HomeMy WebLinkAbout2013-356 Promissory Note - ACCESS - Hyde Park
PROMISSORY NOTE
SECURED BY DEED OF TRUST
$ 35,503.31 Ashland, Oregon, July 15, 2013
For value received, I promise to pay to the order of the City of Ashland, Oregon, ("City"),
at City Hall or such other place as the City may designate, the principal sum of $ Thirty-
five thousand, five hundred and three dollars and thirty-one cents, 35,503.31), plus
accrued interest, upon the terms and conditions set forth below.
1. AFFORDABLE HOUSING AGREEMENT. This obligation is secured by a Trust Deed
and is subject to all the terms and conditions of such Trust Deed. This obligation is
given pursuant to a "CITY OF ASHLAND AFFORDABLE HOUSING RESALE
RESTRICTION COVENANT" and is subject to all the terms and conditions of such
agreement (further referred to in this note as "the Agreement'). The promissor shall
have the right to prepay all or any portion of the unpaid principal of this note without
penalty. However, any payments shall be applied first to accumulated interest and then
to principal.
2. INTEREST. The unpaid principal balance of this note shall bear simple interest at the
rate of six percent (6.0%) per year from the date of this note until paid.
3. REPAYMENT.
3.1 . During the first 30 years after this note is executed, no payments of either
principal or interest shall be due or payable so long as I continue to own the property
and make the rental unit available to eligible low-income households, and so long as I
am not in violation of any of the terms of this note or the trust deed securing it. As set
forth in the Agreement, I may also make a transfer of the property containing the rental
unit to a buyer who shall assume this note without violating the terms of this note.
3.2 . During the first 30 years after this note is executed, the total amount of
the principal and accrued interest shall become immediately due and payable in full
upon my transfer of the property to any person or entity, other than a buyer as defined
in the Agreement who assumes this note and the trust deed securing it, and agree to
comply with all of its terms, or whenever I am in default for failure to comply with any of
the terms of this note or the trust deed. At the end of 30 years following the date of
execution of this note, if I am at that time the owner of the property containing the rental
unit and am not in default under any terms of this note or the trust deed, this note and
my obligation to pay the principal and accrued interest shall be cancelled and forgiven
by the City.
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4. BINDING EFFECT; JOINT AND SEVERAL OBLIGATIONS. This note and its terms
shall be binding upon my heirs, executors, administrators, personal representatives,
successors, and assigns. Throughout this note, the terms " I," "me," and "my" refer
individually and collectively to all persons who sign this note, and all persons signing
this note shall be jointly and severally liable for its obligations.
5. ATTORNEY FEES AND COSTS. If either party is required to initiate legal
proceedings to enforce its rights under this Agreement, the prevailing party in such
action shall be entitled to an award of reasonable attorneys' fees and costs in addition to
any other recovery under this Agreement.
11. SEVERABILITY; GOVERNING LAW. If any provision of this note is or becomes
inconsistent with any applicable present or future law, rule or regulation, such provision
will be deemed rescinded or modified in order to comply with the relevant law rule or
regulation, and all other provisions of this note shall continue in full force and effect.
This note shall be governed by and interpreted under the laws of the State of Oregon.
14. NO WAIVER. Failure by the City to require strict performance of any term of this
note, including the extension of any payment or acceptance of any part of a payment,
shall not affect the City's rights or be considered a waiver by the City of the strict
performance of all conditions of this note. No waiver by the City of any default shall be
considered a waiver of any subsequent default or a waiver of this paragraph.
EXECUTED this 1941 day of pct t~ 12013
NOTICE TO BUYER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING
RESALES AND ASSUMPTIONS.
For: AC ESS
Si ature Signature
By: Jackie Schad. Executive Director 0A iE KAr ~lC e r~ At~n it s 24CU R
Printed Name Printed Name
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