DUVALL - Laserfiche WebLink

10. Acceleration. The City has the right to declare the full amount of the principal along with any interest under this Note immediately due and payable in the event (i) of a default by Borrower under the Loan Agreement or this Note, (ii) the Borrower fails to maintain the Property in accordance with all applicable laws relating to the use and maintenance of the Property, including but not limited to the City of Pleasanton Municipal Code, City of Pleasanton Planning and Zoning Code, and all other local, state and federal laws or (iii) on the date a Transfer is made whether voluntarily, involuntarily, or by operation of law and whether by deed, contract of sale, give, devise, bequest or otherwise. Failure to declare such amounts due shall not constitute a waiver on the part of the City to declare them due in the event of a subsequent default. Any failure by the City to pursue its legal and equitable remedies upon default shall not constitute a waiver of the City's right to declare a default and exercise all of its rights under this Note or the Deed of Trust. Nor shall acceptance by the City of any payment provided for herein constitute a waiver of the City's right to require prompt payment of any remaining principal and interest owed. In the case of default and/or non-compliance with any term of this Note or the Loan Agreement, the interest rate shall increase to the legal rate of ten (10) percent per annum on the unpaid principal until the default and/or non- compliance is remedied, or the outstanding principal and interest are paid in full to the City. 11. Assumption of Note is Restricted. Borrower acknowledges that this Note is given in connection with the rehabilitation of the Property as part of the City's Housing Rehabilitation Program, which provides grant and loans to qualified very low- and low- income households. Consequently, this Note is not automatically assumable, but is subject to Section 711.5 of the California Civil Code which allows the City to accelerate all amounts due under this Note upon sale or Transfer of the Residence. 12. Discontinuation of Residency. The Borrower must notify the City at least thirty (30) days in advance of discontinuing residency of the Property as his/her primary residence. 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 Note on the original terms provided that the buyer qualifies under the City of Pleasanton's Housing Rehabilitation Program Guidelines in effect at the time of the purchase or assumption. This also applies to heirs of the Borrower, provided the heirs own and occupy the Property. 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 Note, or if the buyer does not qualify as eligible under the City's Housing Rehabilitation Program Guidelines, the Note will become due and payable in full in accordance with the acceleration provisions noted in Paragraph 10. 13. Prepayments. Borrower may prepay all or part of the principal balance and interest due under this Note. There will be no penalty for prepayment of amounts due under this Note. 14. Application of Payments. All payments received on account of this Note shall be first applied to accrued interest and the remainder shall be applied to the reduction of City of Pleasanton Rehabilitation Program Promissory Note Page 3