Housing Authority of the City of Everett 6/21/2017

Borrower will make all payments at the Office of the City Treasurer, 3002 Wetmore, Everett, Washington, 98201, or at any other place that Lender may designate. The Lender may transfer this Note. The term "Lender" includes Lender's collection agents and anyone who takes this Note by transfer and is entitled to receive payments. 3. BORROWER'S FAILURE TO PAY AS REQUIRED. a. Late Charges. 1. Installment Payments. If Lender does not receive the full amount of any monthly payment on this Note by the end of the fifteenth (15th) day of the month, then Borrower promises to pay a late charge to Lender. The amount of any late charge will be four percent (4%) of the amount of the monthly payment, but not less than $5. Only one such late charge will be paid for each late payment. 2. All Payments Other Than Installment Payment. If Borrower does not make full payment when due, Borrower will pay a late charge to Lender of four percent (4%) of the overdue amount, but not less than $5. If Borrower has not paid the whole loan on the final payment date, Borrower will pay Lender interest on the unpaid balance at two percent (2%) of principal per year above the interest rate specified above, or twelve percent (12%) per annum, whichever is higher, until Borrower does. b. Default. If Borrower fails to pay any installment payment on this Note when due and such failure continues on the date the next payment is due, then Borrower is in default. Borrower is also in default if Borrower fails to make full payment when due. If Borrower is in default, time being of the essence, Lender may without notice or demand declare that Borrower pay immediately the full amount of unpaid principal and interest, and any other charges due under this Note, and Borrower promises to pay all these amounts. The failure of Lender to require full and immediate payment of all principal and interest upon default does not constitute a waiver of Lender's right to demand payment at a later date, based upon the same or another default. Notwithstanding any other provision of this paragraph, the failure to pay any installment payment will not constitute a default if, at the time such failure occurs,the total amount of payments already made equals or exceeds the amount of the required payments. c. Payment of Lender's Costs and Expenses. If Lender takes legal action to collect this Note, Borrower promises to reimburse Lender upon demand for all of Lender's legally recoverable costs and expenses of collection, including but not limited to reasonable attorney's fees and court costs. d. Note Reduced to Judgment. If this Note is reduced to judgment, such judgment will bear the interest rate established by State law, or if there is no such rate, a yearly rate of ten percent (10%). 4. BORROWER'S PAYMENTS BEFORE THEY ARE DUE (PREPAYMENTS OF PRINCIPAL). A payment of all or part of the principal before it is due, which is so designated by Borrower, is called a "prepayment" in this Note. If Borrower fails to advise Lender that Borrower is making a prepayment, Borrower's payment will be treated as one or more monthly payments in advance, without adjustment of interest. No prepayment will be permitted unless all due and past due interest, principal and other charges have been paid. Prepayments of less than the full amount of principal due (called "partial prepayments") will be credited to principal by Lender as of the due date of the next monthly payment, whether or not received on that date. In addition, Lender may require that any partial prepayment equal the amount of principal included in the next one (or more) monthly payments due. When Borrower make a partial prepayment, there will be no changes in the amounts or due dates of the succeeding monthly payments (except for elimination of one or more payments at the end of the repayment period), unless Lender agrees to the changes in writing. 2 1/97