SOMERSETT, DAVID - Laserfiche WebLink

lilt CITY Uf PROMISSORY NOTE (Deferred Payment Loan) Applicant Name(s) David and Diane Somersett Date: April 26, 2011 Property Address: 3231 Vineyard Ave.Space No.4, Pleasanton,CA 94566 Loan: Deferred FOR VALUE RECEIVED,the undersigned("Borrower")hereby promises to pay to the CITY OF PLEASANTON the principal sum of Twenty-seven thousand three hundred and seventy-one and 00/100 DOLLARS. This note will accrue 3%simple interest annualized for a maximum of thirty(30)years. This Note is due and payable: 1. Upon sale,conveyance,assignment, hypothecation,refinancing(except as described below)or any other transfer to any party (ies)of any interest of the borrower described below. 2. If the property shall cease to be the principal residence of the Borrower,except as may be necessitated for medical reasons or as agreed upon by the City as described below. 3. If the Borrower fails to maintain the property in accordance with the City of Pleasanton's "Community Preservation Ordinance." All payments hereunder will be made in lawful money of the United States of America at the office of the City of Pleasanton, Finance Department, 123 Main Street,Pleasanton, CA 94566-0802("Holder"),or any other places as Holder may from time to time designate in writing. Loan Subordination/Refinancing The Pleasanton Housing Rehabilitation Program provides financial assistance for the improvement of properties occupied by very low or low-income homeowners. The City loan must be paid in full if the existing first mortgage is refinanced. Exceptions to this policy may be considered under the following conditions: Refinancing of an existing first mortgage to obtain a lower interest rate will be possible only if the junior City loan is subordinated to no less than second position. The existing City Loan will be subordinated to a refinanced first mortgage for the amount of the outstanding senior loan balance at the time of request plus reasonable financing fees,and no cash out The subordinated City loan will remain in the same or more senior position than the original City loan. The City will only subordinate to the first mortgage. Exceptions to this policy will be considered by the City of Pleasanton Housing and Human Services Division Manager or their designee upon demonstration by the applicant, in writing,that there will be a direct benefit of either housing safety or housing affordability for low and moderate-income persons. Discontinuance of Residency The borrower must notify Holder 30 days in advance prior to discontinuing residency of the property as primary residence.The note shall not become due and payable in the case of a transfer of the property to a surviving spouse of a deceased borrower or transferred to a former spouse of the borrower due to divorce. Should the Borrower desire to sell the property during the term of this Note,the City may,in its sole discretion elect to enable a buyer to assume the remainder of the mortgage on the original terms provided the buyer qualifies under the City of Pleasanton Owner Rehabilitation Program Guidelines in effect at the time of the purchase/assumption. This also applies to heirs of the owner, provided they both own and occupy the residence. Proof of residency shall be required of all qualifying heirs to the property that own and occupy the residence. Should the City elect not to enable an assumption of the mortgage,or if the buyer does not qualify as eligible under the City's Program Guidelines,then the Note becomes due and payable in full within thirty(30)days. Occasional Payment Policy Payment will be applied first to unpaid interest with any remaining amount applied to the unpaid principal. There will be a nominal processing fee for each occasional payment,to be remitted directly to the loan servicing company.