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<br /> 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 Economic Development Authority(hereinafter refereed to as the"City"),with its
<br /> office at,720 Dodge Avenue N.W., Elk River,Minnesota 55330,and the Minnesota Housing
<br /> Finance Agency(hereinafter referred to as the"MHFA"),with its office at 400 Sibley Street-Suite
<br /> 300,St.Paul,Minnesota 55101-1998.
<br /> WITNESSETH:
<br /> WHEREAS,the MHFA,under the provisions of Minn.Stat. §474A.061 Subd.2a(1992),
<br /> is authorized to issue qualified mortgage bonds,as such term is used in the Internal Revenue Code
<br /> of 1986,as amended through the date of this agreement,on behalf of the City,and it has issued,or
<br /> 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,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 "Review Contractor"), and (iii) are in accordance with the terms and conditions of this
<br /> Agreement, the Program, and a procedural manual to be supplied by the MHFA (hereinafter
<br /> referred to as the "Procedural Manual"), the provisions of which are hereby incorporated by
<br /> reference into this 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 Review Contractor,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 herembelow,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 /> •
<br /> City Participation Program Form 93-1 1 (Ver.5/11/93)
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