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PROMISSORY NOTE <br />DEFERRED PAYMENT LOAN <br />Date: July ff. 2018 <br />Amount: ONE HUNDRED TEN THOUSAND DOLLARS (U.S. $110,000.00) <br />1. Loan. This Note evidences a loan made by Orange County, a general local <br />governmental unit of the State of North Carolina, ("Lender") to Habitat for Humanity, Orange <br />County, N.C. Inc., a North Carolina Non Profit Corporation (`Borrower") under a Development <br />Agreement pursuant to the Orange County Long -Term Housing Affordability Policy. The loan is <br />secured by a Deed of Trust, (the "Deed of Trost ") dated the same date as this Note, and which is <br />a lien on the property described in the Deed of Trost (the 'Property "). The Trustee is John <br />Roberts. All terms of the Deed of Trost are incorporated in this Note by reference, and any <br />default under the Deed of Trost is a default under this Note. <br />2. Borrower's Promise to Pay. In return for a loan received (the "Loan "), Habitat <br />for Humanity of Orange County ( "Borrower ") promises to pay ONE HUNDRED TEN <br />THOUSAND DOLLARS (U.S. $110,000.00) or an much of the loan as may have been <br />disbursed and remain unpaid, with interest, if any, until paid, to Orange County, North Carolina <br />( "Lender "). Amounts advanced by Lender to protect its interest in the Property securing this <br />Note, if any, shall be added to the principal amount owing under this Note, shall accrue Interest <br />at the Default Rate from the date of advance until paid and shall be due and payable on demand. <br />3. Interest Rate. Interest shall accrue on the unpaid principal balance at a rate of <br />zem percent (0"/") per year. <br />4. Payments. No monthly principal or interest payments are required. All <br />unpaid principal amount of the loan shall be due and payable on the day of the earlier of the <br />following dates (the "Due Date "): <br />The date the Property is sold or transferred by the Borrower, whether voluntarily <br />or involuntarily or by operation of law, other than to a qualified assumer under <br />Paragraph 5; <br />b. The date a default occurs under the terms of any loan secured by alien to which <br />the Deed of Trust is subordinated; <br />C. Any date within 40 years after the date of recording of the last deeds of trust <br />securing the Lender's investment in the dwelling units that are the Project <br />described in the Development Agreement, if on or prior to that date, the Property <br />ceases to provide affordable housing, as defined in the Development Agreement. <br />5. Assumptions. The Note may be assumed only on the prior written approval of the <br />Lender. All terns and conditions of the Declaration of Restrictive Covenants, this Promissory <br />Note and the Deed of Trust shall remain in effect for any successor to Borrower and any <br />Successor shall assume all duties and obligations to the Borrower. <br />6. Place of Payments. Borrower shall make payments to Lender at Orange County <br />Housing, Human Rights and Community Development, Post Office Box 8181, Hillsborough, NC <br />1 <br />