Surplus Cash Note: Note Must Be On or After The Maturity Date of The Note.)

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Surplus Cash Note U.S. Department of Housing OMB Approval No. 2502-0598
and Urban Development (Exp. 9/30/2021)
Office of Housing
Public Reporting Burden for this collection of information is estimated to average 0.5 hours per response, including the time for
reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing
the collection of information. Response to this request for information is required in order to receive the benefits to be derived. This
agency may not collect this information, and you are not required to complete this form unless it displays a currently valid OMB
control number. While no assurance of confidentiality is pledged to respondents, HUD generally discloses this data only in
response to a Freedom of Information Act request.
Warning: Federal law provides that anyone who knowingly or willfully submits (or causes to submit) a document containing any
false, fictitious, misleading, or fraudulent statement/certification or entry may be criminally prosecuted and may incur civil
administrative liability. Penalties upon conviction can include a fine and imprisonment, as provided pursuant to applicable law, which
includes, but is not limited to, 18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802, 24 C.F.R. Parts 25, 28 and 30, and 2 C.F.R. Parts
180 and 2424.
Project Name: _____________________________

HUD Project No: _____________________________
FOR VALUE RECEIVED, ________________________________________________

(“Maker”) promises to pay to
_______________________________________________ (“Payee”) the sum of
_____________________________________________________ Dollars
($____________), payable at ________________________________________ with
interest on any remaining balance of principal at _______________ per cent
(_________%) per annum payable annually or semi-annually, commencing
______________________, 20____, and thereafter on the first day of
__________________ until the entire indebtedness has been paid. Any interest not so
paid shall not create any default in the terms of this note but shall accrue and be
payable in full on the maturity date hereof. In any event, the balance of principal, if any
remaining unpaid, plus accrued interest, shall be due and payable on
_____________________, 20___ (“Maturity Date”). The definition of any capitalized
term or word used herein can be found in this Surplus Cash Note, the Regulatory
Agreement dated ______ between Maker and the Secretary of Housing and Urban
Development (“HUD”), or the Security Instrument dated ______________ securing that
certain Note (“Note”) in the principal amount of $____________________ made by
Maker to_______________________. [Note: The Maturity Date of this Surplus Cash
Note must be on or after the maturity date of the Note.]
This Surplus Cash Note is subject to the following terms and conditions:
1. In the event that the maturity date of that certain Note referenced above is
extended and such extension is approved in writing by HUD, then in such event
the Maturity Date shall automatically be extended to the extended maturity date
of the Note without the consent of Payee.
Previous editions are obsolete Surplus Cash Note HUD-92223M (6/18)

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2. Except as provided in Section 5 below, as long as HUD is the insurer or holder of

the Note secured by the Security Instrument, payments due under this Surplus
Cash Note shall be payable only from no more than 75% of available Surplus
Cash. The restriction on payment imposed by this paragraph shall not excuse
any default caused by the failure of Maker to pay the indebtedness evidenced by
this Surplus Cash Note. In no event may payments due under all subordinate
debt of Maker cumulatively exceed 75% of available Surplus Cash.
3. In the event the Indebtedness secured by the Security Instrument is paid in full
and the Security Instrument released of record, then the holder of this Surplus
Cash Note may, at its option, declare the whole principal sum or any balance
thereof, together with interest thereon, immediately due and payable.
Notwithstanding the foregoing, in the event said indebtedness is paid in full by

way of any substitute indebtedness of Maker secured by any substitute security
instrument insured or held by HUD under Section 223(a)(7) of the National
Housing Act, as amended, the maturity date of this Surplus Cash Note shall
automatically be extended to the maturity date of the note evidencing the
substitute indebtedness without the consent of Payee.
4. Maker may pay any part or all of the principal of this Surplus Cash Note on any
interest payment date, provided no such prepayment of principal in any amount
or any payment of interest shall be made except from Surplus Cash in
accordance with the conditions prescribed in the Regulatory Agreement.
5. Notwithstanding the provisions of paragraphs numbered 2, 4, and 7, Maker may

also make payments due hereunder from sources other than Project income or
Project Assets.
6. Any unauthorized payments, as determined by HUD, shall be returned to the

Project immediately upon discovery.
7. Except as permitted pursuant to Paragraph 5 hereof, no prepayment of this

Surplus Cash Note shall be made until after final endorsement for mortgage
insurance by HUD of the Note, unless such prepayment is made from non-
Project sources.
8. This Surplus Cash Note is non-negotiable and may not be sold, transferred,
assigned, or pledged by Payee.
9. Interest on this Surplus Cash Note shall not be compounded as long as HUD is
the insurer or holder of the Note secured by the Security Instrument. {The
preceding may be stricken and replaced with “Intentionally Omitted” upon
prior written approval of HUD in conformance with Program Obligations.}

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10. Maker hereby waives presentment, demand, protest and notice of demand,
protest and nonpayment of this Surplus Cash Note.
The terms and provisions of this Surplus Cash Note are also for the benefit of and
are enforceable by HUD against any party hereto, their successors and assigns.
This Surplus Cash Note may not be modified or amended without the written
consent of HUD.
IN WITNESS WHEREOF, Maker has signed this Surplus Cash Note on this ______ day
of ____________, 20 ____.
MAKER: ________________________________
By: _____________________________
Name:
Title:

Surplus Cash Note: Note Must Be On or After The Maturity Date of The Note.)

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Project Name: _____________________________

FOR VALUE RECEIVED, ________________________________________________

Previous editions are obsolete Surplus Cash Note HUD-92223M (6/18)

2. Except as provided in Section 5 below, as long as HUD is the insurer or holder of

Notwithstanding the foregoing, in the event said indebtedness is paid in full by

5. Notwithstanding the provisions of paragraphs numbered 2, 4, and 7, Maker may

6. Any unauthorized payments, as determined by HUD, shall be returned to the

7. Except as permitted pursuant to Paragraph 5 hereof, no prepayment of this

Previous editions are obsolete Surplus Cash Note HUD-92223M (6/18)

Previous editions are obsolete Surplus Cash Note HUD-92223M (6/18)

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