2004 AGN APR 20 I10 - Laserfiche WebLink

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COMMUNITY • REINVESTMENT FUND L ester to the City cf Calton Placement within a CRF Security Offering Pam 2 gf 4 In the event an institutional investor is not identified, CRF will fund the loan through a security offering. CRF reserves the right to fund the loan through two separate loans. The loans would be independently documented and secured by a shared first position on the collateral. All other terms and conditions would be similar and as outlined in this letter. The interest rate for both loans would be calculated in accordance with paragraph two, above. 4) CRF shall be paid a transaction fee equal to two percent (2.0%) of the loan amount at the time of closing. 5) The Note shall be secured by a first deed of trust and assignment of rents and leases on the Property. The deed of trust and assignment shall be in form and substance acceptable to CRF. 6) The City shall establish a $250,000 Credit Reserve Account pledged to CRF to further secure the loan. Should any funds be used by CRF from the Account for loan payments, the City will agree to replenish the account within 30 days. The Account will be maintained for the life of the loan. 7) The Loan Documents shall include a hazardous substances indemnity agreement from the City, which shall be in form and substance acceptable to CRF. 8) CRF shall receive a title insurance policy from a title insurance company acceptable to CRF with respect to the Deed of Trust which insures CRF that as of the purchase date the Deed of Trust is a first lien on the Property in the amount of the Note free and clear of mechanic's liens, material supplier's liens, taxes (other than installments not then due), special assessments, rights of parties in possession (other than the tenants contemplated by this commitment as tenants only under their respective leases), and questions of survey; and subject only to exceptions approved in writing by CRF. Such policy/endorsement shall include a comprehensive Endorsement (ALTA form 9 or equivalent), a zoning endorsement (ALTA form 3.1), an endorsement deleting the creditor's rights exclusion to coverage, a non -imputation endorsement with respect to the interim lender and such other endorsements as CRF may require. 9) CRF shall be provided evidence and a title policy shall insure the location of the building and other improvements included in the Property and the parking or other facilities necessary to the use or operation of the building and other improvements as being located entirely within the boundary lines of the Property premises, and located so as not to be in violation of any applicable set back or use restrictions of record, if any; showing that there are no encroachments from or on to the Property premises, showing any portion of the Properties premises which is located in an area designated as being a flood plain or flood hazard area as defined by the Flood Hazard Map published by the Federal Insurance Administration; and showing such other things as CRF may reasonably require. 10) The Qty shall furnish property (hazard and liabilit)) insurance on the project collateral (real and personal property) in its maximum insurable amount and in a form, including endorsements, acceptable to CRF. The CRF shall be provided with a collateral assignment as a loss payee and be named as first mortgagee on