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6 <br />Documents and to all advances heretofore made or which may hereafter be made <br />pursuant to the Senior Security Instrument and the other Senior Loan Documents <br />(including but not limited to, all sums advanced for the purposes of (1) protecting or <br />further securing the lien of the Senior Security Instrument, curing defaults by Borrower <br />under the Senior Loan Documents or for any other purpose expressly permitted by the <br />Senior Security Instrument, or (2) constructing, renovating, repairing, furnishing, <br />fixturing or equipping the Mortgaged Property). Subordinate Lender agrees to extinguish <br />and release its lien on any and all Mortgaged Property in the event Senior Lender, HUD, <br />or a designee of either acquires title to the Mortgaged Property pursuant to a deed in lieu <br />of foreclosure. <br />(b) Subordination of Subrogation Rights. Subordinate Lender agrees that if, <br />by reason of its payment of real estate taxes or other monetary obligations of Borrower, <br />or by reason of its exercise of any other right or remedy under the Subordinate Loan <br />Documents, it acquires by right of subrogation or otherwise a lien on the Mortgaged <br />Property which (but for this subsection) would be senior to the lien of the Senior Security <br />Instrument, then, in that event, such lien shall be subject and subordinate to the lien of the <br />Senior Security Instrument. <br />(c) Payments Before Senior Security Instrument Default. Until <br />Subordinate Lender receives a default notice of a Senior Security Instrument Default <br />from Senior Lender, Subordinate Lender shall be entitled to retain for its own account all <br />payments made under or pursuant to the Subordinate Loan Documents provided that such <br />payments are otherwise permitted under the terms of this Agreement. <br />(d) Payments After Senior Security Instrument Default. Borrower agrees <br />that, after it receives notice (or otherwise acquires knowledge) of a Senior Security <br />Instrument Default, it will not make any payments under or pursuant to the Subordinate <br />Loan Documents (including but not limited to principal, interest, additional interest, late <br />payment charges, default interest, attorney's fees, or any other sums secured by the <br />Subordinate Mortgage) without Senior Lender's prior written consent. Subordinate <br />Lender agrees that, after it receives a default notice from Senior Lender with written <br />instructions directing Subordinate Lender not to accept payments from Project Sources <br />on account of the Subordinate Loan, it will not accept any payments under or pursuant to <br />the Subordinate Loan Documents (including but not limited to principal, interest, <br />additional interest, late payment charges, default interest, attorney's fees, or any other <br />sums secured by the Subordinate Mortgage) unless either (i) such payment is being made <br />solely from Non -Project Sources or (ii) such payment is made with Senior Lender's prior <br />written consent. If Subordinate Lender receives written notice from Senior Lender that <br />the Senior Security Instrument Default which gave rise to Subordinate Lender's <br />obligation not to accept payments has been cured, waived, or otherwise suspended by <br />Senior Lender, the restrictions on payment to Subordinate Lender in this Section 5 shall <br />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 <br />notice from Senior Lender in accordance with the provisions of this Section 5(d). <br />US.113590860.01 <br />