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11.2 Acceleration. The City shall be entitled to accelerate payments due under the <br /> City Promissory Note, and the amount required thereunder shall become due and immediately <br /> payable to City by Homebuyer upon the occurrence of any one of the following events of <br /> acceleration: <br /> 11.2.1 During the Affordability Terin, Homebuyer Transfers the Property for a <br /> price in excess of an Affordable Sales Price or to a Transferee who does not qualify as a.Very Low <br /> Income Household; <br /> 11.2.2 Homebuyer makes a Prohibited Transfer of title to or any interest in the <br /> Property without City's consent or in violation of this Agreement; <br /> 11.2.3 Homebuyer refinances any lien or encumbrance to which City Deed of Trust <br /> is subordinate (each such lien, a"First Lien") for a loan amount in excess of the then current loan <br /> balance secured by such lien or encumbrance and loan closing costs; <br /> 11.2.4 Homebuyer fails to occupy the Property as Homebuyer's principal <br /> residence or is in Default of any other obligation under the Affordable Housing Resale <br /> Restrictions; <br /> 11.2.5 Homebuyer has an Ownership Default violating any affordable housing <br /> terms or provisions of this Agreement. <br /> 12. COMPLIANCE WITH LAWS; GOVERNING LAW. <br /> Homebuyer hereby agrees to comply with all applicable ordinances,rules,and regulations of City. <br /> Nothing herein is intended to be, nor shall it be deemed to be, a waiver of any City ordinance,rule, <br /> or regulation. This Agreement shall be governed by the laws of the State of California. Any legal <br /> action brought under this declaration must be instituted in the Superior Court of the County of <br /> Orange, State of California, or in the Federal District Court in the Central District. <br /> 13. INDEMNIFICATION. <br /> Homebuyer shall pay for, defend, indemnify and hold harmless City and the City and their <br /> respective officers, officials, agents, employees, representatives, and volunteers from and against <br /> any loss, liability, claim, or judgment relating in any manner to Homebuyer's use of the Property <br /> or Homebuyer's violation of this Agreement. Homebuyer shall remain fully obligated for the <br /> payment of taxes, liens and assessments related to the Property. There shall be no reduction in <br /> taxes for Homebuyer, nor any transfer of responsibility to City to make such payments, by virtue <br /> of this Agreement. <br /> 14. INSURANCE. <br /> Homebuyer shall maintain,during the term of this Agreement,an all-risk property insurance policy <br /> insuring the Property in an amount equal to the full replacement value of the structures on the <br /> Property. The policy shall contain a statement of obligation on behalf of the carrier to notify the <br /> City of any material change, cancellation or termination of coverage at least thirty (30) days in <br /> advance of the effective date of such material change, cancellation or termination. Homebuyer <br /> Page 37 <br /> Exhibit B <br /> 55394.00 10]\43423340.S <br />