GRANT AGREEMENT TO PROVIDE ASSISTANCE TO THE AGENCY FOR BUILDING RENOVATIONS
GRANT AGREEMENT
BETWEEN THE
CITY OF CLEARWATER
And
A SPIRITUAL CHANGE, INC.
This Grant Agreement is made and entered into between the City of Clearwater, a
municipal corporation of the State of Florida located at 112 S. Osceola Avenue,
Clearwater, FL 33758 hereinafter referred to as the City, and A Spiritual Change, Inc., a
not-for profit organization existing under the laws of the State of Florida with a principle
place of business located at 908 Pennsylvania Avenue, Clearwater, FL 33755 and
proposed renovations to their facility located at 1402 N. Martin Luther King Jr. Ave.,
Clearwater, FL hereinafter referred to as the Agency.
WHEREAS, the Agency has established programs that provide kinship support groups
and substance abuse prevention services to young people and their families in the
North Greenwood area of the City of Clearwater; and
WHEREAS, the City desires to assist the Agency with building renovations to their
facility located at 1402 N. Martin Luther King Jr. Ave, Clearwater, FL; and
WHEREAS, the City believes that providing assistance to the Agency for building
renovations at said location will benefit the Agency and the community;
NOW, THEREFORE, the parties agree as follows:
ARTICLE I. TERMS & CONDITIONS
City Council approval is a condition precedent to this Agreement. Provided such
approval is granted, this Agreement along with a mortgage and note shall be
subsequently executed. This Agreement including the conditions herein and in the
mortgage and note shall commence upon the date of execution of mortgage and note.
This Grant Agreement shall be secured by a mortgage and note for the full amount of
Twenty-Five Thousand Dollars ($25.000) in funding. See Exhibits 1 and 2
respectively. If the structure is sold or title to the property otherwise transferred within
three (3) years of commencement of this Agreement or building renovations are not
made during this three (3) year term, the Agency is responsible for a reimbursement
payment of the full amount of twenty-five thousand dollars ($25,000) back to the City.
Monies made available to the Agency but not expended in accordance with this
agreement shall be returned to the City. All improvements must adhere to the City of
Clearwater Building Codes and be done by a licensed contractor.
ARTICLE II. RESPONSIBILITIES OF THE AGENCY
1. Use and Disposition of Funds Received: Funds received by the Agency from
the City shall be used to pay for building renovations. Funds existing and not
used for this purpose at the end of this agreement term shall be deemed excess
to the intended purpose and shall be returned to the City.
2. Creation, Use, and Maintenance of Financial Records:
a) Creation of Records: Agency shall create and maintain financial and
accounting records, books, documents, and any other information
necessary to reflect fully the financial activities of the Agency relative to
said building renovations. Such records shall be available and accessible
at all times for inspection, review, or audit by authorized City
representatives.
b) Use of Records: Agency shall produce such reports that may be
required by the City and other duly authorized agencies to document the
proper and prudent stewardship and use of the monies received through
this agreement.
c) Maintenance of Records: All records created hereby are to be retained
and maintained for a period not less than five (5) years from the
termination of this agreement.
3. Liability and Indemnification: The Agency shall act as an independent
contractor and agrees to assume all risks of building renovations herein agreed
and all liability therefore, and shall hold harmless and indemnify the City, its
officers, agents, and employees from and against any and all claims of loss,
liability, and damages of whatever nature, to persons and property, including,
without limiting the generality of the foregoing, death of any person and loss of
the use of any property. This includes, but is not limited to matters arising out of
or claimed to have been caused by or in any manner related to the Agency's
activities or those of any approved or unapproved invitee, contractor,
subcontractor, or other person approved, authorized, or permitted by the Agency
in or about its premises whether or not based on negligence.
ARTICLE III. RESPONSIBILITIES OF THE CITY
1. Grant of Funds: The City agrees to provide Twenty-Five Thousand Dollars
($25.000) to fund the proposed renovations to the Agency's facility in accordance
with the terms and conditions of this agreement and subject to City Council
approval.
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ARTICLE IV. DISCLAIMER OF WARRANTIES
This Agreement constitutes the entire Agreement of the parties on the subject hereof
and may not be changed, modified, or discharged except by written Amendment duly
executed by both parties. No representations or warranties by either party shall be
binding unless expressed herein or in a duly executed Amendment hereof.
ARTICLE V. NOTICE
Any notice required or permitted to be given by the provisions of this agreement shall
be conclusively deemed to have been received by a party hereto on the date it is hand-
delivered to such party at the address indicated below (or at such other address as
such party shall specify to the other party in writing), or if sent by registered or certified
mail (postage prepaid), on the fifth (5th) business day after the day on which such
notice is mailed and properly addressed.
1. If to City, addressed to William B. Horne II, City Manager, 112 S. Osceola
Avenue Clearwater, FL 33758
2. If to Agency, addressed to Jonathan Wade Sr., Executive Director, 908
Pennsylvania Avenue, Clearwater, FL 33755
ARTICLE VII. EFFECTIVE DATE
The effective date of this agreement shall be
Qpr;J 2 ro J 2ooCo
ARTICLE VIII. CONTINGENCY
A SPIRITUL CHANGE, INC.
CLUB, INC.
CITY OF CLEARWATER, FLORIDA
By:
.tJA
By:
~~~
William B. Home II
City Manager
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Countersigned:
~~ v( !:t~
FM6k V. Hibbard
Mayor
Approved as to form:
&ZJ ?f/
Assistant City Attorney
ATTEST:
f2N c?:it~:~~~
V - City Clerk
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Exhibit 1 to GRANT AGREEMENT BETWEEN THE CITY OF CLEARWATER AND
A SPIRITUAL CHANCE, INC.
MORTGAGE
THIS MORTGAGE ("Security Instrument") is made this_day of 2006. The grantor is
A Spiritual Chanae. Inc. (Borrower). This Security Instrument is given to the City of
Clearwater, a municipal corporation existing under the laws of the State of Florida whose
address is 112 South Osceola Avenue, Clearwater, Florida 33758 (lender). In this Mortgage,
whenever the context so requires, the terms "lender" and "Borrower" shall include heirs, legal
representatives, successors and assigns of such parties.
WITNESSETH:
Borrower owes lender the principal sum of Twenty-Five Thousand Dollars (U.S. $25,000).
This debt is evidenced by Borrower's Note dated the same date as this Mortgage ("Security
Instrument"), which provides for no payments for the term of the loan if the Borrower complies
with the terms of the Note, Security Instrument, Grant Agreement. The Note provides that the
full debt shall be due and payable on the date whichever of the following is the first to occur: 36
months from the date of the Note has been executed or the date the property is transferred,
sold, assigned, or disposed of in any manner (the "Due Date" of the Note) or if the Borrower
fails to renovate and/or improve the facilities.
This Security Instrument secures to lender (a) the repayment of the debt evidenced by the
Note, with interest, if applicable, as provided in the Note, and all renewals, extensions and
Modifications of the Note; (b) the performance of Borrower's covenants and agreements under
this Security Instrument and the Note. For this purpose, Borrower irrevocably mortgages,
grants and conveys to Lender and lender's successors and assigns with power of sale, the
property located in Pinellas County, Florida, which has the address of:
1402 North Martin Luther King Avenue, Clearwater, Florida
TO HAVE AND TO HOLD this property unto lender and lender's successors and assigns,
forever, all the building renovations or improvements now or hereafter erected on the property,
and all easements, appurtenances, and fixtures now or hereafter a part of the property. All
replacements and additions shall also be covered by this Security Instrument. All of the
foregoing is referred to in this Security Instrument as the "Property".
BORROWER COVENANTS that Borrower is lawfully seized of the estate hereby conveyed and
has the right to mortgage, grant and convey the Property and other encumbrances of record
acceptable to the lender, the Property is unencumbered. Borrower warrants and will defend.
generally the title to the Property against all claims and demands, subject to such
encumbrances of record.
UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows:
1. Payment of Indebtedness. Borrower shall promptly pay, when due, the
principal, and interest (if applicable) on the debt evidenced by the Note.
2. 2. Prior Mortgages; Charges; Liens. The Borrower shall perform all of the
Borrower's obligations under this Mortgage, including Borrower's covenants to make payments
when due. Borrower shall pay all taxes, assessments, charges, fines and impositions
attributable to the Property that may attain priority over this Security Instrument.
The Borrower shall place in a subordinate position any other lien on the property and this
Security Instrument and Note shall have priority over any other lien unless the Borrower: (a)
agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to
Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in,
legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien;
or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the
lien to this Security Instrument. Except for the lien of this Mortgage, if Lender determines that
any part of the Property is subject to a lien that may attain priority over this Security Agreement,
Lender may give Borrower a notice identifying the lien. Borrower shall satisfy such lien or take
one or more of the actions set forth above within 10 days of the giving of notice.
3. Hazard of Property Insurance. Borrower shall keep the said building renovations
on the Property insured against loss by fire, hazards included within the term "extended
coverage" and any other hazards, including floods or flooding, for which Lender requires
insurance. This insurance shall be maintained in the amounts and for the periods that Lender
requires. The insurance carrier providing the insurance shall be chosen by the Borrower
subject to Lender's approval which shall not be unreasonably withheld.
All insurance policies and renewals shall be acceptable to lender and shall include a standard
mortgagee clause. All original policies of insurance required pursuant to this Security
Instrument shall be held by the Lender. Lender requires, Borrower shall promptly give. to
Lender copies of all receipts of paid premiums and renewal notices. In the event of loss,
Borrower shall give prompt notice to the insurance carrier and the Lender. Lender may make
proof of loss if not made promptly by the Borrower.
Unless Lender and Borrower otherwise,. agree in writing, insurance proceeds shall be applied to
restoration or repair of the Property" damaged, if the restoration or repair is economically
feasible and the Lender's security is not lessened. If the restoration or repair is not
economically feasible or Lender's security would be lessened, the insurance proceeds shall be
applied to the sums secured by this Security Instrument, whether or not then due, with any
excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30
days a written notice from Lender that the insurance carrier has offered to settle a claim, the
Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore
the Property or to pay sums secured by the Security Instrument, whether or not then due. The
30-day period will begin when the notice is given.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal
shall not extend or postpone the due date of the Note or change the amount of the payments.
If under paragraph 15 the Property is acquired by the Lender, Borrower's right to any insurance
policies and proceeds resulting from damage to the Property prior to the acquisition shall pass
to Lender to the extent of the sums secured by this Security Instrument immediately prior to the
acquisition.
4. Occupancy, Preservation, Maintenance and Protection of the Property; Hazard
Substances; Borrower's Loan Application. Borrower shall not destroy, damage or impair the
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Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be
in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in
Lender's good faith judgment could result in forfeiture of the Property or otherwise materially
impair the lien created by this Security Instrument or Lender's security interest. Borrower may
cure such a default and reinstate, as provided in paragraph 14, by causing the action or
proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes
forfeiture of the Borrower's interest in the Property or other material impairment of the lien
created by this Security Instrument or Lender's security interest.
Borrower shall not cause or permit the presence, use, disposal, storage, or release of any
Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to
do, anything affecting the Property that is in violation of any Environmental Law. The
preceding two sentences shall not apply to the presence, use, or storage on the Property of
small quantities of Hazardous Substances that are generally recognized to be appropriate to
normal residential uses and to maintenance of the Property.
As used in this paragraph, "Hazardous Substances" are those substances defined as toxic or
hazardous substances by Environmental Law and the following substances: gasoline,
kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile
solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in
this paragraph, "Environmental Law" means federal laws and laws of the jurisdiction where the
Property is located that relate to health, safety or environmental protection.
Borrower shall promptly give Lender written notice of any investigation, claim, demand, lawsuit
or other action by any governmental or regulatory agency or private party involving the Property
and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge.
If Borrower learns, or is notified by any governmental or regulatory authority, that any removal
or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower
shall promptly take all necessary remedial actions in accordance with Environmental Law. Prior
to taking any such remedial action, however, the Borrower shall notify the Lender.
Borrower shall also be in default if Borrower, gave materially false or inaccurate information or
statements to Lender (or failed to provide Lender with any material information) in connection
with the loan evidenced by the Note, including, but not limited to, representations concerning
Borrower's intended use of the Property.
5. Protection of Lender's Rights in the Property. If Borrower fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding
that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy,
probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do
and pay for whatever is necessary to protect the value of the Property and Lender's rights in the
Property. Lender's actions may include, appearing in court, paying reasonable attorney's fees
and entering on the Property to make repairs. Although Lender may take action under this
paragraph 5, Lender does not have to do so.
Any amounts disbursed by Lender under this paragraph 5 shall become additional debt of
Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other
terms of payment, these amounts shall bear interest from the date of disbursement at the rate
of seven percent (7%) per annum and shall be payable, with interest, upon notice from Lender
to Borrower requesting payment.
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Lender and Borrower further agree that a default hereunder shall constitute a default under this
Mortgage. In the event of a default hereunder, the Lender shall have the right to exercise all
rights and remedies under this Mortgage and Note.
6. Inspection. Lender or its agent may make reasonable entries upon and inspections
of the Property. Lender shall give Borrower notice at the time of or prior to an inspection
specifying reasonable cause for the inspection.
7. Condemnation. The proceeds of any award or claim for damages, direct or
consequential, in connection with any condemnation or other taking of any part of the Property,
or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender.
In the event the Property, or any part thereof, shall be condemned or taken, the Lender shall
have the right to demand that all money awarded for the appropriation thereof, or damage to
the Premises, shall be paid to Mortgagee up to the amount of the sums secured by this Security
Instrument, whether or not the sums are then due, with any excess paid to Borrower.
If the Property is abandoned by Borroweri, or if, after notice by Lender to Borrower that the
condemnor offers to make an award of settle a claim for damages, Borrower fails to respond to
Lender within 30 days after the date the notice is given, Lender is authorized to collect and
apply the proceeds, at its option, either to restoration or repair of the Property or to the sums
secured by this Security Instrument, whether or not then due.
Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal
shall not extend or postpone the due date of the Note or change the amount of such payment.
8. Forbearance by Lender Not A Waiver. Any forbearance by Lender in exercising
any right or remedy shall not be a waiver of or preclude the exercise of any right of remedy.
9. Successors and Assigns Bound; Joint and Several Liability; Co-Signers. The
covenants and agreements of this Security Instrument shall bind and benefit the successors
and assigns of Lender and Borrower, subject to the provisions of paragraph 13. Borrower's
covenants and agreements shall be joint and several. Any Borrower who co-signs this Security
Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to
mortgage, grant and convey the Borrower's interest in the Property under the terms of this
Security Instrument; (b) is not personally obligated to pay the sums secured by this Security
Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify,
forebear or make any other accommodations with regard to the terms of this Security
Instrument or the Note without that Borrower's consent.
10. Notices. Any notice to Borrower provided for in this Security Instrument shall be
given by delivering it or by mailing it by first class mail unless applicable law requires use of
another method. The notice shall be directed to the Property Address. Any notice to Lender
shall be given by first class mail to Lender's address stated herein or any other address Lender
designates by notice to Borrower. Any notice provided for in this Security Instrument shall be
deemed to have been given to Borrower or Lender when given as provided in this paragraph.
11. Governing Law; Severability. This Security Instrument shall be governed by
federal law and the law of the jurisdiction in which the Property is located. In the event that any
provision or clause of this Security Instrument or the Note conflicts with applicable law, such
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conflict shall not affect other provisions of this Security Instrument or the Note which can be
given effect without the conflicting provision. To this end, the provisions of this Security
Instrument and the Note are declared to be severable.
12. Borrower's Copy. Borrower shall be given one copy of the Note and of this
Security Instrument.
13. Transfer of the Property or a Beneficial Interest in Borrower. If the Borrower
transfers, assigns, sells, or in any manner disposes of all or a portion of the Property, or any
interest therein, then the sums secured by this Security Instrument will become immediately
due and payable, and such outstanding indebtedness shall bear interest at the rate of seven
percent (7%) per annum from the date of such transfer, assignment, sale or other conveyance
until paid in full.
If Lender exercises this option, Lender shall give Borrower prior written notice of acceleration.
The notice shall provide a period of time not less than 30 days from the date the notice is
delivered or mailed within which Borrower must pay all sums secured by this Security
Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender
may foreclose and invoke any other remedies permitted by this Security Instrument without
further notice or demand on the Borrower. In the event the sums are collected by law or
through an attorney at law, or under advice therefrom, the Lender will have the right to be paid
back for all of its costs and expenses in enforcing the Note and this Security Instrument, to the
extent not prohibited by applicable law.
In the event suit is instituted to foreclose or to enforce payment of the sums secured by this
Security Instrument, or to enforce performance of any covenant or obligation hereunder, Lender
shall be entitled to the appointment of a Receiver to take charge of the Property, to collect the
rents, issues and profits therefrom, and to complete any construction and care for the Property,
and such appointment shall be made by the court having jurisdiction thereof as a matter of right
to the Lender, and all rents, profits, incomes, issues and revenues of the Property are hereby
assigned and pledged as further security for payment of the sums hereby secured.
Notwithstanding Lender's right to invoke any remedies hereunder, as provided in Section 5
above, Lender agrees that it will not commence foreclosure proceedings or accept a deed in
lieu of foreclosure, or exercise any other rights or remedies hereunder until it has given at least
60 days' prior written notice.
14. Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower
shall have the right to have enforcement of this Security Instrument discontinued at any time.
Those conditions are that Borrower: (a) pays Lender all sums which then would be due under
this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default
of any other covenants and agreements; (c) pays all expenses incurred in enforcing this
Security Instrument, including, but not limited to, reasonable attorney's fees; and (d) takes such
action as Lender may reasonably require to assure that the lien of this Security Instrument,
Lender's rights in the Property and Borrower's obligation to pay the sums secured by this
Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security
Instrument and the obligations secured hereby shall remain fully effective as if no acceleration
had occurred. However, this right to reinstate shall not apply in the case of acceleration under
paragraph 13.
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15. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration
following Borrower's breach of any covenant or agreement in this Security Instrument. The
notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not
less than 30 days from the date the notice is given to Borrower, by which the default must be
cured; and (d) that failure to cure the default on or before the date specified in the notice may
result in acceleration of the sums secured by this Security Instrument, foreclosure and sale of
the Property. The notice shall further inform Borrower of the right to reinstate after
acceleration. If the default is not cured by the Borrower on or before the date specified in the
notice, then Lender at its option may require immediate payment in full of all sums secured by
this Security Instrument without further demand and may foreclose by judicial proceeding, and
may invoke the power of sale and any other remedies permitted by applicable law.
Notwithstanding Lender's right to invoke any remedies hereunder, as provided in Section 5
above. Lender shall be entitled to collection all expenses incurred in pursuing the remedies
provided in this paragraph, including, but not limited to, reasonable attorney's fees and costs of
title evidence.
16. Release. Upon payment of all sums secured by this Security Instrument, Lender
shall release this Security Instrument without charge to Borrower. Borrower shall pay any
recordation costs.
17. Notice to Borrower. Do not sign this Mortgage if it contains blank spaces. All
spaces should be completed before you sign.
BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in
this Security Instrument.
Witnesses:
Borrowers:
fi
kJ.
, -.::fa "--' ..~. fl.. <-J ,""...".<?
~y.G(["V -r,v<. 1':>,Ii."I2.<1'&"-.
Social Security Number:
Printed Name:
(Non-Purchasing Spouse)
Social Security Number:
Printed Name:
(Co-Borrower)
Social Security Number:
Printed Name:
State of:
County of:
Florida)
Pinellas)
~ t?1fP--', I ::;1 cH'V.lo
I hereby certify that on this day, before me, an officer duly authorized in the state aforesaid and
in the county afo.r.es~'rl to take ac~noWJ.ed~ments, personally appeared JTo~ A----tk MJ {( urrr,~/
~ '.,., ~. ~J) ,(L.7JA\ Ir,Nv:Jl fv"C- P
1.:::.-.. -l.l\r&e1.M./ , W 0 Is persona y Known 0 me or who has produced /1-_ U L--...
as identification, whgsJjfl/ciid--Ret take an oath, and who executed the foregoing instrument and
acknowledged before me that t1-e.executed the same for the purpose therein expressed.
6
~
Witness by hand and official seal in the county and state aforesaid this ':; day of lrl2-~ L,
2006.
')/710"-,;~ -fF ;3=~ 0< '""-
Notary Public
My Commission expires:
-.4 ~.
~,,;~. . MUNlCA L. BERGERON 1
i.. l~"*'J:! r~!,.\ ,~~ COMMISSION #..0.0 1.1760. 9 .
~ ~: :~~ EXPIRES May 14, 2006
~... ;~:. oed TtmJ No1llry Public Unoe1wnters
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Exhibit 2 to GRANT AGREEMENT BETWEEN THE CITY OF CLEARWATER AND
A SPIRITUAL CHANGE, INC.
NOTE
$ 25.000.00
Property Address: 1402 North Martin Luther Kin!! Avenue. Clearwater. Florida (the "Property)
1. BORROWER'S PROMISE TO PAY
For value received, the undersigned promises to pay the sum of Twentv-Five Thousand Dollars
($25,000.00) in U.S. dollars (this amount is called "principal") to the order of the Lender. The Lender is
the City of Clearwater, a municipal corporation organized and existing under the laws of the State of
Florida and located at 112 S. Osceola Avenue, Clearwater, Florida 33758. The Lender or anyone who
takes this Note by transfer and who is entitled to receive the value as evidenced by this Note is called the
"Note Holder".
2. INTEREST
There will be no interest charged during the life of this loan.
3. PAYMENTS
The payments on this loan shall be deferred during the entire term of the loan provided that the borrower
does not default. If the Borrower has failed to make the intended building renovations at the end of three
years from the date of this Note, the full amount of this Note must be repaid to the Lender.
During the first three years from the date this Note is executed, if the Borrower, or any affiliated organization/legal
entity, sells or transfers the property to any non-affiliated organization, the full amount of this Note must be repaid to
the Lender.
The Note Holder shall have the optional right to declare the amount of the total balance hereof to be due
and forthwith payable in advance of the Due Date upon the occurrence of any Event of Default.
The indebtedness evidenced by this Note shall be in a first position and have priority to any other
financial obligations that may hereafter be imposed and shall be subordinate to this indebtedness
evidenced by this Note which is secured by a mortgage on the Property.
4. BORROWER'S RIGHT TO PREPAY
The undersigned has the right to prepay the balance due on this Note according to the amount owed as
listed below. A payment of principal only is known as a "prepayment". When a prepayment is made, the
undersigned must notify the Note Holder, in writing, that they are doing so. Full prepayment or partial
prepayments may be made without paying any prepayment charge. The Note Holder will use all
prepayments to reduce the amount of principal that is owed under this Note. If a partial prepayment is
made, there will be no change in the Due Date, unless the Note Holder agrees, in writing, to this change.
5. LOAN CHARGES
If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that
the interest or other loan charges collected in connection with this loan exceed the permitted limit, then
any sum already collected which exceeded permitted limits shall be credited as a payment of principal,
unless the undersigned shall notify the Note Holder, in writing, that the undersigned elects to have such
excess sum returned to it forthwith.
6. BORROWER'S FAILURE TO PAY AS REQUIRED
(A) Default
This note shall become due and payable with the full amount of this Note repaid to the Lender if the
borrower should sell or otherwise transfer title of the property during the first three years. Additionally,
if the Borrower has failed to make intended renovations and/or improve the Property at the end of three
years from the date of this Note, the full amount of this Note shall become due and payable with the full
amount of this Note repaid to the Lender.
(B) No Waiver By Note Holder
The remedies of the Note Holder, as provided herein, or in the Security Instrument shall be cumulative
and concurrent and may be pursued regularly, successively or together, at the sole discretion of the Note
Holder, and may be exercised as often as occasion therefore shall arise. No act of omission or
commission of the Note Holder, including specifically any failure to exercise any right, remedy or
recourse, shall be deemed to be a waiver or release of the same, such waiver or release to be effected
only through a written document executed by the Note Holder, and then only to the extent specifically
recited therein. A waiver or release with reference to anyone event shall not be construed as continuing
as a waiver or release of any subsequent right, remedy or recourse as to a subsequent event. Even if, at a
time when the undersigned is in default, the Note Holder does not require immediate payment in full, as
described above, the Note Holder will still have the right to do so if a default occurs at a later time.
(C) Payment of Note Holder's Costs and Expenses
In the event the Note is collected by law or through an attorney at law, or under advice therefrom, the
Note Holder will have the right to be paid back for all of its costs and expenses in enforcing this Note to
the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorney's
fees, which are defined to include, without limitation, all fees incurred in all matters of collection and
enforcement, construction and interpretations, before, during and after trial, proceedings and appeals, as
well as appearances in reorganization or similar proceedings, and the cost of paraprofessional personnel
working under supervision of an attorney.
7. GIVING OF NOTICES
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Unless applicable law requires a different method, any notice that must be given under this Note will be
given by delivering it or by mailing it by first class mail to the undersigned at the Property address noted
above.
Any notice that must be given to the Note Holder under this Note will be given by delivering it or by
mailing it by first class mail to the Note Holder, at the address stated in Section I or at a different address
if you are given a notice of that different address.
8. OBLIGATIONS OF PERSONS UNDER THIS NOTE
If more than one person signs this Note, each person is fully and personally obligated to keep all of the
promises made in this Note, including the promise to pay the full amount owed. Any person who is a
guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over
these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also
obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under
this Note against each person individually or against all of us together. This means that anyone of us
may be required to pay all ofthe amounts owned under this Note.
9. WAIVERS
All persons now or at any time liable, whether primarily or secondarily, for the payment of the
indebtedness hereby evidenced, for themselves, their heirs, legal representatives, successors and assigns
respectively, hereby (a) expressly waive the rights of presentment, demand for payment, notice of
dishonor, protest, notice of nonpayment or protest, and diligence in collection. "Presentment" means the
right to require the Note Holder to demand payment of amounts due. "Notice of Dishonor" means the
right to require the Note Holder to give Notice to other persons that amounts due have not been paid. (b)
consent that the time of all payments or any part thereof may be extended, rearranged, renewed or
postponed by the Note Holder hereof and further consent that the collateral security or any part thereof
may be released, exchanged, added to or substituted for by the Holder hereof, without in anyway
modifying, altering, releasing, affecting or limiting their respective liability or the lien of any security
instrument; (c) agreed that the Note Holder, in order to enforce payment of this Note, shall not be
required first to institute any suit or to exhaust any of its remedies against the undersigned or any other
person or party to become liable hereunder. This Note and the instruments securing it have been
executed and delivered in, and their terms and provisions are to be governed and construed by the laws of
the State of Florida.
10. UNIFORM SECURED NOTE
This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the
protections given to the Note Holder under this note, a Mortgage (the "Security Instrument"), dated the
same date as this Note, protects the Note Holder from possible losses which might result if the
undersigned does not keep the promises which are made in this Note. The Security Instrument described
how and under what conditions the undersigned may be required to make immediate payment in full of
all amounts owed under this Note. The Note Holder may, at its option, require immediate payment in full
of all sums secured by this Security Instrument. However, this option shall not be exercised by the Note
Holder if exercise is prohibited by federal law as of the date of this Instrument. If the Note Holder
exercises this option, the Note Holder shall give the Borrower and prior written notice of acceleration.
The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed
within which the Borrower must pay all sums secured by this Subordinate Security Instrument. If the
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Borrower fails to pay these sums prior to expiration of this period, the Note Holder may invoke any
remedies permitted by this Security Instrument without further notice or demand on the Borrower.
11. If more than one party shall execute this Note, the term "undersigned", as used herein, shall mean
all parties signing this Note and each of them, who shall be jointly and severally obligated hereunder.
In this Note, whenever the context so requires, the neuter gender includes the feminine and/or masculine,
as the case may be, and the singular number includes the plural.
12. COPY RECENED.
Borrower hereby acknowledges receipt of a copy of this instrument.
Notice to Borrower
Do not sign this Note if it contains blank
spaces. All spaces should be completed before you sign.
IN WITNESS WHEREOF, the undersigned have executed this Note on the day and year first above
mentioned.
(seal)
Borrower
(seal)
Borrower
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