Promissory Note Required Clause Samples
The 'Promissory Note Required' clause mandates that a borrower must execute a promissory note as a condition of receiving a loan or credit. In practice, this means the borrower must sign a formal written promise to repay the specified amount under agreed terms, such as interest rate and repayment schedule, before any funds are disbursed. This clause ensures that the lender has a legally enforceable document evidencing the debt, thereby reducing the risk of non-repayment and providing clear terms for both parties.
Promissory Note Required. The Lenders shall not provide loan funds to the Borrower prior to the completion and execution of the promissory note, Attachment "A" to this Agreement.
Promissory Note Required. At clos- ing, the initial homeowner shall exe- cute a nonrecourse promissory note for a term of twenty years, in a form ac- ceptable to HUD, equal to the dif- ▇▇▇▇▇▇▇ between the fair market value of the unit and the purchase price, pay- able to the Commissioner, together with a mortgage securing the obliga- tion of the note.
(i) With respect to a sale by an initial homeowner, the note shall require pay- ment upon sale by the initial home- owner, to the extent proceeds of the sale remain after paying off other out- standing debt incurred in connection with the purchase of the property, pay- ing any other amounts due in connec- tion with the sale, including closing costs and transfer taxes, and paying the family the amount of its equity in the property, computed in accordance with paragraph (k) of this section.
(ii) With respect to a sale by an ini- tial homeowner during the first six years after acquisition, the family may retain only the amount computed under paragraph (k) of this section. Any excess is distributed as provided in paragraph (1) of this section.
(iii) With respect to a sale by an ini- tial homeowner six to twenty years after acquisition, the amount payable under the note shall be reduced by 1/ 168th of the original principal amount of the note for each full month of own- ership by the family after the end of the sixth year. The homeowner may re- tain all other proceeds of the sale. sfrattini on LAPCK6H6L3 with DISTILLER
Promissory Note Required. The City shall not provide loan funds to the Borrower prior to the completion and execution of the promissory note, Attachment "A" to this Agreement.