04 - Agmt - 605-611 E Washington

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trust has not exercised its option to construct, the Agcney shall have the right but no obligation to cure the default hi such event, the Agency shall be entitled Co reimbursement from Developer of all proper costs and expenses incurred by the Agency in curing such default. The Agency shall also be entitled to a lien upon the Property to the extent of such costs and disbursements. Any such lien shall be junior and subordinate to the mortgages or deeds of trust pursuant to this Section 31l . 311.6 Changes Requested by Holder. In the event that a lender or Holder which has been approved pursuant to this Section 311, et seq., requires one or more amendments to this Agreement, or any of the attachments hereto, the Agency agrees:,-Yo reasonably consider approving such proposed amendment, and if such proposed amendment(s)'' does not materially affect the Agency's interests hereunder, the Agency Executive Direetor`or his or her designee is hereby authorized to make such amendment(s) without further apthoriz~tion fi•om the Agency. 311.7 Subm•dination of Affordability Restrictions;,. In the event the Executive Director finds that an economically feasible mejklod of financing for the Gonsh•uction and operation of the Project without the subordination of the Affordability Restrictions is nat reasonably available, Executive Director may agree to subordinate the 4oVpnants contained in the` jegulatory Agreement and the lieu of the Loans to the Senior Loan, the Bond Regulatory Agreement and/pr the Tax Credit Regulatory Agreement, subject to the tpl,'ms of this Section' 311.7. Each and'aiiy subordination agreement evidencing or affirming Agctlcy's and City's;, subordination of the Affordability Restrictions entered into by Ageney'atrd/it''City shall contain written commitments which the Executive Director finds are reasonably de,~igned fo<p}'otect Agerigy's and City's investment in the Project in the event of default; any suchr subordination, agreerrierlt(s) shall contain contractual obligation of such Senior Lepcier,, to inchid8,. without limitation, `fife following: (a) concurrent delivery to Agency and City of a ~frue„copy of each and any noHc'e,provided by the Senior Lender for the Project to Developer (as its boii`oyver) during fife term of the"Senior Loan for the Project; (b) a reasonably extended cure period and tight to Agency, and City to cure and asswne the Senior Loan, and/or other senior len(s) for the Pioledt iij~on the same terms applicable to the approved financing to Developer 'pursuant,:to the lgali docurizcriYs applicable thereto with such right, but with no obligat~un;-to the Agency and City.be,ing available'both from the date of issuance of any notice of default'thr•oilgh and after the iecordatioh of a formal Notice of Default by the Senior Lender for the Project pursuant to applicable C~iifornia Code of Civil Procedure foreclosure requirements, and (e) a right of Agency :and City to ctu'e- a defaLdt=%on each of the senior loan(s) for the Project prior to foreclosure and af(~r; recordation. o'f a Notice of Default pursuant to applicable California Code of Civil Procedure require~pents, and 'such curt rights may also include: (d) a right of Agency and City ,,. to negotiate with the ~etlior lierder(s) for the Project after notice of default from the Senior Lender(s) and prior to foreclosurc'(e) an agreement that if prior to foreclosure of the Senior Loan fox the Project, Agency or City takes title to the Property and cures the default on the senior loan(s) for the Project, the Senior Lender(s) will not exercise any right it may have to accelerate the Senior Loan by reason of the transfer of title to Agency or City, and (f) a right of Agency and City to acquire Developer's interest in the Property from Developer at any time after a material default on the Senior Loan for the Project. 18