AgdaPkt 2003-03-24 - Laserfiche WebLink

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4,52 PROMLNSORY NOTE Secured by a Deed of Trust (This Note contains an acceleration clause) $500,000.00 Redwood City, California March—, 2003 FOR VALUE RECEIVED, MP Redwood Court Associates, a California Limited Partnership of Redwood City, ( "Payor ") promises to pay to the Redevelopment Agency of the City of Redwood City ( "Payee "), or order, at 1017 Middlefield Road, Redwood City, California, or any place Payee may designate from time to time in writing, the sum of Five Hundred Thousand and No/] 00 Dollars ($500,000.00) , as provided in that certain agreement entitled, "AGREEMENT WITH MP REDWOOD COURT ASSOCIATES FOR FUNDING TO REHABILITATE REDWOOD COURT APARTMENTS" (the "Agreement'), between the Redevelopment Agency of the City of redwood and MP Redwood Court Associates, dated March _, 2003. The parties hereto acknowledge that the interest rate set forth herein is lower than prevailing market rates in order to encourage the rehabilitation of affordable rental housing, and that the loan for which this Promissory Note is written is being made for the purpose of assisting MP Redwood Court Associates with the rehabilitation of an existing affordable multifamily housing development located at 622 Chestnut & 635 Spruce Street, Redwood City, CA (the "Property"). This Promissory Note is secured by a deed of trust (the "Deed of Trust') of even date with Power of Sale encumbering the Property. The Promissory Note and Deed of Trust shall be executed prior to any disbursement of funds under the Agreement. The principal amount under this Note shall bear no (0%) interest. The term of the Agency Loan evidenced by this Promissory Note shall be for the earlier of (a) 30 years from the date of recordation of the Deed of Trust; (b) when the eligible use specified in the Agreement is no longer provided. Principal shall be deferred for the full thirty year term, subject to the payment of principal pursuant to the Due on Sale clause set forth herein and upon failure to provide the eligibility use specified in the Agreement. Should the undersigned agree to or actually sell, convey, transfer, or dispose of, or further encumber the Property, or any part or portion of it, or any interest in it, without first obtaining the written consent of the Payee, at the option of Payee, the entire amount of the Agency Loan shall become due and payable. Consent to one transaction of this type will not constitute a waiver of the right to require consent to future or successive transactions. Should fewer than four (4) units remain -1 03/032003