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Encumbrance Amount complies with this paragraph. A form of Refinance Request Notice <br />for use by the Owner is attached hereto as Exhibit F. As part of its Refinance Request <br />Notice, the Owner shall provide to the City a copy of the HUD, -1 Settlement Statement. <br />C. Refinance of First Lender Loan. 'The City shall permit and approve a <br />prepayment and refinance 6f -the existing First Lender Loan and shall provide for the <br />subordination of this Agreement and the .City Deed of Trust to the refinanced First Lender <br />Loan only if such refinance does not cause the total debt secured by the Home, including <br />junior mortgage loan and e i ty lines of credit; to exceed the Pe ' itt' <br />, qui rrni ed Encumbrance <br />Amount.. The City will not approve any mortgage loan, which includes negative <br />amortization. <br />D. Junior Loans, and E <br />Aui!y Lines of Credit. Mortgage loans. 'or equity lines of <br />credit junior in lien priority to this Agreement and the City Deed of Trust. are not permitted, <br />except as when expressly approved by the City in writing; The City shall only -approve <br />junior mortgage loans or equity lines of credit which will not cause the total of all debt <br />secured by the Home (calculated assuming a maximum permitted draw on any equity line of <br />credit) to exceed the Permitted Encumbrance Amount. The City will not approve any <br />mortgage loan or equity line of credit, which includes negative amortization. <br />E. Re nest for Nonce of Default. Any time an Owner enters into a new <br />mortgage loan, including junior mortgage loans and equity lines of credit; the Owner shall. <br />cause to be recorded against the Home a request for notice of default, providing for notice of <br />default under such loan to be delivered to the City. <br />F. Pu -Mose of Restrictions on Refinance and Junior Loans. The City and the <br />Owner agree that the requirements of this Section 23 are necessary to ensure the continued <br />affordability of the Home to Owner and to minimize the risk of loss of the Home by Owner <br />through default and foreclosure of mortgage loans. Owner further acknowledges that <br />violation of the provisions of this Section 23 shall constitute a Default under this Agreement <br />for which the City may exercise the City's option upon default pursuant to Section 16 <br />above. <br />24. NONDISCRIMINATION <br />The Owner covenants by and for itself and its successors, and assigns that there shall <br />be no discrimination against or segregation of a person or of a group of persons on account <br />of race, color, religion, creed, age, disability, sex, sexual orientation, marital status, ancestry <br />or national origin in the sale, transfer, use, occupancy, tenure or enjoyment: of the Home,, nor <br />shall the Owner or any person claiming under or through the Owner establish or permit any <br />such practice or practices of discrimination or segregation with reference to the use, <br />occupancy, or transfer of the Home. The foregoing .covenant shall run with the land. <br />25. MONITORING AND INSPECTION BY CITY <br />A. The City (or its designee) may enter the Home for inspection following two <br />(2) business days advance written notice. <br />REV: 06-30-22 SK <br />ATMAGR.2022.166/Hugo Alberto Zarco Vargas & Andrea Vergara Cardenas (Page 20 of 40) <br />