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202303254 (11) Limitation on Default Interest Rate on Lender Loan. In the event of default on the Lender Loan, Lender may not escalate the interest rate to a rate greater than the maximum rate published by SBA in the Federal Register and in effect as of the date of this Subordination Agreement. If SBA purchases the Lender Loan or note, SBA will only pay the interest rate on the note in effect before the date of default. (12) Subordination to SBA Loan of Amounts Attributable to Default Charges. (a) The term "Default Charges" includes, but is not limited to, prepayment penalties, late fees, escalated interest, and other default charges after default on the Lender Loan. (b) To the extent the Lender's Security Instrument secures any amounts attributable to Default Charges, the Lender's Security Instrument is and will be subordinate to SBA's Security Instrument. This subordination applies only to CDC and SBA and their successors and assigns, and shall not inure to the benefit of Borrower or any guarantor of the Lender Loan. (c) In the event of default on the Lender Loan, CDC or SBA may bring the Lender Loan current or acquire the Lender Loan including Lender's Security Instrument. Lender agrees that in either of these circumstances, the amount to bring the Lender Loan current or the purchase price of the Lender Loan will be net of all amounts attributable to Default Charges subordinated to the SBA lien. Lender further agrees that if it receives any amounts attributable to Default Charges, Lender holds such funds in trust for SBA and will immediately remit them to SBA. (d) If Lender sells, or intends to sell the note evidencing the Lender Loan, then Lender agrees: (1) If the Lender sells its Note (other than when liquidating the Lender Loan), then the Lender must provide CDC/SBA, within fifteen (15) days of the sale, with written notice of the purchaser's name, address and telephone number and confirmation that the purchaser has received a copy of the executed Subordination Agreement. (2) If the Lender Loan is in default and the Lender, as part of its liquidation strategy, (i) proposes to sell its note, or (ii) receives an offer from a third party, then the Lender must provide CDC/SBA with the option to purchase the note at the same price offered by the potential purchaser, net any Default Charges per paragraph 12(c). SBA will have forty-five (45) days from receipt of the notice from Lender to exercise its option to purchase the note. If SBA does not exercise its option and Lender sells its note, then the Lender must provide CDC/SBA, within fifteen (15) days of the sale, with written notice of the purchaser's name, address and telephone number, and must provide the purchaser with a copy of the executed Subordination Agreement. (e) If the Lender sells or otherwise transfers its note to a third party, then any Default Charges, including, but not limited to, prepayment penalties, late fees, other Default Charges, and escalated interest after default due under the Lender Loan must be subordinate to the amounts outstanding on the 504 Loan and/or CDC Lien. (0 If the Lender loan documents contain a swap component or hedging contract (hereinafter defined as "swap agreement"), all costs associated with this swap agreement, which may be termed swap fees, termination fees, default fees or other related fees, shall be subordinate to the amounts outstanding on the 504 Loan and/or CDC Lien. subordination ne 2021 Ver. 2021