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<br /> 5 <br />misstatement or misrepresentation pertaining to Borrower’s status <br />as an Eligible Person or Family; <br /> v. An uncured default in performance or breach by Borrower of any <br />provision of this Agreement, the Promissory Note, the City Deed <br />of Trust or the Affordability Covenants. <br /> <br /> (d) Excess Refinancing Proceeds. In the event that the First Mortgage <br />Loan is refinanced, any Excess Refinancing Proceeds shall be paid out in accordance <br />with City policy. <br /> <br />(e) Returning Student Loan Forgiveness Incentive. Returning <br />Students will be eligible for a loan forgiveness up to $40,000. Under this loan <br />forgiveness incentive, $10,000 will be forgiven from the City Promissory Loan Amount <br />every five (5) continuous years that the Returning Student remains in compliance with all <br />terms and conditions of this Agreement and the Affordability Covenants. The maximum <br />length of time for the Returning Student Loan Forgiveness Incentive shall be over a <br />twenty (20) year period, up to a maximum of $40,000 forgiven from the City Promissory <br />Loan Amount. In the event that the entire City Promissory Loan Amount is forgiven, the <br />Term of Affordability shall not be affected and shall remain enforceable for the complete <br />timeframe defined herein. <br /> <br /> 5. Nondiscrimination. There shall be no discrimination against or segregation <br />of any person, or group of persons, on account of race, color, religion, sex, disability, <br />marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, <br />occupancy, tenure or enjoyment of the Property, or any part thereof, nor shall Borrower <br />or any person claiming under or through Borrower establish or permit any such practice <br />or practices of discrimination or segregation with reference to the selection, location, <br />number, use or occupancy of the Property. The provisions of this section shall be set <br />forth in the Agreement Containing Covenants recorded against the Property. <br /> <br />6. Income Requirement. <br /> <br /> Borrower acknowledges the City’s intent that the Property remain <br />a. available to persons or families whose household annual income does <br />not exceed 120% of the area median income for the City, adjusted for family at <br />affordable housing cost for the longest feasible time, but in any event not less than Forty <br />Five (45) years from the date of recording of the Affordability Covenants, provided that <br />the Property remains habitable. <br /> <br />a. Borrower represents and warrants to the City that the information <br />b. relating to Borrower’s household income that has been provided by <br />Borrower to the City to verify Borrower’s eligibility for the City Loan is true, correct and <br />complete as of the date such information was provided to the City and as of the date of <br />this Agreement. If any such information changes prior to the close of escrow for the <br />purchase of the Property, Borrower shall promptly notify the City of such change. <br />Borrower acknowledges that the City is relying upon the representations made by <br />EXHIBIT 2