Preview
FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024
EXHIBIT A
FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024
Loan No:
LOAN AGREEMENT
Dated as of October 11, 2019
Between
BRONX 1202 SPOFFORD AVENUE L.P., a New York limited partnership,
BRONX 444 EAST 187"STREET L.P., a New York limited partnership and
187"
BRONX 441 EAST STREET L.P., a New York limited partnership,
as Borrower
and
SABAL CAPITAL % LLC, a Delaware limited liability company,
as Lender
63579-19/rhe Ernerald Bronx Portfolio 2
FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024
TABLE OF CONTENTS
Page
ARTICLE 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION.........................,,................. 1
Section 1.1 Definitions .................................................................................................... 1
Section 1.2 Principles of Construction .......................................................................... 17
ARTICLE 2 GENERAL TERMS................................................................................................. 17
Section 2.1 Loan Commitment; Disbursement to Borrower ......................................... 17
Section 2.2 The Loan..................................................................................................... 17
Section 2.3 Disbursement to Borrower.......................................................................... 17
Section 2.4 The Note and the other Loan Documents ................................................... 17
Section 2.5 Interest Rate................................................................................................ 17
Section 2.6 Loan Payments............................................................................................ 18
Section 2.7 Prepayments................................................................................................ 19
ARTICLE 3 REPRESENTATIONS AND WARRANTIES........................................................ 20
Section 3.1 Legal Status and ......................................................................... 20
Authority
Section 3 .2 Validit y of Documents ................................................................................ 20
Section 3.3 Litigation..................................................................................................... 21
Section 3.4 Agreements ................................................................................................. 21
Section 3.5 Financial Condition..................................................................................... 21
Section 3.6 Disclosure ................................................................................................... 21
Section 3.7 No Plan Assets; FIRRMA........................................................................... 21
Section 3.8 Not a Foreign Person .................................................................................. 22
Section 3.9 Business Purposes....................................................................................... 22
Section 3.10 Borrower's Principal Place of Business .................................................... 22
Section 3.11 Status of Property...................................................................................... 23
Section 3.12 Financial Information ............................................................................... 24
Section 3.13 Condemnation........................................................................................... 24
Section 3.14 Separate Lots............................................................................................. 24
Section 3.15 Insurance................................................................................................... 24
Section 3.16 Use of Property......................................................................................... 24
Section 3.17 Leases and Rent Roll ................................................................................ 24
Section 3.18 Management Agreement........................................................................... 25
Section 3.19 Illegal Activity/Forfeiture ......................................................................... 25
Section 3.20 Taxes......................................................................................................... 25
Section 3.21 Third Party Representations...................................................................... 25
Section 3.22 Federal Reserve Regulations .................................................................... 25
Section 3.23 Investment Act ......................................................................... 26
Company
Section 3.24 Fraudulent Conveyance............................................................................ 26
Section 3.25 Embargoed Person.................................................................................... 26
Section 3.26 Anti-Money Laundering and Economic Sanctions................................... 26
Section 3.27 Organizational Chart ................................................................................. 28
Section 3.28 Bank Holding Company ........................................................................... 28
Section 3.29 No Change in Facts or Circumstances; Disclosure................................... 28
LOAN AGREEMENT - Page i
63579-19/The Emerald Bmax Portfolio 2
FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024
TABLE OF CONTENTS
(Continued)
Page
ARTICLE 4 BORROWER COVENANTS.................................................................................. 28
Section 4.1 Existence..................................................................................................... 28
Section 4.2 Legal Requirements.................................................................................... 29
Section 4.3 Maintenance and Use of Property............................................................... 29
Section 4,4 Waste .......................................................................................................... 29
Section 4.5 Taxes and Other Charges......................................,,.................................... 29
Section 4.6 Litigation..................................................................................................... 30
Section 4.7 Access to Property ...................................................................................... 30
Section 4.8 Notice of Default ........................................................................................ 30
Section 4.9 Cooperate in Legal Proceedings ................................................................. 30
Section 4.10 Performance by Borrower......................................................................... 31
Section 4.11 Books and Records ................................................................................... 31
Section 4.12 Estoppel Certificates................................................................................. 33
Section 4.13 Leases and Rents....................................................................................... 34
Section 4.14 Management Agreement........................................................................... 34
Section 4.15 Payment for Labor and Materials ............................................................. 36
Section 4.16 Performance of Other Agreements ........................................................... 37
Section 4.17 Debt Cancellation ..................................................................................... 37
.
S ection 4.18 ERISA; FIRRMA ..................................................................................... 37
Section 4.19 No Joint Assessment................................................................................. 38
Section 4.20 Alterations................................................................................................. 38
Section 4.21 Code Violations ........................................................................................ 38
Section 4.22 Surveys...................................................................................................... 38
RATICLE 5 ENTITY COVENANTS.......................................................................................... 39
Section 5.1 Single Asset Entity. Borrower has not and will not: .................................. 39
Section 5.2 Change ofName, Identity or Structure....................................................... 40
Section 5.3 Business and Operations............................................................................. 40
6 NO SALE OR EN C U MARTICLE
BRANCE-......................................................................... 40
Section 6.1 Transfer Definitions.................................................................................... 40
Section 6.2 No Sale/Encumbrance................................................................................. 40
Section 6.3 Permitted Equity Transfers......................................................................... 41
Section 6.4 Lender's Rights ............................-............................................................. 42
Section 6.5 Economic Sanctions, Anti-Money Laundering and Transfers.................... 42
ARTICLE 7 INSURANCE; CASUALTY; CONDEMNATION; RESTORATION................... 43
Section 7.1 Insurance..................................................................................................... 43
Section 7.2 Casualty ...................................................................................................... 48
Section 7.3 Condemnation............................................................................................. 48
Section 7.4 Restoration....-........................................................................................... 49
8 RESERV FUNDS..................................................................................................
EARTICLE 53
Section 8.1 Immediate Repair Funds..............-............................................................ 53
Section 8.2 Tax and Insurance Funds ............................................................................ 53
Section 8.3 The Accounts Generally ............................................................................. 54
LOAN AGREEMENT - Page ii
63579-19/The Emerald Bronx Portfolio 2.
FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024
TABLE OF CONTENTS
(Continued)
Page
Section 8.4 Other Reserve Funds................................................................................... 56
ARTICLE 9 INTENTIONALLY OMITTED .............................................................................. 57
DEFAULT·
ARTICLE 10 EVENTS OF , REMEDIES ................................................................. 57
Section 10.1 Event of Default........................................................................................ 57
Section 10.2 Remedies................................................................................................... 60
ART CLE 11 SECONDARY MARKET ..................................................................................... 62
Section 11.1 Securitization .,.......................................................................................... 62
Section 11.2 Disclosure ................................................................................................. 63
Section 11.3 Reserves/Escrows ..................................................................................... 64
Section 11.4 Servicer..................................................................................................... 65
Section 11.5 Rating Agency Costs ................................................................................ 65
Section 11.6 Mezzanine Option..................................................................................... 65
Section 11.7 Conversion 10 Registered Form................................................................ 65
ARTICLE 12 INDEMNIFICATIONS ......................................................................................... 66
Section 12.1 General Indemnification........................................................................... 66
Section 12.2 Mortgage and Intangible Tax Indenmification...........”............................ 66
Section 12.3 ERISA and FIRRMA Indemnification..................................................... 66
Section 12.4 Duty to Defend, Legal Fees and Other Fees and Expenses...................... 66
Section 12.5 Survival..................................................................................................... 67
ARTICLE 13 EXCULPATION..................................................................,................................. 67
Section 13.1 Exculpation............................................................................................... 67
1 NOT CI4EARTICLE
S............................................................................................................... 69
Section 14.1 Notices ...................................................................................................... 69
TICLE 1 5 F UR HER SSURANCES
ARTA .................................................................................. 70
Section 15.1 Replacement Documents .......................................................................... 70
Section 15 2 Recording of Security Instrument, etc...................................................... 71
Section 15.3 Further Acts, etc........................................................................................ 71
Section 15.4 Changes in Tax, Debt, Credit and Documentary Laws ................. 71
Stamp
ARTICLE 16 WAIVERS ............................................................................................................. 72
Section 16.1 Remedies Cumulative; Waivers................................................................ 72
Section 16.2 Modification, Waiver in Writing .............................................................. 72
Section 16.3 Delay Not a Waiver .................................................................................. 72
Section 16.4 Waiver of Trial Jury............................................................................. 73
by
Section 16.5 Waiver ofNotice....................................................................................... 73
Section 16.6 Remedies of Borrower.............................................................................. 73
Section 16.7 Marshalling and Other Matters ................................................................. 73
Section 16.8 Waiver of Statute of Limitations .............................................................. 74
Section 16.9 Waiver of Counterclaim............................................................................ 74
LOAN AGREEMENT -Page iii
63579-19/The Emerald Bronx PortfMio 2
FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024
TABLE OF CONTENTS
(Continued)
Page
. . .
S ection 16.10 Sole Discretion of Lender....................................................................... 74
ARTICLE 17 MISCELLANEOUS .............................................................................................. 74
Section 17.1 Survival..................................................................................................... 74
Section 17.2 Governing Law ......................................................................................... 74
Section 17.3 Headings ................................................................................................... 76
Section 17.4 Severability ............................................................................................... 76
Section 17.5 Preferences ................................................................................................ 76
Section 17.6 Expenses ................................................................................................... 76
Section 17.7 Cost of Enforcement................................................................................. 77
Section 17.8 Schedules Incorporated............................................................................. 78
Section 17.9 Offsets, Counterclaims and Defenses ....................................................... 78
Section 17.10 No Joint Venture or Partnership; No Third Party Beneficiaries............. 78
Section 17.11 Publicity.................................................................................................. 79
Section 17.12 Limitation of Liability ............................................................................79
Section 17.13 Conflict; Construction of Documents; Reliance..................................... 79
Section 17.14 Entire Agreement.................................................................................... 80
Section 17.15 Liabihty................................................................................................... 80
Section 17.16 Duplicate Originals; Counterparts .......................................................... 80
Section 17.17 Brokers.................................................................................................... 80
Section 17.18 Set-Off .................................................................................................... 81
Section 17.19 Contributions and Waivers ..................................................................... 81
LOAN AGREEMENT- Page iv
63579.19/The Emerald Bronx Portfolio 2
FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024
LOAN AGREEMENT
TES LOAN AGREEMENT, dated as of October 11, 2019 (as amended, restated,
replaced, supplemented or otherwise modified from time to time, this "Agreement"), between
SABAL CAPITAL II, LLC, a Delaware limited company, having an address at
(i) liability
4 Park Plaza, Suite 2000, Irvine, California 92614 (together with its successors and/or assigns,
"Lender") and (ii) BRONX 1202 SPOFFORD AVENUE L.P., a New York limited
partnership, having its principal place of business at One Battery Park Plaza, Suite 3100,
New York, NY 10004, Attentiotr Isaac Kassirer ("Bronx 1202 Borrower"); BRONX 444
187"
EAST STREET L.P., a New York limited partnership, its principal place of
having
business at One Battery Park Plaza, Suite 3100, New York, NY 10004, Attention: Isaac Kassirer
187"
("Bronx 444 Borrower"); BRONX 441 EAST STREET L.P., a New York limited
partnership, having its principal place of business at One Battery Park Plaza, Suite 3100,
Borrower,"
New York, NY 10004, Attention: Isaac Kassirer ("Bronx 441 and together with
Bronx 1202 Borrower and Bronx 444 Borrower, and their respective successors and assigns,
cach individually or collectively as the context requires, jointly and severally, "Borrower").
RECITALS:
Borrower desires to obtain the Loan (defi ned below) from Lender.
Lender is willing to make the Loan to Borrower, subject to and in accordance with the
terms of this Agreement and the other Loan Documents (defined below).
In consideration of the making of the Loan by Lender and the covenants, agreements,
representations and warranties set forth in this Agreement, the parties hereto hereby covenant,
agree, represent and warrant as follows:
ARTICLE1
DEFINITIONS; PRINCIPLES OF CONSTRUCTION
Section 1.1 Definitions. For all purposes of this Agreement, except as otherwise
expressly required or unless the context clearly indicates a contrary intent:
"AC Laws" shall have the given to such term in Section 3.26.
meaning
"Account Collateral" shall the all
mean (i) Accounts, and cash, checks, drafts,
certificates and instruments, if any, from time to time deposited or held in the Accounts from
time to time; and all amounts invested in Permitted Investments; all interest,
(ii) any (iii)
dividends, cash, instruments and
propertyother from time to time received, receivable or
otherwise payable in respect of, or in exchange for, any or all of the foregoing; and (iv) to the
- "proceeds"
extent not covered by clauses (i) (iii) above, all (as defined under the UCC as in
effect in the State in which the Accounts are located) of any or all of the foregoing.
"Accounts" shall mean the Tax the Immediate Repair the Insurance
Account, Account,
Account, the Replacement Reserve Account, and any other account established by this
Agreement or the other Loan Documents.
LOAN AGREEMENT - Page 1
63579-19/The Emerald Bronx Portfolio 2
FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E
NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024
"Affiliate"
shall mean, as to any Person, any other Person that, directly at indirectly, is in
Control of, is Controlled by or is under common Control with such Person or is a director or
of ficer of such Person or of an Af filiate of such Person.
Manager"
"Affiliated shall mean any managing agent of the Property in which
Borrower, Guarantor, Sponsor, or Affiliate of such entities has, directly or indirectly, any
any
legal, beneficial or economic interest.
"ALTA"
shall mean American Iand Title Association, or any successor thereto.
Threshold"
"Alteration shall mean an amount equal to 5% of the principal
outstanding
amount of the Loan.
Laws"
"AML shall have the meaning given to such term in Section 3.26.
Contribution"
"Applicable shall have the set forth in Section 17.19 hereof.
meaning
Method"
"Approved Accounting shall mean GAAP, federal tax basis accounting
(consistently or such other method of accounting, applied, as be
applied) consistently may
reasonably acceptable to Lender.
Budget"
"Approved Annual shall have the meaning set forth in Section 4.11 hereof
Agreement"
"Assignment
Preview
FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024 EXHIBIT A FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024 Loan No: LOAN AGREEMENT Dated as of October 11, 2019 Between BRONX 1202 SPOFFORD AVENUE L.P., a New York limited partnership, BRONX 444 EAST 187"STREET L.P., a New York limited partnership and 187" BRONX 441 EAST STREET L.P., a New York limited partnership, as Borrower and SABAL CAPITAL % LLC, a Delaware limited liability company, as Lender 63579-19/rhe Ernerald Bronx Portfolio 2 FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024 TABLE OF CONTENTS Page ARTICLE 1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION.........................,,................. 1 Section 1.1 Definitions .................................................................................................... 1 Section 1.2 Principles of Construction .......................................................................... 17 ARTICLE 2 GENERAL TERMS................................................................................................. 17 Section 2.1 Loan Commitment; Disbursement to Borrower ......................................... 17 Section 2.2 The Loan..................................................................................................... 17 Section 2.3 Disbursement to Borrower.......................................................................... 17 Section 2.4 The Note and the other Loan Documents ................................................... 17 Section 2.5 Interest Rate................................................................................................ 17 Section 2.6 Loan Payments............................................................................................ 18 Section 2.7 Prepayments................................................................................................ 19 ARTICLE 3 REPRESENTATIONS AND WARRANTIES........................................................ 20 Section 3.1 Legal Status and ......................................................................... 20 Authority Section 3 .2 Validit y of Documents ................................................................................ 20 Section 3.3 Litigation..................................................................................................... 21 Section 3.4 Agreements ................................................................................................. 21 Section 3.5 Financial Condition..................................................................................... 21 Section 3.6 Disclosure ................................................................................................... 21 Section 3.7 No Plan Assets; FIRRMA........................................................................... 21 Section 3.8 Not a Foreign Person .................................................................................. 22 Section 3.9 Business Purposes....................................................................................... 22 Section 3.10 Borrower's Principal Place of Business .................................................... 22 Section 3.11 Status of Property...................................................................................... 23 Section 3.12 Financial Information ............................................................................... 24 Section 3.13 Condemnation........................................................................................... 24 Section 3.14 Separate Lots............................................................................................. 24 Section 3.15 Insurance................................................................................................... 24 Section 3.16 Use of Property......................................................................................... 24 Section 3.17 Leases and Rent Roll ................................................................................ 24 Section 3.18 Management Agreement........................................................................... 25 Section 3.19 Illegal Activity/Forfeiture ......................................................................... 25 Section 3.20 Taxes......................................................................................................... 25 Section 3.21 Third Party Representations...................................................................... 25 Section 3.22 Federal Reserve Regulations .................................................................... 25 Section 3.23 Investment Act ......................................................................... 26 Company Section 3.24 Fraudulent Conveyance............................................................................ 26 Section 3.25 Embargoed Person.................................................................................... 26 Section 3.26 Anti-Money Laundering and Economic Sanctions................................... 26 Section 3.27 Organizational Chart ................................................................................. 28 Section 3.28 Bank Holding Company ........................................................................... 28 Section 3.29 No Change in Facts or Circumstances; Disclosure................................... 28 LOAN AGREEMENT - Page i 63579-19/The Emerald Bmax Portfolio 2 FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024 TABLE OF CONTENTS (Continued) Page ARTICLE 4 BORROWER COVENANTS.................................................................................. 28 Section 4.1 Existence..................................................................................................... 28 Section 4.2 Legal Requirements.................................................................................... 29 Section 4.3 Maintenance and Use of Property............................................................... 29 Section 4,4 Waste .......................................................................................................... 29 Section 4.5 Taxes and Other Charges......................................,,.................................... 29 Section 4.6 Litigation..................................................................................................... 30 Section 4.7 Access to Property ...................................................................................... 30 Section 4.8 Notice of Default ........................................................................................ 30 Section 4.9 Cooperate in Legal Proceedings ................................................................. 30 Section 4.10 Performance by Borrower......................................................................... 31 Section 4.11 Books and Records ................................................................................... 31 Section 4.12 Estoppel Certificates................................................................................. 33 Section 4.13 Leases and Rents....................................................................................... 34 Section 4.14 Management Agreement........................................................................... 34 Section 4.15 Payment for Labor and Materials ............................................................. 36 Section 4.16 Performance of Other Agreements ........................................................... 37 Section 4.17 Debt Cancellation ..................................................................................... 37 . S ection 4.18 ERISA; FIRRMA ..................................................................................... 37 Section 4.19 No Joint Assessment................................................................................. 38 Section 4.20 Alterations................................................................................................. 38 Section 4.21 Code Violations ........................................................................................ 38 Section 4.22 Surveys...................................................................................................... 38 RATICLE 5 ENTITY COVENANTS.......................................................................................... 39 Section 5.1 Single Asset Entity. Borrower has not and will not: .................................. 39 Section 5.2 Change ofName, Identity or Structure....................................................... 40 Section 5.3 Business and Operations............................................................................. 40 6 NO SALE OR EN C U MARTICLE BRANCE-......................................................................... 40 Section 6.1 Transfer Definitions.................................................................................... 40 Section 6.2 No Sale/Encumbrance................................................................................. 40 Section 6.3 Permitted Equity Transfers......................................................................... 41 Section 6.4 Lender's Rights ............................-............................................................. 42 Section 6.5 Economic Sanctions, Anti-Money Laundering and Transfers.................... 42 ARTICLE 7 INSURANCE; CASUALTY; CONDEMNATION; RESTORATION................... 43 Section 7.1 Insurance..................................................................................................... 43 Section 7.2 Casualty ...................................................................................................... 48 Section 7.3 Condemnation............................................................................................. 48 Section 7.4 Restoration....-........................................................................................... 49 8 RESERV FUNDS.................................................................................................. EARTICLE 53 Section 8.1 Immediate Repair Funds..............-............................................................ 53 Section 8.2 Tax and Insurance Funds ............................................................................ 53 Section 8.3 The Accounts Generally ............................................................................. 54 LOAN AGREEMENT - Page ii 63579-19/The Emerald Bronx Portfolio 2. FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024 TABLE OF CONTENTS (Continued) Page Section 8.4 Other Reserve Funds................................................................................... 56 ARTICLE 9 INTENTIONALLY OMITTED .............................................................................. 57 DEFAULT· ARTICLE 10 EVENTS OF , REMEDIES ................................................................. 57 Section 10.1 Event of Default........................................................................................ 57 Section 10.2 Remedies................................................................................................... 60 ART CLE 11 SECONDARY MARKET ..................................................................................... 62 Section 11.1 Securitization .,.......................................................................................... 62 Section 11.2 Disclosure ................................................................................................. 63 Section 11.3 Reserves/Escrows ..................................................................................... 64 Section 11.4 Servicer..................................................................................................... 65 Section 11.5 Rating Agency Costs ................................................................................ 65 Section 11.6 Mezzanine Option..................................................................................... 65 Section 11.7 Conversion 10 Registered Form................................................................ 65 ARTICLE 12 INDEMNIFICATIONS ......................................................................................... 66 Section 12.1 General Indemnification........................................................................... 66 Section 12.2 Mortgage and Intangible Tax Indenmification...........”............................ 66 Section 12.3 ERISA and FIRRMA Indemnification..................................................... 66 Section 12.4 Duty to Defend, Legal Fees and Other Fees and Expenses...................... 66 Section 12.5 Survival..................................................................................................... 67 ARTICLE 13 EXCULPATION..................................................................,................................. 67 Section 13.1 Exculpation............................................................................................... 67 1 NOT CI4EARTICLE S............................................................................................................... 69 Section 14.1 Notices ...................................................................................................... 69 TICLE 1 5 F UR HER SSURANCES ARTA .................................................................................. 70 Section 15.1 Replacement Documents .......................................................................... 70 Section 15 2 Recording of Security Instrument, etc...................................................... 71 Section 15.3 Further Acts, etc........................................................................................ 71 Section 15.4 Changes in Tax, Debt, Credit and Documentary Laws ................. 71 Stamp ARTICLE 16 WAIVERS ............................................................................................................. 72 Section 16.1 Remedies Cumulative; Waivers................................................................ 72 Section 16.2 Modification, Waiver in Writing .............................................................. 72 Section 16.3 Delay Not a Waiver .................................................................................. 72 Section 16.4 Waiver of Trial Jury............................................................................. 73 by Section 16.5 Waiver ofNotice....................................................................................... 73 Section 16.6 Remedies of Borrower.............................................................................. 73 Section 16.7 Marshalling and Other Matters ................................................................. 73 Section 16.8 Waiver of Statute of Limitations .............................................................. 74 Section 16.9 Waiver of Counterclaim............................................................................ 74 LOAN AGREEMENT -Page iii 63579-19/The Emerald Bronx PortfMio 2 FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024 TABLE OF CONTENTS (Continued) Page . . . S ection 16.10 Sole Discretion of Lender....................................................................... 74 ARTICLE 17 MISCELLANEOUS .............................................................................................. 74 Section 17.1 Survival..................................................................................................... 74 Section 17.2 Governing Law ......................................................................................... 74 Section 17.3 Headings ................................................................................................... 76 Section 17.4 Severability ............................................................................................... 76 Section 17.5 Preferences ................................................................................................ 76 Section 17.6 Expenses ................................................................................................... 76 Section 17.7 Cost of Enforcement................................................................................. 77 Section 17.8 Schedules Incorporated............................................................................. 78 Section 17.9 Offsets, Counterclaims and Defenses ....................................................... 78 Section 17.10 No Joint Venture or Partnership; No Third Party Beneficiaries............. 78 Section 17.11 Publicity.................................................................................................. 79 Section 17.12 Limitation of Liability ............................................................................79 Section 17.13 Conflict; Construction of Documents; Reliance..................................... 79 Section 17.14 Entire Agreement.................................................................................... 80 Section 17.15 Liabihty................................................................................................... 80 Section 17.16 Duplicate Originals; Counterparts .......................................................... 80 Section 17.17 Brokers.................................................................................................... 80 Section 17.18 Set-Off .................................................................................................... 81 Section 17.19 Contributions and Waivers ..................................................................... 81 LOAN AGREEMENT- Page iv 63579.19/The Emerald Bronx Portfolio 2 FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024 LOAN AGREEMENT TES LOAN AGREEMENT, dated as of October 11, 2019 (as amended, restated, replaced, supplemented or otherwise modified from time to time, this "Agreement"), between SABAL CAPITAL II, LLC, a Delaware limited company, having an address at (i) liability 4 Park Plaza, Suite 2000, Irvine, California 92614 (together with its successors and/or assigns, "Lender") and (ii) BRONX 1202 SPOFFORD AVENUE L.P., a New York limited partnership, having its principal place of business at One Battery Park Plaza, Suite 3100, New York, NY 10004, Attentiotr Isaac Kassirer ("Bronx 1202 Borrower"); BRONX 444 187" EAST STREET L.P., a New York limited partnership, its principal place of having business at One Battery Park Plaza, Suite 3100, New York, NY 10004, Attention: Isaac Kassirer 187" ("Bronx 444 Borrower"); BRONX 441 EAST STREET L.P., a New York limited partnership, having its principal place of business at One Battery Park Plaza, Suite 3100, Borrower," New York, NY 10004, Attention: Isaac Kassirer ("Bronx 441 and together with Bronx 1202 Borrower and Bronx 444 Borrower, and their respective successors and assigns, cach individually or collectively as the context requires, jointly and severally, "Borrower"). RECITALS: Borrower desires to obtain the Loan (defi ned below) from Lender. Lender is willing to make the Loan to Borrower, subject to and in accordance with the terms of this Agreement and the other Loan Documents (defined below). In consideration of the making of the Loan by Lender and the covenants, agreements, representations and warranties set forth in this Agreement, the parties hereto hereby covenant, agree, represent and warrant as follows: ARTICLE1 DEFINITIONS; PRINCIPLES OF CONSTRUCTION Section 1.1 Definitions. For all purposes of this Agreement, except as otherwise expressly required or unless the context clearly indicates a contrary intent: "AC Laws" shall have the given to such term in Section 3.26. meaning "Account Collateral" shall the all mean (i) Accounts, and cash, checks, drafts, certificates and instruments, if any, from time to time deposited or held in the Accounts from time to time; and all amounts invested in Permitted Investments; all interest, (ii) any (iii) dividends, cash, instruments and propertyother from time to time received, receivable or otherwise payable in respect of, or in exchange for, any or all of the foregoing; and (iv) to the - "proceeds" extent not covered by clauses (i) (iii) above, all (as defined under the UCC as in effect in the State in which the Accounts are located) of any or all of the foregoing. "Accounts" shall mean the Tax the Immediate Repair the Insurance Account, Account, Account, the Replacement Reserve Account, and any other account established by this Agreement or the other Loan Documents. LOAN AGREEMENT - Page 1 63579-19/The Emerald Bronx Portfolio 2 FILED: BRONX COUNTY CLERK 03/28/2024 03:56 PM INDEX NO. 805166/2024E NYSCEF DOC. NO. 2 RECEIVED NYSCEF: 03/28/2024 "Affiliate" shall mean, as to any Person, any other Person that, directly at indirectly, is in Control of, is Controlled by or is under common Control with such Person or is a director or of ficer of such Person or of an Af filiate of such Person. Manager" "Affiliated shall mean any managing agent of the Property in which Borrower, Guarantor, Sponsor, or Affiliate of such entities has, directly or indirectly, any any legal, beneficial or economic interest. "ALTA" shall mean American Iand Title Association, or any successor thereto. Threshold" "Alteration shall mean an amount equal to 5% of the principal outstanding amount of the Loan. Laws" "AML shall have the meaning given to such term in Section 3.26. Contribution" "Applicable shall have the set forth in Section 17.19 hereof. meaning Method" "Approved Accounting shall mean GAAP, federal tax basis accounting (consistently or such other method of accounting, applied, as be applied) consistently may reasonably acceptable to Lender. Budget" "Approved Annual shall have the meaning set forth in Section 4.11 hereof Agreement" "Assignment