4.3 SR 12-16-2024 - Laserfiche WebLink

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SUBORDINATION AGREEMENT GOVERNMENTAL ENTITY FOR REGULATORY AGREEMENT REGULATORY AGREEMENT ONLY/NO SUBORDINATE DEBT THIS SUBORDINATION AGREEMENT FOR REGULATORY AGREEMENT (this "Agreement") is effective as of the day of December, 2024, by The City of Elk River, Minnesota, a municipal corporation under the laws of the State of Minnesota ("Governmental Entity"), and Elk River Prop I LLC, a Minnesota limited liability company ("Borrower"), for the benefit of NORTHMARQ CAPITAL FINANCE, L.L.C., a Nebraska limited liability company, its successors and assigns ("Lender"). RECITALS: A. Simultaneously herewith Lender is making a loan to Borrower in the original principal amount of $7,760,000.00 ("Loan") pursuant to a Multifamily Loan and Security Agreement between Lender and Borrower (as supplemented or amended from time to time, the "Loan Agreement") and evidenced by a Multifamily Note by Borrower to Lender (as supplemented or amended from time to time, the "Note"). The Loan is to be secured by a Multifamily Mortgage, Assignment of Lease and Rents, Security Agreement and Fixture Filing that will be recorded among the records of Sherburne County, Minnesota ("Official Records") (as supplemented or amended from time to time, the "Mortgage") of certain improved real property located in Elk River, Sherburne County, Minnesota, as more particularly described on Exhibit A attached hereto ("Property"). The Loan Agreement, the Note and the Mortgage, together with all other documents executed with respect to the Loan, are hereinafter collectively referred to as the "Loan Documents". B. In connection with the construction and development of the Property, Borrower's predecessor -in -interest entered into a certain Regulatory Agreement (Subordinate Note) dated as of October 28, 2010 ("Regulatory Agreement") in favor of the Governmental Entity, which was recorded in Sherburne County, Minnesota of the Official Records, pursuant to which the Property was subjected to certain restrictions. C. As a condition to making the Loan, Lender requires that the lien of the Mortgage be superior to the lien of the Regulatory Agreement. Lender will not make the Loan unless Governmental Entity and Borrower agree to subordinate their rights and obligations under the Regulatory Agreement. D. Borrower and Governmental Entity hereby agree to subordinate the Regulatory Agreement on and subject to the terms, conditions and requirements set forth in this Agreement. NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: Subordination Agreement (Governmental Entity) Dove Tree Apartments Page 1 Page 52 of 273