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Reso 1997-001 to 005
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Reso 1997-001 to 005
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CM City Clerk-City Council
CM City Clerk-City Council - Document Type
Resolution
Document Date (6)
12/31/1997
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PERM
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91,14491 <br />unpaid sums then payable under this Promissory Note <br />to become immediately due and payable upon written <br />notice by the LENDER to the BORROWER without further <br />demand. <br />h. All subsidy and program operating costs payments <br />under this Note shall be applied: first, to any <br />principal due; second, to interest due; third, to <br />any late charges due under this note; and fourth, <br />to any prepayment charges due. All direct cash <br />payments received by Lender under paragraph 1 shall <br />be applied: first, to any late charges due under the <br />Note; second, to any interest due; third, to any <br />principal due; and fourth, to prepayment charges <br />due. <br />5. PREPAYMENT PENALTY: If BORROWER repays all of the <br />principal amount due under this Promissory Note prior to <br />its due date, a prepayment penalty. equal to the amount <br />set forth in the payment schedule attached hereto shall <br />be added to then outstanding principal balance due: If <br />Borrower prepays a portion of the principal amount due, <br />a prepayment penalty shall be due and shall equal the <br />difference between the amount of prepayment penalty due <br />corresponding to the actual month of loan term and <br />prepayment penalty due based on the then outstanding <br />principal due. For example, if in loan month 25, <br />Borrower pays principal down to $253,231 (loan month 31), <br />then Borrower shall pay $721 Dollars as prepayment <br />penalty. The amount due shall thus equal the sum of the <br />outstanding principal and the prepayment penalty will <br />be due and payable to the LENDER, upon such prepayment. <br />The amount of prepayment penalty due shall be determined <br />based on the time during the contract period at which the <br />prepayment is offered. For purposes of example, if <br />Borrower offered prepayment in following the first <br />month's subsidy payment the penalty would equal $2,000. <br />6. DEFAULT: Any failure to pay in full any payment <br />(including subsidy or direct payment) required under this <br />Promissory Note when due or failure to provide the eleven <br />units at affordable rental levels as set forth in the <br />Regulatory Agreement will constitute a default of this <br />Promissory Note. <br />7. LENDER'S REMEDIES FOR DEFAULT: <br />a. Upon the occurrence of a default, the LENDER, or <br />its designee, shall provide the BORROWER written <br />notice of said occurrence, and BORROWER shall have <br />thirty days to cure the default unless the LENDER <br />shall agree in writing to an extension of such time <br />prior to its expiration which consent shall not be <br />- 4 - <br />
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