EXCEPTIONS TO NON-RECOURSE GUARANTY
(▇▇▇▇▇▇▇▇▇▇▇)
This Exceptions to Non-Recourse Guaranty is entered into as of April 18
1997, by the undersigned (collectively, the "Key Principal" whether one or
more). in order to induce GMAC COHMERCIAL MORTGAGE CORPORATION (the "Lender")
to make a loan to ▇▇▇▇▇▇▇▇▇▇▇ PARTNERS, LTD (the "Borrower") in the amount
of $ 3,577,000.00 (the "Loan").
RECITALS
A. The Loan is evidenced by a Multifamily Note from Borrower to Lender of
even date herewith (the "Multifamily Note"), as modified by an Addendum to
Multifamily Note of even date herewith (the "Addendum"). The Loan is secured
by a Multifamily, Deed of Trust Assignment of Rents and Security Agreement of
even date herewith (the "Multifamily Instrument"), covering the property
described in the Multifamily Instrument and located at Houston, ▇▇▇▇▇▇
County, Texas (the "Property"). The Multifamily Instrument is amended and
supplemented by a Rider to Multifamily Instrument/* or even date herewith
(the "Rider").
* and a Supplemental Rider to Multifamily Instrument, each as
B. The Multifamily Note, as modified by the Addendum and as further amended
from time to time, shall be referred to in this Exceptions to Non-Recourse
Guaranty as the "Note." The Multifamily Instrument, as modified by the Rider
and as further amended from time to time. shall be referred to in this
Exceptions to Non-Recourse Guaranty as the "Instrument." The term "Loan
Documents" when used in this Exceptions to Non-Recourse Guaranty, shall mean,
collectively, the following documents: (i) the Note, (ii) the Instrument, and
(iii) all other documents or agreements, including any Collateral Agreements
(as defined in the Rider) or O&M Agreement (as defined in the Rider),
executed in connection with the Loan, whether presently existing or
hereinafter entered into, as such Loan Documents may be amended from time to
time.
▇. ▇▇▇▇▇▇ is unwilling to make the Loan unless the undersigned Key
Principal executes this Exceptions to Non-Recourse Guaranty.
NOW, THEREFORE, in order to induce Lender to make the Loan evidenced by the
Note and secured by the Instrument, and in consideration thereof. Key
Principal hereby (i) irrevocably and unconditionally guarantees the full and
prompt payment to Lender of all amounts which may from time to time while the
Note is outstanding and unpaid become due and owing by Borrower, whether
principal, interest or other sums, for which Borrower may from time to time,
or at any time be personally liable for payment to Lender under the Note and
the Instrument (due to the applicability of the exceptions to non-recourse
liability provisions contained in paragraph C of the Addendum and paragraph L
of the Rider) (the "Guaranteed Obligations"), and (ii) agrees to pay, on
demand, all costs and expenses, including reasonable attorneys' fees and
disbursements, incurred by Lender in enforcing its rights under this
Exceptions to Non-Recourse Guaranty. All obligations of Key Principal under
this Exceptions to Non-Recourse Guaranty shall be joint and several among all
persons (if more than one) included as a Key Principal. This Exceptions to
Non-Recourse Guaranty is an unconditional guaranty of payment, and not a
guaranty of collection, and may be enforced by ▇▇▇▇▇▇ directly against Key
Principal without any requirement that Lender must first exercise its rights
against Borrower or any general partner of Borrower or any collateral or
other security for payment of the Note.
The obligations of Key Principal under this Exceptions to Non-Recourse
Guaranty shall be performed without demand by Lender and shall be
unconditional irrespective of the genuineness, validity, regularity or
enforceability of the Note, the Instrument, or any other circumstance which
might otherwise constitute a legal or equitable discharge of a surety or a
guarantor. Key Principal hereby waives the benefit of all principles or
provisions of law, statutory or otherwise, which are or might be in conflict
with the terms of this Exceptions to Non-Recourse Guaranty, and agrees that
the obligations of Key Principal shall not be affected by any circumstances,
whether or not referred to in this Exceptions to Non-Recourse Guaranty, which
might otherwise constitute a legal or equitable discharge of a surety or
guarantor. Key Principal hereby waives the benefits of any right of discharge
under any and all statutes or other laws relating to guarantors or sureties
and any other rights of sureties and guarantors thereunder. Without limiting
the generality of the foregoing, Key Principal hereby waives diligence,
presentment, demand for payment, protest, all notices which may be required
by statute, rule of law or otherwise to preserve intact Lender's rights
against Key Principal under this Exceptions to Non-Recourse Guaranty,
including, but not limited to, notice of acceptance, notice of any amendment
of the Loan Documents, notice of the occurrence of any default, notice of
intent to accelerate, notice of acceleration, notice of dishonor, notice of
foreclosure, notice of protest, notice of the incurring by Borrower of any of
the Guaranteed Obligations, and, generally, all demands, notices and other
formalities of every kind in connection with this Exceptions to Non-Recourse
Guaranty, and all rights to require Lender to (a) proceed against Borrower
or, if Borrower is a partnership, any general partner of Borrower, (b)
proceed against or exhaust any collateral held by ▇▇▇▇▇▇ to secure the
payment of the Loan, or (c) pursue any other remedy it may now or hereafter
have against Borrower, or, if Borrower is a partnership, any general partner
of ▇▇▇▇▇▇▇▇.
Key Principal hereby agrees that, at any time or from time to time and any
number of times, without notice to Key Principal and without affecting the
liability of Key Principal, (a) the time for payment of the principal of or
interest on the Note may be extended or the Note may be renewed in whole or in
part one or more times; (b) the time for Borrower's performance of or compliance
with any covenant or agreement contained in the Note, the Instrument or any
other Loan Document evidencing, securing or governing the Loan, whether
presently existing or hereinafter entered into, may be extended or such
performance or compliance may be waived; (c) the maturity of the Note may be
accelerated as provided therein or in the Instrument, or any other Loan
Document; (d) the Note, the Instrument, or any other Loan Document, may be
modified or amended by Lender and Borrower in any respect, including, but not
limited to, an increase in the principal
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amount; and (e) any security for the Loan may be modified, exchanged,
surrendered or otherwise dealt with or additional security may be pledged or
mortgaged for the Loan.
If any payment by Borrower is held to constitute a preference under any
applicable bankruptcy or similar laws, or if for any reason Lender is
required to refund any sums to Borrower, such amounts shall not constitute a
release of any liability of Key Principal hereunder. It is the intention of
▇▇▇▇▇▇ and Key Principal that Key Principal's obligations hereunder shall not
be discharged except by Key Principal's performance of such obligations and
then only to the extent of such performance.
Key Principal agrees that any indebtedness of Borrower now or hereafter
held by Key Principal is hereby and shall be subordinated to all indebtedness
of Borrower to Lender and any such indebtedness of Borrower shall be
collected, enforced and received by Key Principal, as trustee for Lender, but
without reducing or affecting in any manner the liability of Key Principal
under the other provisions of this Exceptions to Non-Recourse Guaranty.
Key Principal agrees that Lender, in its sole and absolute discretion, may
(a) bring suit against Key Principal, or any one or more of the individuals
constituting Key Principal, and any other guarantor of the Note, jointly and
severally, or against any one or more of them: (b) compromise or settle with
any one or more of the individuals constituting Key Principal for such
consideration as Lender may deem proper, (c) release one or more of the
individuals constituting Key Principal, or any other guarantors of the Note,
from liability thereunder, and (d) otherwise deal with Key Principal and any
other guarantor of the Note, or any one or more of them, in any manner
whatsoever, and that no such action shall impair the rights of Lender to
collect the Guaranteed Obligations from Key Principal. Nothing contained in
this paragraph shall in any way affect or impair the rights or obligations of
the Key Principal with respect to any other guarantor of the Note.
Lender may assign its rights under this Exceptions to Non-Recourse Guaranty
in whole or in part and upon any such assignment, all the terms and
provisions of this Exceptions to Non-Recourse Guaranty shall inure to the
benefit of such assignee to the extent so assigned. The terms used to
designate any of the parties herein shall be deemed to include the heirs,
legal representatives, successors and assigns of such parties; and the term
"Lender" shall include, in addition to Lender, any lawful owner, holder or
pledgee of the Note.
Key Principal shall have no right of, and hereby waives any claim for,
subrogation or reimbursement against the Borrower or any general partner of
Borrower by reason of any payment by Key Principal under this Exceptions to
NonRecourse Guaranty, whether such right or claim arises at law or in equity
or under any contract or statute.
Key Principal hereby waives trial by jury in any action or proceeding
commenced by ▇▇▇▇▇▇ against Key Principal under this Exceptions to
Non-Recourse Guaranty.
THIS EXCEPTIONS TO NON-RECOURSE GUARANTY AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS. THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. ALL PRIOR OR
CONTEMPORANEOUS AGREEMENTS, UNDERSTANDINGS, REPRESENTATIONS, AND
STATEMENTS, ORAL OR WRITTEN, ARE MERGED INTO THIS EXCEPTIONS TO NON-RECOURSE
GUARANTY AND THE OTHER LOAN DOCUMENTS. NEITHER THIS EXCEPTIONS TO
NON-RECOURSE GUARANTY NOR ANY PROVISION HEREOF MAY BE WAIVED, MODIFIED,
AMENDED, DISCHARGED, OR TERMINATED EXCEPT BY AN AGREEMENT IN WRITING SIGNED
BY THE PARTY AGAINST WHICH THE ENFORCEMENT OF SUCH WAIVER, MODIFICATION,
AMENDMENT, DISCHARGE, OR TERMINATION IS SOUGHT, AND THEN ONLY TO THE EXTENT
SET FORTH IN SUCH AGREEMENT.
KEY PRINCIPAL:
APARTMENT INVESTMENT AND MANAGEMENT
COMPANY, a Maryland corporation
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇
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▇▇▇▇▇ ▇▇▇▇▇▇
Vice President
ADDRESS: 1873 S. Bellaire ▇▇▇▇▇▇
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▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
AIMCO PROPERTIES, L.P., a
Delaware limited partnership
By: AIMCO-GP, INC., a Delaware
corporation, its General Partner
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇
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▇▇▇▇▇ ▇▇▇▇▇▇
Vice President
ADDRESS: 1873 S. Bellaire ▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
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