1995 S Housing - Orange County HOME Consortium - Development Agreement

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Prepared by and return to: Tara L. Fikes,Orange County Housing and CD,P.O.Box 8181,Hillsborough,NC,27278 PROMISSORY NOTE DEFERRED PAYMENT LOAN STATE OF NORTH CAROLINA COUNTY OF ORANGE DATE: 119 FOR VALUE RECEIVED,the undersigned(the`Borrower")jointly and severally promise(s)to pay to Orange County,North Carolina(the"Lender"),the amount of SIXTEEN THOUSAND EIGHT HUNDRED THIRTY THREE DOLLARS AND THIRTY THREE CENTS($16,833.33)(the"Principal Amount"),with interest at the rate of Zero percent (0%)per annum according to the terms herein,at the office of the Lender,200 S. Cameron Street,Hillsborough, North Carolina,or at such other address designated from time to time in writing by the Lender. 1. Loan. This Note evidences a loan made by Lender to Borrower under the HOME Investment Partnerships Act and is subject to the regulations issued thereunder(Title II,Cranston-Gonzalez National Affordable Housing Act, Public Law 101-625, 104 Stat. 4079(1990),24 CFR Part 92)(the"HOME Program"). The Loan is secured by a Deed of Trust,(the"Deed of Trust")dated the same date as this Note,and which is a second lien on the property described in the Deed of Trust (the"Property"). The Trustee is Geoffrey Gledhill. All terms of the Deed of Trust are incorporated in this Note by reference,and any default under the Deed of Trust is a default under this Note. 2. Amount Due. The amount owed under this Note is the Principal Amount paid on behalf of the Borrower by Lender in accordance with Rule 24 CFR Part 92 and the Lender regulations,together with any interest which accrues pursuant to Paragraph 6 below,as part of a special home ownership program. 3. Assumptions. The Note may be assumed only on the prior written approval of the Lender. Housing purchased with assistance from the Lender must remain affordable to assumers according to the occupancy and any other applicable requirements of the HOME Program and the Lender. All terms and conditions of the Note and the Deed of Trust shall remain in effect for any successor to Borrower and any successor shall assume all duties and obligations of the Borrower. 4. Payment. No monthly principal or interest payments are required. All unpaid Principal amount of the loan shall only be due and payable on the earlier of the following dates(the"Due Date"): A. The date of the property is sold or transferred by the Borrower,whether voluntarily or involuntarily or by operation of law,other than to a qualified assumer under Paragraph 3; B. The date a default occurs under the terms of any loan secured by a lien to which the Deed of Trust is subordinated(the"First Loan"); C. The date the Property ceases to be the principal residence of the Borrower;or D. The date the debt evidenced by the First Loan is refinanced; E. In the event none of the above,A through D,occur within 20 years of this date,this obligation shall be deemed paid in full. 5. Right to Repay. The Amount Due under this Note can be prepaid without any prepayment charge. 6. Interest Payment. Once the Principal Amount owed under this Note becomes due and payable pursuant to Paragraph 4,and is unpaid,the Borrower will pay interest on such amount from the Due Date at the rate of ten percent (10%)per annum,until fully paid. 7. Default Remedies. On default,the Lender may employ an attorney and the Borrower agrees to pay to the Lender all reasonable attorney's fees,plus all other reasonable expenses incurred by the Lender in exercising any of the Lender's rights and remedies on default. The rights and remedies of the Lender as provided by law,by this Note,and by the Deed of Trust shall be cumulative and may be perused singly,successively,or together. The failure to exercise any such right or remedy shall not be a waiver or release of such rights or remedies. 8. Governing Law. This note is to be governed and construed in accordance with the laws of the State of North Carolina. 9. Assignment. The Borrower consents to the assignment of this Note transferring the Lender's right,title and interest. IN TESTIMONY WHEREOF,Borrower has executed this instrument under seal on the date first above written. BORROWER(S): (Seal) (Seal) (Typed Name) (Typed Name)