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D. HUD Security Agreement between Borrower and HUD (the "HUD <br />Security Agreement"); <br />E. UCC Financing Statement between Borrower, as Debtor, and HUD, as <br />Secured Party, filed with the California Secretary of State (the "UCC <br />Financing Statement"); <br />F. HUD Project Rental Assistance Contract (the "PRAC"); and <br />G. Other HUD Capital Advance documents. <br />1. Term of Rider. Notwithstanding anything else in this Rider to the contrary, the <br />provisions of this Rider shall be and remain in effect only so long as the HUD <br />Documents, or any of them, are in effect; thereafter, this Rider and its <br />requirements shall be deemed no longer in effect. <br />2. Subordination. The covenants contained in the City and Agency Loan Documents <br />shall be subordinate to the rights of HUD under the HUD Documents, and to the <br />HUD rules and regulations pertaining thereto; and furthermore, the City and <br />Agency Loan Documents shall not be enforceable against the HUD Secretary, his <br />or her successors and assigns, should the HUD Secretary acquire title to the <br />Property by power of sale, foreclosure, or by deed in lieu of foreclosure. In <br />addition, so long as the HUD Documents are in effect, in the event that there are <br />any conflicts between the terms and conditions in the City and Agency Loan <br />Documents and the terms and conditions of the HUD Documents and HUD rules <br />and regulations pertaining thereto, the HUD documents and HUD rules and <br />regulations shall prevail. No default maybe declared under the City and Agency <br />Loan Documents without HUD prior written consent. <br />HUD Rules. During the time period in which Section 202 or the PRAC <br />regulations apply to the Development, rents approved by HUD pursuant to the <br />Section 202 program and the PRAC shall be deemed to be in compliance with the <br />City and Agency Regulatory Agreement and the OPA, and compliance by the <br />Developer with the Section 202 Regulations and the PRAC with respect to <br />continued occupancy by households whose incomes exceed the eligible income <br />limitations in the City and Agency Regulatory Agreement and the OPA, or other <br />matters set forth in the City and Agency Regulatory Agreement and the OPA, <br />shall be deemed to be compliance with the requirements of the City and Agency <br />Loan Documents. Nothing in the City and Agency Loan Documents shall in any <br />way limit, interfere or conflict with the rights of HUD with respect to <br />development, operation and management of the Development; nor can the City <br />and Agency Loan Documents in any way jeopardize the continued operation of <br />the Development in terms at least as favorable to existing as well as future terms. <br />1194386-5 <br />v <br />