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HomeMy WebLinkAbout1994-141 Promissory Note - Svaren $ 3 ,S5~. I~ , PROMISSORY NOTE SECURED BY DEED OF TRUST Ashland, Oregon, \ jUtl~ ~;Z, 1994 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 ($ ), plus accrued interest, upon the terms and conditions set forthbelow.- 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 AGREEMENT (SDCs ONLY)" and is subject to all the terms and conditions of such agreement (further referred to in this note as ''the Agreement"). The promisor 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 qate at this note until paid. 3. REPAYMENT. 3.1. During the first 20 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 and occupy the home as my primary residence, 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 qualified transfer of the home to an eligible buyer who shall assume this note without violating the terms of this note. 3.2. During the first 20 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 home to any person or entity other than an eligible buyer as defined in the Agreement or to an otherwise eligible buyer who does not assume this note a.nd the trust deed securing it and agree to comply with all of its terms, or whenever I cease to occupy the home as my primary residence, 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 20 years following the date of execution of this note, if I am at that time the owner and occupier of the home 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. 4. BINDING EFFECT: JOINT AND SEVERAL OBLIGATIONS. This note and its terms shall be binding upon my heirs, ex~cutors, administrators, personal representatives, successors, and assigns. Throughout this note, the terms "I," "me," and "my" refer PAGE 1 of 2-Promissory Note (p:planning\.afforcv.no!)(Rcv'd 10193) 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 d:J- ..!day of ~. ']..~ , 1994. NOTICE TO BUYER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING RESALES AND ASSUMPTIONS. ~~A~ Qw~ S nature // Signature WENDY A. SVAREN Printed Name .....---.--,,"" Pnnted Name PAGE 2 of 2-promissory Note (p:planning\afforcv.no!)(Rcv.d 10193) REMOVE THIS PAGE AND ATTACH THE LEGAL DESCRIPTION OF THE PROPERTY AS EXHIBIT A. (SEE PARAGRAPH A ON PAGE 1.)