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9.A. - Page 34 <br /> 3.5 If Borrower breaches the terms of the Rent Stabilization Program Loan <br /> Provisions of this section, the entire Program Loan with accrued interest shall be <br /> due in full within ninety (90) days of the City Manager's or his designee's final <br /> determination or within 90 days of the Program Manager's determination if no <br /> hearing is requested by Borrower pursuant to Section 3.4. <br /> 3.6 As long as Borrower is in compliance with all terms of this Loan Agreement, <br /> including the Rent Stabilization Program Loan Provisions of this section, then <br /> monthly payments due under the terms of the Promissory Note shall be deferred. <br /> 3.7 If Borrower performs and complies with all of the terms of this Loan Agreement, <br /> including the Rent Stabilization Program Loan Provisions of this section, then at <br /> the end of the Loan Term, the City shall forgive the deferred balance of interest <br /> and principal, the City shall cancel the Promissory Note, and the City shall <br /> reconvey the Deed of Trust. <br /> 4. No Refinancing; No Junior Loans; Subordination. <br /> 4.1 No Refinancing. The City will not refinance the Loan. The Loan is a one-time <br /> assistance product to support Borrower in accomplishing the Project. <br /> 4.2 No Junior Loans. Mortgage loans or equity lines of credit junior in priority to the <br /> Deed of Trust are not permitted, unless expressly approved by the City in writing. <br /> 4.3 Subordinations: <br /> 4.3.1 All requests for the subordination of the Loan must be made in writing. <br /> The request for subordination must clearly state the reason for the <br /> request. The City will only consider requests for subordination under the <br /> following conditions: <br /> (a) The lien position of the City Loan will remain the same or be <br /> advanced. <br /> (b) The new senior loan is not greater than the balance of the loan <br /> being refinanced, except the costs of refinancing the loan may be <br /> added to the principal balance. <br /> (c) The purpose of the new primary loan is to reduce the interest rate <br /> being paid and/or reduce the owner's payment. <br /> (d) The refinanced loan must have an impound account for taxes and <br /> insurance. <br /> (e) The refinancing terms must be acceptable to the City. <br /> 4.3.2 The City will not consider requests for subordination for the following <br /> reasons: <br /> (a) To receive cash out. <br /> ATTY/RES0.3085/CC RESO RWC FIRE SAFETY FIRST PILOT PROGRAM ATTACHMENT B-LOAN AGREEMENT <br /> REV:05-11-15 VR <br /> Page 5 of 12 <br />