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Property free and clear from such restrictions, The City shall promptly <br />execute, acknowledge and deliver for recordation such subordination <br />documents or agreements as necessary to confirm the foregoing <br />subordination. <br />III. Default and Foreclosure <br />III -A. The City shall record a request for notice of default and any notice of sale <br />under any deed of trust or mortgage with a power of sale encumbering the <br />Inclusionary Unit pursuant to California Civil Code Section 2924b. <br />Whether or not a request for a notice of default is recorded, the Owner <br />shall provide a true and correct copy of any notice of default to the City <br />within three (3) business days of the Owner's receipt. <br />III -B. In the event of default and foreclosure, the City shall have the same rights <br />as the Owner to cure any defaults and reinstate the Senior Loan prior to <br />foreclosure sale or the acceptance of a deed in lieu of foreclosure by the <br />Senior Lender. Such reinstatement shall be subject to the same fees, <br />charges and penalties that would otherwise be assessed against the <br />Owner. Nothing herein shall be construed as creating any obligation on <br />the part of the City to cure any such default, nor shall this right to cure and <br />reinstate operate to extend any time limitations in the default provisions of <br />the underlying deed of trust or mortgage. <br />III -C. If the trustee set forth in Senior Lender's deed of trust sells the <br />Inclusionary Unit at a foreclosure sale, the proceeds shall be delivered in <br />the following priority to the extent funds are available: <br />1. Payment of all delinquent assessments, if any, to the extent required by <br />the Project CC&Rs; <br />2. Payment of all sums due and owing under the Senior Loan, including <br />without limitation the principal amount, interest, fees and costs of sale; <br />3. Payment to the City of the City Share of Excess Sales Proceeds; <br />4. Repayment of all sums due and owing to junior creditors; and <br />5. Any remaining amounts shall be paid to the Owner. <br />III -D. By taking a loan from a Senior Lender, the Owner represents that it has <br />provided the Senior Lender with the necessary consent and authorization <br />Inclusionary Housing Covenants Declaration Page 24 <br />City of Santa Ana January 2015 <br />32A-91 <br />