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<br />3 <br />Little Canada-Lupe - Borrower Loan Agreement - LC Apartments(199386221.3) - 5/12/2026 6:38:21 PM <br />(e) The Borrower shall have, and is hereby granted, the option to prepay the unpaid <br />principal amount of the Borrower Loan, together with interest thereon to the date of prepayment and any <br />applicable prepayment premium, but only to the extent set forth in the Borrower Note. <br />(f) The Controlling Person shall deliver to the Fiscal Agent and the Borrower a <br />combined schedule of debt service payments (the “Debt Service Schedule”) on or before the Stabilization <br />Date, providing for level debt service, in aggregate, with respect to the Direct Note and the Borrower Note <br />remaining Outstanding as of the month preceding the First Principal Payment Date calculated on the basis <br />of the Interest Rate (as defined in the Schedule of Financial Terms and the Direct Note, respectively) and <br />the Amortization Term with principal payments commencing on the First Principal Payment Date with all <br />principal applied to the Direct Note until repaid in full and then to the Borrower Note thereafter (with all <br />remaining principal payable on the Maturity Date, if applicable). <br />Section 2.2 Fees. <br />(a) On the date of execution and delivery of this Agreement, the Borrower shall pay, <br />or cause to be paid, to R4 Capital Funding LLC the Origination Fee and to R4 Servicer LLC a Construction <br />Monitoring Fee, together with the fees and expenses of its counsel. <br />(b) The Borrower shall pay (as directed by the Controlling Person) two (2) Business <br />Days before each Loan Payment Date, commencing on the First Loan Payment Date (as defined in the <br />Borrower Note) and continuing through final completion of the Work in respect of the Project Facilities, an <br />amount equal to the costs of the Engineering Consultant incurred by the Controlling Person in the prior <br />month in an amount not to exceed $2,000 per month (plus travel and reasonable and necessary expenses). <br />If the Borrower fails to requisition such costs, the Controlling Person may request the Fiscal Agent to <br />disburse such amounts as part of any Advance. <br />(c) The Borrower shall pay the Governmental Lender Fees and all expenses of the <br />Governmental Lender. <br />(d) The Borrower shall pay the Fiscal Agent Fees and all reasonable expenses of the <br />Fiscal Agent. <br />(e) The Borrower shall pay all reasonable special servicing fees or costs in accordance <br />with Section 6.34 hereof. <br />Section 2.3 Termination and Prepayment. <br />(a) Notwithstanding anything to the contrary contained in this Agreement or the other <br />Funding Loan Documents, the Controlling Person’s and the Funding Lender’s and each Noteowner’s rights, <br />interests and remedies hereunder and under the other Funding Loan Documents shall not terminate or expire <br />or be deemed to have been discharged or released until the payment in full of the Borrower Note and the <br />Governmental Note. No such termination, expiration or release shall affect the survival of the <br />indemnification provisions of this Agreement, which provisions shall survive any such termination, <br />expiration or release. <br />(b) The Borrower Loan may be optionally prepaid by the Borrower, and the <br />Governmental Note shall be correspondingly paid pursuant to Section 3.2 of the Funding Loan Agreement, <br />on any Loan Payment Date on or after the First Optional Call Date, upon the payment of the principal <br />amount of the Borrower Note plus interest accrued thereon and optional prepayment premium set forth on <br />the Schedule of Financial Terms, if any, to, but not including, the date of prepayment, as provided in the