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HomeMy WebLinkAbout2011-298 Promissory Note - HAJC-Snowberry PROMISSORY NOTE SECURED BY DEED OF TRUST $ 466,969.00 Ashland, Oregon, October 18, 2010 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$ Four hundred and sixty-six thousand, nine hundred and sixty-nine dollars, ($ 466,969.00). ($373,527 in SDC deferred and $93,442.00 in Community Development and Engineering fees waived), 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 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 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. PAGE 1 of 2-Promissory Note 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. ti EXECUTED this 28 day of 0CA 20L NOTICE TO BUYER: THIS DOCUMENT CONTAINS PROVISIONS RESTRICTING RESALES AND ASSUMPTIONS. Sig ature Signature / trl d•./ � �o TT �ts� R-� PrinteSYl)ame Printed Name PAGE 2 of 2-Promissory Note