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B. Second, in payment of principal on any Future Advances made pursuant to Section 24 of this Deed of Trust. C. Third, in partial payment of that portion of the principal and interest related thereto which are described in Section 2 of the Note. 4. Occupancy. Borrower shall be the sole user ofthe Property conveyed by this Deed ofTrust, subject to Section 22; and the Regulatory Agreement executed on January 13, 1997, ("Regulatory Agreement') by the City and Housing Opportunities Utilizing Supportive Services ("HOUSE, Inc.") the predecessor in interest to Borrower, and recorded on January 17, 1997, as Series No. 97016086, Alameda County Records, as amended by the Amendment to Regulatory Agreement executed by Borrower and City of even date herewith. Borrower shall not lease the Residence without providing the approval ofthe City. Any lease in violation of this Agreement or the Regulatory Agreement is prohibited. 5. Sale or Transfer of Property. Before sale or transfer of title ofthe Property, the Borrower, or, the Borrower's representative, shall notify the Lender of Borrower's intention to sell or otherwise transfer title. Except as otherwise provided in Section 22 ofthis Deed of Trust, when Borrower transfers title, the entire Loan which is evidenced by the Note shall be immediately due and payable. Upon sale of the Property, Lender shall be paid the amounts described in the Note. 6. Charges; Liens. Borrower shall pay all taxes, insurance, assessments and other charges, fines and impositions attributable to the Property which may attain a priority over this Deed of Trust, in the manner provided under Section 2 hereofor, if not paid in such manner, by Borrower making payment, when due, directly to the payee thereof. Borrower shall promptly furnish to Lender all notices ofamounts due under this Section, and in the event Borrower shall make payment directly, Borrower shall promptly furnish to Lender receipts evidencing such payments. Borrower shall promptly discharge any lien which has priority over this Deed of Trust; provided, that Borrower shall not be required to discharge any such lien so long as Borrower shall agree in writing to the payment ofthe obligation secured by such lien in a manner acceptable to Lender, or shall in good faith contest such lien by, or defend enforcement of such lien in, legal proceedings which operate to prevent the enforcement ofthe lien or forfeiture of the Property or any part thereof. Borrower shall not allow the attachment of any subordinate lien or other encumbrance on the Property without the prior written consent ofthe Lender. Borrower shall promptly pay when due all installments or payments required by and comply with all obligations of any deed of trust that is prior to this Deed of Trust. 7. Insurance. Borrower shall maintain general comprehensive insurance to keep the improvements now existing or hereafter erected on the Property insured against loss by 3