MIDPEN HOUSING - Laserfiche WebLink

PROMISSORY NOTE CITY OF PLEASANTON HOME INVESTMENT PARTNERSHIPS ("HOME") PROGRAM $450,000 Oc hher 24, 2014 Pleasanton, California FOR VALUE RECEIVED, MidPen Housing Corporation, a California public benefit corporation ("Borrower"), promises to pay to the City of Pleasanton, a California municipal corporation ("City") the principal sum of Four Hundred Fifty Thousand Dollars ($450,000), or so much thereof as may be advanced by City, together with interest as provided herein. The outstanding principal balance of this promissory note (this "Note") shall bear simple interest at the rate of three percent(3%) per annum commencing on disbursement. This Note evidences the obligation of Borrower to City for the repayment of certain funds described in Paragraph 1 loaned to Borrower by City pursuant to the HOME Investment Partnerships Program (HOME) Agreement ("Agreement"), in connection with acquisition, and development costs for development of affordable senior rental housing in Pleasanton, California as described in Exhibit A (the "Property"). 1. Loan. This Note is executed pursuant to that certain HOME Loan Agreement dated as of , 2014 and executed by and between Borrower and City (the "Loan Agreement"). Capitalized terms used without definition herein shall have the meanings ascribed to such terms in the Loan Agreement. Borrower will use the proceeds of the Loan for project costs as described in the Loan Agreement (the "Project"). 2. Security. Following City's execution of a ground lease to Borrower, payment of this Note is secured by a Deed of Trust (the "Deed of Trust") dated as of even date herewith and executed by Borrower as Trustor for the benefit of City as Beneficiary. In connection with the Loan, the Borrower and City entered into a Regulatory Agreement (the "Regulatory Agreement") dated as of even date herewith that sets forth certain limitations on household incomes and rent for the HOME assisted units. The Deed of Trust and the Regulatory Agreement shall be recorded against the Property and the Project concurrently with execution of the ground lease. 3. Maturity Date; Payments. The entire outstanding principal balance of this Note, together with interest accrued thereon and any other sums accrued hereunder will be due and payable no later than fifty-five (55) years after conversion to permanent financing of the Project, but in no event later than sixty (60) years after the date of the Note ("Note Maturity"). Payments shall be made in lawful money of the United States to City at 123 Main Street, Pleasanton, California 94566. The place of payment may be changed from time to time as the City may from time to time designate in writing. Notwithstanding anything to the contrary in this Note, provided that Borrower is not in default under this Note, Borrower may terminate this Note under the circumstances set forth 191\52\1559191.2