RES 85-034 RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE THE APPLICATION-COMMITMENT AGREEMENT BETWEEN THE CITY OF ST. ANTHONY AND THE MINNESOTA HOUSING FIANNCE AGENCY (MHFA) AND TRANSFER OF NEEDED FUNDS

Home Browse Search

commitment or approved application are issued prior to such effective • date and which are subsequently closed during the term of V'.e commit- ment; and WHEREAS, MHFA is willing to issue a commitment under this Seller Application-Commitment Agreement (hereinafter "Seller Commitment Agreement") to purchase Seller's Mortgages in accordance with the terms and conditions set forth below, and the provisions of the Pro- gram and Procedural Manual: MOW, THEREFORE, in consideration of the Commitment Fee as set forth hereinbelow paid by Seller to the ' MHFA, the receipt and suffi- ciency, of which is acknowledged by the MHFA, 'and the covenants herein- af.ter contained and the mutual benefits to be derived therefrom, it is hereby agreed as follows: 1. Commitment Term. Upon the execution and delivery of the Seller Commitment Agreement by MHFA to Seller, Seller shall commence to make Mortgage loans complying with the terms of the Seller Commit- ment Agreement, the Program, and the Procedural Manual. The entire amount of Mortgages shall be closed and delivered to MHFA for purchase within the period specified in the Seller Commitment Agreement (here- inafter "Commitment Term") , which Commitment Term shall commence and terminate upon the dates set forth below by MHFA. 2. Commitment Amount. Seller, hereby applies for a commitment by MHFA to purchase Seller's Mortgages which meet the requirements of and are in accordance with the provisions of this Application and Agreement, the Seller Commitment Agreement, the Program, and the Pro- cedural Manual, in the aggregate principal amount set forth below, which amount is also set forth in the Program Commitment Agreement issued to the: Municipality and attached hereto as Exhibit B and made a part hereof. All -Mortgages to be purchased by the MHFA from Seller pursuant to the Seller Commitment Agreement shall be originated by Seller only for property and home purchasers which satisfy the provi- sions of the Seller Commitment Agreement, Program, and the Procedural Manual. Seller acknowledges that the commitment herein applied for shall be effective only upon the approval thereof by MHFA at the place provided below, and the delivery of a copy of the same by MHFA to Seller, which approved application shall constitute the Seller Commit- ment Agreement. Seller's application. is further subject to any reduc- tion in dollar amount which may be set forth below by MHFA prior to delivery by it to Seller of an approved copy of said Seller Commitment Agreement. It is a condition of the Seller Commitment Agreement that MHFA shall, have the additional right, upon written notice to the Seller, to reduce the approved commitment amount at any time after the delivery of the Seller Commitment Agreement; provided that if such a, reduction occurs MHFA shall refund to Seller that portion of the Commitment Fee represented by such reduction, and provided further that the MHFA shall purchase all of Seller's Mortgages closed during the Commitment Term and prior to the effective date of MHFA's notice of commitment amount reduction, and all of Seller's Mortgages for which Seller's binding commitment or approved application are issued prior to such effective date and which are subsequently closed during the Commitment Term. Seller acknowledges that Municipality is a beneficiary of the Seller Commitment Agreement, and that the MHFA may supply a copy thereof to the Municipality after its execution and delivery. Seller also- acknowledges and agrees that upon request by the Municipality, it willsupply the Municipality with written confirmation that the Seller Commitment Agreement is in full force and effect. 3. Variance in Commitment Amount. A variance of $15,000.00 in the total principal amount of Mortgages purchased under the Seller Commitment Agreement, above or below the Commitment Amount, shall be deemed by the MHFA to constitute compliance with the contents of such Seller Commitment Agreement. -7- W/P ID 1664F 7/3/85