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HomeMy WebLinkAbout5.480 Original Contract ".t\ 5.<{W " AGREEMENT AGREEMENT entered into this Ollli day of ~.lD~./, 1998, by and between The City of Port Angeles (hereinafter called "the City), and First Federal Savings and Loan Association of Port Angeles (hereinafter called "First Federal). It is agreed that the City will guarantee loans to City customers made by First Federal under the terms and conditions of this Agreement. The loans must be for energy or water conservation measures in existing structures that do not result in conversion from another fuel source to electrical energy. Either party may terminate this contract with 60 days written notice. Such termination shall not alter the obligation of the parties as to loans that have been previously committed. Definitions "City Customers" are owners of existing structures who have an active account for utility services with the City "Eligible Measures" are improvements included in the City's energy conservation plan which are ~ made to existing structures "Loan Fees" are costs associated with preparing and closing a loan as described on the attached fee schedule. Page 1 of 4 , . , ' F or purposes of this Agreement, a loan guarantee is an undertaking by the City that if the City customer fails to make payments on the loan for a period of 120 days, and after reasonable efforts to collect, the City will pay the remaining balance of the loan to First Federal. Upon the City paying the remaining balance of the loan, First Federal will deliver, endorse and negotiate without recourse any and all notes and documents to the City and transfer any security that it has associated with the loan for energy or water conservation measures Proced u res The parties to this Agreement will follow these procedures 1. First Federal shall supply the loan application form to be used. 2 The loan application will have a statement that if the customer does not pay the loan, the City will have the right to charge the remaining obligation of the loan on the City's utility bill and may terminate services if not paid in a timely manner 3 First Federal will provide each customer with assistance in completing applications 4. First Federal shall submit to the City a request for certification by the City that the borrower is a Customer, the conservation measures are Eligible Measures, and the ~dollar amount of the guaranty is appropriate. Page 2 of 4 " 5. The City shall determine if the borrower is a City Customer, that the Eligible Measure will be made to an existing structure, and that the installation of Eligible Measures will not result in a conversion from one energy source to another The City shall then certify these facts to First Federal. 6. First Federal shall determine the eligibility of the customer for the loan and shall advise the customer whether or not the customer qualifies. 7 The City, after receiving a notice of completion, will certify to First Federal that the Eligible Measures are complete and that funds may be disbursed 8. First Federal shall disburse all funds under the loan after receiving a certificate from the City that Eligible Measures are complete. 9 First Federal shall treat the loan offunds and its collection as it does any other home improvement loan that it services 10 The Weatherization Applicant will pay all Loan Fees incurred for processing the application They may be paid in cash or included in the loan amount. Loan Characteristics The loan shall be in the amount approved by the City for Eligible Measure The loan shall be repayable in equal montWy payments, including interest, over a period of ~o more than 120 months from the date of disbursing of funds. The loan proceeds will be paid to the City Customer and the company who did the work and/or provided the equipment for the Eligible Measures. Page 3 of 4 , . ' " The annual interest rate shall be fixed at the beginning of the loan. The interest is determined by adding 2.0 percent to the 5-year T-Bill rate and is determined weekly Underwriting Guidelines No mortgage payments greater than 30 days past due within the last 12 months. Credit Score - 640 or above as a "guideline" No Liens or Judgments outstanding Divorce proceedings must be final Title Insurance (Limited Liability) request on loan amounts of $10,000 and above FffiST FEDERAL SAVINGS & LOAN ASSOCIATION OF PORT ANGELES P. O. BOX 351 PORT ANGELES, W A 98362 CITY OF PORT ANGELES o ~ ~~J ~tK- Signa~re Karen L Grandbouche President and CEO II ;jY- qf ~J 1- D ~ to q 8 Date Date Page 4 of 4 . . ' FEE SCHEDULE Loan Fee Flood Certification Recording UCC-l Credit Check Title Search $50 00 $18 50 $16 00 $12 00 $ 5.00 $11000 on loan amounts of $10,000 or more , . . " First Federal Savings & Loan Association of Port Angeles POBox 35 1 . Port Angeles, WA 98362 . 360-417-3129 . Fax 360-417-3190 ADDENDUM Lender may assign this loan and all its rights to the City of Port Angeles upon default by Borrower. Upon Assignment to the City of Port Angeles for default, the City of Port Angeles may add the outstanding balance and any accrued interest together with any late charges to Borrower's utility bill from the City of Port Angeles, and shall have all applicable rights, including the right to disconnect utility service as provided by law. Dated: First Federal Savings & Loan Association of Port Angeles Borrower By Type or Print Borrower Name Borrower Type or Print Borrower Name Address ...t , ~ 'i .. , .\ .., FIRST FEDERAL SAVINGS & LOAN ASSOCIATION OF PORT ANGELES P 0 Bod51, Port Angeles. WA 98362, (360) 457-0461 CITY OF PORT ANGELES WEATHERIZATION LOAN PROGRAM Customer to provide: 1. Copy of Tax Assessment. 2. Complete Legal Description. 3. All parties vested in Title must be on the loan. 4. City of Port Angeles customer certification. 5. City of Port Angeles certified bids. Underwriting Criteria: 1. No liens or judgments outstanding on Credit Report. 2. Mortgage payment history - last 11 months "paid as agreed". 3. Divorce proceedings must be final.