40. Leasehold Mortgage Assign of Rents Sec Agree and FixPrepared By/Return To:
Holland & Knight LLP
31 West 52nd Street, 1lth Floor
New York, New York 10019
Attention: Kevin C. George, Esq.
2
OFF BK 34013 Fss 2577-2615 (39F9s)
RECORDED 12/18/2023 14B33:20
JUAH FERHANDE.Z-BAROUIM
CLERK OF THE COURT & COMPTROLI._ER
MIAMI-DADE COUNTY? FL
[Reserved]
LEASEHOLD MORTGAGE, ASSIGNMENT OF RENTS,
SECURITY AGREEMENT AND
FIXTURE FILING
by
VISTA BREEZE, LTD.,
a Florida limited partnership,
as Mortgagor
and
HOUSING FINANCE AUTHORITY OF MIAMI-DADE COUNTY, FLORIDA,
a public body corporate and politic organized and existing under the laws of the State of Florida,
as Mortgagee
This document serves as a Fixture Filing under the Florida Uniform Commercial Code.
Mortgagor's Organizational Identification Number is A20000000470.
Property Commonly Known As: 175 S. Shore Drive and 280 S. Shore Drive
City/County: Miami/Miami-Dade County
State: Florida
Zip Code: 33141
NOTE TO RECORDER: THIS INSTRUMENT AND THE PROMISSORY NOTE SECURED
HEREBY IN THE ORIGINAL PRINCIPAL SUM OF THIRTY-TWO MILLION FIVE
HUNDRED THOUSAND AND 00/100 DOLLARS ($32,500,000.00) ARISE OUT OF OR ARE
GIVEN TO SECURE THE REPAYMENT OF A LOAN IN CONNECTION WITH THE
FINANCING OF A HOUSING DEVELOPMENT AND ARE EXEMPT FROM
DOCUMENTARY STAMP AND INTANGIBLE TAXES PURSUANT SECTION 159,621
FLORIDA STATUTES.
231147072
LEASEHOLD MORTGAGE, ASSIGNMENT OF RENTS, SECURITY AGREEMENT
AND FIXTURE FILING
This LEASEHOLD MORTGAGE, ASSIGNMENT OF RENTS, SECURITY
AGREEMENT AND FIXTURE FILING (this "Mortgage") is made as of December 15, 2023,
by VISTA BREEZE, LTD., a Florida limited partnership (herein referred to as the "Mortgagor"),
having its principal place of business at c/o Atlantic I Pacific Communities, 161 NW 6th Street,
Suite 1020, Miami, Florida 33136, to HOUSING FINANCE AUTHORITY OF MIAMI-DADE
COUNTY, FLORIDA, a public body corporate and politic organized and existing under the laws
of the State of Florida (the "Mortgagee"), whose address is 7855 NW 12th Street, Suite 102, Doral,
Florida 33126.
Recitals
WHEREAS, Mortgagor has requested that Mortgagee make the Loan (as hereinafter
defined) to Mortgagor. As a condition precedent to making the Loan, Mortgagee has required that
Mortgagor execute and deliver this Mortgage to Mortgagee.
Grants and Agreements
Now, therefore, for good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged by Mortgagor, and in order to induce Mortgagee to make the Loan to
Mortgagor, Mortgagor agrees as follows:
Article I
Definitions.
As used in this Mortgage, capitalized terms used but not defined herein have the meaning
ascribed to them in the Construction Disbursement Agreement (as hereinafter defined). The terms
defined in the Preamble hereto shall have the respective meanings specified therein, and the
following additional terms shall have the meanings specified:
"Accessories" means all fixtures, fittings, apparatus, equipment, systems, machinery,
furniture, furnishings, appliances, inventory, goods, building and construction materials, supplies
and other articles of personal property and replacements thereof, of every kind and character,
tangible and intangible (including software embedded therein), now owned or hereafter acquired
by Mortgagor, which are now or hereafter attached to, affixed to, placed upon or situated in, on or
about the Land or Improvements, or used in or necessary to the complete and proper planning,
development, use, occupancy or operation thereof, or acquired (whether delivered to the Land or
stored elsewhere) for use or installation in or on the Land or Improvements, and all Additions to
the foregoing, all of which are hereby declared to be permanent accessions to the Land, but
excluding the Movable Personal Property and any Margin Stock.
"Accounts" means all accounts of Mortgagor within the meaning of the Uniform
Commercial Code of the State, derived from or arising out of the use, occupancy or enjoyment of
the Property or for services rendered therein or thereon.
"Additions" means any and all alterations, additions, accessions and improvements to
property, substitutions therefor, and renewals and replacements thereof.
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"Bankruptcy Code" shall mean Title 11 of the United States Code entitled "Bankruptcy",
as now or hereafter in effect or any successor statute thereto.
"Claim" means any liability, suit, action, claim, demand, loss, expense, penalty, fine,
judgment or other cost of any kind or nature whatsoever, including fees, costs and expenses of
attorneys, consultants, contractors and experts.
"Condemnation" means any taking of title to, use of, or any other interest in the Property
under the exercise of the power of condemnation or eminent domain, whether temporarily or
permanently, by any Governmental Authority or by any other Person acting under or for the benefit
of a Governmental Authority.
"Condemnation Awards" means any and all judgments, awards of damages (including
severance and consequential damages), payments, proceeds, settlements, amounts .paid for a taking
in lieu of Condemnation, or other compensation heretofore or hereafter made, including interest
thereon, and the right to receive the same, as a result of, or in connection with, any Condemnation
or threatened Condemnation.
"Construction Disbursement Agreement" means that certain Construction Disbursement
Agreement by between Mortgagor and Initial Funding Lender dated of even date with the date of
this Mortgage.
"Contract of Sale" means any contract for the sale of all or any part of the Property or any
interest therein, whether now in existence or hereafter executed.
"Controlled Substances Act" means the Controlled Substances Act (21 U.S.C. Sections
801 et seq.), as amended from time to time, and any successor statute.
"Default" means an event or circumstance which, with the giving of Notice or lapse of
time, or both, would constitute an Event of Default under the provisions of this Mortgage.
"Design and Construction Documents" means, collectively, (a) all contracts for services
to be rendered, work to be performed or materials to be supplied in the development of the Land
or the construction or repair of Improvements, including all agreements with architects, engineers
or contractors for such services, work or materials; (b) all plans, drawings and specifications for
the development of the Land or the construction or repair of Improvements; (c) all permits,
licenses, variances and other rights or approvals issued by or obtained from any Governmental
Authority or other Person in connection with the development of the Land or the construction or
repair of Improvements; and (d) all amendments of or supplements to any of the foregoing.
"Dispute" means any controversy, claim or dispute between or among the parties to this
Mortgage, including any such controversy, claim or dispute arising out of or relating to (a) this
Mortgage, (b) any other Loan Document, (c) any related agreements or instruments, or (d) the
transaction contemplated herein or therein (including any claim based on or arising from an alleged
personal injury or business tort).
"Encumbrance" means any Lien, easement, right of way, roadway (public or private),
declaration, condition, covenant, or restriction (including any declaration, condition, covenant, or
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restriction in connection with any condominium development or cooperative housing
development), Lease or other matter of any nature that would affect title to the Property.
"Environmental Agreement" means the Environmental Indemnification and Release
Agreement of even date herewith by and among Mortgagor, Guarantor and Initial Funding Lender
pertaining to the Property, as the same may from time to time be extended, amended, restated,
supplemented or otherwise modified.
"Event of Default" means an event or circumstance specified in Article VI and the
continuance of such event or circumstance beyond the applicable grace and/or cure periods
therefor, if any, set forth in Article VI.
"Expenses" means all fees, charges, costs and expenses of any nature whatsoever incurred
at any time and from time to time (whether before or after an Event of Default) by Mortgagee in
making, funding, administering or modifying the Loan, in protecting the security of this Mortgage,
in negotiating or entering into any "workout" of the Loan, or in exercising or enforcing any rights,
powers and remedies provided in this Mortgage or any of the other Loan Documents, including
attorneys' fees, court costs, receiver's fees, management fees and costs incurred in the completion,
repair, maintenance and operation of, or taking possession of, or selling, the Property.
"Flood Insurance Laws" means, collectively, (a) the National Flood Insurance Act of
1968, (b) the Flood Disaster Protection Act of 1973, and (c) the National Flood Insurance Reform
Act of 1994, and any regulation promulgated thereto, each as amended and together with any
successor Law of such type.
"Future Advances" means any loan of money from Mortgagee to Mortgagor made within
twenty (20) years from the date hereof. The total amount of such loan or loans may increase or
decrease from time to time, but the total unpaid aggregate balance secured by this Mortgage at any
one time shall not exceed $65,000,000, plus interest thereon, and any disbursements made for the
payment of the Property Assessments (whether taxes, levies or otherwise), insurance, or other liens
on the Property, with interest on such disbursements. The Mortgagee has no obligation whatsoever,
to make a Future Advance.
"Governmental Authority" or "Governmental Authorities" means the government of
the United States or any other nation, or of any political subdivision thereof, whether state or local,
and any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government (including any supra -national bodies such as the European Union
or the European Central Bank).
"Ground Lease" means that certain Second Amended and Restated Ground Lease by and
between Mortgagor, as tenant, and Ground Lessor, as landlord, dated as of the date hereof, as it
may from time to time be further amended and modified.
"Ground Lessor" means Housing Authority of the City of Miami Beach, a public body
corporate and politic established pursuant to Chapter 421, Florida Statutes, its successors and/or
assigns.
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"Guarantor" means, collectively, Howard D. Cohen, as an individual, and Howard D.
Cohen Revocable Trust U/A/D 4/6/1993, and its personal representatives, successors and assigns.
"Hedge Agreement" means any agreement, if and only if evidenced by a writing reciting
that it is secured by this Mortgage, relating to any transaction that is a rate swap, basis swap
transaction, forward rate transaction, commodity swap, commodity option, equity or equity index
swap or option, bond option, note or bill option, interest rate option, forward foreign exchange
transaction, cap transaction, spot or floor transaction, collar transaction, currency swap transaction,
cross -currency rate swap transaction, swap option, currency option, credit swap or default
transaction, T-lock, or any other similar transaction (including any option to enter into any of the
foregoing) or any combination of the foregoing, and, unless the context otherwise clearly requires,
any agreement or contract that constitutes a "swap" within the meaning of Section la(47) of the
Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor
statute, and CFTC Regulation 1.3(xxx), any form of master agreement published by the
International Swaps and Derivatives Association, Inc., and any other master agreement, entered
into by Mortgagor, together with any related schedules and confirmations, as the same may be
amended, restated, replaced, supplemented, superseded or otherwise modified from time to time
in accordance with its terms, relating to or governing any or all of the foregoing.
"Improvements" means all buildings, structures and replacements thereof and other
improvements now or hereafter existing, erected or placed on the Land, including all plant,
equipment, apparatus, machinery and fixtures of every kind and nature whatsoever forming part
of said structures and/or buildings together with any on -site improvements and off -site
improvements in any way used or to be used in connection with the use, enjoyment, occupancy or
operation of the Land.
"Initial Funding Lender" means Bank of America, N.A., a national banking association,
and its successors and/or assigns.
"Insolvency Proceeding" shall mean: (a) any voluntary or involuntary case or proceeding
under the Bankruptcy Code with respect to Mortgagor or Ground Lessor, as applicable; (b) any
other voluntary or involuntary insolvency, reorganization or bankruptcy case or proceeding; or any
receivership, liquidation, reorganization or other similar case or proceeding with respect to
Mortgagor or Ground Lessor, as applicable; (c) any liquidation, dissolution, reorganization or
winding up of Mortgagor or Ground Lessor, as applicable, whether voluntary or involuntary and
whether or not involving insolvency or bankruptcy; or (d) any assignment for the benefit of
creditors or any other marshalling of assets and liabilities of Mortgagor or Ground Lessor, as
applicable.
"Insurance Proceeds" means the insurance claims under and the proceeds of any and all
policies of insurance covering the Property or any part thereof, including all returned and unearned
premiums with respect to any insurance relating to such Property, in each case whether now or
hereafter existing or arising.
"Land" means the leasehold interest in the real property pursuant to the Ground Lease
which real property is more particularly described in Exhibit A attached hereto and made a part
hereof.
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"Law" or "Laws" means, collectively, all international, foreign, federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial
precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or administration thereof,
and all applicable administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority, in each case whether or not having
the force of law. With respect to Mortgagor and the Property, "Law" or "Laws" includes all Laws
pertaining to the construction, sale, leasing or use of the Improvements and to access and facilities
for handicapped or disabled persons, including without limitation and to the extent applicable, any
building codes, the Controlled Substances Act, the Flood Insurance Laws, the Federal
Architectural Barriers Act (42 U.S.C. § 4151 et seq.), the Fair Housing Amendments Act of 1988
(42 U.S.C. § 3601 et seg.), the Americans With Disabilities Act of 1990 (42 U.S.C. § 12101 et
M.), the Rehabilitation Act of 1973 (29 U.S.C. § 794), each as amended to date and further
amended from time to time.
"Lease(s " means all leases, license agreements and other occupancy or use agreements
(whether oral or written), now or hereafter existing, which cover or relate to the Property or any
part thereof, together .with all options therefor, amendments thereto and renewals, modifications
and guaranties thereof, including any cash, letter of credit rights or other security deposited under
the Leases to secure performance by the tenants of their obligations under the Leases, whether
such cash, letter of credit rights or other security is to be held until the expiration of the terms of
the Leases or applied to one or more of the installments of rent coming due thereunder.
"Lease Damage Claims" shall mean all of Mortgagor's claims and rights to payment of
damages, offsets, and other rights and remedies that may arise from: (a) Ground Lessor's failure
to perform under the Ground Lease; (b) rejection or disaffirmance of the Ground Lease under any
Debtor Relief Law or in connection with any Insolvency Proceeding; (c) violation or breach by
Ground Lessor under the Ground Lease; or (d) Ground Lessor's sale of Property pursuant to
Section 363 of the Bankruptcy Code or similar provisions of any other Debtor Relief Law, and all
damages and other sums payable with respect to or pursuant to any of the foregoing.
"Lessee Bankruptcy Rights" shall mean all of Mortgagor's rights, remedies, powers, and
privileges arising at any time under, in, or in connection with or related to any Insolvency
Proceeding affecting Ground Lessor, including Mortgagor's right: (a) to object to Ground Lessor's
sale of the Property under any Debtor Relief Law, including Bankruptcy Code Section 363 and (b)
to make the 365(h) Election, and any other comparable right under any other Debtor Relief Laws
and all claims, suits, actions, proceedings, rights, remedies, and privileges related thereto or arising
therefrom, including Mortgagor's right to claim any offset against rent and other charges and the
right to file and prosecute any proofs of claim, complaints, motions, applications, objections,
notices, and any other document in any case relating to Ground Lessor under any Debtor Relief
Laws, any and all adequate protection or other value received by or to which Mortgagor is entitled
to in connection with any sale of the Property in connection with any Insolvency Proceeding.
"Letter of Credit" or "Letters of Credit" means any letter of credit issued by Mortgagee
for the account of Mortgagor or its nominee in connection with the Land or the Improvements,
together with any and all extensions, renewals or modifications thereof, substitutions therefor or
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replacements thereof, if and only if evidenced by a writing reciting that the same is or are secured
by this Mortgage.
"Lien" means any mortgage, deed of trust, pledge, security interest, assignment, judgment,
lien or charge of any kind, including any conditional sale or other title retention agreement, any
lease in the nature thereof, and the filing of, or agreement to give, any financing statement under
the Uniform Commercial Code of any jurisdiction.
"Loan" means the loan from Mortgagee to Mortgagor, the repayment obligations in
connection with which are evidenced by the Note.
"Loan Agreement" means the Construction Phase Borrower Loan Agreement of even date
herewith by and among Mortgagor, Mortgagee and Fiscal Agent which sets forth, among other
things, the terms and conditions upon which the proceeds of the Loan will be disbursed, as the
same may from time to time be extended, amended, restated, supplemented or otherwise modified.
"Loan Documents" means, collectively, this Mortgage, the Note, the Environmental
Agreement, the Loan Agreement, the Construction Disbursement Agreement, any Hedge
Agreement, any application or reimbursement agreement executed in connection with any Letter
of Credit, and any and all other documents which Mortgagor or any other party or parties have
executed and delivered, or may hereafter execute and deliver, to evidence, secure or guarantee the
Obligations, or any part thereof, as the same may from time to time be extended, amended, restated,
supplemented or otherwise modified.
"Margin Stock" means "margin stock" as used in Regulation U issued by the Board of
Governors of the Federal Reserve System.
"Mortgage" means this Leasehold Mortgage, Assignment of Rents, Security Agreement
and Fixture Filing, as the same may from time to time be extended, renewed, amended, restated,
supplemented or otherwise modified.
"Movable Personal Property" means any item of tangible personal property owned by
Mortgagor that is not a fixture or otherwise affixed or to become affixed to the Real Property. By
way of example but not in limitation, Movable Personal Property would include desks, chairs and
other furniture, curtains, portable dishwashers and portable microwave ovens, clothes washers and
dryers and other portable equipment, and inventory.
"Note" means the Construction Phase Project Loan Note of even date herewith in the
original principal amount . of Thirty -Two Million Five Hundred Thousand and No/100 Dollars
($32,500,000.00) made by Mortgagor and payable to the order of Mortgagee, as the same may
from time to time be extended, renewed, amended, restated, replaced, supplemented or otherwise
modified.
"Notice" means a notice, request, consent, demand or other communication given in
accordance with the provisions of this Mortgage.
"Obligations" means all present and future debts, Future Advances, obligations and
liabilities of Mortgagor to Mortgagee arising pursuant to, and/or on account of, the provisions of
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this Mortgage, the Note, or any of the other Loan Documents, including the obligations: (a) to pay
all principal, interest, late charges, prepayment premiums (if any) and other amounts due at any
time under the Note; (b) to pay all Expenses, indemnification payments, fees and other amounts
due at any time under this Mortgage or any of the other Loan Documents, together with interest
thereon as herein or therein provided; (c) to pay and perform all obligations of Mortgagor under
any Hedge Agreement between Mortgagor and Mortgagee (or its affiliate); (d) to perform, observe
and comply with all of the other terms, covenants and conditions, expressed or implied, which
Mortgagor is required to perform, observe or comply with pursuant to this Mortgage or any of the
other Loan Documents; and (e) to pay and perform all future advances and other obligations that
Mortgagor or any successor in ownership of all or part of the Property may agree to pay and/or
perform (whether as principal, surety or guarantor) for the benefit of Mortgagee, when a writing
evidences the parties' agreement that the advance or obligation be secured by this Mortgage.
"Permitted Encumbrances" means (a) any matters set forth in any policy of title
insurance issued to Mortgagee and insuring Mortgagee's interest in the Property which are
acceptable to Mortgagee as of the date hereof, (b) the Liens and interests of this Mortgage, (c) the
tax credit extended use agreement to be recorded following completion of the Improvements with
respect to the Tax Credits, as reasonably approved by Mortgagee, and (d) any other Encumbrance
that Mortgagee shall expressly approve in writing in its sole and absolute discretion.
Notwithstanding anything in this Mortgage to the contrary, Permitted Encumbrances shall include
the Forward Commitment Fee Multifamily Leasehold Mortgage, Assignment of Rents, Security
Agreement and Fixture Filing dated as of the date hereof by Borrower to Citibank, N.A.
"Person" means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other entity.
"Personalty" means all personal property of any kind or nature whatsoever, whether
tangible or intangible and whether now owned or hereafter acquired, in which Mortgagor now has
or hereafter acquires an interest and which is used in the construction of, or is placed upon, or is
derived from or used in connection with the maintenance, use, occupancy or enjoyment of, the
Property, including (a) the Accessories; (b) the Accounts; (c) all franchise, license, management
or other agreements with respect to the operation of the Real Property or the business conducted
therein (provided all of such agreements shall be subordinate to this Mortgage, and Mortgagee
shall have no responsibility for the performance of Mortgagor's obligations thereunder) and all
general intangibles (including payment intangibles, trademarks, trade names, goodwill, software
and symbols) related to the Real Property or the operation thereof, (d) all sewer and water taps,
appurtenant water stock or water rights, allocations and agreements for utilities, bonds, letters of
credit, letter -of -credit rights, permits, certificates, licenses, guaranties, warranties, causes of action,
judgments, Claims, profits, security deposits, utility deposits, deposits or escrows for taxes,
insurance or other matters, and all rebates or refunds of fees, Taxes, assessments, charges or
deposits paid to any Governmental Authority related to the Real Property or the operation thereof;
(e) all of Mortgagor's rights and interests under all Hedge Agreements, including all rights to the
payment of money from Mortgagee (or its affiliate) under any Hedge Agreement and all accounts,
deposit accounts and general intangibles, including payment intangibles, described in any Hedge
Agreement; (f) all insurance policies held by Mortgagor with respect to the Property or
Mortgagor's operation thereof; (g) all Mortgagor's rights in any Tax Credits (to the extent
assignable and permitted by applicable laws); and (h) all money, instruments, chattel paper, or
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mortgages and documents (whether tangible or electronic) arising from or by virtue of any
transactions related to the Property, and all deposits and deposit accounts of Mortgagor with
Mortgagee related to the Property, including any such deposit account from which Mortgagor may
from time to time authorize Mortgagee to debit and/or credit payments due with respect to the
Loan; together with all Additions to and Proceeds of all of the foregoing, but excluding any
Movable Personal Property.
"Proceeds" when used with respect to any of the Property, means all proceeds of such
Property, including all Insurance Proceeds and all other proceeds within the meaning of that term
as defined in the Uniform Commercial Code of the State.
"Property" means Mortgagor's interest in the Real Property under the Ground Lease and
the Personalty and all other rights, interests and benefits of every kind and character which
Mortgagor now has or hereafter acquires in, to or for the benefit of the Real Property and/or the
Personalty and all other property and rights used or useful in connection therewith, including all
Leases, all Rents, all Condemnation Awards, all Proceeds, and all of Mortgagor's right, title and
interest in and to all Design and Construction Documents, all Contracts of Sale and all Refinancing
Commitments.
"Property Assessments" means all Taxes, payments in lieu of taxes, water rents, sewer
rents, assessments, condominium and owner's association assessments and charges, maintenance
charges and other governmental or municipal or public or private dues, charges and levies and any
Liens (including federal tax liens) which are or may be levied, imposed or assessed upon the
Property or any part thereof, or upon any Leases or any Rents, whether levied directly or indirectly
or as excise taxes, as income taxes, or otherwise.
"Real Property" means the Land and Improvements, together with (a) the rights and
leasehold interests of Mortgagor under the Ground Lease, including, without limitation, (i) all
Lessee Bankruptcy Rights, (ii) all Lease Damage Claims; this Mortgage constituting a present,
irrevocable and unconditional assignment of the Lease Damage Claims which shall continue in
effect until the Obligations have been satisfied in full, and (iii) all other or additional title, estates,
interests or rights which are now owned or may hereafter be acquired by Mortgagor in or to the
property demised under the Ground Lease creating the leasehold estate or otherwise relating to the
Land and other Real Property, including without limitation, all rights of Mortgagor to cause
Ground Lessor to perform its obligations under the Ground Lease; (b) all estates, title interests,
title reversion rights, remainders, increases, issues, profits, rights of way or uses, additions,
accretions, servitudes, strips, gaps, gores, liberties, privileges, water, water courses, water rights
(whether riparian, appropriative or otherwise, and whether or not appurtenant) and water stock,
alleys, passages, ways, vaults, licenses, tenements, franchises, hereditaments, royalties,
appurtenances, all development rights and credits and air rights, air space, easements, rights -of -
way, rights of ingress or egress, parking rights, timber, crops, mineral interests and other rights,
now or hereafter owned by Mortgagor and belonging or appertaining to the Land, Ground Lease
or Improvements; (c) all Claims whatsoever of Mortgagor with respect to the Land, Ground Lease
or Improvements, either in law or in equity, in possession or in expectancy; (d) all estate, right,
title and interest of Mortgagor in and to all streets, roads and public places, opened or proposed,
now or hereafter adjoining or appertaining to the Land, Ground Lease or Improvements; and (e)
all options to purchase the Land, Ground Lease or Improvements, or any portion thereof or interest
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therein, and any greater estate in the Land, Ground Lease or Improvements, and all Additions to
and Proceeds of the foregoing.
"Refinancing Commitment" means any commitment from or other agreement with any
Person providing for the financing of the Property, some or all of the proceeds of which are
intended to be used for the repayment of all or a portion of the Loan.
"Rents" means all of the rents, royalties, issues, profits, revenues, earnings, income and
other benefits of the Property or any part thereof, or arising from the use or enjoyment of the
Property or any part thereof, including all such amounts paid under or arising from any of the
Leases and all fees, charges, accounts or other payments for the use or occupancy of rooms or
other public facilities within the Real Property or any part thereof.
"State" means the state in which the Land is located.
"Tax Credits" means all federal and/or state low-income housing tax credits now or
hereafter allocated to the Real Property or to the Mortgagor in respect of the Real Property.
"Taxes" means all taxes and assessments, whether general or special, ordinary or
extraordinary, or foreseen or unforeseen, which at any time may be assessed, levied, confirmed or
imposed by any Governmental Authority or any community facilities or other private district on
Mortgagor or on any of its properties or assets or any part thereof or in respect of any of its
franchises, businesses, income or profits.
"Transfer" means any direct or indirect sale, assignment, conveyance or transfer,
including any Contract of Sale and any other contract or agreement to sell, assign, convey or
transfer, in whole or in part, whether made voluntarily or by operation of Law or otherwise, and
whether made with or without consideration.
"365(h) Election" shall mean the right of Mortgagor to treat the Ground Lease as
terminated pursuant to Section 365(h)(1)(A)(i) of the Bankruptcy Code or retain Mortgagor's
rights under the Ground Lease pursuant to Section 365(h)(1)(A)(ii) of the Bankruptcy Code and
all such other rights, powers, and privileges granted to a lessee pursuant to Section 365(h) of the
Bankruptcy Code, together with all such other similar rights, powers, and privileges granted to a
lessee under any other Debtor Relief Law.
Article II
Granting Clauses; Condition of Grant.
Section 2.1 Conveyances and Security Interests.
In order to secure the prompt payment and performance of the Obligations, Mortgagor (a)
grants, bargains, sells, aliens, remises, releases, assigns, mortgages, hypothecates, deposits,
pledges, sets over, confirms, warrants and conveys Mortgagor's interest in the Real Property unto
Mortgagee, all estate, right, title and interest of Mortgagor in and to its interest in the Real Property,
whether now owned or held or hereafter acquired by Mortgagor, to have and hold the interest in
the Real Property unto Mortgagee, its successors and assigns forever; and to hold the Real Property
unto Mortgagee forever; provided that Mortgagor may retain possession of the Real Property until
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m
the occurrence of an Event of Default; (b) grants to Mortgagee a security interest in the Personalty;
(c) assigns to Mortgagee, and grants to Mortgagee a security interest in, all Condemnation Awards
and all Insurance Proceeds; and (d) assigns to Mortgagee, and grants to Mortgagee a security
interest in, all of Mortgagor's right, title and interest in, but not any of Mortgagor's obligations or
liabilities under, all Design and Construction Documents, all Contracts of Sale and all Refinancing
Commitments. All Persons who may have or acquire an interest in all or any part of the Property
will be deemed to have notice of, and will be bound by, the terms of the Obligations and each other
agreement or instrument made or entered into in connection with each of the Obligations. Such
terms include any provisions in the Note, the Loan Agreement or any Hedge Agreement between
Mortgagor and Mortgagee (or its affiliate) which provide that the interest rate on one or more of
the Obligations may vary from time to time. The definition of "Obligations" includes Future
Advances.
Section 2.2 Absolute Assignment of Leases and Rents.
In consideration of the making of the Loan by Mortgagee to Mortgagor, the sum of Ten
and No/100 Dollars ($10.00) and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Mortgagor absolutely and unconditionally assigns
the Leases and Rents to Mortgagee. This assignment is, and is intended to be, an unconditional,
absolute and present assignment from Mortgagor to Mortgagee of all of Mortgagor's right, title
and interest in and to the Leases and the Rents and not an assignment in the nature of a pledge of
the Leases and Rents or the mere grant of a security interest therein. So long as no Event of Default
shall exist, however, and so long as Mortgagor is not in default in the performance of any
obligation, covenant or agreement contained in the Leases, Mortgagor shall have a license (which
license shall terminate automatically and without notice upon the occurrence of an Event of Default
or a default by Mortgagor under the Leases) to collect, but not prior to accrual, all Rents. Mortgagor
agrees to collect and hold all Rents in trust for Mortgagee and to use the Rents for the payment of
the cost of operating and maintaining the Property and for the payment of the other Obligations
before using the Rents for any other purpose.
The assignments of Leases and Rents contained in this Mortgage are intended to provide
Mortgagee with all of the rights and remedies of mortgagees pursuant to Section 697.07 of the
Florida Statutes (hereinafter "Section 697.07"), as may be amended from time to time. However,
in no event shall this reference diminish, alter, impair, or affect any other rights and remedies of
Mortgagee, including but not limited to, the appointment of a receiver, nor shall any provision in
this Section diminish, alter, impair or affect any rights or powers of the receiver in law or equity
or as set forth herein. In addition, this assignment shall be fully operative without regard to value
of the Property or without regard to the adequacy of the Property to serve as security for the
obligations owed by Mortgagor to Mortgagee, and shall be in addition to any rights arising under
Section 697.07. Further, except for the notices required hereunder or in the other Loan Documents,
if any, Mortgagor waives any notice of default or demand for turnover of rents by Mortgagee,
together with any rights under Section 697.07 to apply to a court to deposit the Rents into the
registry of the court or such other depository as the court may designate.
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Section 2.3 SecurityAgreement, Fixture Filing and Financing Statement.
This Mortgage creates a security interest in the Personalty, and, to the extent the Personalty
is not real property, this Mortgage constitutes a security agreement from Mortgagor to Mortgagee
under the Uniform Commercial Code of the State. Notwithstanding anything herein or in any other
Loan Documents to the contrary, this Mortgage does not grant to Mortgagee a security interest in
any Movable Personal Property or Margin Stock. In addition to all of its other rights under this
Mortgage and otherwise, Mortgagee shall have all of the rights of a secured party under the
Uniform Commercial Code of the State, as in effect from time to time, or under the Uniform
Commercial Code in force from time to time in any other state to the extent the same is applicable
Law. This Mortgage shall be effective as a financing statement filed as a fixture filing with respect
to all fixtures included within the Property and is to be filed for record in the real estate records of
each county where any part of the Property (including such fixtures) is situated. This Mortgage
shall also be effective as a financing statement with respect to any other Property as to which a
security interest may be perfected by the filing of a financing statement and may be filed as such
in any appropriate filing or recording office. The respective mailing addresses of Mortgagor and
Mortgagee are set forth in the opening paragraph of this Mortgage. A carbon, photographic or
other reproduction of this Mortgage or any other financing statement relating to this Mortgage
shall be sufficient as a financing statement for any of the purposes referred to in this Section 2.3.
Mortgagor hereby irrevocably authorizes Mortgagee at any time and from time to time to file any
initial financing statements, amendments thereto and continuation statements as authorized by
applicable Law, reasonably required by Mortgagee to establish or maintain the validity, perfection
and priority of the security interests granted in this Mortgage. The foregoing authorization includes
Mortgagor's irrevocable authorization for Mortgagee at any time and from time to time to file any
initial financing statements and amendments thereto that indicate the Personalty (a) as "all assets"
of Mortgagor or words of similar effect, regardless of whether any particular asset comprised in
the Personalty falls within the scope of the Uniform Commercial Code of the State or the
jurisdiction where the initial financing statement or amendment is filed, or (b) as being of an equal
or lesser scope or with greater detail; provided, however, in no event shall such Personalty be
deemed to include Movable Personal Property or Margin Stock.
Section 2.4 Release of Mortgage and Termination of Assignments and Financing
Statements.
If and when Mortgagor has paid and performed all of the Obligations, and no further
advances are to be made under the Loan Agreement, Mortgagee will provide a release of the
Property from the lien of this Mortgage and termination statements for filed financing statements,
if any, to Mortgagor. Mortgagor shall be responsible for the recordation of such release and the
payment of any recording and filing costs. Upon the recording of such release and the filing of
such termination statements, the absolute assignments set forth in Section 2.2 shall automatically
terminate and become null and void.
Without limiting the generality of the foregoing and the provisions of Section 3.7
hereunder, whether or not a Default has occurred, such appointment of Mortgagee as Mortgagor's
attorney -in -fact to exercise shall include, without limitation, the power by Mortgagee to exercise
any Lessee Bankruptcy Rights, including malting the 365(h) Election to prepare and file any
objection to any proposed sale of the Property by Ground Lessor pursuant to Section 363 of the
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Bankruptcy Code, to prepare and file any objection to any disclosure statement or plan, or similar
document, filed in any Insolvency Proceeding, and to take any other action with respect to the
Land, Ground Lease or Improvements in any Insolvency Proceeding of Ground Lessor.
Article III
Representations and Warranties.
Mortgagor makes the following representations and warranties to Mortgagee:
Section 3.1 Title to Real Property.
Mortgagor (a) owns good and marketable title to the Real Property, (b) owns all of the
beneficial and equitable interest in and to the interest in the Real Property, and (c) is lawfully
seized and possessed of an interest in the Real Property. Mortgagor has the right and authority to
mortgage and convey its interest in the Real Property and does hereby mortgage and convey the
interest in the Real Property with general warranty to Mortgagee. Mortgagor's interest in the Real
Property is subject to no Encumbrances other than the Permitted Encumbrances.
Section 3.2 Title to Other Property.
Mortgagor has good title to the Personalty, and the Personalty is not subject to any
Encumbrance other than the Permitted Encumbrances. None of the Leases, Rents, Design and
Construction Documents, Contracts of Sale or Refinancing Commitments are subject to any
Encumbrance other than the Permitted Encumbrances.
Section 3.3 Property Assessments.
The Real Property is assessed for purposes of Property Assessments as a separate and
distinct parcel from any other property, such that the Real Property shall never become subject to
the Lien of any Property Assessments levied or assessed against any property other than the Real
Property.
Section 3.4 Independence of the Real Property.
No buildings or other improvements on property not covered by this Mortgage rely on the
Real Property or any interest therein to fulfill any requirement of any Governmental Authority for
the existence of such property, building or improvements; and none of the Real Property relies, or
will rely, on any property not covered by this Mortgage or any interest therein to fulfill any
requirement of any Governmental Authority. The Real Property has been properly subdivided from
all other property in accordance with the requirements of any applicable Governmental
Authorities.
Section 3.5 Existing Improvements.
The proposed Improvements, after completion of construction, will be used and
maintained, in accordance with all applicable Laws, including zoning Laws.
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Section 3.6 Leases and Tenants.
The Leases, if any, are valid and are in full force and effect, and Mortgagor is not in default
under any of the terms thereof. Except as expressly permitted in the Loan Agreement, Mortgagor
has not accepted any Rents in advance of the time the same became due under the Leases and has
not forgiven, compromised or discounted any of the Rents. Mortgagor has title to and the right to
assign the Leases and Rents to Mortgagee, and no other assignment of the Leases or Rents has
been granted other than pursuant to the Permitted Encumbrances. To the best of Mortgagor's
knowledge and belief, no tenant or tenants occupying, individually or in the aggregate, more than
five percent (5%) of the net rentable area of the Improvements are in default under their Lease(s)
or are the subject of any bankruptcy, insolvency or similar proceeding.
Section 3.7 Specific Representations, Warranties and Covenants Respecting Ground
Lease.
(A) In addition to Mortgagor's representations, warranties and covenants elsewhere
contained herein, and without limitation of same, Mortgagor specifically represents, warrants,
covenants and agrees to and with Mortgagee as follows:
a) Ground Lease. Mortgagor has delivered to Mortgagee a true, correct, and
complete copy of the Ground Lease, together with all amendments, modifications,
supplements, assignments, or other transfers thereof. The Ground Lease has not been
amended, modified, supplemented, assigned, or transferred.
b) Possession of Leasehold; Leasehold Interest; Exercise of Options. The
interest of the tenant under the Ground Lease is presently vested in Mortgagor, and
Mortgagor is the sole holder of the leasehold estate in the Land and other Real Property in
accordance with the provisions of the Ground Lease. Mortgagor has not executed any other
mortgage, deed of trust, pledge, assignment, hypothecation, or other transfer, lien, security
interest, or other encumbrance of all or any portion of Mortgagor's right, title and interest
under the Ground Lease, except in favor of lenders whose lien is subordinate to the lien of
this Mortgage and expressly permitted by the Loan Agreement. Mortgagor has not
executed any instrument or agreement with respect to the Ground Lease which could
reasonably be expected to prevent or restrict Mortgagee from exercising its rights and
remedies under this Mortgage or any other Loan Documents relating in any way to the
Ground Lease. Mortgagor shall hereby forever warrant, defend, protect, and preserve
against the claims of all persons in connection with: (i) Mortgagor's leasehold interest in
the Land and other Real Property arising pursuant to the Ground Lease and (ii) the validity
and priority of the respective lien and title interest of Mortgagee granted by Mortgagor to
Mortgagee hereunder. Without Mortgagee's express prior written consent in each instance,
Mortgagor: (i) shall not fail to timely exercise any option or right to renew or extend the
term of the Ground Lease, at least ten (10) business days prior to the expiration thereof, in
accordance with the terms and conditions of the Ground Lease; (ii) shall provide prompt
written notice to Mortgagee with respect to any such exercise of any option or right to
renew or extend the term of the Ground Lease; and (iii) shall execute, acknowledge, deliver
and record any document requested by Mortgagee to evidence the respective lien and title
interest of this Mortgage on such extended or renewed lease term of the Ground Lease. In
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the event Mortgagor shall fail to timely exercise any such option or right as and when
provided above, Mortgagee may exercise such option or right as Mortgagor's attorney -in -
fact in Mortgagee's own name or in the name of and on behalf of a nominee of Mortgagee,
as and when Mortgagee may determine in the exercise of its sole and exclusive discretion.
Without limiting the provisions of Section 2.3 and Section 3.7(p) hereunder, Mortgagor
hereby irrevocably constitutes and appoints Mortgagee and any officer or agent of
Mortgagee, with full power of substitution, as its true and lawful attorney -in -fact, coupled
with an interest, with full irrevocable power and authority in the place and stead of
Mortgagor or in Mortgagor's own name to execute in Mortgagor's name any such
documents and to otherwise carry out the purposes of this Section.
c) No Existing Default. There is no existing default (or occurrence which with
the passage of time would constitute a default) or grounds for default (however defined or
described) under the provisions of the Ground Lease or in the performance of any of the
terms, covenants, conditions or warranties thereof on the part of Mortgagor or Ground
Lessor thereof to be kept, performed and observed under the Ground Lease.
d) Rent and Other Payments under Ground Lease. Mortgagor shall promptly
pay, as and when due and payable, all rent, any additional rent and/or percentage rent, and
all other sums and charges described in and required to be paid by Mortgagor with respect
to the Land under the terms and conditions of the Ground Lease, including, without
limitation, all taxes, assessments and other charges or levies and all insurance premiums
required to be paid by Mortgagor thereunder.
e) Compliance; Performance under Ground Lease. Mortgagor shall promptly
perform and observe all of the terms, covenants, and conditions required to be performed
and observed by Mortgagor under the Ground Lease with respect to the Land, within the
periods provided in the Ground Lease, and shall do all things necessary to preserve and to
keep unimpaired Mortgagor's rights under the Ground Lease. Without the express prior
written consent of Mortgagee in each instance, Mortgagor shall not: (i) take any act which
would destroy or materially impair the benefits to Mortgagee pursuant to this Mortgage;
(ii) take any action or omit to take any action which would affect or permit the termination
of the Ground Lease; and (iii) waive, excuse, release, or discharge in any way Ground
Lessor of or from Ground Lessor's material obligations, covenants, and/or conditions under
the Ground Lease.
f) Conditional Assignment of Ground Lease. To the fullest extent permitted
by applicable Law and the terms and conditions of the Ground Lease, and without limiting
the provisions of Section 2.2 (Absolute Assignment of Leases and Rents) hereunder,
Mortgagor does hereby assign, transfer, set, over and deliver to Mortgagee, for collateral
purposes only, all of Mortgagor's rights, title and interest in, to and under the Ground
Lease. By its acceptance hereof, Mortgagee hereby covenants and agrees that so long as
there exists no Event of Default hereunder, Mortgagor shall have the right to possess and
enjoy the Land and other Real Property leased pursuant to the Ground Lease, subject to the
terms and conditions contained herein.
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g) Acquisition of Fee; No Merger. Mortgagor shall not acquire the fee interest
in the Land under the Ground Lease without the express prior written approval of
Mortgagee. In the event that Mortgagor acquires such fee title to the Land, such interest
shall be deemed to be subject to and covered by this Mortgage, and in confirmation thereof,
Mortgagor shall promptly: (i) provide Mortgagee with notice of such further title interest
of Mortgagor to the Land and (ii) execute, acknowledge, and deliver such other and further
instruments, documents, and agreements as may be reasonably required by Mortgagee to
ratify, confirm, re -affirm, and perfect Mortgagee's interest in such Property, including
without limitation, any additional mortgage or amendment requested by Mortgagee to
confirm Mortgagor's right, title and interest in and to the fee title of Mortgagor to the Land.
Without the express prior written approval of Mortgagee, there shall be no merger of the
leasehold estate created by the Ground Lease with the fee estate of the Land, and
Mortgagor's leasehold estate created by the Ground Lease shall not merge, but shall always
remain separate and distinct, notwithstanding any union of such estates in Ground Lessor,
Mortgagee, or Mortgagor by purchase, operation of Law, or otherwise. In the event that
Mortgagee shall acquire such fee title and leasehold estate by foreclosure of this Mortgage
(or by conveyance or assignment in lieu thereof) or otherwise, then such estates shall not
merge as a result thereof but shall remain separate and distinct for all purposes after such
acquisition unless and until Mortgagee elects in writing to merge such estates.
h) Ground Lessor's Default. Mortgagor shall promptly notify Mortgagee in
writing of any Event of Default (after the expiration of all applicable notice and cure
periods) caused by Ground Lessor in the performance or observance of any of the terms,
covenants or conditions on the part of Ground Lessor to be performed or observed under
the Ground Lease. Further, Mortgagor, promptly upon learning that Ground Lessor has
failed to perform the terms and provisions under the Ground Lease (including by reason of
a rejection or disaffirmance or purported rejection or disaffirmance of such Ground Lease
pursuant to any Debtor Relief Law), shall notify Mortgagee in writing of any such failure
to perform. Mortgagor shall promptly cause a copy of each such notice received by
Mortgagor to be delivered to Mortgagee no later than five (5) Business Days after the
receipt thereof.
i) Mortgagor's Default. Mortgagor shall promptly notify Mortgagee in
writing of any of the following: (i) any (x) notice of default by Mortgagor in the
performance or observance of any of the terms, covenants, or conditions on the part of
Mortgagor to be performed or observed under the Ground Lease, (y) notice of the
occurrence of any event which with the passage of time may become an Event of Default
(after the expiration of all applicable notice and cure periods) under the Ground Lease or
permit Ground Lessor to terminate the Ground Lease or re-enter and take possession of the
Property, and/or (z) notice of the exercise by Ground Lessor of any remedies relating to
defaults or breach of the Ground Lease; (ii) the receipt by Mortgagor of any written notice
from Ground Lessor of termination of the Ground Lease (or otherwise threatening to
terminate the Ground Lease) pursuant to the provisions of the Ground Lease; and/or (iii)
any litigation or arbitration threatened or commenced with respect to the Ground Lease.
Mortgagor shall promptly cause a copy of each such notice received by Mortgagor to be
delivered to Mortgagee no later than five (5) business days after the receipt thereof.
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j) Estoppel Certificates. Mortgagor shall, within fifteen (15) days after written
demand from Mortgagee, use commercially reasonable effort to obtain from Ground
Lessor and deliver to Mortgagee an estoppel certificate in form and substance reasonably
satisfactory to Mortgagee stating that the Ground Lease is in full force and effect, is
unmodified, that no notice of termination thereof has been served on Mortgagor or Ground
Lessor, as the case may be, stating the date to which the rent has been paid, and stating
whether there are any Events of Default thereunder and specifying the nature of such
Events of Default. As of the date hereof, Mortgagor has ensured that any notice
requirements of the Ground Lease with respect to leasehold mortgagees as set forth in the
Ground Lease have been satisfied with respect to Mortgagee and Mortgagor represents to
Mortgagee that Mortgagee is a "Permitted Mortgagee" and the "Senior Permitted
Mortgagee," each as defined in the Ground Lease.
k) Proof of Payment and Performance. Mortgagor shall furnish Mortgagee
within ten (10) days of the request therefor: (i) proof of payment of all items which are
required to be paid by Mortgagor pursuant to the Ground Lease and (ii) any and all
information with respect to the Ground Lease that Mortgagee may reasonably request
concerning Mortgagor's and/or Ground Lessor's performance under, and compliance with,
the terms and conditions thereof.
1) No Amendment, Modification, Termination, Subordination of Ground
Lease. Without the express prior written consent of Mortgagee in each instance, Mortgagor
shall not, either orally or in writing: (i) modify, amend, supplement, alter, or change the
Ground Lease; (ii) terminate or cancel the Ground Lease or otherwise surrender all or any
portion of Mortgagor's leasehold estate and interest under the Ground Lease; (iii) assign,
transfer, or sublease all or any portion of Mortgagor's leasehold estate and interest under
the Ground Lease, except for Leases of residential units in the Improvements in compliance
with all Permitted Encumbrances or (iv) cause, agree to, or permit or suffer to occur any
subordination, or consent to the subordination of, the Ground Lease to any mortgage, deed
of trust or other lien encumbering (or which may thereafter encumber) Ground Lessor's
fee interest in the Land or other real estate demised to Mortgagor under the Ground Lease
(other than a subordination or consent to subordination expressly required by the terms and
conditions of the Ground Lease). Without limiting the generality of the foregoing,
Mortgagee's consent to any modification, amendment, supplement, alteration, sublease,
transfer, or assignment respecting the Ground Lease on any one occasion shall not be
deemed or construed to constitute a waiver of Mortgagee's right to require consent to any
other or further, future, or successive modification, amendment, supplement, alteration,
alteration, sublease, transfer, or assignment thereof. Further, to the extent that Ground
Lessor requests that Mortgagor take (or refrain from taking) any material action under or
with respect to the Ground Lease (for which the consent or approval by Mortgagor is
required under the Ground Lease and Ground Lessor has requested Mortgagor's consent
or approval), Mortgagor shall provide Mortgagee with prompt written notice of such
request and shall not provide such consent or approval without the express prior written
consent of Mortgagee in each instance.
m) Proceeds of Casualty or Condemnation. Without Mortgagee's express prior
written consent in each instance, Mortgagor shall not agree with Ground Lessor to disburse
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any proceeds of any casualty or condemnation contrary to the provisions of this Mortgage
and the other Loan Documents.
n) Cure of Default. Mortgagee shall have the right, but not the obligation, to
take any actions reasonably necessary to cure any Event of Default (after the expiration of
all applicable notice and cure periods) by Mortgagor under the Ground Lease with respect
to the Land within the time provided by the terms of the Ground Lease for such purpose.
Mortgagor shall execute and deliver, on request of Mortgagee, such instruments as
Mortgagee may reasonably request and deem useful or required to permit Mortgagee to
cure any default under the Ground Lease or permit Mortgagee to take such other action as
Mortgagee considers desirable to cure or remedy the matter in default and preserve the
interest of Mortgagee in the Property. Upon receipt by Mortgagee from Ground Lessor of
any written notice of default by Mortgagor under the Ground Lease with respect to the
Land, Mortgagee may rely thereon and, whether or not such notice or notice of default
constitutes an Event of Default hereunder or under any other Loan Document, take any and
all action deemed necessary by Mortgagee to prevent or cure such default, notwithstanding
that the occurrence of such default may be disputed by Mortgagor. Without limiting the
rights and remedies of Mortgagee pursuant to this Mortgage, in exercising its rights to
prevent or to cure any such default with respect to the Land under the Ground Lease: (i)
Mortgagee shall have the absolute and immediate right to enter in and upon the Property
or any part thereof as, when, and to the extent determined necessary or appropriate by
Mortgagee and without Mortgagee being deemed or construed to be a mortgagee in
possession and (ii) Mortgagee may pay and expend such sums of money as Mortgagee in
its sole but reasonable determination deems appropriate (which sums shall automatically
constitute Obligations immediately upon payment by Mortgagee), and Mortgagor hereby
agree to pay to Mortgagee within two (2) Business Days after demand, all such sums so
paid and expended by Mortgagee, together with interest thereon at the default rate provided
in the Note. Notwithstanding anything herein or in the Loan Documents to the contrary,
Mortgagor shall have three (3) Business Days less than is provided under the Ground Lease
to cure defaults under the Ground Lease so that if Mortgagor fails to cure such default,
Mortgagee has time to cure the same.
o) Arbitration or other Dispute Resolution under Ground Lease. Mortgagor
shall promptly notify Mortgagee in writing of any request that any party to the Ground
Lease makes for any arbitration or other dispute resolution procedure pursuant to the
Ground Lease and of the institution of any such arbitration or dispute resolution.
Mortgagor hereby authorizes Mortgagee, if a Default shall then exist, to participate, to the
exclusion of Mortgagor, in any such arbitration or dispute resolution. To the extent that
Mortgagor is entitled to participate in any such arbitration or dispute resolution hereunder
and under the other Loan Documents, Mortgagor hereby agrees that it shall promptly
deliver to Mortgagee a copy of the determination of each such arbitration or dispute
resolution mechanism and shall at all times keep Mortgagee apprised with respect to the
status of such arbitration or dispute resolution.
p) Authority to Act on Behalf of Mortgagor. During the continuance of a
Default hereunder, Mortgagor hereby authorizes Mortgagee, at Mortgagee's sole option
and in its sole and exclusive discretion from time to time: (i) to pay any and all rental
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payments or similar sums to be paid by Mortgagor with respect to the Land, payment of
which are then due and payable under the Ground Lease, with interest and penalties thereon
if charged by Ground Lessor under the Ground Lease and (ii) to incur and pay all sums
reasonably necessary to protect Mortgagee's rights hereunder and under the Ground Lease.
Such sums shall automatically constitute Obligations immediately upon payment by
Mortgagee and Mortgagor hereby agrees to pay to Mortgagee within two (2) Business Days
after demand, all such sums so paid and expended by Mortgagee, together with interest
thereon at the default rate provided in the Note.
q) Attorney -in -Fact. Mortgagor hereby irrevocably constitutes and appoints
Mortgagee and any officer or agent of Mortgagee, with full power of substitution, as its
true and lawful attorney -in -fact, coupled with an interest, with full irrevocable power and
authority in the place and stead of Mortgagor or in Mortgagor's own name to exercise all
rights, remedies, powers, privileges, and discretions of Mortgagor with respect to the Land
under the Ground Lease (to be exercised by Mortgagee upon the occurrence and during the
continuance of a Default) and otherwise to carry out the purposes of this Mortgage and the
exercise of Mortgagee's rights and remedies hereunder. The foregoing appointment is
irrevocable and continuing and such rights, powers and privileges shall be exclusive in
Mortgagee, its successors and assigns, so long as such Default remains uncured by
Mortgagor.
r) Early Termination of Ground Lease; Mortgagor's Continued Obligations.
If the Ground Lease is for any reason terminated prior to the natural expiration of its term,
and if, pursuant to any provision of the Ground Lease or otherwise, Mortgagee or its
designee shall acquire from Ground Lessor thereunder a new or replacement ground lease
of the Land and other Real Property, or otherwise relating to the Property, Mortgagor shall
have no right, title or interest in or to such new or replacement ground lease or the leasehold
estate created thereby, or any proceeds or income arising from the leasehold estate under
such new or replacement ground lease, including, without limitation, on account of any
sale or other disposition thereof. Neither the execution and delivery of any such new or
replacement ground lease, nor any release or forbearance by Ground Lessor of Mortgagor's
obligations under the Ground Lease shall release or otherwise affect Mortgagor's continued
obligations under this Mortgage, including, without limitation, all covenants of Mortgagor
hereunder with respect to the timely payment of all rent under the Ground Lease and the
performance of all terms, provisions, covenants, conditions, and agreements contained in
the Ground Lease to be kept, performed and complied with by Mortgagor as provided
therein.
(B) Treatment of Ground Lease in Bankruptcy of Ground Lessor.
a) Rejection or Affirmation of Ground Lease. If Ground Lessor rejects or
disaffirms, or seeks or purports to reject or disaffirm, the Ground Lease pursuant to any
Debtor Relief Law, then Mortgagor shall not exercise the 365(h) Election without the
express prior written consent of Mortgagee. To the extent permitted by Law, Mortgagor
shall not suffer, permit, or consent to the termination (and/or any rejection or
disaffirmance) of the Ground Lease pursuant to the Debtor Relief Law without
Mortgagee's express prior written consent. Mortgagor acknowledges and agrees that
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because the Ground Lease is a primary element of Mortgagee's security for the Obligations
secured hereunder, it is not anticipated that Mortgagee would consent to termination of any
Ground Lease. Accordingly, if Mortgagor makes any 365(h) Election in violation of this
Mortgage, then such 365(h) Election shall be void and of no force or effect.
b) 365(h)Election. To the extent permitted by Law, Mortgagor hereby assigns
to Mortgagee the 365(h) Election with respect to the Ground Lease until the Obligations
secured hereunder has been indefeasibly paid and satisfied in full. Mortgagor
acknowledges and agrees that the foregoing assignment of the 365(h) Election and related
rights is one of the rights that Mortgagee may use at any time to protect and preserve
Mortgagee's other rights and interests under this Mortgage. Mortgagor further
acknowledges that exercise of the 365(h) Election by Mortgagor in favor of terminating
the Ground Lease would constitute waste prohibited by this Mortgage. Mortgagor
acknowledges and agrees that the 365(h) Election is in the nature of a remedy available to
Mortgagor under the Ground Lease , and is not a property interest that Mortgagor can
separate from the Ground Lease as to which it arises. Therefore, Mortgagor agrees and
acknowledges that exercise of the 365(h) Election in favor of preserving the right to
possession under the Ground Lease shall not be deemed to constitute Mortgagee's taking
or sale of the Land and other Real Property (or any element thereof) and shall not entitle
Mortgagor to any credit against the Obligations secured hereunder or otherwise impair
Mortgagee's remedies. Without limiting the generality of the foregoing, Mortgagor
acknowledges and agrees that, in the event that the 365(h) Election is exercised in favor of
Mortgagor remaining in possession, then Mortgagor's resulting right to possession and use
of the Property (and the rents, issues and profits therefrom), as adjusted by the effect of
Section 365 of the Bankruptcy Code, shall then be subject to the lien and encumbrance of
this Mortgage; provided, however, Mortgagor acknowledges and agrees that such right to
possession and use of the Property as so adjusted is not equivalent to Mortgagor's leasehold
estate under the Ground Lease as of the date hereof. Accordingly, and without limiting the
provisions of Article VI — (Events of Default) herein, Mortgagor acknowledges and agrees
that the rejection of the Ground Lease under the Bankruptcy Code shall constitute a Default
under this Mortgage if such rejection shall reasonably result in material impairment to the
value of the Property and shall entitle Mortgagee to exercise all rights and remedies
provided for in this Mortgage or the other Loan Documents in the event of the occurrence
of a Default.
c) Lien on Occupancy Rights. Mortgagor acknowledges that if the 365(h)
Election is exercised in favor of Mortgagor's remaining in possession under the Ground
Lease, then Mortgagor's resulting occupancy rights, as adjusted by the effect of Section
365 of the Bankruptcy Code, shall then be part of the Property and shall be subject to the
lien of this Mortgage.
d) Rejection of Lease by Ground Lessor. If Ground Lessor rejects or
disaffirms any Ground Lease or purports or seeks to disaffirm such Ground Lease pursuant
to any Debtor Relief Law, then:
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I. To the fullest extent not prohibited by applicable Law, Mortgagor
shall remain in possession of the Property demised under the Ground Lease and
20
shall perform all acts reasonably necessary for Mortgagor to remain in such
possession for the unexpired term of the Ground Lease (including all renewals),
whether the then existing terms and provisions of the Ground Lease require such
acts or otherwise; and
II. All the terms and provisions of this Mortgage and the lien created
by this Mortgage shall remain in full force and effect and shall extend automatically
to all of Mortgagor's rights and remedies arising at any time under, or pursuant to,
Section 365(h) of the Bankruptcy Code, including all of Mortgagor's rights to
remain in possession of the Property.
e) Offset by Mortgagor. If pursuant to Section 365(h)(1)(B) of the Bankruptcy
Code or any other similar Debtor Relief Law, Mortgagor seeks to offset against any rent
under the Ground Lease the amount of any Lease Damage Claim, then Mortgagor shall
notify Mortgagee of its intent to do so at least twenty (20) days before effecting such offset.
Such notice shall set forth the amounts proposed to be so offset and the basis for such
offset. If Mortgagee reasonably objects to all or any part of such offset, then Mortgagor
shall not effect any offset of the amounts to which Mortgagee reasonably objects. If
Mortgagee approves such offset, then Mortgagor may effect such offset as set forth in
Mortgagor's notice. Neither Mortgagee's failure to object, nor any objection or other
communication between Mortgagee and Mortgagor that relates to such offset, shall
constitute Mortgagee's approval of any such offset. Mortgagor shall indemnify Mortgagee
against any offset against the rent reserved in any Lease.
f) Ground Lessor's Sale of Property. In connection with any Insolvency
Proceeding, Mortgagor, upon learning that Ground Lessor intends to conduct a sale of the
Property, shall immediately notify Mortgagee of such intention and, to the fullest extent
not prohibited by applicable Law, Mortgagor shall timely file any and all objections,
pleadings, and notices contesting and objecting to Ground Lessor's intention to sell the
Property, whether such sale is pursuant to Section 363 of the Bankruptcy Code or any other
Debtor Relief Law.
g) Notice of Bankruptcy. Mortgagor, upon learning of any Insolvency
Proceeding with respect to Ground Lessor, shall immediately notify Mortgagee of such
Insolvency Proceeding, including using good faith efforts to provide all relevant
information pertaining thereto, including jurisdiction, case number, and relevant case
information. Mortgagor, upon learning of any actions by Ground Lessor to sell, encumber,
or otherwise effect the Property, or terminate, reject, disaffirm or assign the Ground Lease,
shall promptly notify Mortgagee, including using good faith efforts to provide Mortgagee
with copies of any and all notices and pleadings filed in connection with the foregoing.
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Article IV
Affirmative Covenants.
Section 4.1 Obligations.
Mortgagor agrees to promptly pay and perform all of the Obligations, time being of the
essence in each case.
Section 4.2 Property Assessments; Documentary Taxes.
Mortgagor (a) will promptly pay in full and discharge all Property Assessments, and (b)
will furnish to Mortgagee, upon demand, the receipted bills for such Property Assessments prior
to the day upon which the same shall become delinquent. Property Assessments shall be considered
delinquent as of the first day any interest or penalty commences to accrue thereon. Mortgagor will
promptly pay all applicable stamp, documentary, recordation, transfer and intangible taxes and all
other taxes that may from time to time be required to be paid with respect to the Loan, the Note,
this Mortgage or any of the other Loan Documents.
Section 4.3 Permitted Contests.
Mortgagor shall not be required to pay any of the Property Assessments, or to comply with
any Law, so long as Mortgagor shall in good faith, and at its cost and expense, contest the amount
or validity thereof, or take other appropriate action with respect thereto, in good faith and in an
appropriate manner or by appropriate proceedings; provided that (a) such proceedings operate to
prevent the collection of, or other realization upon, such Property Assessments or enforcement of
the Law so contested, (b) there will be no sale, forfeiture or loss of the Property during the contest,
(c) Mortgagee or the Property is not subject to any Claim as a result of such contest, and (d)
Mortgagor provides assurances satisfactory to Mortgagee (including the establishment of an
appropriate reserve account with Mortgagee, or if required by the taxing authority, then
establishment of escrow with the taxing authority) of its ability to pay such Property Assessments
or comply with such Law in the event Mortgagor is unsuccessful in its contest. Each such contest
shall be promptly prosecuted to final conclusion or settlement, and Mortgagor shall indemnify and
save Mortgagee harmless against all Claims in connection therewith. Promptly after the settlement
or conclusion of such contest or action, Mortgagor shall comply with such Law and/or pay and
discharge the amounts which shall be levied, assessed or imposed or determined to be payable,
together with all penalties, fines, interests, costs and expenses in connection therewith.
Section 4.4 Compliance with Laws.
Mortgagor will comply with and not violate, and cause to be complied with and not
violated, all present and future Laws applicable to the Property and its use and operation.
Section 4.5 Maintenance and Repair of the Property_.
Mortgagor, at Mortgagor's sole expense, will (a) keep and maintain Improvements and
Accessories in good condition, working order and repair, (b) make all necessary or appropriate
repairs and Additions to Improvements and Accessories, so that each part of the Improvements
and all of the Accessories shall at all times be in good condition and fit and proper for the respective
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purposes for which they were originally intended, erected, or installed, and (c) commit or permit
no waste.
Section 4.6 Additions to Security.
All right, title and interest of Mortgagor in and to all Improvements and Additions hereafter
constructed or placed on the Property and in and to any Accessories hereafter acquired shall,
without any further mortgage, conveyance, assignment or other act by Mortgagor, become subject
to the Lien of this Mortgage as fully and completely, and with the same effect, as though now
owned by Mortgagor and specifically described in the granting clauses hereof. Mortgagor agrees,
however, to execute and deliver to Mortgagee such further documents as may be required by the
terms of the Loan Agreement and the other Loan Documents.
Section 4.7 Subrogation.
To the extent permitted by Law, Mortgagee shall be subrogated, notwithstanding its release
of record, to any Lien now or hereafter existing on the Property to the extent that such Lien is paid
or discharged by Mortgagee whether or not from the proceeds of the Loan. This Section 4.7 shall
not be deemed or construed, however, to obligate Mortgagee to pay or discharge any Lien.
Section 4.8 Leases.
(a) Except as expressly permitted in the Loan Agreement and Construction
Disbursement Agreement, Mortgagor shall not enter into any Lease with respect to all or any
portion of the Property without the prior written consent of Mortgagee.
(b) Mortgagee shall not be obligated to perform or discharge any obligation of
Mortgagor under any Lease. The assignment of Leases provided for in this Mortgage in no manner
places on Mortgagee any responsibility for (i) the control, care, management or repair of the
Property, (ii) the carrying out of any of the terms and conditions of the Leases, (iii) any waste
committed on the Property, or (iv) any dangerous or defective condition on the Property (whether
known or unknown).
(c) No approval of any Lease by Mortgagee shall be for any purpose other than to
protect Mortgagee's security and to preserve Mortgagee's rights under the Loan Documents, and
no such approval shall result in a waiver of a Default or Event of Default.
Article V
Negative Covenants.
Section 5.1 Encumbrances.
Mortgagor will not permit any of the Property to become subject to any Encumbrance other
than the Permitted Encumbrances. Within thirty (30) days after the filing of any mechanic's lien
or other Lien or Encumbrance against the Property, Mortgagor will promptly discharge the same
by payment or filing a bond or otherwise as permitted by Law. So long as Mortgagee's security
has been protected by the filing of a bond or otherwise in a manner satisfactory to Mortgagee in
its sole and absolute discretion, Mortgagor shall have the right to contest in good faith any Claim,
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Lien or Encumbrance, provided that Mortgagor does so diligently and without prejudice to
Mortgagee or delay in completing construction of the Improvements. Mortgagor shall give
Mortgagee Notice of any default under any Lien and Notice of any foreclosure or threat of
foreclosure with respect to any of the Property. Mortgagor agrees that it shall indemnify and hold
Mortgagee harmless against any loss or liability, cost or expense, including any judgments,
attorneys' fees and costs, costs of appeal bonds and printing costs, arising out of or relating to any
proceeding instituted by any claimant alleging priority over the lien of this Mortgage.
Section 5.2 Transfer of the Property.
Mortgagor will not Transfer, or contract to Transfer, all or any part of the Property or any
legal or beneficial interest therein (except for certain Transfers of the Accessories expressly
permitted in this Mortgage). Except as provided in Section 5.5 of the Construction Disbursement
Agreement, the Transfer of the partnership interests in Mortgagor (whether in one or more
transactions during the term of the Loan) shall be deemed to be a prohibited Transfer of the
Property.
Section 5.3 Removal, Demolition or Alteration of Accessories and Improvements.
Except to the extent permitted by the following sentence, no Improvements or Accessories
shall be removed, demolished or materially altered without the prior written consent of Mortgagee.
Mortgagor may remove and dispose of, free from the Lien of this Mortgage, such Accessories as
from time to time become worn out or obsolete or as otherwise contemplated in the Plans and
Specifications, provided that, either (a) at the time of, or prior to, such removal, any such
Accessories are replaced with other Accessories which are free from Liens other than Permitted
Encumbrances and have a value at least equal to that of the replaced Accessories (and by such
removal and replacement Mortgagor shall be deemed to have subjected such Accessories to the
Lien of this Mortgage), or (b) so long as a prepayment may be made without the imposition of any
premium pursuant to the Note, such Accessories are sold at fair market value for cash and the net
cash proceeds received from such disposition are paid over promptly to Mortgagee to be applied
to the prepayment of the principal of the Loan.
Section 5.4 Additional Improvements.
Mortgagor will not construct any Improvements other than those presently on the Land and
those described in the Loan Agreement and Construction Disbursement Agreement without the
prior written consent of Mortgagee, which consent shall not be unreasonably withheld. Mortgagor
will complete and pay for, within a reasonable time, any Improvements which Mortgagor is
permitted to construct on the Land. Mortgagor will construct and erect any permitted
Improvements (a) strictly in accordance with all applicable Laws and any private restrictive
covenants, (b) entirely on lots or parcels of the Land, (c) so as not to encroach upon any easement
or right of way or upon the land of others, and (d) wholly within any building restriction and
setback lines applicable to the Land.
Section 5.5 Restrictive Covenants, Zoning, etc.
Without the prior written consent of Mortgagee, Mortgagor will not initiate, join in, or
consent to any change in, any restrictive covenant, easement, zoning ordinance, or other public or
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private restrictions limiting or defining the uses which may be made of the Property. Mortgagor
(a) will promptly perform and observe, and cause to be performed and observed, all of the terms
and conditions of all agreements affecting the Property, and (b) will do or cause to be done all
things necessary to preserve intact and unimpaired any and all easements, appurtenances and other
interests and rights in favor of, or constituting any portion of, the Property.
Article VI
Events of Default.
The occurrence or happening, from time to time, of any one or more of the following shall
constitute an Event of Default under this Mortgage:
Section 6.1 Payment Obligations.
Subject to any applicable notice, grace, or cure periods, Mortgagor fails to pay any of the
Obligations when due, whether on the scheduled due date or upon acceleration, maturity or
otherwise.
Section 6.2 Transfers.
Mortgagor Transfers, or contracts to Transfer, all or any part of the Property or any legal
or beneficial interest therein (except for Transfers of the Accessories expressly permitted under
this Mortgage). Except as provided in Section 5.5 of the Construction Disbursement Agreement,
the Transfer of the partnership interests in Mortgagor (whether in one or more transactions during
the term of the Loan) shall be deemed to be a prohibited Transfer of the Property constituting an
Event of Default.
Section 6.3 Other Obligations.
Mortgagor fails to promptly perform or comply with any of the Obligations set forth in this
Mortgage (other than those expressly described in other Sections of this Article), and such failure
continues uncured for a period of thirty (30) days after Notice from Mortgagee to Mortgagor,
unless (a) such failure, by its nature, is not capable of being cured within such period, and (b)
within such period, Mortgagor commences to cure such failure and thereafter diligently prosecutes
the cure thereof, and (c) Mortgagor causes such failure to be cured no later than ninety (90) days
after the date of such Notice from Mortgagee.
Section 6.4 Event of Default Under Other Loan Documents.
An Event of Default (as defined therein) occurs under the Note, or the Loan Agreement, or
Mortgagor fails to promptly pay, perform, observe or comply with any obligation or agreement
contained in any of the other Loan Documents (within any applicable grace or cure period).
Section 6.5 Change in Zoning or Public Restriction.
Any change in any zoning ordinance or regulation or any other public restriction is enacted,
adopted or implemented that limits or defines the uses which may be made of the Property such
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that the present or intended use of the Property, as specified in the Loan Documents, would be in
violation of such zoning ordinance or regulation or public restriction, as changed.
Section 6.6 Default Under Leases.
Mortgagor fails duly to perform its obligations under any Lease, and such failure is not
cured within the grace period, if any, provided in the Lease.
Section 6.7 Default Under Other Lien Documents.
A default occurs under any other mortgage, deed of trust, or security agreement covering
the Property, including any Permitted Encumbrances, which is not cured within any applicable
notice, grace or cure period.
Section 6.8 Execution; Attachment.
Any execution or attachment is levied against any of the Property, and such execution or
attachment is not set aside, discharged or stayed within thirty (30) days after the same is levied.
Section 6.9 Notice Limiting Future Advances.
If Mortgagor, pursuant to Florida Statutes 697.04 (1) (b), as amended from time to time,
files for record a notice limiting the maximum amount which may be secured by this Mortgage.
Section 6.10 Investor Limited Partner Cure Rights.
Notwithstanding anything to the contrary contained in the Loan Documents, Mortgagee
hereby agrees that Mortgagor's Investor Limited Partner shall have the right, but not the obligation,
to cure any defaults of the Mortgagor hereunder and under any of the Loan Documents, and the
Mortgagee agrees to accept cures tendered by Investor Limited Partner on behalf of the Mortgagor
within the applicable cure periods set forth herein and therein.
Section 6.11 Default Under Ground Lease; Termination; Rejection.
The occurrence of: (i) any default or Event of Default (after the expiration of all applicable
notice and cure periods) with respect to the Land under the terms and conditions of the Ground
Lease; (ii) any termination or attempted termination of the Ground Lease; and/or (iii) the rejection
of the Ground Lease under the Bankruptcy Code, as provided in Section 3.7 hereof.
Article VII
Rights and Remedies.
Upon the happening of any Event of Default, Mortgagee shall have the right, in addition to
any other rights or remedies available to Mortgagee under any of the Loan Documents, applicable
Law, or equity to exercise any one or more of the following rights, powers or remedies:
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Section 7.1 Acceleration.
Mortgagee may accelerate any or all (as determined by Mortgagee in its sole discretion) of
the Obligations, whereupon such Obligations shall become immediately due and payable, and
Mortgagee may also terminate any Hedge Agreement and such Hedge Agreement shall
immediately terminate, all of the foregoing without notice of default, notice of acceleration or
intention to accelerate, presentment or demand for payment, protest, notice of protest, notice of
nonpayment or dishonor, or notices or demands of any kind or character (all of which are hereby
expressly waived by Mortgagor).
Section 7.2 Mortgagee's Right to Enter and Take Possession, Operate and Apply
Income.
(a) Mortgagee may demand that Mortgagor surrender the actual possession of the
Property and upon such demand, Mortgagor shall forthwith surrender same to Mortgagee and, to
the extent permitted by law, Mortgagee itself, or by such officers or agents as it may appoint, may
enter and take possession of all of the Property and may exclude Mortgagor and its agents and
employees wholly therefrom.
(b) If Mortgagor shall for any reason fail to surrender or deliver the Property or any
part thereof after Mortgagee's demand, Mortgagee may obtain a judgment or order conferring on
Mortgagee the right to immediate possession or requiring the Mortgagor to deliver immediate
possession to Mortgagee, to the entry of which judgment or decree the Mortgagor hereby
specifically consents.
(c) Mortgagee may from time to time: (A) continue and complete construction of, hold,
store, use, operate, manage and control the Property and conduct the business thereof; (B) make
all reasonably necessary maintenance, repairs, renewals, replacements, additions, betterments and
improvements thereto and thereon and purchase or otherwise acquire additional Personalty; (C)
insure or keep the Property insured; (D) exercise all the rights and powers of the Mortgagor in its
name or otherwise with respect to the same; and (E) enter into agreements with others (including
new Leases or amendments, extensions, or cancellations to existing Leases) all as Mortgagee from
time to time may determine in its sole discretion. Mortgagor hereby constitutes and irrevocably
appoints Mortgagee its true and lawful attorney -in -fact, which appointment is coupled with an
interest, with full power of substitution, and empowers said attorney or attorneys in the name of
Mortgagor, but at the option of said attorney -in -fact, to do any and all acts and execute any and all
agreements that Mortgagee may deem necessary or proper to implement and perform any and all
of the foregoing.
(d) The Mortgagee may, with or without taking possession of the Property as
hereinabove provided, collect and receive all the Rents therefrom, including those past due as well
as those accruing thereafter, and shall apply the monies so received first, to the payment of all
costs and expenses (including costs of arbitration, reasonable attorneys' fees and expenses)
incurred by Mortgagee and its agents in connection with the collection of same, whether or not in
possession of the Property, and second, in such order as Mortgagee may elect, to the payment of
the Obligations.
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Section 7.3 Proceedings To Recover Sums Due.
(a) If any installment or part of any Obligation shall fail to be paid when due,
Mortgagee shall be entitled to sue for and to recover judgment against the Mortgagor for the
amount so due and unpaid together with all costs and expenses (including costs of arbitration,
reasonable attorneys' fees and expenses) incurred by Mortgagee in connection with such
proceeding, together with interest thereon at the default rate under the Note from the date incurred
by Mortgagee. Any such judgment against the Mortgagor shall bear interest at the maximum rate
permitted by Law. All such costs and expenses shall be secured by this Mortgage and shall be due
and payable by Mortgagor immediately.
(b) If Mortgagor shall fail to pay upon the Mortgagee's demand, after acceleration as
provided herein, all of the unpaid Obligations, together with all accrued interest thereon,
Mortgagee shall be entitled to sue for and to recover judgment against the Mortgagor for the entire
amount so due and unpaid together with all costs and expenses (including costs of arbitration,
reasonable attorneys' fees and expenses) incurred by Mortgagee in connection with such
proceeding, together with interest thereon at the default rate under the Note from the date incurred
by Mortgagee. Any such judgment against the Mortgagor shall bear interest at the maximum rate
permitted by Law. All such costs and expenses shall be secured by this Mortgage and shall be
payable by Mortgagor immediately. Mortgagee's right under this Subsection may be exercised by
Mortgagee either before, after or during the pendency of any proceedings for the enforcement of
this Mortgage, including appellate proceedings.
(c) No recovery of any judgment as provided in Subsections (a) and (b) above and no
attachment or levy of any execution upon any of the Property or any other property shall in any
way affect. the lien of this Mortgage upon the Property or any part thereof, or any lien, rights,
powers, or remedies of Mortgagee hereunder, but such lien, rights, powers and remedies shall
continue unimpaired as before.
Section 7.4 Foreclosure.
(a) Mortgagee may institute proceedings for the partial or complete foreclosure of this
Mortgage and Mortgagee may, pursuant to any final judgment of foreclosure, sell the Property as
an entirety or in separate lots, units, or parcels.
(b) In case of a foreclosure sale of all or any part of the Property, the proceeds of sale
shall be applied in accordance with Section 7.14 hereof, and the Mortgagee shall be entitled to
seek a deficiency judgment against the Mortgagor to enforce payment of any and all Obligations
then remaining due and unpaid, together with interest thereon, and to recover a judgment against
the Mortgagor therefor, which judgment shall bear interest at the maximum rate permitted by Law.
(c) The Mortgagee is authorized to foreclose this Mortgage subject to the rights of any
tenants of the Property, or Mortgagee may elect which tenants Mortgagee desires to name as parties
defendant in such foreclosure and failure to make any such tenants parties defendant to any such
foreclosure proceedings and to foreclose their rights will not be, nor be asserted by the Mortgagor
to be, a defense to any proceedings instituted by the Mortgagee to collect the unpaid Obligations
or to collect any deficiency remaining unpaid after the foreclosure sale of the Property.
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Section 7.5 Receiver.
Mortgagee may apply to any court of competent jurisdiction to have a receiver appointed
to enter upon and take possession of the Property, collect the Rents therefrom and apply the same
as the court may direct, such receiver to have all of the rights and powers permitted under the Laws
of the State. The right of the appointment of such receiver shall be a matter of strict right without
regard to the value or the occupancy of the Property or the solvency or insolvency of Mortgagor.
The expenses, including receiver's fees, attorneys' fees, costs and agent's commission incurred
pursuant to the powers herein contained, together with interest thereon at the default rate under the
Note, shall be secured hereby and shall be due and payable by Mortgagor immediately without
notice or demand. Notwithstanding the appointment of any receiver or other custodian, Mortgagee
shall be entitled as pledgee to the possession and control of any cash or deposits at the time held
by, payable, or deliverable under the terms of this Mortgage to the Mortgagee, and the Mortgagee
shall have the right to offset the unpaid Obligations against any such cash or deposits in such order
as Mortgagee may elect.
Section 7.6 Remedies as to Personalty.
Mortgagee may exercise any or all of its rights and remedies under the Uniform
Commercial Code as adopted by the State as in effect from time to time, (or under the Uniform
Commercial Code in force from time to time in any other state to the extent the same is applicable
Law) or other applicable Law as well as all other rights and remedies possessed by Mortgagee, all
of which shall be cumulative. Mortgagee is hereby authorized and empowered to enter the Property
or other place where the Personalty may be located without legal process, and to take possession
of the Personalty without notice or demand, which hereby are waived to the maximum extent
permitted by the Laws of the State. Upon demand by Mortgagee, Mortgagor shall make the
Personalty available to Mortgagee at a place reasonably convenient to Mortgagee. Mortgagee may
sell at one or more public or private sales and for such price as Mortgagee may deem commercially
reasonable, any and all of the Personalty secured by this Mortgage, and any other security or
property held by Mortgagee and Mortgagee may be the purchaser of any or all of the Personalty.
Section 7.7 Other.
Mortgagee may institute and maintain any suits and proceedings as the Mortgagee may
deem advisable (i) to prevent any impairment of the Property by any acts which may be unlawful
or in violation of this Mortgage, (ii) to preserve or protect its interest in the Property, and (iii) to
restrain the enforcement of or compliance with any Laws that may be unconstitutional or otherwise
invalid, if the enforcement of or compliance with such Laws might impair the security hereunder
or be prejudicial to the Mortgagee's interest.
Section 7.8 Remedies Cumulative and Concurrent.
No right, power or remedy of Mortgagee as provided in the Note, this Mortgage or the
other Loan Documents is intended to be exclusive of any other right, power, or remedy of
Mortgagee, but each and every such right, power and remedy shall be cumulative and concurrent
and in addition to any other right, power or remedy available to Mortgagee now or hereafter
existing at law or in equity and may be pursued separately, successively or together against
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Mortgagor, any guarantor, or any endorser, co -maker, or surety of the Obligations, or the Property
or any part thereof, or any one or more of them, at the sole discretion of Mortgagee. The failure of
Mortgagee to exercise any such right, power or remedy shall in no event be construed as a waiver
or release thereof.
Section 7.9 Waiver, Delay or Omission.
No waiver of any Event of Default hereunder shall extend to or affect any subsequent or
any other Event of Default then existing, or impair any rights, powers or remedies consequent
thereon, and no delay or omission of Mortgagee to exercise any right, power or remedy shall be
construed to waive any such Event of Default or to constitute acquiescence therein.
Section 7.10 Credit of Mortgagee.
To the maximum extent permitted by the Laws of the State, upon any sale made under or
by virtue of this Article, Mortgagee may bid for and acquire the Property, or any part thereof, and
in lieu of paying cash therefor may apply to the purchase price, any portion of or all of the unpaid
Obligations in such order as Mortgagee may elect.
Section 7.11 Sale.
Any sale or sales made under or by virtue of this Article shall operate to divest all the estate,
right, title, interest, claim and demand whatsoever at law or in equity, of the Mortgagor and all
Persons, except tenants pursuant to Leases approved by Mortgagee, claiming by, through or under
Mortgagor in and to the properties and rights so sold, whether sold to Mortgagee or to others.
Section 7.12 Proofs of Claim.
In the case of any receivership, insolvency, bankruptcy, reorganization, arrangement,
adjustment, composition, seizure of the Property by any Governmental Authority, or other judicial
proceedings affecting the Mortgagor, any guarantor, any endorser, co -maker, or surety of the
Obligations, or any of their respective properties, the Mortgagee, to the extent permitted by law,
shall be entitled to file such proofs of claim and other documents as may be necessary or advisable
in order to have its claim allowed in such proceedings for the entire unpaid Obligations at the date
of the institution of such proceedings, and for any additional amounts which may become due and
payable after such date.
Section 7.13 Waiver of Redemption, Notice, Marshaling, Etc.
Mortgagor hereby waives and releases, for itself and anyone claiming through, by, or under
it, to the maximum extent permitted by the Laws of the State:
(a) all benefit that might accrue to Mortgagor by virtue of any present or future Law
exempting the Property, or any part of the proceeds arising from any sale thereof, from attachment,
levy or sale on execution, or providing for any appraisement, valuation, stay of execution,
exemption from civil process, redemption or extension of time for payment,
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(b) unless specifically required herein, all notices of default, or Mortgagee's actual
exercise of any option or remedy under the Loan Documents, or otherwise, and
(c) any right to have the Property marshaled.
Section 7.14 Application of Proceeds.
The proceeds of any sale of all or any portion of the Property shall be applied by Mortgagee
first, to the payment of receiver's fees and expenses, if any, and to the payment of all costs and
expenses (including reasonable attorneys' fees and expenses) incurred by Mortgagee, together
with interest thereon at the default rate under the Note from the date so incurred, in connection
with any entry, action or proceeding under this Article, and second, in such order as Mortgagee
may elect, to the payment of the Obligations. Mortgagor shall be and remain liable to Mortgagee
for any difference between the net proceeds of sale and the amount of the Obligations until all of
the Obligations have been paid in full.
Section 7.15 Discontinuance of Proceedings.
If Mortgagee shall have proceeded to enforce any right under any Loan Document and such
proceedings shall have been discontinued or abandoned for any reason, then except as may be
provided in any written agreement between Mortgagor and Mortgagee providing for the
discontinuance or abandonment of such proceedings, Mortgagor and Mortgagee shall be restored
to their former positions and the rights, remedies and powers of Mortgagee shall continue as if no
such proceedings had been instituted.
Section 7.16 Mortgagee's Actions.
Mortgagee may, at any time without notice to any Person and without consideration, do or
refrain from doing any or all of the following actions, and neither the Mortgagor, any guarantor,
endorser, co -maker, or surety of the Obligations, nor any other Person (hereinafter in this Section
7.16 collectively referred to as the "Obligor") now or hereafter liable for the payment and
performance of the Obligations shall be relieved from the payment and performance thereof, unless
specifically released in writing by Mortgagee: (a) renew, extend or modify the terms of the Note,
this Mortgage, and the other Loan Documents, or any of them; (b) forbear or extend the time for
the payment or performance of any or all of the Obligations; (c) apply payments by any Obligor
to the reduction of the unpaid Obligations in such manner, in such amounts, and at such times and
in such order and priority as Mortgagee may see fit; (d) release any Obligor; (e) substitute or
release in whole or in part the Property or any other collateral or any portion thereof now or
hereafter held as security for the Obligations without affecting, disturbing or impairing in any
manner whatsoever the validity and priority of the lien of this Mortgage upon the Property which
is not released or substituted, or the validity and priority of any security interest of the Mortgagee
in such other collateral which is not released or substituted; (f) subordinate the lien of this
Mortgage or the lien of any other security interest in any other collateral now or hereafter held as
security for the Obligations; (g) join in the execution of a plat or replat of the Land (provided,
however, notwithstanding the foregoing, Mortgagee will join in such plat or replat of the Land so
long as such plat or replat is acceptable to Mortgagee); (h) join in and consent to the filing of a
declaration of condominium or declaration of restrictive covenants regarding all or any part of the
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31
Land; (i) consent to the granting of any easement on the Land; and 0) generally deal with any
Obligor or any other party as Mortgagee may see fit.
Section 7.17 Other Remedies.
Mortgagee shall have the right from time to time to protect, exercise and enforce any legal
or equitable remedy against Mortgagor provided under the Loan Documents or by applicable
Laws.
Article VIII
Miscellaneous.
Section 8.1 Rights, Powers and Remedies Cumulative.
Each right, power and remedy of Mortgagee as provided for in this Mortgage, or in any of
the other Loan Documents or now or hereafter existing by Law, shall be cumulative and concurrent
and shall be in addition to every other right, power or remedy provided for in this Mortgage, or in
any of the other Loan Documents or now or hereafter existing by Law, and the exercise or
beginning of the exercise by Mortgagee of any one or more of such rights, powers or remedies
shall not preclude the simultaneous or later exercise by Mortgagee of any or all such other rights,
powers or remedies.
Section 8.2 No Waiver by Mortgagee.
No course of dealing or conduct by or among Mortgagee and Mortgagor shall be effective
to amend, modify or change any provisions of this Mortgage or the other Loan Documents. No
failure or delay by Mortgagee to insist upon the strict performance of any term, covenant or
agreement of this Mortgage or of any of the other Loan Documents, or to exercise any right, power
or remedy consequent upon a breach thereof, shall constitute a waiver of any such term, covenant
or agreement or of any such breach, or preclude Mortgagee from exercising any such right, power
or remedy at any later time or times. By accepting payment after the due date of any of the
Obligations, Mortgagee shall not be deemed to waive the right either to require prompt payment
when due of all other Obligations, or to declare an Event of Default for failure to make prompt
payment of any such other Obligations. Neither Mortgagor nor any other Person now or hereafter
obligated for the payment of the whole or any part of the Obligations shall be relieved of such
liability by reason of (a) the failure of Mortgagee to comply with any request of Mortgagor or of
any other Person to take action to foreclose this Mortgage or otherwise enforce any of the
provisions of this Mortgage, or (b) any agreement or stipulation between any subsequent owner or
owners of the Property and Mortgagee, or (c) Mortgagee's extending the time of payment or
modifying the terms of this Mortgage or any of the other Loan Documents without first having
obtained the consent of Mortgagor or such other Person. Regardless of consideration, and without
the necessity for any notice to or consent by the holder of any subordinate Lien on the Property,
Mortgagee may release any Person at any time liable for any of the Obligations or any part of the
security for the Obligations and may extend the time of payment or otherwise modify the terms of
this Mortgage or any of the other Loan Documents without in any way impairing or affecting the
Lien of this Mortgage or the priority of this Mortgage over any subordinate Lien. The holder of
any subordinate Lien shall have no right to terminate any Lease regardless of whether or not such
Vista Breeze
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32
Lease is subordinate to this Mortgage. Mortgagee may resort to the security or collateral described
in this Mortgage or any of the other Loan Documents in such order and manner as Mortgagee may
elect in its sole discretion.
Section 8.3 Waivers and Agreements Regarding Remedies.
To the full extent Mortgagor may do so, Mortgagor hereby voluntarily and knowingly:
(a) agrees that it will not at any time plead, claim or take advantage of any Laws now
or hereafter in force providing for any appraisement, valuation, stay, extension or redemption, and
waives and releases all rights of redemption, valuation, appraisement, stay of execution, exemption
from civil process, extension of time for payment and notice of election to accelerate the
Obligations;
(b) waives all rights to a marshaling of the assets of Mortgagor, including the Property,
or to a sale in the inverse order of alienation in the event of a foreclosure of the Property, and
agrees not to assert any right under any Law pertaining to the marshaling of assets, the sale in
inverse order of alienation, the exemption of homestead, the administration of estates of decedents,
or other matters whatsoever to defeat, reduce or affect the right of Mortgagee under the terms of
this Mortgage to a sale of the Property without any prior or different resort for collection, or the
right of Mortgagee to the payment of the Obligations out of the proceeds of sale of the Property in
preference to every other claimant whatsoever;
(c) waives any right to bring or utilize any defense, counterclaim or setoff, other than
one which denies the existence or sufficiency of the facts upon which any foreclosure action is
grounded. If any defense, counterclaim or setoff, other than one permitted by the preceding clause,
is timely raised in a foreclosure action, such defense, counterclaim or setoff shall be dismissed. If
such defense, counterclaim or setoff is based on a Claim which could be tried in an action for
money damages, such Claim may be brought in a separate action which shall not thereafter be
consolidated with the foreclosure action. The bringing of such separate action for money damages
shall not be deemed to afford any grounds for staying the foreclosure action; and
(d) waives and relinquishes any and all rights and remedies which Mortgagor may have
or be able to assert by reason of the provisions of any Laws pertaining to the rights and remedies
of sureties.
Section 8.4 Successors and Assigns.
All of the grants, covenants, terms, provisions and conditions of this Mortgage shall run
with the Land and shall apply to and bind the successors and assigns of Mortgagor (including any
permitted subsequent owner of the Property), and inure to the benefit of Mortgagee, its successors
and assigns.
Section 8.5 No Warranty by Mortgagee.
By inspecting the Property or by accepting or approving anything required to be observed,
performed or fulfilled by Mortgagor or to be given to Mortgagee pursuant to this Mortgage or any
of the other Loan Documents, Mortgagee shall not be deemed to have warranted or represented
Vista Breeze
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33
the condition, sufficiency, legality, effectiveness or legal effect of the same, and such acceptance
or approval shall not constitute any warranty or representation with respect thereto by Mortgagee.
Section 8.6 Amendments.
This Mortgage may not be modified or amended except by an agreement in writing, signed by
the party against whom enforcement of the change is sought.
Section 8.7 Severability.
In the event any one or more of the provisions of this Mortgage or any of the other Loan
Documents shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part
or in any other respect, or in the event any one or more of the provisions of the Loan Documents
operates or would prospectively operate to invalidate this Mortgage or any of the other Loan
Documents, then and in either of those events, at the option of Mortgagee, such provision or
provisions only shall be deemed null and void and shall not affect the validity of the remaining
Obligations, and the remaining provisions of the Loan Documents shall remain operative and in
full force and effect and shall in no way be affected, prejudiced or disturbed thereby.
Section 8.8 Notices.
All Notices required or which any party desires to give hereunder or under any other Loan
Document shall be in writing and, unless otherwise specifically provided in such other Loan
Document, shall be deemed sufficiently given or furnished if delivered by personal delivery, by
nationally recognized overnight courier service or by certified United States mail, postage prepaid,
addressed to the party to whom directed at the applicable address specified in the Preamble to this
Mortgage (unless changed by similar notice in writing given by the particular party whose address
is to be changed). Any Notice shall be deemed to have been given either at the time of personal
delivery or, in the case of courier or mail, as of the date of first attempted delivery at the address
and in the manner provided herein; provided that service of a Notice required by any applicable
statute shall be considered complete when the requirements of that statute are met.
Notwithstanding the foregoing, no notice of change of address shall be effective except upon actual
receipt. This Section 8.8 shall not be construed in any way to affect or impair any waiver of notice
or demand provided in this Mortgage or in any other Loan Document or to require giving of notice
or demand to or upon any Person in any situation or for any reason. Notwithstanding the foregoing,
Mortgagee agrees to provide notices to the Investor Limited Partner as and to the extent required
by Section 5.3 of the Construction Disbursement Agreement.
Section 8.9 Intentionally Omitted.
Section 8.10 Rules of Construction.
The words "hereof," "herein," "hereunder," "hereto," and other words of similar import
refer to this Mortgage in its entirety. The terms "a ree" and "agreements" mean and include
"covenant" and "covenants." The words "include" and "including" shall be interpreted as if
followed by the words "without limitation." The headings of this Mortgage are for convenience of
reference only and shall not be considered a part hereof and are not in any way intended to define,
limit or enlarge the terms hereof. Any reference to a Property street address(es) is for
Vista Breeze
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34
administrative and reference purposes only. In the event of any conflict between a Property street
address(es) listed herein and Exhibit A attached hereto, the legal description set forth on Exhibit
A shall control. All references (a) made in the neuter, masculine or feminine gender shall be
deemed to have been made in all such genders, (b) made in the singular or plural number shall be
deemed to have been made, respectively, in the plural or singular number as well, (c) to the Loan
Documents are to the same as extended, amended, restated, supplemented or otherwise modified
from time to time unless expressly indicated otherwise, (d) to the Land, Improvements, Personalty,
Real Property or Property shall mean all or any portion of each of the foregoing, respectively, and
(e) to Articles or Sections are to the respective Articles or Sections contained in this Mortgage
unless expressly indicated otherwise. Any term used or defined in the Uniform Commercial Code
of the State, as in effect from time to time, which is not defined in this Mortgage shall have the
meaning ascribed to that term in the Uniform Commercial Code of the State. If a term is defined
in Article 9 of the Uniform Commercial Code of the. State differently than in another Article of the
Uniform Commercial Code of the State, the term shall have the meaning specified in Article 9.
Section 8.11 Governing Law.
This Mortgage shall be construed, governed and enforced in accordance with the Laws in
effect from time to time in the State (without regard to its conflicts of law principles).
Section 8.12 Time of Essence.
It is specifically agreed that time is of the essence as to all matters provided for in this
Mortgage.
Section 8.13 Survival of Warranties and Covenants.
The warranties, representations, covenants and agreements set forth in this Mortgage shall
survive the making of the Loan and the execution and delivery of the Note, and shall continue in
full force and effect until all of the Obligations shall have been paid and performed in full.
Section 8.14 Forum.
Mortgagor hereby irrevocably submits generally and unconditionally for itself and in
respect of its property to the non-exclusive jurisdiction of any state court or any United States
federal court sitting in the State specified in the governing law section of this Mortgage and to the
non-exclusive jurisdiction of any state court or any United States federal court sitting in the state
in which any of the Property is located. Mortgagor hereby irrevocably waives, to the fullest extent
permitted by Law, any objection that Mortgagor may now or hereafter have to the laying of venue
in any such court and any claim that any such court is an inconvenient forum. Mortgagor hereby
agrees and consents that, in addition to any methods of service of process provided for under
applicable Law, all service of process in any such suit, action or proceeding in any state court or
any United States federal court sitting in the State specified in the governing law section of this
Mortgage may be made by certified or registered mail, return receipt requested, directed to
Mortgagor at its address for notice set forth in this Mortgage, or at a subsequent address of which
Mortgagee received actual notice from Mortgagor in accordance with the notice section of this
Mortgage, and service so made shall be complete five (5) days after the same shall have been so
mailed. Nothing herein shall affect the right of Mortgagee to serve process in any manner permitted
Vista Breeze
Mortgage
35
by Law or limit the right of Mortgagee to bring proceedings against Mortgagor in any other court
or jurisdiction.
Section 8.15 WAIVER OF JURY TRIAL.
MORTGAGOR AND MORTGAGEE HEREBY IRREVOCABLY WAIVE, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING OR ACTION DIRECTLY
OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS MORTGAGE OR ANY
OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO HEREBY:
(a) CERTIFIES THAT NO REPRESENTATIVE, AGENT, OR ATTORNEY OF
ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER;
(b) ACKNOWLEDGES THAT THIS WAIVER AND THE PROVISIONS OF
THIS SECTION WERE A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING
INTO THE LOAN DOCUMENTS;
(c) CERTIFIES THAT THIS WAIVER IS KNOWINGLY, WILLINGLY, AND
VOLUNTARILY MADE;
(d) AGREES AND UNDERSTANDS THAT THIS WAIVER CONSTITUTES A
WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH
PROCEEDING OR ACTION, INCLUDING CLAIMS AGAINST PARTIES WHO ARE
NOT PARTIES TO THIS OR ANY OTHER AGREEMENT, AND FURTHER AGREES
THAT SUCH PARTY SHALL NOT SEEK TO CONSOLIDATE ANY SUCH
PROCEEDING OR ACTION WITH ANY OTHER PROCEEDING OR ACTION IN
WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED;
(e) AGREES THAT MORTGAGOR AND MORTGAGEE ARE EACH
HEREBY AUTHORIZED TO FILE A COPY OF THIS SECTION IN ANY PROCEEDING
OR ACTION AS CONCLUSIVE EVIDENCE OF THIS WAIVER OF JURY TRIAL; AND
(f) REPRESENTS AND WARRANTS THAT SUCH PARTY HAS BEEN
REPRESENTED IN THE SIGNING OF THIS MORTGAGE AND IN THE MAKING OF
THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE
OPPORTUNITY TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL
SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY
TO DISCUSS THIS WAIVER WITH COUNSEL.
Vista Breeze
Mortgage
36
Section 8.16 Acknowledgement Regarding Any Supported QFCs.
Section 6.28 of the Construction Disbursement Agreement is incorporated herein by
reference as if fully set forth herein and Mortgagor acknowledges and agrees to be bound by the
terms of said section for any QFC Credit Support and/or Supported QFC, as such terms may be
defined in the Construction Disbursement Agreement.
Section 8.17 Entire Agreement.
The Loan Documents constitute the entire understanding and agreement between
Mortgagor and Mortgagee with respect to the transactions arising in connection with the Loan, and
supersede all prior written or oral understandings and agreements between Mortgagor and
Mortgagee with respect to the matters addressed in the Loan Documents. In particular, and without
limitation, the terms of any commitment by Mortgagee to make the Loan are merged into the Loan
Documents. Except as incorporated in writing into the Loan Documents, there are no
representations, understandings, stipulations, agreements or promises, oral or written, with respect
to the matters addressed in the Loan Documents.
Vista Breeze
Mortgage
[SIGNATURE PAGE TO FOLLOW]
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
37
IN WITNESS WHEREOF, Mortgagor has caused this Mortgage to be executed as of the
date first written above.
WITNESS OR ATTEST: MORTGAGOR:
VISTA BREEZE, LTD., a Florida limited
partnership
Name: 1'Z,. e—,oa By: APC Vista Breeze, LLC,
a Florida limited liability company,
its managing general ppaartn r
"
Name: 1 1e, �,lCie�l�4luY�
STATE OF FLORIDA
COUNTY OF M
The foregoing instrument was acknowledged before me by means of Efphysical presence
or ❑ online notarization, this y_lday of November, 2023 by Kenneth Naylor, as Vice President
of APC Vista Breeze, LLC, the managing general partner of Vista Breeze, LTD. He is personally
known to me or has
Vista Breeze
Mortgage
Notary Public
Serial Number (if any): P }l213 Leo
My Commission Expires: 1 / 4 12Le
(NOTARY SEAL)
Notary Public State of Florida
Rebeca Martinez
My Commission
HH 213601
Exp. 1/4/2026
S-1
OR B.K 34013 PG 2615
LAST PAGE
EXHIBIT A
Legal Description
That leasehold estate created by that Second Amended and Restated Ground Lease, by and between
Vista Breeze, Ltd., a Florida limited partnership, and the Housing Authority of The City of Miami
Beach, a public body corporate and politic, as evidenced by that Amended and Restated
Memorandum of Lease to be recorded over the following described lands:
PARCEL 1:
LOT 3, 4 and 5, Block 55, OF NORMANDY GOLF COURSE, ACCORDING TO THE PLAT
THEREOF, AS RECORDED IN PLAT BOOK 44, AT PAGE 62, OF THE PUBLIC RECORDS
OF MIAMI-DADE COUNTY, FLORIDA.
PARCEL 2:
LOTS 6, 7 and 8, BLOCK 56, NORMANDY GOLF COURSE SUBDIVISION, ACCORDING
TO THE PLAT THEREOF RECORDED IN PLAT BOOK 44, PAGE 62, OF THE PUBLIC
RECORDS OF MIAMI-DADE COUNTY, FLORIDA.
Vista Breeze
Mortgage
Ex A-1