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<br />Subordination Agreement (City of Santa Ana) Form 6456 Page 6 <br />Fannie Mae 08-13 © 2013 Fannie Mae <br /> WISEPlace <br />4893-9038-0110v.4 4900000-002383 <br />NOTE: NO CREDIT APPROVAL HAS BEEN RECEIVED. THIS IS NOT A COMMITMENT. <br />the prior payment in full of the Indebtedness evidenced by the Senior Loan Documents, and (3) the <br />liens, terms, covenants and conditions of the Subordinate Mortgage and the other Subordinate <br />Loan Documents are and shall be subject and subordinate in all respects to the liens, terms, <br />covenants and conditions of the Senior Security Instrument and the other Senior Loan Documents <br />and to all advances heretofore made or which may hereafter be made pursuant to the Senior <br />Security Instrument and the other Senior Loan Documents (including but not limited to, all sums <br />advanced for the purposes of (1) protecting or further securing the lien of the Senior Security <br />Instrument, curing defaults by Borrower under the Senior Loan Documents or for any other <br />purpose expressly permitted by the Senior Loan Documents, or (2) constructing, renovating, <br />repairing, furnishing, fixturing or equipping the Mortgaged Property). <br />(b) Subordination of Subrogation Rights. <br />Subordinate Lender agrees that if, by reason of its payment of real estate taxes or other <br />monetary obligations of Borrower, or by reason of its exercise of any other right or remedy under <br />the Subordinate Loan Documents or the Unsubordinated City Regulatory Agreement, it acquires <br />by right of subrogation or otherwise a lien on the Mortgaged Property which (but for this <br />subsection) would be senior to the lien of the Senior Security Instrument, then, in that event, such <br />lien shall be subject and subordinate to the lien of the Senior Security Instrument. <br />(c) Payments Before Senior Loan Default. <br />Notwithstanding anything to the contrary in this Agreement, until Subordinate Lender <br />receives a Default Notice (or otherwise acquires actual knowledge) of a Senior Loan Default, <br />Subordinate Lender shall be entitled to retain for its own account all payments made under or <br />pursuant to the Subordinate Loan Documents. <br />(d) Payments After Senior Loan Default. <br />Borrower agrees that, after it receives a Default Notice (or otherwise acquires knowledge) <br />of a Senior Loan Default, it will not make any payments under or pursuant to the Subordinate Loan <br />Documents (including but not limited to principal, interest, additional interest, late payment <br />charges, default interest, attorneys’ fees, or any other sums secured by the Subordinate Loan <br />Documents) without Senior Lender’s prior written consent. Subordinate Lender agrees that, after <br />it receives a Default Notice from Senior Lender with written instructions directing Subordinate <br />Lender not to accept payments from Borrower on account of the Subordinate Loan, it will not <br />accept any payments under or pursuant to the Subordinate Loan Documents (including but not <br />limited to principal, interest, additional interest, late payment charges, default interest, attorneys’ <br />fees, or any other sums secured by the Subordinate Loan Documents) without Senior Lender’s <br />prior written consent or until the Senior Loan has been repaid in full. If Subordinate Lender <br />receives written notice from Senior Lender that the Senior Loan Default which gave rise to <br />Subordinate Lender’s obligation not to accept payments has been cured, waived, or otherwise <br />suspended by Senior Lender, the restrictions on payment to Subordinate Lender in this Section 6 <br />shall terminate, and Senior Lender shall have no right to any subsequent payments made to <br />Subordinate Lender by Borrower prior to Subordinate Lender’s receipt of a new Default Notice <br />from Senior Lender in accordance with the provisions of this Section 6(d). <br />EXHIBIT 4