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3. Variance in Com itment Amount. A variance of Fifteen Thousand and No/100
<br /> Dollars ($15,000.00) in the to . principal amount of Mortgages purchased under the Program
<br /> • • Commitment Agreement,abov. or below the Commitment Amount,shall be deemed by the MHFA
<br /> to constitute compliance with le Program Commitment Agreement.
<br /> 4. Commencement o Activity. Upon the acceptance, execution, and delivery of the
<br /> Program Commitment Agreem.nt by MHFA to the City,the City shall select and designate Lender,
<br /> and shall have Lender enter in Jo and execute a Lender Application-Commitment Agreement in a
<br /> form to be supplied by the M I A. Lenders must meet MHFA requirements for participation in
<br /> programs funded by qualified s ortgage bonds.
<br /> 5. Commitment Te c The term of the Program Commitment Agreement and the
<br /> City's participation in the Pro ram (hereinafter referred to as the "Commitment Term") shall
<br /> commence on a date to be sel-'ted and specified by the MHFA, and shall continue for a period of
<br /> time to be established by the HFA, in its sole option and discretion, provided, however, such
<br /> time period shall not be less 1 . Eight(8)months. The MHFA shall transmit a written notification
<br /> to the City of the date on hich the Commitment Term shall commence. The Program
<br /> Commitment Agreement,and s e City's participation in the Program,shall automatically terminate,
<br /> without the need for any action y either party hereto,at the end of the Commitment Term.
<br /> 6. Set-Aside Term. The Commitment Amount shall be set-aside and held by the
<br /> MHFA for the sole use by the 1 ity for a period of time to be established by the MHFA,in its sole
<br /> option and discretion, provid .,, however, such time period shall not be less than Six(6)months
<br /> (hereinafter referred to as the"`et-Aside Term")commencing on a date to be selected and specified
<br /> by the MHFA. The MHFA si 1 transmit a written notification to the City of the date on which the
<br /> Set-Aside Term shall commen .
<br /> Any portion of the Co .'tment Amount not reserved for the purchase of qualifying
<br /> Mortgages as of the end of the Set-Aside Term shall be cancelled and returned to the MHFA for
<br /> redistribution under the Progr. i in accordance with the provisions contained in the Procedural
<br /> Manual. In addition, any porti•n of the Commitment Amount reserved for Mortgages which are
<br /> not delivered to the MHFA for •urchase within the time period delineated in the Procedural Manual
<br /> for such purchase, shall be c celled and returned to the MHFA for redistribution under the
<br /> Program, and any funds cont."fled in the Program at the end of the Commitment Term shall
<br /> become funds of the MHFA, • d transferred to whatever program the MHFA, in its sole option
<br /> and discretion,may designate.
<br /> 7. Commitment Fe s. No commitment fee shall be payable by the City for the
<br /> commitment by the MHFA top tease qualifying Mortgages.
<br /> 8. Purchase Price. + e e purchase price of each Mortgage to be purchased by MHFA
<br /> hereunder shall be as set forth i the Procedural Manual.
<br /> 9. Mortgage Terms. The interest rate for all Mortgages shall be set from time to time
<br /> by the MHFA, at its sole optioo and discretion,by way of a written statement to the City and the
<br /> Lender;provided, however,an change in interest rate shall only apply to Mortgages for which an
<br /> individual commitment is issu-I after the City and the Lender have received such notification of
<br /> interest rate change. Mortgage shall meet all requirements of the Program, and those set forth in
<br /> the Program Commitment Ag : ment,the Procedural Manual, and either the Originating Lender
<br /> Application-Commitment Ag : ment or the Direct Seller Application-Commitment Agreement,
<br /> whichever is applicable.
<br /> 10. Area Limitation. I he City hereby specifically agrees that the MHFA shall,pursuant
<br /> to the Program Commitment A Lreement,be required to purchase only those Mortgages which are
<br /> for residences located within a -ographic area to be established and designated by the City.
<br /> • 11. Warranties. The City hereby warrants to MHFA that,upon approval and delivery of
<br /> the Program Commitment Agreement by MHFA and the subsequent purchase by and delivery of
<br /> Mortgages to MHFA pursuant thereto, all such Mortgages will have been made in compliance
<br /> with, and will be in full compliance with, the terms and conditions contained in the Program
<br /> Commitment Agreement, the Program, and the Procedural Manual, and all warranties set forth in
<br /> the Procedural Manual are adopted and made by the City, and shall be applicable to each such
<br /> Mortgage.
<br /> 12. Servicing. The servicing of Mortgages shall be the sole responsibility of MHFA, or
<br /> of those servicing institutions which MHFA may designate in its sole option and discretion.
<br /> 13. Remedies. Time is of the essence hereof. In the event that the City defaults in the
<br /> observance or performance of any covenant or condition in the Program Commitment Agreement
<br /> or Procedural Manual, or in the event that any warranty made by the City with respect to any
<br /> Mortgage is found to be untrue,then the MHFA shall be entitled to all remedies at law or in equity
<br /> including, but not limited to; (i) the right to rescind acceptance of the Program Commitment
<br /> Agreement, (ii)the right to seek equitable relief by way of injunction(mandatory or prohibitory)to
<br /> City Participation Program Form 95-1 2 (Ver-6/2/95)
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