Promissory Note (Page 3 of 4) in pdf

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PROMISSORY NOTE RIDER

THIS PROMISSORY NOTE RIDER (“Rider”) is made this

day of

, 20

, and is incorporated into

and shall be deemed to amend and supplement a Note in the amount of $

dated an even date herewith, executed by

the Undersigned (“Borrower”) to

(“Lender”) secured by a Mortgage or Deed of Trust dated an even date herewith.

In addition to the agreements and provisions made in said Note, Borrower and Lender further agree as follows:

This forgivable subsidy is originated pursuant to the Federal Home Loan Bank of Chicago’s Downpayment Plus

Program

(“Program”). The Borrower has received subsidy funds under the Program in the amount of $

(“Subsidy”) which will

be a second mortgage on the subject property according to the terms and conditions applicable to the Program. The

Borrower hereby acknowledges receipt of such funds in the form of this forgivable subsidy.

The Borrower and Lender agree that each month 1/60 of the Subsidy will be forgiven. Upon completion of a five

year term, no amounts will remain due. In the event that the property financed pursuant to the Program is not or ceases to

be used for the purpose(s) approved by the Federal Home Loan Bank of Chicago and the Federal Housing Finance Board,

the Borrower shall refund the Subsidy as follows: 1/60 of the total Subsidy received by Borrower shall be forgiven for each

month that the Borrower maintains the property as their principal residence. Lender will consider the anniversary of the

date of the loan closing for the first mortgage loan advanced by the Lender to finance the subject property (“Loan Closing

Date”) in forgiving and/or prorating the Subsidy. No credit will be given for partial months of ownership or residency.

Borrower agrees to provide the Lender all and any information that Lender, the Federal Home Loan Bank or the Illinois

League of Financial Institutions, deems to be necessary to provide evidence of continued compliance with the Program.

The Borrower and Lender further agree that if the property financed pursuant to the Program is sold within five years

of the Borrower’s Loan Closing Date to a purchaser whose income meets the eligibility requirements for participation in the

Program, then Borrower shall not be required to repay any portion of the Subsidy. If the property is sold to a purchaser

that is not a low- or moderate-income household, any gain on sale will be applied as repayment of the unforgiven Subsidy

as follows: 1/60 of the total Subsidy awarded to the Borrower is to be repaid for each month remaining on the five year

term from the Loan Closing Date. No credit will be given for partial months of ownership or residency. The amount of

Subsidy to be repaid shall not exceed the gain on sale.

Gain on sale is defined as the difference between your original purchase price and the price you as seller receive for

the property when it sold, less your seller costs. Gain on sale will be computed by Lender based upon its review of the

appropriate H.U.D. Settlement Statements for the purchase and sale of the mortgage property.

Lender and/or Federal Home Loan Bank of Chicago must be notified of any sale or refinancing of the mortgage

property that occurs within five years of the Loan Closing Date.

DownPayment Plus Program; Revised 2/2007

226187.1

Promissory Note Page 3