2007/05/16 Council Agenda Packet

escrow fees, recording fees, reasonable attorneys' fees, title insurance, and title insurance premiums. C. I understand that in the event of an occurrence described in paragraph 4A(1), 4A(2), 4A(3) or 4A(4) herein within eight (8) years from the date of this Note, I will be responsible for payment, in addition to principal and interest of 100%of the Shared Appreciation Percent. D. I understand that in the event of an occurrence described in paragraph 4A(1), 4A(2), 4A(3) or 4A(4)herein at any time after the eighth (8th) anniversary of this Note, the Shared Appreciation Percent shall be reduced two(2%)percent each year thereafter as follows: Year 8 Shared Appreciation Percent: **% Year 9 Shared Appreciation Percent: **% Year 10 Shared Appreciation Percent: **% Year 11 Shared Appreciation Percent: **% Year 12 Shared Appreciation Percent **% Year 13 Shared Appreciation Percent: **% Year 14 Shared Appreciation Percent: **% Year 15 Shared Appreciation Percent: **% MAY NEED TO CONTINUE UNTIL GETS TO ZERO For purposes of this Paragraph, each year of the Note shall end on the anniversary date of the Note. For example,the Shared Appreciation Percent will be reduced to the Year 9 level on the date that is 8 years and one day from the date of this Note. E. Shared Appreciation under this Paragraph 5 will be limited so that, when added to all interest payable under Paragraph 2, it does not exceed, over the term of this Note up to and including each date when Shared Appreciation becomes payable, interest computed at the rate of Six Percent(6%)per annum on the outstanding balance from time to time of the original principal amount of this Note. In any event, Shared Appreciation shall always be limited so that, when added to all other amounts that are included to determine the maximum amount of interest Holder could charge under applicable law, it does not exceed any applicable legal limit. F. Holder's failure to collect Shared Appreciation upon an Occurrence or partial prepayment shall not constitute a waiver of Holder's right to collect that Shared Appreciation and any additional Shared Appreciation that becomes payable upon any later partial or full prepayment or any future Occurrence. 6. PAYMENT LOCATION Unless otherwise directed in writing by Holder,all payments shall be made at the following address: HomeSight 5117 Rainier Avenue South Seattle, WA 98118 7. THIS NOTE IS SECURED BY A DEED OF TRUST WITH DEFAULT PROVISIONS In addition to the protections given to the Holder under this Note, I have signed a Deed of Trust dated the same date as this Note,which is being recorded against the Property. The Deed of Trust protects the Holder from possible losses which might result if I do not keep the promises which I make on this Note. The Deed of Trust describes how and under what conditions a default under the Deed of Trust may occur. If I default under the Deed of Trust I may be required to make immediate payment in full of all amounts that I owe under this Note. 5 , C- 3