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(a) Any sale or transfer by foreclosure or deed in lieu of foreclosure of a mortgage or deed of trust,
<br />Provided that such mortgage or deed of trust is an Approved Junior Lien
<br />(b) Transfer by gift, devise, or inheritance to Owner's spouse, child, or domestic partner registered
<br />with the State of California, only if such person qualifies as an Eligible Household (as defined in
<br />the Option Agreement);
<br />(c) Taking of title by a surviving joint tenant;
<br />(d) Transfer of title to a current spouse pursuant to divorce or dissolution proceedings;
<br />(e) Acquisition of title or interest therein through marriage; or
<br />(t) Transfers with the express prior written consent of Beneficiary, which approval may be withheld or
<br />conditioned in Beneficiary's sole and absolute discretion.
<br />Consent to one transaction, including but not limited to a Transfer, by Beneficiary will not be deemed a
<br />waiver of the right to require consent to further or successive transactions. Any Transfer in violation of this
<br />section will cause all indebtedness secured by this Deed of Trust, irrespective of the maturity dates, at the
<br />option of the Beneficiary and without demand or notice, immediately to become due, together with any
<br />prepayment premium in accordance with the terms of the Note.
<br />Trustor acknowledges that the transaction for the sale to the Trustor of the Property secured by this Deed
<br />of Trust by Beneficiary was made under special circumstances whereby Beneficiary has made available to
<br />Trustor below market rate housing for acquisition by certain purchaser owners as qualified households,
<br />with the express understanding that such owners who so qualify as qualified households to purchase such
<br />housing are receiving a special and unique benefit by a not-for-profit organization, and that such owners
<br />do not intend to receive, and are not entitled to receive, any rights to equity or appreciation of value of the
<br />real property sold to them and secured by this Deed of Trust, except as provided for in Section 6.6 of the
<br />Option Agreement. As such, the sale, conveyance or other Transfer of any of such real property is
<br />antithetical to the purpose and intention of the making available to said persons who qualify as qualified
<br />households such below market rate housing and the express purpose for the making of the loan by
<br />Beneficiary to Trustor, and will frustrate the basic purposes for which the Property was sold to the Trustor.
<br />In the event that Trustor or any other party should make, execute, deliver and/or record any instrument
<br />which sells. conveys or otherwise Transfers the real property subject to the lien of this Deed of Trust,
<br />except for an Approved Junior Lien, such instrument is and shall be deemed to be null and void and shall
<br />not entitle any party to any rights, title or claim to or against the title to the Property, unless Beneficiary has
<br />expressly, in a writing which is recorded, consented to such sale, conveyance or other Transfer. "Transfer'
<br />shall include the formation by Trustor of a corporation or partnership that holds any interest in the Property
<br />encumbered by this Deed of Trust.
<br />3. Impounds; Impound Account - Funds for Taxes and Insurance. Subject to applicable law or to a
<br />written waiver by Beneficiary, Trustor shall pay to Beneficiary on the day monthly payments are due under
<br />the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes and assessments which may
<br />attain priority over this Deed of Trust as a lien on the Property; (b) yearly hazard or property insurance
<br />premiums, if any; (c) yearly flood insurance premiums, if any; and (d) yearly mortgage insurance
<br />premiums, if any. These items are called "Escrow Items." Beneficiary may, at any time, collect and hold
<br />Funds in an amount not to exceed the maximum amount allowed by applicable law, or which a Beneficiary
<br />for a federally related mortgage loan may require for Trustor's escrow account under the federal Real
<br />Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. Section 2601 of seq.
<br />("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Beneficiary may, at
<br />any time, collect and hold Funds in an amount not to exceed the lesser amount. Beneficiary may estimate
<br />the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future
<br />Escrow items or otherwise in accordance with applicable law.
<br />The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality,
<br />or entity (including Beneficiary, if Beneficiary is such an institution) or in any Federal Home Loan Bank.
<br />Beneficiary shall apply the Funds to pay the Escrow items. Beneficiary may not charge Trustor for holding
<br />—B-4—
<br />SF #4844-8989-8473 v1
<br />REV: 05-19-2021 SK
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