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4 . If the Financial Institution decides that an applica- <br /> tion under the Program should be approved for a loan, the Finan- <br /> cial Institution shall provide 700 of the money necessary to <br /> finance the purchase, or purchase and rehabilitation, of the <br /> described property. The Financial Institution shall loan said <br /> money to the successful applicant and shall obtain a first <br /> priority mortgage on such property. <br /> 5 . If the Financial Institution approves a loan under the <br /> Program, the City shali provide 25% of the money necessary to <br /> finance the purchase, or purchase and rehabilitation, of the <br /> described property. The City shall loan said money to the suc- <br /> cessful applicant and shall obtain a second priority mortgage on <br /> said property. <br /> 6 . DCDF shall receive the funds from the Financial In- <br /> stitution and the City for, and administer, that portion of said <br /> loans intended to be used for rehabilitation, including payment <br /> of contractors . <br /> 7 . The Financial Institution shall service both above- <br /> described loans, including collection of monthly payments and <br /> other such necessary steps involved in mortgage servicing. <br /> 8 . The Financial Institution shall have complete and total <br /> discretion over the approval of the loans under the Program, and <br /> the Financial Institution represents that it will make funding <br /> available for such loans subject to approval as provided herein. <br /> 9 . The interest rate by the Financial Institution under <br /> the Program during the f irst year hereof shall be eight and one half <br /> percent ( 8.50 __o) , and shall continue at said rate unless <br /> modified and approved. The interest rate may be modified for the <br /> second year based upon good cause shown by the Financial Institu- <br /> tion, and upon the approval of all parties hereto. <br />