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Rev August 8, 2018 <br />a. During the term of this Note, Borrower shall make no payment of principal and interest; <br />provided that if Borrower shall be in default of any of the terms of this Note, Deed of <br />Trust, or then the entire outstanding balance of this Note, together with interest thereon <br />as set forth herein, shall become immediately due and payable. The amount owed under <br />this Note shall be repaid as required in the provisions below. Interest on the unpaid <br />balance after default shall be due and payable at the rate of five percent (5%) per annum <br />on the outstanding balance. <br /> <br />b. The amount owed under this Note shall, at the option of the Holder, become due and <br />payable on the occurrence of any of the following events during the Period of <br />Affordability: <br />i. The Property is sold, transferred or otherwise alienated by Borrower whether <br />voluntary or involuntary, or by operation of law, without the prior written <br />consent of Holder, or <br />ii. Default under any of the terms of this Note, the Deed of Trust, or <br />iii. Property ceases to be occupied by Borrower, including upon the death of the <br />Borrower. <br />c. Unless accelerated in the event of Borrower's default, at each anniversary date the <br />balance due under this Note shall be reduced by _____ percent (______%) per year <br />of the original principal amount of the Loan, and the term of the per year loan shall <br />be ______ years. <br /> <br />4. TRANSFER OR DEFAULT. <br />a. In the event the transfer or default occurs during the first Loan Year, the entire loan <br />amount shall become due and payable by the Borrowers or their heirs or assigns. <br />b. In the event the transfer or default occurs during any subsequent loan year during the <br />Period of Affordability, the amount due shall be reduced by the product obtained by <br />multiplying the number of full of loan years that have elapsed by the quotient <br />obtained by dividing the loan amount by the number of years of the Period of <br />Affordability. <br />c. In the event the transfer or default occurs after the Period of Affordability, the <br />amount due shall be extinguished, and the Borrower shall be entitled to a <br />cancellation of this Note and Deed of Trust without payment. <br /> <br />5. All parties to this Note, whether principal, surety, guarantor or endorser, hereby waive <br />presentment for payment, demand, notice of protest and notice of dishonor, and further <br />waive any other person or property. All parties further agree that without notice to any party <br />and without affecting any party's liability, Holder, at any time or times, may grant <br />extensions of the time for payment or other indulgences to any party or permit the renewal, <br />amendment or modification of this Note, and may add or release any party primarily or <br />secondarily liable. <br /> <br />6. ASSUMPTION. The Loan may be assumed only upon the prior written approval of the <br />Holder. Any and all terms and conditions of this Note and Deed of Trust shall remain in full <br />force and effect for any successor to Borrower and any successor shall assume all duties and <br />obligations of the Borrower. <br />DocuSign Envelope ID: 62EC95C2-2AA8-49D7-B576-F94193C9DB65