N.J. Admin. Code § 5:80-26 app G
FORM OF NOTE FOR PAYMENT OF RECAPTURE AMOUNT FOR A 95/5 UNIT
State of New Jersey
Department of Community Affairs
Housing and Mortgage Finance Agency
95/5 Mortgage Note
In Connection With Payment of Amounts Due
Upon First Non-Exempt Sale
After Expiration of Control Period
THIS NOTE, is dated as of ....... For value received ...... (referred to "Owner") promises to pay to THE STATE OF NEW JERSEY, acting by and through its Department of Community Affairs, which has its principal offices at 101 South Broad Street in the City of Trenton, County of Mercer, State of New Jersey (the "STATE"), and which is acting as receiving agent for the [MUNICIPALITY], the amounts specified in this Note and promises to abide by the terms contained below.
Article 1. REPAYMENT MORTGAGE
As security for the payment of amounts due under this Note and the performance of all promises contained in this Note, the Owner is giving the State a "Repayment Mortgage To Secure Payment of Amounts Due Upon First Non-Exempt Sale After Expiration of Control Period" (the "MORTGAGE"), dated ......., of the property described below (the "PROPERTY"). The Mortgage covers real estate owned by the Owner. The Mortgage will not be subordinate, and will not be subordinated by the State, to any mortgage, refinancing, equity loan, secured letter of credit, or any other obligation secured by the Property, except with respect to (a) any such obligation which was duly recorded prior to the recording hereof, and (b) any such obligation which, when added to all other such obligations recorded against the Property, shall result in total debt secured by the Property being an amount less than the MRP that would be applicable were the Control Period still in effect, as those terms are defined in Article 2 of the Mortgage.
Article 2. OWNERS PROMISE TO PAY AND OTHER TERMS
Upon the first non-exempt sale of the Property after the date of this Note, Ninety-Five Percentum (95%) of the difference between (i) the actual sale price and (ii) the regulated maximum sales price that would be applicable were the Control Period still in effect, as set forth in Section 5:93-9.8(b)(2) of the Substantive Rules of the New Jersey Council On Affordable Housing as in effect at the time the Property was first restricted as part of the Affordable Housing Program in October of 1990, shall be paid at closing to the State of New Jersey, acting as receiving agent for the local municipality.
Article 3. PROPERTY DESCRIPTION
All of the land and improvements thereon located in the municipality of ...... in the County of ......., State of New Jersey, described more specifically as Block No. ... Lot No. ..., and known by the street address: .......
Article 4. WAIVER OF FORMAL ACTS
The Owner waives its right to require the State to do any of the following before enforcing its rights under this Note:
| 1. | To demand payment of amount due (known as Presentment). |
| 2. | To give notice that amounts due have not been paid (known as Notice |
| of Dishonor). | |
| 3. | To obtain an official certificate of non-payment (known as Protest). |
Article 5. RESPONSIBILITY UNDER NOTE
All Owners signing this Note are jointly and individually obligated to pay the amounts due and to abide by the terms under this Note. The Authority may enforce this Note against any one or more of the Owners or against all Owners together.
The Owner agrees to the terms of this Note by signing below.
ACKNOWLEDGEMENT
Owner acknowledges receipt of a true copy of the Mortgage and this Note at no charge.
| Dated: | |
| ATTEST: | |
| By: | .................. |
| Signature | |
| (Owner) | |
| .................. | |
| Signature | |
| (Co-Owner) | |
| STATE OF NEW JERSEY | ) |
| ) ss: | |
| COUNTY OF ................................. | ) |
On this the ... day of ......., 20... before me came ......., who acknowledges and makes proof to my satisfaction that she is the Owner named within this Note, and that she has executed said Note for the purposes set forth therein, sworn to and subscribed by her in my presence on this date.
Sworn to and subscribed before me this the ... day of ......., 20...
| ............................................................................. |
| A Notary Public/Attorney of the State of New Jersey |
N.J. Admin. Code 5:80-26 app G
See: 36 New Jersey Register 3655(a), 36 New Jersey Register 5713(a).