R2005-112 AUTHORIZING THE PARTICIPATION IN THE ILLINOIS HOUSING DEVELOPMENT AUTHORITY

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subparagraph, "Net Proceeds" shall mean the proceeds of sale less (x) documented capital improvement costs incurred by the Homebuyer, (y) principal payments and (z) the Homebuyer's initial contribution to the cost of acquiring the Residence. As used herein,the term "Permitted Refinancing" shall mean a refinancing to lower the interest rate, decrease the loan term or lower the monthly payment of such first mortgage loan, but not a refmancing that increases the outstanding balance of such first mortgage loan, increases the interest rate or by any other means reduces borrower equity in the Residence or increases borrower obligations. Any Permitted Refinancing must be approved by the Sponsor, in writing, in advance. If none of the events described in clauses(i), (ii), (iii) or (iv) above occurs prior to the expiration of the Recapture Period, or if any sale, conveyance or transfer of the Residence occurs due to a foreclosure or deed in lieu of foreclosure as aforesaid, the Loan shall be forgiven in its entirety. If the Loan has an original principal amount of less than Fifteen Thousand Dollars ($15,000), then the outstanding principal balance of the Loan shall be reduced by the forgiveness of one-sixtieth (1/60`�') of its original principal balance at the end of each full month of the Loan. (d) Loan Documents. Upon the Sponsor's approval of the Project, the Owner shall deliver to the Sponsar executed copies of the following documents, in the numbers set forth below, and such other documents as the Sponsor may require, in its sole discretion, all executed in the manner indicated therein, and in form and substance acceptable to the Sponsor(collectively, including this Agreement, "Loan Documents"): (i) One (1) executed promissory note in the amount of the Loan in favor of the Sponsor in the form attached hereto as Exhibit B("Note"); (ii) Two (2) executed Recapture Agreements between the Owner and � the Sponsor in the form attached hereto as Exhibit A ("Recapture Agreement") that shall be recorded in the county in which the Residence is located; (iii) The Homebuyer Affidavit in the form attached hereto as Exhibit C; and (iv) Any and all other documents and showings requested by the Sponsor. (c) Pavment. Any portion of the Loan required for acquisition costs shall be disbursed at the closing. 5. HOMEBUYER PROGRAM REQUIREMENTS. (a) Governmental A�provals. The Owner shall obtain or cause to be obtained all Federal, State and local governmental approvals required by law for the Project. (b) Compliance with Laws. The Owner shall cause the Project to comply with all state, federal and local codes, ordinances, zoning ordinances, including but not limited to, the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4821 et seq.), the Residential Lead-Based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851 et seq.),the Lead-Based Paint Exposure Reduction Act, 15 U.S.C. 2601 et seq., and 24 C.F.R. 35, 3