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(D) Payment of the Contingent Equity Participation <br />Amount, if any. <br />b. Security for Homebuyer Assistance Loan. The obligation of the <br />Homebuyer to repay the Homebuyer Assistance Loan pursuant to this Agreement, as evidenced <br />by the Promissory Note, shall be secured by a subordinate deed of trust and rider thereto <br />encumbering the Property, substantially in the form of Exhibit "C" that is attached hereto and <br />incorporated herein by this reference (the "Agency Deed of Trust"). The Agency Deed of Trust <br />shall be executed by the Homebuyer, as trustor, in favor of the Agency, as beneficiary. <br />i. Subordination. Subject to the subordination provisions set forth <br />herein and in the Note and the Affordable Housing Resale Restriction, the Agency Deed of Trust <br />shall be subordinate only to the First Lien mortgage obtained by the Homebuyer and, if <br />applicable, other loan(s) as approved by the Executive Director, including lien instruments that <br />secure other homebuyer purchase money and/or downpayment assistance, including without <br />limitation City, State of California, or federal affordable housing programs. <br />j. Prepayment of Homebuyer Assistance Loan. The Homebuyer <br />may prepay the Homebuyer Assistance Loan to the Agency, provided that any prepayment must <br />be in full and not in part. Prepayment shall be treated in the same manner as refinancing of the <br />Property. In any event, the Affordable Housing Resale Restriction shall continue in full force <br />and effect, notwithstanding such prepayment. <br />k. Assumption of Homebuyer Assistance Loan and Promissory <br />Note. The Homebuyer Assistance Loan and the Promissory Note may be assumed by a <br />subsequent qualified Moderate Income Household, as purchaser of the Property, but only in <br />accordance with the terms and conditions set forth in Section 4. <br />1. Joint and Several. The undersigned, if more than one person, <br />shall be jointly and severally liable under this Agreement for the repayment of the Homebuyer <br />Assistance Loan. <br />m. Homebuyer's Waivers. The Homebuyer waives any rights to <br />require the Agency to: (i) demand payment of amounts due (known as "presentment"), (ii) give <br />notice that amounts due have not been paid (known as "notice of dishonor") and (iii) obtain an <br />official certification of nonpayment (known as "protest"). <br />2. Notice to Agency. The Homebuyer (or the Homebuyer's heirs following the <br />death of the Homebuyer) agrees to notify the Agency not less than sixty (64) days prior to (i) the <br />opening of escrow for the sale of the Property, (ii) the signing of any agreements or documents <br />related to the transfer, including, without limitation, lease, exchange or other disposition of any <br />interest in the Property, (iii) any proposed refinancing of any First Lien or (iv) the close of the <br />Homebuyer's probate estate. Nothing in this Section 2, however, shall be construed to authorize <br />the Property to be leased or rented. <br />3. Contingent Equity Participation Amount. If an event of acceleration occurs as <br />described in Section 1.2(f) and the Homebuyer is not selling the Property pursuant to Section 4, <br />ATTACHMENT NO. 11-5 <br />Form of Homebuyer Loan Agreement <br />DOCS001400673v 14!200272-0001