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$400,000.00 <br />Exhibit C <br />(Promissory Note) <br />PROMISSORY NOTE <br />DATE: <br />07/22/2013 <br />For value received, Mental Health Association of San Mateo County, a California <br />Non -Profit Corporation (the "Owner"), hereby promises to pay to the City of Redwood <br />City (the "City"), in United States currency, the principal sum of Four Hundred Thousand <br />Dollars and zero cents ($400,000.00), together with interest thereon, if applicable, as <br />provided below. <br />1. Community Development Block Grant (CDBG) Funding Agreement <br />This Promissory Note ("Note") is entered into pursuant to that certain CDBG Funding <br />Agreement (the "Agreement") by and between the City and the Owner, <br />dated , 2013. In the event of a conflict between the provisions of this <br />Note and the Agreement, the provisions of the Agreement will govern. Capitalized terms <br />used in this Note will have meanings set forth in the Agreement unless otherwise <br />defined herein. This Note is the "Promissory Note" as defined in the Agreement. <br />2. Security <br />As security for payment of this Note, the Owner has granted to the City a deed of trust <br />("Deed of Trust") on certain property located in the City of Redwood City and the <br />improvements thereon as more fully described in the Agreement (the "Property"), which <br />Deed of Trust will be subordinate only to such security instruments as are approved by <br />the City in its sole discretion. <br />3. Repayment Provisions <br />a. Except as set forth below, this Note shall be deferred of payments for a term of 30 <br />years at zero percent (0%) interest. <br />b. Notwithstanding the foregoing, the full amount of the cumulative principal advanced <br />under this Note, shall become immediately due and payable upon a breach of the <br />Agreement, this Note or the Deed of Trust, or the failure of the Owner to strictly abide <br />by the provision of the Affordability Covenants (as defined in the Agreement) recorded <br />against the Property and a failure to cure such breach within the time set forth in the <br />Agreement. In such event, the Owner shall repay the full amount of the principal under <br />this Note together with three percent (3%) interest per annum on said principal from <br />either the date of its advance or the date of Project Completion described in the <br />Agreement, at the sole option of the City, until the date of repayment. <br />RESO. # 15282 <br />MUFF # 608 <br />