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11110
<br /> 3. Variance in Commitment Amount. A variance of Fifteen Thousand and No/100
<br /> Dollars($15,000.00)in the total principal amount of Mortgages purchased under the Program
<br /> Commitment Agreement,above or below the Commitment Amount,shall be deemed by the MHFA
<br /> to constitute compliance with the Program Commitment Agreement.
<br /> 4. Commencement of Activity. Upon the acceptance,execution, and delivery of the
<br /> Program Commitment Agreement by MHFA to the City,the City shall select and designate Lender,
<br /> and shall have Lender enter into and execute a Lender Application-Commitment Agreement in a
<br /> form to be supplied by the MHFA.
<br /> 5. Commitment Term. The term of the Program Commitment Agreement and the
<br /> City's participation in the Program (hereinafter referred to as the "Commitment Term")shall
<br /> commence on a date to be selected and specified by the MHFA,and shall continue for a period of
<br /> time to be established by the MHFA,in its sole option and discretion,provided,however,such
<br /> time period shall not be less than Six(6)months. The MHFA shall transmit a written notification
<br /> to the City of the date on which the Commitment Term shall commence. The Program
<br /> Commitment Agreement,and the City's participation in the Program,shall automatically terminate,
<br /> without the need for any action by 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 City for a period of time to be established by the MHFA,in its sole
<br /> option and discretion,provided,however,such time period shall not be less than Four(4)months
<br /> (hereinafter referred to as the"Set-Aside Term")commencing on a date to be selected and specified
<br /> by the MHFA. The MHFA shall transmit a written notification to the City of the date on which the
<br /> Set-Aside Term shall commence.
<br /> Any portion of the Commitment 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 Program in accordance with the provisions contained in the Procedural
<br /> Manual. In addition,any portion of the Commitment Amount reserved for Mortgages which are
<br /> not delivered to the MHFA for purchase within the time period delineated in the Procedural Manual
<br /> for such purchase, shall be cancelled and returned to the MHFA for redistribution under the
<br /> Program, and any funds contained in the Program at the end of the Commitment Term shall
<br /> become funds of the MHFA,and transferred to whatever program the MHFA,in its sole option
<br /> and discretion,may designate.
<br /> 7. Commitment Fees. No commitment fee shall be payable by the City for the
<br /> commitment by the MHFA to purchase qualifying Mortgages.
<br /> 8. Purchase Price. The purchase price of each Mortgage to be purchased by MHFA
<br /> hereunder shall be as set forth in 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 dole option and discretion,by way of a written statement to the City and the
<br /> Lender;provided,however,any change in interest rate shall only apply to Mortgages for which an
<br /> individual commitment is issued after the City and the Lender have received such notification of
<br /> interest rate change. Mortgages shall meet all requirements of the Program,and those set forth in
<br /> the Program Commitment Agreement,the Procedural Manual,and either the Originating Lender
<br /> Application-Commitment Agreement or the Direct Seller Application-Commitment Agreement,
<br /> whichever is applicable.
<br /> 10. Area Limitation. The City hereby specifically agrees that the MHFA shall,pursuant
<br /> to the Program Commitment Agreement,be required to purchase only those Mortgages which are
<br /> for residences located within a geographic 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 93-1 2 (Ver-5/11/93)
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