Agmt21 Home Program Affordable Housing Regulatory

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7.3 Notice of Breach to Approved Junior Lender. Habitat shall also provide City and the Approved Junior Lenders, a duplicate copy of all notices of default that Habitat may give to Owner pursuant to the terms provided in Section 7.2 above. Habitat shall deliver such notice to City and the Approved Junior Lenders in the manner provided for in Section 11.4. 7.4 Remedies. Upon the occurrence of an Event of Default, Habitat and/or the City may exercise any or all of the remedies set forth below: (a) Habitat and the City shall have the right to exercise the Option pursuant to Section 6; (b) Habitat and the City shall have the right to institute an action for specific performance of the terms of this Agreement, for an injunction prohibiting a proposed Transfer in violation of this Agreement, or for a declaration that a Transfer is void: (c) Habitat shall have the right to institute an action for foreclosure on the Habitat Deed of Trust and/or to accept a deed in lieu of foreclosure, and the City shall have the right to institute an action for foreclosure on the Homebuyer Deed of Trust executed for the benefit of City and/or accept a deed in lieu of foreclosure; (d) Habitat and the City shall have the right to exercise all other remedies permitted by law or at equity; (e) Habitat shall have the right to exercise its power of termination pursuant to the Grant Deed; (f) The City shall have the right to call the balance due under the HOME Homebuyer Note; and (g) The City shall have the right to exercise its remedies pursuant to the HOME Homebuyer Deed of Trust. 8. LENDER PROVISIONS 8.1 No Additional Loans or Further Encumbrances. Owner may not take out any mortgage or equity lines of credit on the Home, cause a lien to be attached to the Home or otherwise encumber the Home with anything other than the Habitat Deed of Trust, this Agreement, the Homebuyer Deed of Trust executed for the benefit of City and other documents that may be required by San Mateo County or the City for the purchase of the Home; provided, however, Owner may encumber the Property with deeds of trust securing loans from any other Approved Junior Lien (as defined in the Habitat Addendum to Deed of Trust), provided such deeds of trust are subordinate to the Habitat Deed of Trust, and provided further that (i) the aggregate amount of all loans on the Home, including the Habitat Loan and the loans of all Approved Junior Lenders, if any, shall never exceed the Fair Market Value of the Home, and (ii) the debt service required to be paid in the aggregate on all loans secured by the Home shall not cause the Owner's monthly obligation to pay mortgage payments, property taxes, mortgage insurance, utilities, and homeowners' association dues, to exceed Affordable Housing Cost. Notwithstanding the repayment terms of any Approved Junior Lien, this Agreement and the requirement that the Home be sold at an Affordable Sales Price shall have priority over any subordinate liens requiring shared appreciation. 8.2 Default and Foreclosure. In the event of any default under any lien recorded against the Home, Habitat and City, in addition to any other remedies it may have under this Agreement, shall have the right to: (a) Cure such default, in which case Owner shall pay upon demand the expenses incurred by Habitat or City in curing such default; (b) Exercise its Option pursuant to Section 6; and (c) Foreclose their respective Deeds of Trust on the Home. SF #4815-2365-6406 v1 REV: 05-19-2021 SK