2007/01/03 Council Agenda Packet

9 C. Late Charge. I agree to pay a late charge equal to Twenty-Five and 00/100 Dollars ($25.00) for any payment on this Note, or portion thereof, that is more than ten (10) days past due, as compensation to Holder for the burden of late payment collection and disruption of expected cash flow, and not as a penalty. I agree that such late charge is a reasonable estimate of a fair average compensation for the consequences of my failure to make timely payments. Any late charge shall be in addition to all other remedies and without prejudice to the right of the Holder to declare a default under this Note. 4. ACCELERATION OF PAYMENTS A. Notwithstanding the terms of Paragraph 3 above, I agree that if any of the events described in Paragraph 4A(1), 4A(2), 4A(3), or 4A(4) occur (an "Occurrence"), then at any time after the Occurrence the Holder may declare all amounts owing on this Note immediately due in full, unless the Holder is then prohibited by law from doing so. If the Holder declares the Note due, I will be required to pay the Holder all outstanding principal and accrued interest under Paragraph 2 above as of the date of the Occurrence (the "Accelerated Amount"). In addition, after the date of the Occurrence, I agree to pay interest at the rate of twelve percent (12%) per annum, or at the maximum rate allowed by law, if lower, on the Accelerated Amount until the Accelerated Amount is paid in full. Each of the following will be an "Occurrence": (1) Any sale, gift, lease, mortgage or other transfer of title to the real property legally described in the Deed of Trust securing this Note (the "Property") or any interest in the Property, except as specifically allowed by the Deed of Trust or by the written consent of the Holder (transfer includes, but is not necessarily limited to, renting, leasing, selling, refinancing, and passing ownership by any voluntary or involuntary means, such as by gift, will or by operation of law), or any encumbrance of the Property resulting from a lien, assessment or judgment; (2) If I no longer live in the Property as my primary residence; (3) If I make any statement, or provide any information or certification, to the Holder that is untrue or incorrect in any material respect (or if any previous statement I have made to ** related to this loan proves to be untrue or incorrect in any material respect); or (4) If I fail to comply with any other term or condition of this Note or any other loan document. The event of an Occurrence shall be deemed a default. B. If Holder permits any Occurrence, without requiring payment of this Note, that shall not constitute a waiver of Holder's right to declare this Note due and payable in the event of any future Occurrence, including but not limited to any transfer by any person who assumes this Note, or if a person who assumes this • Note no longer lives in the Property. ADDI Agreement between C - 2 City of Everett and Snohomish County