7.1 HRSR 10-03-2016 - Laserfiche WebLink

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Mortgage and Repayment Agreement (Elk River HRA Owner-Occupied Housing Rehabilitation Program) This mortgage is exempt from Mortgage Registration Tax imposed by Minnesota Statutes,§287.035, pursuant to Minnesota Statutes,§287.04,because the principal amount of the mortgage loan referred to herein is made under an affordable housing program and the mortgagee is the Housing and Redevelopment Authority in and for the City of Elk River,a Minnesota body corporate and politic. THIS MORTGAGE AND REPAYMENT AGREEMENT(this"Mortgage"), is made and entered into this 16th day of September,2016 (the"Effective Date"),by and between Erin Thomas Cunningham and Tracy Lorraine Cunningham, a married couple(the"Owners")the owners of the property located at 1420 5th St. NW,Elk River.MN 55330,and legally described as set forth in the attached Exhibit A(the"Property")and the Housing and Redevelopment Authority in and for the City of Elk River,(the"HRA"),having its principal office at 13065 Orono Pkwy NW,Elk River,MN 55330. NOW THEREFORE, in consideration of the Installment Loan described below and for other good and valuable consideration,the parties do hereby agree as follows: 1. In accordance with the Elk River Owner-Occupied Housing Rehabilitation Policies and Procedures (the"Procedures")and the Owner's Application dated July 17th,2016(the"Application"),both of which are incorporated herein by reference as if fully set forth herein,the HRA has agreed to make to Owner a Housing Rehabilitation Loan,(the"Installment Loan"),relating to the Property, in the amount of Twenty-Two Thousand Sixty-Nine and 00/100 ($22,069.00) Dollars. The Installment Loan shall be disbursed directly to the contractor performing the work on the Property described in the Application in accordance with the Procedures. The Owner agrees to repay to the HRA in the Installment Loan plus interest thereon at the rate of 2.50%per annum in installments of principal and interest of$208.04 per month,beginning on December 1$t,2016 through and including November 1st 2026(the"Final Maturity Date")in accordance with the amortization schedule and the Truth in Lending Statement signed by Owner both attached as Exhibit B. The Owner may prepay the Installment Loan in whole, together with accrued interest thereon, to the HRA on any business day. 2. Owner covenants and agrees with the HRA that if the Property is transferred or otherwise conveyed, voluntarily or involuntarily,either while the Owner is living or by reason of the death of the Owner prior to the Final Maturity Date, the Installment Loan and all accrued interest thereon shall be immediately due and payable and shall be repaid in full to the HRA. 3. As security for Owner's obligation to repay the Installment Loan and accrued interest thereon, and the cost, including reasonable attorney's fees, of collecting the same,and subject to the terms and conditions of this Mortgage,Owner hereby grants,and HRA shall and hereby does have,a statutory mortgage on the Property in accordance with Minnesota Statutes,Section 507.15.