HomeMy WebLinkAbout2016 CON (DECLARATION OF CC&R's) Christopher and Maritza Hunter - 516 East 24th Streetrecording Requested By
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FREE RECORDING REQUESTED
PURSUANT TO GOVERNMENT CODE
27383
Recording Requested By And When
Recorded Mail to:
City of National City
Housing, Grants, and Asset Management
1243 National City Boulevard
National City, CA 91950
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DOC# 2016-0391204
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Aug 02, 2016 03:34 PM
OFFICIAL RECORDS
Ernest J. Dronenburg, Jr.,
SAN DIEGO COUNTY RECORDER
FEES: $45.00
PAGES: 11
SPACE ABOVE TIIIS LINE FOR RECORDER'S USE
[RECORD AFTER THE 1ST DEED OF TRUST]
DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS
(HUD HOME Program 3% Deferred)
City Loan No. 16NC1
THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS
("Declaration") is made as of this 22th day of July 2016, by Christopher K. Hunter and Maritza
Yaneth Hunter (hereafter collectively and/or individually `Borrowers"), in connection with that
certain parcel of real property ("Property") located at 516 East 24th Street in the City of National
City, County of San Diego, California, described in Exhibit "A" attached hereto and incorporated
herein by reference.
RECITALS
A. Concurrently with the recordation of this Declaration, the City of National City
("Lender") is funding a loan to Borrower ("HUD HOME Loan") evidenced by a promissory note
("HOME Note"). The HUD HOME Loan is secured by a deed of trust ("Deed of Trust") made
by Borrower, as trustor, in favor of the Lender as beneficiary. The Lender is making the HUD
HOME Loan to aid Borrower, who is a first-time homebuyer, in acquiring the Property.
B. The Deed of Trust and HUD HOME Loan and were conditioned in part upon the
recordation of this Declaration against the Property.
NOW, THEREFORE, Borrower hereby declares that the Property shall be subject to the
'covenants, conditions and restrictions set forth below:
1. Representations and Warranties of Borrower. Borrower declares, represents and warrants
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HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS
to the Lender and agrees as follows:
(a) Income Eligibility Requirements -Annual Gross Income 092.203). Borrower's
annual gross income, including the income of any co -purchasers or co -tenants, at the time of the
execution of this Declaration does not exceed eighty percent (80%) of the Area Median Income
for the San Diego -Carlsbad -San Marcos Metropolitan Statistical Area, as adjusted for family
size, as determined by HUD.
(b) Principal Place of Residence. For so long as the Deed of Trust is recorded against
the Property, Borrower will reside in the Property as Borrower's principal place of residence.
The Borrower shall be considered as occupying the Property as a principal place of residence if
the Borrower is living in the Property for at least ten (10) months out of each calendar year.
Borrower agrees not to neglect, sublet, lease or rent out all or any portion of the Property during
such period.
(c) Ownership Interest. The Borrower has fee simple title on the Property (24 CFR
Part 92.254).
(d) Liquid Assets. At the time of the execution of this Declaration, Borrower,
including any co -purchasers or co -tenants and all other household members, does not hold,
directly or indirectly, "liquid assets", as defined below, whose aggregate value exceeds $25,000.
As used herein, the term "liquid assets" refers to cash and assets which are readily convertible to
cash within a reasonable period, including but not limited to savings and checking accounts,
certificates of deposit of any term, marketable securities, money market and similar accounts,
mutual fund shares, and insurance policy cash values. The term "liquid assets" shall not include
retirement funds which are not readily accessible or which cannot be accessed by the buyer
without the buyer incurring a penalty.
(e) Not a Full -Time Student. Borrower is not, and none of the co -purchasers or co-
tenants of Borrower are, a full-time student, or a household comprised exclusively of persons
who are full-time students, unless such persons are married and eligible to file a joint federal
income tax return. The term "full-time student" shall be defined as any person who will be or
has been a full-time student during five calendar months of the calendar year in question at an
educational institution (other than a correspondence school) with regular faculty and students.
(f) Not a Student Dependent. Borrower is not, and none of the co -purchasers or co-
tenants of Borrower are, a student dependent as defined in the U.S. Internal Revenue Code,
unless the taxpayer (upon whom the student in question is dependent) resides in the Property.
(g) Not an Owner of Real Property. Borrower does not, and none of the co -
purchasers of Borrower, own any real property at the time of escrow closing for the subject
Property.
(h) First -Time Home Buyer, Displaced Homemaker or Single Parent. Borrower
satisfies at least one of the following criteria:
(1) Borrower is a first-time home buyer; that is, he or she has not owned a
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HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS
home within the three-year period immediately preceding the date of this
Declaration;
(2) Borrower is a displaced homemaker as defined in 24 C.F.R. §92.2; or
(3) Borrower is a single parent as defined in 24 C.F.R. §92.2.
(i) Homebuyer Counseling. Borrower has attended a HUD -approved Homebuyer
Counseling session.
2. Due on Sale, Default, or 30-Years.
(a) Borrower shall pay principal and all accrued interest (either simple interest or
default interest, as the case may be) on the HOME Note, in one lump sum, to
Lender upon the earliest of: (1) a Sale (as defined in Section 2(b), below); (2) a
default after completion of the applicable acceleration procedures set forth in
Section 3, below; or (3) thirty (30) years from the date first written above.
Borrower shall make any payments at the City of National City Finance
Department's office located at 1243 National City Boulevard, National City,
California 91950, or such other place as designated by Lender
(b) Sale Defined. The following shall all be considered transfers or sales of the
Property and shall be referred to herein generally as a "Sale": (i) all or any part of
the Property or any interest in the Property is sold, conveyed or transferred; (ii) if
Borrower is not a natural person and a beneficial interest in Borrower is sold,
conveyed or transferred; (iii) all or any part of the Property is refinanced or
further encumbered, except as otherwise allowed by law; (iv) Borrower does not
occupy the Property as his, her, or their, primary residence; (v) the leasing or
renting of all or any part of the Property; (vi) any material breach of this
Declaration, the HOME Note or Deed of Trust; or (vii) the filing of bankruptcy by
the Borrower. Notwithstanding the foregoing, a refinancing of the Property shall
not be considered a default, provided the Lender provides written consent to
Borrower prior to the refinancing, which consent may be granted or withheld in
the sole and absolute discretion of the Lender.
(c) No Assumption of Note. The HOME Note may not be assumed by any person,
except as otherwise allowed by law.
3. Acceleration (Default).
(a) Acceleration, Remedies. Upon Borrower's default of this Declaration, the HOME
Note, the Deed of Trust, or any other document secured by this Declaration, the Deed of Trust
and/or the Property, Lender shall give notice to Borrower prior to acceleration, such notice shall
include:
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HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS
(1) a description of the breach;
(2) the action required to cure such breach (if any);
(3) a date, not less than ten (10) days from the date the notice is mailed to
Borrower, by which such breach must be cured; and
(4) a statement that failure to cure such breach on or before the date specified
in the notice may result in acceleration of the sums secured by the Deed of Trust and sale of the
Property.
The notice shall further inform Borrower of the right to reinstate after acceleration and
the right to bring a court action to assert the nonexistence of a default or any other defense of
Borrower to acceleration and sale. If the breach is not cured on or before the date specified in
the notice, Lender, at Lender's option, may declare all of the sums secured by the Deed of Trust
to be immediately due and payable without further demand and may invoke the power of sale
and any other remedies permitted by applicable law, including, but not limited to, as provided in
and pursuant to the procedure set forth in the Deed of Trust. Lender shall be entitled to collect
all reasonable costs and expenses incurred in pursuing the remedies provided in this Section 3,
including, but not limited to, reasonable attorneys' fees.
(b) Borrower's Right to Reinstate.
(1) Curable Breach. Notwithstanding Lender's acceleration of the sums
secured by the Deed of Trust due to Borrower's breach, Borrower shall have the right to have
any proceedings begun by Lender to enforce the Deed of Trust discontinued at any time prior to
five (5) days before the sale of the Property pursuant to the power of sale contained in the Deed
of Trust or at any time prior to entry of a judgment enforcing the Deed of Trust if:
(A) Borrower pays Lender all sums which would be then due under the
HOME Note and the Deed of Trust had no acceleration occurred;
(B) Borrower cures all breaches of any other covenants or agreements
of Borrower contained in the Deed of Trust;
(C) Borrower pays all reasonable expenses incurred by Lender and the
trustee in enforcing the covenants and agreements of Borrower contained in the Deed of Trust,
including, but not limited to, reasonable attorneys' fees; and
(D) Borrower takes such action as Lender may reasonably require to
assure that the lien of the Deed of Trust, Lender's interest in the Property and Borrower's
obligation to pay the sums secured by the Deed of Trust shall continue unimpaired.
Upon such payment and cure by Borrower as set forth in this Section 3(b) (1), the Deed
of Trust and the obligations secured hereby shall remain in full force and effect as if no
acceleration had occurred.
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HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS
(2) Non -Curable Breach.
(A) Failure to Occupy/Renting Out the Property is a Violation of Law.
Borrower hereby acknowledges that the HUD HOME Loan evidenced by the HOME Note and
secured by the Deed of Trust and this Declaration was funded by Lender using U.S. Department
of Housing and Urban Development ("HUD") Home Investments Partnership Act ("HOME")
funds. Section 215 of the HOME Investment Partnerships Act (42 U.S.C. §12745) and the
HOME program regulations (24 C.F.R. §92.254) require Borrower to occupy the Property as
Borrower's principal residence. Leasing or renting out the Property in whole or in part and/or
Borrower's failure to occupy the Property as Borrower's principal residence is a violation of
State of California and Federal law (in addition to being a violation of this Declaration). Lender
is obligated by Federal law to enforce the provisions of the HOME program, Lender's failure to
do so would jeopardize Lender's ability to obtain additional HOME funds from HUD and help
other low-income families to obtain affordable housing.
(B) Failure to Occupy/Renting Out the Property Materially Impairs
Lender's Security. Borrower hereby acknowledges and agrees that renting out the Property (in
whole or in part) and/or Borrower's failure to occupy the Property as Borrower's principal
residence, materially impairs Lender's security for the HUD HOME Loan and Lender's ability to
obtain additional HOME funds from HUD and help other low-income families to obtain
affordable housing. Borrower further acknowledges that if the Property is rented out (in whole
or in part) and/or Borrower fails to occupy the Property as Borrower's principal residence, then
during any such period the Property will not qualify as "affordable housing" and Lender may be
in breach of its obligations to HUD and therefore the Lender's security for the HUD HOME
Loan will be materially impaired.
(C) Failure to Occupy/Renting Out the Property is a Non -Curable
Breach. Borrower hereby acknowledges and agrees that renting out the Property (in whole or in
part) and/or Borrower's failure to occupy the Property as Borrower's principal residence, will be
a non -curable breach and Lender shall have the right to accelerate the HUD HOME Loan and
foreclose on the Property as provided herein. Notwithstanding anything to the contrary set
forth in this Declaration, Borrower agrees that in the event Borrower rents out the
Property (in whole or in part) and/or fails to occupy the Property as Borrower's principal
residence, Borrower shall not have the right to cure the breach and reinstate the HUD
HOME Loan, the Deed of Trust or the obligations secured thereby.
(D) Borrower's Waiver. Borrower hereby knowingly waives and
relinquishes any and all legal and/or contractual rights Borrower may have to cure or otherwise
reinstate the Deed of Trust and the obligations secured thereby, in the event that Property is
rented out (in whole or in part) and/or Borrower fails to occupy the Property as Borrower's
principal residence.
(E) Representation of Comprehension. Borrower acknowledges and
agrees that Lender has advised Borrower (and each of them if there is more than one Borrower)
to retain an attorney to represent Borrower with respect to this Declaration. By executing this
Declaration, Borrower (and each of them if there is more than one Borrower) represents that: (i)
Borrower fully understands and accepts the terms of this Declaration, the HOME Note and Deed
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HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS
of Trust; (ii) Borrower has relied upon the legal advice of Borrower's attorneys or that Borrower
has freely and independently chosen not to seek the advice of an attorney; (iii) that neither the
Lender nor its attorneys represents Borrower; (iv) that Borrower has had a full and ample
opportunity to consult with any other professionals of Borrower's choice in connection with the
rights and liabilities created by this Declaration, the HOME Note and Deed of Trust; (v) that
Borrower does not have any questions with regard to the legal import of any term, word, phrase,
or portion of this Declaration, the HOME Note and Deed of Trust, or any of the foregoing
documents in their entireties; and (vi) Borrower accepts the terms of this Declaration, the HOME
Note and Deed of Trust as written.
4. Term. This Declaration shall expire upon the earlier of the foreclosure of any deed of
trust or mortgage on the Property made in favor of or held by an institutional lender or investor
that is senior in recording priority to this Declaration or payment in full of the HOME Note.
5. Covenant Against Discrimination. Borrower covenants on behalf of itself and its
successors and assigns, and each successor in interest to the Property, not to discriminate against
any prospective purchaser of the Property on the basis of race, religion, sex or national origin.
6. Enforcement. Borrower expressly agrees and declares that Lender or any successor
public agency is a proper party and shall have standing to initiate and pursue any and all actions
or proceedings, at law or in equity to enforce the provisions hereof andlor to recover damages for
any default hereunder and/or to enforce the terms of this Declaration. Further, Lender or any
successor public agency shall be the proper party to waive, relinquish, release or modify the
rights, covenants, obligations or restrictions contained in or arising under this Declaration.
7. Attorneys' Fees. Upon the breach of the terms of this Declaration, the HOME Note or
Deed of Trust, Borrower agrees to pay Lender any and all attorneys' fees, court costs, trustee
fees, and any and all other fees and costs incurred by Lender as a result of said breach andlor
default.
8. Severability. In the event that any provision or covenant of this Declaration is deemed to
be invalid or unenforceable by a court of competent jurisdiction, that provision shall be severed
from the rest of this Declaration and the remaining provisions shall continue in full force and
effect.
9. Covenants Run With The Land. The covenants contained herein shall constitute
"covenants running with the land" pursuant to Civil Code Sections 1460, 1462, 1463, 1464,
1465, 1467 and 1468, to the extent applicable, and shall bind the Property and every person
having an interest therein during the term of this Declaration, including Borrower and its
successors, heirs and assigns. Borrower agrees for itself and its successors that, in the event that,
for any reason whatsoever, a court of competent jurisdiction determines that the foregoing
covenants do not run with the land, such covenants shall be enforced as equitable servitudes
against the Property.
10. Recordation. This Declaration shall be recorded in the Office of County Recorder of San
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HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS
Diego, California.
11. Remedies Cumulative. Lender shall have the right, in the event of any breach of any
such agreement or covenant, to exercise all the rights and remedies, and to maintain any actions
at law or suit in equity or other proper proceedings to redress the breach of agreement or
covenant.
12. Headings. The headings used in this Declaration are for convenience only and are not to
be used to interpret the meaning of any of the provisions of this Declaration.
13. Liberal Construction. The provisions of this Declaration shall be liberally construed to
effectuate its purpose. Failure to enforce any provision of this Declaration shall not constitute a
waiver of the right to enforce the provision later.
14. Number; Gender. The singular shall include the plural and the plural the singular, unless
the context requires the contrary; and the masculine, feminine and neuter shall include the
masculine, feminine or neuter, as the context requires.
15. Exhibits. Any exhibits referenced herein and attached to this Declaration are hereby
incorporated by reference.
16. Notices to Mortgagees of Record. On any loss to the Property, if such loss exceeds One
Thousand Dollars ($1,000.00), notice in writing of such loss shall be given to each mortgagee of
record.
17. Fire and Extended Coverage Insurance. Borrower shall obtain and maintain a policy of
fire insurance for the full insurable value of all the improvements within the Property. The form,
content and term of the policy, its endorsements and the issuing company must be satisfactory to
all mortgagees. If more than one mortgagee has a loan of record against the Property, or any part
thereof, the policy and endorsement shall meet the maximum standards of the various
mortgagees represented in the Property. The policy shall contain an agreed amount endorsement
or its equivalent, an increased cost of construction endorsement, vandalism and malicious
mischief coverage, a special form endorsement and a determinable cash adjustment clause or a
similar clause to permit cash settlements covering the full value of the improvements in case of
partial destruction and a decision not to rebuild. The policy shall name as insureds the owners,
Borrower and the mortgagees, as long as their respective interests may appear. "Mortgagees", as
used herein, includes beneficiaries under a deed of trust.
18. Binding Effect. This Declaration shall inure to the benefit of and be binding upon the
successors and assigns of Borrower and the heirs, personal representatives, grantees, tenants,
successors -in -interest or assigns of the owners.
19. Certifications by Borrower. Not less frequently than once a year Borrower shall certify
to Lender that Borrower:
(a) Complies with all the terms and conditions of this Declaration and the Deed of
Trust; and
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HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS
(b) Has obtained and does maintain fire and casualty insurance on the Property
satisfactory to Lender, including a certificate of insurance, of which Lender shall
be a holder, from the insurance company providing coverage satisfactory to
Lender which may not be cancelled by the insurance company without thirty (30)
days advance notice of cancellation.
20. Declaration Subordinate. This Declaration is subordinate to any deed of trust or
mortgage on the Property, which deed of trust is senior in recording priority to this Declaration.
Any party, and its successors and assigns, receiving title to the Property through a trustee's sale,
judicial foreclosure sale, or deed in lieu of foreclosure of such senior deed of trust or mortgage,
and any conveyance or transfer thereafter, shall receive title free and clear of the provisions of
this Declaration.
21. Refinancing. Neither the Property, nor any portion thereof, shall be refinanced without
the written consent the Lender, except as otherwise allowed by law. The Lender may withhold
any such consent in its sole and absolute discretion, nothing contained herein shall obligate
Lender to agree to Borrower's request to refinance the Property or any portion thereof.
22. Waiver by Lender. Any provision hereof, including without limitation, the requirement
that Borrower occupy the Property, may be waived only with the advance written approval of the
Lender and HUD for good cause shown.
23. HOME Period. The HUD HOME Loan was funded by Lender using U.S. Department of
Housing and Urban Development ("HUD") Home Investments Partnership Act ("HOME")
funds. The HOME program regulations (24 C.F.R. Part 92), apply for a period of 30 years, from
the date of recordation of the Deed of Trust. Beginning 30 years after the date of recordation of
the Deed of Trust, and for the remainder of the term of this Declaration, the Property will
continue to be subject to the restrictions set forth in this Declaration, but shall no longer be
subject to the HOME program regulations.
24. Declaration Independent of HOME Note. The obligations of Borrower under this
Declaration shall be independent of, and in addition to, Borrower's obligations under the HOME
Note, and repayment of the HOME Note shall not terminate or otherwise affect this Declaration.
Date: 07l30(1 6
Date: 61 (3o/sU.a
Christopher K. Hunter
Maritza Yaneth Hunter
CITY OF NATIONAL CITY PAGE 8 OFIO
HOME -DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS
CAL!FORNMA ALL-PURPOSE ACKNOWLEDGMENT
A notary public or other officer completing
this certificate verifies only the identity of the
individual who signed the document to which this
certificate is attached, and not the truthfulness,
accuracy, or validity of that document.
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
On
Not ublic, pe sonally a•peared , I s 1. 1 _ ,
who proved to me bin the basis of satisfactory evidence to be1he person(s) whose narfie(s) is/are subscribed
to the within instrument and acknowledged to me that hslehe/they executed the same in hisAaaer/their
authorized capacity(ies), and that by-1 si er/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.
t / before me C. Greene,
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph
is true and correct.
WITNESS my hand and official seal.
z
z
C. GREENE
Commission # 2067408
Notary Public - California z
San Diego County
M Comm. Expires Jun 4, 2018
Affix Notary Seal Here
********************OPTIONAL********************
Though the data below is not required by law, it may prove valuable to persons relying on the document and could
prevent fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER
INDIVIDUAL
❑ CORPORATE OFFICER
O Partner(s)
❑ Attorney -In -Fact
❑ Trustee(s)
O Guardian/Conservator
❑ Other:
Title(s)
❑ Limited
O General
Signer is representing:
Name of person(s) or entity(ies)
DESCRIPTION OF ATTACHED DOCUMENT
-0,Lc,i_circ.„± fry, aVe rig id
Title or type of document
Number of Pages
Date of Document
Signer(s) other then named abo)e
EXHIBIT "A"
Legal Description of the Property
Property Address: 516 East 24th Street, National City, California
All that certain real property situated in the County of San Diego, State of
California, described as follows:
All that portion of the Westerly Half of Acre Lot 16 in Quarter Section
152 of Rancho De La Nacion, in the City of National City, County of San
Diego, State of California, according to Map Thereof No. 166 made by
Morill and on file in the Office of the County Recorder of said San Diego
County, described as follows:
Beginning at a point on the Northerly line of said Lot 16 distant thereon
North 71° East 425 feet from the Northwesterly corner of said Lot; thence
North 71° East along said Northerly line, 40 feet to a point distant thereon
South 71° West 1 foot from its intersection with the Northerly
prolongation of the Westerly line of a parcel of land conveyed to Daniel
Buckley and wife by Deed dated September 18, 1942 and recorded in
Book 1429, Page 72 of Official Records; thence South 19° East along a
line parallel with and distant 1 foot Westerly from said Northerly
prolongation. Said Westerly line and the Southerly prolongation thereof, a
total distant of 190 feet; thence South 71° West, 40 feet; 9 thence North
19° West, 190 feet to the point of beginning.
EXCEPTING THEREFROM the Northerly 40 feet thereof conveyed to
the City of National City for street purposes by Deed recorded in Book
840, Page 180 of Deeds.
Tax Assessor's Number: 562-060-25-00
CITY OF NATIONAL CITY EXHIBIT "A"
DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS
ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the
individual who signed the document, to which this certificate is attached, and not the
truthfulness, accuracy, or validity of that document.
State of California
County of San Diego
On
P �1,Q , notary
C Iiri'siaphC . -}� erj mad tZsL
satisfactory evidence) to be the person(s) whose
instrument and acknowledged to me that he/
authorized capacity(ies), and that by his/her/th -
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the entity on behalf of which the person(s)
I certify under PENALTY OF PE
foregoing paragraph is true and c • ect.
WITNESS my hand and o cial seal.
Signature
Signature of Notary Ri
f
20 / before me,
public personally appeared
o proved to me on the basis of
ame(s) is/are subscribed to the within
e/they executed the same in his/her/their
signature(s) on the instrument the person(s), or
ed, executed the instrument.
RY under the laws of the State of California that the
(00
eike_01 (Seal)
CITY OF NATIONAL CITY EXHIBIT "B"
DECLARATION OF COVENANTS, CONDITIONS & RESTRICTIONS