GAP COLLATERAL AGREEMENT
This GAP COLLATERAL AGREEMENT (this "Agreement") is dated _______________, ______ by and among __________________________________________________ (the "Borrower"), _________________________, a _______________________________________ (the “Servicer”), and FANNIE MAE (the "Lender").
A. Lender is the holder of that certain Multifamily Note (the "Note"), dated _____________________, _______, in the original principal amount of $ made by Borrower, payable to the order of _______________________________, a ________________________ (the "Servicer"), which Note evidences a loan ("Loan") made by Servicer, in its capacity as original lender, to Borrower. To secure the repayment of the Note, Borrower executed and delivered a Multifamily [Deed of Trust], [Mortgage], [Deed to Secure Debt], Assignment of Rents[,] [and] Security Agreement [and Fixture Filing], (the "Security Instrument"), dated , , recorded in the official records of ___________________ County, State of ________________, on _______________, _______, as Document No. _________________ that grants a lien on the property described therein (the "Mortgaged Property"). The current servicer of the Loan is Servicer.
B. Section  of the Security Instrument provides that, subject to the terms therein set forth, Borrower shall have the right to substitute a new property (the “New Mortgaged Property”) in lieu of the Mortgage Property as collateral for the Loan (a “Substitution”) and obtain a release of the lien of the Security Instrument (the “Release”). Section  of the Security Instrument also provides that Borrower shall be entitled to deposit cash or deliver a letter of credit to Lender to hold as substitute collateral (the “Gap Collateral”) for the Loan during the period commencing on the date of Release and ending on the earl