HomeMy WebLinkAboutModification to Promissory Note Secured by Deed of Trust MODIFICATION TO PROMISSORY NOTE
SECURED BY DEED OF TRUST
This MODIFICATION TO PROMISSORY NOTE SECURED BY DEED OF TRUST
("Modification") is entered into on M 14 , 2013, and is affixed to and
forms a part of that certain Promissory Note Secured by Deed of Trust dated December /0
2010, in the original principal amount of Two Hundred Sixty Thousand Dollars ($260,000.00),
issued by HABITAT FOR HUMANITY FOR SAN LUIS OBISPO COUNTY, a California
nonprofit corporation ("Borrower"), and payable to the CITY OF ARROYO GRANDE AS
HOUSING SUCCESSOR TO THE DISSOLVED ARROYO GRANDE REDEVELOPMENT
AGENCY ("City").
The Note is hereby endorsed and modified as follows:
1. All references in the Note to the term "Loan Documents" shall be deemed to
include this Modification, any future amendments to the Note, and the Affordable Housing
Agreement between Borrower and City dated Mai itt , 2013, as may be amended from
time to time ("AHA"). All terms not otherwise defined in this Modification shall have the
meaning ascribed in the AHA.
2. The first paragraph of Section 2 of the Note is hereby modified to read in its
entirety as follows
"Upon the sale and transfer of each Home to a Qualified Homebuyer and the satisfaction
of the following conditions, a portion of the Agency Loan equal to the Pro Rated Amount
shall be forgiven: (a) a certificate of occupancy has been issued by the City building
department for the Home; (b) City has determined the proposed buyer of the Home is
a Qualified Homebuyer and the purchase price does not exceed the Affordable
Purchase Price; (c) all documents required to be executed by City in connection with the
sale of the Home, including the City Homebuyer Documents, have been executed and all
recordable documents have been recorded; (d) all other conditions and approvals required
for the transfer chall have been satisfied or obtained; and (e) Borrower is not in default of
the AHA. As used herein, the term "Pro Rated Amount" shall mean the amount derived
by multiplying the Agency Loan by a fraction in which the numerator is 1 and the
denominator is the total number of Homes to be developed on the Property by Borrower.
For example, if Borrower is to develop seven Homes on the Property, the Pro Rated
Amount would be 1/7th of the Agency Loan."
2. Sections 3 and 4 of the Note are hereby modified to read in their entirety as
follows:
"3. Default. Borrower shall be deemed in default of this Note in the event
Borrower fails to timely make any payment required by this Note, or fails to perform any
other obligation under this Note within thirty (30) days after notice of the default. In the
event of a default, City may, at its option, declare this Note and all indebtedness secured
by the Deed of Trust immediately due and payable pursuant to Section 4.
4. Acceleration. To the extent permitted by applicable law, in the event: (a)
Borrower shall directly or indirectly, voluntarily or involuntarily, sell, assign, transfer,
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dispose of, alienate, encumber, lease, or agree to sell, assign, transfer, dispose of,
alienate, encumber, or lease all or any portion of any interest in the Property (excluding
the sale of the Homes in compliance with the requirements of the AHA and the lien of the
Permitted Encumbrances); or (b) Borrower shall refinance any lien or encumbrance
secured by the Property for a loan amount in excess of the then outstanding sum secured
by such lien or encumbrance or extend the term of any loan secured by any such lien or
further encumber the Property; or (c) Borrower shall default on any of its obligations set
forth in the Loan Documents and fail to cure within any notice and cure period set forth
in the applicable document; or (d) Borrower shall default on any obligations under any
documents relating to any other financing that is secured by the Property; or (e) the
Project Conditions (as defined in the AHA) are not satisfied within the time periods set
forth in the AHA, or by the date that is sixty(60) months after the Effective Date (defined
in the AHA) if no earlier time period is set forth in the AHA, then, or at any time
thereafter, City, at its option, may declare the entire indebtedness evidenced hereby and
by the Deed of Trust immediately due and payable.
3. Except as expressly modified by this Modification, the Note shall remain
unmodified and in full force and effect.
[end—signature page follows]
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IN WITNESS WHEREOF, Borrower and City have executed this Modification as of the
date first above written.
"BORROWER"
HABITAT FOR HUMANITY FOR SAN
LUIS OBISPO COUNTY, a California
nonprofit public bene corporation
By: v ksdiAs.
Its: n Q 1en Crn
By:
Its: Chart). S4eveY.scn :Beard C ur
"CITY"
CITY OF ARROYO GRANDE AS HOUSING
SUCCESSOR TO THE DISSOLVED
ARROYO GRANDE REDEVELOPMENT
AGENCY
By:
Tony F ayor
ATTEST•
'` / . 'JIROPo
Kelly NV, woe., City Clerk
ORATED i
•
4 'SLY 1o. 197*
oak kFoRo
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