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19. Severability <br />Every provision of this Note is intended to be severable. In the event any term or provision <br />hereof is declared by a court of competent jurisdiction, to be illegal or invalid for any reason <br />whatsoever, such illegality or invalidity shall not affect the balance of the terms and provisions <br />hereof, which terms and provisions shall remain binding and enforceable. <br />20. Number and Gender. <br />In this Note the singular shall include the plural and the masculine shall include the feminine <br />and neuter gender, and vice versa, if the context so requires. <br />21. Non-recourse. <br />The City/HOME Loan is a nonrecourse obligation of the Borrower. Neither Borrower nor <br />any other party shall have any personal liability for repayment of the City/HOME Loan or for any <br />other amounts under any of the documentation evidencing, securing or describing the City/HOME <br />Loan. The sole recourse of City under this Note and the City/HOME Loan Deed of Trust for <br />repayment of the City/HOME Loan and for such other amounts arising therefrom shall be the <br />exercise of its rights against the Property and related security thereunder. <br />22. Subordination. <br />a. It is hereby expressly agreed and acknowledged by Borrower and City that the <br />City/HOME Loan Deed of Trust is a subordinate deed of trust, and that this Note is subject and <br />subordinate to the Senior Loan Deeds of Trust held by the Senior Lender, subject to and provided <br />that the City and such Senior Lender enter into a subordination agreement providing notice and cure <br />rights to City that are reasonably acceptable to the Executive Directors and consistent with the <br />requirements of Section 20 of the Affordability Restrictions. <br />b. City acknowledges that Borrower and the California Tax Credit Allocation <br />Committee intend to enter into, or concurrently with the execution and delivery of the Loan <br />Documents are entering into, an extended use agreement, which constitutes the extended low-income <br />housing commitment described in Section 42(h)(6)(B) of the Internal Revenue Code, as amended. <br />City agrees to subordinate the provisions of this Note to the relevant provisions of said extended use <br />agreement. This subordination is being made in consideration of the allocation of tax credits to the <br />project to be constructed on the Property, absent which the development of the Project would not <br />occur, and this City/HOME Loan would not be made. <br />23. Notice of Default. <br />a. Subject to the applicable cure periods set forth in Section 16 and extensions of time <br />set forth in Section 25, and subject to the further provisions of this Section 23, failure or delay by the <br />Borrower to perform any term or provision of this Note constitutes a default under this Note. The <br />Borrower must immediately commence to cure, correct, or remedy such failure or delay and shall <br />complete such cure, correction or remedy-with reasonable diligence and during any period of curing <br />shall not be in default. <br />D-8 <br />DOCSOC/1475221 v5/200272-0004 <br />