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RESOLUTION R04-I~
A RESOLUTION OF THE CITY OF BOYNTON BEACH,
FLORIDA, APPROVING THE AMENDMENTS TO THE
STATE HOUSING INITIATWES PARTNERSHIP (SHIP)
MORTGAGE PROGRAM; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Boynton Beach hereby approves
Ithe revisions to the current State Housing Initiatives Partnership Mortgage Program,
~,providing for the purchase contract to run concurrent with the mortgager's first mortgage;
!and
that WHEREAS, the current SHIP mortgage is a ten (10) year, interest free document
forgives 1/10th of the mortgage amount annually, and;
WHEREAS, the new mortgage would run concurrent with the first mortgage,
with forgiveness only at the end of the term, and;
WHEREAS, this practice is currently being used by Palm Beach County and
municipalities around the state are adopting same practices.
WHEREAS, upon the recommendation of staff, the City Commission deems it to
be in the best interests of the citizens and residents of the City of Boynton Beach to
approve the revision to the current State Housing Initiatives Partnership (SHIP) Mortgage
Program.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT:
Section 1. The foregoing "Whereas" clauses are true and correct and are
hereby ratified and confirmed by the City Commission.
Section 2. The City Commission of the City of Boynton Beach, Florida,
hereby approve the revisions to the State Housing Initiatives Partnership (SHIP)
Mortgage Program.
Section 3. This Resolution shall become effective immediately upon passage.
PASSED AND ADOPTED this 7 day of September, 2004.
S:\CA\RESO\Administrative\SHIP Housing Initiative Mortgage Program.doc
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Clerk
CITY OF BOYNTON BEACH, FLOR]DA
~issioner
°m ssi°ned
/
S:\CA\RESOx~Administrative\SHIP Housing Initiative Mortgage Program.doc
EXHIBIT "A"
Post Office Bo~ 310 ~
Bo~ch,Fiorida 33425-0310 "~
Return to: Community Improvement
SECOND MORTGAGE AND SECURITY AGREEMENT
THIS SECOND MORTGAGE AND SECURITY AGREEMENT ("Mortgage"), made this
day of
between
whose post office address is:
(hereinafter called "Mortgagor") and THE CITY OF BOYNTON BEACH, a Flodda municipal
corporation, as Mortgagee and Secured Party, whose post office address is: 100 East Boynton
Beach, Florida 33435, (hereinafter called the "Mortgagee").
WITNESSETH:
WHEREAS,
is justly indebted to the Mortgagee in the principal sum of
and 00/100 Dollars
($.00) as evidenced by a certain Promissory Note ("Note") of even date herewith, executed by
and delivered to Mortgagee, payable according to the terms therein provided, and by reference
being a part hereof to the same extent as though set out in full herein; and
WHEREAS, this second mortgage is an interest-free deferred payment loan instituted
under the City of Boynton Beach SHIP Program in which the Mortgagor holds the note and
mortgage, and the loan will be paid upon the sale of the property if sold short of the term of the
first mortgage or upon Mortgagor's default.
NOW THIS INDENTURE WITNESSETH, to secure the performance and observance by
of all the covenants, conditions and agreements in the Note, this Second Mortgage, and
any other instrument, agreement or document collateral to or executed or delivered in
connection with the loan transaction, (collectively the "Loan Documents"), and in order to
charge the properties, interest and rights hereinafter described with such payment,
performance and observance, and for and in consideration of the sum of TEN ($10.00)
DOLLARS paid by
and for other valuable considerations, the receipt and sufficiency of which is hereby
acknowledged, the Mortgagor does hereby grant, bargain, sell, alien, remise, release, convey,
assign, transfer, mortgage, hypothecate, pledge, deliver, set over, warranty and confirm unto
the Mortgagee, its successors and assigns forever;
ALL that certain piece, parcel or tract of land in which the Mortgagor has a fee simple
interest situate in the County of Palm Beach, State of Florida (hereinafter called the "Land"),
more particularly described as follows:
, according to the plat thereof on file in the office of the
Clerk of the Circuit Court in and for Palm Beach County,
Florida, recorded in Plat Book , Page
Property address:
PCN: 08-43-45-
, Boynton Beach, FL 33435
TOGETHER WITH all lands, buildings, structures and improvements of every nature
whatsoever now or hereafter situated on the Land, and all fixtures, machinery, equipment,
furniture and other personal property of every nature whatsoever now or hereafter owned by the
Mortgagor and located in, on, or used or intended to be used in connection with the operation of
the Land, building, structures or other improvements, betterments, renewals, and replacements
to any of the foregoing; and all of the right, title and interest of the Mortgagor in any such
personal property or fixtures subject to a conditional sales contract, chattel mortgage or similar
lien or claim together with the benefit of any deposits or payments now or hereafter made by
the Mortgagor or on Mortgagor's behalf;
TOGETHER WITH a security interest in (i) all property, equipment and fixtures affixed to
or located on the Mortgaged Property, which, to the fullest extent permitted by law, shall be
deemed fixtures and a part of the real property, (ii) all articles of personal property and all
materials delivered to the Mortgaged Property for the use and operation of said property or for
use in any construction being conducted thereon, and owned by Mortgagor; (iii) all contract
rights, including construction contracts, service contracts, advertising contracts, purchase
orders, equipment leases, all other contract rights associated with the Mortgaged Property,
general intangibles, actions and rights of action, all deposits prepaid expenses, permits,
licenses, including all dghts to insurance proceeds, (iv) all right, title and interest of the
Mortgagor in all trade names and trademarks hereinafter used in connection with the use of the
Mortgaged Property, and (v) all proceeds, products, replacements, additions, substitutions,
renewals and accessions of any of the foregoing. Mortgagor hereby grants to Mortgagee, as a
secured party, a security interest in all fixtures, rights in action and personal property described
herein. This Mortgage is a self-operative security agreement with respect to such property, but
Mortgagor agrees to execute and deliver on demand such other security agreements, financing
statements and other instruments as Mortgagee may request in order to perfect its security
interest or to impose the lien hereof more specifically upon any of such property. In addition to
those specified herein Mortgagee shall have all the rights and remedies of a secured party
under the Uniform Commercial Code.
Page 2 ofll
ARTICLE ONE
PARTICULAR COVENANTS OF MORTGAGE
1.01 Performance of Note and Mortgage. The Mortgagor will perform, observe and
comply with all provisions hereof, of the Promissory Note (hereinafter referred to as "Note")
secured hereby and any of the other Loan Documents, and will promptly pay to the Mortgagee
the sum of money expressed in the Promissory Note with interest thereof and all other sums
required to be paid by the Mortgagor pursuant to the provisions of the Amended and Restated
Note and the Mortgage on the day or days when payment shall become due, all without
deduction or credit for taxes or other similar charges paid by the Mortgagor, time being of the
essence for such payments. The Loan secured by this mortgage shall be paid to the
Mortgagee without interest upon sale of the property and shall be for the term of the first
mortgage. If the property is not sold prior to the expiration of the first mortgage, then the loan
shall be fully forgiven and nothing shall be owed.
1.02 Warranty of Title. The Mortgagor covenants that it is indefeasibly seized of
the Land in fee simple, has good, marketable and absolute title to the Mortgaged Property and
has full power and lawful right to convey and mortgage the same in the manner and form
aforesaid. That the Mortgaged Property is free from all encumbrances except taxes for the
current year a first mortgage in favor of
and its successors, and any other permitted encumbrances. The Mortgage hereby
makes further assurance to perfect fee simple title to the Land in the Mortgagee as may be
reasonably required. The Mortgagor does hereby fully warranty the title to the Mortgaged
Property against claims of all persons whomsoever.
1.03 Insurance. Mortgagor shall keep the improvements now existing or hereafter
erected on the Mortgaged Property, insured against loss by fire or other hazards, casualties,
and contingencies, including but not limited to flood, in such amounts and for such periods as
may be required by Mortgagee, and to pay promptly when due, all premiums on such insurance
policies or renewals.
1.04 Condemnation. If all or any part of the Mortgaged Property shall be
damaged or taken through condemnation (which term when used in this Mortgage shall include
any damage or taking by any governmental authority, and any transfer by private sale in lieu
thereof, either temporarily or permanently), the entire indebtedness secured hereby shall at the
option of the Mortgagee become immediately due and payable if the Mortgagee in its sole
discretion determines that its security under this Mortgage is impaired. The Mortgagee shall be
entitled to all compensation, awards, and any other payments of relief therefore and is hereby
authorized, at its option to commence, appear in and prosecute, in its own or the Mortgagors
name, any action or proceeding relating to any condemnation, and to settle or compromise any
claim in connection therewith. All such compensation, awards, damages, claims, rights of
action and proceeds and the rights thereto are hereby assigned by the Mortgagor to the
Mortgagee, who after deducting therefrom all its expenses including attomeys' fees, may
release any monies so received by it without affecting the lien of this Mortgage or may apply the
same in such manner as the Mortgagee shall determine, to the reduction of the sums secured
hereby, and any balance of such monies then remaining shall be paid to the Mortgagor. The
Mortgagor agrees to execute such further assignments of any compensations, awards,
damages, claims, rights of action and proceeds as the Mortgagee may require.
1.05 Expenses. Mortgagor shall pay, or reimburse Mortgagee for all costs,
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charges and expenses, including reasonable attorneys fees, including appellate proceedings,
and disbursements, and costs of abstracts of title incurred or paid by Mortgagee in any action,
proceeding or dispute in which Mortgagee is made a part or appears as a party plaintiff or party
defendant because of the failure of the Mortgagor promptly and fully to perform and comply with
all conditions and covenants of this Mortgage and the Note secured hereby, including but not
limited to, the foreclosure of this Mortgage, condemnation of all or part of the Mortgaged
Property, or any action to protect the security thereof. All costs, charges and expenses so
incurred by Mortgagee shall become due and payable whether or not there be notice, demand,
attempt to collect or suit pending. The amounts so paid or incurred by Mortgagee, together with
interest thereon at the default rate as hereinafter defined from the date incurred until paid by
Mortgagor, shall be secured by the lien of this Mortgage.
ARTICLE TWO
DEFAULTS
2.01 Event of Default. The term "Event of Default" wherever used in the
Mortgage, shall mean any one or more of the following events:
(a) Failure by Mortgagor to pay, within fifteen (15) days of its due date any
deposits for taxes and assessments or insurance premiums due hereunder, or any other sums
to be paid by Mortgagor hereunder or under any other instrument securing the Note.
(b) Failure by Mortgagor to duly keep, perform and observe any other
covenant, condition or agreement in the Note, this Mortgage or any of the other Loan
Documents for a period of ten (10) days after the Mortgagee gives written notice specifying the
breach. If the default cannot be cured within such ten days, the commencement of such action
to cure the default and the diligent and continuing effort to cure same shall be acceptable.
(c) If Mortgagor or any endorser or guarantor of this Note shall file a
voluntary petition in bankruptcy or shall be adjudicated a bankrupt or insolvent, or shall file any
petition or answer seeking any reorganization, arrangement, composition, readjustment,
liquidation, wage earner's plan, assignment for the benefit of creditors, receivership, dissolution,
or similar relief under any present or future Federal Bankruptcy Act or any other present or
future applicable federal, state or other statute or law, or shall seek or consent to or acquiesce
in the appointment of any trustee, receiver or liquidator of Mortgagor for all or any part of the
properties of Mortgagor or of any guarantor or endorser of the Note; or if within thirty (30) days
after commencement of any proceeding against Mortgagor or any guarantor or endorser of the
Note, seeking any reorganization, arrangement, composition, readjustment, liquidation,
dissolution, debtor relief or similar relief under any present or future federal, state or other
statute or law, such proceeding shall not have been dismissed or stayed on appeal; or if, within
the thirty days after appointment without the consent or acquiescence of Mortgagor or of any
endorser or guarantor of the Note, of any trustee, receiver, or liquidator of Mortgagor or any
endorser or guarantor of the Note, or of all or any portion of the Mortgaged Property, such
appointment shall not have been vacated or stayed on appeal or otherwise; or if within ten (10)
days after the expiration of any such stay, such appointment shall not have been vacated.
(d) The entry by any court of last resort of a decision that an undertaking by
the Mortgagor as herein provided to pay taxes, assessments, levies, liabilities, obligations or
encumbrances is legally inoperative or cannot be enforced, or in the event of the passage of
any law changing in any way or respect the laws now in force for the taxation of mortgages or
debts secured thereby for any purpose or the manner of collection of any such taxes, so as to
Page 4 of 11
effect adversely this Mortgage or the debt secured hereby unless the Mortgagor can and does
in a proper and legal manner, pay any and all sums of whatever kind which may be incurred or
charged under such new or modified law.
(e) If foreclosure proceedings should be instituted on any mortgage inferior
or supedor to the Mortgage, or if any foreclosure proceeding is instituted on any lien of any kind
which is not dismissed or transferred to bond within thirty (30) days of the service of foreclosure
proceedings on the Mortgagor.
(f) Any default under any mortgage superior or inferior to the Mortgage.
(g) Any modification of any mortgage superior or inferior to the Mortgage,
increase in the amount outstanding under any supedor or inferior mortgage, whether pursuant
to a future advance agreement or otherwise, or waiver of any principal or interest payments on
any note or mortgage superior or inferior to this Modgage, or release of any guarantor or
modification of any guaranty affecting any superior or inferior mortgage.
(h) Any breach of any warranty or matedal untruth of any representation of
Mortgagor contained in the Note, this Mortgage or any of the other Loan Documents.
(i) Any action prohibited by paragraph 3.01 infra.
(j) If the mortgaged property is sold, transferred or refinanced prior to the
expiration of the first mortgage or any prior mortgage the entire amount of the loan shall be
retumed forthwith to Mortgagor, the City of Boynton Beach SHIP Program.
(k) Upon the homeowner(s) death, provided that the new owner is not
income eligible under SHIP Guidelines and/or the dwelling on the mortgaged property is not the
primary residence of the new owner. For the new owner to be eligible, he or she must set up
primary residence in the dwelling within a reasonable time and be income eligible under SHIP
guidelines. If the new owner is not eligible, the loan shall be due and payable to the Mortgagor.
(I) Lease of any portion of the mortgaged property to a third party.
2.02 Acceleration of Maturity. If an Event of Default shall have occurred and be
continuing, the Mortgagee may, at its sole option, declare the entire principal amount of the
Note then unpaid, and the interest accrued thereon to be due and payable immediately, and
upon such declaration such principal and interest shall forthwith become and be due and
payable, as fully and to the same effect as if the date of such declaration were the date
originally specified for the matudty of the unpaid balance of the Note.
2.03 Mortgagee's Power of Enforcement. If an Event of Default shall have
occurred and be continuing the Mortgagee may proceed by suit at law or in equity or by any
other appropriate proceeding or remedy (a) to enforce payment of the Note or the performance
of any term hereof or any other right (b) to foreclose this Mortgage and to sell, as an entirety or
in separate lots or parcels, the Mortgaged Property, under the judgment or decree of a court or
courts of competent jurisdiction, and (c) to pursue any other remedy available to it, all as the
Mortgagee shall deem most effectual for such purposes. The Mortgagee shall take action
either by proceedings or by the exercise of its powers with respect to entry or taking
possession, as the Mortgagee may determine.
2.04 Leases.
The Mortgagee, at the Mortgagee's option, is authodzed to
Page 5 ofll
foreclose this Mortgage subject to the rights of any tenants of the Mortgaged Property, and the
failure to make any such tenants parties defendant to any such foreclosure proceedings and to
foreclose their rights will not be, nor be asserted to by the Mortgagor, a defense to any
proceedings instituted by the Mortgagor to collect the sums secured thereby, or any deficiency
remaining unpaid after the foreclosure sale of the Mortgaged Property.
2.05 Principal and Interest Become Due on Foreclosure. Upon commencement of
suit or foreclosure of this Mortgage, the unpaid principal of the Note, if not previously declared
due, and the interest accrued thereon, shall at once become and be immediately due and
payable.
2.06 Waiver of Appraisement, Valuation, Stay, Extension and Redemption Laws.
The Mortgagor agrees to the full extent permitted by law, that in case of default on its part
hereunder, neither the Mortgagor nor anyone claiming through or under it shall or will set up,
claim or seek to take advantage of any appraisement, valuation, stay, extension, or redemption
laws now or hereafter in force, in order to prevent or hinder the enforcement or foreclosure of
this Mortgage, or the absolute sale of the Property being conveyed, to the final and absolute
puffing into possession thereof, immediately after such sale; the purchasers thereof, and the
Mortgagor, for itself and all who may at any time claim through or under it, hereby waive to the
full extent that it may lawfully do so, the benefit of all such laws, and any and all right to have
the assets comprised in the security intended to be created hereby marshaled upon any
foreclosure of the lien hereof and agrees that the Mortgagee or any court having jurisdiction to
foreclose such lien may sell the Mortgaged Property as an entirety.
2.07 Acceleration; Application of Monies by Mortgagee.
(a) If default shall be made in the payment of any amount due under the
Mortgage or the Note secured hereby, then, upon demand of the Mortgagee, the Mortgagor will
pay to the Mortgagee the entire amount due and payable under the Note. If Mortgagor shall fail
to pay the same forthwith upon such demand, the Mortgagee shall be entitled to sue for and to
recover a judgment for the whole amount so due and unpaid together with costs, which shall
include the reasonable compensation, expenses and disbursements of the Mortgagee's agents
and attorneys either before, after or during the pendency of any proceedings for the
enforcement of the Mortgage including appellate proceedings. The dght of the Mortgagee to
recover such judgment shall not be affected by any taking, possession, or foreclosure sale
hereunder, or by the exercise of any other right, power or remedy for the enforcement of the
terms of this Mortgage, or the foreclosure of the lien hereof.
(b) In case of a foreclosure sale of any of the Mortgaged Property and of the
application of the proceeds of sale to the payment of the debt hereby secured, the Mortgagee
shall be entitled to enforce payment of and to receive all amounts then remaining due and
unpaid upon the Note, and the Mortgagee shall be entitled to recover a judgment for any
portion of the debt remaining unpaid, with interest.
(c) The Mortgagor agrees to the full extent that it may lawfully so agree, that
no recovery of any such judgment by the Mortgagee and no attachment or levy of any
execution upon any such judgment upon any of the Mortgaged Property or upon any other
property shall in any manner or to any extent release the lien of the mortgage upon the
Mortgaged Property or any part thereto for any liens, rights, powers or remedies of the
Mortgagee hereunder, but such lien, rights, powers and remedies shall continue unimpaired as
before.
(d) Any monies thus collected by the Mortgagee or received by the
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Mortgagee under this paragraph 2.07 shall be applied as follows:
"First, to the payment of the reasonable attorneys fees and expenses incurred by
Mortgagee, its agents and attorneys, including but not limited to taxes paid, insurance
premiums paid receivers fees, etc.
Second toward payment of the amounts due and unpaid upon the Note."
2.08 Delay or Omission No Waiver. No delay or omission of the Mortgage or of
any holder of the Note to exercise any right, power, or remedy accruing upon any default shall
exhaust or impair any such right, power or remedy nor shall same be construed to be a waiver
of any such default, or acquiescence, herein; and every right, power and remedy given by this
Mortgage to the Mortgagee may be exercised by Mortgagee from time to time and as often as
may be deemed expedient by the Mortgagee.
2.09 No Waiver of One Default to Affect Another. No waiver of any default
hereunder shall extend to or shall affect any subsequent or any other existing default or shall
impair any rights, powers or remedies consequent thereon. If the Mortgagee (a) grants
forbearance or an extension of time for the payment of any sums secured hereby, (b) takes
other or additional security for the payment thereof; (c) waives or does not exercise any right
granted herein or in the Note, (d) releases any part of the Mortgaged Property from the Note or
Mortgage; (e) consents to the filing of any map, plat or replat thereof, (0 consents to the
granting of any easement thereon, or (g) makes or consents to any agreement subordinating
the lien hereof, any such act or omission shall not release, discharge, modify, change or affect
the original liability under the Note or otherwise of the Mortgagor or any subsequent purchaser
of the Mortgaged Property or any part thereof, or any maker, co-signer, endorser, surety or
guarantor; nor shall any such act or omission preclude the Mortgagee from exercising any
dght, power or privilege herein granted or intended to be granted in the event of any other
default then made or of any subsequent default nor, except as otherwise expressly provided in
an instrument or instruments executed by the Mortgagee, shall the lien of this Mortgage be
altered thereby. In the event of the sale or transfer by operation of law or otherwise of all or any
part of the Mortgaged Property, the Mortgagee, without notice to any person or corporation, is
hereby authorized and empowered to deal with any such vendee or transferee with reference to
the Mortgaged Property or the indebtedness secured hereby, as fully and to the same extent as
it might deal with the original parties hereto and without in any way releasing or discharging any
of the liabilities or undertakings hereunder.
2.10 Discontinuance of Proceedings - Position of Parties Restored. In case
the Mortgagee shall have proceeded to enforce any right or remedy under this Mortgage by
foreclosure, entry or otherwise, and such proceedings shall have been discontinued or
abandoned for any reason, or shall have been determined adversely to the Mortgagee, then in
every such case, the Mortgagor and the Mortgagee shall be restored to their former positions
and rights hereunder, and all dghts, powers and remedies of the Mortgagee shall continue as if
no such proceeding has been taken.
2.11 Remedies Cumulative. No right, power or remedy conferred upon or
reserved by the Mortgagee by this Mortgage, is intended to be exclusive of any other fight,
power or remedy, but each and every such right, power and remedy shall be cumulative and
current and shall be in addition to any other right, power and remedy given hereunder or nor or
hereafter existing at law or in equity or by statute.
2.12 Subrogation. The Mortgagee hereby is subrogated to the claims and liens of all
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padies whose claim or liens are discharged or paid with the proceeds of the indebtedness
secured by this Mortgage.
ARTICLE THREE
MISCELLANEOUS PROVISIONS
3.01 No Transfer. it is understood and agreed by Modgagor that as part of the
inducement to Mortgagee to make the loan evidenced by the Note, Mortgagee has considered
and relied upon the credit wodhiness and reliability of Mortgagor. Mortgagor covenants and
agrees not to assign, sell, convey, transfer, lease, enter into any management agreement, or
further encumber any interest in or any part of the Mortgaged Property without the prior written
consent of the Mortgagee, and any such sale, conveyance, transfer, lease, or encumbrance
made without Mortgagee's prior written consent shall constitute an event of default hereunder.
If the Modgagor is not an individual, it is further understood and agreed that any assignment,
sale, conveyance, transfer, encumbrance or pledge of any ownership interest of the Mortgagor
without the Mortgagee's prior written consent shall be deemed a transfer of the Mortgaged
Property and prohibited herein.
3.02 Uniform Commercial Code. The parties agree that this Mortgage is a security
agreement under the Uniform Commercial Code for the purpose of creating a lien on the
Mortgaged Property.
3.03 Maximum Rate of Interest. Nothing herein contained nor in the Note secured
hereby or any instrument or transaction related thereto, shall be construed or so operate as to
require the Mortgagor, Maker, or any person liable for the payment of the loan made pursuant
to said Note, to pay interest in an amount or at a rate greater than the maximum allowed by law.
Should any interest or other charges in the nature of interest paid by the Mortgagor, Maker or
any parties liable for the payment of the loan of interest in excess of the maximum rate of
interest allowed by applicable law, then any and all such excess shall be and the same is
hereby waived by the holder hereof, and all such excess shall be automatically credited against
and in reduction of the principal balance, and any portion of said excess which exceeds the
principal, balance shall be paid by the holder hereof to the Modgagor, Maker or any parties
liable for the payment of the loan made pursuant to said Note, it being the intent of the parties
hereto that under no circumstances shall the Mortgagor, Maker or any parties liable for the
payment of the loan hereunder, be required to pay interest in excess of the maximum rate
allowed by law.
3.04 Default Rate. The Default Rate of interest shall be applicable subsequent to an
Event of Default as defined in Paragraph 2.01 and where elsewhere provided for in this
Mortgage. The Default Rate shall be the maximum interest rate per annum permissible under
Flodda Law, or Federal Law in the event Federal Law pre-empts Florida law or is otherwise
applicable
3.05 Attorneys Fees and Expenses. Wherever provision is made herein from
payment for reasonable attorneys fees or counsel fees or expenses incurred by the Mortgagee,
said provision shall include, but not limited to, reasonable attorneys' or counsels fees or
expenses incurred in any and all judicial, bankruptcy, reorganization, administrative, or other
proceedings, including appellate proceedings, whether such proceedings arise before or after
entry of a final judgment.
Page 8 of 11
3.06 Notice.
(a) Mortgagor. Any notice, demand or instrument authorized by this Mortgage to
be served on or given to the Mortgagor may be served on or given to the Mortgagor at:
Boynton Beach, FL 33435
or at such other address as may have been furnished in writing to the Mortgagee by the
Mortgagor.
(b) Mortgagee. Any notice demand or instrument authorized by this
Mortgage to be served on or give to the Mortgagor may be served on or given to the Mortgagor
at:
CITY OF BOYNTON BEACH
ATTN: CITY ATTORNEY'S OFFICE
100 EAST BOYNTON BEACH BOULEVARD
BOYNTON BEACH, FLORIDA 33435
or at such other address as may have been furnished in wdting to the Mortgagor by the
Mortgagee.
3.07 Headings. The headings of the articles, sections, paragraphs and
subdivisions of this Mortgage are for convenience of reference only, and are not to be
considered a part hereof, and shall not limit or otherwise affect any of the terms hereof.
3.08 Invalid Provisions to Affect No Others. In case any one or more of the
covenants, agreements, terms or provisions contained in this Mortgage, the Note or any of the
other Loan Documents, shall be invalid, illegal or unenforceable in any respect, the validity of
the remaining covenants, agreements, terms or provisions contained herein and in the Note
shall be in no way affected, prejudiced or disturbed thereby.
ARTICLE FOUR
ADDITIONAL PROVISIONS
4.01 Guarantors. As part of the inducement to the Mortgagee to make the loan
evidenced by the obligation secured hereby, the Mortgagor has caused certain other persons to
enter into continuing and unconditional guarantees of payment of any and all indebtedness and
agreed by the Mortgagor that such representations and agreements by such other persons
shall constitute for the purpose of its obligations hereunder, covenants on behalf of the
Mortgagor.
Page 9 of 11
IN WITNESS WHEREOF, Borrower and Lender have caused this Second Mortgage and
Security Agreement to be executed in their names, all by authority duly given as of the day and
year first above written.
Signed, sealed and delivered
in the presence of:
WITNESS MORTGAGOR
WITNESS PRINT NAME
WITNESS MORTGAGOR
WITNESS PRINT NAME
STATE OF FLORIDA )
) SS.:
COUNTY OF PALM BEACH)
and
I hereby certify that on this day, before me, a Notary Public duly authorized in the State
County named above to take acknowledgements, personally appeared
He/she is personally
known to me [or has produced
as identification] to be the person(s) described as Mortgagors in and who executed the
foregoing mortgage and acknowledged before me that said persons executed that mortgage.
Witness my hand and official seal in the County and State named above this
day of
Signed:
NOTARY PUBLIC
Pdnt Name:
Page 10 of 11
PROMISSORY NOTE
SHIP PROGRAM
Dated:
BOYNTON BEACH, Flodda
FOR VALUE RECEIVED the undersigned,
(hereinafter referred to as "Makers") promise to pay to the order of CITY OF BOYNTON BEACH,
a Florida municipal corporation, or its successors or assigns (collectively referred to as the
"Holder"), at its offices located at 100 East Boynton Beach Boulevard, Boynton Beach, Flodda
33435 or such other place as the Holder hereof may from time to time designate in writing, the
principal sum of
and 00/100 Dollars
($.00) to be paid in lawful money of the United States of Amedca, which shall be legal tender in
payment of all debts and dues, public and private, at the time of payment as follows:
This is a deferred payment loan issued under the guidelines of the City of Boynton Beach
SHIP Program in which the Makers pay off the loan at the time the mortgaged property is sold if
the property is sold prior to the term of the first mortgage. If the property is not sold pdor to the
expiration of the first mortgage and remains the permanent residence of the Maker, then in that
event this note shall be forgiven and released. The Maker must permanently reside on the
property during the term of the note and mortgage. In the event the Maker fails to comply or
defaults, the entire unpaid principal balance shall be fully due, owing, and payable from the
Makers to the Holder.
This Note is secured by a Mortgage Deed, a/k/a Second Mortgage and Secudty
Agreement (the "Mortgage") of even date herewith encumbering and conveying real estate and
property (the "Mortgaged Property") therein described and duly recorded among the Public
Records of Palm Beach County, Flodda.
The Makers shall pay any and all applicable federal, state and/or local taxes with regard to
the obligations set forth herein and shall provide the Holder with annual paid tax receipts within
thirty (30) days subsequent to annual payment of obligations. Failure to timely pay such taxes
shall be an event of default as provided for hereinafter.
It is hereby agreed that if in the event default be made in the performance or compliance
with any of the covenants and conditions of any secudty agreement now or hereafter in effect
secudng payment of this Note; then, in any or all such events, the entire amount of principal of this
Note with all interest then accrued, if any, shall, at the option of the holder of this Note and without
notice (the Makers expressly waives notice of such default), become and be due and collectible,
time being of the essence of this Note. if this Note shall not be paid at matudty or according to
the tenor thereof and strictly as above provided, it may be placed in the hands of an attorney at
law for collection, and in that event, each party liable for the payment thereof, as Makers,
endorser, guarantor, or otherwise, hereby agrees to pay the holder hereof in addition to the sums
above stated, a reasonable sum as an attomeys fee, which shall, include attorneys fees at the tdal
level and on appeal, together with all reasonable costs incurred.
Makers shall be in default of this Note if dudng the term of this Note, they assign, sell,
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convey, transfer, lease, enter into any management agreement, further encumber, or vacate the
premises. In the event of such default, the loan amount of the promissory note shall be
immediately due and payable.
This Note is pre-payable in whole or in part at any time without penalty.
As to this Note and the Mortgage, and any other instruments securing the indebtedness,
the Makers, endorsers and guarantors, if any, severally waive presentment, protest and demand,
notice of protest, demand and dishonor and nonpayment of this Note, and expressly agree that
the Maturity Date of this Note, or any payment hereunder, may be extended from time to time
without in any way affecting the liability of the Makers, endorsers or guarantors.
Nothing herein contained, nor in any instrument or transaction related hereto, shall be
construed or so operate as to require the Makers, or any person liable for the payment of the loan
made pursuant to this Note, to pay interest in an amount or at a rate greater than the highest rate
permissible under applicable law. Should any interest or other charges paid by the Makers, or any
parties liable for the payment of the loan made pursuant to this Note, result in the computation or
earning of interest in excess of the highest rate permissible under applicable law, then any and all
such excess shall be and the same is hereby waived by the holder hereof, and all such excess
shall be automatically credited against and in reduction of the principal balance, and any portion of
said excess which exceeds the principal balance shall be paid by the holder hereof to the Makers
and any parties liable for the payment of the loan made pursuant to this Note, it being the intent of
the parties hereto that under no circumstances shall the Makers, or any parties liable for the
payment of the loan hereunder, be required to pay interest in excess of the highest rate
permissible under applicable law.
This Note is to be construed according to the applicable laws of the State of Florida and
the United States of Amedca.
MAKERS:
SIGNATURE
SIGNATURE
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