2018-367 Housing - Community Home Trust Grant Agreement

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DocuSign Envelope ID: 5C622784- 3DD9- 4F2B- 8D53- D3D3E1D35BD4 1 1111I IIIIIIIIII��IIIIIIIIII� RB6513 139 49/58 ■ Exhibit G: PERMITTED MORTGAGES The provisions set forth in this Exhibit are understood to be provisions of Article 8 of the Lease to which the Exhibit is attached and in which the Exhibit is referenced. All terminology used in this Exhibit will have the meaning assigned to it in the Lease. 1. A "Permitted Mortgage" as the term is used in Section 8.1 is a mortgage which is approved in advance by Lessor and: a. Runs in favor of either (1) an institutional lender such as, but not limited to, a federal, state, or local housing finance agency, bank, savings and loan association, insured credit union, an insurance company, a pension and /or profit- sharing fund or trust, or any combination of the foregoing, the policies and procedures of which institutional lender are subject to direct governmental supervision, or (2) a "community development financial institution ", or similar nonprofit lender to housing projects for low and moderate income persons (as defined by reference to the membership criteria for the National Association of Community Development Loan Funds, a nonprofit corporation with its principal office located in Philadelphia, Pennsylvania); and b. Is a first lien on Lessee's Leasehold Estate (Lessor may, but is not obligated to, approve a second lien on the Leasehold Estate); and C. Provides that prior to accelerating the note secured by the mortgage and commencing foreclosure proceedings, the Permitted Mortgage holder will give Lessor notice of a default in any of the mortgagor's obligations and the right but not the obligation to cure the default within 120 days after its receipt of the notice, provided that current payments due to the holder are made during this period. d. Provides that if after the cure period the holder intends to accelerate the note secured by the Permitted Mortgage and /or initiate. foreclosure proceedings under the Permitted Mortgage, the holder will first notify Lessor of its intention to do so and Lessor will have the right, but not the obligation, to pay off or purchase the indebtedness secured by the Permitted Mortgage and acquire the security interest within 30 days of the receipt of the notice; and e. Provides that in the event of foreclosure sale by a Permitted Mortgagee or the delivery of a deed to a Permitted Mortgagee in lieu of foreclosure, upon acquisition of the Lessee's interest in the Leased Premises by the Permitted Mortgagee, the Permitted Mortgagee will give the Lessor written notice of such acquisition and the Lessor will have an option to purchase the Lessee's interest in the Leased Premises from the Permitted Mortgagee for the full amount owing to the Permitted Mortgagee under the Permitted Mortgage; provided, however, that the Lessor gives written notice to the Permitted Mortgagee of the Lessor's intent to purchase the Lessee's interest in the Leased Premises within thirty (30) days following the Lessor's receipt of the Permitted Mortgagee's notice of such acquisition of the Lessee's interest; further provided that Lessor will complete the purchase of the Lessee's interest in the Leased Premises within sixty (60) days of having given written notice of its intent to purchase; and provided that, if the Lessor does not complete the purchase within such period, the Permitted Mortgagee will be free to sell the Lessee's interest in the Leased Premises to another person; 2. LESSOR'S CONSENT TO PERMITTED MORTGAGE: Lessee must obtain Lessor's consent to a mortgage in advance and will give Lessor copies of all proposed loan documents at