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6. Payment of interest Subsidy <br /> <br /> To facilitate the payment of the Interest Subsidy due from City, <br />City has elected to deposit its Housing and Community Development <br />funds with Bank in an interest bearing account and shall maintain <br />sufficient funds throughout the term of this agreement to meet its <br />subsidy payment obligations. Bank is authorized to debit City's <br />account the interest subsidy or subsidies due on loans funded from <br />time to time. <br /> <br />7. Collection of Funds <br /> <br /> The Bank shall collect all monthly payments made on account <br /> <br />of loans originated under thia loan program. There shall be no <br />additional charge to the borrower or the Locality for servicing <br />of loans except charges to the borrower resulting from late payments, <br />defaults and/or foreclosures. The Federal Government and2or Bank <br />or their designees are not barred by this provision from collecting <br />amounts from the borrower which represent a loss of principal, interest <br />and/or administrative or legal costs resulting from a foreclosed loan. <br /> <br />8. Delinquency and Foreclosure <br /> <br /> The Bank shall forward to the Locality a copy of defaults and <br />foreclosure or proposed foreclosure proceedings. The Locality <br />shall have the option to cure any default of the borrower. The report <br />by the Bank to the Locality of loan delinquencies shall be made at <br />least once a month unless the Bank finds that the number of delin- <br />quent loans is too small to justify such reporting or the Locality <br />elects to waive such reporting. <br /> <br />/// <br /> -5- <br /> <br /> <br />