STATE AGENCIES' MANUAL
 

APPENDIX L
 
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ATTENTION: THE DEED OF CONVEYANCE MUST STATE THAT THE 
 

PROPERTY IS SUBJECT TO THIS AGREEMENT, AND THIS DOCUMENT MUST BE
 

RECORDED IMMEDIATELY FOLLOWING THE RECORDATION OF THE DEED IN
 

THE LAND RECORDS OF THE JURISDICTION IN WHICH THE PROPERTY IS
 

LOCATED.
 

Federal Deposit Insurance Corporation
 

AFFORDABLE HOUSING PROGRAM
 

LAND USE RESTRICTION AGREEMENT:
 

PURCHASE OF SINGLE-FAMILY RESIDENCE OR CONDOMINIUM
 

BY A QUALIFYING OR RESIDENT HOUSEHOLD
 

This LAND USE RESTRICTION AGREEMENT (the "Agreement") is
 

entered into as of the ______________ day of ________________
 

by and between _________________________________________
 

(the "Buyer") and the Federal Deposit Insurance Corporation (the
 

"FDIC',), acting in its [specify capacity) ___________________
 

__________ ] (the "Seller"), and their respective successors and
 

assigns, with respect to certain real property and the
 

improvements thereon, located at
 

________________________________________ and having the legal
 

description set forth on Exhibit A hereto (the "Property").
 

The parties, intending to be lawfully bound, for good
 

and valuable consideration, the receipt of which is hereby
 

acknowledged, do hereby agree as follows:
 

1. Termination.
 

a. This Agreement shall terminate automatically,
 

without further action by either the Buyer or the Seller, at
 

11:59 p.m. on the ___________________ day of __________________
 

_________,(the "Termination Date"), which is the date one (1)
 

year after the date of this Agreement.
 

b. This Agreement shall terminate prior to the
 

Termination Date, without further action by either the Buyer or
 

the FDIC, only on such date that (i) a termination statement or a
 

release of this Agreement, executed by the FDIC, is recorded by
 

the Buyer in the land records of the jurisdiction in which the
 

Property is located; (ii) the Property is transferred pursuant to
 

FDIC - One Year Land Use Restriction Agreement
 

Single Family sales to Qualified or Resident Households
 

(includes FDIC properties and former RTC properties)
 

Revised 1/31/96
 
 a foreclosure proceeding instituted by a Mortgagee (as defined
 

below) that extinguishes the right, title and interest of the
 

Buyer in the Property; (iii) a deed in lieu of foreclosure is
 

executed by the Buyer to a Mortgagee and recorded in the land
 

records of the jurisdiction in which the Property is located; or
 

Uv) a mortgage insured by the U.S. Department of Housing and
 

Urban Development ("HUD") is assigned to HUD.
 

c. For purposes of this Agreement, "Mortgagee" shall
 

mean (i) a federally insured financial institution; or (ii) an
 

agency or corporation in the business of making home mortgage
 

loans that has made a loan to the Buyer, secured by a first or
 

second lien on the Property, for the purpose of financing the
 

acquisition of, or the making of improvements to, the Property.
 

d. In the event of a termination of this Agreement due
 

to a foreclosure instituted by a Mortgagee or the execution of a
 

deed in lieu of foreclosure by the Buyer to a Mortgagee as
 

described above in paragraphs b. and c., the restrictions on
 

resale described herein shall have no further force or effect on
 

either the Mortgagee or any subsequent owners or purchasers of
 

the Property.
 

2. Buyer's Intention to Occupy the Property as its Principal
 

Residence. The Buyer does hereby certify to the Seller that the
 

Buyer intends to occupy the Property as the Buyer's principal
 

residence for at least twelve (12) months from the date of this
 

Agreement.
 

3. Recapture Requirement.
 

a. If the Buyer, prior to the Termination Date, (i)
 

enters into a contract with another party that results in the
 

transfer or conveyance of his/her interest in the Property or
 

(ii) transfers or conveys his/her interest in the Property, for
 

payment of money, the FDIC shall recapture seventy-five percent
 

(75%) of the amount of any proceeds from the resale that exceeds
 

the sum of (A) the original sales price for the acquisition of
 

the Property by the Buyer, (B) the reasonable and customary
 

closing costs incurred by the Buyer in connection with said
 

acquisition less any closing cost credits received from Seller
 

(together, (A) and (B) total _____________________ Dollars
 

($_________)), plus (C) the actual cost of any improvements to
 

the Property made after the date of the Buyer's acquisition of
 

the Property.
 

FDIC - One Year Land Use Restriction Agreement
 

Single Family sales to Qualified or Resident Households
 

(includes FDIC properties and former RTC properties)
 

Revised 1/31/96 2
 
b. The payment of any amounts which may be recaptured
 

pursuant to paragraph a. shall be a personal obligation of the
 

Buyer.
 

c. For purposes of this Agreement, "actual cost of any
 

improvements" shall mean such costs incurred and paid by the
 

Buyer as a result of repairs or other physical improvements
 

performed on the Property that are evidenced through invoices,
 

receipts and like documents.
 

4. Waiver of the Recapture Requirement. The FDIC, in its-sole
 

discretion, may waive said recapture requirement only for good
 

cause shown, which may include any necessary relocation of the
 

Buyer. In the event the Buyer desires to obtain a waiver of said
 

recapture requirement, the Buyer must notify the FDIC, in
 

writing, at the address set forth below, setting forth the
 

reasons for such waiver request. The Buyer shall include a
 

release of this Agreement, in recordable form, prepared at the
 

Buyer's sole expense, with his/her waiver request. After receipt
 

of the Buyer's waiver request, the FDIC shall have sixty (60)
 

days to either grant or deny the request; in the event
 

that the waiver request is granted, the FDIC shall execute the
 

release of this Agreement, return said release to the Buyer and,
 

upon the transfer of the Property, the Buyer shall record the
 

release, at his/her sole expense, in the land records of the
 

jurisdiction in which the Property is located.
 

5. Sale Prior to Termination Date. In the event that the Buyer
 

intends to transfer or convey his/her interest in the Property
 

prior to the Termination Date, without a waiver of said
 

recapture requirement, the Buyer must notify the FDIC, in
 

writing and at least sixty (60) days prior to said transfer or
 

conveyance, at the address set forth below, of his/her intention
 

and include the name and address of the responsible closing
 

agent, to be notified as described below. The Buyer shall
 

include a copy of this Agreement, copies of invoices or other
 

written evidence of the actual cost of any improvements (in
 

accordance with Section 3 above), and a release of this
 

Agreement, in recordable form, prepared at the Buyer's sole
 

expense, with said notification. The FDIC shall execute the
 

release of this Agreement and send it to said closing agent with
 

instructions as to the calculation and payment of the recapture
 

amount set forth in Section 3a. above. The closing agent shall
 

record the release, at the Buyer's sole expense, in the land
 

records of the jurisdiction in which the Property is located.
 

FDIC - One Year Land Use Restriction Agreement
 

Single Family sales to Qualified or Resident Households
 

(includes FDIC properties and former RTC properties)
 

Revised 1/31/96 3
 
6. Notice. All correspondence to the FDIC shall be sent to the
 

FDIC at the following address: Federal Deposit Insurance
 

Corporation, 550 17 th Street, N.W., Washington, D.C. 20429,
 

Attention: Office of Affordable Housing.
 

7. Survival. Any rights and/or remedies available to either
 

the Seller or the Buyer with respect to the enforcement of this
 

Agreement and/or the collection of the recapture amount as set
 

forth in Section 3a. shall survive this Agreement and may
 

continue to be enforced by either the Seller or the Buyer after
 

the Termination Date specified in Section 1.
 

IN WITNESS WHEREOF, the parties hereto have executed this
 

Land Use Restriction Agreement as of the date first above
 

written.
 

BUYER
 

By: _________________________________________
 

Name (print): ______________________________
 

SELLER
 

Federal Deposit Insurance Corporation,
 

in its _________________________________________________________
 

By: _________________________________________
 

Name (print): ______________________________
 

Title: ______________________________________
 

[ADD APPROPRIATE ACKNOWLEDGEMENTS FOR BUYER, SELLER, AND
 

FDIC]
 

FDIC - One Year Land Use Restriction Agreement
 

Single Family sales to Qualified or Resident Households
 

(includes FDIC properties and former RTC properties)
 

Revised 1/31/96 4
 
EXHIBIT A
 

LAND USE RESTRICTION AGREEMENT
 

PURCHASE OF SINGLE-FAMILY RESIDENCE OR CONDOMINIUM
 

BY QUALIFYING OR RESIDENT HOUSEHOLD
 

LEGAL DESCRIPTION
 

FDIC - One Year Land Use Restriction Agreement
 

Single Family sales to Qualified or Resident Households
 

(includes FDIC properties and former RTC properties)
 

Revised 1/31/96 5