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MINNESOTA HOUSING FINANCE AGENCY
<br /> MINNESOTA CITIES PARTICIPATION PROGRAM
<br /> PROGRAM APPLICATION-COMMITMENT
<br /> AGREEMENT
<br /> THIS APPLICATION AND AGREEMENT is made and entered into by and between
<br /> the Elk River Housing and Redevelopment Authority (hereinafter refereed to as the "City"), with
<br /> its office at, 13065 Orono Parkway, Elk River, Minnesota 55330-1743, and the Minnesota
<br /> Housing Finance Agency (hereinafter referred to as the "MHFA"), with its office at 400 Sibley
<br /> Street- Suite 300, St. Paul, Minnesota 55101-1998.
<br /> WITNESSETH:
<br /> WHEREAS, the MHFA, under the provisions of Minn. Stat. §474A.061 Subd. 2a (1995
<br /> Suppi.), is authorized to issue qualified mortgage bonds, as such term is used in the Internal
<br /> Revenue Code of 1986, as amended through the date of this agreement, on behalf of the City,and
<br /> it has issued, or will issue, such bonds on the behalf thereof; and
<br /> WHEREAS, the MHFA has implemented the Minnesota Housing Finance Agency
<br /> Minnesota Cities Participation Program (hereinafter referred to as the "Program"),and is using, or
<br /> will use,the proceeds from the issuance of such bonds to fund the Program;and
<br /> WHEREAS, the City has requested and received a set-aside of funds from the Program;
<br /> and
<br /> • WHEREAS, the City wishes to obtain a commitment by MHFA to purchase mortgage
<br /> notes and mortgages (hereinafter referred to as "Mortgages")which will be originated by a lender
<br /> or lenders which meet MHFA requirements for participation in programs funded by qualified
<br /> mortgage bonds,designated by the City(hereinafter cumulatively referred to as the"Lender");and
<br /> WHEREAS, Mortgages to be purchased by the MHFA pursuant to the commitment
<br /> requested by the City must only be for residences located within a geographic area to be established
<br /> and designated by the City;and
<br /> WHEREAS,the MHFA is willing to issue a commitment wherein it will agree to purchase
<br /> Mortgages which are(i)originated by the Lender, (ii) reviewed, when required by the MHFA, in
<br /> its sole option and discretion, by an entity to be designated by the MHFA(hereinafter referred to as
<br /> the "File Reviewer"), and (iii) are in accordance with the terms and conditions of this Agreement,
<br /> the Program,and a procedural manual to be supplied by the MHFA(hereinafter referred to as the
<br /> "Procedural Manual"), the provisions of which are hereby incorporated by reference into this
<br /> Agreement as if set forth in full herein; and
<br /> WHEREAS,MHFA is willing to issue to the Lender a commitment under this Agreement,
<br /> after it has been fully executed by all of the parties hereto (the fully executed document is
<br /> hereinafter referred to as the "Program Commitment Agreement"), to purchase Mortgages
<br /> originated by the Lender in accordance with the terms set forth hereinbelow, the provisions of the
<br /> Program and Procedural Manual, and the terms of any other agreement entered into between the
<br /> MHFA and the Lender.
<br /> NOW, THEREFORE, in consideration of the covenants hereinafter contained and the
<br /> mutual benefits to be derived therefrom,the parties hereto do hereby agree as follows:
<br /> 1. City Requirements. All Mortgages submitted to the MHFA for purchase under the
<br /> Program must comply with all of the requirements of the Program, and all of the requirements and
<br /> provisions contained in the Procedural Manual and the Program Commitment Agreement.
<br /> 2. Commitment and Commitment Amount. The City hereby applies for a
<br /> commitment by MHFA to purchase Mortgages which (i) have been originated by the Lender, (ii)
<br /> have been reviewed and approved, where applicable, by the File Reviewer, and (iii) meet the
<br /> requirements of and are made in accordance with the provisions of the Program Commitment
<br /> Agreement, the Program, and the Procedural Manual; and the MHFA, by accepting this Program
<br /> Application-Commitment Agreement,commits to the purchase of such Mortgages in the aggregate
<br /> principal amount(hereinafter referred to as the "Commitment Amount") set forth hereinbelow.
<br /> All Mortgages to be purchased by the MHFA pursuant to the Program Commitment
<br /> Agreement shall be only for property which, and borrowers who, satisfy the requirements and
<br /> provisions of the Program Commitment Agreement,the Program, and the Procedural Manual. the
<br /> City acknowledges that the commitment herein applied for shall be effective only upon the approval
<br /> thereof by MHFA at the place provided for hereinbelow, and the delivery of a copy of the same by
<br /> MHFA to the City, which approved application shall constitute the Program Commitment
<br /> Agreement.
<br /> City Participation Program Form 95-1 1 (Ver-6/2/95)
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