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guidelines. For example, if a Borrower has a 50% interest in an exempt property that is worth $250,000 the Lender/Agency will apply an interest yield of 6% (for this example) to 50% of the ownership, or 6% towards $125,000. This would equate to an additional $7,500 of income added to the Borrower's income for program eligibility purposes. e. "Program" shall mean to the Redevelopment Agency of the City of Redwood City First Time Homebuyer Program f. "Program Guidelines" shall mean the Program Guidelines dated June 12, 2000, and approved by the Agency, as may be amended from time to time by the Agency. g. "Dwelling" shall mean the real property commonly known and described as 4000 Farmhill Blvd. 101 Redwood City, CA 94061 California, which will be the Principal Residence of the Borrower. h. "Principal Residence" shall mean the place where the Borrower reside on a substantially full-time basis, for not less than ten (10) months in each calendar year. i. "Note" shall mean the promissory note made by the Borrower payable to Lender/Agency secured by the Junior Deed of Trust upon the Dwelling. j. "Senior Deed of Trust" shall mean the deed of trust made by the Borrower to a lender which is a prior lien upon the Dwelling senior to the Junior Deed of Trust, commonly referred to as the first lender. h. Disqualifying Events shall include but not be limited to: (I) Lease of the Dwelling for a period of more than two months in any one calendar year. (ii) Sale, conveyance, or other alienation of the Dwelling (including a sale under a deed of trust in the event of foreclosure), if the remaining ownership interest of the Borrower in the Dwelling is less than fifty percent (50%). (iii) Borrower ceases to reside in the Dwelling as his or her or their Principal Residence. (iv) A default shall occur under the terms of the Senior Deed of Trust and said default shall not be cured within sixty (60) days following the recordation of notice of default by the trustee under the Senior Deed of Trust. (v) Borrower incurs additional indebtness, either through a senior or junior loan, on the property in excess of the principal balance of the existing loans secured against the property at the original purchase of the property. 2. Loan. Lender/Agency agrees to lend and the Borrower agree to borrow the sum of $100.000 (One Hundred Thousand_ Dollars). The loan will be evidenced by the Note and will be secured by the Junior Deed of Trust upon the Dwelling. 3. Disqualifying Event. Upon the first day of the calendar month following a Disqualifying Event, notwithstanding anything to the contrary contained in the Note or the Junior Deed of Trust, the following shall occur. a. Interest on the Note shall accrue at a rate equal to the Eleventh District Cost of Funds plus 2.5% per annum, and the principal balance of the Note shall be amortized in equal monthly installments including interest and principal over a period of thirty (30) years commencing upon the first day of the second month following the Disqualifying Event. b. At the option of the holder of the Note, the entire remaining balance of the principal and accrued interest shall become immediately due and payable. 4.. Refinancing. Lender/Agency shall not be required to subordinate to the lien of a new Senior Deed of Trust in the event that the loan initially obtained by the Borrower is to be refinanced. Provided, however, Lender/Agency will consent to such refinancing if all of the following conditions are met: (a) the proceeds of such loan do not exceed the amount of the remaining principal secured by the Senior Deed of Trust, plus the reasonable cost of refinancing, (b) the interest rate payable under the note given in connection with the refinancing is less than the interest rate payable under the note secured by the Senior Deed of Trust prior to refinancing, and (c) the Borrower does not obtains an additional junior loan which will create an indebtness over the current balance of the existing loans on the property, and c) no Disqualifying Event has occurred. Redwood City First Time Homebuyer Silent Loan Program -Shared appreciation agreement April 23, 2001 Mill lllllllllllllllllllillllllllllllll!IIIIIIIIIIIII we,93.='� __'