RIDGE VIEW COMMONS - CONSTRUCTION LOAN

order requires additional funds over and above the original contract price, Contractor shall not proceed with such change order until Borrower has depo- sited with Lender funds sufficient to cover such increased cost or has made other arrangements satisfactory to Lender, and Lender has given written verification of such deposit or other arrangement for the change order to Contractor. 4. Contractor hereby expressly subordinates all contractual, constitu- tional and statutory mechanic's and materialmen's liens to which Contractor may be or become entitled to assert against the real property or the improve- ments (including removable fixtures) to the liens, security interests, claims, rights, remedies and recourses created by the Building Loan Agreement and those certain Deeds of Trust of even date herewith from Borrower for the benefit of Lender. 5. Nothing herein shall be construed to impose upon Lender any duty to see to the application of the proceeds contemplated by the Building Loan Agreement. Borrower and Contractor acknowledge that Lender is obligated under the Building Loan Agreement only to the Borrower and to no other person or entity. Borrower and Contractor are executing this instrument to induce Lender to enter into the Building Loan Agreement and transactions described therein, and Borrower and Contractor understand that Lender would not do so but for Borrower's and Contractor's execution and delivery of this instrument. 6. Lender shall have the right to enforce Borrower's rights under the Construction Contract and to bring an action for the breach thereof in the name of Lender or, at Lender's option, in the name of Borrower, in the event the Contractor breaches the Construction Contract; provided, however, Lender shall not be obligated to enforce such Construction Contract or bring an action for the breach thereof. 7. Borrower hereby covenants and agrees to comply with all of the terms and provisions of the Construction Contract and agrees that a default by Borrower in its obligations under the Construction Contract shall be deemed a default under the terms and provisions of the Building Loan Agreement and shall entitle Lender to all remedies therein provided. 8. If an event of default under the above referenced documents does not occur and the improvements are completed in accordance with the Building Loan Agreement, then this Assignment shall terminate. IN WITNESS WHEREOF, this instrument is executed as of this 27th day of June, 1988. BORROWER: EDEN HOUSING, INC. a California nonprofit corporation By: 1 t �UIV Catherine A. Merschel, Executive Director ^0 CONTRACTOR: BOGARD CONSTRUCTION, INC., a California corporation By: