RecDoc 612 Jefferson Ave. #401 - Laserfiche WebLink

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HOME INVESTMENT PARTNERSHIP PROGRAM (HOME) - PROMISSORY NOTE SECURED BY DEED OF TRUST $83,503 as of AL44 U 69 2022 Property Address: 612 Jefferson Ave., #401, Redwood City, CA 94063 1. BORROWER(S)'S PROMISE TO PAY In return for a loan that I/we, David AbdulMagid Abugeith (the "Borrower(s)" or "I/we") have received (the "City Loan'), the undersigned Borrower(s), jointly and severally, promise to pay to the order of the Lender the principal amount of U.S. Eight Three Thousand Five Hundred Three Dollars ($83,503). The "Lender" is the City of Redwood City (the "City'). The Lender may transfer this Note. The Lender, and anyone who takes this Note by transfer and is entitled to payments under this Note is a "Note Holder." 2. AFFORDABILITY COVENANTS, RESALE RESTRICTION AGREEMENT This Note is part of an affordable housing program designed to create, preserve, maintain and protect housing for persons of low and moderate income (collectively, the "Program') approved by the City. In exchange for the City Loan and the right to purchase the property identified above (the "Home' at the affordable housing purchase price, Borrower(s) assume title subject to the Grant of Option to Repurchase and Resale Restriction Agreement ("Resale Restriction Agreement) executed by Borrower(s), the City, and Habitat for Humanity Greater San Francisco, Inc. ("Habitat's, recorded in the Official Records of San Mateo County, California. Capitalized terms used herein and not defined in this Note shall have the meanings set forth in the Resale Restriction Agreement. 3. INTEREST The outstanding principal balance of this Note shall bear simple interest at the rate of three percent (3%) per annum from the date of disbursement until paid. 4. LOAN TERM (a) Maximum Term. The maximum term of this Note is Fifty -Five (55) years starting on execution date hereof (the "Loan Term"), (b) Maturity Date. The "Maturity Date" of the City Loan shall be either (1) the date of transfer of the Home secured by the deed of trust securing this Note (the "Deed of Trust') other than a transfer to an Eligible Household or Habitat in accordance with Section 5(b) below, a transfer to a permitted Transferee in accordance with 5(c) below or a transfer to the City in accordance with 5(d) below; or (2) the expiration of the Loan Term. 5. PAYMENTS There shall be no payments due under this Note, unless payments are otherwise due pursuant to the provisions of Sections 5(a) through (e) of this Note and/or the Resale Restriction Agreement. The last payment of principal on this Note, if any, is due no later than the Maturity Date, and, if on that date I/we still owe any amount under this Note, I/we will pay those amounts in full on that date; provided, however, if upon the expiration of the Loan Term, the Borrower(s) have not Transferred the Home and is still the legal owner of the Home and the Borrower(s) have materially complied with its obligations under the Deed of Trust and Resale Restriction Agreement and no uncured Event of Default exists thereunder, the City Loan shall be forgiven in its entirety. In such event, the City shall execute and deliver for the benefit of Borrower(s) any documents necessary to effectuate such cancellation and release of the lien under this Note and the City Deed of Trust. Payments shall be due under this Note only under the following circumstances: (a) In the event of an Event of Default, pursuant to the Resale Restriction Agreement, or under this Note or Deed of Trust, all amounts owing under this Note and Deed of Trust, including the initial Principal Amount of this Note and any other amounts owed pursuant to this Note REV: 08-17-22 SK ATTY/AGR.2022.285/Habitat 612 Jefferson 401 (09HOME - Promissory Note (Buyer) HGSF 401) (Page 1 of 4)