HomeMy WebLinkAbout97- Bozeman Interfaith Housing; CAHAB Loan
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PROMISSORY NOTE
$40,000.00 BOZEMAN, MONTANA d)Jf ' 1997
FOR VALUE RECEIVED, the undersigned, BOZEMAN INTERFAITH HOUSING,
INC. (I), hereinafter called "Borrower", promises to pay to the order of CITY OF BOZEMAN,
a Montana municipal corporation, hereinafter called "City", negotiable and payable to payee at
411 East Main Street, Bozeman, Montana, the principal sum of FORTY THOUSAND AND
NO/IOO DOLLARS ($40,000.00). Equal monthly payments of Two Hundred Twenty Two and
22/1 00 Dollars ($222.22) shall be made on or before the tenth day of each month, commencing
with July 1, 1996. The last payment of Two Hundred Twenty Two and 62/100 Dollars ($222.62)
shall be made on or before July 1, 2011.
All payments must be received by 4:00 p.m. on the date due. A late payment fee of five percent
(5%) of the scheduled payment shall be added beginning with the eleventh (11th) day of the
month in which the payment is due. The Borrower shall have the right to pay, in addition to any
monthly payment, any additional sum or to pay the entire balance remaining due at any time.
Such payments shall not relieve Borrower from making the next regularly scheduled payment.
In the event of default in the payment of any installment under this Note, and if th'e default
remains uncured for more than Thirty (30) days after written notice thereof to Borrower, then
upon nonpayment thereof after notice in writing to Borrower, the entire principal sum shall at
. once become due and payable in full within thirty (30) days from said second notice. Failure to
exercise this option shall not constitute waiver of the right to exercise the same in the event of
any subsequent default. In the event of default, it is agreed that the Holder of this Note may
recover such necessary expenses as may be incurred in collection, including reasonable attorney's
fees, which reasonable attorney's fees include expenses and fees of the City Attorney, including
fees on appeal.
The Makers consent to any and all extensions of time, renewals, waivers or modifications that
may be granted by the Holder hereof, with respect to payment of security, or any part thereof,
with or without substitutions.
This Note is secured by a second position Montana Trust Indenture of even date herewith, upon
real estate situated in the County of Gallatin, State of Montana, and generally described as
follows:
Lots 5 and 6 in Block 1 of the Correction Plat of Westlake's First Addition to
Bozeman, according to the official plat thereof on file and of record in the office
of the County Clerk and Recorder, Gallatin County, Montana.
All notices to be given hereunder by either party hereto shall be in writing and given by personal
service or first class mailing utilizing registered or certified mail, return receipt requested. Said
method of notice is deemed sufficient service thereof, and shall be deemed given as to the date
when served or deposited in any post office. Either party may change address by written notice
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by certified or registered mail to the other. The initial address for receipt of notice is as follows:
Bozeman Interfaith Housing [I] City of Bozeman
P.O. Box 7090 P.O. Box 640
Bozeman, Montana 59715 Bozeman, Montana 59771
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By: icholas DavIs, PreSIdent
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LOAN AGREEMENT
THIS AGREEMENT is made and entered into this ~ day of ~, 1997, by
and between BOZEMAN INTERFAITH HOUSING INC. [1] whose mad g address is P.O.
Box 7090, Bozeman, Montana, hereinafter referred to as "Debtor" and the CITY OF
BOZEMAN, a Montana municipal corporation, whose mailing address is P.O. Box 640,
Bozeman, Montana, 59771-0640, hereinafter referred to as "Lender", according to the
following terms and conditions:
1. Amount of Loan
The Lender agrees to loan the sum of Forty Thousand Dollars ($40.000.00) at 0%
interest for fifteen (15) years. This loan originates from funds through the Community
Affordable Housing Fund Advisory Board, and is secured by a Promissory Note and Montana
Trust Indenture executed by the Debtor and incorporated herein by reference. It is
understood that the Trust Indenture will be in second position to the Montana Board of
Housing.
2. Terms for Repayment
The Debtor agrees to pay to Lender the sum of Two Hundred and Twentv-two
Dollars and 22/100 ($222.22) per month for One Hundred Seventy-nine (179) months and
shall make a final payment of Two Hundred Twenty-two Dollars and 62/100 ($222.62). The
payment is due on the first day of each month beginning July 1, 1996, and shall be made
no later than the 10th day of each month. If the payment due date is a government holiday
or other non-working day, the payment is due the next working day following the holiday
or non-working day. All payments must be received by 4:00 o'clock p.m. on the day due.
A late payment fee of 5% of the scheduled payment shall be added beginning with the 11th
day of the month in which the payment is due.
The Debtor is encouraged to seek other funding sources during the life of the loan.
Prepayment of any amount beyond the scheduled payment, up to and including the entire
remaining balance on the date payment is made, shall be without penalty.
3. Insurance
Debtor will maintain insurance on the property and the project at all times sufficient
to cover loss by fire, theft or other hazard sufficient to protect Lender's interest in said
property or project. Insurance proceeds shall be payable to Lender for the monetary amount
of Debtor's obligation to Lender. However, the Debtor may, upon written approval of the
Lender, in the event of loss by fire, theft or other hazard, apply insurance proceeds received
by the Lender towards the payment of the loan or use the proceeds to rebuild the
improvements destroyed or damaged. If Debtor chooses this latter option, the Lender will
hold the insurance proceeds and pay them to materialmen, contractors, and laborers for
services rendered and materials furnished and delivered in the rebuilding or the
improvements. It is understood that it is the Debtor's duty to see that no liens are filed
upon the premises by reason of any rebuilding. The Debtor will place copies of the
insurance policy or policies with the Lender within thirty (30) days of the execution of this
agreement. Lender shall have no liability whatsoever for any loss that may occur by reason
of the omission or lack of coverage of any such insurance.
Bozeman Inteifaith II] (Dairykeep Infrastructure) Loan p. I
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During the term of this loan agreement, when the Debtor renews the insurance policy by
payment of an additional year's premium, the Debtor will provide proof of payment of the
premium to the Lender so as to keep the Lender advised at all times that the property is
insured. Failure to so notify the Lender is an event of default of this agreement.
4. Non-discrimination
The Debtor agrees to abide by the provisions of Title VI of the Civi I Rights Act of
1964, section 109 of the Housing and Community Development Act of 1974, the Age
Discrimination Act of 1974, and section 504 of the Rehabilitation Act of 1973 regarding
discrimination based upon race, color, national origin, sex, age or physical challenge.
5. Additional Assurances
The Debtor will remain fully obligated under the provision of this agreement
notwithstanding its designation of any third party or parties, with written approval of the
Lender, for the undertaking of all or any part of the program with respect to which
assistance is being provided under this agreement. The Debtor will comply with all
applicable laws, rules and regulations of the Lender, the State of Montana, and the United
States Government.
6. Litigation
The Debtor states that to the best of its knowledge and belief there are no suits or
proceedings pending or threatened against or affecting it which, if adversely determined,
would have a material adverse effect on its financial condition. In addition, to the
knowledge of the Debtor, there are no proceedings by or before any governmental
commission, board, bureau or other administrative agency pending or threatened against the
Debtor .
7. Default
The parties agree that time is of the essence of this agreement. Debtor shall be in
default under this agreement upon the occurrence of any of the following events or
conditions:
a. Debtor defaults in the payment or performance of any obligation, covenant or
liability contained or referred to herein or in any note evidencing the same;
b. Any warranty, representation or statement made or furnished to Lender by or on
behalf of Debtor proves to have been false in any respect when made or furnished;
c. Any event which results in the acceleration of the maturity of the indebtedness
of Debtor to others under any indenture, agreement or undertaking;
d. Death, dissolution, termination of existence, insolvency, business failure,
appointment of a receiver of any part of the property, assignment for the benefit of
creditors by, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against, Debtor or any guarantor or surety for Debtor, or entry
of any judgment against them, or failure of any guarantor or surety for Debtor to
provide Lender with financial information promptly when requested by Lender.
Bozeman Interfaith [I] (Dairykeep Infrastructure) Loan p. 2
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e. Debtor fails to pay any local, real, or personal property taxes, to include special
assessments, specific to the property;
8. Notice of Default
Upon the occurrence of any default hereunder and at any time thereafter, the lender
may declare Debtor to be in default and thereafter give Debtor written notice setting forth
the action or inaction which constitutes the default and giving Debtor thirty (30) days in
which to correct the default. If Debtor fails to correct the default within thirty (30) days of
this notice, the lender may notify Debtor in writing that the full balance due upon the note
is then due and payable in full within thirty (30) days. It is agreed by the parties hereto that
the provisions of this Agreement provide reasonable and sufficient notice to be given to
Debtor in case of Debtor's failure to perform any of its covenants and that this notice is
sufficient for Debtor to rectify its actions or inactions of default.
9. Demand and Notice
Any demand upon or notice to either party shall be addressed and mailed to the
address as identified at the top of page one of this agreement or by personal service.
Mailing shall be by depositing with the United States Postal Service, postage pre-paid, and
shall be effective when served or three (3) days after deposit in the United States Mail,
wh ichever occu rs fi rst.
10. Waiver
No waiver of any default shall constitute a waiver of any other default, nor shall such
waiver constitute a continuing waiver. No waiver of any term or condition of this
agreement shall constitute a waiver of any other term or condition, whether or not similar,
nor shall such waiver constitute a continuing waiver.
11. Amendments
This agreement may not be altered or amended except by a writing signed by the
Debtor, accepted by Lender, and attached hereto.
12. Severability
If one or more provisions of this agreement is deemed to be unlawful or
unconstitutional or stricken by a court of law, all valid provisions that are severable from
the invalid provisions shall remain in effect and be valid and binding on the parties. If any
provision is in conflict with any applicable statute, rule of law, court order or judgment,
then such provision shall be deemed to be modified to conform with such statute, rule or
law, court order or judgment.
13. Construction and Venue
This agreement shall be interpreted according to the laws of the State of Montana.
Venue in any dispute arising from this agreement shall be in the Eighteenth Judicial District,
Gallatin County, Montana.
14. Attorney's Fees
In the event that it becomes necessary for any party to this agreement to retain an
attorney to enforce any terms or conditions of this Agreement, then the prevailing party or
Bozemnn Interfaith [If (Dairykeep Infrastructure) Loan p. 3
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parties shall be entitled to costs and reasonable attorney's fees, including fees of in-house
counselor City Attorney costs and including fees on appeal.
15. Hold Harmless
The Debtor waives any and all claims and recourse against the Lender, including the
right of contribution for loss and damage to persons or property arising from, growing out
of, or in any way connected with or incident to this agreement. Further, the Debtor will
indemnify, hold harmless, and defend the Lender against any and all claims, demands,
damages, costs, expenses or liability arising out of the performance of the Debtor.
16. Assignment
This agreement is not assignable by Debtor without written consent of the Lender,
said consent not to be unreasonably withheld.
1 7. Titles
The titles used in this agreement are for reference purposes only.
18. Transferability
This agreement shall be binding upon the heirs, personal representatives, successors
and assigns of the parties. This agreement and the contemporaneous Promissory Note are
not transferrable without written permission from the Lender, and are subject to the
condition that the Debtor own the property described as the Dairykeep for the term of the
loan and that the property remain affordable to persons below 60% of the area median
income as defined and updated annually by the Montana Board of Housing or their
successors. Should the property be sold or not maintained for the designated income group,
the Note shall become due and payable on demand.
BOZEMAN INTERFAITH HOUSING, INC. [I]
By: ~..,
,/ Nicholas Davis, President
CITY OF BOZEMAN
By:
ATTEST:
Robin L. Sullivan, Clerk of Commission
Bozeman Interfaitlz IIJ (Dairykeep Infrastrucltlre) Loan p. 4
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STATE OF MONT ANA )
) ss.
County of Gallatin )
On thiS.4 day of ~ ' 1997, before me, the undersigned, a Notary
Publ ic for the State of Montane{, personally appeared the NICHOLAS DAVIS, known to me
to be the President of BOZEMAN INTERFAITH HOUSING, INC. [I], and the person whose
name is subscribed to the within instrument, and acknowledged to me that he executed the
same for and on behalf of BOZEMAN INTERFAITH HOUSING, INC. [I].
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal
the day and year first above written.
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STATE OF MONT ANA )
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County of Gallatin )
On th i s _ day of , 1997, before me, the undersigned, a Notary
Public for the State of Montana, personally appeared RON BREY and ROBIN L. SULLIVAN,
known to me to be the Acting City Manager and the Clerk of Commission, respectively, of
the City of Bozeman, and the persons whose names are subscribed to the within instrument,
and acknowledged to me that they executed the same for and on behalf of the City of
Bozeman.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal
the day and year first above written.
Notary Public for the State of
Montana, Residing at Bozeman
My Commission Expires
Bozeman Interfaith [I) (Dairykeep Infrastructure) Loan p. 5
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MONTANA TRUST INDENTURE
THIS TRUST INDENTURE, Made this + day ~ ' 1997, between BOZEMAN
INTERFAITH HOUSING, INC. [I] (INTERFAITIl) whose mailing address is P.O, Box 7090, Bozeman, Montana
59715, as GRANTOR, PAUL J. LUWE, Bozeman City Attorney, with principal office at 411 East Main Street, as
TRUSTEE, and CITY OF BOZEMAN, with principal office at 411 East Main Street, Bozeman, Montana, as
BENEFICIARY,
WITNESSETH: That Grantor hereby irrevocably GRANTS, BARGAINS, SELLS,. CONVEYS AND WARRANTS TO TRUSTEE
IN TRUST, neverthekss, WITH POWER Of SALE, that certain real prOperty, which does not exceed thirty (30) acres in area, situated In the
County of Gallatin, State of Montana, particularlY described as follows, to-wit:
Lots 5 and 6 in Block 1 of the Correction Plat of Westlake's First Addition to Bozeman, according to the otlicial plat
thcreof on lile and of record in the office of the County Clerk and Recorder, Gallatin County, Montana
TOGETHER WITH: (I) All buildings, fixtures and improvementsthereon and all water rights, rights-of-way, tenements, hereditaments,
privileges and appurtenances Ihereunto belonging, now owned or hereafter acquired, however evidenced, used or enjoyed with said premises or
belonging to the same; (2) All right, titlc and interest hereafter acquired in or to any of said premises, hereby also releasing, relinquishing and
waiving all excmptions, rights of surviving spouse and homestead in or to said premises, vested or inchoate; (3) All heating, air conditioning,
plumbing and lighting facilities, equipment and fixtures now or hereafter installed upon or within said premiSeS, used or proper or necessary to
constitute the said premises a habitable, uSllble or operating unit-all of said property being designated and deemed for the purposes of this
instrument a part of the realty; and (4) All of the rents, issues and profits of said premises, SUBJECT, HOWEVER, to the right, power and
authority hereinafter conferred upon Beneficiary to collect and apply such rents, issues and profits;
FOR THE PURPOSE OF SECURlNG: (I) Payment of the principal sum of Forty Thousand and No/I 00 Dollars ($40,000.00) with
interest thereon according to the terms of a promissory note, duted . 1996 (and any extensions and/or renewals or modifications
thereot), made by Grantor payable to the order of Beneticiary in monthly installments of Two Hundred Twenty Two and 22/100 Dollars
($222.22), and the last payment of Two Hundred Twenty Two and 62/100 Dollars ($222.62), unless sooner paid, shall be due and payable on
or belore July 1,20 II; (2) Payment of all sums expended or advanced by Beneficiary under or pursuant to the terms hereof, together Wittl interest
thereon as herein provided; and (3) Per10rmance of each agreement of Grantor herein and in said note contained.
" TO PROTECT THE SECURITY OF HIlS TRUST INDENTURE, AND FOR OTHER PURPOSES, GRANTOR AGREES:
1. To keep said property in good condition and repair; not to remove or demolish any building thereon; to complete and restore
promptly and in a good und workmunlike manner any building which may be constructed, damaged or destroyed thereon, and to pay when due
all claims for labor performed and materials furnished therefor; to comply with all laws, covenants and restrictions affecting said property; not
to commit or permit waste thereof; not commit, suffer or permit any act upon said property in violation of the law; to do all other acts which
from the character or use of said property may be reasonably necessary, the specific enumerations herein not excluding the general; and if the
loan secured hereby or any part thereof is being obtained for the purpose of tinancing construction of improvements on said property, Grantor
fllrther (Igrt~es:
(a) To commence construction promptly and to pursue the same with reasonable diligence to completion in llccordance with plans
and specilications satisfactory to the Beneticiary, and
(b) To alluw Beneliciary to inspect said property at all times during construction.
Trustee, upon presentation to it of an aftidavit signed by Beneficiary, setting forth fllcts showing a default by Grantor under this numbered
pamgraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon as provided in this instrument, and
as allowed by law.
2. To provide, maintainand deliver to Beneficiary, insufllflce ofsuch type or types and amounts as Beneficiary may require,
on the improvements now existing or hereatter erected or placed on said property. Such insurance shall be carried in companies approved by
the Beneliciary with loss payable clause in favor of 'and in form acceptable to Beneticiary. In the event of loss, Grantor shall give immediate
notice to Beneficiary, who may make proof of loss and each insurance company concerned is hereby authorized and directed to make payment
for Slleh loss directly to Beneticiary instead of to Grantor and Beneficiary jointly, and the insurance proceeds, or any part thereof, may be applied
by Bencticiary, at its option, to the reduction of the indebtedness hereby secured or to the restoration or repair of the property damaged.
3. 'I'll deliver to, pay lor and mnintain with Beneliciary until tile indebtedness secured hereby is paid In full, s.uch evidence
of title as Beneticiary may require, including abstracts of title or pOlicies of title insurance and any extensions or renewals thereof or s'upplements
thereto.
4. To pay betore delinquent all taxes and assessments, including interest and penalties, affecting said premises and
improvcments; to promplly IlaY and discharge all cncumbranecs, chllrges and liens on said property which at allY time are, or appear to be, prior
or superior hereto. In alldition to the payments due in accordance with the terms of the note hereby secured, Grantor shall, at the option and on
dcmand of the Deneliciary, pay to the Deneliciary monthly and concurrently with payment of principal and interest, a sum equal to one-twelfth
(1/12) of the annual taxes, assessments, insurance premiums, maintenance and other charges upon the property, as estimated by the Beneficiary,
in trust nevertheless tor Grantor's use and benetit and for payment by Beneficiary of any such items when due. T~e failure of Grantor to make
any such payments shall constitute a default under this trust.
5. Except ~IS otherwise expressly provided herein, to pay all costs, fees and expenses of this trust, including cost of search and
evidence of title, ~\dvertising and recording expense, documentary taxes and Trustee's and attorney's tees as allowed by law.
6. Should Grantor fail to make any payment or to do any act as herein provided, then Beneticiary or Trustee, widlOllt obligation
so to do and widlOut notice to or demand Ilpon Grantor and without releasing Grantor from any obligation hereof, may make or do the same in
sueh manner and to such extent as either may deem necessary to protect tile security hereof, Beneticiary or Trustee being authorized to enter upon
said property tor such purposes.
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16. Each abstract of tille, title insurance policy and all other evidences of title, and all hazard insurance policies placed or
deposited with Ihc Bend1ciary shall be deemed an incident to the title to the trust property and upon foreclosure by exercise of power of sale,
or otherwise, shall pass to the purchaser and the same are hereby pledged as additional security for payment of the indebtedness secured hereby.
17. Upon the occurrence of any default hereunder, Beneticiary shall have the option to declare all sums secured hereby
immediately due and payable and foreclose this Trust Indenture in the manner provided by law tor the toreclosure of mortgages on real property
and Beneticinry shall be entilled to recover in such proceedings all costs and expenses incident thereto, including a reasonable attorney's fee in
such amount as shall be tixed by the Conrt.
18. Exceplas mny be otherwise provided herein, Grantor agrees to pay to Beneticiary or Trustee the costs and expenses,
including a n:asonuble allomey's ti:e, incurred by eilher of them in instituting, prosecuting or defending any Court action in which Grantor does
not prevail, if such action involves the interpretation hereof or performance hereunder by a party hereto or the breach of any provision hereof
by a party herelo, including but not limited to an action to obtain possession of the above described property after exercise of the power of sale
gnllllcd hereunder.
19. This Trust Indenture shall apply to, inure to the bene tit of and bind all parties hereto, their heirs, legatees, devisees,
administrators, executors, successors and assigns. All obligations of the Grantor hereunder are joint and several. The term "Beneticiary" shall
mean the owner mill holder, including any pledgee, of the note secured hereby. In this Trust Indenture, whenever the context so requires, the
masculine gender includes the feminine and/or neuter, and the singular number includes the plural.
20. Trustee uccepts this Trust when this Trust Indenture, duly executed and acknowledged, is made a public record as provided
by law. Trustee is not obligated to notify any party hereto of 1\ pending sale under any other trust indenture or of anynction or proceeding in
which Grantor, Beneticiary, or Trustee shall be a party, unless brought by Trustee.
21. This Trust Indenture is made within the State of Montana pursuant to the Small Tract Financing Act of Montana and is
not made or taken in substitution for any mortgage in existence onthe effective date of said Act.
22. Grantor requesls that a copy of any notice of default and of any hotice of sale hereunder be mailed to him at the address
hereinabove set torlh. .
ESS WHEREOF, the Grantor has hereunto set his hand the day and year first hereinabove written.
STATE or MONTANA )
)
County of Gallatin )
On this t day of A Nt - / , 1997, befQre me, a Notary Public for the State of Montana,
pei:sonally appeared NICHOLAS DA VIS, known to me to be the President of the Bozeman Interfaith Housing, Inc.
(1) and the person(s) whose name is subscribed to the within instrument, .and acknowledged to me that he executed
the same for and on behalf of the Bozeman Interfaith Housing, Inc. (I)
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my Notarial Seal the day and year first
above written.
(SEAL) ,/7,~ ' 11,
Notar Public or the State of. '?'
Washington, residing at ~r~ . ":11 ~ >~
My Commission Expires ~/ & /0 I
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