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( SECTION 2. USE AND TERMS OF CONSORTIUM HOME LOAN. The Consortium agrees to lend HOME Funds to .the Eligible Borrower and the Eligible Borrower agrees to borrow such HOME Funds in accordance with this Agreement to acquire the Project Site on the following terms: A. The maximum amount of the loan from the Consortium to the Eligible Borrower (the "Consortium HOME Loan") available for disbursement in accordance with Section 3 hereof is $5,000 per Eligible Borrower. Such Consortium HOME Loan shall be used for Eligible Acquisition Costs. The aggregate amount of Consortium HOME funds drawn down by the Lead Entity and disbursed by the Participating Bank for the benefit of the Eligible Borrower under Section 3 hereof, and not repaid, at any given time shall constitute the outstanding principal balance of the Consortium HOME Loan, at such time. Any program income resulting from repayment of the Consortium HOME Loan to the Consortium will be used by the respective payee for other eligible HOME Program activities in accordance with the HOME Program regulations in 24 CFR §92.205 and §92.206. B. The City hereby agrees during the term of this Agreement to provide a Consortium HOME Loan in an amount not to exceed $ to the Eligible Borrower from the Committed Amount of HOME funds, to be secured by a second mortgage on the Project Site, at an interest rate of 0% per annum for the purpose of paying a portion or all of the Eligible Acquisition Costs under the Program. Repayment of a Consortium HOME Loan by the Eligible Borrower in accordance with the recapture provisions of Section 6.D.iv shall be deferred until the earliest to occur of (i) the sale of the acquired Eligible Property Site by the Eligible Borrower, (ii) the principal residence of the Eligible Borrower being other than the acquired Eligible Property or (iii) any other transfer of the acquired Eligible Property or any interest therein[;provided, however, that the transfer by the Eligible Borrower of an interest in the acquired Eligible Property to a mortgagee for the purpose of granting a security interest in such acquired Eligible Property to secure indebtedness shall not constitute a transfer for purposes of the immediately preceding item (iii) if the aggregate of all indebtedness secured by one or more mortgages on such acquired Eligible Property does not exceed 97 % of the value of such acquired Eligible Property as established by a qualified, independent appraiser. With respect to a Consortium HOME Loan for Eligible Acquisition Costs consisting of down payment assistance, the Consortium agrees to provide an Eligible Borrower with down payment assistance in an amount not to exceed $5,000. C. The Eligible Borrower shall complete the acquisition of the Project within six months from the date of this Agreement. D. The Consortium HOME Loan shall be evidenced by (i) a promissory note from the Eligible Borrower to the Consortium (the "Consortium Promissory Note") and (ii) an open-end mortgage by the Eligible Borrower, as mortgagor, and the Consortium, as Mortgagee (the "Consortium Mortgage"), a form of each of which is attached hereto and made a part hereof as Exhibit F. 3