SANTA ANA 5, LLC -2015 - Laserfiche WebLink

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Property free and clear from such restrictions. The City shall promptly execute, acknowledge and deliver for recordation such subordination documents or agreements as necessary to confirm the foregoing subordination. III. Default and Foreclosure III -A. The City shall record a request for notice of default and any notice of sale under any deed of trust or mortgage with a power of sale encumbering the Inclusionary Unit pursuant to California Civil Code Section 2924b. Whether or not a request for a notice of default is recorded, the Owner shall provide a true and correct copy of any notice of default to the City within three (3) business days of the Owner's receipt. III -B. In the event of default and foreclosure, the City shall have the same rights as the Owner to cure any defaults and reinstate the Senior Loan prior to foreclosure sale or the acceptance of a deed in lieu of foreclosure by the Senior Lender. Such reinstatement shall be subject to the same fees, charges and penalties that would otherwise be assessed against the Owner. Nothing herein shall be construed as creating any obligation on the part of the City to cure any such default, nor shall this right to cure and reinstate operate to extend any time limitations in the default provisions of the underlying deed of trust or mortgage. III -C. If the trustee set forth in Senior Lender's deed of trust sells the Inclusionary Unit at a foreclosure sale, the proceeds shall be delivered in the following priority to the extent funds are available: 1. Payment of all delinquent assessments, if any, to the extent required by the Project CC &Rs; 2. Payment of all sums due and owing under the Senior Loan, including without limitation the principal amount, interest, fees and costs of sale; 3. Payment to the City of the City Share of Excess Sales Proceeds; 4. Repayment of all sums due and owing to junior creditors; and 5. Any remaining amounts shall be paid to the Owner. III -D. By taking a loan from a Senior Lender, the Owner represents that it has provided the Senior Lender with the necessary consent and authorization Inclusionary Housing Covenants Declaration Page 24 City of Santa Ana January 2015