1231 Warren - Occupancy, Refinancing and Resale Restriction Agreement

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negligent, faulty, inadequate or defective building or construction or any condition of the Home and Owner agrees that neither Owner, or Owner's heirs, successors or assigns shall ever claim, have or assert any right or action against the City for any loss, damage or other matter arising out of or resulting from any condition of the Home and will hold the City harmless from any liability, loss or damage for these things. C. Indemnity. Owner agrees to defend, indemnify, and hold the City harmless from all losses, damages, liabilities, claims, actions, judgments, costs, and reasonable attorneys' fees that the City may incur as a direct or indirect consequence of: (1) Owner's default, performance, or failure to perform any obligations as and when required by this Agreement or the Deed of Trust; (2) the failure at any time of any of Owner's representations to the City to be true and correct; or (3) Owner's purchase or ownership of the Home. 18. RESTRICTIONS ON FORECLOSURE PROCEEDS If a creditor acquires title to the Home through a deed in lieu of foreclosure, a trustee's deed upon sale, or otherwise, the Owner shall not be entitled to the proceeds of sale to the extent that such proceeds otherwise payable to the Owner when added to the proceeds paid or credited to the creditor exceed the Maximum Allowable Resale Price. The Owner shall instruct the holder of such excess proceeds to pay such proceeds to the City in consideration of the benefits received by the Owner through purchase of the Home under this Agreement. Owner's obligations under this Section 18 shall survive termination of this Agreement, and if this Agreement is terminated after foreclosure or acceptance of a deed or assignment in lieu of foreclosure on the Home as contemplated by Section 22 of this Agreement. 19. RESTRICTION ON INSURANCE PROCEEDS If the Home is damaged or destroyed and the Owner elects not to rebuild or repair the Home, the Owner shall pay the City the portion of any insurance proceeds received by the Owner for such destruction or damage which is in excess of the Maximum Allowable Resale Price calculated pursuant to Exhibit B of this Agreement. 20. TERM OF AGREEMENT All the provisions of this Agreement, including the benefits and burdens, run with the land and the Home and this Agreement shall bind, and the benefit hereof shall inure to, the Owner, his or her heirs, legal representatives, executors, successors in interest and assigns, and to the City and its successors for the "Term" of this Agreement, which is the earlier of (i) forty-five (45) years from the date of this Agreement or (ii) the date of Transfer of the Home to the City or another purchaser in compliance with this Agreement (conditioned upon the execution by the purchaser of a new resale restriction agreement for the benefit of the City, which shall commence a new forty-five (45) year term). 21. SUPERIORITY OF AGREEMENT The Owner covenants that he or she has not, and will not, execute any other REV: 06-30-22 SK ATTY/AGR.2022.166/Hugo Alberto Zarco Vargas & Andrea Vergara Cardenas (Page 18 of 40)