Orange County NC Website
Browse       Search
1.5 The Loan shall be used only for the construction measures identified in <br /> comprehensive plans, work write-ups and specifications which shall be submitted <br /> by the Borrower to the Agency for review and approval prior to commencement of <br /> construction activities. Funds for the construction of the Project will not be <br /> released until the Agency has received and approved these final plans and <br /> specifications (which must be submitted by Borrower to the Agency for review and <br /> approval prior to contractor procurement and the commencement of work). <br /> Construction payments will be made subject to provision 4.3 of this Commitment <br /> and shall bear no interest, so long as the Borrower is not in default under the Note, <br /> the Deed of Trust, the Regulatory Agreement, this Commitment, the Loan <br /> Agreement, if any, and any other documents executed in connection with this Loan <br /> (collectively referred to as the "Loan Documents"). <br /> 1.6 If the Borrower maintains compliance with each and every term and condition of <br /> the Loan Documents, then Borrower shall repay the Loan in a single lump sum <br /> payment of the original principal balance of this Loan. Said lump sum shall be due <br /> and payable at the end of the term of the Loan (the "Maturity Date"). Failure to <br /> make such payment shall be a default under the terms of this Note. If at any time <br /> prior to the end of the term of this Loan, the Borrower does not achieve and <br /> maintain such compliance, then Borrower shall be in default of this Loan, and the <br /> total outstanding balance existing at the time of such default shall be immediately <br /> due and payable.,After default, the outstanding balance under the Promissory Note <br /> shall accrue interest at the rate of ten percent (10%) per annum. Should the <br /> Property's future use continue as originally proposed in the Application dated June <br /> 15, 1994, the Borrower may, at the time of the Maturity Date, reapply to the <br /> Agency for refinancing of the principal balance of the Loan, provided compliance <br /> with all terms of the Loan Documents will be maintained. <br /> 1.7 The Loan may be assumed only upon the prior written approval of the Agency. All <br /> terms and conditions of the Loan Documents shall remain in effect for any <br /> successor and any successor shall assume all duties and obligations of the <br /> Borrower. <br /> 1.8 All leases and rents for units described in the Borrower's Application shall be <br /> assigned to the Agency. <br /> 1.9 The County must execute an Estoppel and Modification Agreement acceptable to <br /> the Agency setting forth, among other things: <br /> (i) That the Lease is in full force and effect and that the Borrower is not in <br /> default thereunder; <br /> (ii) That the County will not amend the Lease without the Agency's prior <br /> written consent; <br /> (iii) That the County shall send any notice of default under the Lease by the <br /> Borrower to the Agency, and shall not terminate the Lease because of such <br /> default until the Agency has a reasonable time to cure the default; <br /> (iv) If Borrower is in default under the Lease, the County will not terminate the <br /> Lease so long as the Agency dilifently proceeds to cure the default or <br /> foreclose its Leasehold Deed of Trust, and upon such foreclosure, the County <br /> will accept the Agency as Lessee under the Lease. <br /> 3 <br />