2007/05/16 Council Agenda Packet

L) 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 HomeSight 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. 5. SHARED APPRECIATION A. I agree that in addition to my obligation to repay principal and interest pursuant to the terms of this Note,upon an Occurrence or if I prepay this Note in full or in part, I will pay Shared Appreciation,if any, according to the terms of this Paragraph 5. If Shared Appreciation becomes payable but the entire principal balance does not then become due and I do not then prepay this Note in full, I agree to pay additional Shared Appreciation upon any subsequent partial or full prepayments or later Occurrences. The amount of Shared Appreciation due on any prepayment or Occurrence shall not be affected by any previous payments of Shared Appreciation, except in accordance with Paragraph 5E below. B. Shared Appreciation is an amount equal to "Net Proceeds"multiplied by the applicable "Shared Appreciation Percent" under subparagraph 5D below, but not more than the limit in subparagraph 5E below. Net Proceeds shall be calculated as follows: (i) Either (a) the gross sales price of the Property if the Occurrence causing Shared Appreciation to become due is in a good faith arms-length sale of the Property for cash, independent of any other arrangement with the buyer; or (b) in any other case, the value of the Property at the time of the Occurrence as determined by an appraiser chosen by Holder; less (ii) the sum of(a) $**.00 [Amount from line 120 on HUD 1 Closing Statement], plus (b) the documented costs, approved by Holder in Holder's sole discretion, of depreciable improvements made to the Property and paid for by Borrower after Borrower's acquisition of the Property, plus (c) actual and reasonable costs of sale paid by the seller if the Property is sold (or the appraiser's estimates of such costs if the event triggering Shared Appreciation is not a sale), including real estate commissions, real property excise tax, J C- 2