2020/05/27 Council Agenda Packet

�( (a) !First Priority;Regulatory Agreement and Covenants. The Snohomish County Covenant and the State Covenant shall each be senior and prior to the liens of BECU Deed of Trust, the Everett Deed of Trust,the Snohomish County Deed of Trust and the State Deed of Trust. 1[A21All rights and interests of BECU,the City of Everett, Snohomish County and the State under the BECU Loan Documents,the Everett Loan Documents,the Snohomish County Loan Documents and the State Loan Documents,respectively,are hereby made subordinate and subject to the requirements of the Snohomish County Covenant and the State Covenant. (b) !Second Priority4A31;BECU Deed of Trust and the BECU Loan Documents. The lien of BECU Deed of Trust and the requirements of the BECU Loan Documents shall be senior and prior to the liens of the Everett Deed of Trust,the Snohomish County Deed of Trust and the State Deed of Trust. All rights and interests of the City of Everett, Snohomish County and the State under the Everett Loan Documents,the Snohomish County Loan Documents and the State Loan Documents, respectively, are hereby made subordinate and subject to the lien of BECU Deed of Trust and the requirements of the BECU Loan Documents and all advances or charges made or accruing thereunder, including any and all extensions,modifications and renewals thereof, additional advances thereunder and capitalization of interest,costs and fees in connection therewith. By their signature hereto,the City of Everett, Snohomish County and the State each consent to the lien of the BECU Deed of Trust against the Property. (c) Third Priority;Everett Deed of Trust and Everett Loan DocumentsA4]. The lien of the Everett Deed of Trust and the requirements of the Everett Loan Documents shall be senior and prior to the lien of the Snohomish County Deed of Trust and the State Deed of Trust. All rights and interests of Snohomish County and the State under the Snohomish County Loan Documents and the State Loan Documents,respectively,are hereby made subordinate and subject to the lien of the Everett Deed of Trust and the requirements of the Everett Loan Documents and all advances or charges made or accruing thereunder,including any and all extensions,modifications and renewals thereof,additional advances thereunder and capitalization of interest,costs and fees in connection therewith. (d) Fourth Priority; Snohomish County Deed of Trust and Snohomish County Loan Documents. The lien of the Snohomish County Deed of Trust and the requirements of the Snohomish County Loan Documents shall be senior and prior to the lien of the State Deed of Trust. All rights and interests of the State under the State Loan Documents are hereby made subordinate and subject to the lien of the Snohomish County Deed of Trust and the requirements of the Snohomish County Loan Documents and all advances'or charges made or accruing thereunder,including any and all extensions,modifications and renewals thereof,additional advances thereunder and capitalization of interest,costs and fees in connection therewith. (e) No Obligation to Lend. The parties agree that the Lenders do not have any obligation to one another to advance funds or to see to the application of their respective loan proceeds and that any application of such proceeds contrary to the terms of any loan documents shall not defeat the subordination granted herein in whole or in part. 2. Insurance or Condemnation Proceeds. Notwithstanding any provision of any Lender's deed of trust or other loan document to the contrary,in the event of any damage to, destruction of,or taking or condemnation(including deed in lieu thereof)of the Property or any portion thereof,any insurance or condemnation proceeds shall be applied first as provided in 075440-0196/4825-7411-2185.1 Page 5 57