After recording please return to:
Community Investment Department
Federal Home Loan Bank of Des Moines
Western Office
1001 Fourth Avenue, Suite 2600
Seattle, WA 98154
FEDERAL HOME LOAN BANK OF DES MOINES
Leasehold Mortgage with Power of Sale and Retention Agreement
THIS LEASEHOLD MORTGAGE WITH POWER OF SALE AND RETENTION AGREEMENT
(“Agreement”) is made this
day of
, 20
, between:
(“Mortgagor”), whose address is
, and The Federal Home Loan Bank of Des Moines (“Mortgagee”) whose address is 1001 Fourth Avenue,
Suite 2600, Seattle, Washington 98154.
AHP#___________________
Tax Account Number:
MORTGAGE PROVISIONS.
1. Grant: Mortgagor, in consideration of a grant in the amount of
Dollars ($
) made by Mortgagee,
and in order to secure the performance of Mortgagor’s obligations hereunder, hereby grants, bargains, sells
and conveys to Mortgagee that certain leasehold interest and estate and all of Mortgagor’s right, title, and
interest in, to and under a written lease agreement dated
between Mortgagor, as lessee/tenant, and
, as lessor/landlord (the “Lease”) relating to certain real estate located in
County, Wyoming, (the
“Property”) and more particularly described in Exhibit A attached hereto and made a part hereof,
TOGETHER WITH:
a.
Mortgagor’s interest in any and all buildings, structures, and other improvements now or
hereafter erected on the Property and including without limitation any and all fixtures,
attachments, appliances, equipment, machinery and other articles owned by Mortgagor and
attached to said buildings, structures and other improvements (the “Improvements”); and
b.
All additional right, title, and interest of Mortgagor in and to the Property or any portion
thereof or interests therein, and any greater estate in the Property now owned or hereafter
acquired by Mortgagor.
2. Purpose: This Agreement is for the purpose of securing performance of each agreement of Mortgagor set
forth herein, and payment of the sum of
Dollars ($
).
3. Use: Until any default the Mortgagor may hold and enjoy the Property. Mortgagor will pay all taxes,
assessments and charges of every kind on the Property or any interest therein, including improvements
thereon.
Federal Home Loan Bank of Des Moines – Affordable Housing Program
AHP Wyoming Leasehold
4. Release: Upon Mortgagor’s satisfaction of the obligation secured hereby and performance of all the
covenants and conditions of this Agreement, and upon Mortgagor’s payment of the cost of release hereof, the
mortgage created by this Agreement shall become void.
5. Default: Upon default by Mortgagor in the payment of any indebtedness secured by this Agreement or in the
performance of any agreement contained herein, Mortgagee may foreclose this mortgage, by court
proceeding or by advertisement and sale of the Property at public auction in
County, Wyoming,
pursuant to applicable provisions of Wyoming law, and may in the name of the Mortgagee or as the attorney
in fact of the Mortgagor, for such purpose hereby irrevocably appointed, effectually convey the Property to
the purchaser or purchasers absolutely and forever; and any foreclosure shall forever bar Mortgagor and all
persons claiming under Mortgagor from all right and interest in the Property. Mortgagee shall apply the
proceeds of the sale as follows: (1) to the expense of the sale, including a reasonable attorney's fee; (2) to the
obligation secured by this Agreement; (3) the surplus, if any, shall be distributed to the persons entitled
thereto.
6. Possession: In the event of a foreclosure sale of the Property pursuant to the provisions of this Agreement,
the purchaser shall have immediate and peaceable possession of the Property, and if Mortgagor remains in
possession after the effective date of such sale such possession shall be construed as a tenancy at sufferance
only, giving the purchaser all remedies, by way of summary possession or otherwise, conferred by law.
7. Binding on Successors: This Agreement applies to, inures to the benefit of, and is binding not only on the
parties hereto, but also on their heirs, devisees, legatees, administrators, executors, assigns and successors.
8. Severability: The invalidity, illegality, or unenforceability of any provision of this Agreement pursuant to
judicial decree shall not affect the validity or enforceability of any other provision of this Agreement, all of
which shall remain in full force and effect, and applicable state law shall replace such invalid, illegal or
unenforceable provision to the extent possible.
RETENTION AGREEMENT.
9. Grant: Mortgagor’s purchase, construction or rehabilitation of the Property was or will be partially financed
with proceeds from a $
Affordable Housing Program Grant (“Grant”) from Mortgagee. Federal
regulations (12 CFR Part 1291) condition Mortgagor’s receipt of the Grant on Mortgagor’s agreement to
consequences in some circumstances if Mortgagor sells or refinances the Property, for the purpose of
ensuring that the Grant is used as specified in the Grant application and that the Property is retained as
affordable housing for a period of fifteen (15) years commencing on the later of the physical Project
Completion Date or the date Grant proceeds were disbursed to or for Mortgagor (“Retention Period”).
10. Project Completion: The date for project completion on the Property is
(“Project Completion Date”)
(if not filled in, the Project Completion Date will hereafter be determined and agreed upon in writing by
Mortgagor and Mortgagee, either of whom may record an Addendum to this Agreement stating the Project
Completion Date).
11. Sale or Refinancing: Mortgagor shall notify Mortgagee in writing received at least two weeks prior to any
sale or refinancing of the Property that closes within the Retention Period. Mortgagor may notify Mortgagee
by either hand-delivery or certified mail, return receipt requested, at the following address:
Community Investment Department
Federal Home Loan Bank of Des Moines
Western Office
1001 Fourth Avenue, Suite 2600
Seattle, WA 98154
12. Repayment: Except as set forth herein, if a transaction by which Mortgagor sells or refinances the Property
closes within the Retention Period, Mortgagor must repay to Mortgagee all of the Grant, without interest.
13. Affordability: Mortgagor acknowledges receipt of the Grant funds from Mortgagee based in part on the
agreement that the Property’s rental units, or applicable portion thereof, must remain occupied by and
affordable for households with incomes at or below the levels committed to be served in Mortgagor’s
Federal Home Loan Bank of Des Moines – Affordable Housing Program
AHP Wyoming Leasehold (Rev. 6-15)
Page 2
approved Grant application or any modifications thereof agreed to by Mortgagor and Mortgagee(the
“Application”), and must remain subject to the rent restrictions specified therein, for the duration of the
Retention Period. Mortgagor shall not be required to repay any portion of the Grant if: (a) Mortgagor sells or
refinances the Property within the Retention Period and the Property for the remainder of the Retention
Period remains subject to the encumbrance created by this Agreement; or (b) households within the Property
are relocated to another property due to the exercise of eminent domain or for expansion of housing or
services, but only if Mortgagee in its sole discretion authorizes such relocations and determines repayment
should not be required, and only if such property for the remainder of the Retention Period is made subject to
an encumbrance created by a legally compliant retention agreement acceptable to Mortgagee which
incorporates the income-eligibility and rent restrictions committed to in the Application. The incomeeligibility and rent restrictions committed to by Mortgagor shall terminate after any foreclosure or a deed in
lieu of foreclosure, but such termination shall not release Mortgagor from any obligation to repay the Grant to
Mortgagee and shall not impair Mortgagee’s claim to foreclosure proceeds. Mortgagor will provide
certification upon request or at least annually that Mortgagor complies with the requirement that the Property
meets the foregoing income eligibility and rent restriction standards throughout the Retention Period.
MORTGAGOR:
By:
Typed name:
Title:
STATE OF WYOMING
COUNTY OF
)
)
)
ss.
This is to certify that on this
day of
, 20_____, before me, the
undersigned, a Notary Public in and for the State of Wyoming, duly commissioned and sworn, personally
appeared
, known to me to be
of
, the within named Mortgagor, who
executed the within instrument, acknowledged the said instrument to be the free and voluntary act and deed of
the Mortgagor for the uses and purposes therein mentioned, and on oath stated that _____ was authorized to
execute the said instrument for and on behalf of the Mortgagor.
Date:
Name:
NOTARY PUBLIC, State of Wyoming
Residing at
My appointment expires
(Use this space for notarial stamp/seal)
Federal Home Loan Bank of Des Moines – Affordable Housing Program
AHP Wyoming Leasehold (Rev. 6-15)
Page 3
EXHIBIT A
Legal Description
Federal Home Loan Bank of Des Moines – Affordable Housing Program
AHP Wyoming Leasehold (Rev. 6-15)
Page 4
CERTIFICATE OF DISCHARGE
Do not record. To be used only when obligation has been met.
This certifies that a Mortgage with Power of Sale and Retention Agreement from _________________________
to the Federal Home Loan Bank of Des Moines, dated ____________________, 20____ A.D., and recorded in
book
__________
of
__________
on
page
_________
(or
under
Recording
No.
_______________________________) has been fully satisfied by the performance of the obligations secured
thereby, and is hereby cancelled and discharged.
Mail Discharge to:
Community Investment Department
Federal Home Loan Bank of Des Moines
Western Office
1001 Fourth Avenue, Suite 2600
Seattle, WA 98154
FEDERAL HOME LOAN BANK OF DES MOINES
By: ______________________________________
______________________________________
Its: ______________________________________
STATE OF WASHINGTON
COUNTY OF KING
)
)
)
ss.
I certify that I know that __________________is the person who appeared before me, and said person
acknowledged that _____ signed this Certificate of Discharge, on oath stated that _____was authorized to
execute the Certificate of Discharge and acknowledged it as the ___________ of the Federal Home Loan Bank
of Des Moines to be the free and voluntary act of such party for the uses and purposes stated therein.
Date:
Name:
Notary Public, State of Washington
Residing at:
My Commission expires:
Federal Home Loan Bank of Des Moines – Affordable Housing Program
AHP Wyoming Leasehold (Rev. 6-15)
Page 5