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CITY COUNCIL DRAFT <br />proposed Transfer is a Prohibited Transfer. Any attempt to Transfer the Property without the City's <br />written approval, or after the City has given notice of a Prohibited Transfer, shall be a Default of <br />this Agreement, and the City may apply to a court of competent jurisdiction for specific <br />performance of this Agreement, for an injunction prohibiting a proposed sale or Transfer in <br />violation of this Agreement, for a declaration that the Prohibited Transfer is void, or for any such <br />other relief as may be appropriate. <br />5.7 Delivery of Documents. Upon the close of the proposed Transfer, Homebuyer and <br />Transferee, as applicable, shall provide the City with a copy of the final sales contract, settlement <br />statement, escrow instructions, all certificates required by this Section 5 and any other documents <br />City may request. <br />6. ENCUMBRANCES. <br />6.1 Subordination. Except as provided otherwise herein, the provisions of this <br />Agreement, the Notice of Affordability Restrictions and the City Deed of Trust, the obligations <br />herein and therein, shall be subordinate only to the First Lien on the Property and, if applicable, <br />other loan(s) as approved by the City, including lien instruments that secure other Homebuyer <br />purchase money and/or down payment assistance, including without limitation City, State of <br />California, or federal affordable housing programs, which liens shall not impair the rights under <br />the First Lien in the event of default under the First Lien by Homebuyer. Such remedies under the <br />First Lien include the right of foreclosure or acceptance of a deed or assignment in lieu of <br />foreclosure. <br />6.2 Request for Notice of Default. City may cause a Request for Notice to be <br />recorded on the Property subsequent to the recordation of the First Lien deed of trust or mortgage <br />requesting a statutory notice of default as set forth in California Civil Code Section 2924b. A form <br />of a Request for Notice is attached hereto as Exhibit I and incorporated herein. <br />6.3 Further Encumbrances. Homebuyer agrees that it shall not record or cause the <br />recordation of any deed of trust ("Further Encumbrance") securing a note having an original <br />principal sum which, when added to the sum of the principal amount(s) of any notes secured by <br />any deeds of trust against the Property as of the date of recordation of the Further Encumbrance, <br />exceeds one hundred percent (100%) of the fair market value of the Property. <br />7. USES. Homebuyer covenants and agrees to devote, use and maintain the Property in <br />accordance with this Agreement. All uses conducted on the Property, including, without <br />limitation, all activities undertaken by Homebuyer pursuant to this Agreement, shall conform to <br />all applicable provisions of the Santa Ana Municipal Code, and the recorded documents pertaining <br />to and running with the Property. <br />8. NONDISCRIMINATION COVENANTS. <br />Homebuyer covenants by and for itself, its successors and assigns, and all persons claiming under <br />or through them that there shall be no discrimination against or segregation of, any person or group <br />of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the <br />Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and <br />Exhibit B <br />Page 36 <br />5 53 94.0010 1 \43721567.2 <br />