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80A - HOUSING AND SUBORDINATION LOANS
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09/17/2019
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80A - HOUSING AND SUBORDINATION LOANS
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9/12/2019 6:11:12 PM
Creation date
9/12/2019 5:58:33 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Community Development
Item #
80A
Date
9/17/2019
Destruction Year
2024
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EXHIBIT 4 <br />b. If any payment is not received by the Agency within ten (10) days following the <br />due date thereof, then in addition to the remedies conferred upon the Agency pursuant to this <br />Note and the other Loan Documents, (i) a late charge of four percent (4%) of the amount due and <br />unpaid will be added to the delinquent amount to compensate the Agency for the expense of <br />handling the delinquency and (ii) the amount due and unpaid, excluding the late charge, shall <br />bear interest at ten percent (10%) per annum, computed from the date on which the amount was <br />due and payable until paid. Without prejudice to the rights of the Agency hereunder or under any <br />of the other Loan Documents, Borrower shall indemnify the Agency against, and shall pay the <br />Agency on demand, any expense or loss which it may sustain or incur as a result of the failure by <br />Borrower to pay when due any installment of interest and/or principal, fees, or other amounts <br />payable to the Agency under this Note or any other Loan Document, to the extent that any such <br />expense or loss is not recovered pursuant to such foregoing provisions. A certificate of the <br />Agency setting forth the basis for the determination of the amounts necessary to indemnify the <br />Agency in respect of such expenses or direct loss, submitted to Borrower by the Agency, shall be <br />conclusive and binding for all purposes except as immediately corrected by Borrower notice to <br />Agency. <br />14. Securi <br />This Note is secured by the Agency Deed of Trust. <br />15. Acceleration by Reason of Transfer or Financing. <br />a. In order to induce Agency to make the loan evidenced hereby, Borrower agrees <br />that in the event of any transfer of the Property without the prior written consent of <br />Agency (other than a transfer resulting from a foreclosure, or conveyance by deed in <br />lieu of foreclosure, by the holder of the Senior Loan Deed of Trust), Agency shall <br />have the absolute right at its option, upon at least 30 days' prior written notice to <br />Borrower, to declare all sums secured hereby immediately due and payable. Such <br />consent will not be unreasonably withheld. Consent to one such transaction shall not <br />be deemed to be a waiver of the right to require consent to future or successive <br />transactions. Agency may grant or deny such consent in its reasonable discretion and, <br />if consent should be given, any such transfer shall be subject to this Section 12, and <br />any such transferee shall assume all obligations hereunder and agree to be bound by <br />all provisions contained herein. Such assumption shall release Borrower from all <br />liability thereunder from and after the date of such assumption. <br />b. As used herein, "transfer" includes the Sale, agreement to sell, transfer or <br />conveyance of the Property, or any portion thereof or interest therein, whether voluntary, <br />involuntary, by operation of law or otherwise, the execution of any installment land sale contract <br />or similar instrument affecting all or a portion of the Property, or the lease of all or substantially <br />all of the Property. "Transfer" shall not include the leasing of individual residential units on the <br />Property, so long as Borrower complies with the provisions of the Loan Agreement and the <br />Affordable Housing Restrictions relating to such leasing activity, nor shall it include a <br />E <br />80A-227 <br />
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