FRIENDS OF THE LACY HISTORIC NEIGHBORHOOD-2011

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securing a loan with provisions which allow negative amortization, or to refinancing of the First Lien for a loan amount in excess of the sum of the then current loan balance secured by the First Lien and loan closing costs. 14.1 Order of Recording. The Homebuyer agrees it shall instruct the Escrow Agent for the acquisition of the Property by the Homebuyer that the order of recording in the escrow for the purchase of the Property by Homebuyer shall occur as follows: (1) the Grant Deed, (2) the First Lien; (3) other affordable housing loan(s) as described in Section 3. 1, as permitted by the Executive Director; (4) the Affordable Housing Resale Restriction; (5) Notice of Affordability Restrictions and (6) the Agency Deed of Trust. The Agency shall cause a Request for Notice of Default to be recorded on the Property subsequent to the recordation of the First Lien deed of trust or mortgage requesting a statutory notice of default as set forth in the California Civil Code Section 2924b, and shall cause a request for Notice of Delinquency to be recorded on the Property subsequent to the recordation of the First Lien deed of trust or mortgage. 15. Indemnification. The Homebuyer shall pay for, defend, indemnify, and hold harmless the Agency and the City and their respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement. The Homebuyer shall remain fully obligated for the payment of property taxes, liens, and assessments related to the Property. There shall be no reduction in taxes for the Homebuyer, nor any transfer of responsibility to the Agency to make such payments, by virtue of the Homebuyer Assistance Loan. 16. Insurance. The Homebuyer shall maintain, during the term of the Homebuyer Assistance Loan, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property. The policy shall name the Agency and the City as loss payees and shall contain a statement of obligation on behalf of the carrier to notify the Agency of any material change, cancellation or termination of coverage at least thirty (30) days in advance of the date of such material change, cancellation or termination. The Homebuyer shall transmit a copy of the certificate of insurance and loss payee endorsement to the Agency within thirty (30) days of the effective date of this Agreement, and upon request by the Agency, the Homebuyer shall transmit to the Agency further copies of the certificate of insurance and a loss payee endorsement. The copy of the certificate of insurance and loss payee endorsement shall be transmitted to the Agency at the address set forth in Section 29. The form, content, issuer of any certificate of insurance must be reasonably acceptable to the Agency. 17. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, that if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period, and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not institute proceedings against the party in ATTACHMENT NO. 11-13 Form of Homebuyer Loan Agreement DOCSOCl l 400613 v 141200272-0001