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4. Default Under Subordinate Loan Documents. <br />(a) Notice of Subordinate Loan Default and Cure Rights. <br />(i) Subordinate Lender will deliver to Senior Lender a copy of each Notice <br />delivered by Subordinate Lender pursuant to the Subordinate Loan <br />Documents and/or the Regulatory Agreement within 5 Business Days of <br />sending such Notice to Borrower. Neither giving nor failing to give a <br />Notice to Senior Lender pursuant to this Section 4(a) will affect the <br />validity of any Notice given by Subordinate Lender to Borrower. <br />(ii) For a period of 90 days following delivery to Senior Lender of an <br />Enforcement Action Notice, Senior Lender will have the right, but not the <br />obligation, to cure any Subordinate Mortgage Default. However, if such <br />Subordinate Mortgage Default is a non -monetary default and is not <br />capable of being cured within such 90-day period and Senior Lender has <br />commenced and is diligently pursuing such cure to completion, Senior <br />Lender will have such additional period of time as may be required to cure <br />such Subordinate Mortgage Default or until such time, if ever, as Senior <br />Lender takes either of the following actions: <br />(A) Discontinues its pursuit of any cure. <br />(B) Delivers to Subordinate Lender Senior Lender's written consent to <br />the Enforcement Action described in the Enforcement Action <br />Notice. <br />(iii) Senior Lender will not be subrogated to the rights of Subordinate Lender <br />trader the Subordinate Loan Documents as a result of Senior Lender <br />having cured any Subordinate Mortgage Default. <br />(iv) Subordinate Lender acknowledges that all amounts advanced or expended <br />by Senior Lender in accordance with the Senior Loan Documents or to cure <br />a Subordinate Mortgage Default will be added to and become a part of the <br />Senior Indebtedness and will be secured by the lien of the Senior Mortgage. <br />(b) Subordinate Lender's Exercise of Remedies After Notice to Senior Lender. <br />(i) In the event of a Subordinate Mortgage Default, Subordinate Lender will <br />not commence any Enforcement Action until 90 days after Subordinate <br />Lender has delivered to Senior Lender an Enforcement Action Notice. <br />During such 90-day period or such longer period as provided in Section <br />4(a), Subordinate Lender will be entitled to seek specific performance to <br />enforce covenants and agreements of Borrower relating to income, rent, or <br />affordability restrictions contained in the Regulatory Agreement, subject <br />Subordination Agreement — Governmental Entity Page 7 <br />City of Santa Ana-Inclusionary housing <br />La Placita Cinco <br />