Residual Receipts Note (Limited Dividend Borrowers) |
U.S. Department of Housing and Urban Development Office of Housing |
OMB Approval No. 2502-0598 (Exp. //) |
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Project Name: ______________
HUD Project No.: ____________
For value received _______________________________________________ (“Maker”) promises to pay to (“Payee”) the sum of _______________________________________________________________ Dollars ($___________) at __________________________________________________
with interest at the rate of __________% (______________ per centum) per annum, which shall not be compounded, subject to the following:
1. The balance of principal, if any remaining unpaid, plus accrued interest, shall be due and payable on the maturity date (“Maturity Date”), which is hereby defined as the date on or after the maturity date of that certain Loan financing the Project and secured by the Security Instrument dated _____________, 20__ in the principal amount of $__________ (as the same may be now or hereafter amended, the “Security Instrument”) originally in favor of ____________(together with its successors and assigns “Lender”). Such Loan is insured by HUD. Any capitalized term or word used herein can be found in this Residual Receipts Note, the Security Instrument, the Note, or the Regulatory Agreement between Borrower/Maker and HUD.
2. If the Note secured by the Security Instrument is prepaid in full, the holder of
this Residual Receipts Note, at its option and without notice, may declare the
whole principal sum or any balance thereof, together with interest thereon,
immediately due and payable. Notwithstanding the foregoing, in the event the
Indebtedness is paid in full by way of any substitute indebtedness of Maker
secured by any substitute security instrument insured or held by HUD under
Section 223 (a)(7) of the National Housing Act, as amended, the maturity date of
this Residual Receipts Note shall be automatically extended to the maturity date
of the substitute security instrument without the consent of Payee.
3. So long as HUD is the insurer or holder of the Note secured by the Security
Instrument, payments due under this Residual Receipts Note shall be payable
only from Residual Receipts or as described in Paragraph 5 below. The
restriction on payment imposed by this paragraph shall not excuse any default
caused by the failure of Maker to pay the indebtedness evidenced by this
Residual Receipts Note.
4. Prepayments to principal and interest on this Residual Receipts Note may
be made only from Residual Receipts and only after obtaining the prior written
approval of HUD, except as permitted in Paragraph 5 below. No prepayments
shall be made until after final endorsement for mortgage insurance by HUD of
the Note and after the end of a semiannual or an annual fiscal period of Maker.
5. Notwithstanding the provisions of paragraphs numbered 3 and 4, above,
Maker also may make payments due hereunder from sources other than Project
income or Project Assets.
6. This Residual Receipts Note is non-negotiable.
7. In the event that the maturity date of the Note and the Security Instrument is
extended and such extension is approved by HUD, then, in such event, the
Maturity Date of this Residual Receipts Note shall automatically be extended to
the extended maturity date of the Note and the Security Instrument without the
consent of Payee.
8. Any unauthorized payments on this Residual Receipts Note, as determined
by HUD, shall be returned to the Project.
9. This Residual Receipts Note is made and delivered in payment of
__________________________ _________________________________ _____________________
10. Presentation, demand and notice of demand, non-payment and protest of
this Residual Receipts Note are waived.
11. The terms and provisions of this Residual Receipts Note are also for the
benefit of and are enforceable by HUD against any party hereto, their successors
or assigns.
IN WITNESS WHEREOF Maker has signed this Residual Receipts Note on this day of , 20 .
MAKER:
_______________________________
By: ____________________________
Title: ___________________________
Payee hereby certifies that this is a bona fide transaction and that Payee fully understands all the requirements of this Residual Receipts Note, and that no prepayment of principal or interest shall be accepted without evidence that HUD has authorized such prepayment, unless such prepayment is from non-Project sources as described in Paragraph 5. If an unauthorized prepayment is accepted, the funds shall be returned to the Project immediately upon discovery.
PAYEE:
________________________________
By:
Name and Title:
Previous editions are obsolete |
Residual Receipts Note (Limited Dividend Borrower) |
HUD-91712M |
File Type | application/vnd.openxmlformats-officedocument.wordprocessingml.document |
File Modified | 0000-00-00 |
File Created | 0000-00-00 |