NONN, MICHAEL L. - Laserfiche WebLink

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 June 5 , 2001 . 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 the Residence of any kind does not comply with the provisions of the Restrictive Covenants, Resale Restrictions and Option to Designate Eligible Purchasers Agreement executed between the Borrower and the City and dated the same date as this Note. 3.5 Waiver; Binding. Notice of dishonor or protest is hereby waived by all makers, sureties, guarantors and endorsers of this Note. This Note shall be joint and several obligations of all makers, sureties, guarantors and endorsers, and shall be binding upon them and their successors and assigns. 3.6 Notice. Any notice required under this Note shall be given by mailing such notice by certified mail to the addresses below: Address of City: Address of Borrower: City of Pleasanton Michael L. Nonn Housing Division 4801 Fair Street 123 Main Street Pleasanton, CA 94566 Pleasanton, CA 94566 -0802 -2-