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CITY COUNCIL DRAFT
<br />laws, ordinances and governmental regulations affecting the Property or requiring any alteration
<br />or improvement thereof, and will not suffer or permit any violations of any such law, ordinance or
<br />governmental regulation, nor of any covenant, condition or restriction affecting the Property. If
<br />there arises a condition in contravention of this Section, and if the Trustor has not cured such
<br />condition within thirty (30) days after receiving a notice from City of such a condition, then in
<br />addition to any other rights available to City, City shall have the right (but not the obligation) to
<br />perform all acts necessary to cure such condition, and to establish or enforce a lien or other
<br />encumbrance against the Property to recover its cost of cure.
<br />10. Occupancy. Trustor shall occupy the Property as Trustor's primary residence, and
<br />the Property shall be used as the primary residence of Trustor and Trustor's household and for no
<br />other purpose. The Property shall not be leased or rented by Trustor to any person or entity other
<br />than as expressly permitted by the Affordable Housing Resale Restrictions or consented to by City
<br />in writing. The City shall have the right to monitor whether the Property is owner -occupied by
<br />requesting that Trustor provide City with a written certification under penalty of perjury that the
<br />Property is owner -occupied, accompanied by supporting documentation reasonably satisfactory to
<br />the City.
<br />11. Transfer. Trustor shall not allow any Further Encumbrance or Transfer of the
<br />Property (as such terms are defined in the Affordable Housing Resale Restrictions) any without
<br />complying with all requirements of the Affordable Housing Resale Restrictions.
<br />12. Assignment of Rents. Trustor hereby irrevocably, absolutely, presently and
<br />unconditionally assigns to City the rents, issues, revenue and profits of the Property. This is an
<br />absolute assignment and not an assignment for security only. Subject to the limitations on lease or
<br />rental of the Property as set forth herein and in the Affordable Housing Resale Restrictions, City
<br />hereby confers upon Trustor a license to collect and retain such rents, issues, revenue and profits,
<br />as they become due and payable prior to any Default hereunder. Upon the occurrence of any such
<br />Default, City may terminate such license without notice to or demand upon Trustor and without
<br />regard to the adequacy of any security for the indebtedness hereby secured, and may either in
<br />person, by agent, or by a receiver to be appointed by a court, enter upon and take possession of the
<br />Property or any part thereof, and sue for or otherwise collect such rents, issues, and profits,
<br />including those past due and unpaid, and apply the same, less costs and expenses of operation and
<br />collection, including reasonable attorneys' fees, to any indebtedness secured hereby, and in such
<br />order as City may determine. City's right to the rents, issues, revenue and profits of the Property
<br />does not depend upon whether or not City takes possession of the Property. The entering upon and
<br />taking possession of the Property, the collection of such rents, issues, revenue and profits, and the
<br />application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder
<br />or invalidate any act done pursuant to such notice. If a Default occurs while City is in possession of
<br />all or part of the Property and/or is collecting and applying rents as permitted under this Deed of
<br />Trust, City, Trustee and any receiver shall nevertheless be entitled to exercise and invoke every
<br />right and remedy afforded any of them under this Deed of Trust and at law or in equity, including
<br />the right to exercise the power of sale granted hereunder. Regardless of whether or not City, in
<br />person or by agent, takes actual possession of the Property, City shall not be deemed to be a
<br />"mortgagee in possession," shall not be responsible for performing any obligation of the lessor
<br />under any lease, shall not be liable in any manner for the Property, or the use, occupancy, enjoyment
<br />Exhibit D
<br />Page 54
<br />5 53 94.0010 1 \43721567.2
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