2007/12/05 Council Agenda Packet

and local laws, ordinances, and regulations in activities funded in whole or in part with funds provided through this HOME Agreement and in carrying out the Project with all other terms of this HOME Agreement. B. The Loan; Project Budget The City agrees to loan the Agency $100,000.00 (the "Loan") for the full undertaking and performance of the Project. The Loan shall accrue interest at the rate of 3% compounded annually. No payments of principal or interest shall be due until November 21, 2032 (the "Maturity Date") at which time the full amount of principal and accrued interest shall be due and payable. C. Promissory Note; Deed of Trust; Mortgage Loan Rider The Loan shall be evidenced by a non-recourse Promissory Note in the form of Attachment B attached hereto. The Agency shall cause the Promissory Note to be secured by a Deed of Trust executed by the Owner in the form of Attachment C attached hereto. The Deed of Trust shall secure repayment of all funds provided under this HOME Agreement. The Mortgage Loan Rider attached hereto as Attachment D, and incorporated hereby by this reference, shall be attached to and be a part of the Promissory Note and the Deed of Trust. D. Assignment of Obligations Except as set forth herein, the Agency shall not assign any of its obligations under this HOME Agreement, but shall remain obligated at all times to perform according to the terms of this HOME Agreement. E. Covenant Agreement; Priority Agreement; Subordination Agreement The Agency shall cause to be executed a Use Restriction Covenant Agreement (hereinafter "the Covenant Agreement") in the form of Attachment E attached hereto which Covenant Agreement shall be senior to any monetary liens or encumbrances recorded against the Project unless otherwise agreed in writing by the City. 3s - 2 -