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90 -day period, to continue to pursue its rights and remedies under the Subordinate Loan <br />Documents to the extent permitted under Section 5(b). All amounts paid by the Senior <br />Lender in accordance with the First Mortgage Loan Documents to cure a Subordinate Loan <br />Default shall be deemed to have been advanced by the Senior Lender pursuant to, and shall <br />be secured by the lien of, the First Mortgage. <br />(b) Subordinate Lender's Agreement to Standstill. If a Subordinate Loan <br />Default occurs and is continuing, the Subordinate Lender agrees that it will not accelerate <br />the Subordinate Loan, commence foreclosure proceedings with respect to the Property, <br />collect rents, appoint (or seek the appointment of) a receiver or institute any other collection <br />or enforcement action specifically related to the enforcement of any terms of the <br />Subordinate Loan Documents or the Regulatory Agreement without first giving at least <br />ninety (90) days' notice of a default under the Subordinate Loan and Subordinate Lender's <br />intent to exercise one of the preceding actions; provided, however, that such limitation on <br />the remedies of Subordinate Lender shall not derogate or otherwise limit Subordinate <br />Lender's rights, following an event of default under the Subordinate Loan Documents to (a) <br />compute interest on all amounts due and payable under the Subordinate Loan at the default <br />rate described in the Subordinate Loan Documents, (b) compute prepayment premiums and <br />late charges, (c) enforce against any person, other than Borrower and any guarantors or <br />indemnitors under the Senior Loan Documents, any guaranty of the obligations of Borrower <br />under the Subordinate Loan, and (d) seek specific performance to enforce covenants and <br />agreements of Borrower relating to income, rent, or affordability restrictions contained in <br />the Regulatory Agreement, and (e) appear in, defend or bring an action in connection with <br />the Property in Subordinate Lender's capacity as a municipal authority to the extent required <br />by law. <br />(e) Cross Default. The Borrower and the Subordinate Lender agree that a <br />Subordinate Loan Default. shall constitute a First Mortgage Loan Default under the First <br />Mortgage Loan Documents and the Senior Lender shall have the right to exercise all rights <br />or remedies under the First Mortgage Loan Documents in the same maturer as in the case of <br />any other First Mortgage Loan Default. If the Subordinate Lender notifies the Senior <br />Lender in writing that any Subordinate Loan Default of which the Senior Lender has <br />received a Default Notice has been cured or waived, as determined by the Subordinate <br />Lender in its sole discretion, then provided that Senior Lender has not conducted a sale of <br />the Property pursuant to its rights under the First Mortgage Loan Documents, any First <br />Mortgage Loan Default under the First Mortgage Loan Documents arising solely from such <br />Subordinate Loan Default shall be deemed cured, and the First Mortgage Loan shall be <br />reinstated, provided, however, that the Senior Lender shall not be required to return or <br />otherwise credit for the benefit of the Borrower any default rate interest or other default <br />related charges or payments received by the Senior Lender during such First Mortgage Loan <br />Default. <br />G. Default Under First Mortgage Loan Documents. <br />(Page -8) <br />LEGAL -US -W # 90627312.2 <br />