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6.1.E. - Page 38 18. Su eriori of Re Restrictton reeme t. Owner covenan#s that Owner has not, and wil� not, execc�#e any other agr�ernent with provisions contradictory to or in opposittan to the pro�isions af#hfs Resale Restriction Agreement, and tF�at, in any event, this Resale Restriction Agreement is oontrr�lling as to the righfs ar�d at�ligations between ancf amang Qwner, the City and their respec#iv� successors and assigns. 19. Ric�hts of Mortc�aa_ee5�, Mortaaae �.ehder Acauisition. This Se�fic�r� �!S exists to accommodate and balance the Cit�s interest in maintaining a suppfy of afFar�able housing units and t�r� interesf of property mortgage lenders ("Lender(s��') in seiling Subjeet �0.ffordable Ur�i# it acquRred fhrough foreclosure acfian ar deed in lieu of fareclosure (collectiveiy, �Foreclasure"). Mortgagees sha11 natify the Cfty within twrenty (2Q) days of filir�g a Natice of Default against ifie Subj�at Affordable Unit. Before acquisition of the Subject Aff�rd�ble Clnit fF�rough Forectosure, the Cfty shall have #he aptior�, but C1bt th� obligatiptl, to cu�e such default. Upon acquisit�on of the Subject Affordabfe Unft by a Lender th�ough Foreclosure, the Lender shall, at feast sixty {6Q) days �rior tc� sefling, conveyir�g, transferr�ng or otherwise disposPng of the Subject Affordabl� Unit, offer to sell the Subject Affordable Unit to the City fQr a �urchase price eQual fa the orlgiRal p�rchase price of the S�bject Affordabie Un+t paid by th� de�aulting Owner, fr� #he event the Gi�y afects to p�rchase ihe Subject Affordable tJnit, the City and Lender shall op�n es�row with a mutualiy agreeab(e escrow company and shal� share e�uafly ir� escrow related expenses except fif�at Gity shall r�ot pay any expenses customarily paid �y seflers in San Mateo County, Califomia. Suc� escrow period shall be no less than thirty (30) days. At any time befiween receipt o�offer t� purchase the Subject Affardable Ut�it and the c�as� ot escrow as �lescribed herein, e�en after the City �otifi�s Lender that it exercises ifs o�tion, the City may assign its rigi�f ta purchase the Subject Afford�ble Ur�if ta a person or entity of its chnosing, The City may re-assign its right to �urchase tv surceed�ng persons or entities of its choosing in the event that the initiai assig�ee wifhdraws or is disquali�ied from #he purchase, provider� t�at the close of escrow is within the originaf nine#y (9D) days or suc� additional period as is a�reed fo by Lender, ff the Cify or an asstgnee of the City fiails to cc�mplete t�e purchase for any reasan, the City may withdraw from the purchase witF�put penal�y or lia�ili#y and Lender may selt t�e S�bject Affordable Unit as if the City �rad failed #o exercise its flption. !n the event th� City deG�nes to purchase the Subject Affardable Uni# within sixty (60j days of receipt of a wntten ofiF�r to self the Subject Affordab{e Unit to #Fie City, or the City elects na# ta purchase the Sub�ect AfFordable Unit after ninety {90) d�ys (in tt�e event escrow is apened as provided herein), the Lender shal! be permitfed to sell the Suf�lect Affordable Unit, free c�f this Resale Restriction Agreement, to any third par#y wifling to pur�F�ase the Sub�ect AfFordable Unit. in such event, in recognition of the City's loss af the Subject Affordable Unit as an afFordable housing unit, ar�y sales proceeds received by a L�r�d�r#r� excess of those amounfs du� tl�e Lender (in�luding reasonable torecfosure expenses and clasing costs}, shall be remittec! to the City cancurrer�fly with