JIMENEZ, IGNACIO AND MARIA G. - Laserfiche WebLink

and correct at the time it was given to the City and it remains true and correct on the date this Note is executed. 3.0 Borrower is Required to Make Monthly Principal and Interest Payments to Repay the City for this Loan. Principal and interest payments shall be fully amortized on a simple interest schedule over a period of fifteen (15) years with principal and interest payments and interest accruals commencing sixty (60) months after the date of this note. The outstanding principal balance of this Note may be paid in full at any time without any prepayment penalty. The annual interest rate shall be $ 4.41% which is seventy -five (75) percent of the interest rate of the Borrower's first mortgage. The City will send the Borrower a written notice of the monthly principal and interest due, no later than ninety (90) days prior to the date monthly principal and interest payments are scheduled to begin. Failure to send written notice shall not eliminate the requirement to pay interest and principal as stated above. 3.1 Payments and Late Charges. Any principal and/or interest payment due shall be made on the first day of each month and shall continue until the principal and interest is fully paid. Any partial payment will be made first to interest accrued and then the outstanding principal balance. Borrower shall pay the City a late charge of five percent (5 %) of the monthly installment not received by the City within fifteen 15 days after the payment is due. 3.2 Transfer of Property. In the event the property is transferred to an Eligible Purchaser as set forth in the Restrictive Covenants, Borrower shall pay the City the full outstanding principal and interest of this Note through an escrow account established to carry out the transfer. 3.3 Default. If any monthly payment or a required payment of principal and interest under this Note is not paid when due and remains unpaid for a period of three months, the entire principal amount outstanding, any interest due and any other amounts described in this Note, shall at once become due and payable to the City. Failure to make payment shall place the Borrower at default in accordance with the provisions as outlined in section 21 of the PHAP Deed of Trust dated January 21, 2003 . If suit is brought to collect on this Note, the City shall be entitled to collect all reasonable costs and expenses of the legal action including, but not limited to reasonable attorney's fees. 3.4 Loan Non - Assumable. Borrower(s) acknowledges that this Note is given in connection with the purchase of the Residence as part of a program of the City to assist in the purchase of homes by low and moderate income persons. Consequently, this Note is not automatically assumable, but is subject to Section 711.5 of the California Civil Code which allows the City to accelerate all amounts due under this Note if any subsequent sale or transfer of Page 2 of 4