2007/05/16 Council Agenda Packet

r 5 ATTACHMENT C SUBORDINATE DEED OF TRUST NOTE (HomeSight/City of Everett, Deferred Loan Property) $**.00 **, 2007 ** Washington ** ** ** Property Address City, State Zip Code 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I (We), ** ("Borrower"), promise to pay** and 00/100 Dollars ($**.00) U.S. funds (this amount is the original `principal"), plus interest, to the order of HomeSight, a Washington nonprofit corporation, at the address stated in Paragraph 6 below or such other place as the Holder of this Deed of Trust Note("Note")may designate in writing from time to time. I understand that HomeSight may transfer or assign this Note. HomeSight or anyone who takes this Note by transfer and who is entitled to receive payments under this Note will be called the"Holder." 2. INTEREST Interest will accrue on the unpaid principal from the date of this Note at the rate of three percent(3%)per year calculated based on a 360 day year and twelve 30-day months. If interest must be determined for any partial month it shall be calculated on the basis of a 365-day year and the actual number of days elapsed. 3. PAYMENTS OF PRINCIPAL AND INTEREST. I will pay principal and interest as follows: (1) Absent a default or an Occurrence, no payments of principal or interest shall be required until the 30th anniversary of the date of this Note(the "Maturity Date"), at which time the full principal and accrued interest shall be due and payable. 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, plus Shared Appreciation under Paragraph 5 below as of the date of the Occurrence (The sum of these amounts is called 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 r legally described in the Deed of Trust securing this Note (the "Property") C- 1