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'� AGRE�MENT
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" THIS AGREEMENT, made and entered into this?� day of �������� '
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197 �, between the PITKIN COUNTY HOUSING AUTHORITY, A Colorado
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jCorporation, organized pursuant to the Colorado County Housing
-'� Authorit•y �aw, C.R.S. 1473, Section 29-4-501, et. seq., (herein-
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after called "Authority"). Party of the First Part, and CENTRAL
t BANK OF DENVER, a banking corporation, organized and existing ,
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� under the laws oE the State of Colorado, having its nlace of ;:
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� business in the City of Denver. Colorado, (hereinafter called the I.
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y "Servicer"), Party of the Second Part. >'
� � 6I I T N E S S E T H� �
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THAT WHEREAS the Authority is the owner of the Midland Park
� Condominium Pro7ect located in the City of Aspen, Pitkin County,
�f Colorado, and will be selling the individual condominium nnits
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� and taking back a purchase money mortgage for the financing of
these units and desires to have an independent contractor
service and administer the purchase money mortgage for the dura-
tion of their term, and
�dHEREAS; the Servicer, as a part of its commercial banking �-
operation, is engaged in the business of servicing mortgage 2oans,
NOW, THEREFORE, in consideration of the promises and mutual
;
covenants and agreements hereinafter contained, and for other
good and valuable considerations, the parties hereto agree as *
follows:
EIRST: The Authority assur.ies full responsibility for the
� legality, completeness and enforceability o£ all loan documents, �
SECOND: The Servicer agrees that it will, from the date of �
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transfer of servicing, of any mortgage to it by the Authority, �
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a` diligently attempt to collect all payr.�ents due by the terms of �
such mortgage as they become due. All such sums so collected �
shall be deposited in a special account or accounts, properly ;
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designated, and the Servicer shall remit to the Authority once �
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each month, on or before the 20th day of the month, that part �
of the moneys so collected by it as is allocable to interest
and principal payments on account of the mortgages in question, _
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and such remittances shall be accompanied by itemized statements
showing the amounts received on each loan and the a2location thereof. �
THIRD: The Servicer will deliver to the Authority with each
mortgage being serviced the Certificate of Hazard Insurance showing
type of coverage acceptable to Authority which may be in an amount
equal to the full insurable value of the mortgage premises, or
shall, in all cases, be in an a[nount equal at least to the unpaid
amount of the mortgage indebtedness, wfiichever is less. The
original policy will be purchased by the Homeowners Association
but the Servicer shall obtain individual certificates of insurance
� which reflect the interest of the Authority as mortgagee. As such ��
policies of insurance expire, the Servicer will use its best ;
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efforts to obtain evidence of a renewal of said insurance, through !
the Homeowners Association. The Servicer will extend its best
efforts in an attempt to collect any loss arising under any policies ;�
of insurance covering any of such mortgages premises. The Servicer
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is authorized to adjust loss claims and to endorse loss drafts of �
$1,000.00 or less, as agent for the Authority. • (
FOUI2TH: The Servicer shall keep complete and accurate j
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account of and properly apply all sums paid to it by any mortgagor +
for taxes, assessments, premiums accrui.ng on policies of fire and �
windstorm insurance, and mortgage insurance premiums. Such sums
shall be held by the Servicer and deposited, at "0" interest,
in a special account. The Servicer will see that such sums are I
disbursed for the purpose intended. The Servicer shall not be � �
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bound to make payetent of any of such items unless the moneys are 1
in haad for such purposes. In the event any mortgagor fails to �
make payment to the Servicer of the moneys necessary to pay taxes, �
assessments, fire or windstorm insurance premiums, or mortgage �
insurance premiums, or any of them, the Servicer agrees to notify
the Authority of such fact within thirty (30) days after any such
defau2t and upon receipt of the necessary fur.ds from the Authority, j
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the Servicer will, thereupon, pay such items. None of these ��
provisions will relieve the Servicez of the duty to exercise R
dilligence in seeing to the collection and payment of the items .
in question.
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FIFTH: The Servicer agrees to render to the Authority at such `?
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times that the Authority may in writing request the same, a
complete accounting of the application of the funds received and
disbursed by it in accordance with the provisions contained herein.
SIXTH: The Servicer agrees that a representative o£ the
Authority may at any time during ordinary business hours examine
all books and records relating to any loan or loans serviced by
the Servicer for the account of the Authority.
SEVENTH: Said Servicer further agrees that in case of flefault
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under any mortgage, when directed in writing by said Authority
so to do, to supervise the institution, through its attorney, or �
such other attorney as may be designated by said Authority, II
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foreclosure proceedings or proceed to acquire the property by
other means� according to the laws of the State of Colorado
governing foreclosure of mortgages and said Authority shall
deliver to said Servicer the notes, mortgages, and other docu-
ments necessary to the proper prosectuion of such proceedings
and shall pay to the said Servicer all proper costs and expenses
incurred by it in such proceedings, including a reasonable
fee charged by its attorney, if said Servicer's attorney is
retained. In the event of rental and/or management of properties
prior to disposition, the Servicer will be allowed to retain 58
of gross rentals."
EIGH?'H: The S�ervicer shall service said mortgages continuously
from the date hereof until the principal and interest of the mortgages
are paid in full, or until said mortgages are discharged by fore-
closure or otherwise.
The Servicer further agrees that, at the request of the Authority,
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the Servicer Wi�i service such other loans as the Authority may
acquire from other sources upon the same terms and conditions. I
The Authority shall have the right to terminate this agreement i
at any time, without cause, on 60 davs erritten notice to the i
Servicer whereupon the rights to compensation hereunder shall f
immediately terminate, subject to adjustments as follows: The �
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Servicer shall forthwith deliver to the Authority a statement '
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showing monthly payments collected and a statement of all monies i
held in trust by it for the payment of maintenance and other charges
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and shall immediately pay over to the Authority all monies so held, '.�`�
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provided, however, that in the event of such cancellation by the �
Authority without cause the Authority shall pay to the Servicer �
a sum which is equal to i8 of the aggregate outstanding principal
amount of mortgages being serviced hrerunder at the time of
cancellation. Adjustment of the compensation provided for in this
agreement will be made to the date of cancellation.
This agreement shall inure to the benefit of and be binding
upon the parties hereto and their resoective successors and
assigns. The Servicer wi.11 not assign its interest under this -
� contract except with the written consent of the Authority first
had and obtained. This contract may be assigned by the Authority ?
without consent of the Servicer, but no such assignment shall
be considered or construed as an assignment of the servicing
rights of the Servicer thereunder.
NINTH: With respect to each lnan which shall be serviced
by the Servicer, the Servicer shall be paid, for the servicing
thereof, a sum "paid" by the Authority to the "Servicer" to be
agreed upon at the time of each transfer, said amounts to be
deducted from monthly payments as herein mentioned, not to exceed
one quarter a£ one percent (1/4�) per annum of the unpaid
principal balance of the individual unit purchaser's unpaid
principal balance, to be deducted from the interest thereon �
as collected, The Servicer shall also retain any "late charges"
collected in accordance with the provisions of the notes in
question. a
• fihe Servicer will be also entitled to a fee for processing
. any conveyance approved by the Authority. Such fee will not
exceed fees allowed by FHA for similar transactions.
TENTH: In the event of the insolvency of the Servicer or of �
its failure to account for funds coming into its hands as the �
servicing agent hereunder, or of its failure to perform any
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duties a reed b it to be i
q Y performed hereun8er� then, in any of
said events, but not otherwise, the Authority shall have the right �
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upon ten (10) days written notice to the Servicer to take over
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and perform the duties which the Servicer agrees to perform under j
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the provisions of this agreement. Zn such event, the right of �'�
the Servicer to retain the compensation and "late charges" as
provided hrerunder shall be terminated. In the event of
consolidation, reoraanization or merger of the Servicer, the
company resulting from such consolidation, reorganization or
merger shall succeed to the rights and.duties df,s.aid.3ervicer
hereunder and shall continue to enjoy the benefits of and perform
the provisions o£ this instrument.
ELEVENTH: In the event of termination, the Servicer shall
fuznish an accounting of and remit all sums held or subsequently �
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, received in connection with loans serviced for the Authority or
affected by said termination, other than fees received for
servicing which the Servicer is entitled to retain as compensa-
tion under the provisions herein. Upon receipt by the Authority
of a final and complete accounting and of such funds held by the
Servicer, the Servicer shall be relieved of all duties and
obligations imposed upon the Servicer by this agreement as to '
loans covered by the termination. The Servicer agrees to deliver
, to the Authority a12 papers, documents and other information that
may be required and available in its files pertaining to the
loans affected by the ternlinatioa. � °
IN WITNESS FdHEREOF, the parties and first and second parts
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have caused this agreement to be signed and attested by their
respective officers thereunto duly authorized and their
respective corporate seals to be hereunto affixed on the day
and year first above written.
�'��� BY:--����'�Q�������
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�r>, t.: n�"/ "'" CENTRAL BANK OF DENVER �
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;._��,r_.�� A Sanking Corporation
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and shall immediately pay over to the Authority all monies so held, `' ��F�`
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provided, however, that in the event of such cancellation by the � _
Authority without cause the Authority shall pay to the Servicer
a sum which is equal to 1$ of the aggregate outstanding principal
amount of mortgages being serviced hrerunder at the time of
cancellation. Adjustment of the compensation provided for in this
agreement will be made to the date of cancellation.
This agreement shall inure to the benefit of and be binding
upon the parties hereto and their resnective successors and
assigns. The Servicer will not assign its interest under this -
contract except with the written consent of the Authority first
�
had and obtained. This contract may be assigned by the Authority ;
without consent of the Servicer, but no such assignment shall
be considered or construed as an assignment of the servicing
rights of the Servicer thereunder.
NINTH: With respect to each laan whicli shall be serviced
by the Servicer, the Servicer shall be paid, for the servicing
thereof, a sum "paid" by the Authority to the "Servicer" to be
agreed upon at the time of each transfer, said amounts to be
deducted from monthly payments as herein mentioned, not to exceed
one quarter of one percent (1/4�) per annum of the unpaid
principal balance of the individual unit purchaser's unpaid
principal balance, to be deducted from the interest thereon , �
as collected, The Servicer shall also retain any "late charges"
collected in accordance with the provisions of the notes in
question. ;
• The Servicer will be also entitled to a fee for processing
. any conveyance approved by the Authority. Such fee will not
exceed fees allowed by FHA for similar transactions.
TENTH: In the event of the insolvency of the Servicer or of
its failure to account for funds coming into its hands as the �
servicing agent hereunder, or of its failure to perform any
1
duties agreed by it to be performed hereunder� then, in any of �
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said events, but not otherwise, the Authority shall have the right ;
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upon ten (10) days written notice to the Servicer to take over i
and perform the duties which the4Servicer agrees to perform under i
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the provisfons of this agreement. In such event, the right of '�
the Servicer to retain the compensation and "late charges" as
provided hrerunder shall be terminated. In the event of
cottsolidation, reoraanization or merger of the Servicer, the
company resulting from such consolidation, reorganization or
mezqer sha1Z succeed to the rights and.duties dE,s.asd�&esvicer
hereunder and shall continue to enjoy the benefits of and perform
the provisions of this instrument.
ELEVENTA: In the event of termination, the Servicer shall
furnish an accounting of and remit all sums held or subsequently �
)
received in connection with loans serviced for the Authority or
affected by said terr.eination, other than fees received for
servicing which f.he Servicer is entitied to retain as compensa-
tion under the provisions herein. Upon receipt by the Authority
of a final and complete accounting and of such funds held by the
Servicer, the Servicer sha11 be relieved of all duties and
obligations imposed upon the Servicer by this agreement as to '
Zoans covered by the terminatian. The Servicer agrees to deliver
to the Authosity all papers, documents and other information that
may be required and available in its files pertaining to the
loans a£fected by the terriinatioa.
IN L4ITNESS WHEREOF, the parties and first and second parts
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have caused this agreement to be signed and attested by their
respective officers thereunto duly authorized and their
respective corporate seals fo be hereunto affixed on the day
and year first above written.
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`'�`:;?�'�`� A Banking Corporation ?
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