Second Mortgage Note

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HARTFORD HOUSING AUTHORITY
Second Mortgage Note

*, Connecticut

$*

*, l99*

FOR VALUE RECEIVED, the undersigned (hereinafter called the "maker") promise* to pay to the HOUSING AUTHORITY OF THE CITY OF HARTFORD, a public body politic and corporate of the City of Hartford, organized and existing under Chapter 128 of the General Statutes of Connecticut, or order, (hereinafter called the "holder") at its office at 475 Flatbush Avenue, Hartford, Connecticut 06106, or at such other place as the holder hereof may designate in writing, the principal sum of * ($*) DOLLARS; together with all taxes assessed hereon against the holder hereof; and together with all costs of collection, including a reasonable attorney’s fee, if this note shall be referred after default for collection or if an action of foreclosure shall be instituted after default on this note or any mortgage securing this note.

MAKER’S RIGHT TO PREPAY. The maker hereof reserves the right to pay this note in part or in full at any time after the third anniversary hereof without penalty.

WAIVERS. Presentment for payment, protest, notice of protest, demand and notice of non-payment are hereby waived.

OTHER PROMISES OF MAKER. The maker hereof agrees to pay all taxes and assessments on the mortgaged property; to keep the same free from mechanic’s liens; to keep in a good state of repair all buildings or personal mortgaged premises; to keep the same insured against loss by fire or otherwise, in such forms of insurance as may be required by the holder hereof; to keep and observe all of the covenants and conditions binding upon such owner under the deed from original holder hereof to the maker and, if there shall be a prior mortgage or mortgages on the mortgaged premises, to perform all agreements contained in such prior mortgage or mortgages and the note or notes secured thereby.

DUE ON TRANSFER CLAUSE. It is understood and agreed that in the event the owners of the equity of redemption of the premises mortgaged to secure this note shall sell said premises to any purchaser except one approved in writing by the holder hereof, the entire principal sum shall immediately thereafter, at the option of the holder hereof, become due and payable. As used in the preceding sentence, "sell" shall include any lease, license or occupancy agreement, and any transfer by gift, devise or the laws of intestacy to any person who is not the spouse or descendant of the maker (or one of the makers if there shall be more than one maker) or who does not make the said premises his principal residence at the time of such transfer, and the transferee shall be deemed the "purchaser."

CHANGE IN HOUSEHOLD COMPOSITION AND INCOME. In the event that, as the result of one or more additional individuals becoming members of the maker’s household, there shall be an increase in the maker’s household income, and on each succeeding occasion on which there shall be such an event, the maker agrees promptly (1) to give holder notice of the occurrence of such event, (2) within sixty (60) days after the additional individual commences residency at the premises, to apply, together with the individual(s) having income in the household as co-borrower(s), to an institutional lender for a first mortgage loan in the maximum amount supportable by the maker’s household income at such time, using a 35% maximum monthly housing expense test (under which mortgage interest and principal, property taxes, private mortgage insurance and homeowners’ insurance [including fire, casualty and liability coverages] and utility charges [including gas, water, and electric charges] shall be included in determining monthly housing expenses) and shall provide the holder financial statements or affidavits, copies of the commitment, appraisal report, tax returns, paycheck stubs and any other documentation it reasonably requests to determine the purchaser’s compliance with this requirement and (3) within ninety (90) days after the additional individual commences residency at the premises to consummate such mortgage loan and use the entire proceeds thereof, net of closing expenses, to prepay the indebtedness evidenced hereby. For purposes of verifying Maker’s compliance with its agreements in this paragraph, Maker agrees to submit, and to cause each member of maker’s household residing at the premises to submit, within thirty (30) days after the holder hereof shall request the same in writing, sworn affidavits and/or financial statements, together with copies of tax returns, paycheck stubs and any other documentation holder reasonably requests to verify the number, identity and income of persons residing at the premises. It is further understood and agreed that in the event the owners of the equity of redemption of the premises mortgaged to secure this note shall fail to perform any of the obligations contained in this paragraph, and such failure shall continue for thirty days after the holder hereof has given such owners notice of such failure, the entire principal sum shall immediately thereafter, at the option of the holder hereof, become due and payable.

RESTRICTIONS ON OTHER MORTGAGES. It is further understood and agreed that in the event the owners of the equity of redemption of the premises mortgaged to secure this note shall without the prior written consent of the holder, further encumber such premises, the entire principal sum shall immediately thereafter, at the option of the holder hereof, become due and payable.

INTEREST. In the event the maker shall offer for sale, or shall receive a bona fide offer to purchase, the premises mortgaged to secure this note within the three year period after the date of this note, and such offer is accepted (even if such acceptance or the conveyance of title is after the third anniversary of the date of this note) the maker shall pay the holder hereof, as interest, an amount equal to one-half the positive difference, if any, between (1) the purchase price as offered and accepted at such time, minus (2) the purchase price of such premises in the original purchase and sale transaction between the maker and the original holder of this note. Such interest shall be payable immediately upon the conveyance of title to such premises in addition to any mandatory payment of principal hereunder.

INTEREST AFTER MAKER’S DEFAULT. In the event this note shall become due and payable pursuant to either of the two preceding paragraphs, the maker shall pay interest to the holder hereof from the date the principal becomes due until it is paid in full calculated at a variable rate of interest equal to four (4%) per cent per annum above the "Prime Rate" of interest charged by major United States banks as reported in the "Money Rates" column of the Wall Street Journal or, if such column or newspaper is no longer published or the term "Prime Rate" is no longer in common usage, an equivalent published rate selected by the holder in good faith. No interest shall accrue prior to the time this note shall become due and payable.

FINAL MATURITY. If this note shall not earlier have become due and payable, it shall become due and payable on the thirtieth anniversary of its making, provided, however, that if the maker hereof at the time of such maturity is not in material default of any of the covenants and conditions contained in the deed from original holder hereof to the maker, the recourse of the holder shall be limited to the interest of the maker in the premises mortgaged to secure this note and the maker shall not be liable for any deficiency.

LIABILITY JOINT AND SEVERAL. If there shall be more than one maker of this note, the obligation of the undersigned shall be joint and several.

 

__________________________________

*

__________________________________

*

This note is secured by a mortgage

on property located at *,

Hartford, Connecticut.

 

I am an attorney admitted to practice

in Connecticut and represented the maker

of the foregoing note in the transaction of

which it is a part.

 

___________________________________

© 2018-2022 The Housing Authority of the City of Hartford

180 John D. Wardlaw Way Hartford, CT 06106  Telephone 860-723-8400
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