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the subordination relates have adequate water, sewer,
electric and telephone service and that such services shall
be available notwithstanding the foreclosure of the Mort-
gage; (d) ,contracts have been executed with the utilities
furnishing sewage treatment and water to the Project pur-
suant to which such utilities agree to furnish adequate
sewage treatment and water to the other Residential Phases
as construction thereon is completed subject to customary
contributions in aid of construction by developers and
such contracts shall have been conditionally assigned to
Mortgagee, such assignment to become effective upon the
occurrence of an Event of Default hereunder; (e) all penaits
and approvals required by any governmental authority having '
jurisdiction necessary to construct the Residential Phase to
which the subordination relates have been issued, the time
for appeal therefrom shall have expired and no appeal with
respect thereto is pending; (f) Developer shall have satis-
fied any presale requirement of any Construction Lender
holding a Construction Mortgage on -the Phase to which the
subordination relates; (g) Developer shall have procured a
firm commitment from an institutional lender to grant
permanent loans to purchasers of the units in the Residen-
tial Phase to which the subordination relates, in an amount _
equal to not less than 508 of the aggregate projected
selling price for all residential- units in such Phase at
prevailing interest rates and for a term substantially ~
equivalent to residential mortgage loans then being granted
in the locality of the Premises by other institutional ~
lenders; (h) the holders of the Subordinate Mortgages shall ~
have subordinated the liens of the respective mortgages held
by them to the lien of such Construction Mortgage and the
lien of the Mortgage; (i) Developer shall have furnished to
Mortgagee satisfactory evidence that the architect and
~ engineer who prepared the Preliminary Site Plans have been
~ paid in full; and (j) Mortgagee shall have received a sum
equal to $2,500 times the number of residential units in the }
Residential Phase to which the subordination relates, plus
accrued and unpaid interest thereon to"the date of such
payment, such sum to be applied against the unit release
price specified in Section 5.04(e).
5.03. Limitation on Subordination. After subor-
dinating the lien of the Mortgage to a Construction Mortgage
encumbering the Residential Phase identified on the Prelimi-
nary Site Plans as Phase I, Mortgagee shall not be required {
to subordinate such lien to a Construction Mortgage encum-
bering any other Residential Phase unless (a) all of the
conditions specified in Section 5.02 have been satisfied
with respect to the next such Residential Phase and (b) ~
Mortgagee shall have received in aggregate $625,000 as a
prepayment of principal under the Second Replacement Note.
5.04. Con sen t to Format ion of Condominium;
Release of Units. Mortgagee agrees to consent to and join '
in a master eclaration or declarations creating a condo-
minium with respect to individual Residential Phases of the
Project on a-Phase by Phase basis and to join in a declara-
tion of protective covenants and restrictions with respect
to the Recreational Parcel, provided, in each such case,
~ Mortgagee shall have approved the form of such instruments
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