.

     “MTE Convertible Loans” shall mean the loans made by any MTE in one, and only one,
Property Partnership, in accordance with the terms of this Agreement with the proceeds of
Convertible Loan Contributions, as an alternative to Direct Investments made with Investment
Contributions, as described in Recital II.H.

     “MTE Pledge Agreement” has the meaning assigned to that term in Section
3.2.4(c).

     “Note” means the Sixth Amended and Restated Note in the aggregate principal amount of
the Maximum Amount, executed by the Borrower in favor of the Lender as the same may be amended,
restated or otherwise modified from time to time.

     “Obligations” means any and all of the payment and performance obligations and
liabilities of the Borrower or the Guarantors to the Lender under the Credit Documents,
existing on the date of this Agreement or arising thereafter, direct or indirect, absolute or
contingent, matured or unmatured, liquidated or unliquidated, or secured or unsecured.

     “Organizational Documents” means, with regard to (a) a corporation, its charter and
bylaws, (b) a limited partnership, its certificate of limited partnership and agreement of limited
partnership and any capital contribution agreement, (c) a limited liability company, its
certificate of formation or organization and operating agreement or such similar certificate or
agreement as is customary in the jurisdiction of organization for such limited liability company
and any capital contribution agreement, (d) a trust, its charter and declaration of trust, and (e)
any other type of entity, documents, agreements and certificates serving substantially the same
purposes as the foregoing.

     “Payment Obligations” means the Obligations of the Borrower to reimburse the Lender
for all amounts advanced to the Borrower hereunder, including, without limitation, any fees,
charges and other amounts, including interest due in respect thereof, provided for in this
Agreement.

     “Person” means an individual, estate, corporation, partnership, limited liability
company, association, joint stock company, trust, unincorporated organization or other entity.

     “Plans” has the meaning set forth in Section 4.10 hereof.

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     “Pledge Agreements” means, collectively: (a) (i) the Amended and Restated Equity
Pledge Agreement among the Borrower, MSLP and the Lender with respect to the Borrower’s now owned
or hereafter acquired equity interests (including special or administrative interests) in MTEs and
Property Partnerships, as may be amended, restated, modified or otherwise modified or assigned from
time to time, and (ii) the Amended and Restated MEC and MAH Equity Pledge Agreement among MEC,
MuniMae Affordable Housing, Inc. and the Lender with respect to all equity interests in the
Borrower and MSLP, each of which is dated as of the date hereof, as may be amended, restated, or
otherwise modified or assigned from time to time; (b) the equity pledge agreement between each MTE
and the Lender with respect to each MTE’s now owned or hereafter acquired equity interests
(including such MTE’s equity interests in its respective Property Partnership); as the same may be
amended, restated or otherwise modified or assigned from time to time; (c) the Pledge and Security
Agreement and Assignment of Loan and Collateral Documents from MMCF in favor of Lender with respect
to MMCF’s now owned or hereafter acquired right, title and interest in the loan made to finance the
project listed on Schedule “B” as “Additional Collateral Projects” as more particularly described
in such pledge agreement; (d) Equity Pledge Agreement between MuniMae Affordable Housing, Inc. and
the Lender; (e) West Cedar Management, Inc. Pledge Agreement by West Cedar Managing, Inc. (“West
Cedar”) in favor of the Lender with respect to West Cedar’s now owned equity interest in certain
MTE’s as set forth therein; (f) Collateral Assignment, Pledge and Security Agreement from MMA
Olmsted Green Phase I, LLC in favor of Lender with respect to the collateral pledged therein; (g)
Collateral Assignment, Pledge and Security Agreement from MMA St. Aidan’s LLC in favor of Lender
with respect
to collateral pledged therein; (h) Collateral Assignment, Pledge and Security Agreement from
MMA Golden Square, LLC in favor of Lender with respect to the collateral pledged therein.

     “Prime Rate” means the variable per annum rate of interest as designated in the
Wall Street Journal from time to time, plus two (2%) percent.

     “Prime Rate Amount” means the principal amount of the Loans bearing interest at the
Prime Rate in the event the LIBOR Rate cannot be determined by Lender pursuant to Section 2.5
hereof.

     “Project” means a real estate project engaged in by a Property Partnership to develop
and own residential units, which project is intended to qualify for the LIHTC.

     “Property Partnership Pledge” means each pledge by the Borrower or an MTE to a
Property Partnership in which the Borrower or an MTE pledges its equity interests in such Property
Partnership to such Property Partnership as collateral security for the Borrower’s or the MTE’s
obligation to make contributions to the capital of such Property Partnership.

     “Property Partnerships” means those certain limited partnerships or limited liability
companies taxed as partnerships listed on Schedule “B” attached hereto and incorporated
herein (a) to which the Borrower made or makes Direct Convertible Loans using, in addition to
Co-Funding Amounts, the proceeds of the Prior Revolving Loan and/or the Loans, (b) in which the
Borrower made or makes Direct Investments using, in addition to Co-Funding Amounts, the proceeds of
the Prior Revolving Loan and/or the Loan, (c) in which a MTE made or makes Direct Investments or
MTE Convertible Loans using the proceeds of Capital Contributions

10

 

and/or the Loans, and (d) Corporate Property Partnerships that for purposes of this Agreement and pursuant to Article VII
hereof converted to Property Partnerships. The sole purpose of such entities shall be to develop,
maintain and manage affordable multi-family residential developments for which the LIHTC is
available and to which a reservation, binding commitment or allocation of LIHTC has been made or
for which all action necessary for the LIHTC has occurred pursuant to an allocation of “volume cap”
for the issuance of tax exempt bonds or as otherwise approved by the Lender as set forth in this
Agreement. All Property Partnership governing documents shall provide, without limitation, for
(i) the general partner, manager or development sponsor thereof to repurchase the investor’s
interest therein, and (ii) the ability of the Lender (and its successors and assigns) under the
agreements described in clauses (a)(i) and (b) of the definition of Pledge Agreements to become,
with conditions as set forth in the Property Partnerships’ partnership agreements, the direct
limited partner or member in such Property Partnership.

     “Release Conditions” means, for a particular Property Partnership (and, if applicable,
its related MTE) repayment and performance in full of all Obligations outstanding with respect to
such Property Partnership (and, if applicable, such MTE) and for a particular Corporate Property
Partnership (and, if applicable its related MTE) (i) repayment in full of all amounts advanced by
the Borrower or any Guarantor in making Direct Investments, Capital Contributions or Direct
Convertible Loans with respect to a particular Corporate Property Partnership, (ii) with respect to
Corporate Property Partnerships that are not deemed converted
to a Property Partnership, satisfaction of the condition contained in Section 7.4 hereof, and
(iii) upon written approval at any time from Lender, provided the aggregate outstanding principal
balance of all Loans does not exceed the Maximum Amount.

     “Reportable Event” has the meaning assigned to it in ERISA.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other equity interest of MuniMae
or any of MuniMae’s Subsidiaries, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such capital stock or other equity interest or of
any option, warrant or other right to acquire any such capital stock or other equity interest.

     “Security Documents” means, collectively, the Guaranty, the Pledge Agreements, each
Collateral Assignment, Pledge and Security Agreement and all other agreements and instruments
entered into between or among the Borrower and the Lender, any of the Guarantors and the Lender,
any MTE and the Lender or any other person in favor of the Lender to secure the Obligations, all in
form and substance satisfactory to the Lender and its counsel, and in each case as the same may be
amended, restated or otherwise modified from time to time.

     “SPE I” means MMA Financing Warehousing, LLC, a Maryland limited liability company,
its successors and assigns.

     “SPE II” means MMA Financing Bond Warehousing, LLC, a Maryland limited liability
company, its successors and assigns.

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     “Subordination Agreement” means the Amended and Restated Subordination Agreement dated
as of March 21, 2008 among the Lender, TC Corp., MEC, MuniMae and any MuniMae Subsidiary now or
hereafter owned any Indebtedness by TC Corp. or MEC, pursuant to which such Indebtedness is
subordinated to payment of the Obligations as may be further ratified, amended, restated or
otherwise modified from time to time.

     “Subsidiary” shall mean, with reference to any person, any corporation, association,
joint stock company, business trust or other similar organization of whose total capital stock or
voting stock such person directly or indirectly owns or controls more than 50% thereof or any
partnership or other entity in which such person directly or indirectly has more than a 50%
interest.

     “UCC” means the Uniform Commercial Code, as adopted in and in effect in the State of
Maryland from time to time.

     1.2 Accounting Terms. All accounting terms used herein shall be interpreted, all
accounting determinations hereunder
shall be made, and all financial statements required to be delivered hereunder shall be
prepared (unless otherwise provided herein) in accordance with GAAP as in effect from time to time.

     1.3 Interpretation and Construction. For purposes of this Agreement, except as
otherwise expressly provided herein or unless the context otherwise requires:

          1.3.1 References to any Person refer to such Person and its successor in title and assigns or
(as the case may be) its successors, assigns, heirs, executors, administrators and other legal
representatives;

          1.3.2 References to this Agreement refer to such document as originally executed and as may be
amended, restated or otherwise modified from time to time in accordance with the provisions hereof;

          1.3.3 Words importing the singular only shall include the plural and vice versa, and words
importing the masculine gender shall include the feminine gender and vice versa, and all references
to dollars shall be to United States Dollars; and

          1.3.4 Grammatical variations of terms defined in this Agreement shall be defined with
reference to and in the context of such defined terms (e.g. “Controlling,” “Controlled,” etc. shall
be defined in the context of the definition of the word “Control” to refer to situations in which a
Person holds greater than fifty percent (50%) of the equity of an entity and the power and
authority to elect or otherwise determine a majority of the board of directors or similar governing
body of such entity).

ARTICLE II: LOANS; INTEREST; FEES; COLLATERAL

     2.1 Loans.

          2.1.1 Upon the terms and subject to the conditions of this Agreement, and in reliance upon the
representations, warranties and covenants of the Borrower and the Guarantors

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made herein the Lender
agrees to make loans (“Loans”, each a “Loan”) to the Borrower at the Borrower’s request from time
to time, provided that the maximum aggregate principal amount of all Loans outstanding at
any time shall not at any time exceed the Maximum Amount, and provided, further,
that at the time the Borrower requests a Loan there has not occurred and is not continuing any
Default or Event of Default. The Borrower agrees that it shall be an Event of Default if at any
time the debit balance of the Loan Account at such time shall exceed the Maximum Amount unless the
Borrower shall, upon notice of such excess from the Lender, within two (2) Business Days of such
notice, pay cash to the Lender to be credited to the Loan Account in such amount as shall be
necessary to eliminate the excess. All requests for Loans shall be made in writing by the Borrower
pursuant to Section 3.2.2 hereof and otherwise shall be in such form and shall be made in such
manner as the Lender reasonably may require. The Obligations on account of Loans shall be
evidenced by the Note.

          2.1.2 Loans may be prepaid in whole or in part at any time and from time to time without
premium or penalty. Interest accrued on the amounts so prepaid to the date of such payment and all
(if any) outstanding fees and charges must be paid no later than the first day of the month
following the month in which such prepayment is made.

          2.1.3 Except as set forth in Section 2.5 with respect to LIBOR Rate Amounts, interest
on Loans shall be payable monthly in arrears on the first (1st) Business Day of each
calendar month until the Maturity Date. The principal amount of all Loans made to fund Direct
Investments or Direct Convertible Loans to a particular Property Partnership, and all Loans made to
fund Capital Contributions to a particular Middle Tier Entity, together with all unpaid interest
thereon and other Obligations incurred with respect thereto, shall, in the ordinary course, be
repaid with the cash proceeds of Investor contributions to the Investment Partnership investing in
such Property Partnership or MTE which shall be paid by such Investment Partnership to the Borrower
simultaneously with and in consideration of the assignment by the Borrower to such Investment
Partnership of all of the Borrower’s right and title to and interest in the equity in such Property
Partnership or MTE, but in any event shall be repaid on or before the Maturity Date.

          2.1.4 Notwithstanding Section 2.1.3, with respect to each Project that has qualified
or is intended to qualify for so-called historic tax credits, the Borrower shall repay all Loans
(together with all accrued and unpaid interest thereon and any other Obligations incurred with
respect thereto) made with respect to the related Property Partnership or MTE not later than 15
days before the projected date on which the certificate of occupancy for the underlying Project is
to be issued.

     2.2 [Reserved].

     2.3 Loan Account. The Lender shall enter Loans pursuant to this Agreement, and any
other advances made by the Lender to the Borrower pursuant to this Agreement as debits in the Loan
Account. The Lender shall also record in the Loan Account all payments made by the Borrower on
account of the principal of the Loans and may also record therein, in accordance with customary
accounting practices, other debits and credits, including customary charges and all interest, fees,
charges and expenses chargeable to the Borrower under this Agreement. The debit balance of the
Loan Account shall reflect the amount of the Borrower’s Obligations from time to time by reason of
Loans and other appropriate charges hereunder. Upon request from

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any Borrower or Guarantor, the Lender shall render a statement of account showing as of its date all entries since the last
statement of the Loan Account which, absent manifest error and unless within thirty (30) days of
such date notice to the contrary is received by the Lender from the Borrower, shall be presumed
correct and accepted by the Borrower and shall be conclusively binding upon it.

     2.4 Interest and Fees.

          2.4.1 Loans shall bear interest at a rate per annum equal to the Interest Rate in effect from
time to time; provided that if an Event of Default shall occur, then the unpaid
balance of Loans shall bear interest, to the extent permitted by law, compounded monthly at an
interest rate equal to the Default Rate in effect on the day such Event of Default occurs, until
all then existing Events of Default are cured or waived.

          2.4.2 Without limiting any of the Lender’s other rights hereunder or by law, if any interest
on any Loan or any portion thereof is not paid within five (5) days after its due date, the
Borrower shall pay to the Lender on demand a late payment charge equal to 5% of the amount of the
payment due and outstanding.

     2.5 Prime Rate Applicability.

          2.5.1 If on any date in which the LIBOR Rate would otherwise be set the Lender notified the
Borrower that the Lender shall have determined reasonably in good faith (which determination shall
be final and conclusive) that, by reason of changes affecting the LIBOR market for dollar deposits,
adequate and reasonable means do not exist for ascertaining the LIBOR Rate, or at any time the
Lender has notified the Borrower that the Lender shall have determined reasonably in good faith
(which determination shall be final and conclusive) that:

               (a) The making of a loan subject to a LIBOR Rate has been made impracticable or unlawful by
(1) the occurrence of a contingency that materially and adversely affects the LIBOR market for
dollar deposits or (2) compliance by the Lender in good faith with any applicable law or
governmental regulation, guideline or order or interpretation or change thereof by any Governmental
Authority charged with the interpretation or administration thereof or with any request or
directive of any such administration thereof or with any request or directive of any such
Governmental Authority (whether or not having the force of law); or

               (b) If the Lender shall determine that adequate and reasonable means do not exist to be able
to determine the LIBOR Rate, then, and in any such event, the Lender shall forthwith so notify the
Borrower. Upon such date as shall be specified in such notice (which shall not be earlier than the
date such notice is given) the Lender shall, with respect to the then outstanding LIBOR Rate
Amounts, convert the same to loans bearing interest at the Prime Rate and such conversion shall not
require any payments by the Borrower.

          2.5.3 If any Interest Period would otherwise end on a day which is not a Business Day for
LIBOR Rate purposes, that Interest Period shall end on the Business Day next preceding or next
succeeding such day as determined by the Lender as set forth in a written notice to the Borrower,
at the beginning of such Interest Period.

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          2.5.4 [Reserved].

     2.6 Payments and Computations.

          2.6.1 The Borrower shall make each payment to the Lender hereunder not later than 2:00 p.m. on
the day when due to the Lender at 621 East Pratt Street, 3rd Floor, Baltimore, Maryland
21202 (or such other address designated by the Lender by written notice to the Borrower pursuant to
Section 8.4 hereof), in lawful currency of the United States of America in immediately
available funds. Each payment shall be made without any set-off, counterclaim, withholding or
deduction whatsoever. In all events, all outstanding Obligations, including, without limitation,
all outstanding amounts of the Loans together with all unpaid interest thereon and all fees,
charges and other amounts due hereunder shall be due and payable on the Maturity Date. All
payments (other than proceeds received in connection with the satisfaction of Release Conditions
for a Property Partnership or Middle Tier Entity) shall be applied first to the payment of all
fees, expenses and other amounts due to the Lender (excluding principal and interest), then to
accrued interest, then to outstanding principal with respect to such Property Partnerships or MTEs
for which Loans are then outstanding and the balance to the Borrower. All proceeds received in
connection with the satisfaction of Release Conditions for a Property Partnership or MTE shall be
applied first to the principal outstanding with respect to the Loans made in connection with Direct
Convertible Loans or Direct Investments in such Property Partnership, or the Capital Contribution
to such MTE, then to accrued interest, fees and expenses with respect to any of the foregoing, then
(if and to the extent there is not then outstanding a Default or an Event of Default) to the
repayment to the Borrower (or, if so directed by the Borrower, to such Guarantor or Guarantors) of
Co-Funding Amounts related to such Property Partnership or MTE, and the balance as set forth in the
immediately preceding sentence. Notwithstanding the foregoing, after demand, payments will be
applied to the Obligations of Borrower to the Lender as the Lender may determine in its
unrestricted discretion.

          2.6.2 Except as otherwise provided herein, all computations of fees and interest shall be made
on the basis of a year of 360 days for the actual number of days elapsed.

          2.6.3 Whenever any payment to be made hereunder shall be stated to be due on a day which is
not a Business Day, unless otherwise provided herein, such payment shall be made on the next
succeeding Business Day, and such extension of time shall in each such case be included in the
computation of interest or fees.

          2.6.4 In the event that payment to the Lender hereunder is made after 2:00 p.m. on a Business
Day, such payment shall be deemed received on the immediately following Business Day, and such
extension of time shall be included in the computation of interest or fee.

          2.6.5 Any rate of interest hereunder based upon or measured by reference to Prime Rate shall
change automatically and immediately as and when Prime Rate changes, without prior notice to the
Borrower. Any change in Prime Rate shall not affect or alter any of the terms and conditions of
this Agreement, all of which shall remain in full force and effect.

     2.7 Obligations Absolute. The Payment Obligations of the Borrower under this
Agreement shall be unconditional and irrevocable and shall be paid strictly in accordance with

15

 

the terms of this Agreement under all circumstances, including, without limitation, the following
circumstances: (a) any lack of validity or enforceability of any agreement or other document
related to the transaction with respect to which any Loan is made; (b) any departure from all or
any of the terms of any such agreement or document, except any departure resulting from the willful
misconduct or gross negligence of the Lender; (c) existence of any claim, setoff, defense or other
right which any Borrower may have at any time against the Lender whether in connection with this
Agreement, any such agreement or other document, the transactions contemplated herein or therein or
in any unrelated transaction; or (d) any other circumstance or happening whatsoever, whether or not
similar to any of the foregoing unless resulting from the gross negligence or willful misconduct of
the Lender.

     2.8 Grant of Security. As security for the payment and performance of all
Obligations, the Lender shall have, subject to the terms and conditions set forth in the Security
Documents, a continuing first priority perfected lien and security interest in the Collateral
described in the Security Documents. In connection with the provision of any Collateral, the
Borrower shall also deliver to the Lender any third-party consents (in form and substance
satisfactory to the Lender and its counsel) or waivers required for the granting of such security.

     2.9 Guaranty. The Obligations of the Borrower to the Lender under the Credit
Documents are guaranteed (i) by the Guarantors (other than MMCF) pursuant to that certain Joint and
Several Guaranty made by MFH, MEC, TC Corp., MSLP, MuniMae, BFGLP, BFRP and BFG Investments, (ii)
by MMA Construction Finance, LLC pursuant to that certain Limited Recourse Guaranty both dated as
of the date hereof (collectively, as the same may be amended, restated or otherwise modified from
time to time, the “Guaranty”).

     2.10 Maturity. The Lender’s obligation to make Loans and the Borrower’s right to
borrow hereunder shall terminate on the Maturity Date.

     2.11 Posting of Collateral. At any time and from time to time, upon the request of
the Borrower, the Lender may approve the pledge of additional property partnerships, equity
interests in MTEs related to additional property partnerships, construction loans, or any other
type of collateral proposed by the Borrower, subject to the approval of MRC Investment Committee
(“Lender’s Credit Committee”) in its sole and absolute discretion, as additional Collateral
securing the Obligations hereunder. Upon the approval of Lender’s Credit Committee, in its sole
discretion, of one or more additional property partnerships, equity interests, construction loans
or additional collateral as Collateral securing the Obligations, such additional collateral shall
be deemed a Property Partnership, Corporate Property Partnership or Additional Collateral
hereunder, as agreed to by Lender and Borrower, and the Borrower, MTE and/or Guarantor, as the case
may be, shall execute an equity pledge agreement or pledge and security agreement
in the form substantially similar to the Pledge Agreements. Schedule B attached hereto and
listing the Property Partnerships shall automatically and without further actions of either party
be amended to include such additional property partnerships as Collateral.

     2.12 [Reserved].

     2.13 [Reserved].

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     2.14 Change in Laws. Anything hereinbefore to the contrary notwithstanding, if any
future applicable law (which expression, as used in this Agreement, includes statutes and rules and
regulations thereunder and interpretations thereof by any competent court or by any governmental or
other regulatory body or official charged with the administration or the interpretation thereof and
requests, directives, instructions and notices at any time or from time to time heretofore or
hereafter made upon or otherwise issued to the Lender shall (1) subject the Lender to any tax,
levy, impost, duty, charge, fee, deduction or withholding of any nature with respect to this
Agreement, the loans or the payment to the Lender of any amounts due to it hereunder, or (2)
materially change the basis of taxation of payments to the Lender of the principal or the interest
on or any other amounts payable to the Lender hereunder, or (3) impose or increase or render
applicable any special or supplemental special deposit or reserve or similar requirements or
assessment against assets held by, or deposits in or for the account of, or any liabilities of, or
loans by an office of the Lender in respect of the transactions contemplated herein, or (4) impose
on the Lender any other conditions or requirements with respect to this Agreement, the Maximum
Amount, or any loan made hereunder, and the result of any of the foregoing is (a) to increase the
cost of making, funding or maintaining all or any part of the Loans, or (b) to reduce the amount of
principal, interest or other amount payable to the Lender hereunder, or (c) to require the Lender
to make any payment or to forego any interest or other sum payable hereunder, the amount of which
payment or foregoing interest or other sum is calculated by reference to the gross amount of any
sum receivable or deemed received by the Lender from the Borrower hereunder, then, and in each such
case not otherwise provided for hereunder, the Borrower will, upon demand made by the Lender
accompanied by calculations thereof in reasonable detail, pay to the Lender such additional amounts
as will be sufficient to compensate the Lender for such additional cost, reduction, payment or
foregone interest or other sum, provided that the foregoing provisions of this sentence shall not
apply in the case of any additional cost, reduction, payment or foregone interest or other sum
resulting from any taxes charged upon or by reference to the overall net income, profits or gains
of the Lender.

     2.15 Term of Agreement. This Agreement shall remain in full force and effect so long
as any Obligations remain outstanding or the Lender has any commitment to make Loans.

ARTICLE III: CONDITIONS PRECEDENT

     3.1 Conditions Precedent to Effectiveness of this Agreement. The obligation
of the Lender to continue the credit facility pursuant to this Agreement is subject to the
condition that the Lender shall have received, on or before the date hereof, in form and substance
satisfactory to the Lender:

          3.1.1 Fully executed originals of, or the Borrower shall have accomplished or caused to be
accomplished, the documents and actions listed on the closing checklist attached hereto as
Exhibit 3.1.1; and

          3.1.2 Such other instruments, documents or actions as the Lender or its counsel may reasonably
request.

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     3.2 Conditions Precedent to Making Loans. The obligation of the Lender to make any
Loans is further subject to the fulfillment to the satisfaction of the Lender immediately prior to
or contemporaneously with the making of such Loan of each of the following conditions:

          3.2.1 The representations and warranties contained in this Agreement or otherwise made in
writing by or on behalf of the Borrower or the Guarantors pursuant hereto or in connection with the
transactions contemplated hereby shall be true and correct in all material respects at the time of
the making of each such Loan (except for representations and warranties limited as to time or with
respect to a specific event, which representations and warranties shall continue to be limited to
such time or event) with and without giving effect to such Loan and the application of the proceeds
thereof. The Lender may without waiving this condition consider it fulfilled, and a representation
by the Borrower and the Guarantors to such effect made, as of the date each Loan is made if no
written notice to the contrary, dated the date of such Loan is received from the Borrower or
Guarantors. In the event that any of the Borrower or the Guarantors submits a written notice as
contemplated by the preceding sentence, the conditions set forth in this Section will be considered
fulfilled if such notice specifies in detail the exceptions to the representations and warranties
as of the date of such Loan, the exceptions as stated in such notice are satisfactory to the Lender
and the Lender so notifies the Borrower and the Guarantors.

          3.2.2 At the time of making each such Loan:

               (a) the Borrower and each Guarantor shall have performed and complied in all material respects
with all agreements and conditions contained in this Agreement or in any of the Credit Documents
required to be performed or complied with by it prior to or at such time;

               (b) no Default or Event of Default shall have occurred and be continuing or would result from
the making of such Loan;

               (c) there shall have been no material adverse change in the condition (financial or
otherwise), business or properties of the Borrower or Guarantors since the date of this Agreement;

               (d) the Co-Funding Amount required pursuant to the terms of this Agreement for such Loan shall
have been obtained by the Borrower in accordance with the definition of “Co-Funding Amount” set
forth in Section 1.1 hereof; and

               (e) the Lender shall have received a written request from an employee or officer of the
Borrower to the Lender requesting that the Lender make a Loan, which written request shall specify
the amount of the Loan requested and shall be accompanied by a borrowing base certificate
substantially in form attached hereto as Exhibit 3.2 with each such request.

          3.2.3 Direct Investment by Borrower. In addition, prior to or concurrently with the
making of the initial Loan at Closing, the Borrower or a Guarantor shall deliver to the Lender’s
counsel on behalf of the Lender a copy of each Property Partnerships’ partnership agreement and the
other Organizational Documents for each Property Partnership. If and to the extent determined by
the Lender’s counsel to be required, the Borrower or a Guarantor shall also

18

 

deliver to the Lender’s
counsel an acknowledgement and consent from each Property Partnership that received a Direct
Investment (and, if determined by the Lender to be required, its equity holders), in the form set
forth as Exhibit A to the Pledge Agreement described in clause (a)(i) of the definition of Pledge
Agreement.

          3.2.4 Investment Contribution by Borrower/Direct Investment by Middle Tier Entity. In
addition, prior to the making of the initial Loan on the Closing Date in connection with an
Investment Contribution to a particular Middle Tier Entity (and, in turn, a Direct Investment by
such MTE to a Property Partnership), the Borrower or a Guarantor will deliver, or cause the
applicable MTE to deliver, to the Lender’s counsel on behalf of the Lender:

               (a) the Organizational Documents of the MTE that received or is intending to receive the
Investment Contribution;

               (b) all of the documents required in connection with a Direct Investment by the Borrower as
described in Section 3.2.3, including, without limitation, the Organizational Documents of
each Property Partnership that received a Direct Investment from the MTE funded with the proceeds
of such Capital Contribution;

               (c) a Pledge Agreement, executed and delivered by the respective MTE to the Lender evidencing
the assignment of and grant of a first priority perfected security interest in all of such MTE’s
then owned or thereafter acquired equity interests, including, without limitation, the equity
interests in the Property Partnership in which such MTE made Direct Investments;

               (d) such evidence as the Lender may reasonably require establishing that the Lender’s security
interest arising under the MTE pledge pursuant to Section 3.2.4(c) above applicable to such MTE has
been perfected as a first priority perfected security interest, including, without limitation, (i)
a UCC search report conducted in Delaware with respect to the MTE, confirming that there are no
security interests, liens, or encumbrances on the MTE other than the security interests granted in
the MTE pledge pursuant to Section 3.2.4(c) above
(and confirming the filing of a UCC-1 financing statement in favor of the Lender and naming
the MTE as debtor), (ii) any consents required with respect to any collateral in which the MTE has
rights as of the execution date of the MTE pledge, and (iii) the certificates, if any, evidencing
any collateral held by the MTE as of the execution date of the MTE pledge agreement, together with
undated assignment(s) thereof executed in blank by the MTE.

          3.2.5 Direct Convertible Loans and Convertible Loan Contributions by Borrower/Convertible
Loans by MTEs. In addition, prior to or concurrently with the making of the initial Loan on
the Closing Date in connection with a Direct Convertible Loan to a particular Property Partnership,
or in connection with a Convertible Loan Contribution to a particular Middle Tier Entity (and, in
turn, a Convertible Loan by such MTE to a Property Partnership), the Borrower or a Guarantor will
deliver, or cause the applicable MTE to deliver, to the Lender’s counsel on behalf of the Lender:

               (a) the Organizational Documents of the Property Partnership that received the Convertible
Loan;

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               (b) in the case of a Convertible Loan Contribution, the Organizational Documents of the MTE
that received such Convertible Loan Contribution;

               (c) a Collateral Assignment, Pledge and Security Agreement, executed and delivered to the
Lender substantially in the form of Exhibit 3.2.5(c) attached hereto (a “Collateral
Assignment, Pledge and Security Agreement”), evidencing the assignment of and the grant of a first
priority perfected security interest in all of the Borrower’s or, as the case may be, MTE’s right,
title and interest in and to the following:

                    (i) the Convertible Loan Agreement entered into between the Borrower, or as the case may be,
the MTE, and the Property Partnership receiving such Convertible Loan;

                    (ii) the promissory note evidencing such Convertible Loan;

                    (iii) guaranties of repayment of such Convertible Loan from one or more of the developers and
equity holders of the Property Partnership receiving such Convertible Loan;

                    (iv) the pledge by all of the equity holders of the Property Partnership receiving such
Convertible Loan of their equity interests in such Property Partnership to the Borrower, or as the
case may be, such MTE accompanied by, to the extent applicable, delivery of any related security
certificates and an instrument of transfer executed in blank therefore; and

                    (v) any other collateral, security or guaranty which the Borrower, or as the case may be, such
MTE receives from the Property Partnership receiving such Convertible Loan (or its equity holders
or developer) as security for the repayment of such Convertible Loan;

               (d) an allonge to the promissory note evidencing such Convertible Loan, executed in blank;

               (e) any UCC Financing Statements or other such instruments, documents, certificates, filings
or agreements as the Lender may reasonably require; and

               (f) such evidence as the Lender may reasonably require establishing that the Lender’s security
interest arising under the Collateral Assignment, Pledge and Security Agreement applicable to such
Convertible Loan has been perfected as a first priority perfected security interest, including,
without limitation, a UCC-11 search report conducted in Delaware with respect to the Borrower or
the MTE, as applicable, confirming (i) the filing of a UCC-1 financing statement in favor of the
Lender and naming the Borrower or the MTE, as applicable, as debtor and (ii) that there are no
security interests, liens, or encumbrances on the Borrower or the MTE other than the security
interests granted in the Collateral Assignment, Pledge and Security Agreement or, in the case of a
Borrower, otherwise granted in favor of the Lender.

          3.2.6 Assuming the documents required pursuant to Section 3.2.3, 3.2.4 or 3.2.5 have
been delivered with respect to a particular Property Partnership or, if applicable, a particular

20

 

MTE, the Borrower may request additional Loans with respect to such Property Partnership or MTE by
complying with the requirements of Sections 3.2.1 and 3.2.2.

     3.3 Delivery of Documents. Drafts of the documents required to be delivered by the
Borrower under Sections 3.2.2, 3.2.3, 3.2.4 or 3.2.5 in connection with a request for a
Loan shall be delivered to the Lender at least three (3) Business Days prior to the intended making
of such Loan. The Borrower shall deliver to the Lender copies of fully-executed counterparts of
such documents prior to or on the date of the making of such Loan. The copies of fully-executed
counterparts of such documents may be delivered via facsimile or electronic mail.

     3.4 Conditions Precedent to Releasing Collateral. Assuming that no Event of Default
is then existing, the Lender shall release all of the Collateral relating to a specific Property
Partnership or Middle Tier Entity solely upon satisfaction of the Release Conditions applicable
thereto. Upon satisfaction of the Release Conditions for a particular Property Partnership or MTE,
(a) the Borrower shall make no further Capital Contributions, Direct Investments or Direct
Convertible Loans, either through the use of proceeds of Loans or otherwise to such Property
Partnership, or MTE; and (b) the Lender shall remit to the Borrower, cash, if and to the extent
actually received by the Lender and not required to be applied to the Obligations pursuant to
Section 2.6.1, in an amount equal to the aggregate Co-Funding Amounts deposited therein in
connection with all Loans made to enable the Borrower to make (i) Direct Investments or Direct
Convertible Loans to such Property Partnership or (ii) Capital Contributions to such MTE.

     3.5 Financing Statement Filings. The Lender (including any assignee) shall have the right to
file, without further
authorization by the Borrower, the initial financing statements with respect to the Collateral
pledged under the Pledge Agreements and all necessary continuation statements, assignments and
amendments within the time prescribed by the Uniform Commercial Code in order to continue the
security interests created under the Prior Revolving Loan and any security interests granted under
the Pledge Agreements.

ARTICLE IV: REPRESENTATIONS AND WARRANTIES

     In order to induce the Lender to enter into this Agreement and to make Loans hereunder, the
Borrower and Guarantors, jointly and severally, make the following representations and warranties
to the Lender (which representations and warranties shall survive the execution and delivery of
this Agreement and the making of any Loans):

     4.1 Organization and Qualification.

          4.1.1 Each of MFH, MEC, TC Corp., BFRP and MSLP (a) is a corporation, duly organized, validly
existing and in good standing under the laws of the state of its organization and is organized in
only one jurisdiction, (b) has all requisite corporate power and authority to own its property,
conduct its business as now conducted and as presently contemplated, and (c) is duly qualified and
in good standing in each jurisdiction (which jurisdictions are listed on Section 4.1 of the
Disclosure Schedule) where the nature of its business (present or proposed) requires such
qualification under applicable law except where the failure to be so qualified would not have a
materially adverse effect on its ability to perform its obligations hereunder. Each of MuniMae,
BFGLP, BFG Investments, SPE I, SPE II, MMCF and each MTE

21

 

(x) is a limited liability company duly
organized, validly existing and in good standing under the laws of the state of its organization,
(y) has all requisite power and authority to own its property and conduct its business as now
conducted and as presently contemplated; and (z) is duly qualified and in good standing in each
jurisdiction (which jurisdictions are listed in Section 4.1 of the Disclosure Schedule) where the
nature of its properties or its business (present or proposed) requires such qualification under
applicable law except where the failure to be so qualified would not have a materially adverse
effect on its ability to perform its obligations hereunder. As of the date hereof, the Borrower’s
and each Guarantor’s correct legal name, jurisdiction of organization, principal place of business,
chief executive office, federal tax identification number and, if applicable, state organizational
number and each other name used by such entity during the five years prior to the date hereof
(including any tradename) are set forth in Section 4.1 of the Disclosure Schedule.

          4.1.2 The sole purposes of SPE I and SPE II is (a) to acquire equity interests in Property
Partnerships by making Direct Investments, (b) to acquire equity interests in Middle Tier Entities
by making Capital Contributions, (c) to make Direct Convertible Loans to Property Partnerships, (d)
to convey to Investment Partnerships all of its right, title and interest in and to such Property
Partnerships and MTEs upon the admission through syndication of
Investors as limited partners of Investment Partnerships, and (e) purposes ancillary to such
Capital Contributions, Direct Investments, Direct Convertible Loans and syndications.

          4.1.3 MSLP’s sole purposes is to serve as the so-called “special limited partner”,
“administrative limited partner” “special member” or “special administrative member,” as
applicable, for each Property Partnership receiving a Direct Investment (and to serve as general
partner, manager or managing member, as applicable, if so required or permitted under such Property
Partnership’s Organizational Documents).

          4.1.4 The sole purpose of each Middle Tier Entity is (a) to receive Capital Contributions from
SPE I and SPE II, (b) with respect to a single Property Partnership, to use funds provided by such
Capital Contributions to (i) acquire equity interests in a such Property Partnership by making
Direct Investments therein and (ii) make MTE Convertible Loans to such Property Partnership, and
(c) purposes ancillary to such Direct Investments and MTE Convertible Loans.

     4.2 Capitalization. As of the date hereof, all of the issued and outstanding equity
and voting rights in the Borrower and each of the Guarantors (other than MuniMae and MMCF) is held
by the Persons and in the amounts or percentages set forth in Section 4.2 of the Disclosure
Schedule. There are no outstanding securities or agreements exchangeable for or convertible into
or carrying any rights to acquire any equity interests in any of the Borrower or Guarantors (other
than MuniMae or MMCF). Except as set forth in Section 4.2 of the Disclosure Schedule, and except
for Encumbrances permitted pursuant to Section 5.1 hereof, there are no outstanding
commitments, options, warrants, calls or other agreements (whether written or oral) binding on the
Borrower or any of the Guarantors (other than MuniMae or MMCF) which require or could require said
party to sell, grant, transfer, assign, mortgage, pledge or otherwise dispose of any equity
interests of said party. Except as set forth in the Borrower’s or Guarantors’ Organizational
Documents and Section 4.2 of the Disclosure Schedule, no equity interests of any of the Borrower or
the Guarantors (other than MuniMae or MMCF) are subject to any restrictions on

22

 

transfer or any agreements, voting agreements, trust agreements, trust deeds, irrevocable proxies, or any other
similar agreements or interests (whether written or oral), other than (a) Encumbrances permitted
pursuant to Section 5.1 hereof, and (b) restrictions and agreements entered into in
connection with Indebtedness permitted under Section 5.17 hereof. Until Release Conditions
with respect to a MTE have been satisfied, either SPE I or SPE II shall own all of the equity
interests in such MTE.

     4.3 Authorization. The execution, delivery and performance by the Borrower, each
Guarantor and each Middle Tier Entity of each of the Credit Documents and the other documents
related thereto or contemplated thereby to which it is or will be a party (a) have been and will be
duly authorized by all necessary action on its part; (b) do not and will not conflict with, or
result in a violation of, any provision of law or any order, writ, rule or regulation of any court
or governmental agency or instrumentality binding upon or applicable to it or its organizational
documents; (c) do not and will not conflict with, result in a violation of, or constitute a default
under, any material
agreement, mortgage, indenture or instrument to which it is a party or by which it or its
property is bound; and (d) do not and will not result in, or require, the creation or imposition of
any lien (other than as permitted, arising under or contemplated by the Credit Documents) upon or
with respect to any of its property.

     4.4 Title to Properties; Absence of Liens. As of the date of this Agreement, except
as set forth in Section 4.4 of the Disclosure Schedule, the Borrower, each Guarantor and each MTE
has and will have good title to all of its respective assets and rights of every name and nature
now purported to be owned or managed by it, in each case free from all liens, charges and
encumbrances whatsoever except for insubstantial defects in title which do not materially detract
from the value or impair the use of the affected properties and liens, charges or encumbrances
permitted under Section 5.1 hereof. The rights, properties and other assets presently
owned, leased, licensed or managed by the Borrower or any Guarantor and described elsewhere in this
Agreement, including all Exhibits hereto, include all rights, properties and other assets necessary
to permit the Borrower and each Guarantor to conduct its business in all material respects in the
same manner as such business has been conducted prior to the date hereof or as contemplated by this
Agreement.

     4.5 Compliance. The Borrower, each Guarantor and each MTE has and will have all
necessary permits, approvals, authorizations, consents, licenses, franchises, registrations and
other rights and privileges (including patents, trademarks, trade names and copyrights, if any) to
allow it to own and operate its business without any violation of law or the rights of others
(except for any such violation as would not materially and adversely affect the condition
(financial or otherwise), properties, business or results of operations of the Borrower, any
Guarantor or any MTE); and the Borrower, each Guarantor and each MTE is and will be duly
authorized, qualified and licensed under and in compliance with all applicable laws, regulations,
authorizations and orders of public authorities, including, without limitation, to the best of the
Borrower’s and each Guarantor’s actual knowledge after due inquiry, laws relating to toxic or
hazardous wastes, substances or materials and protection of the environment (except where the
failure to comply would not materially and adversely affect the condition (financial or otherwise),
properties, business or results of operations of any Borrower or any Guarantor). The Borrower,
each Guarantor and each MTE has performed and will perform all obligations required to be performed
by it under, and is not in default under or in violation of, its

23

 

organizational or charter documents or any agreement, lease, mortgage, note, bond, indenture, license, permit, order,
authorization or other instrument or undertaking to which it is a party or by which any of it or
any of its properties are bound, except for violations which either individually or in the
aggregate would not have any material adverse effect on the business, condition (financial or
otherwise) or assets of the Borrower, any Guarantor or any MTE.

     4.6 Solvency. Each of the Borrower and Guarantors has and, after giving effect to the
Loans will have, assets (both tangible and intangible) having a fair salable value in excess of the
amount required to pay the probable liability on its then-existing debts (whether matured or
unmatured, liquidated or unliquidated,
fixed or contingent); each of the Borrower and Guarantors has and will have access to adequate
capital for the conduct of its respective businesses and the discharge of its respective debts
incurred in connection therewith as such debts mature.

     4.7 Events of Default. As of the date of this Agreement, no Default or Event of
Default exists.

     4.8 Taxes. (a) The Borrower, each Guarantor and each MTE has filed and will file all
federal, state and other material tax returns required to be filed, or has obtained lawful
extensions with respect to such filings, and all federal, state and other material taxes,
assessments and other such governmental charges due from each of them have been and will be fully
paid, (b) neither the Borrower, any Guarantor nor any MTE has executed or will execute any waiver
that would have the effect of extending the applicable statute of limitations in respect of its tax
liabilities, and (c) the Borrower, each Guarantor and each MTE has established and will establish
on its books reserves in accordance with GAAP (except as otherwise disclosed in writing to the
Lender) adequate for the payment of all federal, state and other tax liabilities.

     4.9 Restrictions on the Borrower and the Guarantors. Neither the Borrower, any
Guarantor, nor any MTE is or will be a party to or bound by any contract, agreement or instrument,
nor subject to any restriction which will, under current or reasonably foreseeable conditions,
materially and adversely affect its business, property, assets, operations or conditions, financial
or otherwise.

     4.10 ERISA. Except as set forth in Section 4.10 of the Disclosure Schedule, the
Borrower, each Guarantor, and each “employee pension benefit plan” and each “employee welfare
benefit plan” (as defined in ERISA) maintained by the Borrower or any Guarantor (collectively, the
“Plans”) are in compliance in all material respects with ERISA, the provisions of the Code
applicable to the Plans and the terms of such Plans; neither the Borrower nor any Guarantor nor any
Plan has engaged in a “prohibited transaction” (as defined in ERISA and the Code) which would
subject the Borrower, any Guarantor, any such Plan or any party in interest (as defined in Section
3(14) of ERISA) (hereinafter “ERISA Party-in-Interest”) or disqualified person (as defined in
Section 4975 of the Code) (hereinafter an “ERISA Disqualified Person”) with respect to any such
Plan to a tax or penalty that could have a material adverse effect on the Borrower or a Guarantor;
neither the Borrower nor any Guarantor nor any Plan has incurred any unpaid “minimum required
contribution” (as defined in 430(a) of the Code and Section 303 of ERISA); the aggregate current
value of all assets of the funded Plans of the Borrower and any Guarantor which are single-employer
plans is at least equal to the aggregate current value of all accrued benefits under such Plans
calculated in accordance with actuarial assumptions current as

24

 

of the date of this representation and warranty on an on-going Plan basis; neither the Borrower nor
any Guarantor has incurred any liability to the Pension Benefit Guaranty Corporation over and above
basic benefit premiums required by law Section 4007 of ERISA; and neither the Borrower nor any
Guarantor has terminated any Plan, in whole or in part, in a manner which could result in the
imposition of a lien on the property of the Borrower or any Guarantor.

     4.11 Environmental and Regulatory Compliance. As to each of the real properties in
which the Borrower holds a direct or indirect ownership or beneficial interest, except as described
in Section 4.11 of the Disclosure Schedule, each such property, to the Borrower’s and each
Guarantor’s actual knowledge (based on third-party environmental reports received at the time each
such real property was acquired), is presently in compliance in all material respects with and has
in full force and effect all material permits or material approvals required by all applicable
laws, ordinances or regulations, including, without limitation, Environmental Laws (as defined in
Section 5.23). If any such property is not in compliance with the foregoing, the Borrower
and the Guarantors are in the process of performing and/or using their commercially reasonable
efforts to cause the general partners of each Property Partnership to perform, their respective
obligations relative to such property, and such non-compliance does not have or will not have a
material adverse effect on the business of the Borrower or the Guarantors or properties in which
the Borrower or any Guarantor holds a direct or indirect ownership or beneficial interest. Except
as set forth in Section 4.11 of the Disclosure Schedule, no written inquiry, claim, complaint,
court order, request for information, notice or threat to give notice by any Governmental Authority
or third party has been received by the Borrower or any Guarantor with respect to the foregoing
property, nor does the Borrower or any Guarantor have any actual knowledge of any oral inquiry,
claim, complaint, court order, request for information, notice or threat to give notice by any
Governmental Authority or third party with respect to the foregoing property, alleging violation of
or asserting any noncompliance with applicable law, ordinances or regulations and Environmental
Laws.

     4.12 Contracts with Affiliates, Etc. Neither Borrower, any Guarantor nor any MTE is
or will be a party to or otherwise bound by any agreement, instrument or contract (whether written
or oral) with any Affiliate that would materially and adversely affect the condition (financial or
otherwise), properties, business or results of operations of the Borrower, any Guarantor or any
MTE.

     4.13 Regulatory Approvals. No authorization, consent, approval, permit, license,
exemption from or filing or registration with any court or governmental department, commission,
board, bureau, agency or instrumentality is necessary for the valid execution, delivery or
performance by the Borrower, any Guarantor or any MTE of the Credit Documents, except for the
filing of UCC-1 financing statements.

     4.14 Enforceability. Each of the Credit Documents constitutes, and the other
documents contemplated thereby to which the Borrower, any Guarantor or any MTE is or will be a
party, when executed and delivered by it, does or will constitute its legal, valid and binding
obligations, enforceable in accordance with their respective terms, except as such enforceability
(but not validity) may be limited by general principles of equity or applicable bankruptcy,
insolvency, reorganization or other similar laws of general application affecting the rights of
creditors and secured parties.

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     4.15 Liens. Each of the Security Documents, to the extent therein provided, creates
valid, binding and enforceable security interests in the Collateral in favor of the Lender, except
as such enforceability (but not validity) may be limited by general principles of equity or
applicable bankruptcy, insolvency, reorganization or other similar laws of general application
affecting the rights of creditors and secured parties. There are no liens upon any of the
Collateral, except liens granted by the Security Documents or disclosed in Section 4.15 of the
Disclosure Schedule.

     4.16 Litigation. Except as set forth in Section 4.16 of the Disclosure Schedule,
there are no suits, actions, proceedings or investigations pending or, to the knowledge of the
Borrower or any Guarantor, threatened against or affecting the Borrower, any Guarantor or any MTE
or any of their respective properties which would materially and adversely affect any of the
transactions contemplated by this Agreement or which, if determined adversely, could reasonably be
expected to have a material adverse effect on the condition (financial or otherwise), properties or
operations of the Borrower or any Guarantor or adversely affect the ability of the Borrower or any
Guarantor to perform its respective obligations hereunder.

     4.17 Lender’s Representation and Warranty. The Lender represents and warrants to each
Borrower and Guarantor that it has the authority to enter into this Agreement and the execution and
delivery of this Agreement and all other Credit Documents and the obligations of Lender hereunder
and under all Credit Documents has been approved and all necessary consents and approvals required
have been received as of the date hereof. The execution, delivery and performance by the Lender
hereunder and under the other Credit Documents to which it is a party (a) do not and will not
conflict with or result in a violation of any provision of law or any order, write, rule or
regulation of any court or governmental agency or instrumentality binding upon or applicable to it
or its organizational documents, and (b) do not and will not conflict with, result in a violation
of, or constitute a default under, any material agreement, mortgage, indenture or instrument to
which it is a party or by which it is bound.

ARTICLE V: COVENANTS

     So long as any Obligation remains unsatisfied and the Lender is obligated to make additional
Loans pursuant to this Agreement, the Borrower and the Guarantors jointly and severally hereby
covenant to the Lender as follows:

     5.1 Liens. Without the prior written consent of the Lender, neither the Borrower nor
any Middle Tier Entity, shall create, incur, assume or suffer to exist any lien, encumbrance,
security interest or other encumbrance of any type (“Encumbrances”) upon or with respect to any of
the Collateral, except: (a) Encumbrances existing on the date of this Agreement and set forth in
Section 4.4 or Section 4.15 of the Disclosure Schedule; (b) liens for taxes, fees, assessments and
other governmental charges to the extent that payment of the same is not required in accordance
with the provisions of Section 5.3;(c) liens, encumbrances, security interests or other
encumbrances in favor of the Lender; or (d) Encumbrances consisting of Property Partnership
Pledges.

     5.2 Merger; Sale. Without obtaining the prior written consent of the Lender in each
instance, neither the Borrower nor any Guarantor (other than MMCF) shall reorganize, be

26

 

reconstituted, engage in any transaction which would result in a change in Control of such party
(other than a change in Control of MuniMae), or enter into any agreement for the sale or other
transfer of substantially all of its assets or equity or for the merger or consolidation of such
party with or into another entity, except as permitted under Section 5.27 hereof.

     5.3 Taxes; Reserves. The Borrower and each Guarantor shall, and shall cause each MTE
to, pay or cause to be paid all taxes, assessments or governmental charges on or against it or its
properties prior to the time when they shall become delinquent, except to the extent that failure
to make such payments would not reasonably be expected to have a material adverse effect on the
business, properties or condition (financial or otherwise) of the Borrower, any Guarantor, or any
MTE, and provided that this covenant shall not apply to any tax, assessment or charge which is
being contested in good faith and with respect to which adequate reserves have been established and
are being maintained in accordance with GAAP.

     5.4 Notices.

          5.4.1 Defaults. The Borrower and the Guarantors, promptly after obtaining actual
knowledge thereof, shall advise the Lender of the existence of any default or event of default
under any agreement or other document binding upon or executed and delivered by any of the
Borrower, the Guarantors, or the MTEs, including any Default or Event of Default hereunder;
provided, however, that such notice(s) need not be provided if such default or event of default
does not constitute a Default or an Event of Default and could not reasonably be expected to
subject them to liability in excess of $1,000,000 (as to MFH, MEC, TC Corp., BFGLP, BFRP, or BFG
Investments) or $10,000,000 as to MuniMae.

          5.4.2 Litigation and Judgments. The Borrower and each Guarantor, as the case may be,
will give notice to the Lender in writing, in form and detail satisfactory to the Lender within
five (5) Business Days of becoming aware of any litigation or proceedings threatened in writing
against it or any pending litigation or proceedings to which it is or becomes a party involving a
fully or partially uninsured claim against it which if adversely determined could materially and
adversely affect its financial condition, assets or operations of such entity other than as
disclosed on the Disclosure Schedule. Each Borrower and each Guarantor, as the case may be, will
give notice, in writing, to the Lender, in form and detail reasonably satisfactory to the Lender
within five (5) Business Days of any judgments, final or otherwise, against it in an aggregate
amount in excess of $100,000 as to the Borrower or any MTE or $1,000,000 as to any Guarantor which
is not fully covered by insurance (other than customary deductibles disclosed to and reasonably
acceptable to the Lender).

          5.4.3 Material Adverse Change. The Borrower and each Guarantor will promptly notify
the Lender of any material adverse change which would reasonably be expected to have a material
adverse effect on its business, properties or condition (financial or otherwise).

          5.4.4 Governmental Authorities. The Borrower and each Guarantor will promptly notify
the Lender of all material notices received from any Governmental Authority and shall provide
copies thereof to the Lender promptly after receipt thereof.

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          5.4.5 ERISA. With respect to any Plan, the Borrower or each Guarantor, as the case
may be, shall, or shall cause its Affiliates to, furnish to the Lender, promptly (a) written notice
of the occurrence and its obtaining knowledge of a Reportable Event, (b) a copy of any request for
a waiver of the funding standards or an extension of the amortization periods required under
Section 412 of the Code and Section 302 of ERISA, (c) a copy of any notice of intent to terminate
any funded Plan, (d) notice that the Borrower or such Guarantor, as the case may be, or any
Affiliate will or may incur any liability to or on account of a Plan, and (e) upon the Lender’s
request, a copy of the annual report of each Plan (Form 5500 or comparable form) required to be
filed with the Internal Revenue Service and/or the Department of Labor. Any notice to be provided
to the Lender under this Section shall include a certificate of the chief financial officer of the
Borrower, such Guarantor or such Affiliate, as the case may be, setting forth details as to such
occurrence and the action, if any, which the Borrower, such Guarantor, and/or the Affiliate is
required or proposes to take, together with any notices required or proposed to be filed with or by
the Borrower, and/or any Affiliate, the Pension Benefit Guaranty Corporation, the Internal Revenue
Service, the trustee or the Plan administrator with respect thereto. Prior to the adoption of any
Plan subject to ERISA, the Borrower or a Guarantor, as the case may be, shall notify the Lender of
such adoption and of the vesting and funding schedules and other principal provisions thereof.

          5.4.6 Environmental Laws. If the Borrower or any Guarantor shall (a) receive notice
that any violation of Environmental Laws may have been committed or is about to be committed by the
Borrower, any Guarantor or a general partner of any Property Partnership, (b) receive notice that
any administrative or judicial complaint or order has been filed or is about to be filed against
either the Borrower or any Guarantor alleging a violation of any Environmental Law or requiring the
Borrower or any Guarantor to take any action in connection with the release of toxic or hazardous
wastes, substances or materials into the environment, or (c) receive any notice from a federal,
state, or local governmental agency or private party alleging that either the Borrower or any
Guarantor may be liable or responsible for any costs associated with a response to or cleanup of a
release of toxic or hazardous wastes, substances or materials into the environment or any damages
caused thereby, then the Borrower or such Guarantor, as the case may be, shall provide the Lender
with a copy of such notice within ten (10) days after the Borrower’s or such Guarantor’s, as the
case may be, receipt thereof. Within fifteen (15) days after either the Borrower or such Guarantor
has learned of the enactment or promulgation of any Environmental Law which, to Borrower’s or
Guarantors’ knowledge, may result in any material adverse change in the business, properties or
conditions (financial or otherwise) of the Borrower or such Guarantor or in which the Borrower or
such Guarantor holds a direct or indirect ownership or beneficial interest, the Borrower or such
Guarantor, as the case may be, shall provide the Lender with notice thereof.

     5.5 Inspection. The Borrower and each Guarantor will permit, and shall cause each MTE
to permit, the Lender at the Borrower’s expense, to the extent of the Borrower’s, a MTE’s or
Guarantor’s rights under a Property Partnership’s partnership agreement, to inspect any of its
properties, including, without limitation, books and
records, computer files and tapes and financial records, to examine and make copies of its
books of account and other records and to discuss its affairs, finances and accounts with, and to
be advised as to the same by, its officers and other responsible employees and professional
advisers at such reasonable times and intervals as the Lender may designate after reasonable notice
and during normal business hours; provided,

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however, that as long as no Default or Event of Default
exists, the Borrower and Guarantors shall not be liable for the costs of more than one such
inspection and examination during each calendar quarter. The Lender shall use commercially
reasonable efforts to maintain the confidentiality of the information obtained pursuant to such
inspections and examinations; provided, however, such information may be disclosed (a) the Lender’s
directors, officers, employees, representatives, and attorneys, (b) to the Lender’s independent
third party auditors, and their directors, officers, employees, representatives, and attorneys, (c)
in accordance with any subpoena or court order which the Lender in good faith believes requires
such disclosure, and (f) as the Lender deems necessary in connection with any exercise of the
Lender’ rights and remedies under the Credit Documents.

     5.6 Financial Reporting.

          5.6.1 MuniMae shall provide to the Lender no later than June 30, 2008:

               (a) MuniMae’s restated audited financial statements for 2004 and 2005 and audited financial
statements for 2006; and

               (b)  promptly upon the written request of the Lender therefore, copies of all management
letters of substance and other material reports, if any, which are submitted in connection with
financial audits of MuniMae by its independent accountants.

          5.6.2 The Borrower and each Guarantor (other than MuniMae) shall provide to the Lender no
later than September 30, 2008:

               (a) the Borrower’s and each Guarantor’s (other than MunieMae) federal and state income tax
return;

               (b) for each of MFH, MEC and TC Corp., its income statement, balance sheet and any other
related financial statements, prepared in accordance with GAAP (except as otherwise noted therein)
and audited by a national accounting firm as may be retained from time to time by MuniMae (which
national accounting firm shall be, in the event that MuniMae is not then required to file periodic
reports with the United States Securities and Exchange Commission, reasonably acceptable to the
Lender); and

               (c) for each of MFH, MEC and TC Corp, management-prepared income statements, balance sheets,
and any other related financial statements prepared in accordance with GAAP (subject only to normal
year-end audit adjustments and the absence of footnotes), and similar to those required by clause
(b) above for and as of the end of such period; which financial statements, in the case of MFH and
TC Corp., shall be prepared on a consolidated and consolidating basis.

          5.6.3 The financial statements to be delivered pursuant to Sections 5.6.2(b) and
(c) shall be accompanied by a certification to the Lender by the Borrower’s and each
Guarantor’s
(other than MuniMae) chief financial officer, controller or assistant controller that such
financial statements are accurate and complete in all material respects.

29

 

          5.6.4 The documents required to be delivered pursuant to Section 5.6.1 may be delivered
electronically and if so delivered, shall be deemed to have been delivered on the date on which
such documents are posted on MuniMae’s website; provided that: (a) MuniMae shall deliver paper
copies of such documents to the Lender until a written request to cease delivering paper copies is
given by the Lender, and (b) MuniMae shall notify (which may be by facsimile or electronic mail)
the Lender of the posting of any such documents and provide to the Lender by electronic mail
electronic versions of such documents. MuniMae represents and warrants that all documents and
information delivered to the Lender electronically via access to MuniMae’s website pursuant to this
Section 5.6.4 are true, accurate and complete in all material respects. Notwithstanding
anything contained herein, in every instance MuniMae shall be required to provide paper copies of
the compliance certificates described in Section 5.6.3 to the Lender.

     5.7 Insurance. The Borrower, with respect to Property Partnerships that own or lease
real estate, shall use commercially reasonable efforts to ensure that at all times such Property
Partnerships maintain (directly or through the Property Partnerships) insurance covering such
risks, in such amounts, containing such terms, in such forms, for such periods, and written by such
companies as are set forth in Exhibit 5.7. The Borrower will use its commercially
reasonable efforts to attempt to enforce the Property Partnership’s partnership agreement requiring
each of the Property Partnerships in which it or a MTE made or makes a Direct Investment or
Convertible Loan to be at all times insured in such amounts and against such hazards and
liabilities and for such purposes as are set forth in Exhibit 5.7 annexed hereto. In the
event of failure by the Borrower to provide and maintain insurance as herein provided or to use
commercially reasonable efforts to attempt to enforce, for itself or for a MTE, the Property
Partnership’s partnership agreement in connection with insurance requirements thereunder, the
Lender may, at its option obtain such insurance at customary rates and charges and charge the
amount thereof to the Borrower. The Lender will notify the Borrower that it has obtained such
insurance, provided, however, that the failure of the Lender so to notify the Borrower will in no
way detract from or invalidate the Lender’s rights pursuant to this Section 5.7 to declare
an Event of Default on account of such failure. In the alternative, the Lender may elect to
require that the Borrower immediately repay all Loans made in connection with any Direct
Investments in or Convertible Loans to such Property Partnership. The Borrower promises to pay to
the Lender on demand the amount of any disbursements made by the Lender for such purposes as herein
authorized, and the amount of any such disbursements shall constitute Loans advanced by the Lender
in accordance with the terms of this Agreement. Any such payment not received from the Borrower
shall bear interest at the Interest Rate then accruing. The Lender shall not, by the fact of
approving, disapproving, or accepting any such insurance, incur any liability for the adequacy or
legal sufficiency of insurance contracts, solvency of insurance companies or payment of lawsuits,
and the Borrower and the Guarantors hereby jointly and severally expressly assume full
responsibility therefor and liability if any, thereunder. The Borrower shall furnish the Lender at
the Lender’s request, with certificates of insurance evidencing compliance with the foregoing
insurance provision.

     5.8 Collateral. The Borrower and each Guarantor will, and will cause each MTE to,
duly execute and deliver, or cause to be executed and
delivered, appropriate financing statements and other documents and take all other reasonable
actions requested by the Lender necessary to enable the Lender to maintain continuously perfected
security interests in the Collateral hereunder and under the Credit Documents. The Lender may
inspect the Collateral at any

30

 

reasonable time, wherever located, upon reasonable notice. The
Borrower and each Guarantor will, and will cause each MTE to, pay all taxes and assessments upon
the Collateral or for its use and/or operation prior to the time when any penalties or interest
accrue with respect thereto, or non-payment thereof; provided, however, that, so long as no
distraint, foreclosure sale or other levy upon or transfer with respect to the Collateral or any
part thereof shall have been effected or threatened, and no Event of Default shall have occurred
and be continuing, the Borrower or such Guarantor, as applicable, shall not be required to pay such
taxes and assessments if (a) the amount, applicability or validity thereof is currently being
contested by the Borrower or such Guarantor, as applicable, in good faith by appropriate legal
proceedings, (b) the Borrower or such Guarantor, as applicable, shall have set aside on its books
reserves (segregated to the extent required by GAAP, or, if not applicable, sound accounting
principles and practices) reasonably deemed by the Lender to be adequate with respect thereto, and
(c) the Borrower or such Guarantor, as applicable, shall have provided to the Lender or the
applicable taxing authority a bond or other security of such nature and in such amount as the
Lender reasonably deems sufficient as security for payment thereof.

     5.9 Further Assurances. The Borrower and each Guarantor shall at any time and from
time to time execute and deliver, or cause to be executed and delivered, such further instruments
and take such further actions, or cause to be taken such further actions, as may reasonably be
requested by the Lender, in each case further and more perfectly to effect the purposes of this
Agreement and the other Credit Documents.

     5.10 Intentionally Omitted.

     5.11 No Amendments to Certain Documents. Neither the Borrower nor any Guarantor will
amend, modify or terminate, or agree to the amendment, modification or termination of (a) its
Organizational Documents, (b) the Organizational Documents of (i) any Property Partnership that
received or is receiving Direct Investments or Convertible Loans or (ii) any MTE that received or
is receiving Capital Contributions (prior to satisfaction of the Release Conditions with respect to
such Property Partnership or MTE), or (c) any other document relating to the transactions with
respect to which any Loan is made without the prior written consent of the Lender, except in
connection with amendments which would not have any adverse impact on the Lender, or the Lender’s
interest in any Collateral.

     5.12 Intentionally Omitted.

     5.13 Change of Jurisdiction of Organization; Name Change; Change of Location. No
Borrower nor any Guarantor will, nor will it permit any MTE to, at any time change its jurisdiction
of organization, legal name, form of organization, federal identification number or state
organizational number, without giving prior written notice to the Lender specifying the new
jurisdiction of organization, name, form or number.

     5.14 [Reserved].

     5.15 [Reserved].

     5.16 Conduct of Business.

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          5.16.1 The Borrower and each Guarantor will duly observe and comply with all applicable laws
and all requirements of any governmental authorities relative to its existence, rights and
franchises, to the conduct of its business and to the property and assets owned or managed by it
(except where the failure to observe and comply would not materially and adversely affect the
condition (financial or otherwise), properties, business, or results of the Borrower or any
Guarantor, as the case may be, or the ability of the Borrower or any Guarantor to perform its
Obligations hereunder to the Lender) and will maintain and keep in full force and effect all
licenses and permits necessary to the proper conduct of its business.

          5.16.2 The Borrower and each Guarantor will maintain its existence. The Borrower will remain
or engage in substantially the same business in which it is now engaged.

          5.16.3 The Borrower shall, and shall cause each MTE to, have no assets other than those
explicitly permitted by this Agreement and shall engage in no business other than to serve as a
conduit for funds advanced hereunder and in repayment of such funds and the Co-Funding Amounts,
and, with respect to the Borrower, to make Capital Contributions, Direct Investments and Direct
Convertible Loans, and with respect to a MTE, to make Direct Investments and MTE Convertible Loans,
in the manner provided for in this Agreement.

          5.16.4 The Borrower and the Guarantors shall cause each Property Partnership to own no more
than one Project and to be a single-purpose entity which shall have no assets or liabilities and
conduct no business other than that related to such Project; and cause each Property Partnership
and MTE to provide either in its Organizational Documents or by contract in form and substance
acceptable to the Lender in its sole discretion:

               (a) that the Lender shall have all of the rights of a secured party under the UCC to sell or
retain the equity interests so pledged;

               (b) for the immediate, automatic and unconditional admission of the Lender (or its nominee,
successor, transferee or assignee) as an equity holder of such entity in the event of a foreclosure
upon or other disposition of the equity interests so pledged to the Lender; and

               (c) that with respect to the equity interests in such MTE or Property Partnership, for so long
as any pledge of such interests by the Borrower or MTE to the Lender shall not have been released
in accordance with its terms, (i) such equity interests will not be, and will not become,
“investment property” and will be and will remain “general intangibles” within the meaning of
Article 9 of the UCC, and (ii) any action by any partner or member of such MTE or Property
Partnership to cause any of such equity interests to be deemed to be or to be treated as a
“security” or as “investment property” within the meanings of Article 8 and Article 9,
respectively, of the UCC, shall be void and of no effect unless (A) the Lender has consented to
such action, (B) such equity interests are certificated, and (C) the certificates
evidencing such equity interests are delivered to the Lender, together with assignments
thereof duly executed in blank by the Borrower.

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     5.17 Limitation of Indebtedness

          5.17.1 Except with the prior written consent of all of the Lender, the Borrower and MSLP will
not create, incur, assume or suffer to exist, or in any manner become or be liable directly or
indirectly with respect to, any Indebtedness except for (a) the Obligations and the Co-Funding
Amounts (solely to the extent such Co-Funding Amounts have been loaned to the Borrower in
accordance with the terms of the definition of Co-Funding Amounts set forth in Section
1.1), (b) Indebtedness incurred by MSLP in order to make capital contributions in its capacity
as the “special limited partner” or “administrative limited partner” in any Property Partnership,
and (c) debt included on the consolidated balance sheets of the Borrower solely as a result of the
application of FASB Interpretation No. 46.

          5.17.2 Except with the prior written consent of the Lender, MEC and TC Corp. will not create,
incur, assume or suffer to exist, or in any manner become or be liable directly or indirectly with
respect to any Indebtedness consisting of intercompany obligations owed to MuniMae and its
Subsidiaries, unless the same are subordinated to payment of the Obligations as provided in the
Subordination Agreement.

          5.17.3 No Middle Tier Entity will create, incur, assume or suffer to exist, or in any manner
become or be liable directly or indirectly with respect to any Indebtedness except pursuant to its
respective MTE pledge agreement.

     5.18 ERISA Compliance. Neither the Borrower, any Guarantor, nor any Plan or any
fiduciary thereof or other ERISA Party-in-Interest or ERISA Disqualified Person with respect to any
Plan shall (a) engage in any “prohibited transaction,” (as defined in ERISA and the Code), (b)
incur any unpaid “minimum required contribution” (as defined in Section 430(a) of the Code and
Section 303 of ERISA) whether or not waived, (c) fail to satisfy any additional funding
requirements set forth in Section 412 or 430 of the Code and Section 302 and 303 of ERISA, or (d)
terminate, in whole or in part, any “pension benefit plan” (as defined in Section 3(2) of ERISA) in
a manner which could result in the imposition of a lien on any property of the Borrower or any
Guarantor. Each Plan shall comply in all material respects with ERISA.

     5.19 Intentionally Omitted.

     5.20 Maintenance of Books and Records. The Borrower and each Guarantor will, and will
cause each MTE to, keep adequate books and records of account in which true and complete entries
will be made reflecting all of its business and financial transactions, and such entries will be
made in
accordance with GAAP (except as otherwise disclosed) and applicable law including, without
limitation, laws with respect to questionable, improper or corrupt payments.

     5.21 Use of Proceeds. The Borrower will use the proceeds of the Loans solely to (i)
to fund Capital Contributions, Direct Investments and Direct Convertible Loans, and (ii) provided
there is no Event of Default that occurred and is continuing, upon satisfaction of Release
Conditions with respect to Property Partnership and the conversion of Corporate Property
Partnership to Property Partnership pursuant to Article VII, to repay the Borrower or any Guarantor
for any and all amounts advanced to fund Direct Investments, Capital Contributions or Direct
Convertible Loans to Corporate Property Partnerships from funds other than the proceeds

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of the
Prior Revolving Loan or any Loans. No portion of any Loan shall be used for the purpose of (a)
purchasing or carrying any “margin security” or “margin stock” as such terms are used in
Regulations T, U or X of the Board of Governors of the Federal Reserve System, or (b) paying fees
or charges to developers of any Project (except for fees payable solely with respect to Project
development activity).

     5.22 Transactions with Affiliates.

          5.22.1 The Borrower and each Guarantor will not, directly or indirectly, enter into any
purchase, sale, lease or other transaction with any Affiliate except (a) as would not materially
and adversely affect the condition (financial or otherwise), the properties, business or results of
operations of the Borrower or such Guarantor, (b) as disclosed in the Organizational Documents of a
Property Partnership submitted to the Lender’s counsel for approval prior to the date hereof, or
(c) that certain promissory note, dated on or about July 1, 2003, in the principal face amount of
$120,000,000 made by TC Corp. payable to the order of MuniMae, repayment of which is subordinated
in accordance with the terms of the Subordination Agreement.

          5.22.2 The Borrower and each Guarantor hereby agree that payment and performance of any
obligations under any contract, agreement or arrangement (whether written or oral) now or hereafter
entered into between Borrower on the one hand and any Guarantor or any Affiliate of any Guarantor
on the other hand shall be subordinated to payment and performance of the Obligations. Payment and
performance under such contracts, agreements or arrangements may be made and received in the
ordinary course of business on a current basis as long as no Default or Event of Default has
occurred and is continuing.

     5.23 Environmental Regulations. The Borrower and each Guarantor will comply, and
shall use commercially reasonable efforts to cause the general partner of each Property Partnership
to comply, in all material respects with all federal, state and local statutory or common laws,
regulations, rules, ordinances, permits (including, without limitation, authorizations, approvals,
registrations and licenses) related to the protection of public health, worker safety, the
environment or the management of pollution or any and all oil, petroleum products, waste oil,
hazardous wastes, hazardous substances, toxic substances or hazardous materials (collectively,
“Environmental Laws”) in each and every jurisdiction in which they operate now or in the future,
and will comply or use their commercially reasonable efforts to cause compliance in all material
respects with all such Environmental Laws that may in the future be applicable to them and to the
properties and assets
owned, directly or indirectly, or managed by them, except that neither Borrower nor any
Guarantor shall be required to take any action which could reasonably be expected to subject such
Person to general partner or other liability in respect of an affected Project or Property
Partnership.

     5.24 Fiscal Year. The Borrower, each MTE and each Guarantor shall have a fiscal year
ending on December 31 of each year, and shall not change such fiscal year without the prior written
consent of the Lender, unless a different fiscal year is required by the Code.

     5.25 Investor Contributions. The Borrower shall direct the Investors to pay all cash
capital contributions required to pay all Loans along with all interest, costs, expenses, fees or
other Obligations relating to any of the MTEs and Property Partnerships to be placed with the

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applicable Investment Partnership to the Borrower or if directed by the Borrower to the Lender. In
addition, as such capital contributions are funded the Borrower shall cause such Investment
Partnership to pay the portion of such cash as may be required in order to purchase from the
Borrower all membership interests in MTEs and all limited partnership interests in Property
Partnerships then being transferred by the Borrower to such Investment Partnership. Such cash
shall be in an amount, at a minimum, as is required to (a) repay the then outstanding principal of
all Loans made to or for the benefit or account of each such MTE and Property Partnership, and (b)
pay all outstanding interest, fees, charges, expenses or other Obligations as may accrue to or have
arisen with respect to each such MTE and Property Partnership.

     5.26 Restricted Payments. None of the Borrower or any of the Guarantors will make any
Restricted Payments if at the time of the making of such Restricted Payment, with or without the
making of such Restricted Payment, there shall exist or result Event of Default involving either
(a) the payment of money by the Borrower or a Guarantor, or (b) the breach of any covenants
contained herein.

     5.27 Ownership; Control. Without the prior written approval of the Lender, which
shall not be unreasonably withheld, neither the Borrower nor any Guarantor will cause or permit any
change in the ownership or Control of any such entity (other than MuniMae), or any MTE, except to
the extent that (a) with respect to the Borrower or any Guarantor, following such change MuniMae
retains Control (directly or indirectly) of the Borrower and each such Guarantor, and (b) with
respect to each MTE, the Release Conditions with respect to such MTE have been satisfied.

     5.28 Transfer of Property Partnership Interests. The Borrower will not transfer,
pledge or assign any interest in a MTE and, other than as contemplated in a Property Partnership
Pledge, neither the Borrower nor any MTE will transfer, pledge or assign any interest in a Property
Partnership, or any interest in a Convertible Loan to a Property Partnership, prior to the
satisfaction of Release Conditions with respect thereto.

     5.29 Separate Credit Reliance. The Borrower and each Guarantor acknowledges that the
Lender has entered into the transactions
contemplated by this Agreement, and accepted the Guaranty, in reliance upon Borrower’s, each
MTE’s and each Guarantor’s separate and distinct corporate existences and their separate and
distinct operations, and, accordingly, the separate credit of Borrower, each MTE and each
Guarantor. During the term of this Agreement, the Borrower’s and each MTE’s Organizational
Documents shall contain separateness covenants.

     5.30 [Reserved].

     5.31 Repayment.

          5.31.1 The Borrower and the Guarantors shall deposit, and cause the deposit by each Middle
Tier Entity, Property Partnership, Investment Partnership, Investor or other source of repayment,
of all payments and repayments of Capital Contributions, Direct Investments and Convertible Loans,
and all other Obligations of the Borrower with Lender. To the extent that any such payments or
repayments are received directly by the Borrower or any Guarantor, the same shall be delivered
immediately to the Lender in the form received, duly endorsed to the

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Lender, if necessary, and for
application by the Lender in accordance with this Agreement. Until so delivered, the Borrower and
each Guarantor acknowledges that it holds such payments and repayments in trust for the benefit of
the Lender and shall keep such payments and repayments segregated from other funds and property of
the Borrower or each Guarantor.

          5.31.2 MuniMae shall continue to maintain a cash management system and a web-based fixed
income trading system, each of which shall be reasonably acceptable to the Lender.

          5.32 Special Limited Partner. MSLP shall be the sole “special limited partner”,
“administrative limited partner”, “special member”, or “special administrative member”, as
applicable, in any Property Partnership receiving a Direct Investment from the Borrower or a MTE.

ARTICLE VI: DEFAULTS AND REMEDIES

     6.1 Events of Default. Each of the following events is hereby defined as, declared to
be and shall constitute an “Event of Default”; and “Default” means any act, omission, occurrence or
circumstance that, with the passage of time or notice, or both, would be an Event of Default:

          6.1.1 Failure by the Borrower to either make any payment when due in respect of its Payment
Obligations when required, failure continues uncured for a period of 5 days; or

          6.1.2 Failure by the Borrower or any Guarantor to perform or observe (a) any of the terms,
covenants, conditions or provisions of Sections 5.2, 5.4, 5.9 through 5.11, 5.13, 5.16 (except
5.16.1), 5.17, 5.21, 5.22, and 5.24 through 5.34, (b) any Obligation with respect to providing
Co-Funding Amounts, or (c) material failure to comply Section 5.31 (for which there shall
be no cure period) and with obligations relating to Co-Funding Amounts (for which there shall be a
one Business Day cure period), such failure continues uncured for 10 days; or

          6.1.3 Failure by the Borrower or any Guarantor to perform or observe in any material respect
(as determined by the Lender in its unrestricted discretion) any of the terms, covenants,
conditions or provisions of Sections 5.1, 5.3, 5.5 through 5.8, 5.16.1, 5.18, 5.20 and 5.23
for a period of 30 days after the Borrower or such Guarantor becomes aware (whether through notice
from the Lender or otherwise) of a breach of such Section; or

          6.1.4 Failure by the Borrower or any Guarantor to observe and perform in any material respect
(as determined by the Lender in its unrestricted discretion) any other covenant, condition or
agreement on its part to be observed or performed under this Agreement for a period of 30 days
after written notice specifying such failure and requesting that it be remedied is given to such
party by the Lender; provided, however, that if (a) the failure is capable of being cured but
cannot reasonably be cured within such 30 days, (b) the failure has not and will not result in the
imposition of any liens on the Collateral, and (c) the Borrower has commenced said cure within such
30 days and is diligently prosecuting the same to completion, then said 30 day period shall be
extended for such additional time as reasonably necessary to complete the cure but not more than an
additional 30 days; or

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          6.1.5 Any of the representations, warranties or certifications of any of the Borrower, the
Guarantors, or the MTEs in this Agreement or the other Credit Documents proves to have been false
or misleading in any material respect when made or deemed to be made or re-made; or

          6.1.6 The dissolution or liquidation of any of the Borrower and the Guarantors or the failure
by any of the Borrower and the Guarantors promptly to obtain the staying or lifting of any
execution, garnishment or attachment if such circumstances will, in the judgment of the Lender,
materially impair its ability to satisfy its Payment Obligations; or

          6.1.7 The Insolvency of any of the Borrower and the Guarantors as evidenced by:

               (a) its commencement of a voluntary case under Title 11 of the United States Bankruptcy Code,
or its authorizing, by appropriate proceedings of its board of directors or other governing body,
the commencement of such a voluntary case;

               (b) its filing an answer or other pleading admitting or failing to deny the material
allegations of a petition filed against it commencing an involuntary case under said Title 11, or
seeking, consenting to or acquiescing in the relief therein provided, or its failing to controvert
timely the material allegations of any such petition;

               (c) the entry of an order for relief against it in any involuntary case commenced under said
Title 11 unless the same is dismissed with prejudice within ninety (90) days of the entry thereof;

               (d) its seeking relief as a debtor under any applicable law, other than said Title 11, of any
jurisdiction relating to the liquidation or reorganization of debtors or to the modification or
alteration of the rights of creditors, or its consenting to or acquiescing in such relief;

               (e) entry of an order by a court of competent jurisdiction (i) finding it to be bankrupt or
insolvent, or (ii) ordering or approving its liquidation, reorganization or any modification or
alteration of the rights of its creditors;

               (f) the entry of an involuntary order by a court of competent jurisdiction assuming custody
of, or appointing a receiver or other custodian for, all or a substantial part of its property that
remains undischarged or unstayed for more than 30 days; or

               (g) its making an assignment for the benefit of, or entering into a composition with, its
creditors, or appointing or consenting to the appointment of a receiver or other custodian for all
or a substantial part of its property; or

          6.1.8 A breach in any material respect by any of the Borrower, any Middle Tier Entity or any
of the Guarantors of: (a) any of the provisions of any Credit Document other than this Agreement
(including, without limitation, of the covenants contained in any Guaranty), which breach is not
remedied within the applicable cure period, if any, set forth in such other Credit Document; or (b)
any other agreement evidencing any Indebtedness of the Borrower or an

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MTE to any third party
(including, without limitation, Borrower’s or a MTE’s obligation to any Property Partnership
pursuant to such Property Partnership’s Organizational Document or any Convertible Loan Agreement),
not remedied within the applicable cure period, if any, set forth in such other agreement,
provided, however, any alleged breach of such obligation shall not constitute an Event of Default
hereunder in the event that the Borrower, for itself or on behalf of a MTE, is contesting such
obligation in good faith, has established and maintains adequate reserves for the performance or
payment of such obligation in accordance with GAAP, and the Borrower provides prompt written notice
to the Lender of such alleged breach); or

          6.1.9 Any material adverse change from the date hereof in the financial condition or results
of operations of the Borrower or any Guarantor which would have a material adverse impact on the
Lender or the Collateral granted to the Lender in connection with the Obligations; or

          6.1.10 Any material covenant, agreement or obligation of the Borrower, any Guarantor or any
MTE contained in or evidenced by any Security Document relating to this Agreement shall cease to be
legal, valid, binding or enforceable in accordance with the terms thereof, the effect of which has
a material adverse impact on the Borrower’s, Guarantor’s or any MTE’s ability to perform its
obligations thereunder or on the value of, or rights of the Lender in, the Collateral; or

          6.1.11 Any Credit Document or any provision thereof shall for any reason cease to be valid and
binding on any party thereto or any party bound thereby, or any party to or bound by any Credit
Document shall so state in writing or shall state that any Credit Document or any provision thereof
is terminated or that any such party has no or no further liability or obligation thereunder; or

          6.1.12 A judgment, monetary default or breach shall have occurred (and be continuing beyond
any applicable cure period) in the payment or performance of any obligation of any of MEC, MFH, TC
Corp., BFGLP, BFRP or BFG Investments that exceeds, in the
aggregate, $1,000,000; provided, that, entry of a judgment shall not constitute an Event of
Default (a) unless there is a period of 30 consecutive days during which a stay of enforcement of
such judgment, by reason of a pending appeal or otherwise, is not in effect, or (b) if such
judgment is covered by insurance and the insurer has confirmed coverage in writing to the Lender;
or

          6.1.13 A judgment, monetary default or breach shall have occurred (and be continuing beyond
any applicable cure period) in the payment or performance of any obligation of MuniMae, that
exceeds in the aggregate $10,000,000; provided, that, entry of a judgment shall not constitute an
Event of Default (a) unless there is a period of 30 consecutive days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect, or (b)
if such judgment is covered by insurance and the insurer has confirmed coverage in writing to the
Lender; or

          6.1.14 Such occurrences or circumstances as are referred to elsewhere in this Agreement as
Events of Default, including, without limitation, in Sections 2.1.1, and 4.18.

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     6.2 Remedies. Upon the occurrence of an Event of Default:

          6.2.1 The Lender may, in its unrestricted discretion do any of the following: (a) by notice
in writing to the Borrower, declare that an Event of Default has occurred, or (b) declare all
amounts owing by the Borrower with respect to the Loans to be immediately due and payable, and;
provided, that in the event of any Event of Default specified in Section 6.1.7 hereof, all amounts
owing by the Borrower with respect to this Agreement shall become immediately and automatically due
and payable.

          6.2.2 the Lender shall at the written request do any of the following: (a) with or without
notice (except as specifically provided otherwise herein or by applicable law) to the Borrower or
the Guarantors, foreclose upon and liquidate the Collateral in accordance with the terms of the
Security Documents, (b) terminate any asset management agreements or other contracts between the
Borrower on the one hand and any Guarantor or other Affiliate of the Borrower on the other hand,
and (c) with or without notice (except as specifically provided otherwise herein or by applicable
law) to the Borrower or the Guarantors, pursue any other remedy under this Agreement, at law or
otherwise.

          6.2.3 The Lender’s rights, powers and remedies specified herein are cumulative and are in
addition to those otherwise created or existing by law or agreement.

          6.2.4. The Lender shall have all rights and remedies of a creditor under the UCC.

ARTICLE VII: CONVERSION OF CORPORATE PROPERTY PARTNERSHIPS TO

PROPERTY PARTNERSHIPS

     7.1. Direct Investment, Capital Contribution and Direct Convertible Loans to Corporate
Property Partnerships. Upon satisfaction of the
Release Conditions with respect to a Property Partnership and release of such Property Partnership
as Collateral for the Obligations secured hereunder, any Borrower may submit a written request to
the Lender to make a Loan for the purpose of repaying to any Borrower or Guarantor or any Affiliate
or Subsidiary of any Borrower or Guarantor amounts paid by any Borrower, Guarantor or any Affiliate
or Subsidiary of any Borrower or Guarantor to fund a Direct Investment, Capital Contribution or
Direct Convertible Loan for a Corporate Property Partnership. The Lender shall, in its sole and
absolute discretion, approve or disapprove any such written request from the Borrower submitted for
the purposes provided in this Section 7.1. Approval by the Lender of a written request from the
Borrower to reimburse the Borrower, any Guarantor or any of their Affiliates or subsidiaries for
amounts paid (excluding Co-Funding amounts that would have been paid relative to such Corporate
Property Partnership) as of the date of such written request to fund a Direct Investment, Capital
Contribution or Direct Convertible Loan for a Corporate Property Partnership shall be subject to
the prior receipt and approval by Lender of the following:

          (a) copy of all Organizational Documents relative to such Corporate Property Partnership that
received such Direct Investment, Capital Contribution or Direct Convertible Loan;

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          (b) any and all other documents, certificates, statements or other information pertaining to
the Direct Investment, Capital Contribution, Direct Convertible Loan, such Corporate Property
Partnership or the MTE that funded the Capital Contribution for such Corporate Property Partnership
as reasonably requested by Lender.

     7.2 Conversion of Corporate Property Partnerships. Upon approval of a written request
submitted pursuant to Section 7.1 hereof by the Lender and funding of a Loan to repay amounts paid
as of the date of the Borrower’s written request to fund Direct Investments, Capital Contributions
or Direct Convertible Loans to a particular Corporate Property Partnership, such particular
Corporate Property Partnership shall be deemed to be converted from a Corporate Property
Partnership and shall thereafter be constituted as a Property Partnership.

     7.3 No Additional Funding Obligations. Notwithstanding anything to the contrary
contained herein, the approval of a written request from the Borrower submitted pursuant to Section
7.1 and subsequent funding of a Loan in connection therewith shall not in any way obligate the
Lender to fund any additional Loans with respect to such converted Corporate Property Partnership
unless agreed to by Lender in its sole and absolute discretion.

     7.4 Release of Corporate Property Partnership as Collateral. At the request of the
Borrower and provided there is no Event of Default that has occurred and is continuing, a
particular Corporate Property Partnership that has not otherwise converted to a Property
Partnership pursuant to Section 7.1 may be released as Collateral for the Obligations, provided the
Maximum Amount at such time shall not exceed the amount equal to 50% of the Collateral Value after
giving effect to such Corporate Property Partnership as collateral.

ARTICLE VIII: MISCELLANEOUS

     8.1 Amendments and Waivers. The Lender may exercise its rights and remedies under this
Agreement, the Note and the Credit Documents without resorting or regard to other interests or
sources of reimbursement. The Lender shall not be deemed to have waived any of such rights or
remedies unless such waiver be in writing and signed by the Lender. No delay or omission on the
part of the Lender in exercising any of such rights or remedies shall operate as a waiver of such
right or any other right. A waiver on any one occasion shall not be construed as a bar to or
waiver of any right on any future occasion. All such rights and remedies shall be cumulative and
may be exercised separately or concurrently. No amendments or modifications of this Agreement
shall be valid unless in writing and signed by all parties to this Agreement.

     8.2 CONTROLLING LAW. THIS AGREEMENT (REGARDLESS OF ANY CONTRARY PROVISION IN ANY SUCH
DOCUMENT, EXCEPT TO THE EXTENT ANY PERSON OTHER THAN THE BORROWER, THE GUARANTORS, OR THE LENDER IS
A PARTY THERETO) SHALL BE DEEMED TO CONSTITUTE CONTRACTS MADE UNDER THE LAWS OF THE STATE OF
MARYLAND, AND SHALL, AS TO MATTERS NOT GOVERNED BY THE UNIFORM CUSTOMS, BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF MARYLAND.

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     8.3 Notices. Except as otherwise expressly provided in this Agreement, all notices
and other communications made or required to be given pursuant to this Agreement or the other
Credit Documents shall be in writing and shall be delivered in hand, mailed by United States
registered or certified first-class mail, postage prepaid, return receipt requested, sent by
recognized overnight carrier or sent by facsimile (receipt confirmed), addressed as follows:

          8.3.1 if to the Borrower or any Guarantor, at the addresses set forth in Section 4.1 of the
Disclosure Schedule, Attention: Chris Levey — (facsimile: 410-727-5387) or at such other address
for notice as the Borrower or any Guarantor shall last have furnished in writing to the Person
giving the notice, with a copy to Stephen A. Goldberg, Esq., Gallagher Evelius & Jones LLP, 218
North Charles Street, Baltimore, MD 21201 (facsimile: 410-837-3085); and

          8.3.2 if to the Lender 621 East Pratt Street, 3rd Floor, Baltimore, Maryland 21202,
Attention: Paul Bernard (or such other address for notice as the shall last have furnished in
writing to the Person giving the notice).

     Any such notice or demand shall be deemed to have been duly given or made and to have become
effective (a) if delivered by hand to an officer of the party to which it is directed at the time
of the receipt thereof by such officer, (b) if sent by recognized overnight carrier or by
registered or certified first-class mail, postage prepaid, upon the date of first attempted
delivery, as shown on the return receipt therefor or the returned item itself, or (c) if sent by
facsimile at the time of the dispatch thereof with machine-generated confirmation of transmission,
if in normal
business hours in the country of receipt, or otherwise at the opening of business on the
following Business Day.

     8.4 Headings. Section headings in this Agreement are included herein for convenience
of reference only and shall not constitute a part of this Agreement for any other purpose.

     8.5 Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which taken together shall constitute one and the same
instrument.

     8.6 Indemnification.

          8.6.1 The Borrower and the Guarantors jointly and severally agree to indemnify and hold
harmless the Lender and its Affiliates and each of their respective officers, shareholders,
directors, employees, advisors and representatives (each, an “Indemnified Party”) from and
against any and all claims, damages, losses, liabilities and expenses (including, without
limitation, reasonable fees and disbursements of counsel) that may be incurred by or asserted or
awarded against any Indemnified Party, in each case arising out of or in connection with or
relating to any investigation, litigation or proceeding or the preparation of any defense with
respect thereto, arising out of or in connection with or relating to the Credit Documents or the
transactions contemplated hereby or thereby, or any use made or proposed to be made with the
proceeds of the Loans hereunder, whether or not such investigation, litigation or proceeding is
brought by the Borrower, any of its respective equity holders or creditors, an Indemnified Party or
any other person, or an Indemnified Party is otherwise a party thereto and whether or not the

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transactions contemplated hereby are consummated, except to the extent such claim, damage, loss,
liability or expense is found in a final, nonappealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct.

          8.6.2 Each of the Borrower and the Guarantors further agree that no Indemnified Party shall
have any liability (whether direct or indirect, in contract, tort or otherwise) to the Borrower,
any Guarantor or any of their respective equity holders or creditors for or in connection with the
transactions contemplated hereby, except to the extent such liability is found in a final
nonappealable judgment by a court of competent jurisdiction to have resulted from such Indemnified
Party’s gross negligence or willful misconduct, or, in the case of any Indemnified Party which is a
party to any Credit Document, such Indemnified Party’s breach of such Credit Document.

          8.6.3 In case any claim is asserted or any action or proceeding is brought against an
Indemnified Party, or the Lender shall promptly notify the Borrower of such claim, action or
proceeding and send to the Borrower copies of all documents, pleadings or other items relating
thereto (provided, however, that the Lender’s failure to give any such notice shall not relieve the
Borrower or the Guarantors of any obligations, liabilities or duties hereunder unless, and except
to the extent, such failure to give such notice materially and adversely affects the Borrower’s and
the Guarantors’ ability, using their own respective commercially reasonable efforts, to pay,
perform or otherwise discharge any such obligation, liability or duty), and the Borrower and the
Guarantors shall resist, settle or defend with counsel reasonably acceptable to the Lender
such claim, action or proceeding. If, within ten days of its receipt of such notice, the Borrower
and the Guarantors do not commence and continue diligently to prosecute the defense of such claim,
action or proceeding, the Lender may retain counsel to represent it in such defense and the
reasonable fees and expenses of the Lender’s respective counsel shall be deemed to be a necessary
expense for the purpose of this Section 8.6. Subject to the foregoing, the Lender may
cooperate and join with the Borrower and the Guarantors, at the expense of the Borrower and the
Guarantors, as may be required in connection with any action taken or defended by the Borrower or
the Guarantors.

     8.7 [Reserved].

     8.8 Costs and Expenses. The Borrower and the Guarantors shall pay on demand all
expenses of the Lender in connection with the preparation, administration, assignment (but not
participation), default, collection, waiver or amendment of any terms of this Agreement, or in
connection with the Lender’s exercise, preservation or enforcement of any of its rights, remedies
or options hereunder, including, without limitation, reasonable fees and expenses of outside legal
counsel, accounting, consulting, brokerage or other similar professional fees or expenses, any
reasonable fees and expenses associated with travel or other costs relating to any appraisals or
examinations conducted in connection with the loan or any Collateral therefore and the amount of
all such expenses shall, until paid, bear interest at the Default Rate and be an obligation secured
by any Collateral. In addition to the foregoing, the Borrower and the Guarantors shall pay any and
all filing fees and other taxes and fees payable or determined to be payable in connection with the
granting or releasing of liens upon Collateral.

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     8.9 Severability. In the event any provision of this Agreement or any other Credit
Document shall for any reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other term or provision hereof or
thereof, and this Agreement and the other Credit Documents shall be interpreted and construed as if
such provision, to the extent the same shall have been invalid, illegal or unenforceable, had never
been contained herein or therein. The parties hereto agree that they will negotiate in good faith
to replace any provision so held invalid, illegal or unenforceable with a valid provision which is
as similar as possible in substance to the invalid, illegal or unenforceable provision.

     8.10 Continuing Obligation; Recourse; Assignment; Survival.

          8.10.1 Each of this Agreement and all other Credit Documents is a continuing obligation and
shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and
their respective successors, transferees and assigns; provided that none of the Borrower or the
Guarantors may assign or delegate all or any part of this Agreement or any other Credit Document
without the prior written consent of the Lender. The Lender may not assign all or any portion of
its rights hereunder without the prior written consent of the Borrower and Guarantors.

          8.10.2 The Lender may furnish any information concerning the Borrower in its possession from
time to time to prospective Assignees, provided that the Lender shall require any such prospective
Assignees to agree in writing to maintain the confidentiality of such information. The Lender
agrees to maintain the confidentiality of all information pertaining to the Borrowers, Guarantors,
Property Partnership and all other matters contemplated under this Agreement.

          8.10.3 All representations and warranties of the Borrower and the Guarantors contained herein
shall survive the making of this Agreement. All covenants and agreements of the Borrower and the
Guarantors contained herein shall continue in full force and effect from and after the date hereof
until payment and performance in full of all the Obligations. The agreements and obligations of
the Borrower pursuant to Sections 8.6 and 8.8 shall survive the termination of this
Agreement.

     8.11 Compliance with Usury Laws. All agreements between the Borrower, any Guarantor,
and the Lender are hereby expressly limited so that in no contingency or event whatsoever, whether
by reason of acceleration of maturity of the indebtedness evidenced hereby or otherwise, shall the
amount paid or agreed to be paid to the Lender for the use or the forbearance of the indebtedness
evidenced hereby exceed the maximum permissible under applicable law. As used herein, the term
“applicable law” shall mean the law in effect as of the date hereof, provided,
however, that in the event there is a change in the law which results in a higher
permissible rate of interest, then the Note shall be governed by such new law as of its effective
date. In this regard, it is expressly agreed that it is the intent of Borrower, the Guarantors,
and the Lender in the execution, delivery and acceptance of the Note to contract in strict
compliance with the laws of the State of Maryland from time to time in effect. If, under or from
any circumstances whatsoever, fulfillment of any provision hereof or of any of the Security
Documents at the time performance of such provision shall be due, shall involve transcending the
limit of validity prescribed by applicable law, then the obligation to be fulfilled shall

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automatically be reduced to the limit of such validity, and if under or from any circumstances
whatsoever the Lender should ever receive as interest an amount which would exceed the highest
lawful rate, such amount which would be excessive interest shall be applied to the reduction of the
principal balance evidenced hereby and not to the payment of interest. This provision shall
control every other provision of all Credit Documents between or among the Borrower, a Guarantor,
and the Lender.

     8.12 Replacement Document. Upon receipt of an affidavit of an officer of the Lender
as to the loss, theft, destruction or mutilation of the Note or any other Credit Document which is
not of public record, and, in the case of any such loss, theft, destruction or mutilation, upon
surrender and cancellation of the Note or other Credit Document, the applicable Borrower or
Guarantor will issue, in lieu thereof, a replacement Note or other Credit Document in the same
principal amount thereof and otherwise of like tenor.

     8.13 Setoff. The Borrower and Guarantors hereby grant to the Lender a continuing
lien, security interest and right of setoff as security for all liabilities and obligations to the
Lender and the Lender, whether now existing or hereafter arising, upon and against all deposits,
credits, collateral and property, now or hereafter in the
possession, custody, safekeeping or control of the Lender and its successors and assigns. At
any time, without demand or notice (any such notice being expressly waived by the Borrower and such
Guarantors), the Lender may set off the same or any part thereof and apply the same to any
liability or obligation of Borrower or such Guarantors even though unmatured and regardless of the
adequacy of any other collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE THE
LENDER TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE
LOAN, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER
PROPERTY OF A BORROWER OR SUCH GUARANTOR, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY
WAIVED.

     8.14 Investment Securities. The Lender may transfer any equity interests which it
holds as Collateral into its name or that of its nominee and may receive the income and any
distributions thereon and hold the same as Collateral for the Obligations, or apply the same to any
Obligation, only if an Event of Default has occurred and is outstanding.

     8.15 Entire Agreement. This Agreement, and the Exhibits and Disclosure Schedule (each
of which is incorporated herein by reference), the Credit Documents and the agreements, writings,
instruments and certificates contemplated hereby and thereby are intended by the parties as the
final, complete and exclusive statement of the transactions evidenced by this Agreement. All prior
or contemporaneous promises, agreements and understandings, whether oral or written, are deemed to
be superceded by this Agreement, and no party is relying on any promise, agreement or understanding
not set forth in this Agreement or described in this Section.

     8.16 WAIVER OF JURY TRIAL; VENUE.

     8.16.1 THE BORROWER AND THE GUARANTORS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY
WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR
IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENTS CONTEMPLATED TO BE EXECUTED IN
CONNECTION HEREWITH OR ANY COURSE

44

 

OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR
WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT LIMITATION, ANY COURSE OF CONDUCT, COURSE OF
DEALINGS, STATEMENTS OR ACTIONS OF THE LENDER RELATING TO THE ADMINISTRATION OF THE LOANS OR
ENFORCEMENT OF THE CREDIT DOCUMENTS. NONE OF THE BORROWER OR THE GUARANTORS WILL SEEK TO
CONSOLIDATE ANY SUCH ACTION, IN WHICH A JURY TRIAL HAS BEEN WAIVED, WITH ANY OTHER ACTION IN WHICH
A JURY TRIAL CANNOT OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, BORROWER HEREBY
WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE
OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES.

     8.16.2 ANY COURT PROCEEDINGS RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENTS
SHALL BE BROUGHT EXCLUSIVELY IN THE COURTS 
OF THE STATE OF MARYLAND (OR THE FEDERAL COURTS LOCATED THEREIN) OR THE COURTS OF THE
STATE OF MICHIGAN. NOTWITHSTANDING THE FOREGOING FORUM DESIGNATION, EACH OF THE BORROWER AND THE
GUARANTORS AGREES THAT THE LENDER SHALL HAVE THE RIGHT TO PROCEED AGAINST EACH OF THEM OR THEIR
RESPECTIVE PROPERTY IN A COURT IN ANY LOCATION TO ENABLE THE LENDER TO (1) OBTAIN PERSONAL
JURISDICTION OVER ANY OF THEM, (2) REALIZE ON ANY OF THE COLLATERAL OR (3) IN ORDER TO ENFORCE A
JUDGMENT OR OTHER COURT ORDER ENTERED IN FAVOR OF THE LENDER. EACH OF THE BORROWER AND THE
GUARANTORS WAIVES ANY OBJECTION THAT IT MAY HAVE TO THE VENUE AND LOCATION OF THE COURT IN WHICH
THE LENDER HAS COMMENCED ANY PROCEEDING.

     8.16.3 WITHOUT PREJUDICING THEIR RIGHTS TO ASSERT SUCH COUNTERCLAIMS IN ANY OTHER
CONTEXT, EACH OF THE BORROWER AND THE GUARANTORS FURTHER AGREES THAT IT WILL NOT ASSERT ANY
PERMISSIVE COUNTERCLAIMS IN ANY PROCEEDING BROUGHT BY THE LENDER TO REALIZE ON ANY COLLATERAL OR
OTHER SECURITY FOR THE OBLIGATIONS OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE
LENDER. 

     8.16.4 THE PROVISIONS OF THIS SECTION 8.16 HAVE BEEN FULLY DISCUSSED BY THE
BORROWER, THE GUARANTORS AND THE LENDER AND THE PROVISIONS HEREOF SHALL BE SUBJECT TO NO
EXCEPTIONS. THE BORROWER AND GUARANTORS CERTIFY THAT NO REPRESENTATIVE, LENDER OR ATTORNEY OF THE
LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE LENDER WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND AGREEMENTS. THE FOREGOING WAIVERS AND
AGREEMENTS CONSTITUTE A MATERIAL INDUCEMENT FOR THE LENDER TO ENTER INTO THIS AGREEMENT. 

(Signature Pages Follow)

45

 

          IN WITNESS WHEREOF, the undersigned have duly executed this Loan Agreement under seal as of
the date first set forth above.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	BORROWER:	 	MMA FINANCIAL WAREHOUSING, LLC	 	 
	 	 	 	 	By:	 	MMA Equity Corporation, its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Gary A. Mentesana
	 	(SEAL)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Printed Name and Title)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	MMA FINANCIAL BOND WAREHOUSING, LLC	 	 
	 	 	 	 	By:	 	MMA Equity Corporation, its managing member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Gary A. Mentesana
	 	(SEAL)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Printed Name and Title)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	GUARANTORS:	 	MUNICIPAL MORTGAGE & EQUITY, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Gary A. Mentesana
	 	(SEAL)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Printed Name and Title)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	MMA FINANCIAL HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Gary A. Mentesana
	 	(SEAL)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Printed Name and Title)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	MMA EQUITY CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Gary A. Mentesana
	 	(SEAL)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Printed Name and Title)
	 	 

(Signature Page to Loan Agreement)

S-1

 

	 	 	 	 	 	 	 	 	 	 	 
	
GUARANTORS (continued):
	 	MMA FINANCIAL TC CORP.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Gary A. Mentesana
	 	(SEAL)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Printed Name and Title)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	MMA FINANCIAL BFGLP, LLC	 	 
	 	 	 	 	By:	 	MMA Financial TC Corp., its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Gary A. Mentesana
	 	(SEAL)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Printed Name and Title)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	MMA FINANCIAL BFRP, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Gary A. Mentesana
	 	(SEAL)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Printed Name and Title)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	MMA FINANCIAL BFG INVESTMENTS, LLC	 	 
	 	 	 	 	By:	 	MMA Financial TC Corp., its managing member	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Gary A. Mentesana
	 	(SEAL)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Printed Name and Title)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Gary A. Mentesana
	 	(SEAL)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Printed Name and Title)
	 	 

(Signature Page to Loan Agreement — con’t)

S-2

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	MMA CONSTRUCTION FINANCE LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Gary A. Mentesana
	 	(SEAL)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Signature)
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Executive Vice President	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	(Printed Name and Title)
	 	 

(Signature Page to Loan Agreement — con’t)

S-3

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	MMA MULTIFAMILY EQUITY REIT	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Earl Cole
	 	(SEAL)	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Earl Cole	 	 	 	 
	 

	 	 	 	 	 	Title: Executive Vice President	 	 	 	 

(Signature Page to Loan Agreement — con’t)

S-4

 

SCHEDULE A

I. Borrower:

MMA Financial Warehousing, LLC, a Maryland limited liability company (“SPE I”),

MMA Financial Bond Warehousing, LLC, a Maryland limited liability company (“SPE II”), and

(SPE I and SPE II are individually, and collectively, jointly and severally referred to as the
“Borrower”).

II. Guarantors:

Municipal Mortgage & Equity, LLC, a Delaware limited liability company (“MuniMae”),

MMA Financial Holdings Inc., a Florida corporation (“MFH”),

MMA Equity Corporation, a Florida corporation (“MEC”),

MMA Financial TC Corp., a Delaware corporation (“TC Corp.”),

MMA Financial BFGLP, LLC, a Maryland limited liability Company (“BFGLP”),

MMA Financial BFRP Inc., a Delaware corporation (“BFRP”),

MMA Financial BFG Investments LLC, a Delaware limited liability company (“BFG Investments”), and

MMA Special Limited Partner, Inc., a Florida corporation (“MSLP”)

MMA Construction Finance, LLC, a Maryland limited liability company (“MMCF”)

(MuniMae, MFH, MEC, MSLP, TC Corp., BFGLP, BFRP, MMCF and BFG Investments are each referred to as a
“Guarantors”)

A-1

 

SCHEDULE B

     1. List of Property Partnerships

	 	 	 
	Property Partnership Name	 	Project Name
	1460 House Limited Partnership

	 	1460 House
	9 May Street Limited Partnership

	 	9 May Street
	Boricua Village Associates A-2, L.P.

	 	Boricua Village — Building A-2
	Capitol Green Apartments, LLC

	 	Capitol Green
	Center Court I, LLC

	 	Center Court
	Fox Hill Housing II, LP

	 	Fox Hill — Phase II
	HART III Housing Partnership, L.P.

	 	Hart — Phase III
	Inwood Crossings, LP

	 	Inwood Crossings
	SP Jefferson Lakes I Limited Partnership

	 	Jefferson Lakes
	Nellie Reynolds Gardens, L.P.

	 	Nellie Reynolds Gardens
	Oak Ridge Townhouses Partnership, L.P.

	 	Oak Ridge Town Homes
	Olmsted Green Rental I LLC

	 	Olmsted Green — Phase I
	Park Ridge at Texarkana, Limited Partnership

	 	Park Ridge at Texarkana
	Parkside Terrace Development LLC

	 	Parkside Terrace
	Jackson Place 2006, L.P.

	 	Providence Place (Jackson Place)
	Sabine
Pointe Subdivision, a Louisiana  Partnership in Commendam
	 	Sabine Pointe
	Valley View III/Prescott Valley, LP

	 	Valley View III
	The
Vineyards at Eldorado, Limited  Partnership
	 	The Vineyards at El Dorado
	CIC Natomas, L.P.

	 	Willow Glen Apartments (CIC Natomas)
	WV Apartments, L.P.

	 	Wilson Village
	Cedar
Sinai Park Clay Tower Apartments  Limited Partnership
	 	Clay Tower

2. List of Corporate Property Partnerships

	 	 	 
	Property Partnership Name	 	Project Name
	MESA RHP Partners, L.P.

	 	Harbor Tower (MESA RHF)
	Ashton Bridge Creek, LP

	 	Ashton Bridge Creek
	Heritage Park Apartments Roseville, LP

	 	Heritage Park
	Ashton Merrimac, LP

	 	Ashton Merrimac Village
	New Braunfels 2 Housing, L.P.

	 	New Braunfels
	1026 Constance, LLC

	 	Nine 27 (1026 Constance)
	Plainfield Senior Citizens Housing, L.P.

	 	Plainfield Tower West
	LGD Rental II, LLC

	 	River Garden II (LGD Rental)

B-1

 

	 	 	 
	Property Partnership Name	 	Project Name
	Olympic and Sound View LLC

	 	Olympic & Sound View
	Sharp Road, LLC

	 	Sharp Road
	Golden Acres Redevelopment, Ltd.

	 	Golden Square
	Bayou Place Subdivision of Shreveport, A
Louisiana Partnership in Commendam-Louisiana

	 	Bayou Place
	St. Aidan’s LLC

	 	St. Aidans

3. Additional Collateral Project

	 	 	 
	Property Partnership Name	 	Project Name
	1205 North Seventh, L.L.C.

	 	Neighborhood Gardens

B-2

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