Laserfiche WebLink
(d) Pavments After Senior Loan Default or Bankniptcy. <br />(i) Immediately upon Subordinate Lender's receipt of Notice or actual <br />knowledge of a Senior Mortgage Default, Subordinate Lender will not <br />accept any payments of the Subordinate Indebtedness, and the provisions <br />of Section 3(d) of this Agreement will apply. <br />(ii) If Subordinate Lender receives any of the following, whether voluntarily <br />or by action of law, after a Senior Mortgage Default of which Subordinate <br />Lender has actual knowledge (or is deemed to have actual knowledge as <br />provided in Section 4(c)) or has been given Notice, such will be received <br />and held in trust for Senior Lender: <br />(A) Any payment, property, or asset of any kind or in any form in <br />connection with the Subordinate Indebtedness. <br />(B) Any proceeds from any Enforcement Action. <br />(C) Any payment, property, or asset in or in connection with any <br />Bankruptcy Proceeding. <br />(iii) Subordinate Lender will promptly remit, in kind and properly endorsed as <br />necessary, all such payments, properties, and assets described in Section <br />3(d)(ii) to Senior Lender, Senior Lender will apply any payment, asset, or <br />property so received from Subordinate Lender to the Senior Indebtedness <br />in such order, amount (with respect to any asset or property other than <br />immediately available funds), and manner as Senior Lender determines in <br />its sole and absolute discretion. <br />(e) Banknitcv. Without the prior written consent of Senior Lender, Subordinate <br />Lender will not commence, or join with any other creditor in commencing, any <br />Bankruptcy Proceeding. In the event of a Bankruptcy Proceeding, Subordinate <br />Lender will not vote affirmatively in favor of any plan of reorganization or <br />liquidation unless Senior Lender has also voted affirmatively in favor of such <br />plan. <br />Subordination Agreement — Governmental Entity Page 6 <br />City of Santa Ana-Incinsionary Housing <br />La Placita Cinco <br />