20A - AA - LOAN AGMT 601 E 20TH ST

Home Browse Search

10. Acceleration. The outstanding principal balance of the Loans and all accrued and unpaid interest shall become immediately due and payable upon the occurrence of any one of the following events while any portion of the principal of the Loans remain unpaid: (a) Any sale of the Property, unless such sale has been approved by the City pursuant to Section 6 of this Agreement; (b) Borrower no longer occupies the Property as his, her or their principal residence; (c) The City discovers that Borrower knowingly made a misstatement or misrepresentation pertaining to Borrower's household income or intention to occupy the Property as his, her or their principal residence; (d) An uncured default in performance or breach by Borrower of any provision of this Agreement, the Promissory Note(s), or the Deed(s) of Trust. (e) An uncured default by Borrower on the promissory note evidencing or deed of trust securing the First Mortgage Loan or any other lien listed on Exhibit "H" to this Agreement. City may, in its sole and absolute discretion, waive the requirements of this Section and/or defer repayment and/or extend the term of the Loans. Any such waiver, deferment or extension shall be in writing and signed by City. In the event of acceleration due to an uncured default by Borrower on any lien listed on Exhibit "H" of this Agreement, the City shall have the right to purchase the Property subject to prior liens. In the event that the City exercises such right, Borrower shall indemnify the City from and against any and all liability for the payment of any real estate brokerage commissions due and payable in connection with the City's purchase of the Property. 11. Inspection of Books and Records City has the right at all reasonable times to inspect the books and records of Borrower pertaining to the Property as pertinent to the purposes of this Agreement. 12. Limitation of Funds. The United States of America, through HUD, may in the future place programmatic or fiscal limitations on the use of CDBG funds which limitations are not presently anticipated; likewise, the State of California, through HCD may in the future place programmatic or fiscal limitations on the use of CalHome funds which limitations are not presently anticipated. Accordingly, City reserves the right to revise this Agreement in order to take account of actions affecting HUD and/or HCD program funding. In the event of funding reduction, City may, in its sole and absolute discretion, reduce the budget of the Project as a whole or as to a cost category, may limit Borrower's authority to commit and spend funds, or may restrict Borrower's use of both its uncommitted and unspent funds. Where HUD and/or HCD has directed or requested City to implement a reduction in funding, in whole or as to a cost category, with respect to funding for this Agreement, the Deputy City Manager is authorized to act for City in implementing and effecting such a reduction and in revising, modifying or amending the Agreement for such purposes. Where Page 10 of 15 20A-14