EXEMPT M.S.287.04

REPAYMENT NOTE AND GRANT OF LIEN ON REAL PROPERTY

RAMSEY COUNTY FIRSTHOME PROGRAM

THIS REPAYMENT NOTE AND GRANT OF LIEN ON REAL PROPERTY (hereinafter the “Repayment Note”), is executed and delivered this day of , by (a)(hereinafter the “Owner”).

WHEREAS, Ramsey County through the Community and Economic Development Department of the County of Ramsey, a body politic and corporate of the State of Minnesota (hereinafter “Ramsey County”), has agreed to provide aFirstHome Program deferred loan in the amount of Ten (Thousand) and 00/100 Dollars ($10,000.00) (hereinafter “Loan”), upon the condition that Owner execute and deliver this Repayment Note.

As security for Owner’s obligation of repayment, and subject to the terms and conditions of this Repayment Note, Owner hereby grants, bargains and conveys to Ramsey County and Ramsey County shall and hereby does have, a lien on the real estate hereinafter described in the full amount necessary to satisfy said repayment obligation and collection costs, including reasonable attorneys’ fees. The real estate subject to said lien is situated in the County of Ramsey, and is legally described as:

…, according to the recorded plat thereof, and situated in Ramsey County, Minnesota.

(hereinafter the “Mortgaged Property”).

NOW THEREFORE, Owner agrees and covenants with Ramsey County to abide by the following statutory and additional covenants:

  1. That if all or any portion of legal or equitable interest in the Mortgaged Property is sold, transferred or otherwise conveyed, voluntarily or involuntarily, either while the Owner is living or by reason of death of the Owner, or when the Mortgaged Property ceases for any reason to be the Owner’s principal residence the entire Loan amount shall be due. The maturity date of this loan, running concurrently with the First Mortgage, is .

Any such repayment shall be made to Ramsey County not later than the 30th day following such sale, transfer or other conveyance, or following the date upon which the Mortgaged Property ceases to be the Owner’s principal place of residence, or such later date or dates as Ramsey County, in its sole discretion, may designate. In the event that the net proceeds of the sale, transfer or other conveyance are not sufficient for Owner to repay Ramsey County the full amount due as stated above, Ramsey County shall share the net proceeds in accordance with the formulas set forth in 24 CFR 92.254(a)(5)(ii)(A)(3) (2009).

  1. The Mortgaged Property described herein is the principal residence of the Owner as of the date of this Repayment Note, and Owner has no present intention to rent, sell, assign, or transfer interest of the Owner in said Mortgaged Property;
  1. The proceeds of the Loan will be used only as permitted according to the HOME Program Guidelines;
  1. Owner has made no material misstatements of fact in connection with Owner’s application for the Loan;
  1. Owner shall pay principal and interest on prior mortgages and/or land sales contracts and property taxes;
  1. Owner shall keep the premises in good repair and shall maintain compliance with all applicable State and local housing and health codes and shall not commit waste;
  1. Promptly after the date of any sale, transfer or other conveyance of the Mortgaged Property or promptly after the date upon which Mortgaged Property ceases to be Owner’s principal place of residence (or, in the event of a sale by contract for deed, at least ten (10) days prior to such date of sale), Owner or his/her heirs, executors, or representatives, shall give the County notice thereof.
  1. Owner shall keep the building insured against loss by fire and other hazards for at least the sum of the full insurable value of the Mortgaged Property and include replacement cost clause and identify Ramsey County as additional insured.
  1. Deed restrictions, covenants running with the land and/or running with the mortgaged property will terminate upon the occurrence of any of the following termination events: foreclosure or transfer in lieu of foreclosure. Recapture of this loan must meet the requirements of Home regulations at 24 CFR 92.254.

Owner further specifically covenants and agrees with Ramsey County that violation of any of the covenants herein numbered two (2) through eight (8) shall constitute an event of default, and that said default shall require repayment of the Loan in the manner provided under paragraph one (1), and in accordance with and under all terms and provisions set forth herein.

If this Repayment Note is executed by a Contract for Deed Vendor, such execution shall be for the purpose of subjecting the interest of said Vendor in the Mortgaged Property to the lien of this Repayment Note. Such execution shall not constitute personal liability thereon. Any conveyance of Mortgaged Property by Contract for Deed Vendee shall be subject to said Repayment Note for so long as the Loan is unpaid and outstanding.

This Repayment Note and Grant of Lien shall run with the Mortgaged Property and shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, representatives, successors and assigns. All covenants and agreements of the Owner shall be joint and several.

In the event Owner or his/her heirs, executors, or representatives shall fail or refuse to make a required repayment within said limited period, or shall fail to perform according to the provisions of any other covenant, Ramsey County may, with or without notice to Owner, foreclose said lien by action or advertisement and retain statutory costs and attorneys’ fees in accordance with the terms of Minnesota law.

IN WITNESS WHEREOF, the undersigned has/have executed and delivered this Repayment Note and Grant of Lien as of the day and year first above written.

STATE OF MINNESOTA )

)ss.

COUNTY OF RAMSEY )

On thisday of 2012, before me, a Notary Public within and for said County, personally appeared , (a single person) to me known to be the person(s) described in and who executed the foregoing instrument and acknowledged that he/her/they executed the same as his/her/their free act and deed.

Notary Public

DRAFTED BY:MORTGAGEE’S ADDRESS:

Ramsey County Attorney’s OfficeRamsey County

50 W. Kellogg Blvd., Suite 560Community & Economic Development

St. Paul, MN 55102250 Courthouse, 15 W. Kellogg Blvd.

St. Paul, MN 55102

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