Common use of Term of the Clause in Contracts

Term of the. Subordinate Loan. The original principal amount of the Subordinate Note is $__________. Interest on the Subordinate Note accrues monthly at the rate of __________ percent (____%) per annum. The Subordinate Note is due and payable in full on __________, 20__, (the “Maturity”). The principal of the Subordinate Note will [be fully amortized at Maturity][have a balloon principal payment of $__________ due at Maturity]. The promissory note evidencing the Subordinate Note obligates Borrower to make payments as follows, subject to available Surplus Cash: __________. As long as HUD is the insurer or holder of the Senior Note on FHA Project No. __________, any payments due from income of the Project under the Subordinate Note shall be payable only (i) from permissible distributions of {omit “permissible distributions from” if Borrower is profit-motivated} Surplus Cash of the Project; but, in no event greater than seventy-five percent (75%) of the total amount of Surplus Cash; or (ii) from monies received from Non-Project Sources. Notwithstanding any provision in the Borrower Regulatory Agreement to the contrary, Borrower shall calculate Surplus Cash prior to taking a Distribution and shall apply 75 percent of Surplus Cash to make any required payments due on the Subordinate Note. No prepayment of the Subordinate Note shall be made until after final endorsement by HUD of the Senior Note, unless such prepayment is made from Non-Project Sources and is approved in writing by HUD. The restriction on payment imposed by this Section shall not excuse any default caused by the failure of Borrower to pay the indebtedness evidenced by the Subordinate Note.

Term of the. Subordinate Loan. The original principal amount of the Subordinate Note is $__________. Interest on the Subordinate Note accrues monthly at the rate of __________ percent (____%) per annum. The Subordinate Note is due and payable in full on __________, 20__, (the “Maturity”). The principal of the Subordinate Note will [be fully amortized at Maturity][have a balloon principal payment of $__________ due at Maturity]. The promissory note evidencing the Subordinate Note obligates Borrower to make payments as follows, subject to available Surplus Cash: __________. As long as HUD is the insurer or holder of the Senior Note on FHA Project No. __________, any payments due from income of the Project under the Subordinate Note shall be payable only (i) from permissible distributions of {omit “permissible distributions from” if Borrower is profit-motivated} Surplus Cash of the Project; but, in no event greater than seventy-five percent (75%) of the total amount of Surplus Cash; or (ii) from monies received from Non-Project Sources. Notwithstanding any provision in the Borrower Regulatory Agreement to the contrary, Borrower shall calculate Surplus Cash prior to taking a Distribution and shall apply 75 percent of Surplus Cash to make any required payments due on the Subordinate Note. No prepayment of the Subordinate Note shall be made until after final endorsement by HUD of the Senior Note, unless such prepayment is made from Non-Project Sources and is approved in writing by HUD. The restriction on payment imposed by this Section shall not excuse any default caused by the failure of Borrower to pay the indebtedness evidenced by the Subordinate Note.

Term of the. Subordinate Loan. The original principal amount of the Subordinate Note is $__________. Interest on the Subordinate Note accrues monthly at the rate of __________ percent (____%) per annum. The Subordinate Note is due and payable in full on __________, 20__, (the “Maturity”). The principal of the Subordinate Note will [be fully amortized at Maturity][have a balloon principal payment of $__________ due at Maturity]. The promissory note evidencing the Subordinate Note obligates Borrower to make payments as follows, subject to available Surplus Cash: __________. As long as HUD is the insurer or holder of the Senior Note on FHA Project No. __________, any payments due from income of the Project under the Subordinate Note shall be payable only (i) from permissible distributions of {omit “permissible distributions from” if Borrower is profit-motivated} Surplus Cash of the Project; but, in no event greater than seventy-five percent (75%) of the total amount of Surplus Cash; or (ii) from monies received from Non-Project Sources. Notwithstanding any provision in the Borrower Regulatory Agreement to the contrary, Borrower shall calculate Surplus Cash prior to taking a Distribution and shall apply 75 percent of Surplus Cash to make any required payments due on the Subordinate Note. In the event that the Healthcare Regulatory Agreement—Borrower (Form HUD 92466-ORCF) Borrower’s Regulatory Agreement allows for Distributions prior to a calculation of Surplus Cash, Borrower shall not take Distributions prior to making the surplus cash calculation as referenced in calculating Surplus cash the Healthcare Regulatory Agreement –Borroweras of the applicable fiscal year end and prior to making any payment thus due on this Surplus Cash Noteto pay this Surplus Cash Note. Payments under this Surplus Cash Nnote may only be made after a positive Surplus Cash computation for the last accounting period. No prepayment of the Subordinate Note shall be made until after final endorsement by HUD of the Senior Note, unless such prepayment is made from Non-Project Sources and is approved in writing by HUD. The restriction on payment imposed by this Section shall not excuse any default caused by the failure of Borrower to pay the indebtedness evidenced by the Subordinate Note.