04-14-2021 Council Packet - Laserfiche WebLink

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13135953v2 2 SUBORDINATE CONSTRUCTION MORTGAGE, SECURITY AGREEMENT, FIXTURE FINANCING STATEMENT AND ASSIGNMENT OF LEASES AND RENTS THIS IS A CONSTRUCTION MORTGAGE FOR THE PURPOSE OF PROVIDING FUNDS FOR THE PAYMENT OF MATERIALS AND LABOR FOR THE IMPROVEMENT OF THE PROPERTY SUBJECT TO THE MORTGAGE. THIS MORTGAGE IS SUBORDINATE TO, AND SUBJECT TO THE TERMS AND CONDITIONS OF THOSE CERTAIN MORTGAGES, SECURITY AGREEMENTS, ASSIGNMENTS OF LEASES AND RENTS, AND FIXTURE FINANCING STATEMENTS BETWEEN THE MORTGAGOR AND BREMER BANK, NATIONAL ASSOCIATION (THE “SENIOR LENDER”), AND THAT CERTAIN SUBORDINATION AND INTERCREDITOR AGREEMENT AMONG THE SENIOR LENDER, THE MORTGAGOR, U.S. BANK NATIONAL ASSOCIATION AND ELIM CARE, INC. OF EVEN DATE HEREWITH. This SUBORDINATE CONSTRUCTION MORTGAGE, SECURITY AGREEMENT, FIXTURE FINANCING STATEMENT AND ASSIGNMENT OF LEASES AND RENTS dated as of May 1, 2021 (this “Mortgage”), is from HARMONY CARE CENTER, INC., a nonprofit corporation organized and existing under the laws of the State of Minnesota (the “Mortgagor”) to U.S. BANK NATIONAL ASSOCIATION, a national banking association organized under the laws of the United States (the “Mortgagee”) as Trustee under the Trust Indenture dated as of May 1, 2021 (the “Indenture”) by and between the Mortgagee and City of Little Canada, Minnesota (the “Issuer”). WHEREAS, the Mortgagor and the Issuer are entering into a Loan Agreement (the “Loan Agreement”) of even date herewith, pursuant to which the Issuer will lend to the Mortgagor (hereinafter from time to time called the “Mortgagor”) the proceeds of its $7,550,000 City of Little Canada, Minnesota Subordinate Senior Housing and Healthcare Revenue Bonds (New Harmony Project), Series 2021D (the “Series 2021D Bonds”) to be issued pursuant to Minnesota Statutes, Chapter 462C, as heretofore and hereafter amended (the “Act”); and WHEREAS, the Issuer and the Trustee are entering into the Indenture, pursuant to which the Issuer will assign to the Trustee, as security for the owners of the Series 2021D Bonds, the Loan Repayments and covenants and all other rights and interests of the Issuer in the Loan Agreement (except for the rights of the Issuer thereunder relating to expenses, indemnity and advances of the Issuer); and WHEREAS, the Trustee is authorized by the Indenture to receive as part of the Trust Estate any and all other property conveyed, mortgaged, assigned or transferred, or in which a security interest is granted, by (among others) the Mortgagor, and to hold and apply the Trust Estate pursuant to the provisions of the Indenture; and WHEREAS, the Mortgagor (as hereinafter defined) has agreed to mortgage and grant a security interest in the Mortgaged Property, as defined herein, to the Mortgagee and as further