Promissory Note UMR (FWHG Grant) Page 1 of 4
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DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT
JOE SERNA JUNIOR FARMWORKER HOUSING GRANT PROGRAM
PROMISSORY NOTE SECURED BY DEED OF TRUST
GRANT NUMBER -FWHG-
U . S . $ C i t y
G r a n t e e : C ounty
D a t e d
FOR VALUE RECEIVED, the undersign ed, (hereinafter referred to a s the "Grantee"), upon the Maturity Date of this Note, hereby promise s to pay to the order of the Department of Housing and Community Development, a public agency of the State of C alifornia (hereinafter referred to as t he "State"), which has its principal office at 1800 Third Street, Sacramento, Cali fornia 95814 (mailing address: P.O. Box 952054, Sacramento, CA 94252-2054), the principal amount of and No/100 Dollars ($ ), or so much thereof as may be advanced by the State to or on behalf of the Grantee, and any obligations or other evidence of indebtedness of Grantee to the S t a t e n o w o r hereafter created pursuant to a Standard Agreement dated , and a Regulatory Agreement (the “Regulatory Agreement”) of even date herewith, each by and between t he Grantee and the State, togeth er with interest thereon as specified herein. The obligation of the Grantee in respect of all such advances is subject to the terms of (a) the Regulatory Agreemen t, (b) this Note, (c) the Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing dated of even date herewith, securing this Note, to be r ecorded in the official records of the County Recorder of County, California (the "Trust Deed"), and (d) the Standar d Agreement, which, together with all other grant related documents and instru ments required by the State, are collectively referred to as the Grant Documents. Capitalized terms not othe rwise defined herein shall have the meanings set forth in the Regulatory Agreement.
Promissory Note UMR (FWHG Grant) Page 2 of 4
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1. On or about even date herewit h, State has made a grant to Gr antee of funds in the principal amount set forth above for the purpose o f assisting the Grantee to develop a ____-unit rental housing project for farm workers located in the City of ______________ (the “Project”) to be located on that particular property described in the Trust Deed (the "Property" ) . T h e development of the Project and its long-term ownership, operati on and maintenance are governed by the Grant Documents. This Note is required by the State to further ensure Grantee’s performance u nder the Grant Documents. As such, all sums advanced under the Grant Documents shall become due and payable, and only shall become d ue and payable, upon breach of the Gr ant Documents, after written notice by the State, and passage of any appl icable cure periods contained in the Grant Documents (the "Maturity Date").
2. The amount due and payable under this Note is payable at the principal office of the State set forth abov e, or at such other place or places as the State may designate to the Grant ee in writing from time to time , in any coin or currency of the United States of America which on the r espective date of payment thereof shall be legal tender for the payment of public and private debts.
3. If Grantee fails to pay the amount due and payable under thi s Note on or before 30 days from the date paym ent is due, this Note shall be gin to accrue simple interest at the rate of ten percent (10%) per annum.
4. All covenants, conditions and agreements contained in the Tr ust Deed and other Grant Documents are hereby made a part of this Note.
5. The following events also shal l constitute a breach under this Note:
a. The Grantee becoming insolvent or bankrupt, being unable or admitting in writing its inability to pay its debts as they are d u e , o r making a general assignment with creditors;
b. Institution by or against the Grantee of proceedings for the appointment of a receiver, trust ee, or liquidator of all or a s ubstantial part of the assets of the Grantee, which proceedings are not dismissed within sixty (60) days of institution;
c. Institution by or against the Grantee of proceedings under a ny bankruptcy, reorganization, readjustment of debt, insolvency,
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dissolution, liquidation or other similar law of any jurisdicti on, which proceedings are not dismissed within sixty (60) days of institution; or
d. Dissolution of the corporate or partnership structure of the Grantee or death of the Grantee, if Grantee is an individual.
6. No delay or failure of State in the exercise of any right or remedy hereunder or under any other agreement which secures or is related hereto shall affect any such right or remedy, and no single or partial exercise of any such right or remedy shall preclude any further exercise thereof, and no acti on taken or omitted by the State shall be deemed a waiver of any such right or remedy.
7. The Grantee hereby agrees to pay all costs and expenses, inc luding reasonable attorney's fees, which may be incurred by the State in the enforcement of this Note, or t he other Grant Documents, or any term or provision thereof. Each make r, endorser, surety, and guarantor of this Note hereby jointly and severally wai ves demand, protest, presentmen t, notice of nonpayment, notice of protest, notice of dishonor, and diligenc e in bringing suit against any party and does h ereby consent that time of pay ment of all or any part of said amount may be ex tended from time to time by th e State without notice. The obligations under this Note shall be witho ut recourse against the Grantee and any partners, general or limited, of the Grantee.
8. Any notice to the Grantee provided for in this Note shall be given by personal delivery or by mailing such notice by certified mail addressed to the Grantee at the address stated below, or to such other address as the Gr antee may designate by written notice to the State. Any notice to the St ate shall be given by personal delivery or b y mailing such notice by certifi ed mail, return receipt requested, to the State at the address stated above, or at such other address as may have been designated by written notice to Grante e, with a copy to the State at the address specified in the Regulatory Ag reement.
Notices mailed in accordance with this provision shall be deeme d delivered and received five (5) days after deposit in the United States mails.
9. This Note shall be binding up on the Grantee and its successo rs and assigns.
The Grantee shall not make any sal e, encumbrance, hypothecation , refinancing, pledge, assignment, or conveyance, or transfer in any other form, of the Property or project or any part thereof or of any of its interests therein other than in accordance with the terms of the Trust Deed, and the Regulatory Agreement, the progr am statutes and regulations and with the prior written approval of the State.
10. The Grantee shall be entitled to pay the indebtedness evidenced by this Note, or any part thereof, prior to or in advance of the time for pay ment. No such
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prepayment shall relieve Grantee from its obligations under the G r a n t Documents except as provided in the Grant Documents.
11. This Note shall be construed in accordance with and be gove rned by the laws of the State of California.
12. If any provision of this Note shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby unless, in the sole discretion of the State, the invalidity, illegalit y or unenforceability of the pr ovision negates the Program purpose and/or threatens the security of the State.
13. The Grantee hereby certifies to the State that this is the Promissory Note described in and secured by the Trust Deed covering the real an d personal property therein described.
14. This Note and the debt evidenc ed hereby shall be fully disc harged and satisfied upon the end of the Te rm of the Regulatory Agreement, as defined therein.
Executed as of the date first set forth above at __________________, California.
G R A N T E E G R A N T E E ’ S A D D R E S S
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