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4. 4 Subordination of Obligation to Finance Additional Mitigations - SUBORDINATION AGREEMENT. THIS AGREEMENT CON- TAINS A SUBORDINATION CLAUSE WHICH MAY RESULT IN A SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF A LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. Except to the extent assessment or benefit districts are otherwise imposed upon the Property in accor- dance with California law, the obliyations of Developer under this Agreement to finance Additional Mitigations through liens upon its property shall be automatically subordinate, without the execution and recordation of any instrument, to the lien of any deed of trust or other security instrument encumbering the Property, or any parcel thereof, in favor of a third party lender which secures the repayment of any construction loan or permanent loan, or both ("Loan" ) , provided the proceeds or such Loan are used only to develop or provide long-term financing for improve- ment of the Property, or parcel thereof, or both. The City shall execute such subordination agreement or other compar- able document as such lender may require to confirm the senior status of the lender ' s security. 5. TERM. The term of this Agreement shall commence on the effec- tive date of the ordinance adopting this Agreement and shall 10.