Appendix IV to Subpart B of Part 904 - Promissory Note for Payment upon Resale by Homebuyer at Profit
24:4.1.3.1.4.2.5.23.5 : Appendix IV
Appendix IV to Subpart B of Part 904 - Promissory Note for Payment
upon Resale by Homebuyer at Profit (Subpart B) FOR VALUE RECEIVED,
(Homeowner) promises to pay to (Authority) or order, the principal
sum of __________ 1 Dollars ($____), without interest, on the date
of resale by the Homeowner of the property conveyed by the
Authority to the Homeowner.
1 Amount determined in accordance with section 19 of the
Homebuyers Ownership Opportunity Agreement.
Such principal sum shall be reduced automatically by 20 percent
of the initial amount at the end of each year of such residency, as
a Homeowner, and this note shall terminate at the end of five years
of such residency, as determined by the Authority; Provided,
however, that the amount payable under this note shall in no event
be more than the net profit on the resale, that is, the amount by
which the resale price exceeds the sum of (1) the Homeowner's
purchase price, (2) the costs incidental to his acquisition of
ownership, (3) the costs of the resale, including commissions and
mortgage prepayment penalties, if any, and (4) the increase in
value of the Home, determined by appraisal, due to improvements
paid for by the Homeowner whether as a Homebuyer (with funds from
sources other than his Earned Home Payments Account or his
Nonroutine Maintenance Reserve) or as a Homeowner.
If the Homeowner shall pay this note at the time and in the
manner set forth above, or if, by its provisions, the amount of
this note shall be zero, then the note shall terminate and the
Authority shall, within thirty (30) days after written demand
therefor by the Homeowner, execute a release and satisfaction of
this note. The Homeowner hereby waives the benefits of all statutes
or laws which require the earlier execution or delivery of such
release and satisfaction by the Authority.
Presentment, protest, and notice are hereby waived.
Dated ____________, 19__ Local Housing Authority By:
__________(Homeowner) __________ (Homeowner's Spouse)