PROMISSORY NOTE.PDF

PROMISSORY NOTE
Maricopa County, Arizona ___________, 2017
1. For value received, the Housing Authority of Maricopa County, established pursuant to
Title 36, Chapter 12, Article I of the Arizona Revised Statutes ("Borrower") promises to
pay to the County of Maricopa, an Arizona body politic ("County"), the sum of FOUR
HUNDRED FIFTY THOUSAND DOLLARS ($450,000) (the "Note") payable in
accordance with the terms of the Intergovernmental Agreement, A Developer Agreement
Between Maricopa County Administered by its Human Services Department and the
Housing Authority of Maricopa County December 13, 2017 (the "Loan Agreement"),
attached hereto and incorporated herein.
2. The definition of any capitalized term or word used and not otherwise defined shall have
the meaning set forth in the Loan Agreement.
3. The Note shall bear two percent (2%) interest. Principal payments of Thirty-One
Thousand Four Hundred Eighty-Six Dollars and Forty-three cents ($31,486.43) shall be
made annually the last day of June commencing the year following Completion of the
Project (the "Annual Payment") from Borrower's Net Cash Flow, as hereinafter defined,
Net Cash Flow shall mean the sum of gross rent revenues (less rental taxes and tenant
security deposits) plus other income received by the Borrower from the operation of the
Project, less (a) payment of an unpaid deferred development fee amount (if any), (c)
actual operating expenses (including amounts deposited in replacement reserve account)
and excluding allowable depreciation, and (d) payments of the asset management fee, if
applicable. Net Cash Flow shall be calculated based on the Borrower's audited financial
statements for the calendar year preceding the Annual Payment date. All outstanding
principal shall be due and payable in full on or before the 17th anniversary of the date
project completion is posted to HUD Integrated Disbursement Information System.
4. This Note shall bind and inure to the benefit of the respective permitted successors and
assigns of the Borrower and the County.
5. Payments shall be made in lawful money of the United States of America at the
administrative offices of Maricopa County at the following address: 234 N. Central Ave.,
Phoenix, Arizona, 85004.
6. The prevailing party in a suit on this Note shall recover, as part of the judgment,
reasonable attorneys’ fees that may be fixed by the judge of the court.

7. This Note shall be evidenced and secured by the following documents, all of which will
be executed in favor of the County on even date herewith and will be duly recorded in the
Office of the County Recorder of Maricopa County, Arizona:
a. The Declaration of Covenants, Conditions and Restrictions; and
b. Deed of Trust
8. Borrower's obligations under this Note are nonrecourse to Borrower and may be enforced
solely out of the proceeds of the sale of the Project property in accordance with the Deed
of Trust.
9. The Note shall be governed by, and construed in accordance with, the laws of the State of
Arizona.
10. Time is of the essence in this Note and every term, condition, covenant and provision
hereof.
11. The Deed of Trust, this Note and the Declaration of Covenants, Conditions and
Restrictions are and shall be subject and subordinate in all respects to the liens, terms,
covenants and conditions of any senior lender recorded prior in time to the Deed of Trust,
as reflected on Exhibit A attached hereto and incorporated herein by reference.
12. This Note, the Deed of Trust and the Declaration of Covenants, Conditions and
Restrictions are subject and subordinate to the Rental Assistance Demonstration Use
Agreement between the Secretary of Housing and Urban Development and Borrower
dated _____________, 2017.
[SIGNATURE APPEARS ON THE FOLLOWING PAGE]

BORROWER:
By: ______________________________________
Gloria Munoz, Executive Director
Address: 8910 N. 78th Ave.
Peoria, AZ 85345
COUNTY:
Maricopa County
By: _______________________________________
Denny Barney, Chairman Date
Attested to:
By: _______________________________________
Clerk of the Board Date
Approved as to form:
By: _____________________________________
Deputy County Attorney Date

Exhibit A
List of Permitted Encumbrances (Order of Priority)
1. Agreement to Subordinate to RAD Use Agreement recorded in the Official
Records of Maricopa County, Arizona as Instrument No. 2017-____________.
5. Maricopa County HOME funds loan in the amount of $450,000, secured by Deed
of Trust recorded in the Official Records of Maricopa County, Arizona as Instrument No.
2017-_________________.