HomeMy WebLinkAboutResolution 17-EDA-302RESOLUTION 8879
RESOLUTION 17 -EDA -302
CITY OF MOUNDS VIEW AND THE
MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF RAMSEY
STATE OF MYNNESOTA
JOINT RESOLUTION APPROVING A LOAN ORIGINATION AND HOME ENERGY
SQUAD ENHANCED VISIT AGREEMENT BETWEEN THE ECONOMIC
DEVELOPMENT AUTHORITY AND THE CENTER
FOR ENERGY AND ENVIRONMENT
WHEREAS„ the City of Mounds View (the "City") is a municipal corporation and
political subdivision duly organized and existing under the Constitution and laws of the State of
Minnesota; and,
WHEREAS, the Mounds View Economic Development Authority (the "EDA") is a
public body corporate and politic under the laws of the state of Minnesota; and,
WHEREAS, the EDA has also been granted the statutory powers of a Housing and
Redevelopment Authority pursuant to Minnesota Statues, section 469.091 subd. 1; and,
WHEREAS, the EDA currently operates a housing loan program (the "Loan Program")
pursuant to its authority under state law; and,
WHEREAS, the EDA currently has an agreement with the Greater Metropolitan
Housing Corporation (the "Corporation") whereby the Corporation acts as the principal servicer
of the EDA's Loan Program; and,
WHEREAS, the EDA and the Corporation have agreed that the Corporation will no
longer act as a servicer of the EDA's Loan Program after December 31, 2017; and,
WHEREAS, the EDA desires to engage the services of the Center for Energy and
Environment ("CEE") to act as the principal servicer of the Loan Program pursuant to the terms
of the loan origination agreement (the "Origination Agreement") attached hereto as Exhibit A;
and,
WHEREAS, the EDA further desires to engage the services of CEE to conduct home
energy squad enhanced visits ("Energy Visits") as requested by residents of the City, pursuant to
the terms of the agreement to perform home energy squad enhanced visits (the "Energy Visits
5120360 MU20548
Agreement"), a copy of which is attached hereto as Exhibit B, which agreements shall be
referred to collectively herein as the "Agreements"; and,
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Mounds
View and the Board of the Mounds View Economic Development Authority that the recitals and
exhibits, if any, set forth in this Resolution are incorporated into an& made a part of this Resolution.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council of the
City of Mounds View and the Board of the Mounds View Economic Development Authority do
hereby approve the Agreements, subject to modifications approved by the City Attorney that do
not materially alter the City's and the EDA's rights and obligations under Agreements, and that
are further approved by the City's Mayor and Interim City Administrator and EDA's President
and Interim Executive Director, which approvals shall be conclusively evidenced by execution of
the Agreements.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that City and EDA staff are
hereby authorized to undertake any actions necessary to allow the City and EDA to enter into the
Agreements.
NOW, THEREFORE, BE IT FINALLY RESOLVED, that the City Council of the
City of Mounds View and the Board of the Mounds View Economic Development Authority
hereby authorize City staff and City consultants to develop any necessary documents to
effectuate such Agreements, and the Mayor and Interim City Administrator and the President and
Interim Executive Director, respectively, are duly authorized to execute any further agreements
which are necessary, in the opinion of the City Attorney, to carry out this transaction.
Adopted this eleventh day of December, 2017.
CITY OF MOUNDS VIEW
By: Ab—WAZ
Carol A. Mueller, Mayor
ATTEST:
By:
Ny Zil d, Interim City
A inis ator
(s -al)
512036vl W20548
ATTEST:
(seal)
5120360 NW20548
MOUNDS VIEW ECONOMIC
DEVELOPMENT AUTHORITY
By:
Carol A. Mueller, President
By:
Nyle ikmuj , Interim Executive
Dir ctor
EXHIBIT A
Origination Agreement
[TO BE ADDED]
512036v1 MU20548
A-1
LOAN ORIGINATION AGREEMENT
This LOAN ORIGINATION AGREEMENT ("Agreement") is made by and between the ECONOMIC
DEVELOPMENT AUTHORITY in and for the City of Mounds View, with offices at 2401 Mounds View Blvd,
Mounds View, MN 55112 ("Authority"), and CENTER FOR ENERGY AND ENVIRONMENT, with offices at
212 3`a Avenue North, Suite 560, Minneapolis, Minnesota 55401 ("CEE").
RECITALS
A. The Authority has a need for certain professional services and desires to retain -CEE to
provide said services, all subject to the terms and conditions contained in this Agreement.
B, . CEE is qualified to provide the desired professional services and desires to provide said
services for the Authority, all subject to the terms and conditions contained in this
Agreement.
NOW, THEREFORE, In consideration of the foregoing and the mutual promises contained in this
Agreement, the parties agree as follows:
1. Services/Scope of Work
1.10EE shall, as directed by the Authority, develop and deliver the City of Mounds View Loan
Programs (hereinafter the "Program") which are more fully described in Exhibit A, attached hereto.
All activities delivered under the Program shall be coordinated with the Authority's designated•
representative, who shall be the Finance Director, Mark Beer, or the Business Development
Coordinator, Brian Beeman.
The exclusive source of funding for the Program Is the Authority.
2. Compensation
2.1 The Authority shall compensate CEE for services provided under thin Agreement
according to the following schedule and as Is more fully described in Exhibit B attached hereto:
Loan Set -Up Fee
$1,500.00
The Authority shall pay CEE a one time loan set-up fee. This shall compensate CEE for time and
labor to create the loan program.
Loan Origination Fee
$550,00
The Authority shall pay CEE an Origination Fee for each loan closed using the Program. The
Origination Fee shall compensate CEE for assisting borrowers with loan applications,
preparation of loan documents, loan closings, ,and other direct costs of processing loans
pursuant to the Program. Mortgage filing fees, Credit reports, flood insurance, title work, anda
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY In and for the CITY OF MOUNDS VIEW and CENTERFOR ENERGY
AND ENVIRONMENT #2606 - page 1
51 f5610 AMB MU20548
1% origination fee shall be paid directly by the borrower. CEE shall provide the Authority with
a copy of all closing documents, Including the 'loan note and mortgage, as documentary
evidence of all loan closings.
Post Installation Inspection Fee (PII) and Emergency Deferred Loan Inspection $100.00
The Authority shall pay CEE a fee for each post-installatlon Inspection ("PII") and emergency
deferred loan Inspection completed. The PH Inspection shall be performed by CEE whenever
the project does not require a building permit to verify the work was completed. The
emergency deferred loan inspection shall be required to determine project eligibility for the
emergency deferred loan program.
The Authority shall compensate CEG only for services completed.
Upon request, CEE will provide marketing services for the following fees:
CEE Labor
$65
Hourly rates are Inclusive of all overhead expenses and will be charged only for hours directly,
related to marketing. CEE will be reimbursed by the Authority for any non -labor, out-of-pocket
expenses, relating to these services on a dollar -for -dollar basis with no mark-up.
2.2 CEE shall Invoice the Authority not more than two times each month for the principal of loans
and administrative fees. The Authority shall pay CEE within 20 days of receipt of the Invoice.
3. Authority's Obligations
3.1 If requested by CEE, the Authority shall make reasonable efforts to respond promptly to
requests from CEE for information and approvals regarding the services to be provided
under this Agreement.
3.2 If requested by CEE, the Authority shall make reasonable efforts to obtain Information and
or permission for access from clients•which may be necessary for CEE to provide the
services under thisAgreement.
3.3 The Authority shall provide sufficient funding to fund eligible Authority -funded loans, The
Authority shall determine the amount of funds allocated to the Program.
3.4 The Authority shall establish eligibility for the Program and shall provide these criteria In
writing to CEE prior to commencement of any marketing efforts.
3.5 The Authority shall make reasonable efforts to respond. promptly to requests from CEE for
information and approvals regarding the services to be provided under this Agreement.
ECONOMIC DEVELOPMENT AUTHORITY In and for the CITY OF MOUNDS VIEW and CENTER FOR ENERGY
#2606 Page 2
41
4. CEE's Obligations
4.1 CEE shall use Its best efforts to provide services under this Agreement in a professional
manner consistent with the care and skill used by reputable members of CEE's profession.
4,2 CEE, and all of its employees or agents,'shall comply with all statutes, ordinances, rules,
regulations, and other laws applicable to the provision of services under this Agreement.
4.3 CEE shall secure'all permits and licenses required for performance of the services under this
Agreement,
4.4 CEE shall not engage' In''discriminatory employment practices against any employee 'or
applicant for employment and shall in all respects comply with all federal, state, and local
'laws, regulations and orders, Including without limitation, Chapter 363 of the Minnesota
Statutes, as amended from time to time, Failure to comply with the provisions hereof shall be
deemed a material default underthis Agreement.
5. Term and Termination
5.1 Unless earlier terminated as provided In the following paragraphs, this Agreement shall
become effective on January 1, 2018, and continue through December 31, 2018. Thereafter,
the Agreement shall automatically renew for successive one (1) year periods, unless CEE or
the Authority provides written notice of non -renewal to the other party at least sixty (60) days
before the end of the current term.
5,2 This Agreement may be terminated by either party, without cause, immediately upon written
notice to the other party. In the event that this Agreement is terminated by CEE prior to the
expiration of the term set forth in paragraph 5.1, the Authority shall compensate CEE for all
service's delivered up the date of termination and CEE shall provide the Authority with such
information as the Authority may request regarding the status of the Program.
53 Each party's respective ob(igatlons under sections 7 and 8 of this Agreement shall survive any
termination exercised pursuant to this section.
b. Insurance
6.1 During the term of this Agreement, CEE will obtain and at all times maintain insurance in
the amounts, at a minimum, listed below:
General Liability $2,000,000
Aggregate Limit
Automobile Liability $1,000,000
Combined Single Limit
Excess Liability $1,000,000
Aggregate Limit
Workers Compensation
Statutory Limits
CONTRACT between ECONOMIC DEVELOPMENTAUTHORITY In and for the CITY OF MOUNDS VIEW and CENTER FOR ENERGY
AND ENVIRONMENT #2606 Page 3
511563v2 AMB MU205--48
7, Liability and Indemnification
7,1 CEE represents that the services to be provided under this Agreement are reasonable In
scope and that CEE has the experience and ability to provide such services,
7.2 CEE warrants that any services provided hereunder shall be done In a professional and
workmanlike manner:
7.3 CEE shall indemnify, defend, and hold harmless the Authority and its officers, directors,
employees, and agents from and against any and all claims, damages, losses, injuries, and
expenses (including attorneys' fees and damages for death, personal Injury and property
damage) which. Authority may incur as a result of any act or omission by CEE in providing
services under this Agreement.
7.4 The Authority shall Indemnify, defend, and hold harmless CEE and Its officers, directors,
.employees, and agents from and against any and all clgims, damages, losses, injuries, and
expenses (including attorneys' fees and damages for death, personal Injury and property
damage) which CEE may Incur as a result of any act or omission by Authority in discharging
Its duties under this Agreement,
8. Confidentiality
Unless otherwise agreed by Authority in writing, CEE shall maintain in confidence and not disclose
to any third party any information obtained regarding the Authority and/or any of Authority's
clients for which CEE Is providing services; provided, however, that this obligation to maintain
confidentiality shall not apply to:
a) Information In the public domain at the time of disclosure;
b) Information which'becomes part of the public domain after disclosure through no fault
of CEE; or
c) Information which CEE can demonstrate was known by It prior to the date of this
Agreement.
Notwithstanding the foregoing, CEE shall be entitled to disclose the documents or client
Information covered by this paragraph to governmental authorities to the extent CEE reasonably„
believes It has a legal obligation to make such disclosures and to the extent CEE reasonably
deems to be necessary; provided, however, that if CEE believes that any such disclosure is
required by law, It shall provide advance notice to the Authority to provide the Authority with a
reasonable opportunity to attempt to obtain an injunction or other protective order preventing.
such disclosure,
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY In and for the CITY OF MOUNDS VIEW and CENTER FOR ENERGY
AND ENVIRONMENT 52606 : Page 4
$11563V2 AMB MU205-48
Notwithstanding any provision contained herein, CEE shall be subject .to the provisions of the
Minnesota Government Data Practices Act, Minnesota'Statues, Chapter 13, as provided In
Minnesota Statutes, Section 13.05, subd. 6, with respect to the administration of this Agreement
and all data related thereto.
9. Relationship of Parties
CEE will provide services as an independent contractor under this Agreement, Neither CEE,
nor any of its employees or agents, shall be considered employees of the Authority for any
purpose, and neither shall CEE be eligible for any compensation or benefits which the
Authority may provide to its employees from time to time. CEE shall be solely'responsible for
all employment and other taxes applicable to providing services hereunder, and the '
Authority will not withliold any taxes or contributions from the compensation payable to CEE
under this Agreement.
10. Notices
All notices, requests, demands, and other communications required to be given in writing
under this Agreement shall be given -to the other party In person or by mail as provided in
this section. If delivered personally, notice shall be deemed to have been duly given on the
date of delivery. If delivered by mall, such notice shall be sent via first class U,S: mall,
postage prepaid, to the address set forth at the beginning of .this Agreement or such other
address as a party may otherwise request by written notice, and notice shall be deemed duly
given three (3) business days after malling.
11. Assignment
This Agreement shall be.binding upon and Inure to the benefit of the parties and their
respective heirs, successors, and assigns; provided, however, that neither party shall assign
or transfer in any mann@r, this Agreement or any portion hereof without the prior written
consent of the other party, and any attempt to assign or transfer without prior written
consent shall be void and of no effect,
12. Governing Law
This Agreement shall be governed by and construed in accordance with'th'e laws of the State
of Minnesota. Any disputes arising under this Agreement shall be venued In the Ramsey
County district courts.
13, Miscellaneous
13.1 Headings and captions used in this Agreement are for convenience only and shall not affect
the meaning of this Agreement.,
CONTRACT between ECONOMIC DEVELOPMENT AUTH.ORIfY In and for the CITY OF MOUNDS VIEW and CENTER FOR ENERGY
AND ENVIRONMENT #2606 Page 5
511563v2 AMB MU205-0
13.2 This Agreement contains the entire agreement of the parties and supersedes all prior
agreements, discussions, and representations, written or oral, concerning the subject
matter hereof.
13.3 No waiver by the Authority of any term or condition of this Agreement or any document
referred to herein, whether by conduct or otherwise, shall be, construed as a waiver or
release of any other term or condition of this Agreement.
13.4 This Agreement may only be amended In a written agreement signed by both parties.
13.5 Except as expressly set forth in section 7 herein, the rights and benefits under this
Agreement shall inure solely to the benefit of the Authority and CEE, and this Agreement
shall not be construed to give any rights, benefits, or causes of action to any third party.
13,6 The invalidity or partial Invalidity of any provision of this Agreement shall not Invalidate the
remaining provisions, and the remainder shall be construed as of the Invalidated portion'
shall have never been a part of this Agreement.
13.7 CEE shall comply with the provisions of Minnesota Statutes Chapter 13 (Government Data
Practices) that are applicable to the Authority and shall not disseminate any information
concerning loan requests of the borrowers without the prior written approval of the
Authority.
13,8 This Agreement may be signed in any number of counterparts, each of which shall be
deemed an original and one and the same instrument.
[SIGNATURE PAGE FOLLOWS]
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY In and ror the CITY OF MOUNDS VIEW and CENTER FOR ENERGY
AND ENVIRONMENT X2606 Page 6
511563v2 AMB MD205.48
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above,
ECONOMIC DEVELOPMENT AUTHORITY
In and For the City of Minnetonka
By: 6M &L y Its: Interim City Administrator/Executive EDA Director
Date: vIEP /I' -//—
CENTER
/-//-^
CENTER FOR ENERGY & ENVIRONMENT
Date: Ids I fI 1 7 Tax ID # 41.1647799
CEE #2606
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY In and for the CITY OF MOUNDS VIEW and CENTER FOR ENERGY
AND ENVIRONMENT #2606 page 7
511563V2 AMB 140205-08
EXHIBIT A
PROGRAM GUIDELINES
This document includes guidelines for the
MOUNDS VIEW REVOLVING & EMERGENCY LOAN PROGRAM
Exhibit A Page 1
Agreement between the City of Mounds View and Center for Energy and Environment
MOUNDS VIEW LOAN PROGRAM GUIDELINES
The City of Mounds View EDA is making funds available for homeowners to make improvements to their
properties. The Mounds View Loan Program Is designed to supplement existing loan programs available
from MHFA, CEE, private lenders and other housing resources. This program is not intended to be the
sole source of improvement funds available to the City. Center for Energy and Environment shall serve
as the administrator for the Mounds View Loan Program and will secure the most beneficial financing
based on the borrower's needs independent of the funding source.
Interest Rate: 3% for households with income less than or equal to 80% of HUD Area Median Income
4% for households with income greater than 80% of HUD Area Median Income
***Income shall be determined by projected income for the next year and is based on household size.
Amortization Type: Amortizing. Closed-end (Monthly Payments Required)
Loan Amount: Minimum of $2,000 and Maximum of $15,000.
Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the
size of the loan and the borrower's ability to repay the loan. The minimum term is 1 year; the maximum
term will be 10 years.
Eligible Properties: 1-4 unit owner -occupied properties located within the geographical boundaries of
the City of Mounds View. Townhomes and Condominiums are eligible.
Ineligible Properties: Dwellings with more than four units, cooperatives, manufactured homes, time
shares, properties held in the name of a trust and properties used for commercial purposes.
Ellalble Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social
security number, Including: U,S. Citizens, Permanent Resident Aliens, Non -Permanent Resident Aliens,
TAX IDENTIFICATION NUMBERS (]TIN) ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non -Occupant Co -Borrowers,
and Properties held in the name of a trust or business.
Ownership/Occupancy: Owner- occupied only.
EXhIbItA Page 2
Agreement between the City of Mounds View and Center for Energy and Environment
Loan -to -Value Ratio: The ratio of all loans secured by the property, including the new loan, should
not exceed 110% of the property value. Half of the improvement value maybe added to the initial
property value.
Income Limit: There is no maximum income limit
Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt
to income ratio in excess of 50% will be ineligible to receive financing.
Credit Requirements: 1) All mortgage payments must be current and reflect no 30 day late payments
history in the past 12 month period (without reasonable explanation) 2) All real estate taxes must be
current. 3) No outstanding judgements or collections. A) Bankruptcy must have been discharged for at
least 18 months prior to loan closing. 5) The redemption period on prior foreclosures must have
occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60 -day
late payments on credit report. Any 60 day late requires a documented explanation and reasonable
reasons; medical, unemployment, divorce. 7) No defaulted government loans.
Multiole Loans per Property: More than one loan per property is allowed, however, the outstanding
balance(s) cannot exceed $15,000.
Eligible Use of Funds: Loans may be used to finance most interior and exterior improvements that
improve the basic livability of the property. Garages, decks, porches, retaining walls, landscaping and
fences can be repaired, replaced or built as new construction. Contractors must be properly licensed
and permits must be obtained when required.
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment,
saunas, whirlpools, etc.), furniture, non -permanent appliances (unless part of a full kitchen remodel),
and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT
allowed.
Bids: 2 bids are required when the work from any one contractor exceeds $5,000. All contractors must
be properly licensed. Only 1 bid/material list is required for sweat equity projects.
Sweat Equity/ Homeowner Labor: Work maybe performed by property owners on a "sweat equity"
basis. Loan funds may be used only for the purchase of materials, Loan funds cannot be used to rent
tools/ equipment or compensate for labor.
Post Installation Inspection: Permits must be obtained and signed off by a City inspector where
required; when not required, a post Installation Inspection will be performed by CEE to ensure the work
has been completed before any funds will be released.
Loan Security: All loans will be secured with a mortgage in favor of the City of Mounds View. Borrower
will pay all applicable title and filing fees, which may be financed in the loan amount.
Borrower Fees: Borrower will be responsible for a 1% origination Fee, mortgage filing and service fees,
flood certificate and credit report fees all which may be financed in the loan amount.
Exhibit A Page 3
Agreement between the City of Mounds View and Center for Energy and Environment
Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans
based on a credit report, income verification and other criteria as deemed necessary through CEE's
underwriting guidelines. CEE's decision shall be final. Appeals can be made to the City of Mounds View.
Work Completion: All work must be completed within 120 days of the loan closing. However, when
warranted, CEE may authorize exceptions on a case by case basis.
Loan Security: All loans will be secured with a mortgage in favor of the City of Mounds View EDA
Interest Rate: 3% for households with income less than or equal to 80% of HUD Area Median Income
4% for households with income greater than 80% of HUD Area Median Income
***Income shall be determined by projected income for the next 12 months and is based on
household size.
Amortization Type: Amortizing. Closed-end (Monthly Payments Required)
Loan Amount: Minimum of $2,000 and Maximum of $10,000.
Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the
size of the loan and the borrower's ability to repay the loan. The minimum term is 1 year, the maximum
term will be 7 years.
Eligible Properties: Residential mobile homes located within the geographical boundaries of the City of
Mounds View.
Ineligible Properties: Non owner -occupied , cooperatives, time shares, properties held in the name of a
trust and properties used for commercial purposes.
Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social
security number, Including: U.S, Citizens, Permanent Resident Aliens, Non -Permanent Resident Aliens.
TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: - Foreign Nationals, Non -Occupant Co -Borrowers,
and Properties held in the name of a trust or business.
ownership/Occupancy: Owner- occupied only.
Loan - to - Value Ratio: Not applicable
Exhibit A Page 4
Agreement between the City of Mounds View and Center for Energy and Environment
Income Limit: There is no maximum income limit.
Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt
to income ratio in excess of 50% will be ineligible to receive financing.
Credit Reauirements: 1) All mortgage payments must be current and reflect no 30 day late payments
history in the past 12 month period (without reasonable explanation) 2) All real estate taxes must be
current. 3) No outstanding judgements or collections. 4) Bankruptcy must have been discharged for at
least 18 months prior to loan closing. 5) The redemption period on prior foreclosures must have
occurred at least 18 months prior to the loan application date. 6) Generally, no more than two 60 -day
late payments on credit report. Any 60 day late requires a documented explanation and reasonable
reasons; medical, unemployment, divorce. 7) No defaulted government loans.
Multiple Loans Per Property: More than one loan per property is allowed, however, the outstanding
balance(s) cannot exceed $10,000.
Eligible Use of Funds: Loans may be used to finance most interior and exterior improvements that
improve the basic livability of the property. Garages, decks, porches, retaining walls, landscaping and
fences can be repaired, replaced or built as new construction. Contractors must be properly licensed
and permits must be obtained when required.
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment,
saunas, whirlpools, etc,), furniture, non -permanent appliances (unless part of a full kitchen remodel),
and funds for working capital, debt service, homeowner labor or refinancing existing debts are NOT
allowed.
Bids: 2 bids are required when the work from any one contractor exceeds $5,000. All contractors must
be properly licensed. Only 1 bid/material list is required for sweat equity projects.
Sweat Eauity / Homeowner Labor: Work may be performed by property owners on a "sweat equity"
basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to rent
tools/ equipment or compensate for labor.
Post Installation Inspection: Permits must be obtained and signed off by a City Inspector where
required; when not required, a post Installation inspection will be performed by CEE to ensure the work
has been completed before any funds will be released.
Loan Security: All loans will be secured by a lien in favor of the City of Mounds View, Borrower will pay
all applicable title and filing fees.
Borrower Fees: Borrower will he responsible for a 1% origination Fee, lien filing and service fees, flood
certificate and credit report fees all which may be financed in the loan amount.
Exhibit A Page 5
Agreement between the City of Mounds View and Center for Energy and Environment
Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans
based on a credit report, income verification and other criteria as deemed necessary through CEE's
underwriting guidelines. CEE's decision shall be final. Appeals can be made to the City of Mounds View.
Work Completion: All work must be completed within 120 days of the loan closing. However, when
warranted, CEE may authorize exceptions on a case by case basis.
Loan Security: All loans will be secured with a lien on the title in favor of the City of Mounds View EDA
The Intent of the Mounds View Emergency Repair Deferred Loan Program is to provide assistance to
property owners in the City of Mounds View who face emergency home repairs and cannot qualify for
other housing related programs to remedy the situation.
Interest Rate: 0%
Loan Amount: Minimum loan is $1,000. Maximum loan is $5,000 within any time period.
Loan term: Loan will be deferred until the borrower sells or transfers title of the property, at which time
100% of the loan is due.
Eligible Properties: Owner -occupied properties with up to 4 dwelling units located within the
boundaries of the City of Mounds View. Condominiums, mobile homes and townhomes are eligible.
Ineligible Properties: Dwellings that are more than 4 units (these would be considered apartment and
hence commercial properties), cooperatives, time shares, and properties used for commercial purposes.
Eligible Borrowers: Owners of 1-4 unit properties within the City of Mounds View who meet the
program guideline criteria. The borrower must not be eligible for any other financing administered by
CEE in order to obtain an Emergency Program loan.
Ineligible Borrowers: Include but are not limited to: nonresident owners, non -occupant co -borrowers,
properties held in the name of a trust.
Ownership / Occupancy: Only owner -occupied. Contract for Deeds are eligible.
Loan- to -Value Ratio: Not applicable
Income Limit: Household income must be less than 80% of HUD Area Median Income based on
projected income over the next year.
Debt -to -Income Ratio: Notapplicable
Exhibit A Page 6
Agreement between the City of Mounds View and Centerfor Energy and Environment
Multiple Loans per Property/Borrower: Multiple emergency loans on a property are allowed if the
balance Is within the overall maximum loan limit.
Eligible Improvements: An emergency is defined as an imminent condition that makes a house
uninhabitable, dangerous to the occupants, or is capable of causing severe health problems. Repairs
that will remedy such emergency repairs are eligible. Examples of eligible repairs include, but are not
limited to, water lines, sewer service, fire hazards, repair to exterior steps, railings, retaining walls, water
seepage into basement, structural problems, or replacement of a furnace or hot water heater.
Repairs that remedy code violations and those needed to address home repairs before they
significantly de -value the home and become much more serious problems, are also eligible
whether or not the city has issued a code violation. Examples of eligible repairs include, but are
not limited to, leakage around windows, rotting fascia, holes in siding, roof leakage, crumbling
brick or concrete and deteriorated retaining walls. CEE will determine eligibility of projects.
Ineligible Improvements: Work initiated prior to the loan being approved and closed. Personal
property items, including appliances, furniture, hot tubs, swimming pools, and other luxury items,
exterior plumbing (e.g. sprinkler systems), non -permanent landscaping fixtures (e.g. potted plants,
furniture, bird feeders), repairs to property used for business or trade purposes, refinancing existing
Indebtedness, and labor costs of borrowers and/or residents. CEE will refer to the VENA whenever
eligibility of an improvement project is questionable.
Bidding: Except when labor Is provided by the borrower, the borrower must provide a minimum of 1
bid for each improvement project under $5,000 and 2 bids for each project more than $5,000. All
contractors must be properly licensed. Permits must be obtained when required by City ordinance.
Sweat Equity: Not permitted
Property Inspection: Required. Eligible Improvements will be determined through an analysis of the
emergency condition of the property. A CEE staff member will perform the analysis to determine the
severity of the situation.
Post Installation Inspection: Properties are subject to a post installation inspection by a CEE staff
member when a permit is not required. Where a permit is required, the work must be signed -off by a
City inspector prior to release of funds.
Work Completion: All work must be completed within 30 days of loan closing. Extensions maybe
granted by CEE.
Borrower Fees: Borrower will be responsible for mortgage filing and service fees, flood certificate and
credit report fees all of which may be financed in the loan amount.
Underwriting Decision: CEE will review the application and submitted documentation for consideration
for other home improvement programs prior to considering the application for the Emergency Repair
Loan Program. CEE will approve or deny loans based on income verification and other criteria. This is a
last resort program. The borrower must not be eligible for any other financing administered by CEE in
order to obtain an Emergency Repair Deferred loan. CEE's decision shall be final.
Exhibit A Page 7
Agreement between the City of Mounds View and Center for Energy and Environment
Loan Security: All loans will be secured with a mortgage(lien for mobile homes) in favor of the City of
Mounds View EDA.
General Proeram Conditions
Application Processing_ Loans will be distributed on a first come first serve basis as borrowers qualify.
Applicants must provide a completed application package including the following in order to be
considered for funding.
➢ Completed and signed application form
➢ Proof of Income
➢ Bids or estimates for proposed projects
➢ Other miscellaneous documents loan officers may require.
Contractors/Permits: Contractors must be properly licensed to work in the City of Mounds View.
Permits must be obtained when required by city ordinance.
Proeram Costs: Loan origination, post installation inspection and remodeling advisor visit fees will be
paid out of the Program Budget. Loan program marketing efforts will be billed directly to the City of
Mounds View and is a separate expense should the City of Mounds View choose to commission CEE for
marketing support. Borrowers will pay all mortgage filing fees and related closing costs.
Total Proiect Cost: It is the borrower's responsibility to obtain the amount of funds necessary to finance
the entire cost of the work. In the event the final cost exceeds the original loan amount, the borrower
must obtain the additional funds and show verification of the additional funds in order to be approved
fortheloan.
Disbursement Process: Payment to the contractor (or owner In sweat equity situations) will be made
upon completion of work. An inspection will be performed by a City Inspector and/or CEE to verify the
completion of the work. The following Items must be received prior to final disbursement of funds:
• Final invoice or proposal from contractor (or materials list from supplier);
• Final inspection verification by a City Inspector (or CEE);
• Completion certificate(s) signed by borrower and contractor;
• Lien waiver for entire cost of work;
• Evidence of city permit (if required)
Exhibit A Page S
Agreement between the City of Mounds View and Center for Energy and Environment
EXHIBIT B
TOTAL PROGRAM BUDGET $75,000
MOUNDS VIEW REVOLVING LOAN PROGRAM BUDGET
A. Revolving Loan Program Budget Allocation (includes Origination Fees, Post Installation and
Emergency Deferred Inspections): $70,500
One-time loan set up fee $1,500
C. Home Energy Squad (HES) Service $3,000
Budget Notes:
1. Funds to be transferred between Budget Categories in this Exhibit that do not change the Total
Contract Amount must be approved in writing by the City of Mounds View EDA.
z. CEE shall submit monthly invoices to the City of Mounds View EDA for the loan principal and
administrative fees and quarterly invoices forthe aged delinquency reporting services.
3. Services performed by CEE will initially be funded from the Total Program Budget as stated
above and paid in accordance with the following schedule.
(a) Loan Origination Fee $550.00 per loan closed
(b) Post Installation & Emergency Inspection $100.00 per inspection
(c) Loan setup fee $1,500 (one time)
(d) HES visit $50 per visit
4. Loan Servicing
The City of Mounds View EDA will contract directly with a servicing company. The City of
Mounds View EDA shall establish a process where CEE receives copies of the monthly servicing
reports.
5. Marketing
Marketing efforts will be supported by CEE and marketing costs are not included in the
administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged
only for hours directly related to the labor of all program marketing. CEE will also be reimbursed
by the City of Mounds View for any non -labor, out-of-pocket expenses relating to these services
on a dollar -for -dollar basis.
Exhibit B Page 1
Agreement between the City of Mounds View and Center for Energy and Environment
EXHIBIT B
Agreement to Perform Home Energy Squad Enhanced Visits
[TO BE ADDED]
512036v1 NW205-48
B-1
AGREEMENT to Perform
Houle Energy Squad Enhanced Visits
In the City of Mounds View
This Agreement ("Agreement") is made by and between the Mounds View Economic Development Authority
(EDA), in and for the City of Mounds View, a public body corporate and politic and a political subdivision of the
state of Minnesota, with an office at 2401 Mounds View Boulevard Mounds View, MN 55112 and the Center for
Energy and Environment ("CEE"), with offices at 212 31^ Avenue North, Suite 560, Minneapolis, Minnesota 5540L
This Agreement is for the Center for Energy and Environment (CEE) to deliver Home Energy Squad Enhanced
visits to residents of the City of Mounds View In partnership with the Mounds View Economic Development
Authority (EDA).
PROGRAM SCOPPu
The propose of Home Energy Squad Enhanced visits is to promote energy conservation in residential propel -des.
Home Energy Squad Enhanced visits offer installs, diagnostic tests, and follow-up services, CEE will porform Home
Energy Squad Enhanced visits for $100 per visit, with the costs for each visit allocated as follows;
BUDGE
The City of Mounds View EDA is providing up to $3,000 for this program for 2018,
RLIGIELE PROPERTIES
Properties must be residential (fi•om 1-4 units) and located within the geographical'boundaries of Ore City of Mounds
View, Individual owners of condominiums or town homes are eligible for funding,
CRY TASKS
1. CoridirerHome L'iiergy Sgitad,Ealiauced Irisins. CEE will conduct Home Energy Squad Embanced visits to
help homeowners identify and Implement energy savings opportunities to their homes, The Enhanced visit
will include the direct install of energy-saving materials where possible, including high-ef8cionoy
showerheads, faucet aerators, door weather-stripping, a water heater blanket, programmable thermostats
and LED light bulbs„ In addition, it wilt Include a blower door test to check for air leaks, visual inspection
of insulation levels with use of infrared camera as weather permits, heating system and hot water heater
combustion safety tests, and it report to Ole homeowner on recommended energy upgrades (if resident is a
rentor, permission from the landlord may be required before doing these additional diagnostic services),
The co -pay and exact package of services are subject to change based on programmatic considerations,
Including CEE's agreement with utilities and other factors which are outside the scope of this Agreement,
CEE will notify the EDA iu virlihij,,prior to any changes taking effect, Such notice shall Include the
specific changes which are proposed to be made. CEE will lead a community-based marketing campaign
to promote the program. The EDA'sliall provide assistance in developing and implementing this campaign,
2, Providing Ali, Sealing and Iusuladon quotes. If air sealing and/or insulation are recommended at a home
Energy Squad Enhanced visit;: CEE may provide a quote to the resident that would be honored by
participating insulation contractors. CEE Is an mdependont'"third party.to any transaction between the
resident and the insulation contractor. Neither CEE nor the EDA receive any compensation from insulation
contractors, nor does CEE or CenterPolnt Eneigy accept any liability for any work performed by these
contractors.'Any agreement for work done by the contractors is solely between the contractor and the
resident.
511$61 v2 AMB b13205.48 _ CBE 02605
3. Polloiv-ap servlces and htseladou coWractor esslstance. If mqjor upgrades (air sealing, insulation and
furnace, or boiler replacement) are recommended at the visit, CEE will follow-up with homeowners
through email or by phone to encourage implementation When a quote is provided CEE has the ability to
schedule insulation work directly with a qualified conracto•'making it easier for homeowner to move
forward with moonnnendations, CEE will also provide contact information to program participants who
have follow-up questions after the ]ionic -visit.
PA7lMBN�
CEE shall submit regular invoices to the EDA for activity performed under this agreement. Invoices will be emailed
to Mark Bear and/or Brian Beaman, City of Mounds View Economic Development Authority, 2401 Mounds View,
MN 55112-1499, Each Invoice shall provide a detailed itemization of the work completed by CEE which
corresponds to the requested payment.
The EDA will reimburse CEE $50 per each completed visit, not to exceed an aggregate total $3,000 without further
authorization from the EDA.
CONTACTS
The following individuals shall be contacts for this program:
EDA CONTACTPERSON
Mark Boer
Finance Director
City of Mounds View
2401 Mounds View Boulevard
Mounds View, MN 55112.1499
Mark.beet'Qci.mounds-view.mn.us or 763.71.7,4011
CEE CONTACT PERSON
Stney Boots Camp, Center for Energy and Environment
Recruitment and Outreach Coordinator
sbootscamp@nmcee.o•g or 612=244-2429
TERM
Tho project shall run 11•om January 1, 2018 through December 31, 2019 and may be extended upon mutual
agreement by the parties.
In witness thereof, the parties have executed this work order as of the date written below.
CITY OF MOUNDS VIEW ECONOMIC
DEVELOPMENT AUTHORITY
By: elk�z
/Yi`G�or'
Date: / `2/'
Date_
CENTER FOR ENERGY AND ENVIRONMENT
EY:
Date: 1 ;,-1(? l t`1
TAX ID 111.1647799
5115614 AMB MU205.48 CEE 02505
Example Loan Document 1
City of Mounds View
DEFERRED NOTE
FOR VALUE RECEIVED, the undersigned (the "Borrower"), promises to pay to the order of the
Economic Development Authority in and for the City of Mounds View a public body corporate and politic and
political subdivision of the State of Minnesota (the "Lender"), or it assigns, the sum of
and No/100 Dollars ($ )
(the "Loan Funds") without interest. Said sum was made available to the Borrower to undertake eligible
improvements to the property at
(the "Residence") and legally described below.
1. The Loan Funds shall be repaid without interest. The entire unforgiven principal balance of the Loan
Funds shall be immediately due and payable upon the transfer, sale, assignment, or conveyance of the
Residence; or termination of the Residence as the Borrower's principal place of residence.
2 This note is secured by a Mortgage (the "Mortgage") in favor of the Lender of even date herewith.
Failure to repay the Loan Funds as required herein or to commence and complete rehabilitation
within 30 days of the date hereof; or default under any of the covenants in the Mortgage shall
constitute an event of default.
3. The Lender or its servicing agent may charge the Borrower for any check or authorized payment
withdrawal request that is returned unpaid due to insufficient funds or for any other reason.
4. Upon the occurrence of an event of default, the Lender shall mail notice to the Borrower specifying:
(i) the event of default; (ii) the action required to cure such event; and (iii) a date not less than thirty
(30) days from the date the notice is mailed to the Borrower by which date such default must be
cured.
5. If suit is instituted by Lender, its successors or assigns, to recover on this Note, the undersigned
agrees to pay all costs of such collection, including reasonable attorney's fees and court costs.
6. Demand, protest and notice of demand and protest are hereby waived and the undersigned waives, to
the extent authorized by law, any and all homestead and other exemption rights which otherwise
would apply to the debt evidenced by this Note.
7. This Note shall be governed by and construed in accordance with the laws of the State of Minnesota.
Page I of 2
CEE/Mau�View_DeRrred Nole/ 12-17
IN WITNESS WHEREOF, this Note has been duly executed by the undersigned, as of the
day and year above first written.
BORROWER(s):
LM
TIL and NMLSR ID
Loan Originator Company Name
Loan Originator Company NMLSR ID
Loan Originator Individual Name
(as name appears on NMLSR)
Loan Originator Individual NMLSR ID
(if applicable)
Page 2of2 CEE/M..,WWe M,R dNote/12-17
Example Loan Document 2
[Space Above This Line For Recording Data]
MORTGAGE
DEFINITIONS
Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11,
13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16.
(A) "Security Instrument" means this document, which is dated
together with all Riders to this document.
(B) "Borrower" is
Borrower is the mortgagor under this Security Instrument.
(C) "Lender" is The Economic Developement Authority In and For the City of Mounds View
Lender is a public body corporate and politic and political subdivision of the State of Minnesota
organized and existing under the laws of Minnesota
Lender's address is
2401 Mounds View Blvd Mounds View, MN 55112
Lender is the mortgagee under this Security Instrument.
(D) "Note" means the promissory note signed by Borrower and dated
The Note states that Borrower owes Tender
Dollars
(U.S. $ ) plus interest. Borrower has promised to pay this debt in regular Periodic
Payments and to pay the debt in full not later than
(E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property."
(F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due
under the Note, and all sums due under this Security Instrument, plus interest.
(G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are
to be executed by Borrower [check box as applicable]:
❑ Adjustable Rate Rider ❑ Condominium Rider ❑ Second Home Rider
❑ Balloon Rider ❑ Planned Unit Development Rider ❑ 1-4 Family Rider
❑ VA Rider 0 Biweekly Payment Rider 0 Other(s) [specify]
(J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft,
or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or
magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term
includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by
telephone, wire transfers, and automated clearinghouse transfers.
(K) "Escrow Items" means those items that are described in Section 3.
(L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any
third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or
destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in
lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property.
(M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan.
(N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note,
plus (ii) any amounts under Section 3 of this Security Instrument.
(0) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its
implementing regulation, Regulation X (12 C.F.R. Part 1024), as they might be amended from time to time, or any
additional or successor legislation or regulation that governs the same subject matter. As used in this Security
Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related
mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA.
(P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that
party has assumed Borrower's obligations under the Note and/or this Security Instrrunent.
TRANSFER OF RIGHTS IN THE PROPERTY
This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and
modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security
Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and
Lender's successors and assigns, with power of sale, the following described property
which has the address of
[Street]
Minnesota ("Property Address"):
[City] [Zip Code]
TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements,
appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be
covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property."
BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the
right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances
of record. Borrower warrants and will defend generally the title to the Property against all claims and demands,
subject to any encumbrances of record.
THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform
covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property.
Payments are deemed received by Lender when received at the location designated in the Note or at such
other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may
return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current.
Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any
rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not
obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of
its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied
funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable
period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds
will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or
claim which Borrower might have now or in the future against Lender shall relieve Borrower from making
payments due under the Note and this Security Instrument or performing the covenants and agreements secured by
this Security Instrument.
2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments.
accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note;
(b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic
Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second
to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note.
If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient
amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If
more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the
repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that
any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess
may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and
then as described in the Note.
Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the
Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the
Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and
assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the
Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance
required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by
Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of
Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan,
Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower,
and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices
of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender
waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's
obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing.
In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow
Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender
receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make
such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in
this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to
pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item,
Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under
Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any
time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all
Funds, and in such amounts, that are then required under this Section 3.
Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the
Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under
RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of
expenditures of future Escrow Items or otherwise in accordance with Applicable Law.
The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality,
or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan
Bank. Lender shall apply the Funds to pay the Escrow Items no later than the time specified under RESPA. Lender
shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying
the Escrow Items, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make
If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower
for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under
RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount
necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is
a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by
RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with
RESPA, but in no more than 12 monthly payments.
Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to
Borrower any Funds held by Lender.
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable
to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the
Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are
Escrow Items, Borrower shall pay them in the manner provided in Section 3.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless
Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to
Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or
defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the
enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c)
secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security
Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this
Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which
that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this
Section 4.
Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting
service used by Lender in connection with this Loan.
5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards
including, but not limited to,earthquakes and floods, for which Lender requires insurance. This insurance shall be
maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender
requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier
providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice,
which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan,
either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time
charge for flood zone determination and certification services and subsequent charges each time remappings or
similar changes occur which reasonably might affect such determination or certification. Borrower shall also be
responsible for the payment of any fees unposed by the Federal Emergency Management Agency in connection
with the review of any flood zone determination resulting from an objection by Borrower.
If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage,
at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount
of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's
equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater
or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so
obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts
disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security
Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable,
with such interest, upon notice from Lender to Borrower requesting payment.
All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right
to disapprove such policies, shall include a standard mortgage clause, and shall name Lender as mortgagee and/or as
an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires,
Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any
form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such
policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss
payee.
In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may
make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any
insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration
or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened.
During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender
Example Loan Document 2
[Space Above This Line For Recording Data]
MORTGAGE
DEFINITIONS
Words used in multiple sections of this document are defined below and other words are defined in Sections 3, 11,
13, 18, 20 and 21. Certain rules regarding the usage of words used in this document are also provided in Section 16.
(A) "Security Instrument" means this document, which is dated
together with all Riders to this document.
(B) "Borrower" is
Borrower is the mortgagor under this Security Instrument.
(C) "Lender" is The Economic Developement Authority In and For the City of Mounds View
Lender is a public body corporate and politic and political subdivision of the State of Minnesota
organized and existing under the laws of Minnesota
Lender's address is
2401 Mounds View Blvd Mounds View, MN 55112
Lender is the mortgagee under this Security Instrument.
(D) "Note" means the promissory note signed by Borrower and dated
The Note states that Borrower ewes Lender
Dollars
(U.S. $ ) plus interest. Borrower has promised to pay this debt in regular Periodic
Payments and to pay the debt in full not later than
(E) "Property" means the property that is described below under the heading "Transfer of Rights in the Property."
(F) "Loan" means the debt evidenced by the Note, plus interest, any prepayment charges and late charges due
under the Note, and all sums due under this Security Instrument, plus interest.
(G) "Riders" means all Riders to this Security Instrument that are executed by Borrower. The following Riders are
to be executed by Borrower [check box as applicable]:
❑ Adjustable Rate Rider
❑
Condominium Rider
❑
Second Home Rider
❑ Balloon Rider
❑
Planned Unit Development Rider
❑
1-4 Family Rider
❑ VA Rider
❑
Biweekly Payment Rider
❑
Other(s) [specify]_
(J) "Electronic Funds Transfer" means any transfer of funds, other than a transaction originated by check, draft,
or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, computer, or
magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account. Such term
includes, but is not limited to, point-of-sale transfers, automated teller machine transactions, transfers initiated by
telephone, wire transfers, and automated clearinghouse transfers.
(K) "Escrow Items" means those items that are described in Section 3.
(L) "Miscellaneous Proceeds" means any compensation, settlement, award of damages, or proceeds paid by any
third party (other than insurance proceeds paid under the coverages described in Section 5) for: (i) damage to, or
destruction of, the Property; (ii) condemnation or other taking of all or any part of the Property; (iii) conveyance in
lieu of condemnation; or (iv) misrepresentations of, or omissions as to, the value and/or condition of the Property.
(M) "Mortgage Insurance" means insurance protecting Lender against the nonpayment of, or default on, the Loan.
(N) "Periodic Payment" means the regularly scheduled amount due for (i) principal and interest under the Note,
plus (ii) any amounts under Section 3 of this Security Instrument.
(0) "RESPA" means the Real Estate Settlement Procedures Act (12 U.S.C. Section 2601 et seq.) and its
implementing regulation, Regulation X (12 C.F.R. Part 1024), as they might be amended from time to time, or any
additional or successor legislation or regulation that governs the same subject matter. As used in this Security
Instrument, "RESPA" refers to all requirements and restrictions that are imposed in regard to a "federally related
mortgage loan" even if the Loan does not qualify as a "federally related mortgage loan" under RESPA.
(P) "Successor in Interest of Borrower" means any party that has taken title to the Property, whether or not that
party has assumed Borrower's obligations under the Note and/or this Security Instrument.
TRANSFER OF RIGHTS IN THE PROPERTY
This Security Instrument secures to Lender: (i) the repayment of the Loan, and all renewals, extensions and
modifications of the Note; and (ii) the performance of Borrower's covenants and agreements under this Security
Instrument and the Note. For this purpose, Borrower does hereby mortgage, grant and convey to Lender and
Lender's successors and assigns, with power of sale, the following described property
which has the address of
[Street]
Minnesota ("Property Address"):
[City] [Zip Code]
TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements,
appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be
covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property."
BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and has the
right to mortgage, grant and convey the Property and that the Property is unencumbered, except for encumbrances
of record. Borrower warrants and will defend generally the title to the Property against all claims and demands,
subject to any encumbrances of record.
THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform
covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property.
Payments are deemed received by Lender when received at the location designated in the Note or at such
other location as may be designated by Lender in accordance with the notice provisions in Section 15. Lender may
return any payment or partial payment if the payment or partial payments are insufficient to bring the Loan current.
Lender may accept any payment or partial payment insufficient to bring the Loan current, without waiver of any
rights hereunder or prejudice to its rights to refuse such payment or partial payments in the future, but Lender is not
obligated to apply such payments at the time such payments are accepted. If each Periodic Payment is applied as of
its scheduled due date, then Lender need not pay interest on unapplied funds. Lender may hold such unapplied
funds until Borrower makes payment to bring the Loan current. If Borrower does not do so within a reasonable
period of time, Lender shall either apply such funds or return them to Borrower. If not applied earlier, such funds
will be applied to the outstanding principal balance under the Note immediately prior to foreclosure. No offset or
claim which Borrower might have now or in the future against Lender shall relieve Borrower from making
payments due under the Note and this Security Instrument or performing the covenants and agreements secured by
this Security Instrument.
2. Application of Payments or Proceeds. Except as otherwise described in this Section 2, all payments
accepted and applied by Lender shall be applied in the following order of priority: (a) interest due under the Note;
(b) principal due under the Note; (c) amounts due under Section 3. Such payments shall be applied to each Periodic
Payment in the order in which it became due. Any remaining amounts shall be applied first to late charges, second
to any other amounts due under this Security Instrument, and then to reduce the principal balance of the Note.
If Lender receives a payment from Borrower for a delinquent Periodic Payment which includes a sufficient
amount to pay any late charge due, the payment may be applied to the delinquent payment and the late charge. If
more than one Periodic Payment is outstanding, Lender may apply any payment received from Borrower to the
repayment of the Periodic Payments if, and to the extent that, each payment can be paid in full. To the extent that
any excess exists after the payment is applied to the full payment of one or more Periodic Payments, such excess
may be applied to any late charges due. Voluntary prepayments shall be applied first to any prepayment charges and
then as described in the Note.
Any application of payments, insurance proceeds, or Miscellaneous Proceeds to principal due under the
Note shall not extend or postpone the due date, or change the amount, of the Periodic Payments.
3. Funds for Escrow Items. Borrower shall pay to Lender on the day Periodic Payments are due under the
Note, until the Note is paid in full, a sum (the "Funds") to provide for payment of amounts due for: (a) taxes and
assessments and other items which can attain priority over this Security Instrument as a lien or encumbrance on the
Property; (b) leasehold payments or ground rents on the Property, if any; (c) premiums for any and all insurance
required by Lender under Section 5; and (d) Mortgage Insurance premiums, if any, or any sums payable by
Borrower to Lender in lieu of the payment of Mortgage Insurance premiums in accordance with the provisions of
Section 10. These items are called "Escrow Items." At origination or at any time during the term of the Loan,
Lender may require that Community Association Dues, Fees, and Assessments, if any, be escrowed by Borrower,
and such dues, fees and assessments shall be an Escrow Item. Borrower shall promptly furnish to Lender all notices
of amounts to be paid under this Section. Borrower shall pay Lender the Funds for Escrow Items unless Lender
waives Borrower's obligation to pay the Funds for any or all Escrow Items. Lender may waive Borrower's
obligation to pay to Lender Funds for any or all Escrow Items at any time. Any such waiver may only be in writing.
In the event of such waiver, Borrower shall pay directly, when and where payable, the amounts due for any Escrow
Items for which payment of Funds has been waived by Lender and, if Lender requires, shall furnish to Lender
receipts evidencing such payment within such time period as Lender may require. Borrower's obligation to make
such payments and to provide receipts shall for all purposes be deemed to be a covenant and agreement contained in
this Security Instrument, as the phrase "covenant and agreement" is used in Section 9. If Borrower is obligated to
pay Escrow Items directly, pursuant to a waiver, and Borrower fails to pay the amount due for an Escrow Item,
Lender may exercise its rights under Section 9 and pay such amount and Borrower shall then be obligated under
Section 9 to repay to Lender any such amount. Lender may revoke the waiver as to any or all Escrow Items at any
time by a notice given in accordance with Section 15 and, upon such revocation, Borrower shall pay to Lender all
Funds, and in such amounts, that are then required under this Section 3.
Lender may, at any time, collect and hold Funds in an amount (a) sufficient to permit Lender to apply the
Funds at the time specified under RESPA, and (b) not to exceed the maximum amount a lender can require under
RESPA. Lender shall estimate the amount of Funds due on the basis of current data and reasonable estimates of
expenditures of future Escrow Items or otherwise in accordance with Applicable Law.
The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality,
or entity (including Lender, if Lender is an institution whose deposits are so insured) or in any Federal Home Loan
Bank. Lender shall apply the Funds to pay the Escrow Iterns no later than the time specified under RESPA. Lender
shall not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying
the Escrow Iterns, unless Lender pays Borrower interest on the Funds and Applicable Law permits Lender to make
If there is a surplus of Funds held in escrow, as defined under RESPA, Lender shall account to Borrower
for the excess funds in accordance with RESPA. If there is a shortage of Funds held in escrow, as defined under
RESPA, Lender shall notify Borrower as required by RESPA, and Borrower shall pay to Lender the amount
necessary to make up the shortage in accordance with RESPA, but in no more than 12 monthly payments. If there is
a deficiency of Funds held in escrow, as defined under RESPA, Lender shall notify Borrower as required by
RESPA, and Borrower shall pay to Lender the amount necessary to make up the deficiency in accordance with
RESPA, but in no more than 12 monthly payments.
Upon payment in full of all suns secured by this Security Instrument, Lender shall promptly refund to
Borrower any Funds held by Lender.
4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines, and impositions attributable
to the Property which can attain priority over this Security Instrument, leasehold payments or ground rents on the
Property, if any, and Community Association Dues, Fees, and Assessments, if any. To the extent that these items are
Escrow Items, Borrower shall pay them in the manner provided in Section 3.
Borrower shall promptly discharge any lien which has priority over this Security Instrument unless
Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to
Lender, but only so long as Borrower is performing such agreement; (b) contests the lien in good faith by, or
defends against enforcement of the lien in, legal proceedings which in Lender's opinion operate to prevent the
enforcement of the lien while those proceedings are pending, but only until such proceedings are concluded; or (c)
secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security
Instrument. If Lender determines that any part of the Property is subject to a lien which can attain priority over this
Security Instrument, Lender may give Borrower a notice identifying the lien. Within 10 days of the date on which
that notice is given, Borrower shall satisfy the lien or take one or more of the actions set forth above in this
Section 4.
Lender may require Borrower to pay a one-time charge for a real estate tax verification and/or reporting
service used by Lender in connection with this Loan.
5. Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the
Property insured against loss by fire, hazards included within the term "extended coverage," and any other hazards
including, but not limited to, earthquakes and floods, for which Lender requires insurance. This insurance shall be
maintained in the amounts (including deductible levels) and for the periods that Lender requires. What Lender
requires pursuant to the preceding sentences can change during the term of the Loan. The insurance carrier
providing the insurance shall be chosen by Borrower subject to Lender's right to disapprove Borrower's choice,
which right shall not be exercised unreasonably. Lender may require Borrower to pay, in connection with this Loan,
either: (a) a one-time charge for flood zone determination, certification and tracking services; or (b) a one-time
charge for flood zone determination and certification services and subsequent charges each time remappings or
similar changes occur which reasonably might affect such determination or certification. Borrower shall also be
responsible for the payment of any fees imposed by the Federal Emergency Management Agency in connection
with the review of any flood zone determination resulting from an objection by Borrower.
If Borrower fails to maintain any of the coverages described above, Lender may obtain insurance coverage,
at Lender's option and Borrower's expense. Lender is under no obligation to purchase any particular type or amount
of coverage. Therefore, such coverage shall cover Lender, but might or might not protect Borrower, Borrower's
equity in the Property, or the contents of the Property, against any risk, hazard or liability and might provide greater
or lesser coverage than was previously in effect. Borrower acknowledges that the cost of the insurance coverage so
obtained might significantly exceed the cost of insurance that Borrower could have obtained. Any amounts
disbursed by Lender under this Section 5 shall become additional debt of Borrower secured by this Security
Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and shall be payable,
with such interest, upon notice from Lender to Borrower requesting payment.
All insurance policies required by Lender and renewals of such policies shall be subject to Lender's right
to disapprove such policies, shall include a standard mortgage clause, and shall narne Lender as mortgagee and/or as
an additional loss payee. Lender shall have the right to hold the policies and renewal certificates. If Lender requires,
Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. If Borrower obtains any
form of insurance coverage, not otherwise required by Lender, for damage to, or destruction of, the Property, such
policy shall include a standard mortgage clause and shall name Lender as mortgagee and/or as an additional loss
payee.
In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may
make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, any
insurance proceeds, whether or not the underlying insurance was required by Lender, shall be applied to restoration
or repair of the Property, if the restoration or repair is economically feasible and Lender's security is not lessened.
During such repair and restoration period, Lender shall have the right to hold such insurance proceeds until Lender
If Borrower abandons the Property, Lender may file, negotiate and settle any available insurance claim and
related matters. If Borrower does not respond within 30 days to a notice from Lender that the insurance carrier has
offered to settle a claim, then Lender may negotiate and settle the claim. The 30 -day period will begin when the
notice is given. In either event, or if Lender acquires the Property under Section 22 or otherwise, Borrower hereby
assigns to Lender (a) Borrower's rights to any insurance proceeds in an amount not to exceed the amounts unpaid
under the Note or this Security Instrument, and (b) any other of Borrower's rights (other than the right to any
refund of unearned premiums paid by Borrower) under all insurance policies covering the Property, insofar as such
rights are applicable to the coverage of the Property. Lender may use the insurance proceeds either to repair or
restore the Property or to pay amounts unpaid under the Note or this Security Instrument, whether or not then due.
6. Occupancy. Borrower shall occupy, establish, and use the Property as Borrower's principal residence
within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as
Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in
writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are
beyond Borrower's control.
7. Preservation, Maintenance and Protection of the Property; Inspections. Borrower shall not destroy,
damage or impair the Property, allow the Property to deteriorate or commit waste on the Property. Whether or not
Borrower is residing in the Property, Borrower shall maintain the Property in order to prevent the Property from
deteriorating or decreasing in value due to its condition. Unless it is determined pursuant to Section 5 that repair or
restoration is not economically feasible, Borrower shall promptly repair the Property if damaged to avoid further
deterioration or damage. If insurance or condemnation proceeds are paid in connection with damage to, or the
taking of, the Property, Borrower shall be responsible for repairing or restoring the Property only if Lender has
released proceeds for such purposes. Lender may disburse proceeds for the repairs and restoration in a single
payment or in a series of progress payments as the work is completed. If the insurance or condemnation proceeds
are not sufficient to repair or restore the Property, Borrower is not relieved of Borrower's obligation for the
completion of such repair or restoration.
Lender or its agent may make reasonable entries upon and inspections of the Property. If it has reasonable
cause, Lender may inspect the interior of the improvements on the Property. Lender shall give Borrower notice at
the time of or prior to such an interior inspection specifying such reasonable cause.
S. Borrower's Loan Application. Borrower shall be in default if, during the Loan application process,
Borrower or any persons or entities acting at the direction of Borrower or with Borrower's knowledge or consent
gave materially false, misleading, or inaccurate information or statements. to Lender (or failed to provide Lender
with material information) in connection with the Loan. Material representations include, but are not limited to,
representations concerning Borrower's occupancy of the Property as Borrower's principal residence.
9. Protection of Lender's Interest in the Property and Rights Under this Security Instrument. If (a)
Borrower fails to perform the covenants and agreements contained in this Security Instrument, (b) there is a legal
proceeding that might significantly affect Lender's interest in the Property and/or rights under this Security
Instrument (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture, for enforcement of a lien
which may attain priority over this Security Instrument or to enforce laws or regulations), or (c) Borrower has
abandoned the Property, then Lender may do and pay for whatever is reasonable or appropriate to protect Lender's
interest in the Property and rights under this Security Instrument, including protecting and/or assessing the value of
the Property, and securing and/or repairing the Property. Lender's actions can include, but are not limited to: (a)
paying any sums secured by a lien which has priority over this Security Instrument; (b) appearing in court; and (c)
paying reasonable attorneys' fees to protect its interest in the Property and/or rights under this Security Instrument,
including its secured position in a bankruptcy proceeding. Securing the Property includes, but is not limited to,
entering the Property to make repairs, change locks, replace or board up doors and windows, drain water from
pipes, eliminate building or other code violations or dangerous conditions, and have utilities turned on or off.
Although Lender may take action under this Section 9, Lender does not have to do so and is not under any duty or
obligation to do so. It is agreed that Lender incurs no liability for not taking any or all actions authorized under this
Section 9.
Any amounts disbursed by Lender under this Section 9 shall become additional debt of Borrower secured
by this Security Instrument. These amounts shall bear interest at the Note rate from the date of disbursement and
shall be payable, with such interest, upon notice from Lender to Borrower requesting payment.
If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If
Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to
the merger in writing.
10. Mortgage Insurance. If Lender required Mortgage Insurance as a condition of making the Loan,
Borrower shall pay the premiums required to maintain the Mortgage Insurance in effect. If, for any reason, the
Mortgage Insurance coverage required by Lender ceases to be available from the mortgage insurer that previously
provided such insurance and Borrower was required to make separately designated payments toward the premiums
for Mortgage Insurance, Borrower shall pay the premiums required to obtain coverage substantially equivalent to
the Mortgage Insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the
Mortgage Insurance previously in effect, from an alternate mortgage insurer selected by Lender. If substantially
equivalent Mortgage Insurance coverage is not available, Borrower shall continue to pay to Lender the amount of
the separately designated payments that were due when the insurance coverage ceased to be in effect. Lender will
accept, use and retain these payments as a non-refundable loss reserve in lieu of Mortgage Insurance. Such loss
reserve shall be non-refundable, notwithstanding the fact that the Loan is ultimately paid in full, and Lender shall
not be required to pay Borrower any interest or earnings on such loss reserve. Lender can no longer require loss
reserve payments if Mortgage Insurance coverage (in the amount and for the period that Lender requires) provided
by an insurer selected by Lender again becomes available, is obtained, and Lender requires separately designated
payments toward the premiums for Mortgage Insurance. If Lender required Mortgage Insurance as a condition of
making the Loan and Borrower was required to make separately designated payments toward the premiums for
Mortgage Insurance, Borrower shall pay the premiums required to maintain Mortgage Insurance in effect, or to
provide a non-refundable loss reserve, until Lender's requirement for Mortgage Insurance ends in accordance with
any written agreement between Borrower and Lender providing for such termination or until termination is required
by Applicable Law. Nothing in this Section 10 affects Borrower's obligation to pay interest at the rate provided in
the Note.
Mortgage Insurance reimburses Lender (or any entity that purchases the Note) for certain losses it may
incur if Borrower does not repay the Loan as agreed. Borrower is not a party to the Mortgage Insurance.
Mortgage insurers evaluate their total risk on all such insurance in force from time to time, and may enter
into agreements with other parties that share or modify their risk, or reduce losses. These agreements are on terns
and conditions that are satisfactory to the mortgage insurer and the other party (or parties) to these agreements.
These agreements may require the mortgage insurer to make payments using any source of funds that the mortgage
insurer may have available (which may include funds obtained from Mortgage Insurance premiums).
As a result of these agreements, Lender, any purchaser of the Note, another insurer, any reinsurer, any
other entity, or any affiliate of any of the foregoing, may receive (directly or indirectly) amounts that derive from
(or might be characterized as) a portion of Borrower's payments for Mortgage Insurance, in exchange for sharing or
modifying the mortgage insurer's risk, or reducing losses. If such agreement provides that an affiliate of Lender
takes a share of the insurer's risk in exchange for a share of the premiums paid to the insurer, the arrangement is
often termed "captive reinsurance." Further:
(a) Any such agreements will not affect the amounts that Borrower has agreed to pay for Mortgage.
Insurance, or any other terms of the Loan. Such agreements will not increase the amount Borrower will owe
for Mortgage Insurance, and they will not entitle Borrower to any refund.
(b) Any such agreements will not affect the rights Borrower has - if any - with respect to the Mortgage
Insurance under the Homeowners Protection Act of 1998 or any other law. These rights may include the right
to receive certain disclosures, to request and obtain cancellation of the Mortgage Insurance, to have the
Mortgage Insurance terminated automatically, and/or to receive a refund of any Mortgage Insurance
premiums that were unearned at the time of such cancellation or termination.
11. Assignment of Miscellaneous Proceeds; Forfeiture. All Miscellaneous Proceeds are hereby assigned
to and shall be paid to Lender.
If the Property is damaged, such Miscellaneous Proceeds shall be applied to restoration or repair of the
Property, if the restoration or repair is economically feasible and Lender's security is not lessened. Dining such
repair and restoration period, Lender shall have the right to hold such Miscellaneous Proceeds until Lender has had
an opportunity to inspect such Property to ensue the work has been completed to Lender's satisfaction, provided
that such inspection shall be undertaken promptly. Lender may pay for the repairs and restoration in a single
disbursement or in a series of progress payments as the work is completed. Unless an agreement is made in writing
or Applicable Law requires interest to be paid on such Miscellaneous Proceeds, Lender shall not be required to pay
Borrower any interest or earnings on such Miscellaneous Proceeds. If the restoration or repair is not economically
feasible or Lender's security would be lessened, the Miscellaneous Proceeds shall be applied to the sums secured by
this Security Instrument, whether or not then due, with the excess, if any, paid to Borrower. Such Miscellaneous
Proceeds shall be applied in the order provided for in Section 2.
In the event of a total taking, destruction, or loss in value of the Property, the Miscellaneous Proceeds shall
be applied to the sums secured by this Security Instrument, whether or not then due, with the excess, if any, paid to
Borrower.
In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value
In the event of a partial taking, destruction, or loss in value of the Property in which the fair market value
of the Property immediately before the partial taking, destruction, or loss in value is less than the amount of the
sums secured immediately before the partial taking, destruction, or loss in value, unless Borrower and Lender
otherwise agree in writing, the Miscellaneous Proceeds shall be applied to the sums secured by this Security
Instrument whether or not the sums are then due.
If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the Opposing
Party (as defined in the next sentence) offers to make an award to settle a claim for damages, Borrower fails to
respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the
Miscellaneous Proceeds either to restoration or repair of the Property or to the sums secured by this Security
Instrument, whether or not then due. "Opposing Party" means the third parry that owes Borrower Miscellaneous
Proceeds or the party against whom Borrower has a right of action in regard to Miscellaneous Proceeds.
Borrower shall be in default if any action or proceeding, whether civil or criminal, is begun that, in
Lender's judgment, could result in forfeiture of the Property or other material impairment of Lender's interest in the
Property or rights under this Security Instrument. Borrower can cure such a default and, if acceleration has
occurred, reinstate as provided in Section 19, by causing the action or proceeding to be dismissed with a ruling that,
in Lender's judgment, precludes forfeiture of the Property or other material impairment of Lender's interest in the
Property or rights under this Security Instrument. The proceeds of any award or claim for damages that are
attributable to the impairment of Lender's interest in the Property are hereby assigned and shall be paid to Lender.
All Miscellaneous Proceeds that are not applied to restoration or repair of the Property shall be applied in
the order provided for in Section 2.
12. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment
or modification of amortization of the sums secured by this Security Instrument granted by Lender to Borrower or
any Successor in Interest of Borrower shall not operate to release the liability of Borrower or any Successors in
Interest of Borrower. Lender shall not be required to commence proceedings against any Successor in Interest of
Borrower or to refuse to extend time for payment or otherwise modify amortization of the sums secured by this
Security Instrument by reason of any demand made by the original Borrower or any Successors in Interest of
Borrower. Any forbearance by Lender in exercising any right or remedy including, without limitation, Lender's
acceptance of payments from third persons, entities or Successors in Interest of Borrower or in amounts less than
the amount then due, shall not be a waiver of or preclude the exercise of any right or remedy.
13. Joint and Several Liability; Co-signers; Successors and Assigns Bound. Borrower covenants and
agrees that Borrower's obligations and liability shall be joint and several. However, any Borrower who co-signs
this Security Instrument but does not execute the Note (a "co-signer"): (a) is co-signing this Security Instrument
only to mortgage, grant and convey the co-signer's interest in the Property under the terns of this Security
Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that
Lender and any other Borrower can agree to extend, modify, forbear or make any accommodations with regard to
the terms of this Security Instrument or the Note without the co-signer's consent.
Subject to the provisions of Section 18, any Successor in Interest of Borrower who assumes Borrower's
obligations under this Security Instrument in writing, and is approved by Lender, shall obtain all of Borrower's
rights and benefits under this Security Instrument. Borrower shall not be released from Borrower's obligations and
liability under this Security Instrument unless Lender agrees to such release in writing. The covenants and
agreements of this Security Instrument shall bind (except as provided in Section 20) and benefit the successors and
assigns of Lender.
14. Loan Charges. Lender may charge Borrower fees for services performed in connection with
Borrower's default, for the purpose of protecting Lender's interest in the Property and rights under this Security
Instrument, including, but not limited to, attorneys' fees, property inspection and valuation fees. In regard to any
other fees, the absence of express authority in this Security Instrument to charge a specific fee to Borrower shall not
be construed as a prohibition on the charging of such fee. Lender may not charge fees that are expressly prohibited
by this Security Instrument or by Applicable Law.
If the Loan is subject to a law which sets maximum loan charges, and that law is finally interpreted so that
the interest or other loan charges collected or to be collected in connection with the Loan exceed the permitted
limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted
limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to
Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a
direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment
without any prepayment charge (whether or not a prepayment charge is provided for under the Note). Borrower's
acceptance of any such refund made by direct payment to Borrower will constitute a waiver of any right of action
Borrower might have arising out of such overcharge.
15. Notices. All notices given by Borrower or Lender in connection with this Security Instmment must be
in writing. Any notice to Borrower in connection with this Security Instrument shall be deemed to have been given
to Borrower when mailed by first class mail or when actually delivered to Borrower's notice address if sent by
other means. Notice to any one Borrower shall constitute notice to all Borrowers unless Applicable Law expressly
requires otherwise. The notice address shall be the Property Address unless Borrower has designated a substitute
notice address by notice to Lender. Borrower shall promptly notify Lender of Borrower's change of address. If
Lender specifies a procedure for reporting Borrower's change of address, then Borrower shall only report a change
of address through that specified procedure. There may be only one designated notice address under this Security
Instrument at any one time. Any notice to Lender shall be given by delivering it or by mailing it by first class mail
to Lender's address stated herein unless Lender has designated another address by notice to Borrower. Any notice in
connection with this Security Instrument shall not be deemed to have been given to Lender until actually received
by Lender. If any notice required by this Security Instrument is also required under Applicable Law, the Applicable
Law requirement will satisfy the corresponding requirement under this Security Instrument.
16. Governing Law; Severability; Rules of Construction. This Security Instmment shall be governed by
federal law and the law of the jurisdiction in which the Property is located. All rights and obligations contained in
this Security Instmment are subject to any requirements and limitations of Applicable Law. Applicable Law might
explicitly or implicitly allow the parties to agree by contract or it might be silent, but such silence shall not be
construed as a prohibition against agreement by contract. In the event that any provision or clause of this Security
Instrument or the Note conflicts with Applicable Law, such conflict shall not affect other provisions of this Security
Instrument or the Note which can be given effect without the conflicting provision.
As used in this Security Instrument: (a) words of the masculine gender shall mean and include
corresponding neuter words or words of the feminine gender; (b) words in the singular shall mean and include the
plural and vice versa; and (c) the word "may" gives sole discretion without any obligation to take any action.
17. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security
Instrument at the time such documents are executed or within a reasonable time thereafter.
18. Transfer of the Property or a Beneficial Interest in Borrower. As used in this Section 18, "Interest
in the Property" means any legal or beneficial interest in the Property, including, but not limited to, those beneficial
interests transferred in a bond for deed, contract for deed, installment sales contract or escrow agreement, the intent
of which is the transfer of title by Borrower at a future date to a purchaser.
If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not
a natural person and a beneficial interest in Borrower is sold or transferred) without Lender's prior written consent,
Lender may require immediate payment in full of all sums secured by this Security Instrument. However, this
option shall not be exercised by Lender if such exercise is prohibited by Applicable Law.
If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide
a period of not less than 30 days from the date the notice is given in accordance with Section 15 within which
Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the
expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further
notice or demand on Borrower.
19. Borrower's Right to Reinstate After Acceleration. If Borrower meets certain conditions, Borrower
shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earliest of
(a) five days before sale of the Property pursuant to any power of sale contained in this Security Instrument; (b)
such other period as Applicable Law might specify for the tennination of Borrower's right to reinstate; or (c) entry
of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums
which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures
any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security
Instrument, including, but not limited to, reasonable attorneys' fees, property inspection and valuation fees, and
other fees incurred for the purpose of protecting Lender's interest in the Property and rights under this Security
Instrument; and (d) takes such action as Lender may reasonably require to assure that Lender's interest in the
Property and rights order this Security Instrument, and Borrower's obligation to pay the sums secured by this
Security Instrument, shall continue unchanged. Lender may require that Borrower pay such reinstatement sums and
expenses in one or more of the following forms, as selected by Lender: (a) cash; (b) money order; (c) certified
check, bank check, treasurer's check or cashier's check, provided any such check is drawn upon an institution
whose deposits are insured by a federal agency, instrumentality or entity; or (d) Electronic Funds Transfer. Upon
reinstatement by Borrower, this Security Instrument and obligations secured hereby shall remain fully effective as if
no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under
Section 18.
Neither Borrower nor Lender may commence, join, or be joined to any judicial action (as either an
individual litigant or the member of a class) that arises from the other parry's actions pursuant to this Security
Instrument or that alleges that the other party has breached any provision of, or any duty owed by reason of, this
Security Instrument, until such Borrower or Lender has notified the other party (with such notice given in
compliance with the requirements of Section 15) of such alleged breach and afforded the other party hereto a
reasonable period after the giving of such notice to take corrective action. If Applicable Law provides a time period
which must elapse before certain action can be taken, that time period will be deemed to be reasonable for purposes
of this paragraph. The notice of acceleration and opportunity to cure given to Borrower pursuant to Section 22 and
the notice of acceleration given to Borrower pursuant to Section 18 shall be deemed to satisfy the notice and
opportunity to take corrective action provisions of this Section 20.
21. Hazardous Substances. As used in this Section 21: (a) "Hazardous Substances" are those substances
defined as toxic or hazardous substances, pollutants, or wastes by Environmental Law and the following substances:
gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents,
materials containing asbestos or formaldehyde, and radioactive materials; (b) "Environmental Law" means federal
laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental
protection; (c) "Environmental Cleanup" includes any response action, remedial action, or removal action, as
defined in Environmental Law; and (d) an "Environmental Condition" means a condition that can cause, contribute
to, or otherwise trigger an Environmental Cleanup.
Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous
Substances, or threaten to release any Hazardous Substances, on or in the Property. Borrower shall not do, nor allow
anyone else to do, anything affecting the Property (a) that is in violation of any Environmental Law, (b) which
creates an Environmental Condition, or (c) which, due to the presence, use, or release of a Hazardous Substance,
creates a condition that adversely affects the value of the Property. The preceding two sentences shall not apply to
the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally
recognized to be appropriate to normal residential uses and to maintenance of the Property (including, but not
limited to, hazardous substances in consumer products).
Borrower shall promptly give Lender written notice of (a) any investigation, claim, demand, lawsuit or
other action by any governmental or regulatory agency or private party involving the Property and any Hazardous
Substance or Environmental Law of which Borrower has actual knowledge, (b) any Environmental Condition,
including but not limited to, any spilling, leaking, discharge, release or threat of release of any Hazardous
Substance, and (c) any condition caused by the presence, use or release of a Hazardous Substance which adversely
affects the value of the Property. If Borrower learns, or is notified by any governmental or regulatory authority, or
any private party, that any removal or other remediation of any Hazardous Substance affecting the Property is
necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law.
Nothing herein shall create any obligation on Lender for an Environmental Cleanup.
NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows:
22. Acceleration; Remedies. Lenders shall give notice by certified mail to the address of the Property
or another address designated by Borrower prior to acceleration following Borrower's breach of any covenant
or agreement in this Security Instrument (but not prior to acceleration under Section 18 unless Applicable
Law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default;
(c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be
cured; and (d) that failure to cure the default on or before the date specified in the notice may result in
acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further
inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the
non-existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured
on or before the date specified in the notice, Lender at its option may require immediate payment in full of all
sums secured by this Security Instrument without further demand and may invoke the power of sale and any
other remedies permitted by Applicable Law. Lender shall be entitled to collect all expenses incurred in
pursuing the remedies provided in this Section 22, including, but not limited to, reasonable attorneys' fees.
If Lender invokes the power of sale, Lender shall cause a copy of a notice of sale to be served upon
any person in possession of the Property. Leader shall publish a notice of sale, and the Property shall be sold
at public auction in the manner prescribed by Applicable Law. Lender or its designee may purchase the
Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to all expenses of the
sale, including, but not limited to, reasonable attorneys' fees; (b) to all sums secured by this Security
Instrument; and (c) any excess to the person or persons legally entitled to it.
23. Release. Upon payment of all sums secured by this Security Instrument, Lender shall discharge this
Security Instrument. Borrower shall pay any recordation costs. Lender may charge Borrower a fee for releasing this
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in pages 1
through 14 of this Security Instrument and in any Rider executed by Borrower and recorded with it.
Mounds View
- Borrower
- Borrower
- Borrower
- Borrower
STATE OF MINNESOTA,
This instrument was acknowledged before me this
My Commission Expires:
TIL and NMLSR ID
Center for Energy & Environment
Loan Originator Company Name
1094923 (Exempt)
Loan Originator Company NMLSR ID
-Borrower
(Seal)
- Borrower
(Seal)
- Borrower
(Seal)
- Borrower
County as:
day of by
Notary Public
Jim Hasnik
Loan Originator Individual Name
(as name appears on NMLSR)
Loan Originator Individual NMLSR ID
(if applicable)
This instrument was drafted by
Name: Center for Energy & Environment
Address: 212 Third Avenue North, Suite 560, Minneapolis, MN 55401
Example Loan Document 3
City of Mounds View
'romissory Note
Creditor: The Economic Development Authority
In and For the City of Mounds View
2401 Mounds View Blvd
Mounds View, MN 55112
Borrower(s):
Date:
The undersigned Borrower(s) (referred to herein as 'Borrower"), jointly and severally if more than one, promise(s)
to pay to the order of the Creditor named above (referred to herein as "Creditor") at the address listed above or
whatever location Creditor may specify, the sum of
, plus interest on the unpaid balance at an
annual rate of . Interest will begin to accrue as of the date of this note and continues to accrue until the
loan has been paid in full.
Security This note ❑X IS secured by a Mortgage on my residence at:
❑ IS NOT secured by other collateral or property.
An itemization of amount financed is available upon request.
If secured, the Legal description of the property securing this Note is:
Repayment Borrower agrees to repay this Promissory Note in monthly installments of $ Principal
and Interest at a rate of , beginning on and on the same date each
month until the loan maturity date of or until the loan is otherwise paid in
full, whichever occurs first.
Prepayment Borrower may prepay this loan in part or in whole,. at any time prior to the maturity date, without
penalty. If a partial payment (also known as a principal reduction payment) is made at any time, it
does not change the regularly scheduled monthly payments required or any other terms required
under this Promissory Note.
Assumption Anyone buying or acquiring an interest in the property secured by this Promissory Note may NOT
assume the remaining debt.
Initial(s)
Page 1 of 3
CEE / Mounds View_R volvin,,Note/ 12-17
The terms "I" and "my" refer to all and any Borrowers, individually and together, who execute this Promissory
Promises I make the following promises:
* The property to be improved is my principal residence.
* I will use my loan only for the eligible items listed on the project Bids that I submitted.
* My residence does not have more than units.
* My residence is permanently attached to the land by way of a foundation and is taxed as real
property.
* I do not intend to use more than 49% of my residence for business purposes.
* I am the owner of the property referenced herein.
I understand that the Economic Development Authority in and for the City of Minnetonka will rely
on these promises and that I could be guilty of fraud if these promises are not true.
Additional Terms
Simple Interest
Interest on my loan will be calculated using the 'simple interest' method. This means that the
actual interest I will pay will depend on my unpaid balance at the end of each day. Interest may
also be referred to as finance charge.
If I pay ahead of the regular scheduled due date(s), the finance charge may be less than estimated.
If my payments are late, my finance charge may be higher. You will adjust my last payment
accordingly, but you may excuse any additional finance charge due to late payments.
I understand that the simple interest method of calculating interest may not always give the same
results as the method used in making the Truth in Lending disclosures. Therefore, the actual
amount I pay may not be exactly as disclosed.
Your Rights if I Default
I will be in default i£
* I do not make a payment when it is due, or in the full amount due.
* I made misstatements on my loan application or knowingly provided false information or
documentation.
* Someone tries by legal proceedings to get money or property I have on deposit with you.
* I do not keep property insurance in place and in effect that covers the loss of the residence, in
whole or in part.
* I use my residence for unlawful purposes.
* An event of default occurs under any mortgage covering my property.
* I transfer any or all interest in my property without paying my loan in full.
* I do not live up to any promise I have made under this Promissory Note, or
* You believe in good faith that I may not be able or willing to pay you as promised.
If I am in default, you may require immediate payment of the unpaid balance of this Promissory
Note, including the interest I owe. You do not have to give me advance notice.
Additional Terms
If there is a mortgage, you may also foreclose and sell my residence and use the money from the
sale of the property to pay my loan. You may also exercise any other legal rights you may have.
However, even if I am in default, you do not have to require irmnediate payment. You may delay
enforcing any of your rights without losing them.
Initial(s) Page 2 of 3
CEE / Mo"n& View_Revolvin�Note / 12-17
Bankruptcy If anybody starts a case under the U.S. Bankruptcy code which names anyone who signs this
Promissory Note as a debtor, the unpaid balance of this Note, including any interest I owe, will
immediately become due and payable.
Legal and Collection Costs
I must pay any reasonable attorney's fees, legal expenses, and costs of collection that result from
my default (unless prohibited by law).
Governing Law
The law(s) of Minnesota govern this Promissory Note.
Attestation:
I have received, read and understand all terms and conditions of this Promissory Note and agree to all its terms.
TIL and NMLSR ID
Loan Originator Company Name
Loan Originator Company NMLSR ID
Loan Originator Individual Name
(as name appears on NMLSR)
Loan Originator Individual NMLSR ID
(if applicable)
Page 3 of 3
CM/ Mounds Viesv_aevalvin Note/12-17
Example Loan Document 3
City of Mounds View
Promissory Note
Creditor: The Economic Development Authority Date:
In and For the City of Mounds View
2401 Mounds View Blvd
Mounds View, MN 55112
Borrower(s):
The undersigned Borrower(s) (referred to herein as 'Borrower"), jointly and severally if more than one, promise(s)
to pay to the order of the Creditor named above (referred to herein as "Creditor") at the address listed above or
whatever location Creditor may specify, the sum of
$ , plus interest on the unpaid balance at an
annual rate of Interest will begin to accrue as of the date of this note and continues to accrue until the
loan has been paid in full.
Security This note ❑X IS secured by a Mortgage on my residence at:
❑ IS NOT secured by other collateral or property.
An itemization of amount financed is available upon request.
If secured, the Legal description of the property securing this Note is:
Repayment Borrower agrees to repay this Promissory Note in monthly installments of $ Principal
and Interest at a rate of , beginning on and on the same date each
month until the loan maturity date of or until the loan is otherwise paid in
full, whichever occurs first.
Prepayment Borrower may prepay this loan in part or in whole, at any time prior to the maturity date, without
penalty. If a partial payment (also known as a principal reduction payment) is made at any time, it
does not change the regularly scheduled monthly payments required or any other terms required
under this Promissory Note.
Assumption Anyone buying or acquiring an interest in the property secured by this Promissory Note may NOT
assume the remaining debt.
Initial(s) Page 1 of 3
CEE / Mouds View _Revolving_Note / 12-17
The terms T' and "my" refer to all and any Borrowers, individually and together, who execute this Promissory
Promises I make the following promises:
* The property to be improved is my principal residence.
* I will use my loan only for the eligible items listed on the project Bids that I submitted.
* My residence does not have more than units.
* My residence is permanently attached to the land by way of a foundation and is taxed as real
property.
* I do not intend to use more than 49% of my residence for business purposes.
* I am the owner of the property referenced herein.
I understand that the Economic Development Authority in and for the City of Minnetonka will rely
on these promises and that I could be guilty of fraud if these promises are not true.
Additional Terms
Simple Interest
Interest on my loan will be calculated using the 'simple interest' method. This means that the
actual interest I will pay will depend on my unpaid balance at the end of each day. Interest may
also be referred to as finance charge.
If I pay ahead of the regular scheduled due date(s), the finance charge may be less than estimated.
If my payments are late, my finance charge may be higher. You will adjust my last payment
accordingly, but you may excuse any additional finance charge due to late payments.
I understand that the simple interest method of calculating interest may not always give the same
results as the method used in making the Truth in Lending disclosures. Therefore, the actual
amount I pay may not be exactly as disclosed.
Your Rights if I Default
I will be in default if:
* I do not make a payment when it is due, or in the full amount due.
* I made misstatements on my loan application or knowingly provided false information or
documentation.
* Someone tries by legal proceedings to get money or property I have on deposit with you.
* I do not keep property insurance in place and in effect that covers the loss of the residence, in
whole or in part.
* I use my residence for unlawful purposes.
* An event of default occurs under any mortgage covering my property.
* I transfer any or all interest in my property without paying my loan in full.
* I do not live up to any promise I have made under this Promissory Note, or
* You believe in good faith that I may not be able or willing to pay you as promised.
If I am in default, you may require ini nediate payment of the unpaid balance of this Promissory
Note, including the interest I owe. You do not have to give me advance notice.
Additional Terms
If there is a mortgage, you may also foreclose and sell my residence and use the money from the
sale of the property to pay my loan. You may also exercise any other legal rights you may have.
However, even if I am in default, you do not have to require immediate payment. You may delay
enforcing any of your rights without losing them.
Initial(s) Page 2 of 3
CEE/Mount View Rewlvin�Note/12-17
Bankruptcy If anybody starts a case under the U.S. Bankruptcy code which names anyone who signs this
Promissory Note as a debtor, the unpaid balance of this Note, including any interest I owe, will
immediately become due and payable.
Legal and Collection Costs
I must pay any reasonable attorney's fees, legal expenses, and costs of collection that result from
my default (unless prohibited by law).
Governing Law
The law(s) of Minnesota govern this Promissory Note.
Attestation:
I have received, read and understand all terms and conditions of this Promissory Note and agree to all its terms.
TIL and NMLSR ID
Loan Originator Company Name
Loan Originator Company NMLSR ID
Loan Originator Individual Name
(as name appears on NMLSR)
Loan Originator Individual NMLSR ID
(if applicable)
Page 3 of 3
CEE / Motumh View Revolving Note/ 1247