RecDoc2025-059266 CDBG Loand Documents- David H. Menche

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4. Interest Rate. The Loan shall not accrue interest. Term of Loan; Forgiveness and Right of Prepayment. a. The Term of the Loan is five (5) years. Provided that Borrower completes the repairs and rehabilitation work in accordance with the terms of the Loan Agreement, occupies the home on the Property as Borrower's principal residence, and remains in compliance with all terms and conditions of the Rehabilitation Loan Agreement, the Loan shall be forgiven and discharged in five (5) equal installments, with each installment forgiven on the yearly anniversary of the Effective Date of the Rehabilitation Loan Agreement. Provided that Borrower has not defaulted under the Rehabilitation Loan Agreement, this Promissory Note or the Deed of Trust, upon the fifth (5t") anniversary of the Effective Date, the Loan shall be forgiven in its entirety. b. This Promissory Note may be prepaid in whole or in part at any time and from time to time without penalty or premium. 6. Acceleration Upon Default. In the event of any Default as described in Section 12 of the Rehabilitation Loan Agreement, at the option of the Lender and after notice to the Borrower, providing Borrower with thirty (30) days in which to cure any Default, and such Default not having been cured within thirty (30) days (or if a greater amount of time is reasonably necessary to effect a cure, if actions to cure such default are not undertaken within said thirty (30) day period and pursued with reasonable diligence thereafter), all outstanding principal due at the time of such Default under this Promissory Note shall immediately become due and payable, upon thirty (30) days written notice from the Lender to the Borrower. Failure to exercise such option shall not constitute a waiver of the right to exercise it in the event of any subsequent Default. 7. Costs Paid by Borrower. Borrower agrees to pay the following costs, expenses and attorney's fees paid or incurred by the Lender, or as adjudged by a court of competent jurisdiction: (a) reasonable costs of collection, costs and expenses and attorneys' fees paid or incurred in connection with the collection or enforcement of this Promissory Note, whether or not suit is filed; and (b) costs of suit in such sum as the court may adjudge reasonable as attorney's fees in any action to enforce payment of this instrument. 8. Waiver. Borrower hereby waives diligence, presentment, protest and demand, notice of protest, dishonor and nonpayment of this instrument, and expressly agrees that, without in any way affecting the liability of Borrower hereunder, the Lender may extend any maturity date or the time for payment of any installment due hereunder, accept additional security, release any party liable REV: 10-01-25 LF ATTY/AGR.2025.253/Habitat for Humanity (Client: David Menche) (2757 Bristol Way - Habitat Promissory Note) (Page 2 of 3)