PROMISSORY NOTE
$10,000 Pleasant Hill, California ___________, 2022
FOR VALUE RECEIVED, the "Borrower", _______________, promises to pay to the CITY OF PLEASANT HILL, a California municipal corporation ("City") at 100 Gregory Lane, Pleasant Hill, California 94523 or such other location as the City may designate, the principal sum of Ten Thousand Dollars ($10,000.00) in lawful money of the United States of America, plus interest, payable as set forth below.
The principal obligation evidenced by this Promissory Note shall be repayable as follows:
Ten Thousand Dollars ($10,000.00) shall bear simple interest at the rate of three percent (3%) per annum starting on _________, 2022.
1. The full amount of outstanding principal and accrued, unpaid interest shall be due and payable on the one year anniversary of the date of this Note, as set forth above (the “Maturity Date”). Further, Borrower and City have entered into that certain Affordable Housing Regulatory Agreement dated ______________, 2022 (the “Regulatory Agreement”). In the event that the Regulatory Agreement is terminated pursuant to Article 8 thereof due to the Property not qualifying for a welfare exemption under Section 214(g) of the California Revenue and Taxation Code, the full amount of principal and accrued, unpaid interest shall be immediately due and payable upon such termination of the Regulatory Agreement.
2. In the event the Borrower should fail to pay any interest or principal of this Note when due, and if such default has not been cured on the date of the next installment payment under this Note, then the entire amount of unpaid principal of this Note, together with all accrued interest, shall become due and payable at the option of the City, without notice to the undersigned. Failure of the City to exercise such option shall not constitute a waiver of such or any subsequent default.
3. In the event of any of the following events, at the option of the City, all sums of interest and principal of this Note shall become immediately due and payable without notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor, or other notices or demands of any kind or character:
a. Default in the performance of any of the covenants and conditions of the Deed of Trust securing this Note, or any other document by which this Note is secured; or
b. Appointment of a receiver or trustee to take possession of any property of the undersigned or any endorser of this Note; or c. Attachment of any involuntary lien or liens, of any kind or character, to the assets or property of the undersigned or any endorser of this Note which lien is not removed or a surety bond is not provided for within sixty (60) days.
4. The undersigned agrees that City shall have the rights and remedies
available to a creditor under, and that this obligation shall be construed in accordance with, the laws of the State of California.
5. The undersigned agrees and acknowledges that City has not made any representations concerning City's willingness not to exercise, or to delay exercising any right or remedy to endorse this Note. No waiver by City of any right or remedy shall be effective unless in writing and signed by City and no such waiver on one (1) occasion shall be construed as a waiver on any other occasion. No modification of this Note shall be effective unless the modification is in writing and is signed by City.
6. The undersigned agrees that the rights granted to City pursuant to this Note shall accrue to any endorsee of this Note who is lawfully in possession of this Note.
7. In the event that suit be brought hereon, or an attorney be employed, or expenses be incurred to compel payment of this Note or any portion of the indebtedness evidenced hereby, the undersigned promises to pay all such reasonable expenses and reasonable attorney's fees.
8. The Borrower, endorsers, and sureties of this Note, and each of them, hereby waive diligence, demand, presentment offer payment, or protest and notice of protest. In the event there is more than one (1) signatory hereto, each of the obligations undertaken herein is joint and several obligations of each signatory.
9. Notwithstanding anything to the contrary contained herein and except for that certain mortgage loan in the original principal amount of $______________________ made by _____________________ to Borrower (the “Senior Loan”), if Borrower encumbers, sells, contracts to sell, leases with option to purchase or otherwise transfers any interest in the Property subject to the Deed of Trust securing this Note (or a beneficial interest in Maker is sold or transferred), then at the option of City, the entire principal and interest balance of this Note, irrespective of the maturity date expressed herein and without demand or notice, shall be immediately due and payable.
10. This Note and the Deed of Trust securing this Note shall be subordinated to the note and deed of trust securing the Senior Loan. In the event of any default under this Note, Deed of Trust, or any other loan documents relating to this Note, any cure tendered by any senior lender shall be accepted or rejected on the same basis as if tendered by Borrower.
BORROWER:
____________________
Name: ____________
Title: _______________
Date: ________________