R93-76 AUTHORIZING AGREEMENTS - HOME MORTGAGE REVOLVING LOAN PROGRAM

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� ` f . )• 4 . If the Financial Institution decides that an applica- tion under the Program should be approved for a loan, the Finan- cial Institution shall provide 70% of the money necessary to finance the purchase, or purchase and rehabilitation, of the described property. The Financial Institution shall loan said money to the successful applicant and shall obtain a first priority mortgage on such property. 5 . If the Financial Institution approves a loan under the Proyram, i.rl@ Ci�}/ S!'ia�1 PZ'OViuE ��o OL ��'le mor�Ey L1�CEjSC�Yy �C7 finance the purchase, or purchase and rehabilitation, of the described property. The City shall loan said money to the suc- cessful applicant and shall obtain a second priority mortgage on said property. 6 . DCDF shall receive the funds from the Financial In- stitution and the City for, and administer, that portion of said loans intended to be used for rehabilitation, including payment of contractors. 7 . The Financial Institution shall service both above- described loans, including collection of monthly payments and other such necessary steps involved in mortgage servicinq. 8 . The Financial Institution shall have complete and total discretion over the approval of the loans under the Program, and the Financial Institution represents that it will make funding available for such loans subject to approval as provided herein. 9 . The interest rate by the Financial Institution under the Program during the first year hereof shall be Seven and one half percent ( 72 %) , and shall continue at said rate unless modified and approved. The interest rate may be modified for the second year based upon good cause shown by the Financial Institu- tion, and upon the approval of all parties hereto.