Loading...
HomeMy WebLinkAboutFORCHIONE, RICHARD & DEBRA L. - 1997-07-21CITY OF HUNTINGTON BEACH Inter -Office Communication Economic Development Department DATE: June 12, 2000 TO: Gus Duran, Housing/Redevelopment Manager FROM: Joyce DeKreek, Housing/Redevelopment Consultan SUBJECT: Research on Loan Forgiveness, I" Time Home -Buyers Program Redevelopment Set -Aside, $400,000 and Redevelopment Set -Aside, $750,000 I have reviewed our records regarding funding of I" Time Home -Buyers Program to determine the names and amount of assistance which benefited the applicants from the $400,000 in Redevelopment Set -Aside funds approved by the Redevelopment Agency (RDA) at their November 1, 1993, meeting and from the $750,000 in Redevelopment Set -Aside funds approved by the RDA for the Pacific Park Villas at their February 6, 1995 meeting. The Redevelopment Agency approved nine applicants from the $400,000 allocation in conjunction with the City's CDBG V Time Home -Buyers Program and one additional applicant for the RDA I" Time Home -Buyers Program only. The RDA portion of these loans are Bastou ($25,000), Dieckmeyer ($23,000), Griffen ($25,000), Hoang ($23,000), Lawson ($23,000), Melvin ($35,000), Otto ($23,000), Quick, S. ($16,717), Quick, T. ($25,000), Rivera H. ($25,000). Quick, T. withdrew from the CDBG loan but maintains the RDA loan. These loans total $243,717. The Redevelopment Agency approved fifteen (15) applicants from the $750,000' . allocation at Pacific Park Villas (PPV) to participate in the Redevelopment Agency in Time Buyer Program. The names and amounts are (Carrillo ($35,000), Forchione ($35,000), Heckethom ($35,000), Hosseinali ($35,000), Hocker ($35,000), Lawrence ($35,000), Murch ($35,000), Osterhoudt ($35,000), Peltier ($35,000), Rivera -Burgess ($35,000), Wallace ($35,000), Weinfeld ($35,000), Wong ($35,000), Krueck ($35,000), Margoles ($35,000). These Ioans total $525,000. Four loans (Melkerson/Uniack, Ojeda, RenuVWte, Stratton), previously approved by RDA were not funded. G foyce/Intmnemo Recon vey.doe •.i: ����>, ._ - ,";• :i" - t .== � pry-+''- sn=y-.F;„�.:at•+�.' ._ - �• •: ' � - •!••'_ r�-. •F•4� {�•��i iF , '+�i:i.Z i� i`�.V. i%Y,j �y�'Y1-•'.�,- �.�.. ... One loan (Wallace) was assumed by another qualified buyer {Stay). Two applicants have paid their loans: Melvin, paid off his RDA loan 10/21/1997 in the amount of $40,794.31 and Hoang, paid off his RDA loan on 12/21/1999 in the amount of $47,208.80. A check in the amount of $4,116.57 was issued to Mr. Hoang for overpayment, reducing the Ioan repayment to $43,092.23. These loans accrue simple interest at 5%, due and payable upon sale to a non qualified buyer and has shared equity. Cc: Connie Brockway, City Clerk Paul D'Alessandro, Deputy City Attorney David Biggs, Director, Economic Development John Reekstin, Director of Administrative Services Dan VillelIa, Director of Finance Jake Rahn, Administrative Services Hank Reveles, Sr. Accountant Joyce de Kreek, Economic Development Steve Holtz, Development Specialist G:rjoyccIInw== Reconny.doc V r PACIFIC PARK VILLAS ($750,000 -- RDA) 95-01 (2-1-95) CariIlo, Ann S 35,000 7861 Happy Drive, #102 RDA 12-19-94 95-02 (2-1-95) Lawrence, James and Jeanette $ 35,000 18051 Joyful Lane, #16 RDA 12-19-94 95-03 (2-1-95) Wong, Wesley Chi $ 35,000 7681 Happy Drive, #202 RDA 12-19-94 95-04 (2-1-95) Hocker, Christopher/Vandereb, Gayle$ 35,000 7681 Happy Drive, #101 RDA 12-19-94 95-06 (4-12-95) Rivera, Victor/Burgms, Debra $ 35,000 18061 Joyful Lane, #104 RDA 4-3-95 96-01 (1-24-96) Heckethoine, Sean & Jacquelyn $ 35,000 7871 Happy Drive, #102 RDA 1-16-96 96-02 (3-7-96) Margolis, Peter $ 35,000 18651 Joyful Lane, #104 RDA 3-4-96 96-03 ( Weinfeld, Julie $ 35,000 18061 Joyful Lane, #205 'RDA 4-1-96 96-04 (7-17-96) Peltier, Edward $ 35,000 7871 Happy Drive, #201 RDA 7-15-96 96-05 (8-7-96) Wallace, Barbara Jo $ 35,000 18051 Joyful Lane, #205 RDA 8-5-96 96-06 (8-7-96) Murch,"Gregory $ 35,000 18051 Joyful Lane, #102 RDA 8-5-96 97-01 (1-29-97) Krueck, Deborah $ 35,000 18061 Joyful Lane, #101 RDA 1-21-97 97-02 (4-30-97) Qsterhoudt, Robert and Kathy $ 35,000 18061 Joyful Lane, #102 RDA Gloycenraffmcmo Reconvey.doc °� CITY OF HUNTINGTON BEACH Inter -Office Communication L94 Economic Development Department DATE: May 23, 2000 TO: Gus Duran, Housing/Redevelopment Manager FROM: Joyce DeKreek, Housing/Redevelopment Speciali SUBJECT: Research on Loan Forgiveness, I" Time Home -Buyers Program 2nd $100,000 I have reviewed our records regarding funding of 1" Time Home -Buyers Program to determine the names and amount of assistance which benerited the applicants from the 2nd $100,000 in CDBG funds approved by the City Council at their December 20, 1993, meeting. At that meeting eight applicants (Hoang, Heildesch, Quick, Lawson, Steenveld, Otto, Dieckmeyer and Chavez) were approved to participate in the 1"Time Home -Buyers Program, totaling $59,100. However, two (2) applicants (Heildesch, Quick (Shauna) withdrew (or participated in another program) , thereby lowering the total amount of assistance to $53,150. I have no record on Steenveld or Chavez (either on microfilm or files) and after checking with City Clerk's office, I believe these loans may not have been funded. If that's true, the total amount of assistance is lowered to $31,900. Since that meeting Bastou ($5,000), Griffen ($5,300), Melvin ($10,000), Quick (Theresa) ($5,000) and Rivera H. ($5,000), were approved for CDBG 1" Time Buyer Assistance in conjunction with the Redevelopment In Time Buyer Assistance. Quick T. signed loan docs but withdrew prior to recording the does. The CDBG amount of assistance is $25,300. Two applicants have paid back their loans: Hoang, CDBG loan paid on 12/21/1999 in the amount of $8,229.72 and Melvin, CDBG loan paid on 10-21-1997 in the amount of $11,655.36.. 0royce/1nW=rm Reconvey loc _,_ N '• ice. � .s � ` •� � , � •` - ,• � - � — -. These loans are accrued at a 5% simple interest rate, due and payable upon sale, transfer, etc. Cc: Paul D'Alessandro, Deputy City Attorney Joyce de Kreek, Economic Development Steve Holz, Development Specialist GrjoycrAntmwnio Reconvey doc V °�d CITY OF HUNTINGTON BEACH Inter -Office Communication Economic Development Department DATE: May 4, 2000 TO: Gail Hutton, City Attorney IV4 FROM: David Biggs, Director Economic Development SUBJECT: Research on Loan Forgiveness, In Time Home -Buyers Program lft $100,000 '4Ve have reviewed our records regarding funding of 1st Time Home -Buyers Program to determine the names and amount of assistance which benefited the applicants from the l:t $100,000 in CDBG funds approved by the City Council at their 10/25/1993 meeting. At that meeting, four applicants (Culaciati, Tullock, Taban and Sutherland) were approved to participate in the I" Time Home -Buyers Program, totaling $40,475. However, one applicant (Tullock) withdrew, thereby lowering the total amount of assistance to $34,825. At their 12/6/1993, meeting, City Council approved three more applicants (Schmaderer, Kanarski and Kormeluk), totaling $27,100. However, one applicant (Kanarski) withdrew, thereby lowering the total amount of assistance to $23,000. At their 1212011993, meeting, City Council approved one more applicant (Dixon), totaling $10,000 and made motion to increase the amount of assistance previously approved for Kormeluk by $2,000, for a total amount of assistance of $12,000. At their 1/311994, meeting, City Council approved three more applicants (Young, Love and Ommondson), totaling $31,000. Groycefttennemo Reconvey.doc V The total amount of actual funded loans for the original 1:t Time -Buyer Program ($100,000) is $100,825. All but two loans needing a Full Reconveyance have been approved and processed for Full Reconveyance. The two outstanding loans are Ommundson and Taban. Cc: Paul D'Alessandro, Deputy City Attorney Joyce de Kreek, Economic Development Gfoyce/lntm=mo Reconvey.doc �•�-_'.�•{� �s- t«'7!"f•r� _`Fi'rr+'wa7°x'j�tn�f � . - '�r�r.�.r+.•4r'.'f! �. _ �'L := it C' ,.,r- : t: .,•`.r-Ma <!' - i�; . c r_c•i.Si- � at• I•`I[':i�'*t) .y!- - e'�•-'-'[. , .�•-. r :t::; .•.. . 97-03 (5-14-97) Hosseinali, Faroukh $ 35,000 18061 Joyful Lane, 4201 RDA - 97-04 (7-23-97) Forchine, Richard $ 35,000 18051 Joyful Lane, #201 RDA 7-21-97 1st TIME BUYER ASSISTANCE ($400,000 RDA) 94-4 (2-11-94) Lawson, Sally $ 23,000 409 Utica Avenue #A-1 . (RDA 1-18-94) 94-5 (2-11-94) Quick, Shauna S I6,717 409 Utica Avenue #C-32 (RDA 1-18-94) 94-6 (2-11-94) Dieckmeyer, Barbara $ 23,000 409 Utica Avenue'#B-21 (RDA 2-22-94) 94-8 (2-11-94) Otto, TJShorb R. - - $ 23,000 409 Utica Avenue #A-7 (RDA 1-18-94) 94-10 (2-11-94) Hoang, Tam S 23,000 409 Utica Avenue #D-37 (RDA 2-22-94) 94-11(5-18-94) Bastou, Valerie $ 25,000 409 Utica Avenue #D-43 (RDA 5-18-94 94-12 (5-18-94) Quick La Reine, Teresa $ 25,000 409.Utica Avenue #A-9 (RDA 5-18-94) 94-13 (6-23-94) Melvin, Patrick $ 35,000 409 Utica Avenue #D-39 (RDA 6-20-94) 94-14 (7-27-94) Rivera, Hector & Iciar $ 25,000 409 Utica Avenue #A5 (RDA 7-18-94) 94-17 (10-4-94) Grif #'en, Olga Christina S.25 000 409 Utica Avenue #C-23 (RDA 9-19-94) S 243,717 GAjoycennterrncm Rceonvey.doc 4 m 19093 Beach oulevard • Huntington Beach, 8 • (714) 843-�i��y�A y1�ri43-9" Sassounian Capital Ventures Escrow Officer: Linda J. Campbell Property Address: 18051 Joyful Lane #201 Huntington Beach, Ca 92648 REF. NO. AMOUNT 1305 Capital Contribution Pacific Park Vill 351.38 1305 Delinquent Taxes Lawyers Title Ins 1,046.98 CERTIFIED TO BE A TRUE AND EXAGI COPY OF TIE OR!GINAL HEREOF, TIEMPO ESCROW C. By_ _._.---- 11111 1 1 1 111 111111 1 11 11111111111111 II 11 1 1111 1 111111111111111111111 Illtlll 1 1 1 11111 19093 eac ou evar • unting on Be ac 648 • (714) 843-CR + VP Richard Forchione & Debra L. Forchione 3-99 Escrow Officer: Linda J. Campbell Property Address: 18051 Joyful Lane #201 Huntington Beach, Ca 92648 REF. NO. 1305 HOA Certification Fee 1305 Payoff: Reliable 1305 Payoff: Data Line 1305 Payoff: Data Line 1305 Payoff: Data Line 1305 Payoff: Data Line Goldenwest Proper Reliable Data Line Data Line Data Line Data Line TRUE RND EXPCa CERTIFIED TO BE A HEREOF• RtGINAL COPY OF TIC` ;:y, INC TIENi?0 ESC AMOUNT 35.00 409.00 158.00 158.00 52.00 49.00 19093 Beach Boulevard • Huntington Beach, CA 92648 • (714) 843-0101 • FAX (714) 843-9945 Office of The City Clerk Date: August I, 1997 City of Huntington Beach Escrow► No.: 10225-C 2000 Main Street Huntington Beach, Ca. 92648 Property Address: 28051 Joyful Lane #20I, Huntington Beach, Ca 92649 in connection with the above -numbered escrow, we are enclosing herewith the following: City Loan Documentation executed by Forchione Copy of the Note and Deed of Trust - Ist Trust Deed Loan Certified copy of Buyer and Sellers Settlement Closing Statement. Copy of Evidence of Insurance This escrow recorded SPECIAL on Thursday, 07131197. If you should have any questions regarding the above, please do not hesitate to contact the undersigned. Thank you for your cooperation in this matter. Sincerely, Linda J. Campbell Escrow Officer .$.,hen}.$' •:;,;,,.y/i.:{'sR :;S { <$:>.;,} ?xti:x$$$$<$$$<'f B. TYPE OF LOAN i .... �ii...... v?•�$:4::i:}} .$}}.f:?i'vv}'•,•i y+?$.8.:.{ v: {%%$. v:::.?v: v; {??•: !ti r}}'•:M1{•, v .}..........:.v.} ti55{•r•/f{}$ y}.M1 :$$�':.:,}' •:; fi$.vr;:r iv:;f,.•fj:$}..i if•.:: w$:'�$•' •}.S'r}:C:i:•,v:;•ii{i l: �?:: v{y{.:?y: v v.4titiitiitititi Y:i$j:{ {}.::ti?}ifs:•:•?{${::kx:•.4 ..... ti$:•}�.r ...f v:}.-?f:;:S:}.y: 4•.fr.+.>!:�?r.v}:}$^lv�.}?: n; }}ys:•';:;G•::•v.\i• {{S},+.$�Sii }$$•i:+i�$$}v}:' • :r:.. . ti•}; rf•}^i?>•.+•::•:T'.{}:.y-?.,v.;;}ff$}•.i:+ ':}'{ .}: i.:> .}a$}}} }�k•. :Y.. / 7•::: • ::? :. w} . Y. :;:+4 : ` r::>:$:i::: 1. PfA ?. PP?fll }}#`:'{v:���•':�::.4:rr 4.....: :..A 4v ' 3. CQW. (%ilnl�. ???•}:\}y:$.>.• :•:v4• i$:$i.........r... r................ }, �.::.:}�:: i$$$:'i}.+ $: �-J}iv .r\ }r: . . X .,��rwT■= yam[}•.•{:$:: j:{•:. :•} 3 ,+:?•}x r•.: i?.z,•)•+?•:?4}:4:...•};// j::.; :•::; •• y :4:?< ` :,i:$ 4. VA S. GY1W. II19. vv.:• :}::'+i4s,•?FvS;: ••Qv. : •f?' •'`:F'• v+vf:if ❑ ❑ ,.A}•v.{i•'q. / v. fr.Y•: 4:.+f. :.4$••�i•v��k.••+. ,}:•,.v., }v •`•{?,\ l..: y f ti :...y..:.. .Ynw,. :fv.•n n::.+%F...n Yf?•}'}•'+•f•{'.f{.f N.. ;�.{virr-$:.•:^Y?•^):<i?:%w,vxl,..pr:nv\•.{4:G}\�Ci .v:Fnv: :.:i?$•v�:•}}:•}}}{v:{.T}:+{y:,i•:•}:::;: • v%fr i4{?h4:{v::'r'f$: +•;:•..f }>::i:•;;:$ •: 6. FIt 8 !fit 7. LOAN NOR .: : w : •::.v:.v.v.. yy }:$$S$5;:;}}}:vi::;: •i• : •' :y r';r: •'G:i'•}}.+.}:�i 7a il::'{:tip$$$$:{i{:$.tip$$$$:: •: %:•::.'.• :nv{::.; ..vf:f:.•: v\•:..:: •:. •: x::. }:•}'! •v ...i:.J::::.'�,'.,4•?+�:�f:.}{;}::.:ii }�:x::><:$f: ' -:��::,:s: -:�>,��'�; 10225 C 60000232 :{:;�''jr ..:: $ .}•.'!.•$;:}}}${�f•::$: x•f r:}....}v v.:ri.;. \J:i•:ti+:: rf �$:iY:}}:+.f•:?•:}'+' $:•:>r. v +i:•v$'ifJ': y:•T ::•\ :l•:-ti•X TT' v� • {'•:! :>}:f:: �'i:ii�..... ... iCK.fi?^J4......v. : .v{4i•`.:i n:.v. ...$.ivw..:.. . ,•:} •: ?,?• rr.. :•} +C ' .y,.� • .•:,•v'• }:v{:r �••:::.r} a. RORTCdGB .II�ANCE rasa :. /...mot• ••:f�'$ ' .k :+?i: •:4.v.v vki + f v' :?.}{:y:n:.::isM1vriv:}y\:}}::•i\�:�'�:•$:?v:�f,.4:}v $}:,.,.vj;,.. .. yi•U .f::ti}J i•:fi::•$:•}}.v: 4:}:::: ^•:: • `.:. .v??{. v r .'vi•.v. ...}viv: ::::.ii'ii{:tit}iit2vf•.k.v. i\•n±4i:•i:.}?F:::?: v..v .v:.:: v.... v.......\v/.n....vf..4: }.v::.v�i:....v:f.....v \v�:.:.n..:.4.{v v�:}.. :}. 0.. ROTE: This form is furniabed to give you a statement of actual settlement coats. Amounts paid to and by the settlement agent are shown. Items marked (p.o.c.) were paid outside of closing, they are abopa here for infosmaticnal purposes and are not included in the totals. D. MM OF BORROWER: Z. AWIIE OF SELLER: Richard FbxrAfone Sassounian Capital ventures Debra L. F0rchi0ne 18051 Joyful Lane #201 16373 Balsa Chica Huntington Beach, Ca. 92648 ,Street Hrmtingtan Beach, Ca. 92649 F. MUM OF rMam: G. PROPaRTY LOCATION: Consumer First Mortgage 18051 4.7oyful Lane #201 Attn: Yvonne Sears Hunt; on Beach, Ca 92648 15635 Alton Parkway, #450 Xxvine, California 92618 If. SETZMENEW AG WT PLACE OF SETMEMENT I. SE77LEM NT DATE TXE►ZFO ESCR W, 1 W. 19093 BEAM BLVD. BEMN, CA 92648 07131197 J. SUIOURY OF BORRONER•8 TRAB-8ACTI0AT Jr. SUI RY OF BELLa8-8 TBABSACTION 100. GROSS ALDUNT DUS FRGN BMUMM: 400. GROW Am Ew DUa To SELLER: 101. Contract sales price 175, 000. 00 401. Contract sales price $175, 000. 00 102. Personal property 402. Personal property 103. Settlement charges to borrower (Line 1400) 5,904.11 403. Zbtal for all Seller Deposits 104. 404. Seller Credits 105. 405. Adjustments for items paid by seller In advance Adjustments for Items paid by sallow in advance I06. City/town/taxes to 406. City/town/taxes to 107. County taxes to 407. County taxes to 108. Assessments 07 31 97 to 08101197 $5.86 408. Assessment, 07131197 to 08101197 5. 86 109. 409. 110. 410. Ill. 411. 112. 412. 120. MMS AMEM DOE FRCi DCRROWM 180,909.97 420. GR09S AmDUW DUa TO SBZLER $175,005.86 200. ANOUNPS PAID BY OR IN BEFLUY OF BORROWER: 500. RBOUCPIGNS IN AmOMYT DUE W SEMER: 201. Deposit of earnest money 501. Excess deposit (see instruction) 202. Principal amount of new loan(s) 131,250.00 502. settlement charges to seller (Line 1400) $2,562.13 203. Existing loan(s) taken subject to 503. Bloating loans taken subject to 204. 504. Payoff of first mortgage loan 205. All Other Buyer Deposits $44,800.00 5o5. Payoff of second mortgage loan 206. 506. 207. 507. 208. 508. 209. 509. Adjustment for Itema unpaid by seller Adjustment for items unpaid by seller 210. City/town taxes to 510. City/toen taxes to 211. County taxes 07 O1 97 to 07131197 $145.58 sir. County taxes 07 01 97 to 07 31 97 $145. 58 212. Assessments to 512. Assessments to 213. 513. 214. 514. 215. 515. 216. Cnedi t towards Z1Il W $4,800.00 s16. Credit towards ZJNW $4,800.00 217. 517. 218. 518. 219. 519. 220. TOTAL PAID BYIFGR BORROROUt 180, 995. 58 520. TMAL REDUMCK AUMWT DUE Sff.= $7, 507.71 300. CASE AT SBYTLM3 r MaKAO BORROWER 600. CASB AT SE1RZ5mENT TO/FRM SELLER 301. Gross amount due from borrower (Line 220) 180,909.97 601. arms amount due to sailer (Line 420) Z75, 005. 86 302. Lena amount paid by/for borrower (Line 220) 180,995.58 E02. Lase reductions in amount due seller (Line 5 ) $7,507.71 303. CASH ( FMK) •( 'X-W) BORRA .ii! - _ S`85. 91- '6c3. cAstr (X Ta) . r FROM) SELLER 167, 498.15 CER' FEED TO BE A TRUE AND EXACT.,, ES �0+: 'NC L HEREOF. By Esc oW Almiber: 10225-C ........:..:............ r.... •..................::: v., ......v....::::::: •:.: ... :..::•} ..vr.. {:. v. n. •:.v:; r. vv .v ..+. .. .. h ........................r.n................n......,.. ......... ,,:/ ... r... n....:. ..vv{ +....::r v ,C v.h.;;. .....:. ............... ........... ......... .:.........�: ,..,..,.,. ,.f.:.::. :....; rrr. v........:.. rr;::r..:..v..::..:::::.::n:•: r. :ti :•..:.; ::..n..;p::. ::�?i: + }i}.'., �i7..!.'•,:iFiY'�"' 700. TOTAL SALE91BROMMIS CCOUBSICK based an price PAID PROM BORROWER'S FVZWS AT SETrUME ll PAID FROM SELLER'S PEOWS AT SETTLEMENT Division of Commission (line 700) as follows: 701. 702. 703. Commission paid at settlement 704. 800. ITEMS PAYABLE IN =bWC1'ION WI471 LOAN 801. Loan Origination Pee 802. Loan Discount 803. Appraisal Fee to Marina Mort $200.00 804. Credit Report to Bos. Tax Service Fee Marina Mortgage $75.00 ti 806. Achinistration Fee IInPrald Pacific $295. 00 807. Loan Origination Fee Ehierald Pacific $1,312.50 BoB. Processing Fee Emerald Pacific $595.00 Bog. Document Fee Marina Mort $200.00 Blo. Lkndei-writi ig Fee Marina Mar-tcTage $400. 00 B11. Yield Premium paid by Lender Emerald Pacific (Poe) $2,953.13 900. 2:12W REQUIRED BY ZJUa= W BE PAID IN ADVANCE 901. Interest from 07131197 to 08101197 I s 35.9200 /day $35.92 902. Mortgage Insurance Premium for 1 menthe to 903. Nasard Insurance Premium for years to 904. years to sm. Wire Fee and Flood C Marina Mortgagee $1.00.00 1000. RESERVED DEPOSITED NnW Lffi�ER 1001. Basard insurance Months I per month 1002. Mortgage insurance Montha I per month 1003. City property taxes Mantba I per month 1004. County property taxes Months I per month 1005. Annual sense mantm Months I per month 1006. Months I per month 1007. Months I per month 1008. Afbnths I per month 1100. 7TZ%ff CHARGE9 1101. Settlement or closing fee to TIRO ESC2MO Il1A.', $493.50 11m. Loan Tie In Fee TiEwo ESCPXW, INC. $175.00 1103. Federal Mgoer1ess/U-mGSeZ2geer Fees 7=00 ESCROW, INC. $40.00 1104. 1105. Document preparation to 1106. Notary fees to Linda J. Campbell $60. 00 1107. 1108. Title insurance to Lawyers Title Tn urc-me $326.00 $371.70 Includes above items numbers 1109. Leader's coverage $131,250.00 1110. Ownar's coverage $175, 000.00 1111. Sub Title Fee Lawyers Title Mmirance $47.50 $47.50 1112. Lender EbCjorsements Lawyers Title Insurance $25.00 1113. Wire Fee Lawyers Title Xnearance $25. 00 1200. GOVERNMENT RECORDIM AND TRANSPER CHARGE 1201. Recording fees: Deed $10.00 r Mortgage $127.00 1 Release $137.00 1202. City/County tax/stampB: Dead $192. 50 , Mortgage $192.50 1203. State tax/stamps: Dead 1204. 1205. Additional Loan Policy (2nd) Lawyers Title Insurance $150.00 1300. AMITIONAL SEITLmWW CHARGES 1301. 08101197 IAA Dues Pacific Park Villas $175.69 1302• Peat inspection to 1303. Delinquent Z= Dues Pacific Park Villas $527.07 1304. Association Transfer Fee Golden West Pxcpext y $200.00 1305. See Attached +,ti:}i::v.:{?{v}v: +.. .... vry .+,,,..,x}+••h+;,}}}h.,.V}}},.+:.hv.vi,.:.. ?i+.:.. }}}•?.:: r:..v: .. .�. .....•�T:.....+!!?:. ......�i.;J:,Y,w'R. : %A,�Y:.;M;}iMNY; i'7i/iG` ;}� .• .' : ,+n?:i+ .:Y9VO.i::•,..�•('.tW'i:�^: :::R�Rti} ..!}:f?: r :.;k}S•Yf}i}i:'Y:l:}?'� ...vv:.:,..:..�'.:..r....'i.•.•.v:i..:'v'i.: .. �{:htii:::;:;v.• '{ni:i�{�:: ,'{`{:7}}vv:Cl,.. $861.00 �•}:iY ,i+. ` <,>.v:. .; •. .i�. •: :Ib:�ii{'i::{'ii'•::} $1,398.36 .}}{•{.}{?, . � .. + /��s : :�M :. C: ,, Y G - " EX&Cq - - ' - 31 INAL HEREOF Ti�P�er`�^ E'er cG V, INC. Tie items indicated by 'POC' have been included at they of the lender for disclosure purposes only. The escrow holder/settlement agent here "has -no -Am. wledgeem of these expenditures, emept as provided by the lender. They" have not been and cannot be verified as to the amount, the payee, nor actual payment and no liability is assemmzed by the closing agent as to the validity and/or the sufficiency thereof. V Prospective Borrower ATTACHMENT #1., L Ld Attachment No. I Down Payment Assistance Program Location of Property Loan Name Amount Subject to Trust Deert 97-04 Richard Forchione & $35,000 18051 Joyful Lane, #201 Debra L. Forchione Note: 1) Borrower has received "conditional loan approval" from first trust deed lender. 2) Pursuant to Agency direction, overtime and bonuses are considered indefinite sources of income and may or may not be used to qualify borrowers on a case -by -case basis. forchl.doc Loan Agreement EXHIBIT A Council/Agency Meeting Held: Zl2 J /'97 Deferred/Continued to: ®(Approved ❑ Conditionally Approved 0 Denied ,Ac City Clerkl Signature Council Meeting Date: July 21, 1997 1 Department ID Number: ED 97-31 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIUREDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL MEMBERWREDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, City Administrator/Executive Directo�C�� PREPARED BY: DAVID C. BIGGS, Economic Development Director SUBJECT: DOWN PAYMENT ASSISTANCE PROGRAM PARTICIPANT APPROVAL FOR PACIFIC PARK VILLAS PROJECT (Talbert -Beach Project Area) Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Statement of Issue: The Agency is committed by a Disposition and Development Agreement to provide second trust deed loans to moderate -income buyers in the Pacific Park Villas located in the Talbert -Beach Redevelopment Project Area. Funding Source: Redevelopment Agency Housing Set -Aside Funds, Account Number E TX-ED-923-7-75-00. Recommended Action: Motion to: Approve the borrower listed on the attached by name, the amount of the loan, and the specific property subject to trust deed and authorize the Chairperson and Agency Clerk to execute the loan documents between the Agency and the participant as prepared by the City Attorney, and authorize payment to be made to Tiempo Escrow in the amount of $35,000 on behalf of attached participants. Alternative Action(s): Do not approve the participant. Analysis: On June 3, 1993, the Redevelopment Agency approved a Disposition and Development Agreement (DDA) between the Agency and Sassounian Capital Ventures Inc., calling for the completion of 38 condominiums on a site in the Talbert -Beach Redevelopment Project Area. Under the DDA, $750,000 of Redevelopment Housing funds are committed to assist up to twenty-five moderate -income buyers in the Pacific Park Villas Condominium project. r-5 REQUEST FOR'L'OUNCIUREDEVELOPMENT7iGENCY ACTION MEETING DATE: July 21, 1997 DEPARTMENT ID NUMBER: ED 97-31 To date, the Redevelopment Agency has assisted 14 moderate -income buyers in the Pacific Park Villas project at a subsidy of $35,000 per unit. If approved by Council, this 15th loan will bring the total to $525,000, with a balance of $225,000 remaining from the $750,000 set - aside within the DDA. Environmental Status: Attachment(s)/Exhibits: Attachment 'I - Prospective Borrower Exhibits A. Loan Agreement B. Promissory Note C. Deed of Trust with Assignment of Rents D. Declaration of Covenants E. Disclosure Statement F. Notice of Right of Recission G. Lending Instructions H. Certificate of Proposed Transferee RCA Author: Bruening; ext. 5901 RCAFORCH.DOC -2- 0710119711:19 AM LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 25th day of July , 1997 by and between RICHARD FORCHIONE and DEBRA L. FORCHIONE, Husband and Wife as Joint Tenants ("Participant") and the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as _ 18051 Joyful Lane. 4201 _ Huntington Beach, California, and more particularly described in Exhibit A attached hereto and incorporated herein (the "Property"). B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and currently earns less than 120% of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to the Agency that Participant and Participants immediate family intend to reside in the Property at all times throughout the tern of this Agreement. D. The Agency desires to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach (the "City"). E. The Agency wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: I. Agency Loan. The Agency shall loan to Participant (the "Agency Loan") the amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the Program. The Agency Loan shall be paid to the seller of the Property (the "Seller") by the Agency through deposit of the Agency Loan proceeds into escrow with TIEMPO ESCROW, INC., (the "Escrow Agent") (Escrow No. 10225-C). The Agency shall direct the Escrow Agent to apply the proceeds of the Agency Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan Loan Agreement Page 1 of 8 4/s:G:4-97Agree:Forchion:loanagree RIS 970534 /- 719197��j'/'�' points and fees, and/or document fees. At such time, Participant shall execute and deliver to the Agency a promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple interest at five percent (5%) per annum, due in thirty (30) years and payable upon the earlier sale, refinancing or transfer of the Property, substantially in the form of the "Promissory Note" attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to the Agency a second deed of trust encumbering the Property which shall secure the Promissory Note (the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated herein. 2. Maintenance ofProperty. Participant shall maintain the improvements on the property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws. 3. IDue on Sale- Transferor Ref nnadng. Participant agrees to notify the Agency not less than thirty (30) days prior to (i) the sale or transfer of the Property or (ii) any refinancing of the lien of the Agency Deed of Trust or any lien to which the lien of the Agency Deed of Trust is subordinate (the "First Mortgage"). The Agency Loan and all interest accrued thereon shall be due and payable upon (i) such sale or transfer, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for an amortization period Ionger than the loan secured by the First Mortgage, or (iii) Participant is no longer an occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan. 4. Equity Sharing. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency concurrently with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary of the Agency Deed of Trust: 2. After fifth anniversary but prior to sixth anniversary: 3. After sixth anniversary but prior to seventh anniversary Loan Agreement Page 2 of 8 4/s:C,: 4-97Agmc: finch ion:lonnagm RtS 970534 7/9/97 fifty percent (50%) forty-eight percent (48%) forty-six percent (46%) r 4 4. After seventh anniversary but prior to eighth anniversary: forty-four percent (44%) 5. After eighth anniversary but prior to ninth anniversary: forty two percent (421/o) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) 8. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9. After twelfth anniversary but prior to thirteenth anniversary: thirty-four percent (341/o) 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%) 11. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28°/n) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (I8%) 4/s:G.4-97ASree: Forchion:loanagree RLS 970534 7/9/97 Loan Agreement Page 3 of 8 I V 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (41/o) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (01/o) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to Loan Agreement Page 4 of 8 4/s:G:4-97Agrce:Forchion:loanagrce RLS 970534 7/9P97 the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. A. Equity Share Upon Sale or Transfer. The Equity Share Amount shall be payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer") whose income exceeds 120% of the current annual median income for the Orange County area. If the Buyer does not submit an income verification statement to the Agency, the Buyer shall be deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the Equity Share Amount shall not become payable. B. The Equity Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property or material breach of any other provision of this Agreement which causes the Agency Loan to become due and payable. The Sales Price for purposes of determining the Equity Share Amount shall be determined by an appraisal of the Property. The Agency shall appoint a certified, independent, appraiser to conduct an appraisal of the Property, at Participant's expense, and Participant agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between the Purchase Price and the appraised value of the Property as of the time of such refinancing. This Agreement shall be terminated upon the Participant's repayment of the Agency Loan and payment of the Equity Share Amount as provided in this Agreement. C. Expiralion ofFglity Share Obligation. In the event the Participant does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or is not in material breach of any other provision of this Agreement before the Thirtieth anniversary of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share Amount to Agency upon any later sale, transfer or refinancing. S. Occupancy Standards. The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property. 6. Income Information. Participant has submitted an eligibility verification form to the Agency prior to execution of this Agreement. Participant represents and warrants to the Agency that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the Agency is relying upon Participant's representations that Participant's income does not exceed 120% of the area median income and would not have entered this Agreement if Participant's income exceeded 120% of the area median income. Loan Agreement Page 5 of 8 41s:G:4-97Agrce: Forchion:loanagree RLS 970534 71"7 U 7. Loan Servicing. and service the Agency Loan. The Agency may contract with a private lender to originate 8. Participant, t Financine. Participant shall obtain financing for the purchase of the Property from the Southern California Home Financing Authority or a reputable institutional lender approved by the Agency (the "Lender"). The lien secured by the Agency Deed of Trust shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns. In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's o,.vn resources and not from the proceeds of a Ioan. 9. Covenants. Participant and the Agency shall execute and have recorded in the Official Records of Orange County, California, a "Declaration of Conditions, Covenants and Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated herein, in which Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health & Safety Code Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Agency and the City. 10. Non-3Ygiyer. Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 11, Indemnification. The Participant shall defend, indemnify and hold harmless the Agency and the City of Huntington Beach and their respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the Agency or the City to make such payments, by virtue of the Agency Loan. 12. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. Loan Agreement Page 6of8 4/s:C:4-97Agrcc: Forchion:loanagree RLS 970534 719/97 The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required go protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a ,%&giver of any default, nor shall it change the time of default. 13. Documents. Participant is aware that the Agency has prepared certain documents to implement the Program and secure repayment of the Agency Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Agency Loan: (a) Disclosure Statement; (b) Promissory Note; (c) Agency Deed of Trust; and (d) Declaration of Conditions, Covenants and Restrictions of Property. Participant agrees and acknowledges that the Agency Deed of Trust and the Declaration of Conditions, Covenants and Restrictions of Property shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. 14. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the Agency shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Agency Loan. 15. Governing Law, This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. 16. Amendment of Agreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 17. AgCngy May Assign. Agency may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 18. Egrticipant Assignment Prohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written' consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. Loan Agreement Page 7 of 8 4/s:G:4-97Agree: Forchion:loanagree RIS 970534 719/97 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous agreements between the Agency and the Participant concerning all or any part of the subject matter of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. Date: %— a �5r-- 2 %, 19 Date: 7 _A 5�— , 19 el % "PARTICIPANT" By: ?kal Richard Forchione Date: , 19 By: Date: 19 ATTEST: �'A-gency Clerk. S/F7 IEWED AND APP O D: Executive Director 4/s:G:4-97Agree:Foreh ion:loanagree RLS 970534 719ro7 Printed Name: THE REDEVELOPMENT AGENCY OF TIIE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: _ Chairman APPROVED AS TO FORM: P.—Z q>.-I Agency Counsel INITIATED AND APPROVED: C47 - Direc or of Economic bevelopment Loan Agreement Page 8 of 8 t7 nAIT A U30") A conftminium comprised of PARCEL 1e ORDXX NO.. $ 94 0 217 -A An undivided one twenty second (1/22) fee simple interest as a tenant in cotmon in and to all of the Common Area defined in Deoiaration referred to below and described in the Condominium Plan, (*Plan") !or Lot 1 of TOO Nv, 14122, xhich plan was Tsookded on Auduoa 36, 1994 as tnstr%mont f. 94-0525335 of Official Reaorda of Orange Cpuuty,,over IAt 1 of Treat No.-14s24, in tht City Of RuatingtOn BOXCb,.County ar Crangt,• State of California, as per tnep filed in Book 706, pages 97 to 32 of Miocellanscus Maps, in the bffioe of the County Recorder at said County. txceptittq therefrom all ail, petrole^ asphAltum, gas, minerula and other Wrccarboa subotmees, as reserved in dead recorded August 1f, 1921 in Book 401, gaffe isb at Deeds, and in various other deeds of reoord. FARM z: 'Unit po. 17 consisting of certain atropaae and surfaoa elements, no obown cad described in the Condominium Vlan referred to in Parcel 1 above. PARCEL 3r T :.Han-exclusiva eanoments for access, ingress, agrees, use, anjoyvant, drainage, •nCrO&CbMent, support,'maintenance, repairs and for other purposes, all ae eitribed in that certain Deolaration of Covenants, Conditions and RestrietioAs slid Ressifation of xase�iants for Paoifia Park WIlas, recorded August 23, 1901 as tnstrutaeRt R¢..94-0525316 at Ofttcial Records. 3?ARCEL 41 exclusive easewoont■ appurtenant to Paroele 1 and 2 referred • to above, for bilcony or patio parposes, over the areas defined, depicted and aosiqued on the Plan. - Promissory Note EX-HIBIT B.. r f. V U EXHIBIT B July 25 219 97 Huntington Beach, California FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The Redevelopment Agency of the City of Huntington Beach ("Holder") at 2000 Main Street, P.O. Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct from time to time in writing, Thirty-five Thousand Dollars ($35,000.00) (the "Note Amount") together with interest thereon at the rate set forth herein. All sums hereunder shall be payable in lawful money of the United States of America and all sums shall be credited first to interest then due and the balance to principal. Simple interest shall accrue on the Note Amount at a rate of five percent (5.00%) per annum. If the fair market value of the Property does not increase at least five percent (5.00%) per annum, the accrued interest on the Note Amount shall be forgiven by the Holder. The balance of all unpaid principal and accrued interest shall be due and payable on AUG= 1 , 2027 (thirtieth (30th) anniversary date of this Promissory Note). 9000FIM . �v The whole of the Note Amount plus Accrued interest and all other payments due hereunder shall become due and be immediately payable to the Holder by the Maker upon the occurrence of any one of the following events: (a) Maker sells or otherwise transfers title to the Property; or (b) Maker refinances any lien or encumbrance to which the Agency Deed of Trust is subordinate for a loan amount which is in excess of the then current loan balance of such prior lien or extends the amortization period of the loan secured by such prior lien; or (c) Maker fails to occupy the Property or to perform any obligation under the Agreement (as hereinafter defined). "Exhibit B" to Loan Agreement Paget of 3 41s\4-97gree:Forch ion:Exh ibkB RLS 97-534 719197 This Promissory Note shall be secured by a second deed of trust encumbering the Property (the "Agency Deed of Trust"), executed by Maker as Trustor in favor of Holder as Trustee. Maker may prepay to Holder the full Note Amount, together with simple interest thereon at a rate of five percent (5.00%) per annum, at any time prior to the due date of the Note Amount. This Promissory Note is made and delivered pursuant to and in implementation of Loan Agreement entered by and between the Holder and the Maker dated JMY 25 , 19 97 (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference. The Maker acknowledges that but for the execution of this Promissory Note, the Holder would not enter into the Agreement or make the loan contemplated therein. Unless definitions of terms have been expressly set out at length herein, each term shall have the same definition as set forth in the Agreement. VAN 0 •e = a MET= Holder may, at its option, assign its right to receive payment under this Promissory Note without necessity of obtaining the consent of the Maker. In no event shall Maker assign or transfer any portion of this Agreement without the prior express written consent of the Holder, which consent may be given or withheld in the Holder's sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan proceeds hereunder. WOMERT mw ,1- In the event that any action is instituted to enforce payment under this Promissory Note, the Maker promises to pay such sums as a court may fix for court costs and reasonable attorneys' fees. "Exhibit B" to Loan Agreement Page 2 of 3 41s14-97grce: Forchion:GxhibitB R1S 97-534 7I9ro7 10. N -n--Mjver Failure or delay in giving any notice required hereunder shall not constitute a waiver of any default or late payment, nor shall it change the time for any default or payment. • i 1• This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. "MAKER" By: Richard Forchione By � Debra L. Fo c tone By: "Exhibit B" to Loan Agreement Page 3 of 3 4\s14.97gmc: Forchion-E• xhibitB RLS 97-534 719/97 .• e . S ==BIT A (LYG") A condominium, comprised of 1 PARCEL 1e ORVXR V0..1 9403217-A An Undivided one twenty second (1/23) fee sivVIs interest as a tenant in cob+on SA anQ to all of the Coamon Area defined in neciaratioa referred to below and described In the Condominium plan,for Lot I pf TOO N9, 14113, which Plan was rsockded on Ausuat 2s, 1994 as instrument No. 94-052633S of official Records of orange County,.aver Lot 1 of Tract 11o.-14s26, in the City of Runtington Desch, -County of Orange, -State Cf California, as per crap filed in Book 706, Pages 37 to 30 of Miscellaneous Raps/ in tha W10e of the County Recorder of said County. , Zxcepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substornees, as reserved in deed recorded August IS, 1921 in book 401, Page 135 of Deeds, Mand-xn various other deede of record. pARt'T.L '� 1 �> 4. .Veit -Igo. 17 consisting of certain atravaoe and surface elements, no abown and described in�-tbe Condominium Ulan referred to in parcel I above. PARCEL 91 Nca-exeiwiva easements for access, ingrass, egress, use, enjoyment, drainats, eicioacbment► support, maiatenauce, repairs and for other purposes, all ae atocrLbad in that certain Declaration of Covenants, Conditions and ;testrictions sad lesetvat£on of zasements for ]Pacific Park Vi11as, recorded August 25* IM as Xnetrumnt 1t¢..94-OS35339 of Ofticial Records. PARCEL 4t Exclusive easements appurtenant to Parools 1 and 7 referred -to RboVM, for bileany or patio Purposes, over the areas defined, depicted and assigned on the Plan.•• a I Deed of Trust with Assignment of Rents EXHIBIT C. Declaration of Covenants EXHIBITI'D"".1 R131 8� , LASW E1lS iRLE ice.-"' RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: REDEVELOPMENT Agency of the City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Attn: Agency Clerk Recorded in the County of Orange. California Cary L. Granville, Clerk/Recorder No flee 19970365359 4:05pm 07/31/97 006 24007591 24 49 D11 A36 17 0 14.00 0.00 48.00 0.00 e.00 0.00 0.00 0.00 0.00 [Space Above This Line For Recorder's Use.] This document is exempt from �1a recording fees pursuant to "� Government Code Section 6103. i J Q DEED OF TRUST MEASSICNMENTS OF RENTS THIS DEED OF TRUST is made this 2.5 day of July , 19___, by and among RICHARD FORCHIONE and DEBRA L. FORCHIONE, Husband and Wife as Joint Tenants, (� whose address is 18051 Joyful Lane, #201, Huntington Beach, California (the "Trustor") and Q THE CITY OF FIUNTTNGTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a) all buildings, improvements'and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect1and apply such rents, issues and profits, and all sums of money payable on the'Qurchase price of said property secured by a lien thereon or payable under any agreement. Thhi- 99,�ent Is solely for ge the 15 4LslG:4-97agree:Forc +�n: �x + r M97-534 official businena of the City 7/9197 of [filrtinptcn Pericil, as contem— plated un tar C;,•.4r=-ont Coda Sec. 6103 and should be recorded Tax •£xempt-Government .Agency CITY_0F_+1UNTMIGT0N BEACH Connie Brockway. CMC :_- City Cler or sy: - puty City Clerk - free of char i o. A. FOR THE PURPOSE OF SECURING: I . Payment of the sum of Thirty-five Thousand Dollars ($35,000.00) with interest thereon according to the terms of a Promissory Note of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof. 2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes, or (b) as may be added to the indebtedness secured hereby in accordance with the provision of this Deed of Trust. 3. Performance of each and every obligation, covenant, promise or agreement of Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated July_25 _ _ 1997 insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor -in -interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: l . To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry -rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on Page 2 of 15 4\sIG_4-97agrce:Sorchion:ExhibitC RIS 97-534 7/9197 said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (f) not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or It Page 3 of 15 4\s/G:4-97agree:Forchion:ExhibitC RLS 97-534 7/9/97 destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c)when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a Iike rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, o� the rights or powers of Page 4 of 15 4WGA-97ag=;Forchion:ExhibitC RLS 97-534 7I9/97 Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property id directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 6. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection withany condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. LTizient Page 5of15 4WG:4-97agrcc:Forch ion:L•xhibilC RLS 97-534 719197 V 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c) join in granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re -assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Trust Deed, or cause Beneficiary to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Beneficiary confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents, issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Beneficiary or Trustee the duty to produce rents, issues of profits or maintain all or any part of the property affected by this Trust Deed. if Trustor shall default as aforesaid, Page b of 15 4WGA-97agrce:Forchion:ExhibRC R1S 97-334 719197 Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person nt Page 7 of 15 4\s/G:4-97agree:Forchion:ExhibitC RLS 97-534 7/9/97 claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. If the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. Page 8 of 15 Ms/G:4-97agreeTorchion:ExhibitC RLS 97-534 7/9/97 U 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on January 1, a written operational report. Such operational report shall contain a brief but complete statement of the year's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 20. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. Exhibit Page 9 of 15 4WG:4-97agrce: Forchion: irxhibitC RLS 97-534 719M7 V 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable. 23. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR: By: �A Richard Forchio 2-ao' L Debra L. Foreh o e By: APPROVED AS TO FORM: �T—gency Counsel Page 10 of 15 4WG:4-97agrcc:Forcf ion:Cxh MIC RLS 97-534 7/9197 W This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated July 25 , 19 97 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand Dollars ($35,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Trustor shall pay to Beneficiary concurrent with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary of the Agency Deed of Trust: 2. After fifth anniversary but) prior to sixth anniversary: 3. After sixth anniversary but prior to seventh anniversary 4. After seventh anniversary but prior to eighth anniversary: 5. After eighth anniversary but prior to ninth anniversary: 6. After ninth anniversary but prior to tenth anniversary: 7. After tenth anniversary but prior to eleventh anniversary: 8. After eleventh anniversary but prior to twelfth anniversary: 9. After twelfth anniversary but prior to thirteenth anniversary: 0 nrr— Page 11 of 15 4WG:4-979grcc:f orchion:GxhibitC RLS 97-534 719197 fifty percent (501/6) forty-eight percent (48%) forty-six percent (46%) forty-four percent (44%) forty two percent (42%) forty percent (40%) thirty-eight percent (38%) thirty-six percent (36%) thirty-four percent (34%) M 10. After thirteenth anniversary but prior to fourteenth anniversary: 11. After fourteenth anniversary but prior to fifteenth anniversary: 12. After fifteenth anniversary but prior to sixteenth anniversary: (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: 14. After seventeenth anniversary but prior to eighteenth anniversary: 15. After eighteenth anniversary but prior to nineteenth anniversary: 16. After nineteenth anniversary but prior to twentieth anniversary: 17. After twentieth anniversary but prior to twenty-first anniversary: 18. After twenty-first anniversary but prior to twenty-second anniversary: 19. After twenty-second anniversary but prior to twenty-third anniversary: 20. After twenty-third anniversary but prior to twenty-fourth anniversary: 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: Page 12 of 15 4WG:4-97agree:Forch ion:ExhibitC RLS 97-534 719197 thirty-two percent (32%) thirty percent (30%) twenty-eight percent twenty-six percent (26%) twenty-four percent (24%) twenty-two percent (22%) twenty percent (201/6) eighteen percent (18%) sixteen percent (16%) fourteen percent (14%) twelve percent (12%) ten percent (10%) eight percent (8%) six percent (6%) I V 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant ovmcd the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such- costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustoes interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The percentage factor so determined is the "Applicable Factor." If the Property is sold, an amount equal to the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the amount received by Trustor as the Property sale price (as reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. If the Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is subordinate is refinanced for a loan amount which is in excess of the then current loan balance or extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the appraised value of the F Page 13 of 15 4W05:4-97agree:Forchion:CxhibitC RLS 97-534 719197 Property as of the time of such transfer or refinancing. Dated: I -IS-11 TRUSTOR YA PLq, Richard Forc i© e Debra L. Fofhione APPROVED AS TO FORM: x;ZL{ f 7 ,iGrAgency Attorney � m r t, Page 14 of 15 4LS/G:4-97agrct: Forchion: Cxhibi(C RLS 97-S]4 7/9/97 1109010to 143101 UIXII by the First Lender) This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated July 25 = 19- .0 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand dollars ($35,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter recorded against the property described herein. Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of one of the following events: 1) Title is acquired by the First Lender or another party upon foreclosure of a deed of trust by the First Lender. 2) Title is acquired by the First Lender or another party by a deed in lieu of foreclosure of the First Lender deed of trust. Dated: I �-Cr —1 APPROVED AS TO FORM: Kgency Attorney YJA\ 1 4WGA-97agrec:Foreh ion:Exh%hC RL5 97-534 7/9►97 TRUSTOR: Richard Forchione L Debra L. F " chione n 6 emnevit— Page 15 of 15 UMBIT A MIG") A Condominium Comprised of: PARCE 1 t ORoxR NO.. t 940"17-A An undivided one twenty second (1/22) fen sitVIs interest as a tenant in cobnon In and to all of the Cowaaa )was defused in CeclaratiOn xefexred to below end desraribtd in the Condominium Plan-(Nplaa,) for Lot I pf xrAct NO, 14122, which Plan was reookded on Aulruat 25, 2994 as Instrument No. 24-052533S of Official Racorda Of orange CQ'%Wty,,over Lot % of Tract No.-14i28p in the City of Runtington aearh,.County of orange,- Suite of California, as per map filed In Sook 706, pages 97 to 20 of Miscellaneous naps, in the bftlae of the County Recorder Of said County. Excepting therefrom all oil, patrolcum, asphaltum, gas, minerale and other. hydrocarbon substmces, as reservsd in dead recorded August 16, 1921 in hook 4019 page 296 of Deeds, and in various other deeds of record. PARCEL 2e Licit Igo. 17 consisting of certain airspace #nd surfave elements, as abemm and doscribe4 in',tbe Condominium Vlan referred to in Parcel 1 above. C/1 PARCEL 3 s Noon=exclusiva easements for access, irgrese, egress, use, anjoymat, arainap, sncroachaent, support,'maintenaace, repairs and for other purposive all ae described to that certain Deolaration of Covenants, Conditions wd Restrictions and lteseivation of Easements for pacific Park Villas, recorded August 25, 2994 as instrument NQ. P4-023331F oC_Ofticial Records: PARCM 4 s Exclusive •asemsnts appurtenaat to Parcels I and 2 referred -to aboyi, for balcony or patio,puxposss, over the excas defined, depicted and assigned an the Plan.-* • �-'� ACKNOWLEDGMENT State of California S5. Calunty of On U7/25/97 before me, LINDA J. CAMP"BELL (here Insert name) Notary Public, personally appeared I:tIC HARD FCR=CNE AND D®RA L. PCIRCHICKE personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) Is/are subscribed to the within Instrument and acknowledged to me all that he/she/they executed the same In his/her/their authorized capacity(tes), and that by his/her/their signature(s) on the Instrument the per- son(s), or the entity upon behalf of which the person(s) acted, executed the Instrument. . WITNESS my hand and official seat. r : "' LINDA J. CAMPBELL COMP-l. # 1045344 p hDTAoi"��"'�!eprbuwy OR,`Lt t.+y Con%m. Ex;iras DFC. 20, 1 S53 ATTENTION NOTARY: Although the Information requested below Is OPTIONAL, It could prevent fraudulent attachment of this certificate to another document. THIS CERTIFICATE MUST BE ATTACHED Tllle or Type of Document A. Di) OF TAITH T W TO THE DOCUMENT DESCRIBED AT r21G1iT: Number of Pages - raj,%jV9 Xf RENTS signer(s) Other Than Named Above C-000) Continental Lawyers Title Company Subsidiaryof lawyoersTideInsurance(o poratIon OFFICES NY: LOS ANGELES ORANGE INLAND EMPIRE SAN DIEGO SANTA BARBARA VENTURA COUNTY COUNTY 1845 Business Center Dr COtlPM COUNTY COUNTY 000 E. Colorado BW. 1015 N. Mann St. Suite Z00 4542 Ruffner St. 200 E. C•arrigo St. 751 Dearly or.. Suite 100. Pasaderk% U 91101 Santa Ana, CA 92701 San Bernardino San Diego. CA 92111 Santa Barbara. CA 93 t 01 Camarillo. CA 93010 (818) 304-2700 (7141835-5575 CA 92408 16191 278.4171 18051965-7091 18181 889-6631 180) 676-2582 1805) 484-2701 n•1100 pffv. Al941 a . f I N U Lk AEV 'NL •• iW' by t 4EnS RECORDING REWESTM BY t A'NYERS Tn1E CO. AND REySTRICBM FOR PROPERTY RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: `-- ---- -� FMEVEIPPN NPAgency of the City of Recorded in the County of Orange, California I mUngton Beach Gary L. Granville, Clerk/Recorder 2000 Hain stet: IIII'�ll l I l:`:Il;Illl��ll:l.l:ll,��:ll No Fee Attn; � Ora 9zr�s 199M65360 4:e5pm 07/31/97 005 24007591 24 49 001 10 7.00 27.00 0.00 0.00 0.00 0.00 (Space above for Recorder's use.) �l THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR ( �l PROPERTY (the "Declaration") is made by and between RICHARD FORCHIONE and DEBRA L. FORCHIONE, Husband and Wife as Joint Tenants (the "Covenantor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency" or "Covenantee") as of the date set forth below. RECITALS A. Covenantor and the Agency have entered into a certain Loan Agreement dated July 25 , 1997, (the "Agreement," a copy of which is on file with the Agency at its offices and is a public record) pursuant to which the Covenantor has agreed to subject certain real property (referred to in the Agreement and referred to herein as the "Property") described in the "Legal Description of the Property" (which is attached hereto as Exhibit "A" and incorporated herein by this reference) to certain covenants, conditions and restrictions. B. The Community Redevelopment Law (California Health and Safely Code § 33000 et seq.) provides that a redevelopment agency shall establish covenants running with the land in furtherance of redevelopment plans. NOW, THEREFORE, the parties hereto agree and covenant as follows; I Affordability CDvcnalits. Covenantor agrees for itself, and its successors and assigns, and every successor to Covenantor's interest in the Property, or any part thereof that for lit Page 1 of 9"-0 4/s:G:4-97Agrcc:Forchion:Exl21iIIb doC=ent is solely for the RLS97-534 off1clal bnllnens Of the City 7/9/97 Of VJ'?ti'1-tan FeE:ch, as contem- plated ur.Or• Go -p i•n meat Code Sec. 6103 and should be rocorded Tax-Exer;pt-Government Agency CITY OF HUPITINGTON $EACH �onnfo Brockway, CMC - Jerk ff ) By: Cot eDWY City Clerk _ free of ehr.rrn- thirty (30) years from the date of recording of the Deed of Trust in favor of the Agency regarding the Property (the "Expiration Date"): (a) The Property shall only be owned and occupied by Convenantor or by other persons or families of "Moderate Income." "Moderate Income" shall mean persons or families earning One Hundred Twenty Percent (120%) or less of Orange County median income, adjusted for appropriate family size. (b) The Property shall be kept available at Affordable Housing Cost (as defined below) to the Covenantor or other persons or families of moderate income. Affordable Housing Cost shall mean, as to each person or family of low or moderate income, that purchase price which would result in monthly housing payments which do not exceed an amount under any currently prevailing conventional home mortgage lending rates applied by any reputable institutional home mortgage lender, or the lending rates of any government -subsidized or special mortgage program for which such person or family qualifies and has obtained a first trust deed loan, which do not exceed thirty-five percent (35%) of One Hundred Ten Percent (110%) of the Orange County monthly median income for those persons and families of moderate income (as determined by the United States Department of Housing and Urban Development) earning between Eighty Percent (80%) and One Hundred Ten Percent (110%) of the Orange County monthly median income, and Thirty -Five Percent (35%) of the monthly median income of any person or family of moderate income which earns more than One Hundred Ten Percent (110%) and not more than One Hundred Twenty Percent (120%) of the Orange County median income. (c) The covenant contained in this Section 1 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 2. Txausfer ofRropsrty. No transfer of the Property shall occur until the Agency determines (a) that the proposed purchaser intends to occupy the Property as the proposed purchaser's principal residence, (b) that the proposed purchaser is a person or family of moderate income and (e) that the proposed transfer occurs at an Affordable Housing Cost. The Agency shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted to the Agency such information and completed such forms as the Agency shall request to certify the proposed purchaser's intent with respect to its residency of the Property and its gross income, and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall submit to the Agency an executed disclosure statement which certifies that the purchaser is aware that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate income person or family, that the maximum permitted sales price may be less than fair market value and that the unit must be owner -occupied at all times and cannot be rented or leased. Covenantor shall cooperate with the Agency in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the Agency in connection with the Covenantoes original sale of the Affordable Unit, provided Page 2 of 9 4/s:G:4-97Agrcc:Forehion:ExhibitD RLS 97-534 719197 that the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANLIER AS OTHER SIMILAR REAL PROPERTY NWHICH IS NOT ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST. Covenantor I it is The covenant contained in this Section 2 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 3. Non -Discrimination Coyenants. Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person claiming under or through it, establish or permit any such practice or.practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property. Covenantor and its successors and assigns, shall refrain from restricting the rental or [ease (if permitted by Covenantor) or sale of the property on the basis of race, color, religion, sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or non segregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of " Hrnt Page 3 of 9 4/s:G;4-97Agrcc:Forchion:Exhib iLD RLS 97-534 7/9/97 persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees in the land herein conveyed. The foregoing convenants shall run with the land." (b) In leases: 'The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the follwAring conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees of the premises." Nothing in this Section 3 shall be construed to authorize the rental or lease of the Property if such rental or lease is not otherwise permitted. The convenants in this paragraph 3 shall run with the land in perpetuity. 4. Covenanta 12o Notlmnair,LLen. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 5. Covenants For Benefilgf Cily and Agency. All covenants without regard to technical classification or designation shall be binding for the benefit of the Covenantee and the City of Huntington Beach (the "City") and such covenants shall run in favor of the Covenantee and the City for the entire period during which such covenants shall be in force and effect, without regard to whether the Covenantee or the City is or remains an owner of any land or interest therein to which such covenants relate.' :The Covenantee and the City, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to Page 4 of 9 4/s:G.4-97Agrce:Forchion:Exh ibitD RLS 97-534 7/9/97 maintain any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenants, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized, this aS day of � � �� 1997. COVENANTOR si�. V-U. Richard Forchione Q Debra L. Forchi ne APPROVED AS TO FORM: J9 r Agency Counsel Page 5 of 9 41s:G:4-97Agree:Porchion:L• xhibitD RL5 97-534 7/9197 V U STATE OF CALIFORNIA ) ss COUNTY OF ORANGE On JULY 25, 1997 before me, LINDA J. CAMPBELL (name, title, e.g., "Jane Doe, Notary Public"), personally appeared RICUkRD P'CRMCM AND DIDRA L. ;Ft RCHICNE (name(s) of signer(s)), personally known to be -- OR -- Xc proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hisJherltheir authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. d.Ip�fic I sea[. COMM. # 104a344 C� ca " a WMARY PUBLIC - CAL FORMIA ORANGE COUNTY � My Cwm. Expw&s DEC. 20, 1998 CAPACITY CLAIMED BY SIGNER: XXIX Individual Corporate Oiiicer(s): Title(s) Partner(s): Limited General Attorney -in -Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ies) 5./ ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. Title or Type of Document Number of Pages Date of Document Signer(s) Other Than Named Above: 11 Page b of 9 4/s:G:4-97Agrce:Forchion:ExhibitD W 97-534 719197 STATE OF CALIFORNIA ) ss COUNTY OF ) On , before me, (name, title, e.g., "Jane Doe, Notary Public"), personally appeared (name(s) of signer(s)), personally known to be -- OR -- proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that he/shehhey executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. (Signature of Notary) Individual Corporate Of icer(s): Partner(s): Attorney -in -Fact Trustee(s) GuardianlConservator Other SIGNER IS REPRESENTING: Title(s) Limited General Name of Person(s) or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED IQ THE -DOCUMENT Number of Pages DESCRIBED Date of Document ©ZgiG1iT: Signer(s) Other Than Named Above: Page 7 of 9 4/s:G:4-97Agree: Forchion:ExhibitD RLS 97-534 7/9/97 STATE OF CALIFORNIA ) COUNTY OF ) ss On , before me, (name, title, e.g., "Jane Doe, Notary Public"), personally appeared (name(s) of signer(s)), personally known to be -- OR -- proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/lfer/their authorized capacity(ies), and that by histhcr/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. (Signature of Notary) Individual Corporate Officer(s): Title(s) Partner(s): Limited General Attorney -in -Fact Trustees) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. Title or Type of Document Number of Pages Date of Document Signer(s) Other Than Named Above: Page 8 of 9 4/s:G:4-97Agree:Forcliion:Exhibitp RLS 97-534 7)9/97 Continental Lawyers Title Company Government Code 27361.7 I certifT under penalty of perjury that the portion of the attached document which is Illegible, covered or obliterated meads as follows: s C, h a, n d end L-Cndux C,,Pb,6j �avtn� Place of execution: AAa, Cal Lfornia Dated: 1-3//7 Continental Title Commpany - . . U sxxrezT A 1L9=) A Condominium cot*rised of s PAitCZL Xi CRONK N0.-1 9492217-A An UndiVided one twenty second 4/22) fee aivWlr interest as a tenant in cokmon in anA to all of the Coacca Area defined in asaiaratioa referred to below and deseribtid its the Condominium Flan- (%plan') for Lot I pf 7 09t jig, 14116, Vhich Plan Wan raookded on Au"s ss, 1994 as Instro"nt No. 94-052633S of Official ltecorda of orange County,, over Lot 2 of Tract No. 141280 its the City of kuntington Beach,. County or Orange, -State of California. of per snap filed In book 706, pages 17 to 29 of Miocallaneous Maps, in the btftoe of the County Recorder of said County. Excepting therefrom al] oil, petroleum, asph4 tum, gas, minera7a and other hydrocarboa subotencea, as reserved in deed recorded AuVat if, 1921 in Eook 401, page 256 of Deads, and in various other deeds of renord. PARCEL a, Unit Vo. 17 Consisting of certain airspace end surtaoa elements, ao abown and described in the CondomiriLum plan retsrred to in Parcel I above. gARCtL 3s .. . Ncn■lxalusfve eanamente for aoceas, ingress, egress, use, enjoyment;, drains 0, ancroachment, Support, vAiatsnnuce, repairs and for other purposes, all ae efcrihed In f. r .that certain Declaration of Covenants, Conditions said Rest;riot:iou and ltessi-vati= of xate1s1 to for ?aCf ft0 Pwrk Yillss, reC•ord*4 August 23, 2914 ae =str=gnt 14. `_94-03252=6 of official Records. VARCiL 4f Excl ssive eamements appurtenant to 9aroels I and 2 referred to aboVi, for balcony or patio puxpaseo, over the areas defined, depicted and assiynod on the Plan.- Disclosure Statement EXHIBIT E U EXHIBIT E DISCLOSURE STATEMENT I1We RICHARD FORCHIONE and DEBRA L. FORCHIONE, Husband and Wife as Joint Tenants ("Applicant") understands and agrees that the provision of financial assistance from The Redevelopment Agency of the City of Huntington Beach ("Agency") is conditional on a number of factors, including, but not limited to: • UVVe must qualify for a home loan from an institutional lender acceptable to the Agency. * UWe must pay at least -5 % of the home purchase price from our own funds. * I/We must qualify for assistance under the guidelines of the Agency's Program. * I/We as owners of the unit must occupy it for the entire term of the loan. If I/We rent the unit to others, UA'Ve will be in default of the Loan Agreement. I/We further understand and agree that: IAVe will be responsible for repaying the loan with five percent (51/6) simple interest per year at the time Uwe sell, transfer, refinance, or no longer occupy my/our home, or breach any part of the Loan Agreement. The Annual Percentage Rate for this loan is five percent (5%). The simple interest shall accrue each year, but is not required to be paid except as described in the Loan Agreement. • If within thirty (30) years from the date I/we receive the Agency financial assistance, I/we sell or transfer the home I/we purchased under this Program to persons who are not persons of low or moderate income or refinance the lien of the deed of trust held by my/our lender, Ihvve will be obligated to pay the Agency a percentage share of the difference between the price Uwe paid for the home and its value at the time of such sale, transfer or refinancing. The Agency Loan is due upon sale, transfer or refinancing of the unit. • IIVVe have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to The Redevelopment Agency of the City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, California 92649 "Exhibit E" to Loan Agreement Page I of 2 41s:G:4-97Agrcc:Forchione:ExhibitE RtS 97-545 7/11197 The Agency will not require me/us to make payments of principal or interest during the term of the loan. The full balance of principal and interest will be due and payable when the term of the loan expires. There are no loan closing costs, prepayment penalties or charges, points, fees, finance charges, service charges, investigation fees, credit report fees, insurance premiums, notary or escrow fees, late payment charges or other fees payable pursuant to this loan. An appraisal fee may be payable upon the refinancing of my/our house. • The Agency shall not be held responsible for any costs associated with the home I/we purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The Agency cannot ensure that information provided by or on behalf of Applicant will be kept confidential. The Agency shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/we assume all responsibility for determining whether I/we desire to be considered for the Program, and I/we will inform myself/ourselves as to the availability and terms of other public or private loans. The Agency shall not be charged with knowledge of the contents of the documents of the primary lender. The Agency financial assistance I/we receive under this Program may be considered to be income for purposes of federal or state income taxes and the Agency shall not be held responsible for the payment of any taxes which I/we may incur by virtue of the receipt of such financial assistance. Dated: 1-V� — , 19 �1 4/s:G:4-97Agree:Forchione: ExhibitE RLS 97-545 7/11/97 VA9,- Richard Forchione ;Debra L. For 'one "Exhibit E" to Loan Agreement Page 2 of 2 u u Notice of Right of Rccission EXHIBIT F EXHIBIT F Participant(s) RICHARD FORCHIONE and DEBRA L. FORCHIONE, Husband and Wife as Joint Tenants Loan Amount: Address of Residence: 18051 Joyful Lane. #201. Huntinmon-Beach_ California Notice to Participant Required by Federal Law: You have entered into a transaction on [Date] which may result in a lien, mortgage, or other security interest on your home. You have a legal right under federal law to cancel this transaction, if you desire to do so, without any penalty or obligation within three business days from the above date or any later date on which all material disclosures required under the Truth in Lending Act have been given to you. If you so cancel the transaction, any lien, mortgage, or other security interest on your home arising for this transaction is automatically void. You are also entitled to receive a refund of any down payment or other consideration if you cancel. If you decide to cancel this transaction, you may do so by notifying: The Redevelopment Agency of the City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, California 92648 by mail or telegram sent not later than midnight of (Date) You may also use any other form of written notice identifying the transaction if it is delivered to the above address not later than that time. This notice may be used for that purpose by dating and signing below. (Date) 4/s:G:4-97Agrce: Forchionc: CxhibitF RLs 97-534 719197 I hereby cancel this transaction. (Participant's Signature) "Exhibit F" to Loan Agreement Page 1 of 2 EFFECT OF RESCISSION. When a participant exercises his right to rescind under paragraph (a) of this section, he is not liable for any finance or other charge, and any security interest becomes void upon such a rescission. Within 10 days after receipt of a notice of rescission, the creditor shall return to the participant any money or property given as earnest money, down payment, or others;rise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the customer, the customer may retain possession of it. Upon the performance of the creditor's obligations under this section, the customer shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the customer, at the option of the customer. If the creditor does not take possession of the property within 10 days after tender by the customer, ownership of the property vests in the customer without obligation on his part to pay for it. ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acknowledges receipt of two completed copies of this Notice. %� �k -I a.I -1 Participant's Signature Date Participant's Signature Date L -7 Q5 `77 Participant's i nature Date Participant's Signature Date "Exhibit F" to Loan Agreement Page 2 of 2 41s:G:4-97Agrce:Forchione: FxhhibiiF RLS 97-534 19197 U W Lending Instructions EXHIBIT G V" REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH LENDING INSTRUCTIONS TO: Tiempo Escrow 19093 Beach Blvd. Huntington Beach, CA 92648 RE: Your Escrow No. l 0225-C Preliminary Recitals 1. Richard Forchione and Debra L. Forchione, Husband and Wife as Joint Tenants (hereinafter sometimes referred to as "Buyer") have applied to Redevelopment Agency of the City of Huntington Beach (hereinafter sometimes referred to as "Agency" or "Lender") for a Ioan of $35,000 to finance the purchase of certain real property known as and located at I8051 Joyful Lane, #201, Huntington Beach, California 92648, which property is hereinafter sometimes referred to as the "Subject Real Property." Lender has been advised that Buyer has opened the above -referenced escrow with you for the purpose of completing the purchase of the Subject Real Property. In order to secure performance or fulfillment of the terms and conditions of the loan for which Buyer has applied, and to facilitate the making of the loan if appropriate, Lender, reserving the right to amend or revoke these instructions, unilaterally and without prior notice, at any time, hereby authorizes and instructs you as follows: Deposit Clause 2. Lender had enclosed herewith the following: (a) A loan agreement providing the terms and conditions by which the Borrower may participate in the Lender's program to assist low or moderate income households to purchase housing which includes an equity sharing provision; (b) A promissory note providing for the repayment of the principal amount of $35,000 plus accrued interest on the unpaid balance thereof at the rate of 5 percent (51/o) per annum, due upon the thirtieth anniversary of the Loan, or earlier according to the terms and conditions of the note; (e) A second deed of trust, with a rider, conveying the Subject Real Property to City of Huntington Beach in trust for the purpose of securing performance of the obligations evidenced by the above -described promissory note and certain other obligations, to be executed by Buyer for the benefit of Lender; (d) A "Declaration of Conditions, Covenants and Restrictions for Property," in which Buyer agrees that the Subject Real Property shall only be owned by Buyer or other 4`,hh:G:4-97Agmc:Forehion:Lendinst RLS 97-534 7I9197 V persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health & Safety Code Sections 5093 and 50052.5, and that Buyer shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Lender and the City of Huntington Beach; (e) The disclosure statement setting forth the conditions upon which the Lender will make the Loan; (f) The notice of the Buyer's right to rescind required by the Truth -in - Lending Act; (g) An expiration of rescission period form verifying the delivery of the notice of right to rescind; and (h) The Certificate of Proposed Disclosure, which must be signed by the Buyer, delivered to the current owner for his signature, and when fully executed, copies are to be delivered to Lender, Buyer, and owner. Execution of Loan Instruments and Documents 3. When you have received these instructions, please have Buyer execute immediately all loan instruments and documents that have been deposited with you for execution by Buyer. All of the loan instruments and documents that have been deposited with you for execution by Buyer are to be executed by Buyer on the same date. Buyer must execute all loan instruments and documents that they are required to execute by signing histherltheir name(s) exactly as it appears or will appear on the grant deed that will vest title in Buyer and on the enclosed deed of trust. Insurance Requirements 4. We require, as a condition of malting the loan, that you hold for delivery to us an original policy of insurance, duly issued and in effect, providing fire and extended special coverage insurance on the Subject Real Property in an amount not less than $ 6,000.00 and complying with the following requirements: (a) The policy shall be issued by an insurer that is admitted to transact insurance business in California; (b) The policy shall either be a continuous policy or a policy with an unexpired term of at least one year, and the premium for the initial one year, following the making of the loan must have been paid; 2 41bh:G:4-97Agrce:Forchion:Lendinst RLS 97-534 7/9197 V (c) The policy shall name Buyer as an insured and shall contain a lender's loss payable endorsement naming Lender as the second loss payee; (d) The policy shall not have a deductible that exceeds $500. Requirement of Cash Downpayment 5. IVe require, as a condition of making the loan, that 3% of the purchase price of the Subject Real Property be paid by Buyer, in cash or its equivalent, from Buyer's own funds. Compliance With Truth -In -Lending Requirements 6. We require, as a condition of making the loan, that prior to the disbursement of any loan proceeds you effect compliance with the disclosure and notice requirements imposed by the Federal Truth -in -Lending Act and allow the three-day recission period required by the Truth - in -Lending Act to expire. You shall not request or disburse any loan proceeds unless and until you have complied with each of the following conditions: (a) You shall deliver one copy of the enclosed Disclosure Statement to Buyer at the time Buyer executes the enclosed promissory note, deed of trust and the other enclosed loan documents; (b) At the time a copy of the Disclosure Statement is delivered to Buyer, you shall have Buyer sign another copy of the Right to Rescind Statement, in the space provided for that purpose, to acknowledge receipt of the statement; (c) As soon as Buyer has executed the enclosed loan instruments and documents and you have delivered the copies of the Disclosure Statement and Notice of Right to Rescind and had Buyer acknowledge receipt of the statement, you shall deliver to us the copy of the Disclosure Statement and Notice of Right to Rescind and had Buyer acknowledge receipt of the statement, you shall deliver to us the copy of the Disclosure Statement that Buyer has signed and the copy of the Notice of Right to Rescind that you have retained; and (d) You shall not request or disburse the loan proceeds, or any part of them, until the fourth business day after the date on which the Disclosure Statement is delivered to Buyer or the fourth business day after the date on which the Notice of Right to Rescind is delivered to Buyer, whichever is later. Conditions Precedent to Request for Loan Funds 7. You may request us to deposit the proceeds of the loan with you when, and only when: 3 4%h:G:4-97Agrce:Forchion:t.endinst aL.S 97-534 7l9197 LJ V (a) Buyer has properly executed the enclosed loan agreement promissory note without modification or deletion and you have delivered the original of the executed loan agreement to us; (b) Buyer has properly executed the enclosed promissory note without modification or deletion and you have delivered the original of the executed loan agreement promissory note to us; (c) Buyer has properly executed the enclosed deed of trust without modification or deletion and it is in recordable form; (d) Buyer has properly executed the enclosed Declaration of Condition, Covenants, and Restrictions without modification or deletion and it is in recordable form; (e) You have delivered a true and complete copy of the executed deed of trust and Declaration of Conditions, Covenants and Restrictions to us and are authorized and prepared to record the original deed of trust when you receive and are authorized and prepared to disburse the loan proceeds; (f) You have delivered to us true and complete copies of all of the escrow instructions that you have received from Buyer and the other parties to the above escrow, including any amendments or supplemental instructions, and any assignments or demands that have been deposited with or delivered to you in connection with the escrow; (g) You have delivered to us a copy of the preliminary title report obtained for this transaction; (h) Continental Lawyers Title Company is prepared and obligated to issue in our favor, on the recordation of the enclosed deed of trust, a standard form American Land Title Association fender's policy in the amount of $35,000, insuring that title to the Subject Real Property is vested in Buyer and that the enclosed deed of trust is an encumbrance against the Subject Real Property that is subject and subordinate only to First Deed of Trust; (i) You have delivered to us a written confirmation verifying the commitment of Continental Lawyers Title Company to issue the policy of title insurance required by these instructions on the recordation of the enclosed deed of trust; 0) You have received in escrow, and are authorized and prepared to deliver to us on recordation of the enclosed deed of trust, an original policy of fire and extended special coverage insurance complying with the requirements set forth in 1 4; (k) Buyer has deposited in escrow, to be applied toward payment of the purchase price for the Subject Real Property, the sum of $15,000.00 and has otherwise complied with the downpayment requirements set forth in � 5; 4 4' bh:G:4-97Agme:Forchion:Ltndinst RLS 97-534 719/97 U V (1) You have delivered to us a true and complete copy of a written certification from a licensed structural pest control operator pursuant to Business and Professions Code Section 9519 that the residence and other improvements located on the Subject Real Property are free from evidence of active infestation or infection in the visible and accessible areas; (m) You have delivered to Buyer, in accordance with the requirements set forth in 16, one copy of the enclosed Disclosure Statement and two copies of the enclosed Notice of Right to Rescind; (n) More than three full business days have elapsed since the date on which the Disclosure Statement was delivered to Buyer, and more than three full business days have elapsed since the date on which the Notice of Right to Rescind were delivered to Buyer; (o) You are otherwise authorized and prepared, under the instructions you have received from all parties, to close the above -referenced escrow within 24 hours after the loan proceeds are deposited with you. (p) There shall be no blanks on any documents at close of escrow. Recording of Deed of Trust $. When all of the conditions precedent to requesting the deposit of the loan proceeds, as set forth in 17, have been performed or fulfilled and the loan proceeds have been deposited with you pursuant to your request, you are authorized and instructed to record forthwith the grant deed conveying the Subject Real Property to Buyer, our enclosed deed of trust, our enclosed Declaration of Conditions, Covenants, and Restrictions and to close the above -referenced escrow. You are instructed to record our enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions immediately after you record the grant deed conveying the Subject Real Property to Buyer. Issuance of Title Insurance Policy 9. As soon as you have recorded our enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions, you are instructed to cause to issue and to deliver to us a standard form American Land Title Association lender's title insurance policy in the amount of $35,000, insuring that title to the Subject Real Property is vested in Buyer and that the enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions are encumbrances against the Subject Real Property that is subject to and subordinate only to the First Trust Deed. Conditions Precedcrtt to Disbursemcnt of Loan Procecds 10. You are authorized to disburse the loan proceeds that we deposit NN ith you when, and only when: 5 41bh:G:4-97Agree:Forchion:L cndinst RLS 97-534 7/9/97 39 (a) All of the conditions precedent to requesting the deposit of the loan proceeds, as set forth in 17, have been performed or fulfilled. (b) You have recorded the grant deed conveying the Subject Real Property to Buyer, the enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions; and (c) You have caused to issue and deliver a standard form American Land Title Association lender's title insurance policy that complies with the title insurance requirements set from in 17(h). Requests and Notices 11. The request for the loan proceeds and all other requests and notices directed to Lender shall be in writing and shall be personally delivered or sent by certified or registered mail, postage prepared, return receipt requested to Redevelopment Agency of the City of Huntington Beach, Attn: Agency Clerk, 2000 Main Street, Huntington Beach, CA 92648. Requests shall be deemed to have been made and notices shall be deemed to have been given only when they have been received by the City Clerk. Delivery of Instruments and Documents 12. All instruments and documents that are to be delivered to Lender shall be personally delivered or sent by certified or registered mail, postage prepaid, return receipt requested to Agency Clerk, Redevelopment Agency of the City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648. Instruments and documents shall be deemed to have been delivered only when they have been received by the Agency Clerk. Non responsibility for Escrow Fees And Charges 13. Lender shall have no responsibility or liability for any of your escrow fees or charges or for any fees, charges, costs, or expenses incurred by you or any other party to the above -referenced escrow in complying with these instructions, obtaining the Ioan for which Buyer has applied, or otherwise processing or closing the above -referenced escrow. Sole Instructions 14. These instructions constitute the complete escrow instructions, and the only escrow instructions, of Lender and shall revoke and supersede any prior oral or vwitten instructions you may have received from Lender. N. 4 "bh: G:4-97Agrcc:forchion:Lcndinst RL5 97-534 M197 Waiver and Deviations from Instructions 15. Lender may waive, or may permit deviations from, any term or condition of these instructions. However, a term or condition of these instructions can only be waived by means of a written waiver signed by an authorized officer, agent, or employee of Lender. Deviation from these instructions will only be permitted if it is specifically authorized in writing by an authorized officer, agent, or employee of Lender. Any purported oral waiver, and any purported oral authorization to deviate from the terms of these instructions, shall be ineffective and invalid. Amendments and Supplemental Instructions 16. Lender shall have the right to amend or supplement these instructions at any time without prior notice and without the agreement or consent of any other party or parties. However, these instructions may only be amended, supplemented, or modified by means of a written amendment or supplement that has either been signed or approved in writing by an authorized officer, agent, or employee of Lender. No written amendment, supplement, or modification of these instructions shall be effective or valid unless and until it has been deposited with you and unless and until an authorized officer, agent, or employee of Lender has either signed it or approved it in a signed writing that has been deposited with you. Any purported oral amendment, supplement, or modification of these instructions shall be ineffective and invalid. Revocation and Cancellation of Instructions 17. (a) Lender shall have the right to revoke and cancel these instructions at any time without prior notice and without the agreement or consent of any other party or parties. If Lender exercises its right to revoke and cancel these instructions, you shall return to Lender forthwith, upon demand, any and all funds, instruments, documents, and other items that Lender has deposited with you. (b) If the above -referenced escrow is canceled by any other party or parties, you shall return to Lender forthwith any and all funds, instruments, documents, and other items that Lender has deposited with you. Time Is of the Essence 18. Time is of the essence with respect to each and every provision of these instructions and in the performance, occurrence, fulfillment, or satisfaction of each and every term and condition of this escrow and these instructions. 7 4%h:GA-97Agncc: Forch ion: Lendinst RLS 97-534 7/9)97 Request for Acknowledgment of Acceptance 19. Please acknowledge your receipt and acceptance of these instructions, and your agreement to hold and dispose of any funds, instruments, documents, or items that Lender deposits with you in accordance with the terms and conditions of these instructions, by signing the acknowledgment and acceptance set forth below on the enclosed copies and returning one signed copy to Lender. Dated: LENDER 6. pcz� & Da -id Biggs Economic Development Director Redevelopment Agency of the City of Huntington Beach Acknowledgment and Acceptance by Escrow Molder Tiempo Escrow acknowledges receipt of the foregoing instructions and the items listed in Paragraph 2 of those instructions. Tiempo Escrow agrees that any funds, instruments, documents, or other items deposited by the Redevelopment Agency of the City of Huntington Beach shall be held and disposed of in accordance with the terms and conditions of the foregoing instructions and such amendments or additional instructions as may be submitted by the Redevelopment Agency of the City of Huntington Beach. ESCROW HOLDER Tiempo Escrow By s'"gnature] L J. 6mppax I typed name] ESCROW CMCER [title] 8 4lbb:G:4-97Agree:f orchion:Ltndinst RLS 97-534 7/9197 V ul Certificate of Proposed Transferee EXHIBIT H An U EXHIBIT IiI THIS FORM MUST BE DELIVERED TO THE DEVELOPER BEFORE PROCEEDING WITH ANY TRANSFER OF THE PROPERTY. July 25 ,1997 1. The Proposed Transferee is Names: Richard Forchione Debra L. Forchione Current Address: 18051 Joyful Lane #201 Huntington Beach, CA 92648 Telephone Number: 714-847-1968 2. The address of the property which the proposed transferee desires to purchase is 18061 Joyful Lane, #201, Huntington Beach, California (the "Property"), which was built in the Talbert Beach Redevelopment Project Area. 3. The Proposed transferee represents, warrants and covenants the following: (a) The Property will be the principal residence of the proposed transferee. (b) The combined maximum annual income in the current year for all household members of the proposed transferee is S 55,392.00 (This figure M= reflect income from aU sources.) (c) The proposed transferee will deliver to the Redevelopment Agency of the City of Huntington Beach a signed financial statement on a form acceptable to the Agency. 4. The proposed transferee's household consists of the following persons who will reside in the Property: Adults (18 or over) - [name of each]: "Exhibit 11" to Loan Agreement Page 1 of 6 4ls:G:4-97Agree:Forthionc:Exhibi111 R1S 97-534 719197 Minors (under 18) - [name of each]: 5. The proposed transferee must submit to the Developer, on a form available from the Developer, an income certification so the Developer may determine if the proposed transferee is an Eligible Person or Family. f. A true and correct copy of the proposed transferee's most recent tax return to the U.S. Internal Revenue Service is attached hereto. 7. The terms of the proposed transfer are: (a) Sales price of $ 175►000-00 . This sales price is based on the less of XX (i) Fair market value; or (ii) The maximum price at which the Purchase Housing Cost of the Proposed Transferee would not exceed Affordable Housing Cost. The calculation of the Sales Price under this subsection (ii) is illustrated in Attachment No. 10 to the Disposition and Development Agreement. IN ORDER TO ANSWER QUESTION 2(a) YOU MUST CALCULATE THE PROPOSED SALES PRICE BASED ON AFFORDABLE HOUSING COST, TAKING INTO CONSIDERATION ALL ITEMS LISTED IN THE DEFINITION OF PURCHASE HOUSING COST. (b) Price of any personal property being sold by the owner to the proposed transferee: (if none, so state) (c) The price of $ Node any services of Owner. (If none, so state.) to be paid by the proposed transferee for (d) All other amounts of money or other consideration, if any, concerning the Property or any other matter to be paid by the proposed transferee to the Owner: $ gone . (If none, so state.) "Exhibit H" to Loan Agreement Page 2 of b 4/s:0:4-97Agrce:Forchionc:L• xhibill I RLS 97-534 7/9197 (e) Sources of payment of sales price: Sales price $ 175,000.00 Cash down payment $ 8,750.00 Istloan $ 131,250.00 2ndloan $ 35,000.00 Other (describe) $ 175,000.00 Total (f) The financing obtained by the proposed transferee to purchase the Property is as follows: I at Lon Loan amount: $ 131,250.00 Monthly payments: $ 1,150.84 Interest rate _ _ 9.99 % if variable interest, describe adjustment mechanism: Due date: Balloon payment amount: Points and fees: Lender: Lender's address: 4/s:0:4 97Agrce:Forchionc-. xhibitII RLS 97-534 719/97 ALKWr 1, 2012 $108,307.73 3,177.50 MARINA MQRI GAGE C OPANY 15635 ALTCN PARRY, SUITE 450 ,IRVINE, CkLIPa*M 92618 "Exhibit 11" to Loan Agreement Page 3 of 6 V 2nd Loan: Loan amount: $ 35,000.00 Monthly payments: $ -'- Interest rate 5.OD% ACOFtuED if variable interest, describe adjustment mechanism: Due date: AST 1, 2027 Balloon payment amount: _ PRINCIPAL _AND INTERETr Points and fees: -4" Lender: CM'`W'-EKWTINGTBEACH 2000 MAIN STREET Lender's address: HEMINCTCN BEACH, CALIPC RNIA 92648 Other Loans: (describe, if none, so state) NCNE (g) The monthly Purchase Housing Cost to be paid by the proposed transferee: 1st loan monthly payment: $ 1,150.84 2nd loan monthly payment: $ -'- Other loans monthly payment: $ -0- Taxes and assessments (1/12 of yearly taxes and assessments): $ 182.2-5 Insurance (1/12 of yearly $ PAM THMJ AS90CIATICN DUES premium) Homeowner's dues: $ 175.69 Total: $ 1,508.78 "Exhibit H" to Loan Agreement Page 4 of 6 4ls:G:4A7Agrcc:Forcbione:Exhibiti f RLS 97-534 719197 U S. A true and correct copy of the purchase and sale or other agreement between the owner and the proposed transferee is attached hereto. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. PROPOSED TRANSFEREE: -1-tic- q I D to Richard Forchione Debra L. Forehi 18051 Joyful Lane #201 Street Address Telephone City State • Code "Exhibit 11" to Loan Agreement Page 5 of 5 4/s:G:4-97Agree: Forchione:Exhibit41 RLS 97-534 719/97 M QV) Based on the Proposed Transferee's Certificate, above, and all documents attached hereto, Developer hereby certifies that: (1) Proposed Transferee is an Eligible Person or Family; and (2) The monthly Purchase Housing Cost to be paid by the Proposed Transferee shall not exceed the monthly Affordable Mousing Cost. [Capitalized terms used above are defined in the Disposition and Development Agreement to which this certificate is attached.] DEVELOPER: Date: 7/28/97 "Exhibit H" to Loan Agreement Page 6 of 6 41s:0:4-97Agmc:Forchionea achihi[F1 RLS 97-534 7/9/97 X x WHEN RECORDED MAIL TO: MARINA MORTGAGE COMPANY, INC. 15635 ALTON PARKWAY, SUITE 450 IRVINE, CALIFORNIA 92618 Loan No. 60000232 SPACE ABOVE THIS LINE FOR RECORDER'S USE DEED OF TRUST TIIIS DEED OF TRUST (*Security Instrument") is made on JULY 23 . 1997 . The trustor is RICHARD FORCHIONE AND DEBRA L. FORCHIONE, HUSBAND AND WIFE AS JOINT TENANTS ('Burrower") The trustee is T.D. SERVICE ("Trustee*). The beneficiary is MARINA MORTGAGE COMPANY, INC., A CALIFORNIA CORPORATION which is organized and existing under the laws of CALIFORNIA , and whose address is 15635 ALTON PARKWAY, SUITE 450, IRVINE, CALIFORNIA 92618 ("Lender'). Borrower owes Lender the principal sum of ONE HUNDRED THIRTY ONE THOUSAND TWO HUNDRED FIFTY AND 00/100********** Dollars (U.S. S 131, 250 . 00 ). This debt is evidenced by Borrower's note dated the same date as this Security Instrument ('Note"). which provides for monthly payments, with the full debt, if not paid earlier. due and payable on AUGUST 1 2012 .This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note. with interest, and all renewals, extensions and modifications of die Note; (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust. with power of sale, the following described property located in ORANGE County, California: LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF AS EXHIBIT "A". A.P.N.: 933-87-270 ME TU6 CP 'IIILS ITV 02= RUVIME 'V= WILL IEU= A Bgi(XN RW'E T M NFUiRI'IY. CONDOMINIUM RIDER ATTACHED HERETO AND MADE A PART HEREOF. which has the address of 18 0 51 JOYFUL LANE ## 2 01 HUNTINGTON BEACH , California 92648 ("Properly Address"); CALIMRNIA--Single Family-17NMAIIIILMC UNIFORM INSTRUMENT Form 3W5 9190 taocwwr srwm. Inc. Page I of 6 CA. DUr i ORIGINAL TOGETHER WITH all the imprc,. _..cents now or hereafter erected on the property, ..dd all easements, rights, appurtenances, rents, royalties, mineral, oil and gas rights and profits, water rights and stock and all fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property". BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to die Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non -uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments or ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums, if any; (e) yearly mortgage insurance premiums, if any; and (t) any sums payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items". Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. § 2601 et seq. ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lender may not charge Borrower for holdigg and applying the Funds, annually analyzing the escrow account or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Leader shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument. If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower shall pay to Leader the amount necessary to make up the deficiency. Borrower shall snake up the deficiency in no more than twelve monthly payments, at Lender's sole discretion. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. If, under paragraph 21, Leader shall acquire or sell die Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs 1 and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amount-. payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security CALUIORNIA—Single Family--FNMJAAFHLMC UNIFORM INSTRUMENT oomm id sysumr, Inc. Page 2 of 6 Form 3005 9190 ca+.WT ORIGINAL Instrument, Lender may give Borrower Al Mle identifying the lien. Borrower shall satisfy(tr2clica or take one or more of the actions set forth above within 10 days of the giving of notice. S. hazard Insurance or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected oil the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which Lender requires insurance. Tltis insurance shall be maintained in the amounts and for the periods that Lender requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. if the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Burrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use [lie proceeds to repair or restore the Property or to pay sums secured by this Security Instrument. whether or not then due. The 30-clay period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal sliall not extend or postpone tite due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Occupancy, Preservation, Maintenance and Protection or the Property; Borrower's Loan Application; Leaseholds. Borrower sliall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borjower's control. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate. or commit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good fault judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good Will determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Dorrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to tite merger in writing. Burrower shall not surrender the Ieasehold estate and interests herein conveyed or terminate or cancel the ground lease. Borrower shall not, without the express written consent of Lender. alter or amend die ground lease. 7. Protection of Lender's Rights In' the Property. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do set. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable. with interest, upon notice from Lender to Borrower requesting payment. S. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses' or ceases to be in effect. Borrower shall pay the prentiurtts required it) obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower cif the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a surn equal to one -twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Leader will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at (lie option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved CALIFORNIA—Single Family—FNM IMILMC UNIFORM INSrRUMIM Form 3ot)5 9M Dwwnm Sy m., Inc. Page 3 of 6 CA-WT ORIGINAL by Lender again becomes available and ined. Borrower shall pay the premiums reered to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law. 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is less than the amount of the sums secured immediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments. 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of many demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 12. Successors and Assigns Bound; Joint and Several Liability; Co-signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or snake any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13. Loan Charges. If die loan secured by this Security Instrument is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note. 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument. 17. Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security CALIFORNIA—Single Family--FWAIMELAW UNIFORM INSMUMt3NT oocumeM system, rsc. Page 4 of 6 a•Dff ORIGINAL Form 3WS 9190 Instrument. If Borrower fails to pay these teams prior to the expiration of this period, Lenaer may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 18. Borrower'sRight to Reinstate. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) 5 days (or such other period as applicable law may Specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are. that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees; and (d) takes such action as Lender may reasonably require to assure that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 17. 19. Sale of Note; Change of Loan Servicer. The Note or a partial interest in the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale inay result in a change in the entity (known as die "Wan Servicer") that collects monthly payments due under the Note and this Security Instrument. There also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change in accordance with paragraph 14 above and applicable law. The notice will state the name and address of the new Loan Servicer and the address to which payments should be made. The notice will also contain any other information required by applicable law. 20. Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. Borrower shall promptly give Lender written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Enviropm vital Law. As used in this paragraph 20, "Hazardous Substances" are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 20, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection. NON -UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 21. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under paragraph 17 unless applicable law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of die Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert die non- existence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender at its option may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph 21, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall execute or cause Trustee to execute a written notice of die occurrence of an event of default and of Lender's election to cause the Property to be sold. Trustee shall cause this notice to be recorded in each county in which any part of the Property is located. Lender or Trustee shall mail copies of die notice as prescribed by applicable law to Borrower and to the other persons prescribed by applicable law. Trustee shall give public notice of sale to the persons in die manner prescribed by applicable law. After the time required by applicable law, Trustee, without demand on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in any order Trustee determines. Trustee may postpone sale of all or any parcel of the Property by public announcement at the time and place of any previously scheduled sale. Lender or its designee may purchase the Property at any sale. Trustee shall deliver to the purchaser Trustee's deed conveying die Property without any covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the following order: (a) to all expenses of the sale, including, but not limited to, reasonable Trustee's and attorneys' fees; (b) to all sums secured by this Security Instrument; acid (c) airy excess to the person or persons legally entitled to it. CALWIDRNM—Single Family—EINKAMLAW UNMRM INsmuLttiNT oam"sn system., Inc. Page 5 of 6 Form 3005 9190 CA.Wr ORIGINAL 22. Reconvevance. Unon navmcife*df all sums secured by this Securitv IiistrumcntQnder sliall reauest Trustee to reconvev the Property and shall surrender this Security Instrument and all notes evidencing debt secured by this Security Instrument to Trustee. Trustee shall reconvey the Property without warranty to the person or persons legally entitled to it. Such person or persons shall pay any recordation costs. Lender may charge such person or persons a fee for reconveying tic Property, but only if the fee is paid to a third parry (such as the Trustee) for services rendered and the charging of the fee is permitted under applicable law. 23. Substitute Trustee. Lender, at its option, may from time to time appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by Lender and recorded in the office of the Recorder of the county in which the Property is located. The instrument shall contain the name of the original Lender. Trustee and Borrower. the book and page where this Security Instrument is recorded and the name and address of the successor trustee. Without conveyance of the Property, the successor trustee shall succeed to all the title, powers and duties conferred upon the Trustee herein and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution. 24. Request for Notices. Borrower requests that copies of the notices of default and sale be seat to Borrower's address which is the Property Address. 25. Statement of Obligation Fee. Lender may collect a fee not to exceed the maximum amount permitted by law for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California. 26. Riders to this Security Instrument. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and agreements of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument. [Check applicable box(es)] [ ] Adjustable Rate Rider [XI Condominium Rider [ ] 1-4 Family Rider [ ] Graduated Payment Rider [ Planned Unit Development Rider [ ] Biweekly Payment Rider [ ] Balloon Rider [ ] Rate Improvement Rider [ ] Second Home Rider [X] Other(s) [specify] Prepayment Rider BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. Witnesses: ?42�1 - Seal RICHARD FORCHIONi; Borrower Seal Borrower Seal Borrower Q—Q& .4 Seal DEBRA L ORCHIONE Borrower (Space Below This tine Reserved For Ackiwwl;cdS ncn0 State of California, ORANGE County ss: On JULY 24, 1997 before me LINDAL J. CAMPBELL (Name, Title of Officcr) personally appeared RICHARD FORCHIONE, DEBRA L. FORCHIONE Seal Borrower — Seal Borrower personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose nante(s) is/are subscribed to the within instrument and acknowledged to me that he/slie/they executed the same in his/her/their authorized capacity(ies). and that by his/her/tidcir signature(s) on the instrument the person(s), or die entity upon behalf of which the persons) acted, executed the instrument. Witness my hand and official seal. Si;tatu V% LZZ LINDA J. BELL ('f Iris area for official notarial seai)� L[NQA J. CAMPBELL m ® COMM # 1045344 � ' y NOTARY PUBLIC • CALIFORNIA ORANGE courrry Form 3005 9190 Documea Srwms, tse. Page 6 of 6 cA.nar ORIGINAL ILK LIE CONDOMINIUM RIDER Loan Number 60000232 THIS CONDOMINIUM RIDER is made this 23rd day of JULY , 3.997 , and is incorporated into and shall be deemed to amend and supplement the Htorigage. Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Borrower's Note to MARINA MORTGAGE COMPANY, INC. , A CALIFORNIA CORPORATION (the "Lender")of the same date and covering tie Property described in the Security Instrument and located at: 18051 JOYFUL LANE #201, HUNTINGTON BEACH, CALIFORNIA 92648 [Property Address] The Property includes a unit in, together with an undivided interest in tie common elements of, a condominium project known as: PACIFIC PARK VILLAS [Name of Condominium Project] (the `Condominium Project"). If the owners association or other entity which acts for the Condominium Project (the "Owners Association") holds title to property for the benert or use of its members or shareholders, the Property also includes Borrower's interest in the Owners Association and the uses, proceeds and benefits of Borrower's interest. CONDOMINIUMI COVENANTS. In addition to the covenants and agreements made in (he Security Instrument, Borrower and Lender further covenant and agree as follows: A. Condominium Obligations. Borrower shall perform all of Borrower's obligations under the Condominium Project's Constituent Documents. The "Constituent Documents" are the: (i) Declaration or any other document which creates die Condominium Project; (ii) by-laws; (iii) code of regulations; and (iv) other equivalent documents. Borrower shall promptly pay. when due, all dues and assessments imposed pursuant to tie Constituent Documents. B. Hazard Insurance. So long as tie Owners Association maintains, with a generally accepted insurance carrier. a "master "or "blanket" policy on the Condominium Project which is satisfactory to Lender and which provides insurance coverage in tie aniounts, for tie periods, and against the hazards Lender requires, including fire and hazards included within tie term "extended coverage." then: (i) Lender waives tie provision in Uniform Covenant 2 for tie monthly payment to Lender of one - twelfth of die yearly premium installments for hazard insurance on the Property; and (ii) Borrower's obligation under Uniform Covenant S to maintain hazard insurance coverage oil die Property is deemed satisfied to the extent that (lie required coverage is provided by the Owners Association policy. Borrower shall give Lender prompt notice of any lapse in required hazard insurance coverage. In the event of a distribution of Hazard insurance proceeds in lieu of restoration or repair following a loss to die Property, whether to die unit or to common elements, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender for application to the sums secured by tie Security Instrument. with any excess paid to Borrower. MULTMATE CONDOMINIUM RIDER - Single Family - I'NMAMILMC UNIFORM INSMUMENT Norm Stan 91% DoewrK srwnm. Inc." 649.13U Page I of 2 USCADR ORIGINAL C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. D. Condemnation. The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property, whether of the unit or of the common elements, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Uniform Covenant 10. E. Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the Condominium Project, except for abandonment or termination required by law in the case of substantial destruction by lire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the Constituent Documents if die provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self -management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay condominium dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured bylbe Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this Condominium Rider. -- �A vhe— (Seal) RICHARD FORCHIONE Borrower (Seal) Borrower (Seal) Borrower (Seal) DEBRA L . ORCHIONE Borrower (Seal) Borrower (Seal) Borrower MULTISTATE CONDOMIIVIUM RIDER - Single Family - FNMA/FHLMC UNIFORM INSTRUMENT Form 3140 9/90 Dxun*K sysmn, Im W% 6W13Q Page 2 of 2 USC.RDR ORIGINAL PREPAYMENT RIDER Loan No.: 60000232 Date: JULY 23, 1997 Borrower(s): RICHARD FORCHIONE, DEBRA L. FORCHIONE FOR VALUE RECEIVED, the undersigned ("Borrower") agree(s) that the following provisions shall be incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed of even date herewith (the "Security Instrument") executed by Borrower, as trustor, in favor of MARINA MORTGAGE COMPANY, INC., A CALIFORNIA CORPORATION ("Lender"), as beneficiary, and also into that certain promissory note (the "Note") of even date herewith executed by Borrower in favor of Lender. To the extent that the provisions of this Prepayment Rider (the "Rider") are inconsistent with the provisions of the Security Instrument and/or the Note, the provisions of the Rider shall prevail over and shall supersede any such inconsistent provisions of the Security Instrument and/or the Note. Section 4 of the Note is amended to read in its entirety as follows: It 4 . BORROWER'S RIGHT TO PREPAY I have the right to make payments of principal at any time before they are due. A payment of principal only is known as a "prepayment." When I make a prepayment, I will tell the Note Holder in writing that I am doing so. The Note Holder will use all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a partial prepayment, there will be no changes in the due dates of my monthly payments unless the Note Holder agrees in writing to those changes. My partial prepayment may reduce the amount of my monthly payments after the first Change Date following my partial prepayment. If within S IXTY ( 6 0 ) months from the date of execution of the Security Instrument I make a full prepayment or, in certain cases a partial prepayment, and the total of such prepayment(s) in any 12-month period exceeds TWENTY PERCENT ( 20 %) of the original principal amount of this loan, I will pay a prepayment charge in an amount equal to the payment of SIX ( 6 ) months'advance interest on the amount by which the total of my prepayment(s) within that 12-month period exceeds 7WENI'Y FER= ( 2 0 %) of the original principal amount of the loan." IN WITNESS WHEREOF, the Borrower has executed this Rider on the RICHARD FORCHIONE rSeal) Borrower (Seal) Borrower (Seal) Borrower MULTISTATE PREPAYMENT RIDER Document Systems, Ire. (800) 649-1362 day of L��= Seal) DE RA L . CHIONE Borrower (Seal) Borrower (Seal) Borrower USP.RDR ORIGINAL V ► J Loan No.: 60000232 Property Address: 18051 JOYFUL LANE HUNTINGTON BEACH, #201 CALIFORNIA 92648 Exhibit "A" 1&gaI Description -PARCEL 1: Date: JULY 23, 1997 An undivided one twenty second (1/22) fee simple interest as a tenant in corxnon in and to all of the Com-an RYca defined in Declaration referred to below and described in the Condominium Plan I"Plan:") for Lot 1 of Tract No. 14029, which Plan was recorded ot: Augt:St 25, 1994 as Inmtrument No. 94-0525335 of Official Accords of Orange County, over Lot 1 of TracL No. 14620. in the City Of Huntington Beach, Cou::ty of orange, State of California, as per map filed in Book 706, Pages 27 to 29 of Miacellaneous Maps, in the office of the County Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, subetonces, as reserved in deed recorded August 16, and in various other deeds or record, PARCEL 2; gas, minera2a and other hydrocarbon 1921 in book 401, page 356 of needs, Unit No. 2S consisting of certain Airspace and al:rfaee elc--e:1ty, as shown and dzvcribL-d in the Condominium plan referred to in Parcel i above. PARCEL 31 Non-exclouive easements for accrzs, ingress, egress. use, enjoyment. drainage. encroachment, support. maintenance. repairs and for. other purposes, all as describer) in that certain Declaration of Covenants, Conditions and Reztriction4 and Vocervation of kase:nentc for Pacific Park Villas, recorded August 25. 1994 as Instrument r:o. 94-0525336 of official Records. PARCEL 4 : Exciubive eassmanta appurtKnant to Pa.cels 1 and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and a3aigned on the Plan. 4 BALLOON NOTE Loan No. 60000232 (Fixed Rate) THIS LOAN IS PAYABLE IN FULL AT MATURITY. YOU MUST REPAY THE ENTIRE PRINCIPAL BALANCE OF THE LOAN AND UNPAID INTEREST THEN DUE. THE LENDER IS UNDER NO OBLIGATION TO REFINANCE THE LOAN AT THAT TIME. YOU WILL, THEREFORE, BE REQUIRED TO MAKE PAYMENT OUT OF OTHER ASSETS THAT YOU MAY OWN, OR YOU WILLHAVETO FIND A LENDER, WHICH MAY BE THE LENDER YOU HAVE THIS LOAN WITH, WILLING TO LEND YOU THE MONEY. IF YOU REFINANCE THIS LOAN AT MATURITY, YOU MAY HAVE TO PAY SOME OR ALL OF THE CLOSING COSTS NORMALLYASSOCIATED WITH A NEW LOAN EVEN IF YOU OBTAIN REFINANCING FROM THE SAME LENDER. JULY 23, 1997 IRVINE [City] CALIFORNIA 18051 JOYFUL LANE #201, HUNTINGTON BEACH, CALIFORNIA 92648 [Property Address] [State] 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $ 131, 250. 00 (this amount is called "principal"), plus interest, to the order of the Lender. The Lender is MARINA MORTGAGE COMPANY, INC. , A CALIFORNIA CORPORATION I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will be charged on unpaid principal until the full amount of principal has been paid. I will pay interest at a yearly rate of 9.990 %. The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making payments every month. I will make my monthly payments on the 1st day of each month beginning on SEPTEMBER 1 , 19 9 7 . I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. My monthly payments will be applied to interest before principal. If, on AUGUST 1 , 2012 ,1 still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "maturity date." I will make my monthly payments at 15635 ALTON PARKWAY, SUITE 450, I RV I NE , CALIFORNIA, 92618 or at a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in the amount of U.S. $ 1,150.84 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of principal at any time before they are due. A payment of principal only is known as a "prepayment." When I make a prepayment, I will tell the Note Holder in writing that I am doing so. I may make a full prepayment or partial prepayments without paying any prepayment charge. The Note Holder will use all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a partial prepayment, there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. S. LOAN CHARGES If a law, which applies to this loan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (i) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (ii) any sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the principal I owe under this Note or by making a direct payment to me. If a refund reduces -principal, the reduction will be treated as a partial prepayment. - -' 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charges for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of 15 calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 5.000 % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. MULTMATE BALLOON FDLED RATS NOTE -Single Family -FNMA UNIFORM INSTRUMENT Dommw Sysom, im. (MM 649-1362 Page 1 of 2 BN.ISR ORIGINAL ow --% (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default If I am in default, the Note Holder may send me a written notice telling me that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which [lie notice is delivered or mailed to me. (D) No Waiver By Note Holder Even if, at a time when I am in default, the Note Holder does not require me to pay immediately in full as described above, the Note Holder will still have the right to do so if I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to the at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3(A) above or at a different address if I am given a notice of that different address. S. OBLIGATIONS OF PERSONS UNDER THIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things, Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of presentment and notice of dishonor. "Presentment" means the right to require the Note Holder to demand payment of amounts due. "Notice of dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make ill this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WIIT,NEESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. (Seal) IL,JvC3�� (Seal) RICHARD FORCHIONE -Borrower DEBRA L . FtONE -Borrower (Seal) (Seal) -Borrower -Borrower (Seal) -Borrower (Seal) -Borrower MULTISTATE BALLOON FIXED RATE NOTE -Single Family -FNMA UNIFORM INSTRUMENT Document systems, Inc. (M 649-1362 Page 2 of 2 6N.LSR ORIGINAL i F P&1- CITY OF HUNTINGTON BEACH Inter -Department Communication TO: Gus Duran, Economic Development FROM: Gail Mutton, City Attorney DATE: June 1,1999 SUBJECT: Determination of Loan Forgiveness RLS 99-359 INDEX: BACKGROUND You have asked for a determination of whether several loans made by the City of Community Development Block Grant funds, for the first time home buyer down payment assistance program, are forgivable. ISSUE Are the nine loans forgivable? ANSWER Yes, if they were funded with the first S100,000 appropriated for this program. ANALYSIS As part of the 1993-94 CDBG program the City Council approved S 100,000 as a pilot program to provide down payment assistance to moderate income households. We have reviewed several RCAs submitted by your department to the City Council for implementation of this program:; The RCAs we reviewed were the originals in the City Clerk's office. From our review of these documents, we have developed the following chronology: II 10/25/93: The City Council approved sample loan documents and four participants: Diane Culaciati, Michele Tullock, Osman Taban, and Caroline Sutherland in the total amount of $40,475. (RCA attached hereto as Attachment 1). 4/s:4-99ti1emos:DLran527 11/15/93: The City Council was requested to approve and additional S100,000 in CDBG funds for the program. The Council defected the item to December 6, I993. (RCA attached hereto as Attachment 2). 12/6/93: The City Council approved three more participants in the original program: Michelle Schmaderer, Carol Kanarski, and Nicholas Kormeluk. The amounts of their loans are not listed., (RCA attached hereto as Attachment 3.) 12/20193, Item E-17: The City Council approved an additional participant in the program, David Dixson, for the amount of 510,000, and increased the amount for participant Nicholas Kormeluk from S8,600 to S 10,600. (RCA attached hereto as Attachment 4.) 12/20/93, Item F-2: The City Council approved an additional S 100,000 for the program, but changed the program to require repayrrient of these additional funds. There are two important attachments to this RCA. The first is entitled "Approved Participants," and lists the following six participants: Culiaciati, Taban, Sutherland, 5chmaderer, Kanarski, and Kormeluk, in the total amount of $61,952? The second important document attached to this RCA is the list of "Pending Participants" It shows eight more participants in the total amount of S59,100. It is not determinable from this RCA whether these persons were intended to be in the grant program or the loan program, and we do not know when, if ever, these participants were actually approved. 113/94: The City Council approved three more participants in the original, non -repayment program: Judy Young, Treva Love, and Ellen Ommondson, in the total amount of S31,000. When added to the previously committed amount of S73,952, the total amount of funds committed is S 104,952. This exceeds the original S 100,000 appropriated for the original, non - repayment program. The analysis portion of this RCA states that "the approvals herein will be the first funded with the new appropriation," which implies that at least a portion of the funds used for these participants were part of the funds that were conditioned for repayment, as opposed to the original, non -repayment funds. However, the total numbers listed are roughly consistent with the original S 100,000 set aside for the grant program. The total amount of loan funds used is less than $5,000. (RCA attached hereto as attachment 5). Our review of the above documents and chronology of events indicates that the Council did not intend to require repayment of the original $100,000 appropriation. Clearly, then, the loans made to Culiaciati, Taban, Sutherland, Schmaderer Kanarski, Dixson and KorrmeIuk are forgivable, because they were funded using S73,952 of the first S100,000 appropriation. The problem is presented by the transactions with Young, Love, and Ommondson. We believe that the CounciI's intent was to not require repayment from these participants. Unfortunately, there was only $26,048 of the original, non -repayment funds available to these participants, and collectively, they received $31,000. Thus, a small portion of the funds used for these 1 Note that an attachment to this RCA lists ten approved participants. Since the dates listed are after the Council meeting of 1216/93, we believe that this list has been erroneously added to the 1216193 RCA. Z Please note that earlier during the same meeting, the Council had also approved David Dimon for S10,000, and an additional $2000 for Kormeluk. Thus the amount committed from the original S 100,000 was actually S73,952. 2 41sA-99Memos:buran527 �, Irr.rri U participants must have come from the second S 100,000, which the Council appropriated with the condition that the loans be repaid, not forgiven. CONCLUSION There are two conflicting Council actions. The Council's intent was to include participants Young, Love and Ommondson in the original, forgivable loan program. However, it appears that a portion of the funds actually used for the loans to Young, Love and Ommondson were from the second appropriation of funds, which included a repayment condition. Therefore, we recommend that the Council clarify this conflict by approval of an RCA that forgives the Ioans made to Young, Love and Ommondson. a�� Gail Hutton City Attorney 4/s:4-99-%temos:Duran527 V Council/Agency Meeting Held: s�r7-`19 Deferred/Continued to: Approved ❑Conditionally Approved 0 Denied /_ I./s.0uAA. d+f2Cc..r Council Meeting Date: May 17, 1999 City Clerk's ignature C.13,auc Department ID Number: ED 99-29 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENC`Y,_ MEMBERS =?~ter SUBMITTED BY: RAY SILVER, Executive Directo LJ PREPARED BY: DAVID C. BIGGS, Economic Development Director Y, SUBJECT: Authorize the Transferability of 15 Pacific Park Villas Down Payment Assistance Loans Approve and Authorize Execution of Documents Statement of issue, Funding Source, Recommended Action, Alternative Action(s). Analysis, Environmental Status, Attachment(s) Statement of Issue: Currently, the down payment assistance loans made by the Redevelopment Agency for Pacific Park Villas must be individually approved by the City Council. In order to facilitate transfers of these loans, staff is requesting that the Redevelopment Agency establish procedures for administrative approval of these transactions. Funding_Source: None as a result of this action. , Recommended Action: Motion to: I. Authorize the Executive Director and the Agency Clerk to execute on behalf •of the Redevelopment Agency any and all documents necessary to transfer to new low and moderate -income homebuyers the Down Payment Assistance Loans made by the Agency at the inception of the Pacific Park Villas project. See Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be approved as to form by the Agency Counsel). 2. Authorize the Executive Director and Agency Clerk to execute on behalf of the Redevelopment Agency any and all documents necessary to subordinate or to reconvey the Agency loans (notes and deeds of trust), as these home owners refinance, sell their homes or meet their loan obligations, as stated in their notes and deeds of trust. See Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park ViIlas." (All documents to be approved as to form by the Agency Counsel). 61"5 REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: May 17, 1999 DEPARTMENT ID NUMBER: ED 99-29 Alternative Action(s): The Redevelopment Agency can retain the authority to approve the transferability of each and every Down Payment Assistance Loan made on this project. The number of loans originated for this project was 16 loans. This means that each and every time, Agency staff will have to prepare a Request for Agency Action, thereby increasing staff time and costs. It will also delay the ability the sellers and buyers to close escrow quickly. In some cases the delays could cause undue hardship and cause the sale of properties to fall out of escrow. Analysis: In 1996, the Redevelopment Agency made 15 Down Payment Assistance Loans to low- and moderate -income homebuyers purchasing dwellings at the Pacific Park Villas residential project located near Talbert and Beach. The purpose of these loans were to expedite the sales of homes in the Pacific Park Villas project and simultaneously meet the Redevelopment Agency's obligation to assist low and moderate income persons with 20% Set Aside Funds, as required by Redevelopment Law. The loans made to these homebuyers were meant to be transferable to other low and moderate -income families. The City Attorney's Office has been requested to make a determination of the transferability and has rendered a decision indicating that the loans are transferable to other homebuyers that meet the income qualification of having incomes below 120% of the median income for Orange County. (See attached memorandum from the City Attorney's Office). Some of these homebuyers are now ready to move on with their lives and are desirous to sell their properties. To facilitate the closing of escrows without significant delays to sellers and buyers, the Economic Development Department is requesting that the Redevelopment Agency Board authorize the Executive Director and the City Clerk to administratively manage the transferability of these loans. This will permit the Executive Director to execute documents without having to come the Agency Board on each and every loan, especially since these loans were prepared with the identical notes, deeds of trust and Covenants, Conditions and Restrictions (CC&R's). The City Attorney's Office has provided an opinion on the loans' transferability. Environmental Status: N/A Attachment(s): 1. 1 City Attorney's Office Memorandum. 2. 1 Sample Loan Documents. 3. List of Down Payment Assistance Borrowers at Pacific Park Villas. RCA Author: Gus Duran X1529 RCAPPV.DOC -2. 05/05/99 9:34 AM Citv Attornev's Office Memorandum ATTACHMENT #1 J. CITY OF HUNTINGTON BEACH Inter -Department Communication TO: David Biggs, Director of Economic Development FROM: Gail Hutton, City Attorney DATE: April 26,1999 SUBJECT: Wallace Loan Documents You have asked several questions concerning the Wallace loan documents. 1. Is the loan transferable? A. Yes, with the Agency's prior written consent. See Section 18 of the Loan Agreement. 2. What are the income limits for purchasers? A. No greater than 120% of median income (moderate income) pursuant to Section 9 of the Loan Agreement. 3. Does the new buyer need to meet the income requirements of the CC&Rs? A. Yes. 4. Is the Equity Share payable if the buyer qualifies under the CC&Rs? A. Yes. 5. Can the interest be forgiven if the property's fair market value does not exceed 5% per year? A. No, unless the Agency approves forgiving the interest. 6. Should the Equity be calculated minus the selling expenses? A. No. Please contact me if you have any further questions. Gail Hutton City Attorney 44:4-99-MemosSiggs426 IN CITY OF HUNTINGTON BEACH Inter -Office Communication Economic Development Department TO: Gail Hutton, City Attorney P Paul D'Alessandro, Deputy City Attorney 0 FROM: David C. Biggs, Director of Economic Development DATE:' April 20,1999 SUBJECT: First Time 11ome Buyer Loan for Barbara Jo Wallace Yesterday, April 19, 1999, Gus Duran, the Department's Housing and Redevelopment Manager met with Ms. Barbara Jo Wallace, her real estate agent and other property owners of the Pacific Park Villas project to discuss theinconcems regarding First Time Homebuyer loans made to them by the Redevelopment Agency. As you may recall, at a previous City Council meeting, NI-Ir. Bob Osterhdudt made a plea to the City Council requesting assistance for the property owners of this complex. In addition, Ms. Wallace has written to the Mayor and the City Attorney (April 2, 1999) requesting the Redevelopment Agency's assistance in resolving her needs to sell her property mith the Agency's assistance. The Economic Development Department is ready and willing to help Ms. Wallace and the other property owners sell their homes, as they need to move on with their lives when they desire, but we are in need of a legal opinion regarding the following issues: 1. Is the loan made to Ms. Wallace, which is similar to those made to the other buyers of Pacific Park Villas, transferable? 2. What are the income limit requirements for the purchasers of these homes when a property o,.;ner sells his/her home? (See attached 1999 Orange County Affordable Housing Woiksheet issued ' by the law firm of Stradling, Yocca, Carlson & Rauth.) 3. Does a new buyer need to meet th�e'iricome•iequiretrients established in the CC & R's? 420199:0us Uum:FioudevAVALLACE 4. 1s the "Equity" payable if the sellers sell their home to a buyer that meets the income requirements established in the Note and the CC&R's? 5. Can the interest be forgiven if the property's "fair market value" does not exceed 5% per year? 6. Should the "Equity" be calculated minus the selling expenses (See Section 4A of Loan Agreement)? We are requesting an immediate opinion on these issues, as Ms. Wallace has already purchased a home in the State of Washington and has a pending sate of her property in Huntington Beach in the works, subject to the Agency's determination on these issues. At the moment, her pending sale is being held up because neither the seller, nor the buyer knows what to do with- the information on the note and deed of trust, or the CC&R's. Attached are copies of Ms. Wallace's documentation. These are the following: 1. Loan Agreement to Ms. Wallace from the Redevelopment Agency. 2. Promissory Note 3. Deed of Trust with Assignment of Rents 4. Lending Instructions 5. Certificate of Proposed Transferee 6. Declaration of Conditions, Covenants and Restrictions for Property 420P94:Gus Duranlioudev:WALLACE Sample Loan Documents ATTACHMENT #2 .1 U V LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 5-tf- day of 193�,_ by and between BARBARA JO WALLACE ("Participant") and the FLED VELOPIMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as 18051 Joyful Lane 4205 Huntington Beach, California, and more particularly described in Exhibit A attached hereto and incorporated herein (the "Property' ). B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and currently earns less than 120% of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to the Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. The Agency desires to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach (the "City"). E: The Agency wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: 1. AgencyAgengy Loan. The Agency shall loan to Participant (the "Agency Loan") the amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the Program. The Agency Loan shall be paid to the seller of the Property (the "Seller") by the Agency through deposit of the Agency Loan proceeds into escrow with TIMPO ESC Row, INC., A CALIFORNIA CORPORATION (the "Escrow Agent") (Escrow No. 9442-e _ ). The Agency shall direct the Escrow Agent to apply the proceeds of the Agency Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the Agency a Loan Agreement Page 1 of 8 4ks1G:4-96-Abrcc: W atlacc:toanagree RLS 96.323 W26196 V promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple interest at five percent (5%) per annum, due in thirty (30) years and payable upon the earlier sale, refinancing or transfer of the Property, substantially in the form of the "Promissory Note" attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to the Agency a second deed of trust encumbering the Property which shall secure the Promissory Note (the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated herein. 2. Maintenance of Propert . Participant shall maintain the improvements on the property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with'all applicable federal, state and local laws. 3. Due on Sale Transfer or Refirlancin . Participant agrees to notify the Agency not less than thirty (30) days prior to (i) the sale or transfer of the Property or (ii) any refinancing of the lien of the Agency Deed of Trust or any lien to which the lien of the Agency Deed of Trust is subordinate (the "First Mortgage"). The Agency Loan and all interest accrued thereon shall be due and payable upon (i) such sale or transfer, (ii) the refinancing of the first Mortgage for a loan amount in excess of the then current loan balance or for an amortization period longer than the loan secured by the First Mortgage, or (iii) Participant is no longer an occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan. 4. Equity Sharing. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency concurrently with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary of the Agency Deed of Trust: 2. After fifth anniversary but prior to sixth anniversary: 3. After sixth anniversary but prior to seventh anniversary 4. After seventh anniversary but prior to eighth anniversary: Loan Agreement Page 2 of 8 fifty percent (50%) forty-eight percent (48%) forty-six percent (46%) forty-four percent. (44%) 4Y.GA —96-AgrecMal laccloanagrec RI.S 96-323 7126l96 V U 5. After eighth anniversary but prior to ninth anniversary: 6_ After ninth anniversary but prior to tenth anniversary: 7. After tenth anniversary but prior to eleventh anniversary: 8. After eleventh anniversary but prior to twelfth anniversary: 9. After twelfth anniversary but prior to thirteenth anniversary: 10. After thirteenth anniversary but prior to fourteenth anniversary: 11. After fourteenth anniversary but prior to fifteenth anniversary: I2. After fifteenth anniversary but prior to sixteenth anniversary: 13. After sixteenth anniversary but prior to seventeenth anniversary: 14. After seventeenth anniversary but prior to eighteenth anniversary: 15. After eighteenth anniversary but prior to nineteenth anniversary: 16. After nineteenth anniversary but prior to twentieth anniversary: 17. After twentieth anniversary but prior to twenty-first anniversary: 18. After twenty-first anniversary but prior to twenty-second anniversary: 19. After twenty-second anniversary but prior to twenty-third anniversary: Loan Agreement Page 3 of 8 forty two percent (42%) forty percent (40%) thirty-eight percent (38%) thirty-six percent (36%) thirty-four percent (34%) thirty-two percent (32%) thirty percent (30%a) twenty-eight percent (28%) twenty-six percent (26%) twenty-four percent (24%) twenty-two percent (22%) twenty percent (20%) eighteen percent (18%) sixteen percent (16%) fourteen percent (14%) 4's�G:4-96-Agrcc:wall3cc:toanigree RU 96-523 7126196 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Sellers interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. Loan Agreement Page 4 of 8 4'4WjA 96-Avice-NV xUace:foanagree R S 96-523 7126196 A. Equity Share Upon Sale or Transfer. The Equity Share Amount shall be payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer") whose income exceeds 120% of the current annual median income for the Orange County area. If the Buyer does not submit an income verification statement to the Agency, the Buyer shall be deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the Equity Share Amount shall not become payable. B. Equity Share Upon Refinancing or Failure to Occupy. The Equity Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property or material breach of any other provision of this Agreement which causes the Agency Loan- to become due and payable. The Sales Price for purposes of determining the Equity Share Amount shall be determined by an appraisal of the Property. The Agency shall appoint a certified, independent,- appraiser to conduct an appraisal of the Pro2erty, at Participant's expense. and Par lcpant agrees t at in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between the Purchase Price and the appraised value of the Property as of the time of such refinancing. This Agreement shall be terminated upon the Participant's repayment of the Agency Loan and payment of the Equity Share Amount as provided in this Agreement. C. Expiration of Equity Share Obligation. In the event the Participant does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or is not in material breach of any other provision of this Agreement before the Thirtieth anniversary of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share Amount to Agency upon any later sale, transfer or refinancing. 5. Occupancy Standards. The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property. 6. Income Information. Participant has submitted an eligibility verification form to the Agency prior to execution of this Agreement. Participant represents and warrants to the Agency that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the Agency is relying upon Participant's representations that Participant's income does not exceed 120% of the area median income and would not have entered this Agreement if Participant's income exceeded 120% of the area median income. 7. Loan Servicing. The Agency may contract with a private lender to originate and service the Agency Loan. 8. Participant Financing. Participant shall obtain financing for the purchase of the Property from the Southern California Home Financing Authority or a reputable institutional lender approved by the Agency (the "Lender"). The lien secured by the Agency Deed of Trust Loan Agreement Page 5 of 8 4\s\G:4-96-Agrcc: W al lacc:loanagrcc RI S 96-523 7/26/96 shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns. In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 9. Covenants. Participant and the Agency shall execute and have recorded in the Official Records of Orange County, California, a "Declaration of Conditions, Covenants and Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated herein, in which Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health & Safety Code Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Agency and the City. 10. Nan %Vaiver. Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 11. Indemnification. The Participant shall defend, indemnify and hold harmless the Agency and the City of Huntington Beach and their respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the Agency or the City to make such payments, by virtue of the Agency Loan. 12. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required go protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 13. Documents. Participant is aware that the Agency has prepared certain documents to implement the Program and secure repayment of the Agency Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Agency Loan; Loan Agreement Page 6 of S 4�sw:4 �3G-hgrtc:wa!lact'.lozatia�ce Itl S 9G Sx3 7RGMG (a). Disclosure Statement; (b) Promissory Note; (c) Agency Deed of Trust; and (d) Declaration of Conditions, Covenants and Restrictions of Property: Participant agrees and acknowledges that the Agency Deed of Trust and the Declaration of Conditions, Covenants and Restrictions of Property shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. 14. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the Agency shall -from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and malting the Agency Loan. 15. Governin Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. 16. Amendment ofAgreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 17. Agency_May Assign. Agency may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 18. Participant Assi nrment Pr hibited. in no event shall Participant assignor transfer any portion of this Agreement without the prior express written consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 19. Entire re ment. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous Loan Agreement Page 7 of 8 4"-s' 0:4.9G-Agree: Wallace:losnagree lt! S 96-323 7►2G/96 39 agreements between the Agency and the Participant concerning all or any part of the subject matter of this Agreement. IN WITNESS WHEREOF, the parties have e.ecuted this Agreement as of the day and year written below. "PARTICIPANT" � J i Date: AUGUST 13, 1995 , 19 By: 1.:s�L La � lL•�z%`�cL Printed Name: Date: - , 19 By: Date: , I9 Date: I9j.�— ATTEST: 4�� Agency Clerk REVIEWED AND APPROVED: Executi e Director Printed Name: Printed Name: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: Chairman APPROVED AS TO FORM: A-la-v.4•�(t•�1 �q�,z. Agency Counsel INITIATED AND APPROVED: A� C. hr) Director of Economic evelopment Loan Agreement Page 8 of 8 41s%G:4 96-Agrea:Wallate:loanagree RLS 96-523 7126196 .• i f EXHIBIT A LEGAL DESCRIPTION OF PROPERTY PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to all of the common Area defined in Declaration referred to below and described in tite condominium Plan ("Plan") for Lot 1 of Tract 11o. 14828, which Plan was recorded on August 25, 1994 as Instrument tto. 94-0525335 of official Records of Orange County, over Lot 1 of'� Tract 11o. 14828, in the City of Huntington Beach, county of orange, State of California, as per map filed in Book 706, Pages 27 to.29 of riiscellaneous Maps, in the office of the county Recorder of said county. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon , substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: , Unit t1o. 22 consisting of certain airspace and surface elements, as shown and described in i the Condominium Plan referred to in Parcel 1 above. Parcel 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument 11o. 94-0525336 of Official Records. Parcel 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas:defined, depicted and assigned on the Plan. } Exhibit A to Loan Agreement Page I of I 4`stAgrce:I.tugoiis:Ex t;bitAT7/2G196 EXHIBIT B PROMISSORY NOTE 35000.00 AUGUST STU 19 Huntington Beach, California FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The Redevelopment Agency of the City of Huntington Beach ("Holder") at 2000 Main Street, P.O. Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct from time to time in writing, Thirty-five Thousand Dollars (S35,000.00) (the "Note Amount") together with interest thereon at the rate set forth herein. All sums hereunder shall be payable in lawful money of the United States of America and all sums shall be credited first to interest then due and the balance to principal. 1. Interest Rate Simple interest shall accrue on the Note Amount at a rate of five percent (5,00%) per annum. If the fair market value of the Property does not increase at least five percent (5.00%) per annum, the accrued interest on the Note Amount shall be forgiven by the Holder. 2. Maturity Date The balance of all un aid principal and accrued interest shall be due and payable on AUGUST 5TH 24 �6 (thirtieth (30th) anniversary date of this Promissory Note). 3. Acceleration The whole of the Note Amount plus accrued interest and all other payments due hereunder shall become due and be immediately payable to the Holder by the Maker upon the occurrence of any one of the following events: . (a) Maker sells or otherwise transfers title to the Property, or (b) Maker refinances any lien or encumbrance to which the Agency Deed of Trust is subordinate for a loan amount which is in excess of the then current loan balance of such prior lien or extends the amortization period of the loan secured by such prior lien; or (c) Maker fails to occupy the Property or to perform any obligation under the Agreement (as hereinafter defined). "Exhibit B" to Loan Agreement Pagel of 3 4V%4-9dAgrec: Waiiacc_GxhibRa R[S 9G-523 7126196 4. Security for Note This Promissory Note shall be secured by a second deed of trust encumbering the Property (the "Agency Dead of Trust"), executed by Maker as Trustor in favor of Holder as Trustee. 5. Prepayment of Note Amount Maker may prepay to Holder the full Note Amount, together %vith simple interest thereon at a rate of five percent (5.00%) per annum, at any time prior to the due date of the Note Amount. 6. Loan Agreement This Promissory Note is made and delivered pursuant to and in implementation of Loan A��rgTent entered by ana between the Holder and the Maker dated AUGUST 5, , (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference. The Maker acknowledges that but for the execution of this Promissory Note, the Holder would not enter into the Agreement or make the Ioan contemplated therein. Unless definitions of terms have been expressly set out at length herein, each term shall have the same definition as set forth in the Agreement. 7. Holder May Assign Holder may, at its option, assign its right to receive payment under this Promissory Note without necessity of obtaining the consent of the Maker. 8. Maker Assignment Prohibited Jn no event shall Maker assign or transfer any portion of this Agreement without the prior express written consent of the Holder, which consent may be given or withheld in the Holder's sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan proceeds hereunder. 9. Attorneys'Fees and Costs In the event that any action is instituted to enforce payment under this Promissory Note, the Maker promises to pay such sums as a court may fix for court costs and reasonable attorneys' fees. 10. Non -Waiver Failure or delay in giving any notice required hereunder shall not constitute a waiver of any default or late payment, nor shall it change the time for any default or payment. "Exhibit B" to Loan Agreement Page 2 of 3 4\s14.9GAgtce: W allscc:txhibitii it 1 S 94-523 7/26PM 11. Successors Bound - This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. "MAKER" s By: )eIt 4� is iz �= Lc:� c -� u z Printed Name: BARBARA JO ALA' By: Printed Name: By: Printed Name: "Exhibit B" to Loan Agreement Page 3 of 3 4W-96Agrcc: Wallace:rsxhibitB RLS 96-523 7/26/96 Q V RECORDING REQUESTED BY ) AND WHEN RECORDED RETURN TO: ) Redevelopment Agency of the City of } Huntington Beach ) 2000 Main Street ) Huntington Beach, California 92648 ) Attn: Agency Clerk ) [Spice Above This Line For Reeardces the I This document is exempt from recording fees pursuant to Goveriinzew Code Section 6I03. DEED OF TRUST WITH ASSIGNMENTS OF RENTS THIS DEED OF TRUST is made this 5m day of Aug. , 19 96, by and among BARBARA JO WALLACE, whose address is 18051 Joyful Lane, -9205, Huntington Beach, California (the "Trustor") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a) all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits . thereof, (c) any water rights and/or stock are appurtenant -or pertain to said land, and (d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. "Exhibit C" to Loan Agreement Page 1 of 15 4Lsir;:4-96agree: W tltaee: Cxleib itC RLS 9G-323 MGM V A. FOR THE PURPOSE OF SECURING: I . Payment of the sum of Thirty-five Thousand Dollars ($35,000.00) with interest thereon according to the terms of a Promissory Note of even date herei,%ith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof. 2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes, or (b) as may be added to the indebtedness secured hereby in accordance with the provision of this Deed of Trust. 3. Performance of each and every obligation, covenant, promise or agreement of Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated AUGUST 5 , 19 96 , insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, fixture indebtedness or obligation of the Trustor (or of any successor -in -interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: I . To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at ail reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry -rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; "Exhibit C" to Loan Agreement Page 2 of 15 4's�0:4-945acrec: WiTlacc: CxhibitC RM 96.323 7/26196 (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary Within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be Fled of record against the property; (f) not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination "Exhibit C" to Loan Agreement Page 3 of 15 4`,tlo:4-943erec: wal lace. Cxhibi(C RLS 96-523 7126196 of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. A. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so "Exhibit C" to Loan Agreement Page 4of15 41slG:4-96agrec:W4I13ce:t xhibitC it! S 96-523 7/26196 V expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. S. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property id directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust. b. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the: repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. S. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or "Exhibit C" to Loan Agreement Page 5 of 15 4'a'.0:4.962grcc: WaIlace:ixhibitC RLS 9G-323 7/26M thereafter secured hereby, or the rights or -powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c) join in granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re -assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Trust Deed, or cause Beneficiary to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Beneficiary confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents., issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein, and neither said right, nor termination of the License, shalt impose upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver "Exhibit C" to Loan Agreement Page G of 15 d\,1C:4-9Gagrcewallace:C• x1►ibitC ILLS 9G•523 712WG to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, dnforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided; orlduring the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, ,nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the.lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease", as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shalt not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing; the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein' or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he�will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold {estate that is security for this Deed of.Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. If the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of "Exhibit C" to Loan Agreement Page 7 of 15 414\GG:4.96aucc-.Waliacc:FxhibitC RI.s 96-523 7126/96 Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have "Exhibit C" to Loan Agreement Page 8of15 4NS'0:4-94agrcc: Wattace:ExltibitC RLS 9G-323 W2G/9G been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on January 1, a written operational report. Such operational report shall contain a brief but complete statement of the year's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 20. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of'rrust or of any action or proceeding ill which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable. 23. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to "Exhibit C" to Loan Agreement Page 9 of 15 4\s\G:4-96agrcc: W al Iacc:GxhibitC RCS 9G-523 7/2G/96 U kwd .0 disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR: By ' 4 ,(1�"."_ Y) al" ,-,,P .. BARBARA JO WALLACE By: By: APPROVED AS TO FORM: Agency Counsel .Ek- N "Exhibit C" to Loan Agreement Page 10 of 15 4V%0;4.96agree: Wall ace:LxiiibitC Rt.S 96-573 7126/96 RIDER TO DEED OF TRUST FIRST TIME HOMEBUYER DOYi N PAYMENT ASSISTANCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUGUST 5TEI , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sure of Thirty-five Thousand Dollars ($35,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. In the event that the Agency Loan becomes due and payable prior to the thirtieth - anniversary of the date of this Agreement, Trustor shall pay to Beneficiary concurrent with such sale, transfer or ref nancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary of the Agency Deed of Trust: fifty percent (50%) 2. After fifth anniversary but) prior to sixth anniversary: forty-eight percent (48%) 3. After sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: forty-four percent (44%) 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary. forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) 8. After eleventh anniversary but + prior to twelfth anniversary: thirty-six percent (36%) ! 9. After twelfth anniversary but prior to thirteenth anniversary: thirty-four percent (34%) "Exhibit C" to Loan Agreement Page 11 of 15 4'9`-0:4.96agrec:Wallacc:> xl+ibitC RLS 96.323 W26196 10. After thirteenth anniversary but 4`s10:4-96agrce.Wallaea:rxhthttC RIS 96-323 7/26M6 prior to fourteenth anniversary: thirty-two percent (32%) 11. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. After twenty-fourth anniversary but ' prior to twenty-fifth anniversary: ten percent (10°la) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4°!0) "Exhibit C" to Loan Agreement Page 12 of 15 U M W 25. i0 27. After twenty-eighth anniversary but prior to twenty-ninth anniversary: After twenty-ninth anniversary but prior to thirtieth anniversary: After thirtieth anniversary: two percent (2%) one percent (1%) zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The percentage factor so determined is the "Applicable Factor." If the Property is sold, an amount equal to the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the amount received by Trustor as the Property sale price (as reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. If the Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is subordinate is refinanced for a loan amount which is in excess of the then current loan balance or extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the appraised value of the "Exhibit C" to Loan Agreement Page 13 of 15 41s1G:4-96agrcc: W all3CC:CxhibilC RLS 96.523 7l26M6 v V Property as of the time of such transfer or refinancing. Dated: AUGUST 13, 1996 APPROVED AS TO FORM: Agency Attorney �_ 2 A 41s%G:4-96xgrcc: W alticc: ExhlbltC RI S 96-573 MGM TRUSTOR BARBARA j6 WALLACE "Exhibit C" to Loan Agreement Page 14 of 15 I U RIDER TO DEED OF TRUST SUPERIORITY OF FIRST LENDER DOCUMENTS (if required by the First Lender) This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUGUST 5 , I9 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand dollars ($35,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter recorded against the property described herein. Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of one of the following events: 1) Title is acquired by the First Lender or another party upon foreclosure of a deed of trust by the First Lender. 2) Title is acquired by the First Lender or another party by a deed in lieu of ' foreclosure of the First Lender deed of trust. Dated: AUGUST 13, 1996 TRUSTOR: APPROVED AS TO FORM: BAPMM JO [.ACE Agency Attorney �rcl� "Exhibit C" to Loan Agreement Page 15 of 15 4's%G:4.96agrcc: W allacc: rixltibitC It US 94.523 7126M y � L CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF ORANGE SS. Oil _ AUGUST 13, 1996 , before ine, lire widersigried, personally sppearel BARBARA JO WALLACE personally known to rile (or proved to me on [lie basis or satisfactory evidence) to be lire person(s) whose naine(s) is/are subscribed to the within Instrument and acknowledged to rile that Ire/slreliliev executed the same In hisllierllheir authorized capacity(ies), and that by hisllrerllheir• sigrralure(s) on the Instrument the persoil(s) or the entity upon bel tali of which the person(s) acted, executed lit(! Instrument. WITNESS fny hand and official seal. • LnMA J. CAMPBELL (I [its area for official iiolotial seni) *- �' _': K• LINDAJ. CAMPBELL = F. COW. # 1045344 Co m W_ a 1. NOTARY PUBLIC - CALIFORNIA ORANGC COUNTY a My Comm. E irqps DEC. 20. 190a OPTIONL lllllliflfflftiffiifflll flliflillllll Though the data below are not required by law, they may prove valuable to persons relying art the d=llnent and could prevent the fraudulent reallacliinenl of this forth. Capacity Claimed By Signer Windividual C7 Corporate Officer 7Itles(s) U Partner(s) IJ Limited Cl. General • Attorney -In -Fact iJ Trustee(s) lJ Guardian/Conservator O Other: Signer Is Representing: Native of Person(s) or Etitlly(les) Uescrililiotr or Attached DOUL1111e1rt or i f--! T- 1 illo or •Type of Uocullient _ Number or Pages Uate or Document slgnei(s) Other Than Named Above EXHIBIT A TO AGENCY DEED OF TRUST LEGAL DESCRIPTION PARCEL 1t An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to i all of the common Area defined in Declaration referred to below and described in the. Condominium Plan (*,Plan',) for Lot 1 of Tract No. 14828, which Plan was recorded an August 25, 1994 as instrument Via. 94-0525335 of official Records of Orange county, over Lot 1 of Tract No. 14828, in the city of Huntington Beach, county of orange, state of .California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous !taps, in the office of the County Recorder of said county. Excepting therefrom 811 oil, petroleum, asphaltum, gas, minerals and oche; hydrocarbon - substances, as reserved in -deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: Unit too, 22 consisting of certain airspace and surface elements, as shown and described in I the Condominium Plan referred to in Parcel 1 above. Parcel 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336 of official Records. Parcel 4t Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas:defined, depicted and assigned on the Plan. "Exhibit A" to Agency Deed of Trust Page I of i 4`skU:ngrcc:ntugolis:Exhcflcc&47n6M6 R1S 96.127 EXHIBIT D DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY RECORDING REQUESTED BY } AND WHEN RECORDED MAIL. TO: ) } } } (Space above for Recorder's use.) THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (the "Declaration!') is made by and between BARBARA JO WALLACE (the "Covenantor") and THE REDEVELOP'VIENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency" or "Covenantee") as of the date set forth below. RECITALS A. Covenantor and the Agency have entered into a certain Loan Agreement dated AUGUST 5 . 19 96 _, (the "Agreement," a copy of which is on file with the Agency at its offices and is a public record) pursuant to which the Covenantor has agreed to subject certain real property (referred to in the Agreement and referred to herein as the "Property") described in the "Legal Description of the Property" (which is attached hereto as Exhibit "A" and incorporated herein by this reference) to certain covenants, conditions and restrictions. B. The Community Redevelopment Law (California Health and Safety Code § 33000 et seq.) provides that a redevelopment agency shall establish covenants running with the land in furtherance of redevelopment plans. NOW, THEREFORE, the parties hereto agree and covenant as follows: "Exhibit D" to Loan Agreement Page 1 of 9 4\$kG:4-96Agree.Wallacc:Ex iibilD RLS 96.523 7129194 1. Affordability Covenants. Covenantor agrees for itself, and its successors and assigns, and every successor to Covenantor's interest in the Property, or any part thereof that for thirty (30) years from the date of recording of the Deed of Trust in favor of the Agency regarding the Property (the ".Expiration Date"): (a) The Property shall only be owned and occupied by Convenantor or by other persons or families of "Moderate Income." "Moderate Income" shall mean persons or families earning One Hundred Twenty Percent (120%) or less of Orange County median income, adjusted for appropriate family size. (b) The Property shall be kept available at Affordable Housing Cost (as defined below) to the Covenantor or other persons or families of moderate income. Affordable Housing Cost shall mean, as to each person or family of low or moderate income, that purchase price which would result in monthly housing payments which do not exceed an amount under any currently prevailing conventional home mortgage lending rates applied by any reputable institutional home mortgage lender, or the lending rates of any government -subsidized or special mortgage program for which such person or family qualifies and has obtained a first trust deed loan, which do not exceed thirty-five percent (35%) of One Hundred Ten Percent (110%) of the Orange County monthly median income for those persons and families of moderate income (as determined by the United States Department of Housing and Urban Development) earning between Eighty Percent (80%) and One Hundred Ten Percent (110%) of the Orange County monthly median income, and Thirty -Five Percent (35%) of the monthly median income of any person or family of moderate income which earns more than One Hundred Ten Percent (110%) and not more than One Hundred Twenty Percent (120%) of the Orange County median income. (c) The covenant contained in this Section 1 shall run with tite land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 2. Transfer of Prop. erty. No transfer of the Property shall occur until the Agency determines (a) that the proposed purchaser intends to occupy the Property as the proposed purchaser's principal residence, (b) that the proposed purchaser is a person or family of moderate income and (c) that the proposed transfer occurs at an Affordable Housing Cost. The Agency shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted to the Agency such information and completed such forms as the Agency shall request to certify the proposed purchaser's intent with respect to its residency of the Property and its gross income, and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall submit to the Agency an executed disclosure statement which certifies that the purchaser is aware that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate income person or family, that the maximum permitted sales price may be less than fair market value and that the unit must be owner -occupied at all times and cannot be rented or leased. Covenantor shall cooperate with the Agency in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the Agency in connection with the Covenantoes original sale of the Affordable Unit, provided that "Exhibit D" to Loan Agreement Page 2 of 9 41sXO:4-96Agrce: W ail ace:ExhibitD RLS 96.323 7129/96 the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST. .0 V Covenantor initials The covenant contained in this Section 2 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 3. n-Discrimination ovenants. Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property. Covenantor and its successors and assigns, shall refrain from restricting the rental or lease (if permitted by Covenantor) or sale of the property on the basis of race, color, religion, sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or non segregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, "Exhibit D" to Loan Agreement Page 3 of 9 4\atG:4-96Agrce: Watlacc: CxliibttD RLS 96-523 7/29/96 nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees in the land herein conveyed. The foregoing convenants shall run with the land." (b) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, ancestry or national - origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection; location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees of the premises." Nothing in this Section 3 shall be construed to authorize the rental or lease of the Property if such rental or lease is not otherwise permitted. The convenants in this paragraph 3 shall run with the land in perpetuity. 4. Covenants Do Not Impair Lien. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 5. Covenants For Benefit of City and Agency. All covenants without regard to technical classification or designation shall be binding for the benefit of the Covenantee and the City of Huntington Beach (the "City") and such covenants shall run in favor of the Covenantee and the City for the entire period during which such covenants shall be in force and effect, without regard to whether the Covenantee or the City is or remains an owner of any land or interest therein to which such covenants relate. The Covenantee and the City, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such "Exhibit D" to Loan Agreement Page 4 of 9 4\&10:4-96Agrw: Wsitue:ExhibitD RLS 96-523 7129196 V breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenants, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. IN NVITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument to be executed on their behalf by the respective officers hereunto duly authorized, this 13 day of - � 19 96 COVENANTOR Y.Jrzlx'd t4 lam(/az&'W MPaWA JO WALGACE APPROVED AS TO FORM: Agency Counse7Z_s,E4,��f� "Exhibit D" to Loan Agreement Page 5 of 9 41s1G:4-96Agree: W atlace: Exhib;ID RLS 96.523 7129/96 STATE OF CALIFORNIA ) ss COUNTY OF _ a1ANGE On AUGUST 13, 1996 before me, LINDA J. CAMPBELL (name, title; e.g., "Jane Doe, Notary Public"). personaIIy appeared BARBARA JO IMLAC-E (name(s) of signer(s)), personally kno%Nm to be -- OR -- XX proved to me on the basis of satisfactory evidence to be the person(s) ~whose name(s) is/arc subscribed to the within instrument and acknowledged to nie that he/slielthey executed the same in his/her/their authorized capacity(ics), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrumcnt. �V'tn ss m 1 hand and official seal. cc LINDAJ. CAMPQELL z m S�', •''2 344 FAO CO PUBLIC 1 CALIFORNIA = r n ORANGE COUNTY (Signal c of Notary) MY Comm. [~r�;ree DEC.20.19W LIMA J. CAMPBELL CAPACITY CLAIMED BY_SIGNER: XK Individual Corporate Offieer(s): ' Title(s) Partncr(s): Limited General Attomey-in-Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACEIINIENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document DECLARATICN Or CONDITIONS, OOVftIAt`7xS MST BE ATTACHED_ AND RESTRICTICNS FM ptt EUY TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AU= 5, 1996 AT RIGHT: Signers) Other Than Named Above: "Exhibit D" to Loan Agreement Page 6 of 9 41s1G:4-96Agrcc:Wall ace:Eaiub4tD R1S 96-523 7129196 STATE OF CALIFORNIA ) ss COUNTY OF ) On before me, (name, title, e.g., "lane Doe, Notary Public'), personally appeared (name(s) of signer(s)), personally known to be -- OR -- proved to me on the basis of satisfactory evidence to be the person(s) whose namc(s) is/are subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in his/her/their-authorized capacity(ics), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. - Witness my hand and official seal. (Signature of Notary) APACITY CLAIMED BY SIGNER: Individual Corporate Oflicer(s): Titles) Partner(s): Limited General Attorney -in -Fact Trustee(s) GuardiwVConservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ies) ATTENTION NOTARY. Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT: Title or Type of Document Number of Pages Date of Document Signer(s) Other Than Named Above: "Exhibit D" to Loan Agreement Page 7 of 9 4V%0A-96Agfee:Wa11ace:ExhibitD RES 96-523 7129196 STATE OF CALIFORNIA ) } ss COUNTY OF On before me, (name, title, e.g., "Jane Doe, Notary Public"), personally appeared (name(s) of signer(s)), personally known to be -- OR -- proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that hc/shchhey executed the same in his/licr/tlicir authorized capacity(ics), and that by his/her/thcir signature(s) on the instrument th-. person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seat. (Signature of Notary) CAPACITY CLAIMED BY SIGNER: Individual Corporate Officer(s): Title(s) Partner(s): Limited General Attorney -in -Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT ESCRIBED AT RIGHT: 41s%0:4-96Agree: Wallacc:ExhibitD ILLS 96-523 7129/96 Title or Type of Document Number of Pages Date of Document Signer(s) Other Than Named Above: "Exhibit D" to Loan Agreement Page 8 of 9 U. U U U EXHIBIT A LEGAL DESCRIPTION 1 OF PROPERTY [To Be Inserted) LEGAL DESCRIPTXON EXHIBIT "A" PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to all of the Common Area defined in Declaration referred to below and described in the Condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument lid. 94-0525335 of official Records of Orange County, over Lot I of Tract No. 14828,.An the'City of Huntington Beach, County of orange, state of California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of -the county Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: unit No. 22 consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. Parcel 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336 of official Records. + Parcel 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and assigned on the Plan. .i "Exhibit W to'Loan Agreement Page 9 of 9 4's%0:4-96Agree: Wallate:ExhibilD RLS 96-523 7129196 List of Down Payment Assistance Borrowers at Pacific Park Villas ATTACHMENT #3 RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Transferability of Pacific Park Villas Down Payment Assistance Loans COUNCIL MEETING DATE: I May 17, 1999 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (wlexhibits if applicable) (Signed in full by the City Attome Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City AHome Not Applicable Certificates of Insurance A roved b the Cif Attome Not Applicable Financial tm act Statement Unbud et, over $5,000 Not Applicable Bonds if applicable) Not Applicable Staff Report If a licable Not Applicable Commission, Board or Committee Report if applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff Assistant City Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: RCA Author: Duran at extensionl529 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII11 19093 Beach Boulevard • Huntington Beach, CA 92648 • (714) 843-0101 • FAX (714) 843-9949 Fs � CITY OF HUNTZNGTON BEAM Date: August 1, 1997 n OFFICE OF THE CITY CLERK Escrow No.: 10225-C r. 2000 MAIN STREET nz~� T ,,.r "C A HUNTINGTON MOT CA 92648 o W <s "y p �L! Property Address: 18051 Joyful Lane #201, Huntington Beach, Ca 92648 ""- r In connection with the above -numbered escrow, we are enclosing herewith the --�I following: FINAL CLOSING STATEMENT zf you should have any questions regarding the above, please do not hesitate to contact the undersigned. Thank you for your cooperation in this matter. Sincerely, Linda J. Campbell Escrow officer L17- w err itie y Insurance & ration 1992 ALTA Loan Policy NATIONAL BEADQt;ARTERS RICHMOKA VIRGINIA Loan Policy Number 135.01. 931-411 SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, LAWYERS TITLE INSURANCE CORPORATION, a Virginia corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A. against loss or damage, not exceeding the Amount of Insurance stated in Schedule A. sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; : ,2. Any defect in or lien or encumbrance on the title; .3. Unmarketability of the title; 4.' Lack of a right of access to and from the land; 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; 6. The priority of any lien or encumbrance over the lien of the insured mortgage; 7. Lack of priority of the lien of the insured mortgage over any statutory lien for services, labor or material: (a) arising from an improvement or work related to the land which is contracted for or commenced prior to Date of Policy; or (b) arising from an improvement or work related to the land which is contracted for or commenced subsequent to Date of Policy and which is financed in whole or in pan by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance; & The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule A. or the failure of the assignment shown in Schedule A to vest title to the insured mortgage in the named insured assignee free and clear of all liens_ The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage as insured, but only to the extent provided in the Conditions and Stipulations. EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys fees or expenses which arise by reason of: 1. (a) (b} Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use or enjoyment of the land. (ii) the character, dimensions or location of any improvement now or hereafter erected on the land. (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of arty violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. Any governmental police powier not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects. liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material); or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Uncnforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or arty consumer credit protection or truth in lending law. 6. Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the Iicn of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency or similar creditors rights laws, that is based on: (a) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (b) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (c) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except when: the preferential transfer results from the failure: (i) to timely record the instrument of transfer; or (ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. Micy 135 • Linn in U.S.A. 061-0•135-0OD6 Cocer Shea ALTA Loan Fk5licy (1417.4:) CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The following terms when used in this policy mean. The insured shall notify the Company promptly in writing (i) in case of (a) "insured" the insured named in Schedule A. The term "insured" any litigation as set forth in Section 4(a) below, (ii) in case knowledge shall also includes come to an insured hereunder of any claim of title or interest which is adverse (i) the owner of the indebtedness secured by the insured mortgage to the title to the estate or interest or the lien of the insured mortgage, as in - and each successor in ownership of the indebtedness except a successor sured, and which might cause loss or damage for which the Company may who is an obligor under the provisions of Section 12(c) of these Conditions be liable by virtue of this policy, or (iii) if title to the estate or interest or the and Stipulations (reserving, however, all rights and defenses as to any suc- lien of the insured mortgage, as insured, is rejected as unmarketable. If prompt cessor that the Company would have had against any predecessor insured, notice shall not be given to the Company, then as to the insured all liability unless the successor acquired the indebtedness as a purchaser for value of the Company shall terminate with regard to the matter or matters for which without knowledge of the asserted defect, lien, encumbrance, adverse claim prompt notice is required; provided, however, that failure to notify the Com- or other matter insured against by this policy as affecting title to the estate pany shall in no case prejudice the rights of any insured under this policy or interest in the land); unless the Company shall be prejudiced by the failure and then only to the (ii) any governmental agency or governmental instrumentality which extent of the prejudice. is an insurer or guarantor under an insurance contract or guaranty insuring 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED or guaranteeing the indebtedness secured by the insured mortgage, or any CLAIMANT TO COOPERATE. part thereof, whether named as an insured herein or not; (a) Upon written request by the insured and subject to the options (iii) the parties designated in Section 2(a) of these Conditions and contained in Section 6 of these Conditions and Stipulations, the Company, Stipulations. (b) "insured claimant": an insured claiming loss or damage, "knowledge" at its own costand without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to (c) or "known": actual knowledge, not constructive the title or interest as insured, but only as to those stated causes of action knowledge or notice which may be imputed to an insured by reason of the alleging a defect, lien or encumbrance or other matter insured against by public records as defined in this policy or any other records which impart this policy. The Company shall have the right to select counsel of its choice constructive notice of matters affecting the land. (d) "land": the land described or referred to in Schedule A, and (subject to the right of the insured to object for reasonable cause) to repre- sent the insured as to those stated causes of action and shall not be liable improvements affixed thereto which by law constitute real property. The term "land" for and will not pay the fees of any other counsel. The Company will not pay does not include any property beyond the lines of the area described any fees, costs or expenses incurred by the insured in the defense of those or referred to in Schedule A, nor any right, title, interest, estate or easement causes of action which allege matters not insured against by this policy. in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing (b) The Company shall have the right, at its own cost, to institute and herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. prosecute any action or proceeding or to do any other act which in its opinion (e) "mortgage": mortgage, deed of trust, trust deed, or other security may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured, or to prevent or reduce loss instrument. (f) "public records": records established understate statutes at Date of or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect shall not thereby concede liability or waive any provision of this policy. If the to Section 1(a)(iv) of the Exclusions From Coverage, "public records" shall Company shall exercise its rights underthis paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed also include environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located. defense as required or permitted by the provisions of this policy, the Com- (g) "unmarketability of the title": an alleged or apparent matter pany may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal affecting the title to the land, not excluded or excepted from coverage, which from any adverse judgment or order would entitle a purchaser of the estate or interest described in Schedule A or the insured mortgage to be released from the obligation to purchase by d In all cases where this policy requires Companyto () p co virtue of a contractual condition requiring the delivery of marketable title. or provide for the defense any action any action or proceeding, the insured orproceeding, red shall I 2. CONTINUATION OF INSURANCE. s i shall secure to the Company the right to so prosecute or provide defense (a) After Acquisition Title. The coverage of this policy shall continue in the action or proceeding, and all appeals therein, and permit the Com- pany to use, at its option, the name of the insured for this purpose. Whenever in force as of Date of Policy in favor of (i) an insured who acquires all or any part of the estate or interest in the land by foreclosure, trustee's sale, con- requested by the Company, the insured, at the Company's expense, shall veyance in lieu of foreclosure, or other legal manner which discharges the give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or pro - lien of the insured mortgage; (ii) atransferee of the estate or interest so acquired ceeding, or effecting settlement, and (ii) in any other lawful act which in the from an insured corporation, provided the transferee is the parent or wholly- opinion of the Company may be necessary or desirable to establish the title owned subsidiary of the insured corporation, and their corporate successors to the estate or interest or the lien of the insured mortgage, as insured. If the by operation of law and not by purchase, subject to any rights or defenses Company is prejudiced by the failure of the insured to furnish the required the Company may have against any predecessor insureds; and (iii) any govern- cooperation, the Company's obligations to the insured under the policy shall mental agency or governmental instrumentality which acquires all or any part terminate, including any liability or obligation to defend, prosecute, or con - of the estate or interest pursuant to a contract of insurance or guaranty insur- tinue any litigation, with regard to the matter or matters requiring such ing or guaranteeing the indebtedness secured by the insured mortgage. cooperation. (b) After Conveyance of Title. The coverage of this policy shall continue 5. PROOF OF LOSS OR DAMAGE. in force as of Date of Policy in favor of an insured only so long as the insured In addition to and after the notices required under Section 3 of these Con - retains an estate or interest in the land, or holds an indebtedness secured ditions and Stipulations have been provided the Company, a proof of loss by a purchase money mortgage given by a purchaser from the insured, or or damage signed and sworn to by the insured claimant shall be furnished only so long as the insured shall have liability by reason of covenants of war- to the Company within 90 days after the insured claimant shall ascertain the ranty made by the insured in any transfer or conveyance of the estate or in- facts giving rise to the loss or damage. The proof of loss or damage shall terest. This policy shall not continue in force in favor of any purchaser from describe the defect in, or lien or encumbrance on the title, or other matter the insured of either (i) an estate or interest in the land, or (ii) an indebtedness insured against by this policy which constitutes the basis of loss or damage secured by a purchase money mortgage given to the insured. and shall state, to the extent possible, the basis of calculating the amount (c) Amount of Insurance. The amount of insurance after the acquisition of the loss or damage. If the Company is prejudiced by the failure of the in - or after the conveyance shall in neither event exceed the least of: sured claimant to provide the required proof of loss or damage, the Com- (i) the Amount of Insurance stated in Schedule A; pany's obligations to the insured under the policy shall terminate, including (n) the amount of the principal of the indebtedness secured by the any liability or obligation to defend, prosecute, or continue any litigation, with insured mortgage as of Date of Policy, interest thereon, expenses of foreclosure, regard to the matter or matters requiring such proof of loss or damage. amounts advanced pursuant to the insured mortgage to assure compliance In addition, the insured claimant may reasonably be required to submit with laws or to protect the lien of the insured mortgage prior to the time of to examination under oath by any authorized representative of the Company acquisition of the estate or interest in the land and secured thereby and and shall produce for examination, inspection and copying, at such reasonable reasonable amounts expended to prevent deterioration of improvements, but times and places as may be designated by any authorized representative reduced by the amount of all payments made; or of the Company, all records, books, ledgers, checks, correspondence and (iii) the amount paid by any governmental agency or governmental memoranda, whether bearing a date before or after Date of Policy, which instrumentality, if the agency or instrumentality is the insured claimant, in the reasonably pertain to the loss or damage. Further, if requested by any author - acquisition of the estate or interest in satisfaction of its insurance contract or ized representative of thgX'Rmpany, the insured claimant shall grant its per - guaranty. m+ssion, in writing, for authorized representative of the Company to �� / continued on next page of COsr sheet CONDITIONS AND STIPULATIONS—CONTINUEn examine, inspect and copy all records, bor edgers, checks, cor- • .8. LIMITATION OF ILITY. respondence and memoranda in the custody or c, of of a third party, which (a) If the Compare, ,cablishes the title, or removes the alleged defect reasonably pertain to the loss or damage All information designated as con- lien or encumbrance, or cures the lack of a right of access to or f rom the land fidential by the insured claimant provided to the Company pursuant to this or cures the claim of unmarketability of title or otherwise establishes the Ien Section shall not be disclosed to others unless, in the reasonable judgment of the insured mortgage, all as insured, in a reasonably diligent manner by of the Company, it is necessary in the administration of the claim Failure of any method, including litigation and the completion of any appeals therefrom, the insured claimant to submit for examination under oath, produce other it shall have fully performed its obligations with respect to that matter and reasonably requested information or grant permission to secure reasonably shall not be liable for any loss or damage caused thereby necessary information from third parties as required in this paragraph, unless (b) In the event of any litigation, including litigation by the Company prohibited by law or governmental regulation, shall terminate any liability of or with the Company's consent, the Company shall have no liability for loss the Company under this policy as to that claim or damage until there has been a final determination by a court of competent 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; jurisdiction, and disposition of all appeals therefrom, adverse to the title or TERMINATION OF LIABILITY. to the lien of the insured mortgage, as insured In case of a claim under this policy, the Company shall have the follow- (c) The Company shall not be liable for joss or damage to any insured ing additional options (a) To Pay or Tender Payment of the Amount of Insurance or to for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company Purchase the Indebtedness. (i) to pay or tender payment of the amount of insurance under (d) The Company shall not be liable for (i) any indebtedness created this policy together with any costs, attorneys' fees and expenses incurred subsequent to Date of Policy except for advances made to protect the lien of the insured mortgage and secured thereby and reasonable amounts ex - by the insured claimant, which were authorized by the Company, up to the pended to prevent deterioration of improvements, or (n) construction loan time of payment or tender of payment and which the Company is obligated advances made subsequent to Date of Policy, except construction loan ad - to pay, or (u) to purchase the indebtedness secured the insured mortgage vances made subsequent to Date of Policy for the purpose of financing in for the amount owing thereon together with any costs, s, attorneys' fees and whole or in part the construction of an improvement to the land which at Date expenses incurred by the insured claimant which were authorized by the Com- of Policy were secured by the insured mortgage and which the insured was pany up to the time of purchase and which the Company is obligated to pay and continued to be obligated to advance at and after Date of Policy If the Company offers to purchase the indebtedness as herein provided, 9• REDUCTION OF INSURANCE; REDUCTION OR TERMINATION the owner of the indebtedness shall transfer, assign, and convey the in- OF LIABILITY. debtedness and the insured mortgage, together with any collateral security, (a) All payments under this policy, except payments made for costs, to the Company upon payment therefor attorneys' fees and expenses, shall reduce the amount of the insurance pro Upon the exercise by the Company of either of the options provided tanto However, any payments made prior to the acquisition of title to the estate for in paragraphs a(i) or (n), all liability and obligations to the insured under or interest as provided in Section 2(a) of these Conditions and Stipulations this policy, other than to make the payment required in those paragraphs, shall not reduce pro tanto the amount of the insurance afforded under this shall terminate, including any liability or obligation to defend, prosecute, or policy except to the extent that the payments reduce the amount of the in - continue any litigation, and the policy shall be surrendered to the Company debtedness secured by the insured mortgage for cancellation (b) Payment in part by any person of the principal of the indebtedness, (b) To Pay or Otherwise Settle With Parties Other than the Insured or any other obligation secured by the insured mortgage, or any voluntary or With the Insured Claimant. partial satisfaction or release of the insured mortgage, to the extent of the (i) to pay or otherwise settle with other parties for or in the name payment, satisfaction or release, shall reduce the amount of insurance pro of an insured claimant any claim insured against under this policy, together tanto. The amount of insurance may thereafter be increased by accruing in - with any costs, attorneys' fees and expenses incurred by the insured clai- terest and advances made to protect the lien of the insured mortgage and mant which were authorized by the Company up to the time of payment and secured thereby, with interest thereon, provided in no event shall the amount which the Company is obligated to pay; or of insurance be greater than the Amount of Insurance stated in Schedule A (u) to pay or otherwise settle with the insured claimant the loss or (c) Payment in full by any person or the voluntary satisfaction or release damage provided for under this policy, together with any costs, attorneys' of the insured mortgage shall terminate all liability of the Company except fees and expenses incurred by the insured claimant which were authorized as provided in Section 2(a) of these Conditions and Stipulations bytheCompanyuptothetimeofpayment and whichtheCompanyisobltgated 10. LIABILITY NONCUMULATIVE. to pay. If the insured acquires title to the estate or interest in satisfaction of the Upon the exercise by the Company of either of the options provided indebtedness secured by the insured mortgage, or any part thereof, it is for in paragraphs b(i) or (u), the Company's obligations to the insured under expressly understood that the amount of insurance under this policy shall this policy for the claimed loss or damage, other than the payments required be reduced by any amount the Company may pay under any policy insuring to be made, shall terminate, including any liability or obligation to defend, a mortgage to which exception is taken in Schedule B or to which the insured prosecute or continue any litigation. has agreed, assumed, or taken subject, of which is hereafter executed by 7. DETERMINATION AND EXTENT OF LIABILITY. an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a pay - This policy is a contract of indemnity against actual monetary loss or ment under this policy. damage sustained or incurred by the insured claimant who has suffered loss 11. PAYMENT OF LOSS. or damage by reason of matters insured against by this policy and only to the extent herein described (a) No payment shall be made without producing this policy for endorse - (a) The liability of the Company under this policy shall not exceed the ment of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the least of (i) the Amount of Insurance stated in Schedule A, or, if applicable, Company. (b) When liability and the extent of loss or damage has been definitely the amount of insurance as defined in Section 2 (c) of these Conditions and fixed in accordance with these Conditions and Stipulations, the loss or damage Stipulations, shall be payable within 30 days thereafter. (n) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Condi- 12. SUBROGATION UPON PAYMENT OR SETTLEMENT. tions and Stipulations or as reduced under Section 9 of these Conditions and a) The Subrogation. W The Company's Right shall Whenever the Company shall have settled and paid a claim under this Stipulations, at the time the loss or damage insured against by this policy policy, all right of subrogation shall vest in the Company unaffected by any occurs, together with interest thereon; or act of the insured claimant (ni) the difference between the value of the insured estate or The Company shall to and be entitled to all rights and subject to interest as insured and the value of the insured estate or interest sub j remedies which the insured claimant would have had against any person ed claimant the defect, lien or encumbrance insured against by this policy or property in respect to the claim had this policy not been issued Ifrequested (b) In the event the insured has acquired the estate or interest in the by the Company, the insured claimant shall transfer to the Company all rights manner described in Section 2(a) of these Conditions and Stipulations or has and remedies against any person or property necessary in order to perfect conveyed the title, then the liability of the Company shall continue as set forth this right of subrogation The insured claimant shall permit the Company to in Section 7(a) of these Conditions and Stipulations sue, compromise or settle to the name of the insured claimant and to use (c) The Company will pay only those costs, attorneys' fees and expenses the name of the insured claimant in any transaction or litigation involving these incurred in accordance with Section 4 of these Conditions and Stipulations rights or remedies If a payment on account of a claim does not fully cover the loss of the continued on remainder of cover sheet CONDITIONS AND STIPULATIONS —CONTINUED en:;ured claimant, the Company shall be subrogated to all rghtsand remedies or less shall be arbitrated at the option ol. either the Company or the insured of :he insured claimant after the insured claimant shall have recovered its prin- All arbitrable matters when the Amount of Insurance is in excess of S 1,000.000 ctpal, interest, and costs of collection. shall be arbitrated only when agreed to by both the Company and the n- (b) The Insured's Rights and Limitations. sured. Arbitration pursuant to this poky and under the Rules in effect on the Notwithstanding the foregoing, the owner of the indebtedness secured date the demand for arbitration is made or, at the option of the insured, the by the insured mortgage, provided the priority of the lien of the insured mor- Rules in effect at Dale of Policy shall be binding upon the parties. The award tg.ige or its enforceability is not affected, may release or substitute the per- may include attorneys' fees only if the taws of the state in which the land is so-ial liability of any debtor or guarantor, or extend or otherwise modify the located permit a court to award attorneys' fees to a prevailing party. Judg. leans of payment. or release a portion of the estate or interest from the lien menl upon the award rendered by the Arbitrator(s) may be entered in any of, he insured mortgage, or release any collateral security for the indebtedness. court having jurisdiction thereof. When the permuted acts of the insured claimant occur and the insured The taw of the situs of the land shall apply to an arbitration under the has knowledge of any claim of tale or interest adverse to the title to the estate Title Insurance Arbitration Rules. or interest or the priority or enforceability of the lien of the insured mortgage, A copy of the Rules may be obtained from the Company upon request. as insured, the Company shall be required to pay only that part of any losses 14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. in! ured against by this policy which shall exceed the amount, if any, lost to (a) This policy together with all endorsements, it any, attached hereto the Company by reason of the impairment by the insured claimant of the Com- by the Company is the entire policy and contract between the insured and pany's right of subrogation. the Company. In interpreting any provision of this policy, this policy shalt be (c) The Company's Rights Against Non-insured Obligors. construed as a whole. The Company's right of subrogation against non-insured obligors shall (b) Any claim of loss or damage, whether or not based on negligence, ex st and shall include, without limitation, the rights of the insured to indem- and which arises out of the status of the lien of the insured mortgage or of nit es, guaranties, other policies of insurance or bonds, notwithstanding any the title to the estate or interest covered hereby or by arry action asserting ter -ns or conditions contained in those instruments which provide for subroga- such claim, shall be restricted to this policy. do i rights by reason of this policy. (c) No amendment of or endorsement to this policy can be made ex - The Company's right of subrogation shall not be avoided by acquisition cept by a writing endorsed hereon or attached hereto signed by either the of :he insured mortgage by an obligor (except an obligor described in Sec- President, a Vice President, the Secretary, an Assistant Secretary, or validating do i 1(a)(ii) of these Conditions and Stipulations) who acquires the insured officer or authorized signatory of the Company. mortgage as a result of an indemnity, guarantee, other policy of insurance, 15, SEVERABILITY. or 3ond and the obligor will not be an insured under this policy, notwithstan- dir g Section 1(a)(ii) of these Conditions and Stipulations. 1n the event any provision o1 this policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provi- la ARBITRATION sion and all other provisions shall remain in full force and effect. Unless prohibited by applicable law, either the Company or the insured I& NOTICES. WHERE SENT. ms y demand arbitration pursuant to the Title Insurance Arbitration Rules of All notices required to be given the Company and any statement in writing the American Arbitration Association. Arbitrable matters may include, but are required to be furnished the Company shag include the number of this policy no• limited to, any controversy or claim between the Company and the in- and shall be addressed to the Company at its Corporate Headquarters sued arising out of or relating to this policy, any service of the Company in 6630 West Broad Street, Richmond. Virginia 23230L Mailing Address: PQ connectionwith As issuance or the breach of a policy provision or other obliga- Box 27567, Richmond Virginia 23261, or to the Company at its Pacific States tblt. All arbitrable matters when the Amount of Insurance is $1,000.000 Office, 10 Universal City Plaza, 23rd Floor, Universal City, CA 9160a IN WITNESS WHEREOF, the Company has caused this policy to be signed and sealed, to be valid when countersigned by an authorized officer or agent of the Company, all in accordance with its By -Laws. Attest: / Secretary Cou ter�1 signed byi Authorized Officer or Agent wsi wSUP144" Law)rrsTidejnsurance CorporationN. # �" By: r(� President POLICY OF TITLE INSURANCE A WORD OF THANKS... As we make your polity a part of our permanent records, we want to express our appreciation of this evidence of your faith in Lawyers Title Insurance Corporation. There is no recurring premium. This policy provides valuable title protection and we suggest you keep it in a safe place where it will be readily available for future reference. If you have any questions about the protection provided by this polity, contact the office that issued your policy or you may write to: Consumer Affairs Department LawyvrsTideInsurance Go poration P.O. Box 27567 Richmond, Virginia 23261 ICE U LAWMZ TITLE GOWANY A Subsidiary of Lawyers Title Insurance Corporation 18551 Von Karman Aver, Suite 100, Irvine, CA 92612 Telephone (714) 223-5575 08/05/97 Redevelopment Agency of the City of Huntington Beach 2000 Main St Huntington Beach, CA Attn: Agency Clerk our No.: 9402217-04 Re: Fomhione Dear Sir/Madam: Enclosed please find our policy of title insurance issued per your Est. Triank you for using Lawyers Title Owpany. very tn Y Yam,, Lawyers Title CaTpany Subsidiary of Lawyers Title insurance Corporation LAWYERS L;ITLE I'NSU•RANCE URPORATION Natimal HmdWarters Ridnaond, Virginia AMERICAN LAND TITLE ASSOCIATION LOAN POLICY 1992 Issued At: Lawyers Title Caq3any 18551 Van Karntian, Suite 100, Irvine, California 92612 SCMEUXE A ------------------------------------------------------------------------------------------------ ORDER POLICY AMO= OF PRII+II N DATE OF POLICY NUMBER NUMBER INSURANCE ------------------------------------------------------------------------------------------------ 9402217-B 135-01-931-411 $35,000.00 $150.00 07/31/97 at 4:05 pm 1. NAME OF INSURED: Redevelopment Agency of the City of Huntington Beach, a public body corporate and politic 2. THE ESTATE OR IM17ZEST IN THE LAID WHICH IS COVERED BY THE IN= MZrGAGE IS: A CONDCMINIUM, as defined in Section 783 of the California Civil Code, in fee 3. TITLE TO THE ESTATE OR IME REST IN THE LAND IS VESTED IN: Richard Forchtore. and Debra L. Forchiane, husband and wife as joint tenants 4. THE INSURED M=AM AND AS,SIQNMNPS THEREOF, IF ANY, ARE DESCRIBED AS FOLU3C'. A Deed of Trust to secure an indebtedness in the amount shmm below, and any other obligations secured thereby Amount: S35,000.00 Dated: July 25, 1997 Trustor: Richard Forchicne and Debra L. Forchicne, husband and wife as joint tenants Trustee: The City of Huntington Beach, a mu-uicipal corporation Beneficiary: Redevelopment Agency of the City of Huntington Beach, a public body corporate and politic Recorded: July 31, 1997 Instrurent No. 19970365359 of Official Records ALTL)LOAN POL-ICY-1991-1.) Policy No.:135-01-931-411 Order No.: 9402217-B SCIHEDJI.E A CONTINUED 5. THE LAND RIIRiR® 70 IN THIS POLICY IS DES RIMED AS FOLLOWS: In the County of Orange State of California, A Condominium co,irrised of: PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in cmum in and to all of the Common Area defined in Declaration referred to below and described in the Cor4c minium Plan ( "Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of Official Records of Orange County, over Lot 1 of Tract No. 14828, in the City of Huntington Beach, County of Orange, State of California, as per map filed in Book 706, Pagers 27 to 29 of Miscellaneous Maps, in the office of the County Punier of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: Unit No. 17 consisting of certain airspace and surface elements, as shown and des:=ibed in the Condominium Plan referred to in Parcel 1 above. PARCEL 3: Nan -exclusive easements for access, ingress, egress, use, enjoyment, drainage, vx=oadwient, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of Covenants, Coalitions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. PARCEL 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and assigned on the Plan. ALTQLOAN POLICY-19-.� POLICY NO.:135-01-931-411 ORDER ND.: 9402217-B SCHEDULE B PART I F39CEPTIONS FROM COVERAGE •� •� a. ti� r r �cti i rr n r of r• • A. Property taxes, including general and special taxes, personal ply taxes, if any, and any tents collected with taxes, to be levied for the fiscal year 1997-1998 which are a lien rx:t yet payable. B. Supplemental or escaped assessments of property taxes, if any, assessed pursuant to the Raverue and Taxation Code of the State of Califarnia. 1. The matters contained in a document entitled "Wrrrorand= of Disposition and Development Agreement" recorded January 3, 1994 as instrument No. 94-0001007 of Official Records. Reference is made to said doc a mPnt for full particulars. 2. The fact that the ownership of said land does not include rights of access to or from the street or highway abutting said land, such rights having been relinquished by the map of said tract. Affects: Talbert Avenue; Joyful Lane and Happy Drive Except at street intersections and approved driveway locations. 3. Covenants, coalitia-Ls and restrictions as set forth in the document Recorded: February 24, 1994 Instrument No. 84-0137068 of Official Records NOTE: This exception omits any covenant, condition or restriction based on race, color, religion, sex, handicap, familial status or national origin, unless and only to the extent that the covenant, oordition or restriction (a) is not in violation of state or federal law, (b) is exempt under 42 U.S.C. Section 3607 or (c) relates to a handicap but does not discriminate against handicapped people. 4. A declaration of covenants, conditions and restrictions (deleting therefrom any restrictions based an race, color or creed) which, among other things, may contain or provide for: easements; liens and the subordination thereof; and restrictions on partition and severability of component interests. Recorded: August 25, 1994 Instrument No. 94-052-9336 of Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. ALTA LOAN POLICY - 199(2) ORDER NO.: 9402217-B 5. The matters contained in a doamPslt entitled "Conwn Facilities Use and Maintenanoe Agreement For Pacific Park Villas" recorded August 25, 1994 as Instrument No. 94-0525337 of Official Records. Raferenee is made to said document for full particulars. 6. An ea_sent for the purpose shown below and rights incidental thereto as set forth in a document Granted to: Southern California Edison Oompany Purpose: public utilities Receded: October 27, 1994 Insert No. 94-0632840 of Official Records Affects: the Southerly 50 feet of the Easterly 4 feet of Lot 1 7. A Deed of Trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount: $131,250.00 Dated: July 23, 1997 Trvstor: Richard Forchicne and Debra L. Forrhione, husband and wife as joint tenants Trustee: T.D. Service Beneficiary: Marina Mortgage Corry, Inc., a California corporation Recorded: July 31, 1997 Instrument No. 19970365358 of Official Records The following tents are attached to and made a part of this policy: 100 110.9 115 116.2 tb Date typed: 08/05/97 Plats enclosed ALTA LOAN POLICY - 1 9 9 2 POLICY NO.: 135-01-931-411 ORDER NO.: 9402217-B PART II IN ADDITION TO THE MATTERS SET FORTH IN PART I OF THIS SCHEDULE, THE TITLE TO THE ESTATE OR INTEREST IN THE LAND DESCRIBED OR REFERRED TO IN SCIlEDULE A IS SUBJECT TO THE FOLLOWING MATTERS, IF ANY BE SHOWN, BUT THE COMPANY INSURES THAT THESE MATTERS ARE SUBORDINATE TO THE LIEN OR (LARGE OF THE INSURED MORTGAGE UPON THE ESTATE OR INTEREST: U ENDORSEMENT U }•ti -� I 'ZOL&MOr• . *' . CLTA Fit 100 Order No.: 9402217-B Attached to Policy No.: 135-01-931-411 The Company hereby insures against loss which said Insured shall sustain by reason of any of the following matters: 1. Any irmirzBcbriess in the ass<urarre which the CaTi any hereby gives: a. That there are no covenants, aonditians, or restrictions under which the lien of the mortgage referred to in Schedule A can be cut off, subordinated, or otherwise Impaired; b. That there are no present violations on the land of any enforceable covenants, conditions, or restrictions; e. That, except as shown in Schedule B, there are no encroachments of buildings, structures, or inprovements located on the lam onto adjoining lands, nor any encroachments onto the land of buildings, structures, or improvements located on adjoining lands. 2. a. Any future violations on the land of any covenants, conditions, or re- strictions occurring prior to acquisition of title to the estate or interest referred to in Schedule A by the Insured, provided such violations result in impairment or loss of the lien of the mortgage referred to in Schedule A, or result in impairment or loss of the title to the estate or interest referred to in Schedule A if the Insured shall acquire such title in satisfaction of the indebtedness secured by the inspired mortgage; b. Unmarketability of the title to the estate or interest referred to in Schedule A by reason of any violations on the land, c wing prior to acquisition of title to the estate or interest referred to in Schedule A by the insured, of any covenants, conditions or restrictions. 3. Damage to existing improvements, including lawns, shrubbery or trees a. which are located or encroach upon that portion of the land subject to any easement shown in ScNxdule B, which damage results fran the exercise of the right to use or maintain such easement for the purposes for which the same was granted or reserved. b. resulting from the exercise of arty right to use the surface of the land for the extraction or developTient of the minerals excepted fran the description of the land or shown as a reservation in Schedule B. 4. Any final court order or judgment requir xj the removal from any land adjoining the land of any encroachment shown in Schedule B. Vk*xever in this endorsement any or all the wards "covenants, conditions, or restrictions" appear, they shall not be deaned to refer to or include the terms, covenants ocrxUtions or restrictions contained in any lease. Page 1 of 2 �� CLTA FORM 100 (wont'd) Attached to Policy No.: 135-01-931-411 Order No.: 9402217-8 For purposes of this anent, the words "covenants", "conditions" or "restrictions" shall not be d0emed to refer to or include any covenants, conditions or restrictions relating to environmental protection, except to the extent that a notice of a violation or alleged violataion affecting tha land has been recorded in the public records at Date of Policy and is not excepted in Sdhedule B. This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prig its thereto. Ems pt to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thannof. IN WITNESS WHEREOF, the Company has caused this Endorsement to be signed and sealed, as of the date set forth below, to be valid when oountersigned by an authorized officer or agent of the Company, all in accordance with its By -Laws. Date: July 31, 1997 Issued at: Irvine, California Couna e igned: C�SYtQr �- Authorized Officer or Agent Page 2 of 2 Janet A. Alpert - President John M. Carter - Secretary V U ENDORSEMENT LAWYERS TITLE INSUPANCE OORPORATICN CLTA Fri 110.9 Order No.: 9402217-B Attached to Policy No.: 135-01-931-411 The insurance afforded by this endorsement is only effective if the land is used or is to be used primarily for residential purposes. The Company insures the iroured against loss or damage sustained by reason of lack of priority of the lien of the insured mortgage over: (a) any environmental protection lien which, at Date of Policy is recorded in those records established under state statutes at Date of Policy for the purpose of Imparting constructive notice of matters relating to real property to purchasers for value and without knowledge, or filed in the records of the clerk of the United States District Court for the district in which the land is located, except as set forth in Schedule B; or (b) any environmental protection lien provided for by any state statute in effect at Date of Policy, except environmental protection liens provided for in the following state statutes: NONE This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof, and of any prig endorsements thereto. kept to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof. IN WITNESS WHEREOF, the Company has caused this Endorsmmnt to be signed and sealed as of the date set forth below, to be valid when countersigned by an authorized officer or agent of the Company, all in accordance with its By -Laws. Date: 07/31/97 Issued at: Irvine, California Countersigned by: a ♦ � Authorized Officer or Agent Janet A. Alpert - President Jain M. Carter - Secretary ENDORSEMENT CLTA FBI 115 Order No.: 9402217-B Attached to Policy No.: 135-01-931-411 The Oaraany assure, the Insured that the estate or interest described in Schedule A is a condaninium as defined in Section 783 of the California Civil Code, in fee, and as such is entitled to be assessed and taxed as a separate parcel. The Crnpany hereby insures the insured against loss which the insured shall sustain in the event that the assurances herein shall prove to be incorrect. This er4orsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorsements, nor does it increase the face amount thereof. IN WITNESS WFiE MF, the Capany has caused this errlorsesnPnt to be signed and sealed as of the date set forth below, to be valid when countersigned by an authorized officer or agent of the Canpany all in a000rdarme with its By -Laws. Date: 07/31/97 Qxmtersigned by: &M. .c , P� Ak,," Issued at: Irvine, California Janet A. Alpert - President Jot= M. Carter - Secretary ENDORSEMENT LAWYERS TITLE INSURANCE CORPO CATION CLTA FORM 116.2 Order No.: 9402217-B Attached to Policy No.: 135-01-931-411 The Canlaany assures the Insured that at the date of this Policy the dimensions of the exterior boundary of the Cannon Area referred to in Schedule A of this Policy which is also the exterior boundary of the project, are correctly shown on that map recorded in book 706, pages 27 to 29 of Maps in the office of the Carty Recorder of Orange Cotmty. The Canpany further assures the Insured that the estate or interest referred to in Schedule A includes a residence within the project boundaries, which residence is designated as Unit 17, as shown on the map recorded August 25, 1994 as Instrument No. 94-0525335, Official Records in the office of the County Recorder of Orange County, and known as: 18051 Joyful Lane #; 201 Huntington Beach, California The Con)any hest insures the Insured against loss which the insured shall sustain In the event that the assurance ]herein shall prove to be incorrect. This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior erd rsenents thereto. Except to the extent expressly stated, it neither modifies any of the term, and provisiocis Of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior endorswents, nor does it i n=easP the face amount thereof. IN WITNESS WHEREOF, the Company has caused this endorsement to be signed and sealed as of the date set forth below, to be valid when countersigned by an authorized officer or agent of the Ccanpany all in accordance with its By -Laws. Date: 07/31/97 Issued at: Irvine, California Countersigned by: Auth=ized Offices or Agent Janet A. Alpert - President John M. Cartes' - Secretary CONDOMINIUM PLANS FOR SHEET 10 OF 32 LOT I OF TRACT 14a2a. IN THE CITY OF HUNTINGTON BEACH. COUNTY OF ORANGE. STATE OF CALIFORNIA. AS SHOWN ON A MAP RECORDED IN MAP BOOK 706. PACES 27 THROUCH 29. INCLUSIVE. OF MISCELVANEOUS MAPS, TH THE aFICE OF THE RECORDER OF SAID COUNTY. PHASE ONE OF PACIFIC PARK \ALLAS CURVE DATA CURVE DELTA RADIUS LENGTH TANCENT ! 1S'3330' 327.00' 88.80' 44.67' 2 1534'28' 273.00' 74.21' 37.33' 3 8955210' 0' 23.008' 36. 22.95' 4 05'Sz'3a' 327.00' 3154' 16.7a' 5 15'34'13' 300.00' 81.53' 41.02' 6 15'33'30' 300.00' 81.46' 40.98' 05'31'01' 327.00' 48.61' 24.35' 09'40'54' 327.00' 53.26' 27.69' MONUMENT NOTES 1. • INDICATES FOUND MONUMENTS AS NOTED 2. ■ INDICATES FOUND SPIKE AND WASHER NO TAG, NO REF. HELD TO ESTABLISH THE CENTERUNES OF JOLLY LANE. HAPPY DRIVE. AND JOYFUL LANE REPLACED 1HTH SPucE AND WASHER TACCEO L.S. 5749. 3. 0 INDICATES 2' IP TACi,ED L.S. 5749 OR SPIKE AND WASHER TACO ED L.S. 5749 OR LEAD AND TACK TAGGEO L.S- 5749 TO BE SET BEFORE THE RECORDAT30N OF THIS MAP. 4, n INDIcATr-S a' SPIKE 4k wASHr- --.. --- . - -- - -- -- --- WITHIN 90 DAYS AFTER ACCE CONDOMINIUM PLANS FOR SHEET TT OF 32 LOT T OF TRACT ;4828. IN THE CITY OF HUATINGTON BEACH. COUNTY OF ORANGE. STATE OF CALIFORNIA. AS SHOWN ON A YAP RECORDED IN YAP ROOK 706. PACES 27 THROUCH 29. INCLVVVE. OF YtSC:LLANEOUS MAPS. IN THE OFF►CC OF THE RECORDER OF SAID COUNTY. PHASE ONE OF PACIFIC PARK VILLAS i r22 8 zo i9 117 >s 6CTr�a+ urars S 89 40.27" E 9 11 12 13 14 10 15 0 M34 5 6 Wti 2 7.rr7. 8 r=zr 60.4123.00• S7.64' SCALE: 1 "= 40' LOW01 NAWR 60C M'S LOWA urn wt. HOCA NNM .OuaS wcR UN00. w.t ASSOCIATION PROPERTY, �`ra "►� U`n ALCM "SA " r, U N I' i NUMBERS & TIES ASSOMM" rRonarr `lawcs %"13 9401K JOB NO. 4285 HALL do FOREMAN. INC. TIEMPO ESCROW, INC. 19093 Beach Blvd. Ht ntington Beach, CA 92648 U CITY OF MMINGTCN BEACH ESCROW TRUST RECEIPT 10225-C 12403 �E 7/25/97 FIM AND IAD/100 - - - - - - - - - DOLLARS S 35 -- ICHECK It I and CASH CASHIERS CHECK CHECK ?� 35.000.00 S i ABA Of 16-49 CHECKING ACCOUNT NO 2740013419 RECEIVED AFTER HOURS ❑ r ' LDM J. ELL 3• 8 ISFY76MSE:e1all INC 07=23-97 224928 10225-C FA , CITY OF HUNTINGTON BEACH P.O. BOX 190 KMTMOTON BEACH. CALIFORNIA 92"8 ETXED923775 35000.00 35000.00 35000.00 .00 35000.00 CITY OF HUNTINGTON BEACH 164911220 � GENERALACCOUNTP.O. BOX 190 NUMBER HUNTINGTON BEACH, CALIFORNIA 92W 439824 PAY TO THE ORDER OF DATE 1VUWMA NETAMOUNT TI€MPO-ESCRDW INC: 071!:123-97, 439824$***35000.00 19093 BEACH.8L HUNTINGTON' BEACH ' CA " 92548 CITY OF HUNTINGTON BEACH VOID UNLESS PRESENTED FOR ENCASHMENT WITHIN 90 DAYS FROM DATE OF ISSUE UNION BANK OF CALIFORNIA 17122 BEACH BLVD. HUNTINGTON BEACH. CA 92647 401,3982440 1: 12 20004961: 27400134 19ul �, �•• CITY OF HUNTINGTON IZ71i 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK July 25, 1997 Gary L. Granville, County Clerk -Recorder P. O. Box 238 Santa Ana, CA 92702 Enclosed please find Deed of Trust With Assignment Of Rents and Declaration Of Conditions, Covenants and Restrictions For Property to be recorded and returned to the City of Huntington Beach, Office of the City Clerk, 2000 Main Street, Huntington Beach, CA 92648. Please conform the enclosed copies of the documents and return to this office in the enclosed self-addressed stamped envelope. dwv W J�p Connie Brockway, CMC City Clerk Enclosures: Deed Of Trust With Assignment Of Rents Declaration Of Conditions, Covenants and Restrictions For Property G:VcITo%%upldccdltr:Richard Forchionc (Telephone: 714.536-5227 )