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7, Contingent Equity Participation Amount. If an event of acceleration occurs as <br />described in Section 6, and the Maker is not selling the Property pursuant to Section 4 of the <br />Agreement, the Maker shall pay to the Holder, the whole of the Homebuyer Assistance Loan <br />Amount and the "Contingent Equity Participation Amount," as hereinafter defined. If the <br />Homebuyer is selling the Property to an Eligible Person and Family at an Affordable Housing <br />Cost with the Agency's prior written approval, in accordance with the requirements of Section 9 <br />hereunder and Section 4 of the Agreement, then no Contingent Equity Participation Amount <br />shall be required hereunder in connection with such sale. <br />(a) Calculation of Contingent Equity Participation Amount. The <br />"Contingent Equity Participation Amount" means an amount equal to a percentage share of the <br />appreciation of the Property deters-Lined by multiplying a variable percentage factor (the <br />"Variable Applicable Factor") by the difference between the Sales Price and the Purchase Price <br />(as those terms are hereinafter defined). <br />(b) Variable Applicable Factor Calculation. The Variable Applicable <br />Factor shall be calculated by dividing the Agency's total initial equity contribution (the "Agency <br />Contribution") by the sum of the Agency Contribution plus the Homebuyer's contribution (the <br />"Homebuyer Contribution"). In other words, the Agency Contribution shall be the numerator, <br />and the sum of the Agency Contribution plus the Homebuyer Contribution shall be the <br />denominator of a fraction that equals a percentage that is the Variable Applicable Factor (subject <br />to Section (7(b)(i)). <br />Variable Applicable Factor = Agency Contribution <br />Agency Contribution + Homebuyer Contribution <br />For example, if the Agency Contribution equals $30,000 and the Homebuyer <br />Contribution equals $250,000, the Variable Applicable Factor would equal 10.7% ($30,000 <br />divided by the sum of $30,000 plus $250,000). <br />10.7% (Variable Applicable Factor) = $30,000 (Agency Contribution) <br />$38,000 (Agency Contribution) + $250,000 (Homebuyer <br />Contribution) = ($280,080) <br />(i) The "Agency Contribution" is the sum of the following amounts <br />contributed by the Agency to the purchase price of the Property (i) principal amount of the <br />Homebuyer Assistance Loan, i.e., the Affordable Housing Cost Subsidy (as hereinafter defined); <br />and (ii) the principal amount(s) of any other loan(s) or subsidy(ies) provided by the Agency. <br />(ii) The "Homebuyer Contribution" is the sum of the following <br />amounts contributed by the Homebuyer to the purchase price of the Property: (i) the principal <br />amount of the First Lien loan; (ii) the Homebuyer's cash down payment plus the Homebuyer's <br />portion of closing costs; and (iii) the original principal amount of loans(s) or other subsidy(ies) <br />EXHIBIT B-3 TO ATTACHMENT NO. I 1 <br />Promissory Note <br />DOCSOG 1400573v 14/200272-0001