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<br />Subordination Agreement (City of Santa Ana) Form 6456 Page 11 <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 />Loan, any proceeds remaining after the satisfaction in full of the principal of, <br />interest on and other amounts payable under the Senior Loan shall be paid to, and <br />may be applied by, Subordinate Lender in accordance with the applicable <br />provisions of the Subordinate Loan Documents, provided however, Senior Lender <br />agrees to consult with Subordinate Lender in determining the application of <br />Casualty proceeds, provided further however that in the event of any disagreement <br />between Senior Lender and Subordinate Lender over the application of Casualty <br />proceeds, the decision of Senior Lender, in its sole discretion, shall prevail. <br />(c) Insurance. <br />Subordinate Lender agrees that all original policies of insurance required pursuant to the <br />Senior Security Instrument shall be held by Senior Lender. The preceding sentence shall not <br />preclude Subordinate Lender from requiring that it be named as a loss payee, as its interest may <br />appear, under all policies of property damage insurance maintained by Borrower with respect to <br />the Mortgaged Property, provided such action does not affect the priority of payment of the <br />proceeds of property damage insurance under the Senior Security Instrument, or that it be named <br />as an additional insured under all policies of liability insurance maintained by Borrower with <br />respect to the Mortgaged Property. <br />(d) No Modification of Subordinate Loan Documents or Unsubordinated City <br />Regulatory Agreement. <br />Borrower and Subordinate Lender each agree that, until the principal of, interest on and all <br />other amounts payable under the Senior Loan Documents have been paid in full, it will not, without <br />the prior written consent of Senior Lender in each instance, increase the amount of any Subordinate <br />Loan, increase the required payments due under any Subordinate Loan, decrease the term of any <br />Subordinate Loan, increase the interest rate on any Subordinate Loan, or otherwise amend any <br />Subordinate Loan terms or the Unsubordinated City Regulatory Agreement or the Density Bonus <br />Agreement in a manner that creates an adverse effect upon Senior Lender under the Senior Loan <br />Documents. Any unauthorized amendment of the Subordinate Loan Documents, the <br />Unsubordinated City Regulatory Agreement or the Density Bonus Agreement, or assignment of <br />Subordinate Lender’s interest in any Subordinate Loan without Senior Lender’s consent, shall be <br />void ab initio and of no effect whatsoever and Subordinate Lender agrees that it shall not transfer or <br />assign the Subordinate Loan or any Subordinate Loan Document without the prior written consent of <br />the Senior Lender. <br />11. Modification or Refinancing of Senior Loan. <br />Subordinate Lender consents to any agreement or arrangement in which Senior Lender <br />waives, postpones, extends, reduces or modifies any provisions of the Senior Loan Documents, <br />including any provision requiring the payment of money. Subordinate Lender furt her agrees that <br />its agreement to subordinate hereunder shall extend to any amendments or additional documents <br />executed in connection with any new mortgage debt which is for the purpose of refinancing all or <br />any part of the Senior Loan (including reasonable and necessary costs associated with the closing <br />and/or the refinancing) and, in the event of new mortgage debt, Subordinate Lender shall execute <br />EXHIBIT 4