Laserfiche WebLink
EXHIBIT 2 <br />-five (45) years from close of escrow. <br />City Loan. The City agrees to lend to Borrower, and Borrower agrees to <br />1.borrow from the City, the City Promissory Note Amount, at zero (0%) <br />interest as provided in Section 2 of this Agreement, subject to the conditions and <br />restrictions set forth in this Agreement, in the Promissory Note and in the City Deed of <br />Trust. When all conditions to the close of escrow other than payment of the Purchase <br />Price have been satisfied, the City shall deposit the Loan Amount with the Escrow Agent. <br />The City shall direct the Escrow Agent to apply the proceeds ofthe City Loan on behalf <br />of Borrower to the Purchase Price of the Property for the down payment. Borrower shall <br />execute and deliver to the Escrow Agent the City Promissory Note, the City Deed of <br />Trust and the Affordability Covenants. <br />2.Authorized Use of City Loan. The City Loan proceeds may only be <br />used for the down payment associatedwith the purchase of the Property. <br />3.Conditions Precedent. Borrower must complete eight (8) hours of <br />homeownership training offered by a counseling center approved by HUD,and open an <br />impound account for property taxes and insurance costs. Borrower must have a positive <br />credit history and must obtain a fixed rate loan (co-signors and variable rate loans are not <br />allowed). Borrower will be required to provide payment of up to 3% of the purchase <br />price toward the down payment. All properties built before 1978 must have a Visual Lead <br />Based Paint Inspection and must pass the inspection before loan approval. Inspections <br />will be made to ensure that there are not code related issues, including common areas in <br />condominium complexes. <br />4.Interest Rate and Repayment /Acceleration Terms. <br />(a) Interest Rate.The City is making the City Loan to Borrower at <br />zero percent (0%) interest. <br />(b) Service Charge. Borrowershall be required to pay any and all service <br />charges associated with the City Loan. <br />(c ) Repayment/Acceleration.The unpaid outstanding principal <br />balance of the City Loan and any penalties thereon shall be all due and payable when any <br />of the following events take place: <br />i.at the end of the 45 year Term of Affordability; <br />ii.when the Property is sold; <br />iii.when the Property is not properly being used as the <br />principal residence; <br />iv.The City discovers that Borrower knowingly or willfully made a <br />4 <br /> <br />