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EXHIBIT D
<br /> 5. Encumbrances,
<br /> a. Subordination. Except as provided otherwise herein, the provisions of
<br /> the Loan Agreement, this Restriction, the Notice of Affordability Restrictions and the City Deed
<br /> of Trust and Rider, the obligations herein and therein, shall be subordinate only to the First Lien
<br /> on the Property and, if applicable, other loan(s) as approved by the Executive Director, including
<br /> lien instruments that secure other Homebuyer purchase money and/or down payment assistance,
<br /> including without limitation City, State of California, or federal affordable housing programs,
<br /> which liens shall not impair the rights under the First Lien in the event of default under the First
<br /> Lien by Homebuyer. Such remedies under the First Lien include the right of foreclosure or
<br /> acceptance of a deed or assignment in lieu of foreclosure. If title to the Property is transferred by
<br /> foreclosure or acceptance of a deed in lieu of foreclosure, or assignment of the First Lien to the
<br /> Secretary of the Department of Housing and Urban Development, the Loan Agreement, this
<br /> Restriction, and City Deed of Trust shall be automatically terminated and shall have no further
<br /> effect as to the Property or any Transferee thereafter. However, in no event shall the Loan
<br /> Agreement, the City Deed of Trust, and this Affordable Housing Resale Restriction, be
<br /> subordinate to any First Lien on the Property securing a loan with provisions which allow
<br /> negative amortization, or to refinancing of the lien of the First Lien for a loan amount in excess
<br /> of the sum of the then current loan balance secured by the First Lien and loan closing costs.
<br /> b. Request for Notice of Default. City may cause a Request for Notice to
<br /> be recorded on the Property subsequent to the recordation of the First Lien deed of trust or
<br /> mortgage requesting a statutory notice of default as set forth in California Civil Code Section
<br /> 2924b. A form of a Request for Notice is attached hereto as Exhibit C and incorporated herein.
<br /> c. Further Encumbrances. Homebuyer agrees that it shall not record or
<br /> cause the recordation of any deed of trust ("Further Encumbrance") securing a note having an
<br /> original principal sum which, when added to the sum of the principal amount(s) of any notes
<br /> secured by any deeds of trust against the Property as of the date of recordation of the Further
<br /> Encumbrance, exceeds one hundred percent(100%) of the fair market value of the Property.
<br /> 6. Reserved.
<br /> 7. Uses. Homebuyer covenants and agrees to devote, use and maintain the Property
<br /> in accordance with this Restriction. All uses conducted on the Property, including, without
<br /> limitation, all activities undertaken by Homebuyer pursuant to this Restriction, shall conform to
<br /> all applicable provisions of the Santa Ana Municipal Code, and the recorded documents
<br /> pertaining to and running with the Property.
<br /> 8. Nondiscrimination Covenants. Homebuyer covenants by and for itself, its
<br /> successors and assigns, and all persons claiming under or through them that there shall be no
<br /> discrimination against or segregation of, any person or group of persons on account of any basis
<br /> listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are
<br /> defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of
<br /> Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease,
<br /> transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the
<br /> grantee or any person claiming under or through him or her, establish or permit any practice or
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<br /> EXHIBIT B
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