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HomeMy WebLinkAboutKORMELUK, NICHOLAS M. - 1993-12-29CITY OF HUNTINGTON BEACH: Inter -Office Communication- . Economic Development Department TO: John Reekstin, Director of Administrative Services FROM: Gus'Duran, Housing and Redevelopment Manage DATE: October 18, 1999 SUBJECT: Nicholas M. Kormeluk — Loan No. DPA 93-09 .,.t.. 7-4 Please be informed that the loan to Nicholas M. Kormeluk has been deemed a forgiveable loan as per the note and deed of trust and the program guidelines adopted by the City Council. The determination that the loan is forgiveable has been made by the City , Attorney's Office (Memo of June 1, 1999 from Gail Hutton). Correspondingly this loan is now being processed for reconveyance. You may deem it necessary to remove it from the accounting books as a receivable and/or an asset. The loan was originally made utilizing CDBG funds. If you have any questions please feel free to contact me at Ext. 1529. Cc: Robert Sedlack Noi Nguyen CITY OF HUNTINGTON BEACH Inter -Office Communication Economic Development Department DATE: May 4, 2000 TO: Gail Hutton, City Attorney FROM: David Biggs, Director Economic Development SUBJECT: Research on Loan Forgiveness, I" Time Home -Buyers Program 1st $100,000 We 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 1st $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 1" 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 12/20/1993, 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 1/3/1994, meeting, City Council approved three more applicants (Young, Love and Ommondson), totaling $31,000. GljoycdIntermemo Reconvey.doc • The total amount of actual funded loans for the original I" 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 Groyce/Wermemo Recoovey.doc CITY OF HUNTINGTON BEACH Inter -Office Communication Economic Development Department DATE: June 20, 2000 TO: Scott Field, Assistant City Attorney FROM: Gus Duran, Economic Development SUBJECT: First Time Homeowner Loan Program; City of Huntington Beach v. Kormuluk Based on the finding of the Kortnuluk down payment assistance through the City's First Time Homeowner Down Payment Assistance Loan Program, the City developed the attached form and cover letter to ascertain that all future loan payoffs and loan forgiveness shall ensure compliance with the terms of the promissory note in regards to owner's principal residence. The cover letter includes a request for a copy of the most recent Southern California Edison bill to be included with the Program Compliance Questionnaire. We have implemented this procedure and based on the City Council response shall include the provision that future correspondence be mailed by certified mail. Thank you for your assistance in this matter. Cc: A16onnie Brockway, City Clerk Paul D'Alessandro, Deputy City Attorney David Biggs, Director, Economic Development Joyce de Kreek, Economic Development Steve Holtz, Development Specialist G:ljoyce/Intermemo Kormuluk.doc J� City of Huntington Beach 2000 MAIN STREET CALIFORNIA92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Director 714/536-5582 Redevelopment 714/536-5582 FAX 714/375-5087 Housing 714/536-5542 July 20, 2000 Huntington Beach, CA 9262 Subject: Property Address: Loan Number: Dear Mr. and Mrs. CERTIFIED MAIL Return Receipt Requested H.B.1. , CA DPA 9 - On , 199_, you were assisted in purchasing your home with a First Time Homebuyer Loan made to you by the Redevelopment Agency of the City of Huntington Beach. One of the provisions of this loan specified that you must reside in the home you purchased with the Agency's assistance. As part of the Agency's monitoring process the Agency has to ascertain that the person or family receiving Agency assistance is/are still in occupancy of the residence they were assisted in purchasing. This letter is to confirm your.occupancy as an owner -occupant of the above -mentioned property. Please complete the attached questionnaire and mail it back to the Economic Development in the enclosed envelope along with a cogy of your most recent Southern California Edison bill for the subiect property. Your prompt response will be appreciated. Should you have any questions, please feel free to contact me at (714) 374-1529. Sincerely, Gustavo A. Duran Housing and Redevelopment Manager G:/joyce/Letlst.Doc EconQn* Development Department 0 2000 Main Street, 5th Floor Huntington Beach, California 92648 (714) 536-8831 (714) 375-5087 fax CITY OF HUNTINGTON BEACH FIRST TIME HOMEBUYER PROGRAM PROGRAM COMPLIANCE QUESTIONNAIRE Please complete the following information. When completed return this sheet to the City of Huntington Beach, Economic Development Department. Thank you in advance for your cooperation. .�,,.-.. — CERTIFICATION: IIWe certify that the information provided in this first time homebuyer program compliance questionnaire is true and correct as of the date set forth opposite my/our signature(s) and acknowledge my/our understanding that any intentional or negligent misrepresentation(s) of the information contained in this request may result in civil liability and/or criminal penalties including, but not limited to fine or imprisonment or both and liability for monetary damages to the City, its agents, insurers, and any other person who may suffer any loss due to reliance upon any misrepresentation which I/we have made on this request. Homeowner's Signature Date Co -Owner's Signature I Date l X X Econor4k Development Department 2000 Main Street, 5th Floor Huntington Beach, California 92648 (714) 536-8831 (714) 375-5087 fax CITY OF HUNTINGTON BEACH FIRST TIME HOMEBUYER PROGRAM PROGRAM COMPLIANCE QUESTIONNAIRE Please complete the following information. When completed return this sheet to the City of Huntington Beach, Economic Development Department. Thank you in advance for your cooperation. Property address Mailing address, if different Name(s) on property title Name(s) of occupant(s) 1 - Daytime phone number Number of bedrooms CERTIFICATION: I/We certify that the information provided in this first time homebuyer program compliance questionnaire is true and correct as of the date set forth opposite my/our signature(s) and acknowledge my/our understanding that any intentional or negligent misrepresentation(s) of the information contained in this request may result in civil liability and/or criminal penalties including, but not limited to fine or imprisonment or both and liability for monetary damages to the City, its agents, insurers, and any other person who may suffer any loss due to reliance upon any misrepresentation which I/we have made on this request. Homeowner's Signature Date Co -Owner's Signature Date X X • • k o Loo, )-b CITY OF HUNTINGTON BEACH Inter -Office Communication Economic Development Department TO: Connie Brockway, City Clerk FROM: Gus Duran, Housing and Redevelopment Manager DATE: October 18, 1999 SUBJECT: Nicholas M. Kormeluk — Loan No. DPA 93-09 Please be informed that the loan to Nicholas M. Kormeluk has been deemed a forgiveable loan as per the note and deed of trust and the program guidelines adopted by the City Council. The determination that the loan is forgiveable has been made by the City Attorney's Office (Memo of June 1, 1999 from Gail Hutton). Correspondingly this Ioan is now being processed for reconveyance. If you have any questions please feel free to contact me at Ext. 1529. its CITE• O HUNIT EACH _ b '1nt&wDe0rtment'C0m iauaication.- TO: Gus Duran, Economic Develop en FROM. -Gail Hutton, 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 lows made by the City of Community Development'Bloclk Grant funds; far:the fiat time horne,biiyer.do'wn payment assistance program, are forgivable. - - ISSUE - Are the nine loans forgivable?. AN J .. -'i;�. $tip= t- ten- -Sf _ •-`3i- -sri t -'� a_- ` r' -i ,f -:F�- _-. _ .i: Yes, if they were funded with the first $100,000 appropriate(lRf i this program: ANALYSIS: . ,S -rr . --•.. her - _- - -.- As part of tlYs t9 3 94 CDBG program the„City Cound'I-'pproved $1flQ,t30(1.as apilat program r -to provide -down payment assistance io ino orate=income housi~holds. : Y We have rcvic'mi d s-6 e€ral-RCAs sul}mitted by yoiir'd - stmeriq-6 the:City council for. .impleinentaiioh. tif:this pragrain. The RCAs eve revie�ved� vere,the arigirials iii the City Clerk's t�ffice. Frkim c ur revie'W'bf these documents,.* have iievclop@.tli&folloMngchronolagy: .. • - �h -; -- . ; - -_ -r ,: 1 _ r '-- - = r'_ �pfar4l -k 1'- - 5.--, -1i0 .r -i. >, 14125193 The"'Ctty Cazzi�cil approved"sample loan documEntskand'fottr partiClpant5: Diane . ... Culaeiati, Miahelo�:Tullock,�_Osmi ii'Taban and Ca%aline Sutherland in the total amount of $40,475. ' (RCA► attached hereto as 'Attachment 1): 4%s4 �9hiema::9JuranSZ? ,�- ,' - - - ". -.: - • - - -. _ _ _ 1 - .. - f.-. • . - -. . 'gaw_ ti�r.K rtir;. _ vf,•.r r--_ �._;: -u��, r. - 11ill 5/93: The 'City Gouiicil �'as.rei it sted:to approve- and additional $100,000 in CDBC funds for the prograrn- .,- Theo_Ci' u`n- 6il.deferred the item" to'.December.6, .l 993. (RCA attached hereto as Attachment 2):.. 1216/93: The Ctty Cc�t�nc;l. ap�sirovsd three more participants- in the original program: Michelle Schmader r Carol Kanaiski aulii Nicholas Kormelu_ k. - The amounts of their -loans are not listed.; (RCA attached hereto -as Attachrriedt:3:�: 12120,193, lteni.1117: '1 e'.City Couiic'u approved an° additional participant in the program, David Dixson, for.the amount'of.$10,000, W increased the amount for participant- Nicholas Kormeluk from $8,600 to.$10b04, .'(RCA attached hereto as -Attachment 4.) 12f20i93, -Item F-2 ;The'City-Council approved an additional $100,000 for the program, but changed the `pri}grani to<r uire xepayttient of these additional Rmds. ` There are two important attachments'to this--k J,The ftik__is entitled "Approved Participants," and lists the following six participants.-Ci lia iati;=_Taban, SutlZerland, Schrnaderer, Kanarski, and Kormelult, in the total amount of$61,952.2 The second important-d6cumerit attached to this RCA is the list of "Pending Participants." It shows eight more participants in the - total amount of $59,100. 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 iaiow.;when;if ever, these. participants were actually approved. l/3194: The City :Council approved three more partieipsrtts in the original; -non -repayment program:. -Judy Yo-u`n_g:,---I reva Love; and Ellen Ammo' ndson, in the total amount of $31,000. When added'td `the% rcvtously: ammitted amount of $73,952; the total amount of funds con-rnitted is $104;95 :-. This:excecds the original $l €10,000 appropriated for the original, non - repayment program.-: The analysis portion of this RCA states that "the approvals herein will be the first fund e-d'witl ;the new appropriation,-" which implies that at least a portion of the funds .used for these.partfcip�its.were: part;of the funds. that were conditioned for repayment, as apposed to the`prigtnal Mnti repayment funds.: Ho-wever, the total numbers listed are roughly consistent with':'rhe�orig nal $1 ;O set asideifaz the°grant program:: The total amoimt of [oan funds itseil is TessTian $5 000.:(RCA. tacked hereto.as attachment 5). y- .i' T.:1 : 7. ~.t •. - •1 ` - - - . Our revievEr and chronology. of events indicates that the Council did not: intend to rei''r: a entof the on 000 appropriation...Clearly, then, the loans ; made'to d a 'ever beeause4t€iey;wefe ftirided.usri g $7.3,952 of the'first $100-000 appropriation: a... , The problem. is presented by the'tratisactroris with Young, Lone, and C}mmondson.. We believe that the Council'ibinteiit-was.to.notequiie- repayment, from these'participants. Unfortunately, `. there was `only-$26;04S,bf;the original; lion -repayment funds,available'to these participants, ;and ` Coll ectivety, they r cet l $31;400-Tltns; 'a small portion rsf the hrids used for these _ ' Dote that an aita hinena-to ahis=RCA.lists ten apliroyed participants: Since'the dates listed An after the Council meeting of 121'6i93,rwi�bilieYe that this fist has been erro 6e ;ly added to the 121603 RCA. Z Please not6 drat earliea'duii4 the saaiie m' eetirig,`the Council had also approved David Dixson for S 10,000, and an additional $2oQt}_for Ko metuk:-;:Thus_1he amount comni aced from the original $100,000 was actually $73,952. =. participants must have come from the second $ 100,000, which the Council appropriated with the condition'.that the loans be repaid, not forgiven. . CONCLUSION There are_two.conflicting Council actions...T.he Council's intent was to include participants Yourig,,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 loans made to Young, Love and Ommondson. Gail Hutton City Attorney . CITY OF HUNTINGTON BEACH Inter -Department Communication TO: Gus Duran, Economic Development FROM: Gail Hutton, City Attorney DATE: June 1, 1999 SUBJECT: Determination of Loan Forgiveness RLS 99-359 "e I *X 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 $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: 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 S40,475. (RCA attached hereto as Attachment 1). 41s:4.99Riemos:Duran527 0 • 11/15/93: The City Council was requested to approve and additional 5100,000 in CDBG funds for the program. The Council deferred the item to December 6, 1993. (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.) 12/20/93, Item E-17: The City Council approved an additional participant in the program, David Dixson, for the amount of $10,000, and increased the amount for participant Nicholas Kormeluk from $8,600 to 510,600. (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 repayment 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, Schmaderer, Kanarski, and Kormeluk, in the total amount of $61,952.2 The second important document attached to this RCA is the list of "Pending Participants." It shows eight more participants in the total amount of 559,100. 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 $31,000. When added to the previously committed amount of $73,952, the total amount of funds committed is $104,952. This exceeds the original 5100,000 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 $100,000 set aside for the grant program. The total amount of loan funds used is less than 55,000. (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 Kormeluk are forgivable, because they were funded using $73,952 of the first 5100,000 appropriation. The problem is presented by the transactions with Young, Love, and Ommondson. We believe that the Council's intent was to not require repayment from these participants. Unfortunately, there was only 526,048 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 ' Note that an attachment to this RCA lists ten approved participants. Since the dates listed are after the Council meeting of 12/6/93, ,A-e believe that this list has been erroneously added to the 12/6/93 RCA. 2 Please note that earlier during the same meeting, the Council had also approved David Dixson for $10,000, and an additional $2000 for Kormeluk. Thus the amount committed from the original $100,000 was actually $73,952. 2 4/s:4.99.Memos: Duran527 • 0 participants must have come from the second $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, Nve recommend that the Council clarify this conflict by approval of an RCA that forgives the loans made to Young, Love and Ommondson. 6:�7� Gail Hutton City Attorney 4/s:4-994i emos: Duran527 .. �. ic,�� ADD • / D f • • PLO SIG, Aez [ r' �CT;�� ( FiECOROIMQ REQUESTED RIO t Jl V N AI RETU21'i CHICAGO TITLE COMPANY AND WHEN RECORDED MAIL TO THE CIFY OF HUWMMN BEACH ECONOMIC DEV� ATTN . AN L3Rt 2000 MAIL+ STREET HMTIINGTON BEACH, CA 92648 j TITLE NO, 8810738—n3?� Oder M0. DOe9s0156 - Escf W ,40. 8990159 - ns Recorded in the County of Orange, California Gary L. Granville, ClerklRecorder II IIl1l lllll IIIll 1111111111111111111111111 IN lllll ll1 24.0 0 19980282941 08:00am 05/08/98 005 496408 28 59 B19 S13 7 6.00 18.00 0.00 0.00 0.00 0.00 x SPAZE ABOVE -HAS LINO FOR RECORDER'S ..5E SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR = LATER SECURITY IPiSTRUMFNT. THIS AGREEMENT, made April 24, 1996 , by NICHOLAS M. K09MELUK AND SHELLY KORMELUK owner of the land hereinafter described and hereinafter referred to as "Owner". and THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary; W ITN ESSETH THAT WHEREAS, NICHOLAS M. KORMELUK did execute a deed of trust, dated DECEMBER 29, 1993 , to THE REDEVELOPMEt4T AGENCY OF THE CITY OF HUNTINGTON BEACH, A PUBLIC BODY CORPORATE AND POLITIC as trustee, covering that certain real property described as: SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF: PROPERTY CONNONLY KNOWN AS: 17202 CORBINA LANE, # 201, HUNTINGTON BEACH, CA to secure a note in the sum of $ $10 , 660 .00 , dated DECEMBER 29, 1993 , in favor of THE CITY OF HUNT;NGTON BEACH, A MUNICIPAL CORPORATION which deed of trust was recorded JAN ARY 5, 1994 in hook/reel , page/image , Official Records of said county and/or as document number/series M -10641 ;and. Page 1 of 3 3,1A' 7193 om S' w RECORDING REQUESTED CHICAGO TITLE COMPANY AND WHEN RECORDED MAIL TO THE CITY OF HUIMMGTON BEACH ECONOMIC DEV. ATTN. DAN BRUE 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 0 PLEASE SIGN AND RETURlf THIS ORIGINAL DOCUMENT WAS SCANM g.. AND ELECTRONICALLY RECORDED Old MAY — 88 19 Q Document No, 1 CHICAGO TITLE CO. TITLE NO. 8810738—s32 C-rder NO. 008R50158 - Es --row No. a950158 - SN SPACE ABOVE T-SLINE FOR RECORDER'S USE SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. THIS AGREEMENT, made April 24, 1998 , by NICHOLAS M. KORMELUK AND 'SHELLY KORMELUK owner of the land hereinafter described and hereinafter referred to as "Owner", and THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiary"; WITNESSETH THAT WHEREAS, NICHOLAS M. KORMELUK did execute a deed of trust, dated DECEMBER 29, 1993 , to THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, A PUBLIC BODY CORPORATE AND POLITIC as trustee, covering that certain real property described as: SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF: PROPERTY COKMONLY KNOWN AS: 17202 CORBINA LANE, # 201, HUNTINGTON BEACH, CA to secure a note in the sum of $ $10 , 660 .00 , dated DECEMBER 29, 1993 , in favor of THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION which deed of trust was recorded JANUARY 5, 1994 in book/reel , page/image , Official Records of said county and/or as document number/series 94 -10641 ;and Page 1 of 3 SAA1 7!87 rsn WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of S $120, 000. 00 , dated Xf1VN,,/x5c10/ MAY 11 , 1998 , in favor of CALIFORNIA FEDERAL BANK, A FEDERAL SAVINGS BANK hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the deed of trust first above mentioned; and WHEREAS, Lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender; and WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned. NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien ar charge of the deed of trust first above mentioned. (2) That Lender would not make its loan above described without this subordination agreement. (3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described, any prior agreements as to such subordination including, but not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that (a) He consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; (b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (c) He intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and Page 2 of 3 SAA2 7/93 Ksn SAA37j'93tsn IT IS RECOMMENDED TTIAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES CONSULT WITH THEIR ATTORNEYS WITH RESPECTTHERETO. (SUBORDINATION FORM "A" DEED OFTRUST OF RECORD TO NEW DEED OF TRUST) STATE OF CA } } SS. COUNTY OF DrGJi7�G, ) On before me, a Notary Public in and for said County and State, personally appeared personally known to me { to be the persons whose names} 0subscribed to the within Instrument and ackn ledged to me that she executed the same in His er Heir authorized capat:ity0esj, and that by he,414eir signature* 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 Nota STATE OF COUNTY OF SS. 0!- before me, a Notary Public in and for said County and State, personally appeared CG—M-M`8'w! E�Nitif+iC— Nb" Cotrsmts'acrt # 61 PUID IC - f wiftmb Orotw coWtiy My On-i. 9011e9 AugV 2i2t 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 that he/she/they executed the same in his/her/their authorized capacity(les), 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 DCrNOT1-W/25/96bk 0 STATE OF O �'— COUNTY OF 6) 0— a. n On a - SS. before me,/ a Notary Public in and for said County and State, personally appeared 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 that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/thelr 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 STATE OF COUNTY OF On SS. before me, a Notary Public In and for said County and State, personally appeared CAR! RYAN 'COMM- 1050487 a .4 r r Not" public CaMornia 3) �MY� qqr" �y98 Ln 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 that he/she/they executed the same in his/her/their authorized capacity(les), 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 an official seal. gnature of Notary EXTNOTI -09/29/886k Order No: 8810738 -S32 • DESCRIPTION • PARCEL 1: UNIT 221, CONSISTING OF CERTAIN AIRSPACE AND SURFACE ELEMENTS, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN AND DESCRIBED IN THE CONDOMINIUM PLAN ("PLAN") FOR PHASE 3 OF CABO DEL MAR, WHICH PLAN WAS RECORDED MARCH 22, 1984 AS INSTRUMENT NO. 84-119765, OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA. PARCEL 2: AN UNDIVIDED 1/72ND FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO ALL OF THE REAL PROPERTY, INCLUDING, WITHOUT LIMITATION, THE COMMON AREAS DEFINED IN THE DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR CABO DEL MAR ("DECLARATION") RECORDED JANUARY 16, 1984 AS INSTRUMENT NO. 84-019079 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA, AS IMPOSED BY THAT CERTAIN NOTICE OF ADDITION OF TERRITORY AND SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR CABO DEL MAR ("NOTICE") RECORDED MARCH 30, 1984 AS INSTRUMENT NO. 84-133351 OF SAID OFFICIAL RECORDS, IN AND TO LOT 7 OF TRACT NO. 10853, AS SHOWN ON A MAP RECORDED IN BOOK 513, PAGES 14 AND 15, OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM UNITS 217 THROUGH 288 INCLUSIVE, AS SHOWN ON THE PLAN. ALSO•EXCLEPTING THEREFROM ALL MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES, AND ALL UNDERGROUND WATER IN OR UNDER OR WHICH MAY BE PRODUCED FROM SAID,LOT WHICH UNDERLIES A PLANE PARALLEL TO AND 500 FEET BELOW THE PRESENT SURFACE OF SAID LOTS FOR THE PURPOSE OF PROSPECTING FOR, THE EXPLORATION, DEVELOPMENT, PRODUCTION, EXTRACTION, AND TAKING OF SAID MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES, AND WATER FROM SAID LOT BY MEANS OF MINES, WELLS, DERRICKS, OR OTHER EQUIPMENT FROM SURFACE LOCATIONS ON ADJOINING OR NEIGHBORING LAND OR LYING OUTSIDE OF THE ABOVE DESCRIBED LOT, IT BEING UNDERSTOOD THAT THE OWNER OF SUCH MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES, AND WATER, AS SET FORTH ABOVE, SHALL HAVE NO RIGHT TO ENTER UPON THE SURFACE OR ANY PORTION THEREOF ABOVE SAID PLANE PARALLEL TO AND 500 FEET BELOW THE PRESENT SURFACE OF SAID LOT FOR ANY PURPOSES WHATSOEVER, AS RESERVED IN DEED FROM MOLA DEVELOPMENT CORPORATION, A CALIFORNIA CORPORATION, RECORDED JUNE 24, 1985 AS INSTRUMENT NO. 85-229038 OF OFFICIAL RECORDS. PARCEL 3- NON-EXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENJOYMENT, DRAINAGE, ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS, AND FOR OTHER PURPOSES, ALL AS SHOWN IN THE PLAN AND AS DESCRIBED IN THE DECLARATION. PARCEL 4: EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS 1 AND 2 DESCRIBED ABOVE, FOR USE FOR PATIO AND BALCONY PURPOSES, DEFINED AND DESCRIBED AS RESTRICTED COMMON AREAS IN THE DECLARATION AND NOTICE AND AS SHOWN AND ASSIGNED IN THE PLAN. PARCEL 5: r)NC.RSO- 12/rA191 AA •Order No. 8810738 -S32 a _ • 2 �. DESCRIPTION • EXCLUSIVE EASEMENT APPURTENANT TO PARCELS 1 AND 2 DESCRIBED ABOVE FOR USE FOR PARKING PURPOSES OVER THE FOLLOWING AREAS DEFINED AND DESCRIBED AS RESTRICTED COMMON AREAS IN THE DECLARATION ARID NOTICE; PARKING SPACE NO. 221. r]Pw[:KMI—ryrKlvr nn Order No: 88 i0738 - S32 2 o DESCRIPTION EXCLUSIVE EASEMENT APPURTENANT TO PARCELS 1 AND 2 DESCRIBED ABOVE FOR USE FOR PARKING PURPOSES OVER THE FOLLOWING AREAS DEFINED AND DESCRIBED AS RESTRICTED COMMON AREAS IN THE DECLARATION AND NOTICE; PARKING SPACE NO. 221. DFSCR50 - 12104191 AA RECORDING REQUESTED '1 CHICAGO TITLK COMVWY AND WHEN RECORDED MAIL TO Recorded in the County of Orange, California FTHE CITY OF HUNTINGTON BEACH ECONOMIC DEVELOPMENT Gary L. Granville, Clark/Recorder ATT�f : DN BRii$NIt3t3 �lllll�li1111i111111111111111111111111111111111i1 27. 00 2000 MAIN ST 4 HUI.97INGTON BEACH, CA 92648 19980374922 2:38pm 06/15/98 005 2008756 02 49 S1386.0021.000.000.000.000.00 Escrow Nn. 8 95015 8 Order No. 8810738-S32 ' SPACE ABODE: THIS L'N= FOq p'COMEq'3 L15E - SUBORDINATION AGREEMENT (RERECORD) THIS DOCUMENT IS BEING RERECORDED TO RECORD CONCURRENTLY WITH DEED OF TRUST. THIS PAGE ADDED TO PROVIDE ADEOUATE SPACE FOR RECORDING INFORMATION ( Additional recording fee applies) CPfRA •-11 / 17; 70bF RECORDING REQUESTED&Y• CHICAGO TITLE COMJI Y AND WHEN RECORDED MAIL TO �- FTHE CITY OF HUNTINGTON BEACH ECONOMIC DEVELOPMENT ATTN: DAN BRUENING 2000 MAIN ST HUNTINGTON BEACH, CA 92648 L J Escrow No. 8950158 Order No. 8810738-S32 SPACE ABOVE THIS UNE FOR RECORDER'S USE SUBORDINATION AGREEMENT (RERECORD) THIS DOCUMENT IS BEING RERECORDED TO RECORD CONCURRENTLY WITH DEED OF TRUST. THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION (Additional recording Fee applies) CaFR4-.11,;13/960K RECORDING REQUESTEDIN CHI;CAGO TITLE COMI AND WHEN RECORDED MAIL. TO 1 '^HE CITY OF MJNTINGTON BEACH Recorded in the County of orange, California ECONOMIC DEVELOPMENT Gary L. Granville, ClerklRecorder N BRUELiINC3 2000 �lllli�lillllilllllllllllllllfllllililllllllllilll 27.00 2000 MAIN ST HUNTINGTON BEACH, CA 92648 fl6115198 I UVOU014922 2.38pm 005 2008756 02 49 L S1386.0021.000.000.000.000.00 Escrow No. a95o158 Order No- 8810738-S32 SPACE ABOVE THIS UNE FOR RECORDER'S USE SUBORDINATION AGREEMENT (RERECORD) THIS DOCUMENT IS BEING RERECORDED TO RECORD CONCURRENTLY WITH DEED OF TRUST. THIS PAGE ADDED TO PROVIDE ADEOUATE SPACE FOR RECORDING INFORMATION CAFRr-i1f13/7B6F ( Additional recording fee applies) CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION TO: Connie Brockway, City Clerk FROM: Dan Bruening, Housing Rehabilitation Manage SUBJECT: Subordination Agreement for Nicholas Kormeluk, DPA 93-09 DATE: June 12, 1998 The recorded subordination Agreement for Kormeluk was recorded on May 8, 1998. It was recorded prior to the loan being executed. Everything will remain the same, all that will be done is to have the subornation agreement re -recorded. A special courier will pick up the agreement to transport to Chicago Title. When recorded, the agreement will return to the city through the normal course. I have attached the letter from Chicago Title dated June 12, 1998. JUN.10.1998 11:27AM CHICAGO TITLE ORINDA NO.967 P.1/1 m CHTCAGO TrME SOMPANY 0 140 Brookwood Road, #100, Orinda, Califoxn,ia 94663 Phone:(925) 296-5000 Fax:(925) 254-7108 o6/12/98 CZTY OF HUNTINGTON BEACH ECONOMIC DEVELOPMENT 2000 MAIN STREET HTJNTINGTON BEACH, CA 92648 ATTN. DAN BRUENING RE) ECONOMIC DEVELOPMENT -LOAN / FIRST TIME BUYER PROGRAM BORROWER: KORMELVK PLEASE CONSIDER THIS LETTER WRITTE?N CONFIMTION AND A WRITTEN REQUEST FOR CHICAGO TITLE COMPANY TO SEND A SPECIAL COURIER TO YOUR OFFICE TO PICK UP THE ORIGINAL SUBORDINATION AGRESMENT FROM YOUR OFFICE. IT IS NECESSARY FOR CIiICAGO TITLE COMPANY TO SEND A SPECIAL COURIER TO YOUR OFFICE TO PICK UP THE 03RIGINAL SUBORDINATION AGREEMENT BECAUSE THE SUBORDINATION AGREEMENT NEEDS TO BE RE -RECORDED TO REFLECT THE CORRECT RECORDING INFORMATION OF THE NEW FIRST DEED OF TRUST IN FAVOR OF CALIFORNIA FEDERAL BANK. CRICAGO TITLE RECORDED THE SUBORDINATION AGREEMENT ORIGINALLY ON MAY 8 AND REFLECTED RECORDING INFORMATION FOR A NEW FIRST DEED OF TRUST IN FAVOR OF CALIF. FEDERAL EA.;TK WHICH WAS RECOR119D INCORRECTLY. THE NEW FIRST DEED OF TRUST WHICH IS TO BE RECORDED CONCURRONTLY WITH THE RE-RECORDING OF YOUR SUBORDINATION AGREEMENT IS EXACTLY THE SAME NEW FIRST MORTGAGE AS YOU PREVIOUSLY APPROVED FOR. THERE ARE NO CHANGES TO M NEW FIRST MORTGAGE THE CITY OF HUNTINGTON BEACH HAS PREVIOUSLY APPROVED SUBORDINATING TO. PLEASE CALL WITH ANY QUESTIONS. I APPRECIATE YOUR COOPERATION AND APOLOGIZE FOR THE INCONVENIENCE. :y S LY, STr_,N S9NIOR SCROW OFFICER/BRANCH MANAGER ezLTR14/4/m_Win APR. 27.1998 3:15PM CHICAGO TITLE GRINDA NO.698 P.1 O."N' CHICAGO TInt COMPANY 0 925 Village Center, Suite 3, Lafayette, California 94549 (925)296-5000 Fax (925)254-7108 April 27, 1998 Dan Bruening City of Huntington Beach Economic 2000 Main street Huntington Reach, CA 92648 Borrower: Kormeluk Property: 17202 Corbina Lane, #201, Huntington Beach, California Escrow No: 008950158 KN Dear Dan: As per your request, this letter is to verify that the new tat loan for the above referenced borrower is a "No Cash Out" transaction. If we can provide any additional information or answer any questions you may have, please give us a call. Thank you for choosing Chicago Title Company. Sincerely, CHICAGO TITLE COMPANY Zj!xirgren r?tin ow facer u).FA--W4j/Nac I. s ` fi£C4AotAfa REUt1E5TEa� CHICAGO TITLE COMPANY AND WHEN RECORDED MAIL TO THE C11Y OF HUIT CTON BEACH ECONOMIC DEV ATTN. AN BRUEN 2ooO MAIN STREET HUNTINGTON BEACH; CA 92648 TITLE NO, 8810738—a3? Order No. 000950158 - Escrow No . s95015a - RG .c SIG14 A —ND R E T U Recorded in the County of Orange, California Gary L. Granville, ClerklRecorder Illllllllllllllllllllllllllllllllllllllllllllllllill 24.00 19980282941 08:00am 05/08/98 005 496408 28 59 IB19 S 13 7 6.00 19.00 0.00 0.00 0.00 0.00 •• - SPACE ABOVE-H"3 LINE F04 AECORDERS LISE SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURTITY 1NSTFRUMENT, THIS AGREEMENT, made April. 24, 199E , by NICHOLAS M. KORMELUK AND SHELLY -KORMELUK owner of the land hereinafter described and hereinafter referred to as "Owner", and THE CITY OF H•JN':INGTON BEACH, A MUNICIPAL CORPORATION present owner and holder of the deed of trust and note first hereinafter dcscrihed and hereinafter referred to as "Beriefieiary' WITNESSETH THAT WHEREAS, NICHOLAS M. KORMELUK did execute a deed of trust, dated DECEMBER 29, 1993 , to THE REDEVnLOPMENT AGENCY OF THE CITY OF HUNTINGTCN BEACF, A PUBLIC BODY CORPORATE AND POLITIC as trustee, covering that certain real property described as: SEE LEGAL. DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF: PROPERTY COMMONLY KNOWN AS; 17202 CORBINA LANE, if 201, HUNTINGTON BEACH, CA to secure a note in the sum of S $10 , 660 .00 , dated DECEMBER 29, 1993 , in favor of THE CITY OF HUNTINGTON BEACH, A MUNICIPAL, CORPORATION which deed of trust was recorded JANUARY 5. 1994 in book/reel , page- image , Official Records of said county and/or as document number/series 94 -10641 ; and Page 1 of 3 SAA+ 7193 -n� RECORDING REQUESTS r PLEASE SIGN AirD RETU; f CHICAGO TITLE COMPANY AND WHEN RECORDED MAILTO- THE CITY OF HUNTINGTON BEACH ECONOMIC DEV ATTN. DA24 BRUENIN 2000 MAIN STREET HUNTINGTON BEACH, CA 92648 TITLE NO. 8810738—s32 Order No.00assoisa- Escrow No. a95oise - xN SPACE ABOVE THIS UNE FOR RECORDERS USE SUBORDINATION AGREEMENT THIS HiO!E-I. E i.nlil+:i:'�Y AND 0.1"r'" r- 1;11 A - j98- o Document No. � F. p 4/ CIIICAGO TITLE E5:- r NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECLR'TY INSTRUMENT. THIS AGREEMENT, made April 24, 1998 , by NICHOLAS M. KORMELUK AND SMELLY KORMELUK owner of the land hereinafter described and hereinafter referred to as "Owner", and THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as 'Beneficiary"; WITNESSETH THAT WHEREAS, NICHOLAS M. KORMELUK did execute a deed of trust, dated DECEMBER 29, 1993 , to THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, A PUBLIC BODY CORPORATE AND POLITIC as trustee, covering that certain real property described as: SEE LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF: PROPERTY COILMONLY KNOWN AS: 17202 CORBINA LANE, # 201, HUNTINGTON BEACH, CA to secure a note in the sum of $ $10 , 660 . 00 , dated DECEMBER 29, 1993 , in favor of THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION which deed of trust was recorded JANUARY 5, 1994 in book/reel , page/image , Official Records of said county and/or as document number/series 94 -10641 ; and Page 1 of 3 SAM 7/93 ksn 1-1 L WHEREAS, Owner has executed, or is about to execute, a deed of trust and note in the sum of $ $120, 000 . 00 , datedAPRIL 2, 1998 , in favor of CALIFORNIA FEDERAL BANK, A FEDERAL SAVINGS BANK hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the deed of trust first above mentioned; and WHEREAS, Lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender; and WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is willing that the deed of trust securing the same shall, when recorded, constitute alien or charge upon said land which is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned. NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to induce Lender to make the loan above referred to, it is hereby deciared, understood and agreed as follows: (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times alien or charge on the property therein described, prior and superior to the lien or charge of the deed of trust first above mentioned. (2) That Lender would not make its loan above described without this subordination agreement. (3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of Lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described, any prior agreements as to such subordination including, but not limited to, those provisions, if any, contained in the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that (a) He consents to and approves (i) all provisions of the note and deed of trust in favor of Lender above referred to, and (ii) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; (b) Lender in making disbursements pursuant to any such agreement is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (c) He intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and Page 2 of 3 SAA2 7/93 ksn (d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL, PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR PURPOSES OTHER THAN IMPROVEMENT OF THE LAND. THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPOF?ATION Y Yi - 1(�TI/{CHLAO`AL✓�AS M . KORMELUK SHELLY ORMELUK (All signatures must be acknowledged) Page 3 of 3 This Form Furnished by Chicago Title Company gM97/93ian rr IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREE.ME.W, THE PARTIES CONSULT WITH THEIRA1TOR.NTEYS WITH RFSPECTTHERETO. (SUBORDINATION FORiM "A" DEED OFTRUSTOF RECORD TO NEW DEED OFTRUST) STATE OF 0-14 COUNTY OF Qra�rlt� ) On „ %��� / /C1 �%� _ _ before me,� a Notary Public in and for said County and State, personally appeared ��- p �f c�G Acj personally known to me { aciory..ewden* to be the person(e) whose names} 6Is subscribed to the within instrument and acl n edged to me, that she executed the same in bait authorized capacity0es), and that by he it signature* 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. ELIZABUH EHRIN Commission # 1150021 / Notary Public - calif0mlo _ Orange County Signature of Nota MYCom-n. Aug29.2f>Dl STATE OF SS. COUNTY OF 0r: .before me, a Notary Public In and for said County and State, personally appeared 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 that he/she/they executed the same In his/her/their authorized capacity(les), 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 EXTNOTI - 9/25/98M STATE OF( yZ Or P-CCk- COUNTY OF 6) d— � SS on before a Notary Public in and for said County and State, personally appeared 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 that he/she/they 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, execrated the instrument. WITNESS my hand and official seal. JAI G� Signature of Notary STATE OF COUNTY OF } } SS. Or before me, a Notary Public in and for said County and State, personally appeared 7~ CAROL R1rpp�{ ir _a .COMM. #1050467 a 4, r met" public California M my =GU Y L 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 that he/she/they executed the same in his/her/thelr 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 a official seal. ignatur i of Notary EXMDT1-.M/25/986k Order No. 8810736 -S32 1 i DESCRIPTION PARCEL 1: UNIT 221, CONSISTING OF CERTAIN AIRSPACE AND SURFACE ELEMENTS, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN AND DESCRIBED IN THE CONDOMINIUM PLAN ("PLAN") FOR PHASE 3 OF CABO DEL MAR, WHICH PLAN WAS RECORDED MARCH 22, 1984 AS INSTRUMENT NO. 84-119765, OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA. PARCEL 2: AN UNDIVIDED 1/72ND FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO ALL OF THE REAL PROPERTY, INCLUDING, WITHOUT LIMITATION, THE COMMON AREAS DEFINED IN THE DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR CABO DEL MAR ("DECLARATION") RECORDED JANUARY 16, 1984 AS INSTRUMENT NO, 84-019079 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA, AS IMPOSED BY THAT CERTAIN NOTICE OF ADDITION OF TERRITORY AND SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR CABO DEL MAR ("NOTICE") RECORDED MARCH 30, 1984 AS INSTRUMENT NO. 84-133351 OF SAID OFFICIAL RECORDS, IN AND TO LOT 7 OF TRACT NO. 10853, AS SHOWN ON A MAP RECORDED IN BOOK 513, PAGES 14 AND 15, OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM UNITS 217 THROUGH 288 INCLUSIVE, AS SHOWN ON THE PLAN. ALSO-EXCLEPTING THEREFROM ALL MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES, AND ALL UNDERGROUND WATER IN OR UNDER OR WHICH MAY BE PRODUCED FROM SAID LOT WHICH UNDERLIES A PLANE PARALLEL TO AND 500 FEET BELOW THE PRESENT SURFACE OF SAID LOTS FOR THE PURPOSE OF PROSPECTING FOR, THE EXPLORATION, DEVELOPMENT, PRODUCTION, EXTRACTION, AND TAKING OF SAID MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES, AND WATER FROM SAID LOT BY MEANS OF MINES, WELLS, DERRICKS, OR OTHER EQUIPMENT FROM SURFACE LOCATIONS ON ADJOINING OR NEIGHBORING LAND OR LYING OUTSIDE OF THE ABOVE DESCRIBED LOT, IT BEING UNDERSTOOD THAT THE OWNER OF SUCH MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES, AND WATER, AS SET FORTH ABOVE, SHALL HAVE NO RIGHT TO ENTER UPON THE SURFACE OR ANY PORTION THEREOF ABOVE SAID PLANE PARALLEL TO AND 500 FEET BELOW THE PRESENT SURFACE OF SAID LOT FOR ANY PURPOSES WHATSOEVER, AS RESERVED IN DEED FROM MOLA DEVELOPMENT CORPORATION, A CALIFORNIA CORPORATION, RECORDED JUNE 24, 1985 AS INSTRUMENT NO. 85-229038 OF OFFICIAL RECORDS. PARCEL 3: NON-EXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENJOYMENT, DRAINAGE, ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS, AND FOR OTHER PURPOSES, ALL AS SHOWN IN THE PLAN AND AS DESCRIBED IN THE DECLARATION. PARCEL 4: EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS 1 AND 2 DESCRIBED ABOVE, FOR USE FOR PATIO AND BALCONY PURPOSES, DEFINED AND DESCRIBED AS RESTRICTED COMMON AREAS IN THE DECLARATION AND NOTICE AND AS SHOWN AND ASSIGNED IN THE PLAN. PARCEL 5: r)Flt .iO.. 121CA191 AA Order No: 8810738 -S32 • 2 i DESCRIPTION EXCLUSIVE EASEMENT APPURTENANT TO PARCELS 1 AND 2 DESCRIBED ABOVE FOR USE FOR PARKING PURPOSES OVER THE FOLLOWING AREAS DEFINED AND DESCRIBED AS RESTRICTED COMMON AREAS IN THE DECLARATION AND NOTICE; PARKING SPACE NO. 221. O SC.A.sn --I 71 CM/91 AA 0 SUBORDINATION 0 ESCROW INSTRUCTIONS TO: CHICAGO TITLE COMPANY, licensed by the Calif . Dept . of Insurance 925 Village Center, Suite 3, Lafayette, California 94549 Phone: (925) 284-1021 Fax: (925) 284-1843 Escrow No. 8950158 - KN Escrow Officer KRISTIN NORGREN Date 19980424 The undersigned deposit herewith the following in connection with the above captioned escrow: Subordination Agreement, whereby the undersigned Lender's Deed of Trust Executed by NICHOLAS M. KORMELUK, A SINGLE MAN Trustee Beneficiary Dated Recorded on Inst./Series No. Book/Reel County Rec. Securing a Note In the sum of $ Dated THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, A PUBLIC BODY coaeoRATE & POLITIC THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION DECEMBER 29, 1993 _ JANUARY 5, 1994 94-10641 ORANGE COUNTY 10 660.00 DECEMBER 29, 1993 Page/Image is subordinated to a Deed of Trust Executed by NICHOLAS M. KORMELUK AND SHELLY KORMELUK Trustee Beneficiary Securing a Note In the sum of $ Dated MASTER MORTGAGE COMPANY CALIFORNIA FEDERAL BANK A FEDERAL SAVINGS BANK 120,000.00 APRIL 2, 1998 The undersigned Lender(s) hereby acknowledge(s) having read and approved copies of the new lender's instructions, the new note and deed of trust and has/have read and approved the preliminary report No. 8810738-S32 dated FEBRUARY 12, 1998 _ 1 covering the referenced property. You are authorized and Instructed to record said Subordination Agreement concurrently with the Deed of Trust last noted hereinabove, upon holding for the undersigned Lender(s) the following: 0 with no demand for consideration to the undersigned The undersigned Lender(s) hereby acknowledge(s) that the effect of this subordination will lower the priority of their Deed of Trust. In executing said Subordination'`Agreement, the undersigned has NOT relied upon representations or advice by CHICAGO TITLE COMPANY. LM i. . _ __ - 1 Existing/Subordination Lender: Borrower(s) THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION BY: V Address NICHOLAS M. KORMELUK SHELLY KORMELUK Address E19 7/93 ken 0 ✓e� Tb CHICAGO TITLE COMPANY Date: February 27, 1998 KRISTIN NORGREN CHICAGO TITLE/LAFAYETTE 925 VILLAGE CENTER, SUITE 3 LA FAYETTE, CA 94549 Order No.: 8810738 - S32 Property: 17202 CORBINA LANE #201, HUNTINGTON BEACH, CA RE: 8950158 In response to a request for our issuance of a Policy of Title Insurance, we enclose herewith our Prelirriinary Report for your review. Should you have any questions in connection with this or any other matter concerning the above referenced order, please do not hesitate to contact our office. Thank you for choosing Chicago Title Company. Title Department: CHICAGO TITLE COMPANY 16969 VON KARMAN IRVINE, CA 92614 (714)263-2500 fax: (714)263-0872 PAULA SPEHAR TITLE OFFICER 0 PRELTR -09/19/974k QCHICAGO TITLE COMPANY Date: February 27, 1998 SAM WRIGHT DIABLO FUNDING GROUP 55 OAK COURT SUITE 203 DANVILLE, CA 94526 Order No.: 8810738 - S32 • Property: 17202 CORBINA LANE #201, HUNTINGTON BEACH, CA RE: KORMELUK In response to a request for our issuance of a Policy of Title Insurance, we enclose herewith our Preliminary Report for your review. Should you have any questions in connection with this or any other matter concerning the above referenced order, please do not hesitate to contact our office. Thank you for choosing Chicago Title Company. Title Department: CHICAGO TITLE COMPANY 16969 VON KARMAN IRVINE, CA 92614 (714)263-2500 fax: (714)263-0872 PAUtA SPEHAR. TITLE OFFICER 4 UPEL-09/02/97pk CHICAGO TITLE COMPANY Reference: 8950158 Regarding: 17202 CORBINA LANE #201 HUNTINGTON BEACH, CA PRELIMINARY REPORT Dated as of: February 12, 1998 at 7:30 AM Order No.: 8810738 - 832 CHICAGO TITLE COMPANY hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception In Schedule B or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage of said Policy or Policies are set forth in the attached list. Copies of the Policy forms are available upon request. Please read the exceptions shown or referred to In Schedule B and the exceptions and exclusions set forth In the attached list of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title Insurance policy and should be carefully considered. It Is Important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. THIS REPORT (AND ANY SUPPLEMENTS OR AMENDMENTS HERETO) IS ISSUED SOLELY FOR THE PURPOSE OF FACILITATING THE ISSUANCE OF A POLICY OF TITLE INSURANCE AND NO LIABILITY IS ASSUMED HEREBY. IF IT IS DESIRED THAT LIABILITY BE ASSUMED PRIOR TO THE ISSUANCE OF A POLICY OF TITLE INSURANCE, A BINDER OR COMMITMENT SHOULD BE REQUESTED. The form of policy of title insurance contemplated by this report is: AMERICAN LAND TITLE ASSOCIATION LOAN EXTENDED COVERAGE POLICY Title Department: CHICAGO TITLE COMPANY 16969 VON KARMAN IRVINE, CA 92614 (714)263-2500 fax: (714)263-0872 PAULA SPEHAR TITLE OFFICER Cod PPP—09/04/97bk • SCHEDULE A • Order No: 8810738 S32 Your Ref: 8950158 I. The estate or interest in the land hereinafter described or referred to covered by this report is: A CONDOMINIUM, AS DEFINED IN SECTION 783 OF THE CALIFORNIA CIVIL CODE, IN FEE 2. Title to said estate or interest at the date hereof is vested in: NICHOLAS M. KORMELUK, A SINGLE MAN 3. The land referred to in this report is situated in the State of California, County of ORANGE and is described as follows: SEE ATTACHED DESCRIPTION .inrzvWnk Order No: 8810738 -532 . • 1 DESCRIPTION PARCEL 1: UNIT 221, CONSISTING OF CERTAIN AIRSPACE AND SURFACE ELEMENTS, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN AND DESCRIBED IN THE CONDOMINIUM PLAN ("PLAN") FOR PHASE 3 OF CABO DEL MAR, WHICH PLAN WAS RECORDED MARCH 22, 1984 AS INSTRUMENT NO. 84-119765, OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA. PARCEL 2: AN UNDIVIDED 1/72ND FEE SIMPLE INTEREST AS A TENANT IN COMMON IN AND TO ALL OF THE REAL PROPERTY, INCLUDING, WITHOUT LIMITATION, THE COMMON AREAS DEFINED IN THE DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR CABO DEL MAR ("DECLARATION") RECORDED JANUARY 16, 1984 AS INSTRUMENT NO. 84-019079 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA, AS IMPOSED BY THAT CERTAIN NOTICE OF ADDITION OF TERRITORY AND SUPPLEMENTAL DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS FOR CABO DEL MAR ("NOTICE") RECORDED MARCH 30, 1984 AS INSTRUMENT NO. 84-133351 OF SAID OFFICIAL RECORDS, IN AND TO LOT 7 OF TRACT NO. 10853, AS SHOWN ON A MAP RECORDED IN BOOK 513, PAGES 14 AND 15, OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA. EXCEPTING THEREFROM UNITS 217 THROUGH 288 INCLUSIVE, AS SHOWN ON THE PLAN. ALSO EXCLEPTING THEREFROM ALL MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES, AND ALL UNDERGROUND WATER IN OR UNDER OR WHICH MAY BE PRODUCED FROM SAID LOT WHICH UNDERLIES A PLANE PARALLEL TO AND 500 FEET BELOW THE PRESENT SURFACE OF SAID LOTS FOR THE PURPOSE OF PROSPECTING FOR, THE EXPLORATION, DEVELOPMENT, PRODUCTION, EXTRACTION, AND TAKING OF SAID MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES, AND WATER FROM SAID LOT BY MEANS OF MINES, WELLS, DERRICKS, OR OTHER EQUIPMENT FROM SURFACE LOCATIONS ON ADJOINING OR NEIGHBORING LAND OR LYING OUTSIDE OF THE ABOVE DESCRIBED LOT, IT BEING UNDERSTOOD THAT THE OWNER OF SUCH MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES, AND WATER, AS SET FORTH ABOVE, SHALL HAVE NO RIGHT TO ENTER UPON THE SURFACE OR ANY PORTION THEREOF ABOVE SAID PLANE PARALLEL TO AND 500 FEET BELOW THE PRESENT SURFACE OF SAID LOT FOR ANY PURPOSES WHATSOEVER, AS RESERVED IN DEED FROM MOLA DEVELOPMENT CORPORATION, A CALIFORNIA CORPORATION, RECORDED JUNE 24, 1985 AS INSTRUMENT NO. 85-229038 OF OFFICIAL RECORDS. PARCEL 3: NON-EXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENJOYMENT, DRAINAGE, ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS, AND FOR OTHER PURPOSES, ALL AS SHOWN IN THE PLAN AND AS DESCRIBED IN THE DECLARATION. PARCEL 4: EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS 1 AND 2 DESCRIBED ABOVE, FOR USE FOR PATIO AND BALCONY PURPOSES, DEFINED AND DESCRIBED AS RESTRICTED COMMON AREAS IN THE DECLARATION AND NOTICE AND AS SHOWN AND ASSIGNED IN THE PLAN. PARCEL 5: DESCASO •• 12/04/91 M Order No:8810738 -S32 i 2 DESCRIPTION • EXCLUSIVE EASEMENT APPURTENANT TO PARCELS 1 AND 2 DESCRIBED ABOVE FOR USE FOR PARKING PURPOSES OVER THE FOLLOWING AREAS DEFINED AND DESCRIBED AS RESTRICTED COMMON AREAS IN THE DECLARATION AND NOTICE; PARKING SPACE NO. 221. DFSCRSO -- 12/04/91 M • SCHEDULE B Page I Order No: 8810736 S32 Your Ref: 8950158 At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in the policy form designated on the face page of this Report would be as follows: A 1. PROPERTY TAXES, INCLUDING ANY ASSESSMENTS COLLECTED WITH TAXES, TO BE LEVIED FOR THE FISCAL YEAR 1998-99 THAT ARE A LIEN NOT YET DUE. B 2. PROPERTY TAXES, INCLUDING ANY PERSONAL PROPERTY TAXES AND ANY ASSESSMENTS COLLECTED WITH TAXES, FOR THE FISCAL YEAR 1997-1998 1ST INSTALLMENT: $770.60 (PAID) 2ND INSTALLMENT: $770.60 UNPAID PENALTY AND COST: $87.06 (DUE AFTER APRIL 10) HOMEOWNERS EXEMPTION: $7,000.00 CODE AREA: 04007 ASSESSMENT NO: 939-54-328 c 3. THE LIEN OF SUPPLEMENTAL OR ESCAPED ASSESSMENTS OF PROPERTY TAXES, IF ANY, MADE PURSUANT TO THE PROVISIONS OF PART 0.5, CHAPTER 3.5 OR PART 2, CHAPTER 3, ARTICLES 3 AND 4 RESPECTIVELY (COMMENCING WITH SECTION 75) OF THE REVENUE AND TAXATION CODE OF THE STATE OF CALIFORNIA AS A RESULT OF THE TRANSFER OF TITLE TO THE VESTEE NAMED IN SCHEDULE A; OR AS A RESULT OF CHANGES IN OWNERSHIP OR NEW CONSTRUCTION OCCURRING PRIOR TO DATE OF POLICY. D 4. THE DEDICATION TO THE CITY OF HUNTINGTON BEACH OF THE ACCESS RIGHTS IN, OVER, ACROSS, UPON AND THROUGH THE PRIVATE STREETS WITHIN SAID TRACT, FOR THE PURPOSES OF MAINTAINING, SERVICING, CLEANING, REPAIRING AND REPLACING THE WATER SYSTEM. s 5. 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: BOLSA CHICA SAID LAND HOWEVER, ABUTS UPON A PUBLIC THOROUGHFARE OTHER THAN THE ROAD REFERRED TO ABOVE, OVER WHICH RIGHTS OF VEHICULAR INGRESS AND EGRESS HAVE NOT BEEN RELINQUISHED. F 6. THE MATTERS SET FORTH IN THE DOCUMENT SHOWN BELOW WHICH, AMONG OTHER THINGS, CONTAINS OR PROVIDES FOR: CERTAIN EASEMENTS; LIENS AND THE SUBORDINATION THEREOF; PROVISIONS RELATING TO PARTITION; RESTRICTIONS ON SEVERABILITY OF COMPONENT PARTS; AND COVENANTS, CONDITIONS AND RESTRICTIONS, (BUT OMITTING THEREFROM ANY COVENANT OR RESTRICTION BASED ON RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN, IF ANY, UNLESS AND ONLY TO THE EXTENT THAT SAID COVENANT (A) IS EXEMPT UNDER CHAPTER 42, SECTION 3607 OF THE UNITED STATES CODE OR (B) PREB-10/31/874k SCHEDULE B Page 2 (continued) Order No: 8810738 S32 Your Ref: 8950158 c H I RELATES TO HANDICAP BUT DOES NOT DISCRIMINATE AGAINST HANDICAPPED PERSONS). RECORDED: AS INSTRUMENT NO. 84-19079, 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. THE PROVISIONS OF SAID COVENANTS, CONDITIONS AND RESTRICTIONS WERE EXTENDED TO INCLUDE THE HEREIN DESCRIBED LAND BY AN INSTRUMENT RECORDED: AS INSTRUMENT NO. 84-133350 AND AS INSTRUMENT NO. 84-133351, BOTH OF OFFICIAL RECORDS 7. A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN BELOW AMOUNT: $132,300.00 DATED: DECEMBER 23, 1993 TRUSTOR: NICHOLAS M. KORMELUK, A SINGLE MAN TRUSTEE: MARK E. POSNICK BENEFICIARY: INTERCOASTAL FUNDING CORPORATION, A CALIFORNIA CORPORATION RECORDED: JANUARY 5,,1994 AS INSTRUMENT NO. 94-10639, OFFICIAL RECORDS ORIGINAL LOAN NUMBER: 203062 20 J A SUBSTITUTION OF TRUSTEE UNDER SAID DEED OF TRUST WHICH NAMES AS THE SUBSTITUTED TRUSTEE, THE FOLLOWING TRUSTEE: COUNTRYWIDE FUNDING CORPORATION, A NEW YORK CORPORATION RECORDED: JUNE 22, 1994 AS INSTRUMENT NO. 94-415280, OFFICIAL RECORDS x AN ASSIGNMENT OF THE BENEFICIAL INTEREST UNDER SAID DEED OF TRUST WHICH NAMES AS ASSIGNEE: COUNTRYWIDE TITLE CORPORATION, A CALIFORNIA CORPORATION RECORDED: JUNE 22, 1994 AS INSTRUMENT NO. 94-415280, OFFICIAL RECORDS PREUMBC•8/23/B3bk SCHEDULE B Page 3 (continued) Order No: 8810738 S32 Your Ref: 8950158 L 8. A DEED OF TRUST TO SECURE AN INDEBTEDNESS IN THE ORIGINAL AMOUNT SHOWN 13ELOW AMOUNT: DATED: TRUSTOR: TRUSTEE: BENEFICIARY: RECORDED: ORIGINAL LOAN NUMBER: $10,660.00 DECEMBER 29, 1993 NICHOLAS M. KORMELUK, A SINGLE MAN THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, A PUBLIC BODY CORPORATE AND POLITIC THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION GANUARY 5, 1994 AS INSTRUMENT NO. 94-10641, OFFICIAL RECORDS (NOT SET OUT) m END OF SCHEDULE B x NOTE NO. 1: IF A 1970 ALTA OWNER'S OR LENDER'S OR 1975 ALTA LEASEHOLD OWNER'S OR LENDER'S POLICY FORM HAS BEEN REQUESTED, THE POLICY, WHEN APPROVED FOR ISSUANCE, WILL BE ENDORSED TO ADD THE FOLLOWING TO THE EXCLUSIONS FROM COVERAGE CONTAINED THEREIN: LOAN POLICY EXCLUSION: 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. OWNER'S POLICY EXCLUSION: ANY CLAIM WHICH ARISES OUT OF THE TRANSACTION VESTING IN THE INSURED, THE ESTATE OR INTEREST INSURED BY THIS POLICY, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY OR SIMILAR CREDITORS' RIGHTS LAWS. 0 NOTE NO. 2: THE CHARGE FOR A POLICY OF TITLE INSURANCE, WHEN ISSUED THROUGH THIS TITLE ORDER, WILL BE BASED ON THE SHORT-TERM RATE. p NOTE NO. 3: IF THIS COMPANY IS REQUESTED,TO DISBURSE FUNDS IN CONNECTION WITH THIS TRANSACTION, CHAPTER 598, STATUTES OF 1989 MANDATES HOLD PERIODS FOR CHECKS DEPOSITED TO ESCROW OR SUB -ESCROW ACCOUNTS. THE MANDATORY HOLD PERIOD FOR CASHIER'S CHECKS, CERTIFIED CHECKS AND TELLER'S CHECKS IS ONE BUSINESS DAY AFTER THE DAY DEPOSITED. OTHER CHECKS REQUIRE A HOLD PERIOD OF FROM TWO TO FIVE BUSINESS DAYS AFTER THE DAY DEPOSITED. IN THE EVENT THAT THE PARTIES TO THE CONTEMPLATED TRANSACTION WISH TO RECORD PRIOR TO THE TIME THAT THE FUNDS ARE AVAILABLE FOR DISBURSEMENT (AND SUBJECT TO COMPANY APPROVAL), THE COMPANY WILL REQUIRE THE PRIOR WRITTEN CONSENT OF THE PARTIES. UPON REQUEST, A FORM ACCEPTABLE TO THE COMPANY AUTHORIZING SAID EARLY RECORDING MAY BE PROVIDED TO ESCROW FOR EXECUTION. WIRE TRANSFERS PREUMBG9/23/93bk SCHEDULE B `• Page 4 (continued) Order No: 8810738 S32 Your Ref: 8950158 THERE IS NO MANDATED HOLD PERIOD FOR FUNDS DEPOSITED BY CONFIRMED WIRE TRANSFER. THE COMPANY MAY DISBURSE SUCH FUNDS THE SAME DAY. CHICAGO TITLE WILL DISBURSE BY WIRE (WIRE -OUT) ONLY COLLECTED FUNDS OR FUNDS RECEIVED BY CONFIRMED WIRE (WIRE -IN). THE FEE FOR EACH WIRE -OUT IS $25.00. THE COMPANY'S WIRE -IN INSTRUCTIONS ARE: WIRE -IN INSTRUCTIONS:: BANK: UNION BANK 2001 MICHELSON DRIVE IRVINE, CA 92714 BANK ABA: 122000496 ACCOUNT NAME: CHICAGO TITLE COMPANY IRVINE RESIDENTIAL ACCOUNT NO.: 9120052885 FOR CREDIT TO: CHICAGO TITLE COMPANY 16969 VON KARMAN IRVINE, CA 92714 FURTHER CREDIT TO: ORDER NO.: 008810738 p NOTE NO. 4: THERE ARE NO CONVEYANCES AFFECTING SAID LAND, RECORDED WITHIN SIX (6) MONTHS OF THE DATE OF THIS REPORT. R NOTE NO. 5: NONE OF THE ITEMS SHOWN IN THIS REPORT WILL CAUSE THE COMPANY TO DECLINE TO ATTACH CLTA INDORSEMENT FORM 100 TO AN ALTA LOAN POLICY, WHEN ISSUED. s NOTE NO. 6: THERE IS LOCATED ON SAID LAND A CONDOMINIUM KNOWN AS: 17202 CORBINA LANE, #201, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA PS/LMH REUMBGe/23/83bN r � . •.'ice`:. r`� ra+ _ s iG+X�y„�'r" -_ ' � w-s �"••'.LK;` '- _ c S 23 ' 4.6 �a = Z3�tb �.b, � e o• � 11.1 2A2 b n � �.r,• t+9' b', � ,+� s17-1 ad ti 14�T' �� T79' 0.ve'' H °• a rr , A � �ivsrati.�+¢E Trneq•F�U►rT TYPICm-Fle •�Tr TTnc4cFmUirrr 7r*+ALFDill .u1T 7TtIC+d. �RUL11T l �.i' 5.� • . r 1 C to r �, n cY s... IM TAho' 1,•� 3' A 'i' _ 36 O elt.11= 4 b R ILrf iGn ♦ 1i.11' E� ' • v r J -� � � 7 J � � � •� to bo tie Ltd um ift -F.06 0 '[Yrlc,al.1k.UuIr � �� I Trr�a�Pa4Uun i�nt�e. fntUlttT ~ r' �T/ILii. fe!\�urP Tt"nG;4 Z`sr. (J+IrT ~ TiTIU 4 Foe 11utT o ^. ,WIMS " v r e M 11 D 11A.0' II,Oi H.'yo' 1�1� I•H 1t1r11 VIA'65 . . I , j ICE, r � • r t�t°1b � � 2�sb 3 �: Zh1b �Ii r Z b (. 223b y tae L4,d5�' G - 2'+tt S '2hb g ?h � S . 'L}io 'S Z?� S • 22z, S W 0 n ' TRAcr ", ear 1 4------ 2-WAC = DORA00 rt L0CA7-C-DON A.P. V163-131-32 LOT 4 1.91 Ac. eti l I e •, r.sa \�1 ' LOT -T f ! ASSOCIATION 1 4\ i 1. 6.9 ACA:1 I 1 LOT 2 0 mAc 1 l [ ` i Axj'OC1.ft1ON I 1 I ; POWAIvTr 1 ! tl LOr3 I x! [41 - ,• l.09 AC -, I I 1 COT 6 f1 [! 1 / MR MGM w DRIVE Lor z.aroee.(el NO. 10853 'This plat is for maul aid in kva-, In. a your l nc iF; F?F�fe'lt [9 streets anti ct:,zr ps:c2ts. It is rc. a :;ur,ey. lr;;ii;e [t is ola[ Is believed to ba no-cct, ;he Comp:--av t--surres co li,jt)jh!y I,r s[ny loss oc:ilr[rg by CHICAGO -.=LE iNN-1 tr.1C,—Z tIO iPatiY ,s PRIVArt STAe27 s 0 Atta6190 Order No. 8810738 S32 LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY -1990 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, attorney's fees or expenses which arise by reason of: (a) 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; (ill) 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 any 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. (b) Any governmental police power 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) whether or not recorded in the public records at Date of Policy, but 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; or (a) resulting in loss or damage which would not have been sustained if the Insured claimant had paid value for the Insured mortgage or the estate or Interest insured by this policy. 4. Unenforceabillty of the llert of the insured mortgage because of the ability 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 any consumer credit protection or truth -In -lending law. g. Any claim, which arises out of the transaction vesting In the insured the estate or interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state Insolvency or similar creditors' rights laws. EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, aftornsys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, Interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens, or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts In boundary lines, shortage In area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims of title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. CLTASCP - 05/ 12195 AA 0 Attad90 Order No. 8810738 S32 AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) EXCLUSIONS In addition to the exceptions in Schedule B, you are not insured against loss, costs, attorney's fees and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or government regulation. This includes building and zoning ordinances and also laws and regulations concerning: • land use • land division • improvements on the land • environmental protection This exclusion does not apply to the violations or the enforcement of these matters which appear in the public records at Policy Date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning It, unless: • a notice of axe rclaing the right appears in the public records on the Policy Date • the taking happened prior to the Policy Date and Is binding on you if you bought the land without knowing of the taking 3. Title Risks: • that are created, allowed, or agreed to by you • that are known to you, but not to us, on the Policy Date - unless they appeared in the public records • that result In no loss to you • that first affect your title after the Policy Date - this does not limit the labor and material lien coverage In item 8 of Covered Title Risks 4. Failure to pay value for your title. 5. Lack of a right: • to any land outside the area specifically described and referred to In item 3 of Schedule A, or • in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage In Item 5 of Covered Title Risks. EXCEPTIONS FROM COVERAGE In addition to the Exceptions, you are not insured against loss, costs, attorneys' fees and expenses resulting from: 1. Someone claiming an interest in your land by reason of: A. Easements not shown in the public records B. Boundary disputes not shown in the public records C. Improvements owned by your neighbor placed on your land 2. If, in addition to a single family residence, your existing structure consists of one or more Additional Dwelling Units, Item 12 of Covered Title Risks does not insure you against loss, costs, attorneys' fees, and expenses resulting from: A. The forced removal of any Additional Dwelling Unit, or, B. The forced conversion of any Additional Dwelling Unit back to its original use, If said Additional Dwelling Unit was elther constructed or converted to use as a dwelling unit In violation of any law or government regulation. ALTART1P -- 05/ 12/05 AA 0 Aieed. to' Order No. 008810738 S32 AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10-17-92) WITH ALTA ENDORSEMENT -FORM 1 COVERAGE and AMERICAN LAND TITLE ASSOCIATION LEASEHOLD LOAN POLICY (10-17-92) WITH ALTA ENDORSEMENT - FORM 1 COVERAGE 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, attorney's fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (1) the occupancy, use, or enjoyment of the land; Ql) 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 any violations of these laws, ordinances of 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. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lion or encumbrance resulting from a violation or alleged violation affecting the land has been recorded In the public records at Data 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 Ilan of the insured mortgage over any statutory lien for services, labor or material or to the extent insurance is afforded herein as to assessments for street Improvements under construction or completed at Date of Policy); or (a) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the Insured mortgage 4. Unenforceability 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 any consumer credit protection or truth in lending law. 6. Any statutory lien for services, labor or materials (or the claim or priority of any statutory lien for services, labor or materiels over the lien 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 credltore' rights laws, that la based on: (i) the transaction creating the interest of the Insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (il) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (iii) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer: or (b) of such recordation to impart notice to purchaser for value or a judgment or lien creditor. The above policy forms may be Issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also Include the following General Exceptions: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result In taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons in possession thereof. 3. Easements, liens, or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. S. (a) Unpatented mining claims; (b) reservations or weptlons in patents or in Acts authorizing the issuance thereof; (a) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. ALTALP -- 05/ 12/95 AA 0 Attaceo Order No. 8810738 S32 AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10-17-02) and AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY (10-17-92) 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, attorney's fees or expenses which arise by reason of: 1. (a) 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; (ill) 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 any violations of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, Ilan or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power 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; or (a) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest Insured by this policy. 4. Any claim, which arises out of the transaction vesting In the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state Insolvency, or similar creditors' rights laws, that Is based on: (i) the transaction creating the estate or interest Insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or 00 the transaction creating the estate or Interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a Judgment or Ilan creditor. The above polloy forms may be Issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage Ina Standard Coverage policy will also include the following General Exceptions: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of; 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records, 2. Any facts, rights, interests at claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of persons In possession thereof. 3. Easements, liens, or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or In Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. ALTAOPEC -- 05/ 1 2/65 AA 0 0 RESOLUTION NO. o K A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH AUTHORIZING EXECUTION BY THE DIRECTOR OF ECONOMIC DEVELOPMENT OF LOAN AGREEMENTS FOR LOANS FUNDED BY HOUSING SET ASIDE MONIES WHEREAS, the City Council of the City of Huntington Beach has approved an Affordable Housing Program; and The City Council has authorized the Director of Economic Development to administer the program; and The preparation of certain documentation is necessary in order to implement the program and comply with regulations which govern the use of housing set aside funds in order to implement the redevelopment plan and subsidize low and moderate income households to the extent those households cannot obtain housing at affordable costs on the open market; NOW, THEREFORE, BL'IT RESOLVED by the Redevelopment Agency of the City of Huntington Beach as follows: SECTION 1. The Director of Economic Development, or his/her designated representative is hereby authorized to sign all documents necessary and appropriate to carry out and implement the Affordable Housing Program and execute loan agreements using housing set aside funds for first-time homebuyers who qualify as persons of low or moderate income. SECTION 2. A loan agreement prepared by the City Attorney is attached hereto and incorporated into this resolution by this reference. Said agreement is hereby approved for use in the administration of loans using housing set aside money for downpayment or other assistance to low and moderate income households. SECTION 3. The Director of Economic Development is directed to submit to the Redevelopment Agency for approval the names of the loan 7lselasidel1011119303:26 PM 1 0 E applicant, the location of the housing, the amount of the loan, and any unique features of the loan or the housing which might be required, prior to execution of loan agreement or other documents in compliance with Huntington Beach City Charter Section 613, "Execution of Contracts." SECTION 4. The Agency finds that the Agreement is categorically exempt under CEQA, pursuant to Section 15326 of the Guidelines to the California Environmental Quality Act. SECTION 5. The Agency finds and determines that expenditures from the Housing Fund as contemplated by the Agreement will directly and specifically benefit, improve, and preserve the community's supply of lower income housing within the meaning of Section 33334.2 of the California Health and Safety Code. SECTION 6. The Agency finds and determines that expenditures from the housing fund as contemplated by the loan agreement are of benefit to the Redevelopment Project Areas. PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof held on the day of 1993. Chairman ATTEST: APPROVE AS TO FORM: Agency Clerk Ipa�' �3 CAunsei��1�3 REVIEWED AND APPROVED: INITIATED AND APPROVED: Executive Direc r De uty City Administrator) Director of Economic Development Vsetaside/1Oil 1/0303:26 PM 0• * • proposed sale pursuant to the Loan Agreement, the identity of the proposed Buyer and adequate information evidencing the income of the proposed Buyer. Said income information shall include original or true copies of pay stubs, income tax records or other financial documents in order that the Beneficiary may determine and verify the household income of the proposed Buyer to determine Eligible Person or Family status and whether the Property is available to such Buyer at affordable housing cost. If the Beneficiary is unable to verify the Buyer's income as provided herein, then the Buyer's income shall be deemed to exceed the maximum allowable income limit for Eligible'Persons and Families and the Equity Share Amount shall be due and payable concurrent with the repayment of the Note Amount plus interest. In the event that sale or transfer is made to an Eligible Person or Family, interest which has accrued at the time of the sale (upon close of escrow) shall be due and payable, unless the Property has appreciated in value in an amount which would be equal to or less than the value of the Property if the appreciation rate had been five per cent (5%) per year over the original price paid by the Trustor. If the price of the Property upon sale to ap Eligible Buyer reflects less than 5% appreciation per year over the price paid by the Trustor at the time of original purchase, then no interest will be due upon such sale. Interest will begin to accrue at the simple rate of five percent per annum as to the new owner, on the date upon which escrow closes and will accrue on the then unpaid principal amount. 6. Subordination. The Beneficiary has found and declared that an economically feasible method of financing, refinancing or assisting first time homebuyers pursuant to the Program on substantially comparable terms and conditions without subordination is not reasonably available. Any first lien on the Property ("First Lien") held by an institutional lender or investor (the "Lender") shall be prior and superior to the Declaration and this Deed of + Trust. Thus, in the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the 7 71r6a nd ecla gcyri dr; 07/12/94 Trustor's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Trustor or a related entity of the Trustor), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Prdperty free and clear from such restrictions. 7. Obligation to Refrain from Discrimination. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Beneficiary 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 of the City or any portion thereof. Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the Trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1) the First Lien; 2) the Declaration of Covenants, Conditions & Restrictions for Affordable Housing; and 3) the Agency Deed of Trust. 0 7lloando cfag cyrid•,07! 12194 ISC tTY OF HUNTINGTON BEAM MEETING DATE: April 15, 1996 DEPARTMENT ID NUMBER: 96-001 Council/Agency Meeting Held: Li —1 —Gt C, Deferred/Continued to: Aproved J Conditionally Approved ❑ Denied YPLA City Cier 's Ignature Council Meeting Date: April 15, 1996 Department ID Number: 96-001 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL/REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL Res 9� -;� SUBMITTED BY: CONNIE BROCKWAY, CITY CLERKICLERK-, DAVID BIGGS, ECONOMIC DEVELOPMENT DIRECTOR/REDEVELOPMENT DIRECTOR PREPARED BY: CONNIE BROCKWAY, CITY CLERK/CLERK Lt SUBJECT: RESOLUTIONS ADOPTING THE POLICIES AND PROCEDURES MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM AND ACCEPTANCE OF LOAN AGREEMENTS FOR OFFICIAL FILING Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Envirpnrpental Status, Attachment(s) Statement of Issue: The City Council/Redevelopment Agency is requested to accept and authorize the City Clerk/Clerk to officially file on behalf of the City, 18 Down Payment Assistance Loan Program Agreements which pursuant to previous direction of the City Council, have been repaired to protect the interests of the city. The City Council/Redevelopment Agency is also requested to approve the Policies and Procedures Manual for the City of Huntington Beach/Redevelopment Agency Down Payment Assistance Loan Program for staff use in future assistance programs. Funding Source: None required. Recommended Action: 1. Authorize the City Clerk/Clerk to file on behalf of the City Council/Redevelopment Agency the 18 Down Payment Assistance Loan Program Agreements, as repaired to protect the city's interests pursuant to the previous direction of the City Council. �] CK96001 M.DOC -2- 04/01/96 5:04 PM REQUEST FOR CIPY COUNCILIREDEVELOPMEWT AGENCY ACTION MEETING DATE: April 15, 1996 DEPARTMENT ID NUMBER: 96-001 AND 2. Adopt Council Resolution No. 96-29 and Agency Resolution No. 273 adopting the Down Payment Assistance Loan Program Policies and Procedures Manual prepared by Kristine Price, Auditor, and direct that any substantial revisions to the manual be approved by the City Council/Redevelopment Agency. Alternative Action(_s): Council/Agency may approve the manual with any revisions deemed necessary by Council. Analysis: At the request of the City Clerk's Office and pursuant to City Council/Redevelopment Agency direction on March 20, 1995, repair work has been completed on 18 Down Payment Assistance Loan Program Agreements consisting of 27 notes with an aggregate outstanding balance of.$400,826. Kristine Price, outside auditor, has reviewed the repair work and has provided the city with a Letter of Satisfaction stating the city has taken the necessary steps to protect its interests through the appropriate correction of document errors and the creation of a Policies and Procedures Manual. The City Attorney's Office has confirmed by letter that the loan agreement files have been sufficiently repaired to protect the city. During the audit and following the audit, Kristine Price, Auditor held productive meetings with staff prior to preparing a Policies and Procedure Manual that meets our city's needs. With revisions from time to time, this manual will serve our city well. [It should be noted that the manual provides that any substantial revision to this manual shall be approved by the City CouncillRedeve] opment Agency.] The audit agreement that the City Council approved between the City and Kristine Price included the auditor conducting a training session with city staff. This session was not held due to Economic Development Department personnel turnover. The auditor deducted this from the agreement's final. billing cost. However, the training session is available at such time as the city may require. Attachments: 1. Two communications from Kristine D. Price, Auditor, dated 9/10/95 & 12/26/95 2. Communication from the City Attorney dated 11/30/95 3. City Council Resolution No. 96-29 "A Resolution Of The City Council Of The City Of Huntington Beach Adopting The Policies And Procedure Manual For Down Payment Assistance Loan Program." 4. Redevelopment Agency Resolution No. 273 "A Resolution Of The Redevelopment Agency Of The City Of Huntington Beach Adopting The Policies And Procedures Manual For Down Payment Assistance Loan Program." 5. Policies and Procedures Manual CK96001 M.DOC -3- 04/05/96 1:19 PM RESOLUTION NO. 96_29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING THE POLICIES AND PROCEDURE MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM WHEREAS, the City Council of the City of Huntington: Beach desires the preparation of uniform policies and procedures for administrating of the City's Down Payment Assistance Loan Program; and The City contracted the professional services of Kristine D. Price for the purpose of auditing the loan program and creating a manual for staff to utilize when processing loan documentation; and Said manual containing uniform standards, procedures and policies for implementation of the loan program has been prepared; NOW, THEREFORE, IT IS HEREBY RESOLVED that the City Council of the City of Huntington Beach adopts the Polices and Procedure Manual for Down Payment Assistance Loan Program dated September 1, 1995, for use by City staff in implementing the program. BE IT FURTHER RESOLVED that any material revision to the manual be approved by the City Council. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at an adjourned regular meeting thereof held on the 22nd day of „ April _ _ 1996. ATTEST: G City Clerk Mayor APPROVED AS TO FORM: foe City Attorney gg rr Vtb INITI TED AND APPROVED: Director of Economic Development 4xw,, CITY CLERK /AGEN7 CLERK 7/k/downpay/3/19196 1 Res. No. 96-29 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH } I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-oEficio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an adjourned regular meeting thereof held on the 22nd of February, 1996 by the following vote: AYES: Council members: Harman, Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo NOES: Councilmembers: None ABSENT: Councilmembers: None egw� d?44V� . City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California G/resoluti/reshkpg 0 • RESOLUTION NO. 273 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH ADOPTING THE POLICIES AND PROCEDURE MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM WHEREAS, the Redevelopment Agency of the City of Huntington Beach desires the preparation of uniform policies and procedures for administrating of the Agency's Down Payment Assistance Loan Program; and The City contracted the professional services of Kristine D. Price for the purpose of auditing the loan program and creating a manual for staff to utilize when processing loan documentation; and Said manual containing uniform standards, procedures and policies for implementation of the loan program has been prepared; NOW, THEREFORE, IT IS HEREBY RESOLVED that the Redevelopment Agency of the City of Huntington Beach adopts the Polices and Procedure Manual for Down Payment Assistance Loan Program dated September 1, 1995, for use by Agency staff in implementing the program. BE IT FURTHER RESOLVED that any material revision to the manual be approved by the Redevelopment Agency. P,�SS �I�AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at : guImg thereof held on the 22nd day of AZr; I 1996. ATTEST Chairman Agency Clerk RE AND APPROVED: Executive ~rector APPROVED AS TO FORM: YA fo/Agency Counsel C)4 INITI ED AND APPROVED: c- Director of Econom c Development 23%ocl6vw,. CITY CLERK/AGENCY LERK 7/k/downpay/3/19/96 2 Res. No. 273 STATE OF CALIFORNIA ) COUNTY Off' ORANGE.. ) CITY OF HINTINGTON BEACH ) I, CONNIE BROCKWAY, CIerk of the Redevelopment Agency of the City of Huntington Beach, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Huntington Beach at an adjourned regular meeting of said Redevelopment Agency held Gn the 22nd day of April,1996 and that it was so adopted by the following voto; AYES: Members: Harman, Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo NOES; Members: None ABSENT: Members; None Clerk of the Redevelopment Agency of the City of Huntington Beach, Ca. G/resoluti/resKI)g2 Office of the Director Housing Redevelopment Fax August 28, 1995 City of Huntington Beach 2000 MAIN STREET CALI FORNIA 92648 DEPARTMENT OF ECONOMIC DEVELOPMENT 536-5582 536-5542 536-5582 (714) 375-5087 C^ M -a co Nicholas M. Kormeluk Ut 17202 Corbina Lane #201 Huntington Beach Ca. 92649 SUBJECT: Promissory Note Dated 12/29/92 Dear Mr. Kormeluk: It has come to our attention that a typographical error was made on the Promissory Note made to you dated 12/29/92 in the amount of Ten Thousand Six Hundred Dollars ($10,600.00). The typographical error was in the date. The date should read 12/29/93. The error is on the first page second line, date of promissory note. The second error is on the first page, third paragraph (Affordable housing agreement) fifth line. These changes will have no impact on the loan agreement. If you have question or concerns concerning, you can contact me at (714) 536-5901. Sincerely, aniel E. ruening Housing Rehab Manager xc: Connie Brockway, City Clerk r Please Sign and return to the City in the enclosed Envelope. x Nicholas M. Kormeluk DEe:ee GVetter*ormeluk.doc A SEp HAM ,_� � � 1595 ' err °� ku�T NpR��R�M r0N. pn,j City of Huntington Beach E 2000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Office of the Director 536-5582 Housing 536-5542 Redevelopment 536-5582 August 28, 1995 (714) 375-5087 Nicholas M. Kormeluk 17202 Corbina Lane #201 Huntington Beach Ca. 92649 SUBJECT: Promissory Note Dated 12/29/92 Dear Mr. Kormeluk: It has come to our attention that a typographical error was made on the Promissory Note made to you dated 12/29/92 in the amount of Ten Thousand Six Hundred Dollars ($10,600.00). The typographical error was in the date. The date should read 12/29/93. The error is on the first page second line, date of promissory note. The second error is on the first page, third paragraph (Affordable housing agreement) fifth line. These changes will have no impact on the loan agreement. If you have question or concerns, you can contact me at (714) 536-5901. Sincerely, Daniel E. Bruening Housing Rehab Me xc: Connie Brockway, City Clerk Please retain for your records. DEB:ee DRAUSE d /r) *Yc G, V-0-n v-D 67T 2) vk-*3-� 1131IF Recording Requested y And When Recorde eturn To: City of Huntington each 2000 Main Str Huntington B ach, CA 92648 Attn: t I t,// CleeK r�r9l�y T ('oirloann t .51,eue P-d,r6r `t )norm. c. -t)euelof,.o„* I 4i—od by LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 29th day of December , 19 93 by and between NICHOLAS M. KORMELUK, A SINGLE MAN ("Participant") and THE CITY OF HUNTINGTON BEACH, a municipal. corporation ("City"). SF--Q1TAL§ A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as 17202 r'nrhi.Qa r.anA ?nl 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 afety Code Section 50093. C. Participant has represented to City that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. City desires to utilize Community Development Block Grant funds in a manner consistent with federal guidelines to assist persons of low and moderate income to purchase residential property to increase, improve, and 7Uoank%83095B04.25 Phi preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach. E. The City 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. Cfty Loan City shall loan to Participant (the "Loan") the amount of TEN THOUSAND SIX HUNDRED DOLLARS Dollars ($ $10, 600. 00 , subject to the conditions and restrictions set forth herein, in the Promissory Note, the Disclosure Statement for the Program, the Deed of Trust and all applicable State, local and federal law. The Loan shall be paid to the seller of the Property (the "Seller") by the City through deposit of the Loan proceeds into escrow with Hallmark Escrow Inc. (the "Escrow Agent") (Escrow No. 308 . The City shall direct the Escrow Agent to apply the proceeds of the 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 City a promissory note in favor of the City as holder, in the amount of the Loan, due in the event that Participant fails to comply with the terms of this Agreement, substantially in the form of the "Promissory Note" attached hereto as Exhibit "B" and incorporated herein. Participant shall also execute and deliver to the City a deed of trust encumbering the Property which shall secure the Promissory Note (the "Deed of Trust"), in the form of Exhibit "C" attached hereto and incorporated herein. 2. Maintenance of Property. 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. 2 7uoank%830931©04_25 PM • • 3. Acceleratio n/Due_ on Sale. The Loan and all interest accrued thereon shall be due and payable upon (i) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (ii) the' refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any authorization period longer than the loan secured by the First Mortgage, or (iv) is in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the property, or (v) Participant violates any condition of the deed of trust or promissory note, or (vi) the death of Participant (unless the Participant's household, occupying the property, contains more than one qualified participant and at least one qualified participant survives). At the request of Participant, the City may, in its sole discretion, extend the term of the Loan. 4. Notice to Ci#y. Participant agrees to notify the City not less than thirty (30) days prior to (i) the sale or transfer of the Property or (iD-any refinancing of the lien of the Deed of Trust or any lien to which the lien of the Deed of Trust is subordinate (the "First Mortgage"). 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 City prior to execution of this Agreement. Participant represents and warrants to the City that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the City 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. First Time H-omebuye . Participant represents and warrants to the City that neither Participant nor any of Participant's immediate family residing in the Property has, or has had, a present ownership interest in a principal residence at any time during all or any part of the three (3) years immediately prior to the funding of the City Loan. 3 ?voark%83093:80a 25 PM 8. Loa Servicing. The City may contract with a private lender to originate and service the City Loan. 9. Participant FinandDg- Participant shall obtain financing for the purchase of the Property from a reputable institutional lender approved by the City (the "Lender"). The lien secured by the 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 own resources and not from the proceeds of a loan. 10. Covenants. Recorded iu the Official Records of Orange County, California, may be a declaration of conditions, covenants and restrictions for property, which is known as an Affordable Housing Agreement or covenants which may be attached as Exhibit "D" hereto and incorporated herein. if such a document is recorded on the property, 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 the Affordable Housing Agreement, 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, all as set forth in the Affordable Housing Agreement. Y c affordable housing covenant Vis ❑ is nbt (Borrower's initials l� livable to thisproperty. p 11. Non -Waiver. Failure to exercise any right the City 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. 12. Indemnification. The Participant shall defend, indemnify and hold harmless the City of Huntington Beach and its respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property of 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 City to make such payments, by virtue of the Loan. 4 74'Oank183093.,804'25 PM n 13. Insurance. Participant shall maintain, during the term of the City Loan, an all-risk property insurance. policy insuring the Property in an amount equal to the fullreplacement value of the structures on the Property. The policy shall name the City as loss payee and shall contain a statement of obligation on behalf of the carrier to notify the City of any material change, cancellation or termination of coverage at least thirty (30) days in advance of the effective date of such material change, cancellation or termination. Participant shall transmit a copy of the certificate of insurance and loss payee endorsement to City within thirty (30) days of the effective date of this Agreement, and Participant shall annually transmit to City a copy of the certificate of insurance and a loss payee endorsement, signed by an authorized agent of the insurance carrier setting forth the general provisions of coverage. The copy of the certificate of insurance and loss payee endorsement shall be transmitted to City as follows: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Housing Department Any certificate of insurance must be in a form approved by the City Attorney. 14. 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. F 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 to 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. 6 7wankMOUIB04.25 PM 15. Documents. Participant is aware that the City has prepared certain documents to implement the Program and secure repayment of the Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Loan: (a) Disclosure Statement (b) Promissory Note; (c) Deed of Trust; and (d) The Affordable Housing Agreement (Exhibit "D") (e) Notice of Right of Recission Participant agrees and acknowledges that the Deed of Trust, Loan Disclosure Statement and the Affordable Housing Agreement 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.) Participant further agrees to all terms and conditions set forth in the Disclosure Statement which is hereby incorporated as if fully set forth herein. 16. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the City shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Loan. 17. 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. 18. Amendment of Agreement. No modification, recission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and City. 19. City May Assign. City may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 6 Noank1630931304-25 Pad Ll 0 20. Participant Assignment Pro iibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the City, which consent may be given or withheld in the City's sole discretion. No assumption of the Loan shall be permitted at any time. This section shall not prohibit the City's right to assign all or any portion of its rights to the loan proceeds hereunder. 21. Entire Ag[Qemg]]li. 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 City and the Participant concerning all or any part of the subject matter of this Agreement. 22. Relationship of Participant and City. The relationship of Participant and City pursuant to this Agreement is that of debtor and creditor and shall not be, or be construed to be a joint venture, equity venture, partnership, or other relationship. 23. Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: 7 MoarM83043.004'25 PM U • To participant: To City: Nicholas M. Kormeluk 17202 ['nrhi na Tana 4 2ol Huntington Beach, California 92649 City of Huntington Beach Attention: Housing Department 2000 Main Street Huntington Beach, CA 92648 Either party may change its address for notice by giving written notice thereof to the other party. 24. Term of -Agreement. Except as may be provided herein, the term of this Agreement is five (5) years commencing on the date of execution. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. "PARTICCII PA Date: I Z z `' By:./ PrintNa e: laic lnoIc, /j�+r✓r►e1�� Title: Date: By: Print Name: Title: Date: CITY OF HUNTINGTON BEACH, a m cipal corporation . httBy: -- Print Name: U1,A T. " i. --L- w 0-- its, APPROVED AS TO FORM: By: eI QAIL HUTTON, City Attorney �g/q 7%1oank183093'B04:25 PM r *Et"M SIG REQUESTS BY: COMMONWEALTH LAN16 TITLE Recording Requ And When Rece City of Huntingt 2000 Main S e Huntington eat Attn: BY d Retum To: Beach , CA 92648 ,�--- 70 Imo' S+jug, jZ4J�- ivy pk al Property Address: 17202 Corbina Lane # 201 untington ac , California 92649 CITY OF HUNTINGTON BEACH LOAN ASSISTANCE DISCLOSURE STATEMENT I/We Nicholas M. Kormeluk ("Applicant") understand and agree that the provision of financial assistance from The City of Huntington Beach ("City") is conditioned upon a number of factors, including, but not limited to: • IMIe must qualify for a home loan from an institutional lender acceptable to the City. • VWe must pay at least 9. 5 % of the home purchase price from our own funds. • I/We must qualify for assistance under the guidelines of the City's Program. I/We further understand and agree that: I/VVe will be responsible for repaying the loan at the time I/we sell, transfer, refinance, or no longer occupy my/our home, or breach any part of the Loan Agreement. • I1We 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 rescind or cancel the loan to: City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 Attn: Housing Department 7%d i sc1s1OW28;93 The City 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 if 11we do not comply with the terms of the agreement to which this statement is attached. 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 esckw 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 City shall not be held responsible for any costs associated with the institutional loan for the home Ilwe 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 properly. • The City cannot ensure that information provided by or on behalf of Applicant will be kept confidential. • The City 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 City shall not be charged with knowledge of the contents of the documents of the primary lender. 2 7Wisds%09128193 '1 10 0 0 • The City financial assistance I/we receive under this Program may be considered to be income for purposes of federal or state income taxes and the City shall not be held responsible for the payment of any taxes which llwe may incur by virtue of the receipt of such financial assistance. Dated: Signature of applicant - Nicholas M. Kormeluk Dated: Signature of applicant Dated: Signature of applicant APPROVED AS TO FORM: y Attorneys r 53 3 7%d i sc 1s5R9!2R!9} �ktGth etc, PROMISSORY( NQTE Property Address 17202 Corpina Lae #201 Huntington Beach, California 121129492 _ , 1993 1. Promiseoo Pay. Nicholas M. Kormel.uk ("Borrower") promises to pay THE CITY OF HUNTINGTON BEACH, a municipal corporation ("Holder," also referred to as "City"), at the office of the City in Huntington Beach, California, or at such other place as the Holder may designate in writing, the principal sum of TEN THOUSAND SIX HUNDRED DOLLARS Dollars {$1�, �nni tie "Note Amount"). The funds used by the City shall be exclusively Community Development Block Grant funds. 2. Interest RateSimple interest shall be charged by the City on the portion of the Note Amount remaining unpaid from time to time, from the date of the disbursement of the Note Amount until the date which is five years from the date of the disbursements of the Note Amount, at the rate of zero percent (0%) per annum. 3. Affordablp Housing Agreement This Promissory Note is made and delivered pursuant to and in implementation of an Affordable Housing Agreement recorded on the property as a covenant binding upon Borrower (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference, and a Loan Agreement between Borrower and City dated 12/29/92 . This promissory note is attachment "B" to the Loan Agreement. 4. Acceleration The whole of the Note Amount, any interest accrued thereon, and all other payments due hereunder and under the Agreement shall, at the option of the Holder, become due and be immediately payable to the Holder by the Borrower upon the occurrence of any one of the following events: (a) Borrower sells or transfers the Property, including, without limitation, leases, exchanges or rents the Property or any interest therein, whether voluntary or involuntary; (b) Borrower refinances any lien or encumbrances to which the City Deed of Trust is subordinate for loan amount in excess of the then current loan balance secured by such lien or encumbrance; (c) Borrower fails to occupy the Property as Borrower's principal residence pursuant to the Loan Agreement or is in default of any other obligation under the Agreement or violates the terms of the Affordable Housing Agreement; (d) The close of a probate estate following the death of Borrower (unless Borrower is more than one person and one or more of the other people comprising Borrower survive); (e) Borrower defaults on this Promissory Note; page 1 of 3 pages 71note110107i931B (f) Borrower defaults on the City Deed of Trust; 5. application of Payments Any sums received hereunder may, at the options of Holder hereof, be applied in any order to the payment of costs, interest, or principal due hereunder. 6. Prepayment Privilege is reserved to make prepayments of principal on this Note without penalty or fee. 7. on -Waiver Failure to exercise any right the Holder may have or be entitled to, in the event of any default hereunder, shall not constitute a waiver of such right or any other right in the event of subsequent default. & Waiver of Presentment,etc. The Borrower and all guarantors and endorsers hereof hereby severally waive presentment for payment, protest and demand, notice of protest, demand and of dishonor and nonpayment of this Note and consent that the Holder hereof may extend the time of payment or otherwise modify the terms of payment of any part or the whole of the -debt evidenced by this Note, by agreement between the Holder and Borrower; and such consent shall not alter or diminish the liability of any person or the enforceability of this Note. Each and every party signing or endorsing this Note binds itself as a principal and not a surety. In any action or proceeding to recover any sum herein provided for, no defense of adequacy of security, or that resort must first be had to security or to any other person shall be asserted. All of the terms, covenants, provisions, and conditions herein contained are made on behalf of, and shall apply to and bind, the undersigned and its successors and assigns, jointly and severally. If any attorney is engaged by the City to enforce or construe any provision of this Note or the Deed of Trust, or if the City incurs any other expense by virtue of collecting sums due to the City under this Note, as a consequence of any default or event of default hereunder, with or without the filing of any legal action or proceeding, then Borrower shall immediately pay upon demand all attorney fees and all other costs incurred by the City, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal owing hereunder as if such unpaid attorney fees and costs have been added to the principal. 9. Security of Note This Note is secured by a Deed of Trust (The "Deed -of Trust") of even date herewith executed by Borrower covering property located in Orange County, State of California, together with the buildings and improvements now or hereafter erected thereon. 10. Maximum Interest No provision of this Note or any instrument securing payment hereof or otherwise relating to the debt evidenced hereby shall require the payment or permit the collection of interest in excess of the maximum permitted by applicable law. if any excess of interest in such respect is herein or in such other instrument provided for, or shall be adjudicated to be so provided for herein or in any such instrument, the provisions of this paragraph shall govern, and neither Borrower or any endorsers of this Note nor their page 2 of 3 pages 7lnote11010719316 0 0 respective heirs, personal representatives, successors or assigns shall be obligated to pay the amount of such interest to the extent it is in excess of the amount permitted by applicable law. 11. Busine$s Pu Mose - The undersigned warrants and represents that all funds advanced under this Note shall be applied and are intended solely for personal, family or household purposes as set forth in the Agreement and not for any business or commercial purposes. 12. Notice Any demand or notice to be made or given under the terms hereof or any instrument now or hereafter securing this Note by the Holder to Borrower shall be effective when mailed or delivered in the manner specified in the Deed of Trust. 13. Default in the event that there is a default in payment as scheduled herein or a default under the terms of the Deed of Trust securing this Note, or a default of the Agreement or in any other instrument executed by Borrower or any guarantor in favor of the City, may at its elections and without further notice, declare all amounts of the outstanding principal and accrued interest thereon immediately due and payable. below. DATE: IN WITNESS HEREOF, this instrument has been executed as of the date set forth SIGNA "Borrower" Nicholas M. Kormeluk DATE: By "Borrower" HE CITY OF HUNTINGTON BEACH B �t Its: 1TH AUr�ird�'zi,�►7 rr!1Z. _ APPROVED AS TO FORM: Attorney i-+r �'�.,►- 13 3 10 1 L" page 3 of 3 pages 71notell010719315 i RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Redevelopment Agency of the City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Attn: A 01�t roil/ o19-L. 6 r ve-n rz) 6'2cs ;)Ij.P An I.C�•Jr V 1•�LLrf U'a rt �Ir:'�'= iwr :%r;ty_ �,.ySitF"I.�L [Space Above This Line For Recorders Use.1 This document is exempt from recording fees pursuant to Government Code Section 6103_ 14 i-- pEED OF TRUST WITH ASSIGRMENLS OF —RENTS i December THI?g PpEED OF TRUST is made this Z� 3y of , 1993, by and among ' Nicholas M. Kormeluk, a single man 1720Z- r ina Lane # 201, Huntington _ whose address is (the "Trustor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON ach, Ca192b49ic BEACH, a public body corporate and politic (the "Trustee") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (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 afraid property secured by a lien thereon or payable under any agreement. A. FOR THE PURPOSE OF SECURING: Payment of the sum. of $10, 600- 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 71QEE0RENT1091301931B Page 1 of 9 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 T.Fystor co ined herein in the Loan Agreement between Beneficiary and Trustor dated 1993, and in that certain Affordable Housing Agreement currently recorded on the property, 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: 1. 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 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 T%0EEDRrzN'R091301931B Page 2 of 9 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 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, shalt 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 dome, all special assessments for public improvements, without permitting 71DEE0REN-RO9/28/931B Page 3 of 9 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, (0 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. 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, 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 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 N)EEDREMA0912819318 Page 4 of 9 0 . 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 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 Agency 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 Agency any duty to produce rents from the property affected by this Trust Deed, or cause Agency 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 71DEEDRENT109128193IF3 Page 5 of 9 0 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. Agency 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 Agency 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 Agency or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Agency 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 'personaify 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, shah 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 71DEEDRENT109128l9318 Page 6 of 9 0 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. It 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_ 70EEORENT10912819318 Page 7 of 9 0 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 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 pledgee, of the Note secured hereby, whether or not names 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, at Beneficiary's request, monthly, on or before the 15th day of each month, a written operational report. Such operational report shall contain a brief but complete statement of the month'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. 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 7%DEEDREh1-10913019318 Page 8 of 9 0 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 STATE OF CALIFORNIA County of Q2A.NCnE On f me, t slpn�t a Not Public In and for said State, personal) appeared IRC�, nallyknown to me or proved to me on the basis of satisfactory evidence to be the persons) whose names) jra,o subscribed to the within Instrument and acknowledged to me thatttshe/they executed the same in eNtheir authorized capacity(les), 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. KAREN ANNE I(E--EN NOTARY PU81IC . CALIFORNIA ORANGE COUNTY COMM pies April 19. I994 �r - cholas M. Kormeluk By: TRUSTEE: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH By. Title: APPROVED AS TO FORM: CitAttorney dl' y- 3d - f 3 710EEQREJT\09l28193113 Page 9 of 9 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 hereinbefore set fo,ih. BENEFICIARY: THE CITY OF HUNTINGTON BEACH TRUSTEE: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH By. Title: APPROVED AS TO FORM: City Attorney OV TRUSTOR: 1 � V By: Nicholas M. Kormeluk By: By: MEEDRENT 09128193113 Page 9 of 9 Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1) the first Lien; 2) The Declaration;and 3) the Deed of Trust. The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the First Lien Deed of Trust or mortgage requesting a statutory notice of default as set forth in the California Civil Code. TRU OR'S SIGNATURE Nicholas M. Kbraleluk TRUSTOR'S SIGNATURE THE CITY OF HUNTINGTON BEACH A77cr-r. LLIFORNIA ALL-PURPOSE ACKNOWLEDGMENT "3tate of C �. i Q,ounty of Z-cf�l do before me, CAE 4413AVIITLE Personally appeared -M-Q10i ter aiUNtrV " (personally known to me • OR ❑ Bence to be the person(%twhose name* is/are- subscribed to the within instrument and ac- knowledged to me that4Wshe/t#e�c executed OFFICIAL SEAL the same in #is/herJfl;ek authorized s, JUDY RtCHARDS Capacity(+es}, and that by-#+s/her/thek Notary Fu E COUNTY signature(-* on the instrument the erson ORANGE COUMY 9 (e} p (3}, My Comm[sOon Exx*ee or the entity upon behalf of which the Navember 3, 1995 1 person(s} acted, executed the instrument. WITNESS my hand and official seal. PNATI�IRE OF NOTARY NO. 5' 93 ■�� OPTIONAL SECTION CAPACITY CLAIMED BY SIGNER Though slat4te does not require the Notary to fill in the data below, doing so may Prove invaluable to persons relying on the document. Ej INDIVIDUAL CORPORATE OFFICER(S) TITLE(S) PARTNER(S) LIMITED Q GENERAL. ATTORNEY -IN -FACT ❑ TRUSTEE(S) GUARDIANiCONSERVATOR OTHER: _ SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITYI1ESj OPTIONAL SECTION THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT THE DOCUMENT DESCRIBED AT RIGHT: _ Tnough the cola roauesied here's no: raquirgd by law, NUMBER OF PAGES DATE OF DOCUMENT ir ccu d p-even: 1rauduleri rea:tacF men: of ctiis form. SIGNER(S) OTHER THAN NAMED ABOVE 6*1993 NATIONAL NOTARY ASSOCIATION • 8236 Remrnet Ave., P.O. Box 7184 • Canoga Park, CA 91309-7184 0 DRU(b1nt-L, Q ✓ems This City of Huntington Beach Deed of Trust is subject to the terms and conditions of that certain Loan Agreement entered into by and between Beneficiary and Trustor dated _1212q 19 93 to which this rider is attached as Exhibit "C" and incorporated by reference ("the Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of $10, 600. 00 Dollars ($ l0, 600. 0()--he "Loan Amount") with interest at Ot yearly. All terms in this Rider to City of Huntington Beach Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. 1. Acceleration/Due_on Sale. The Loan and all. interest accrued thereon shall be due and payable upon (i) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, Ui) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any authorization period longer than the loan secured by the First Mortgage, or (iv) is in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the property, or (v) Participant violates any condition of the deed of trust or promissory note, or (vi) the death of Participant (unless the Participant's household, occupying the property, contains more than one qualified participant and at least one qualified participant survives). At the request of Participant, the City may, in its sole discretion, extend the term of the Loan. 2. Occupancy-S-tandards. 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. I Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1) the first Lien; 2) The Declaration;and 3) the Deed of Trust. The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the First Lien ALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of- County of 1! QI st n! . G !Ar Y S/1 Onbefore me, �� �"� a.. �� -� 436�,7 NAME. TITLE OF qy ICER - E.G. -JAE:'�. NOT PUBLIC' personally appeared, 7-a, i4zrni NAMESI OF SIGNER(S) (R-j%rsonally known to me eR - to be the person(-&} w,ose name{ isAaft& subscribed to the within instrument and ac- knowledged to me that hWsheAhey-executed the same in-hWherAWe4 authorized MAYBMCE L JOHNSON capacity(iesj, and that by 4"herA+i e4f comm. #991us signature(oon the instrument the person, ' Notary Public -- California .. ORANGE COUNTY or the entity upon behali of which the My Comm. fiirew MAY 11. 1997 person(•&) acted, executed the instrument. 4 WITNESS my hand and official seal. _ l! lN&A21 J SIGNATURE O OTARY OPTIONAL SECTIO THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT THE DOCUMENT DESCRIBED AT RIGHT' No. 5193 OPTIONAL SECTION rlllll� CAPACITY CLAIMED BY SIGNER Though statute does not require the Notary to fill in the data below, doing so may prove invaluable to persons retying on the document- [3 INDIVIDUAL v�CORP RATE OFFICER(S) TITLE(5) PARTNER(S) [] LIMITED . [3 GENERAL ATTORNEY -IN -FACT r] TRUSTEE(% �] GUARDIAN/CONSERVATOR OTHER-. SIGNER IS REPRESENTING: NAME OF PERSONS) 0 ENTITY IFS) NUMBER OF PAGES_ 1DATE QF DOCUMENT Though the data requested here is not required by law, it could prevent fraudulent reattachment of this form, SIGNER(S) OTHER THAN NAMED ABOVE C-1992 NATIONAL NOTARY ASSOCIATION • B238 Remmet Ave., P.O. Box 71 B4 • Canoga Park, CA 91309-7184 November 3, 1995 � -,--•• 11"11 �- rriIIL:iI the g,. person(s} acted, executed the instrument. WITNESS my hand and official seal. SIGNER IS REPRESENTING: NAME OF PERSON{$) OR ENTITYpE$) j� PrGtiATURE OF NOTARY THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OFIONAL DOCUMENTION THE DOCUMENT DESCRIBED AT RIGHT. Though tha data requested here is rot required by law, NUMBER OF PAGES DATE OF DOCUMENT it could prevent fraudulent reattachment of this form. SIGNER(SI OTHER THAN NAMED ABOVE ti1993 NATIONAL NOTARY ASSOCIATION • 8236 Rernmer Ave.. P.O. Box 7184 - Canoga Park, CA 91309-7184 a 0 • I Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the trustor that the order of recording in the escrow for'the purchase of the Property by the Trustor shall occur as follows: 1) the first Lien; 2) The Declaration;and 3) the Deed of Trust. The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of -the First Lien Deed of Trust or mortgage requesting a statutory notice of default as set forth in the California Civil Code. TRU OR'S SIGNATURE Nicholas M. KbnTe-luk TRUSTOR'S SIGNATURE THE CITY OF HUNTINGTON BEACH ATTEST: 'e4," - e'�_ CONNIE BROCKWAY, CITY CLERK Mayor APPROVED AS TO FORM: it Attorney,l� f13 'VEVIEWE R E i irecto Economic Devel pment a by Deputy City Clerk A. If Trustor fails to perform the covenants and agreements contained in this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then beneficiary may do and pay for whatever is necessary to protect the value of the Property and Beneficiary's rights in the Property. Beneficiary's actions may include paying any sums secured by a lien which has priority over this Deed of Trust, appearing in court, paying reasonable attorneys 1. fees and entering on the Property to make repairs. Although Beneficiary may take action under this Section II, Beneficiary does not have to do so. B. Any amount disbursed by Beneficiary under -this Section II, shall become additional debt of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the highest rate permitted by law and shall be payable, with interest, upon notice from Beneficiary to trustor requesting payment. 4. ,SiahQrdinarion. A. The Beneficiary has found and declared that an economically feasible method of financing, refinancing or assisting first time homebuyers pursuant to the Program on substantially comparable terms and conditions without subordination is not reasonably available. Any first lien on the Property ("First Lien") held by an institutional lender or investor (the "Lender") shall be prior and superior to the Declaration and this Deed of Trust. Thus, any party, its successors and assigns receiving title to the Property through a trustee's sale, judicial foreclosure sale, or deed in lieu of foreclosure, and any conveyance or transfer thereafter, shall receive title free and clear of this Deed of Trust and the Declaration. i • c EXPIRATION OF RESCISSION PERIODS Direct Loans (Truth in Lending - Real Estate and Home Improvement Loans) Nicholas M. Kormeluk $10, 600.00 17202 Corbina Lane # 201 R—mtington Beach, California 92649 In connection with the Agreement of the City of Huntington Beach to make the loan described above, which will be secured by a deed of trust on the residence at the above address, each of the undersigned hereby represents as follows: The undersigned understands the terms of this Agreement and its attachments. 2. The undersigned has been notified that it must inform the City of Huntington Beach by today's date should any of them desire to rescind or terminate this transaction. 3. The undersigned acknowledges that this loan has not been funded for at least three days from the date of execution, in order to provide them with an opportunity to rescind should they so desire. 4. The City of Huntington Beach agreed, subject only to the occurrence of certain conditions, to make the above described loan and delivered to each undersigned a Disclosure Statement setting forth terms of said loan and a Notice of right of Rescission advising each undersigned of their right to rescind and cancel said transaction in accordance with the Truth in tending Act on or before the date the undersigned executed this document. 5. Prior to the date shown above, no proceeds of said loan have been 'disbursed to or for the benefit of any of the undersigned. 6. None of the undersigned have canceled or rescinded the above described loan transaction nor have any of the undersigned notified said Agency of any intention to cancel or rescind said loan transaction. The undersigned request the City of Huntington Beach to proceed with the making of the above described loan in r fiance upon the foregoing representations. /93 articipant's Signature) (Date) Nicholas M. Kormeluk (Participant's Signature) (Date) 7lresciss2%10/01193%G ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acknowledges receipt of two completed copies of the Notice of Right of Rescission. .4 73 (Participant's Signature) (Date) Nicholas M. Kormeluk (Participant's Signature) (Date) EFFECT OF RESCISSION. When a customer exercises his right to rescind he is not liable for any finance or other charge, and any security interest becomes void upon such a rescission. Within ten (10) days after receipt of a notice of rescission, the creditor shall return to the customer any money or Property given as earnest money, down payment, or otherwise, 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 the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, 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 ten (10) days after tender by the customer, ownership of the -Property vests in the customer without obligation on his part to pay for it. 7lresdssZ10101l9318 CITY OF HUNTINGTON BEACH NOTICE OF RIGHT OF RESCISSION AFFORDABLE HOUSING PROGRAM Notice To Customer Required by Federal Law: You have entered into a transaction on 12/29/93 , 19 , 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 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 this transaction, any lien, mortgage, or other security interest on your home arising from this transaction is automatically void. You are also entitled to receive a refund of any dowry payment or other consideration if you cancel. If you decide to cancel this transaction, you may do so by notifying City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Housing Dept. by mail or telegram sent not later than midnight of , 19— 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. Zher y cancel this transaction. 2 1 �] -j (Date) (Participant's Signature) Nicholas M. Kormeluk SEE NEXT PAGE FOR IMPORTANT INFORMATION ABOUT YOUR RIGHT OF RESCISSION. 71reSdSS2%10/01/931B 706558-C POLICY OF TITLE INSURANCE Issued By ®Commonwealth,., Land Title Insurance Company SCHEDULE A ' Policy/File Number: 706558-C Amount of Insurance: S 10,600.00 Premium: 5200.00 Date of Policy: January 5, 1994 at 3:59 pm 1. Name of Insured: The City of Huntington Beach, a municipal corporation 2. The estate or interest in the land described herein and which is covered by this policy is: A CONDOMINIUM, as defined in Section 783 of the California Civil Code, in fee 3. The estate or interest referred to herein is at Date of Policy vested in: Nicholas M. Kormeluk, a single man 4. The land referred to in this policy is situated in the County of Orange, State of California, and is more particularly described in Exhibit "A" attached hereto and made a part hereof. CLTA Standard Coverage Policy �J • 706558 PARCELI: EXHIBIT "A" Unit No. 221 consisting of certain airspace and surface elements, as shown and described in the Condominium Plan ("Plan") for phase 3 of Cabo Del Mar, which Plan was recorded March 22, 1984 as Instrument No. 84-119765 of Official Records of Orange County, California. PARCEL 2: An undivided 1/72nd fee simple interest as a tenant in common in and to all of the real property, including without limitation, the common areas defined in the Declaration referred to below in Lot 7 of Tract No. 10853, as shown on the Subdivision Map thereof recorded in book 513, page(s) 14 and 15, of Miscellaneous Maps, in the office of the County Recorder of said County. EXCEPTING therefrom Units numbered 217 through 288, inclusive as shown on the Plan. EXCEPT therefrom all oil, gas, minerals, and other hydrocarbon substances lying below a depth shown below, but with no right of surface entry, as provided in deeds of record Depth: 500 feet PARCEL 3: Non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as shown in the Plan and as described in the Declaration. PARCEL 4: Exclusive easements appurtenant to Parcels No. 1 and No. 2 described above, for use for patio and balcony purposes, defined and described as Restricted Common Areas, in the Declaration and Notice as shown and assigned in the Plan. PARCEL 5: Exclusive easements appurtenant to Parcels No. 1 and No. 2 described above for use for parking over the following areas defined and described as restricted common areas in the Declaration and Notice: Parking Space No. 221. CLTA Standard Coverage Policy 706558 SCHEDULE B THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGES, NOR AGAINST COSTS, ATTORNEYS' FEES OR EXPENSES, ANY OR ALL OF 'WHICH ARISE BY REASONS OF THE FOLLOWING: PART I ALL MATTERS SET FORTH IN PARAGRAPHS NUMBERED I TO 6 INCLUSIVE, ON THE FRONT COVERS OF THIS POLICY UNDER THE HEADING - EXCLUSIONS FROM COVERAGE. PART II EXCEPTIONS FROM COVERAGE THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF: Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. CLTA Standard Coverage Policy 706558 SCHEDULE B PART III A. General and special taxes and assessments collected with taxes for the fiscal year 1993-1994. Total: 51, 827.58 First Installment: 913.79 (Paid) Second Installment: 913.79 (Open) Homeowners' Exemption: $7,000.00 Code: 04007 Parcel: 939 54 328 B. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Section 75, et seq. of the Revenue and Taxation Code of the State of California. 1. The matters set forth in the document shown below which, among other things, contains or provides for: certain easements: liens and the subordination thereof; provisions relating to partition; restrictions on severability of component parts; and covenants, conditions and restrictions. Recorded: as Instrument No. 84-019079, Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat or render invalid the lien of any first mortgage or deed of trust made in good faith and for value. Said instrument also provides for the levy of assessments, the lien of which are stated to be subordinate to the lien of certain mortgages or deeds of trust made in good faith and for value. Modification(s) of said covenants, conditions and restrictions Recorded: as Instrument No. 84-133351, Official Records The provisions of said covenants, conditions and restrictions were extended to include the herein described land by an instrument Recorded: as Instrument No. 84-133351, Official Records CLTA Standard Coverage Policy 0 706558 2. Easement, for ingress, egress, pipeline, or public utilities, and incidental purposes, as disclosed by instruments of record, affecting only the "Common Area." 3. Non-exclusive easements for ingress, egress, access, use, enjoyment, encroachment, maintenance, repair, drainage, support and for other purposes, and exclusive easements for use for patio, balcony and parking purposes as reserved in the deed recorded July 1, 1986, as Instrument No. 86-280251, Official Records. 4. A deed of trust to secure an indebtedness in the amount shown below: Amount: $132,300.00 Dated: December 23, 1993 Trustor: Nicholas M. Kormeluk, a single man Trustee: Mark K. Posnick Beneficiary: Tntercoastal Funding Corporation, a California corporation Recorded: January 5, 1994 as Instrument No. 94-0010639, Official Records The beneficial interest under said deed of trust was assigned of record to Assignee: Victoria Mortgage Corp., a Delaware corporation Recorded: January 5, 1994, as Instrument No. 94-0010640, Official Records 5. A deed of trust to secure an indebtedness in the amount shown below: Amount: S10,600.00 Dated: December 29, 1993 Trustor: Nicholas M. Kormeluk, a single man Trustee: The Redevelopment Agency of the City of Huntington Beach, a public body corporate and politic Beneficiary: The City of Huntington Beach, a municipal corporation Recorded: January 5, 1994 as Instrument No. 94-0010641, Official Records CE_TA standard Coverage Policy c • a R �- 1 '�(o'Lil'�iz" Pyp.00' Gjl.taa' "S 8"41' oo° tar000, 4 .02. V .. ICo.co' C7 - 7)p' 3o" +0. co CONDITIONS AND STIPULATIONS f. DEFINITION OF TERMS. The following terms when used in this policy mean: (a) "insured": the insured named in Schedule A, and. subject to any rights or defenses :he Company would have had spins) the named insured, those who succeed to the interest of the seamed insured by operation of law as distinguished from purchase including, but not limited to. heirs, distributors, devisees, survivors. personal representatives, next of kin. or corporate or fiduciary successors. The term "insured" also includes (i) the owner of the indebtedness secured by the insured mongage and each successor in ownership of [he indebtedness except a successor who is an obligor under the provisions of Section 12(c) of these Conditions and Stipulations (reserving, however, all rightt and defenses as to any auetesaor that the Company would have had against any predecessor insured, unless the successor acquired the indebtedness as a purchaser for value without knowledge of the asserted defect, hen, encumbrance, adverse claim or other matter insured against by this policy as alrecting tide to the estate or interest in the land): 0111 any governmental agency or governmenul instrumentality which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the ondebledncss secured by the insured mortgage, or any part thereof. whether named as an insured herein or not: (iii) the parties designated in Section 2 (a) of them Conditions and Stipulations. (b) "insured claimant" an insured claiming loss or damage. (c) "insured lender": the owner of an insured mortgage. (d) "insured mortgage": a mortgage shown in Schedule B. the owner of which is named as in insured in Schedule A. . (e) "knowledge" or "known': actual knowledge, not constructive knowledge or novice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impan_canstrtctive notice of matters affecting the land. M "land": the land described or referred to in Schedule I A). and improvements afTixed thereo which by law constitute real property. The lerm "land" does not include soy propc^y beyond :he lines of the area described or referred to in Schedule I Al. nor any nght, )die, interest, estate or easement in abutting streets, roads, avenues, alleys, lames, ways OF watcnwys. but nothing herein shall modify or limit the extent to which a right of access to and from the land is :nsured by this policy. (g) "mortpSe": mongage, dried of trust. trust deed, or olhcr security instrument (h) "public record$': records established under state statutes at Date of policy for .he purpose of imparting constructise notice of matten relating to real property to purchasers for value and without knowkelte_ (i) "unmarketability of the title": an alleged of apparent matter affecting the title to the land. not excluded or excepted from coverage, which would entitle a purchaser of the tstate or interest described in Schedule A or the insured mortgage to be released from the obligaticn to purchase by virtue of a contractual condition requiring the delivery of marketable title. 7. CONTINUATION OF INSURANCE. (a) After Acquisition of Title by Insured Lender. if this policy Insures the owner of ;he indebtedness secured by the insured mortpge. the coverage of this policy shall continue in force as of Dale of Policy in favor of (i) such insured ]ender who acquires all or any par. of the cs-atc or interest in the land by foreclosure, trustee's sale, conveyance in lieu of foreclosure, or other egal mancter which dischstges the lien of the insured mongage; it-) a transferre of the estate cr interest sit acquired from an insured corporation, provided the transferee is the parent or wholly -owned subsidiary of the insured corporation, and their corporate successors by operation. of !aw and nor "y purchase, subject to any rights or defenses the Company may have against any predecessor insureds: and (iii) any governmental agency or governmental instrumentality which acquires ell or any part of the estate or interest pursuant to a contract ofinsurance or guaranty insuring or guaranteeing the indebtedness amured by the insured mortgage. (b) After Conveyance of Title by an Insured. The coverage of this policy shall continue in fora as of Dam of Policy in favor of an insured only w long as the insured retains an note or intern[ in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, at only w ;oog as the insured shall have lial•ility by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or intern:. This policy shall not continue in forts in favor of any purchaser from an insured of either fit an estate or interest in the land, or (it) an indebtedness secured by a purchase money mangage giver, :c at.. insured. (e) Amount of insurance. The amount of insurance after the acquisition or after ;he convey ante by an insured Lender shall in neither event exceed the least of. (i) The amount of insurance stated in Schedule A: (ii) The amount of the principal of the indebtedness secured by the insured mortgage as of Dale of Policy, interest thereon, expenses of foreclosure, amounts advanced punuarit to the insured mortgage to assure compliance with laws or to protect the hen of the insured mongage prior to the time of acquisition of the estate or interest in the land and secured thereby and reasonable amounts expended to prevent deterioration of improvements, but reduced by the amount of art payment$ made: or (iii) The amount paid by any governmental agency or governmental instrumentality. it the agency or the instrumentality is the insured claimant, in the acquisition of the estate or interest in satisfaction of its insurance contract or guaranty. 7. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. An insured shall notify the Company promptly in writing (i) in use of any litigation as yes fcrlh in {(a) below, (ii) in use knowledge shot] come to sex insured hereunder of any claim of tide or interest which is adverse to the tick 10 the estate or interest at the lien of the insured mongage, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if tide to the estate or interest or the lien of the insured mongage, as insured, is nyeclod as unmarketable. If prompt notice shill not be given to the Company. then as to tha: insured all liability of the Company shall terminate with regard to the matter or matten for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unk:ss the Company shall be prejudiced by ;ht failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon wniten request by an insured and subject [o the options contained in Seci;on 6 of these Condition& and Stipulations, the Company, at its own cost and without unreasonable delay, &hail provide for the defense of such insured in litigation in which any third party ask-u a claim adverse to the title or interest as insured. but only as to those stated causes of anion alleging ■ defeel, lien or encumbrance or other matter insured against by this policy. The Company steal: have the right to select counsel of its choice (sub)eci to the right of such insured to ob)ect for reasonable cause) to represent the insured as to those stated causes of a not pay the fees of any other counsel. Thc Company sort incurred by an insured in the defense of those causes of against by this policy. (b) The Company shall have the right, at its own cost, to Institute and prosecute any proceeding or to do any other act which in its opinion may be necessary or desirable to a mbil.1, 11w title to the estate or interest or the lien of the insured mortgage. as insured, or to prevent or 1v6.e on or damage to an insured. The Company may take any appropriate action under the mint „1 this policy, whether or not it shall be liable hereunder, and shall nor thereby concede lint lllty ... waive any provision of this policy_ If the Company shall exercise its rights under this paragraph. l shall do so diligently. (c) Whenever the Company shall have brought an action or interposed a defense as rcqusrrd tar permitted by the provisions of this policy. the Company may pursue any litigation is frost determination by a court of competent jurisdiction and expressly reserves the right, in its wk discretion, to appeal from any adverse judgment or order. (d) In all rases where this policy permits or requires the Company to proteeute Of provide for the defense of any action OF proceeding, an insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding. and all appeals Ihctrin. and permit the Company to use. at its option, the name of such insured for this purpose. Whenever requested by the Company. an insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or promeding, or effecting settlement, and (is) in any other lawful act which in the opinion of the Company may be ttaassary or desirable to esuibltsh the tick to the estate or interest or the lien of the insured mongage, as insured. If the Company is prejudiced by the failure of an insured to furnish the required cooperation, the Company's obligations to such insured under the policy shall terminate. including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matten requiring such cooperation. S. PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company. a proof of loss or damage signed and sworn to by each Insured claimant shall be furnished to the Company within 90 days after the insured claimant &hail ascertain the fault giving rise to she lots or damage- The proof of loss or damage shall describe the derecl in. or lien or encumbrance an the title. or other matter insured against by this policy which conslitales the basis of loss or damage and shall $Este, to the extent possible, the basis of calculating the amount of the lots or damage. If the Company is prejudiced by the failure of an insured claimant to provide the required proof of loss or damage, the Company's obligations to such insured under the policy shall terminate, including any liability or obligation to defend. prosecute, or comcnue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In addition, an insured claimant may reasonably he required ro submit to examination under oath by any authorized representative of the Company and shall produce for examination. inspection and copying. at such reasonable times and places at may be designated by any authorized -epresenutist of the Company. all records, boots, ledgers, checks, correspondence and memoranda, whrthcr bearing a date before or sfler Date of Policy. which reasonably penatn to the loss or damage_ Further, if requested by any authorized representative of the Company, the insured dwinant shall grant its permission. in writing, for any authorized representative of the Company to eramirit. inspect and copy all records, books. Ecdgcn. checks. correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the lass or damage. All information designated as confidential by an insured claimant provided :o the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of an insured claimant to submit for examination under oath. produce other reasonably requested information or grant permission :o secure reasonably necessary information from third parties as required in this paragraph, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that insured for that claim S. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under [his policy, the Company shall have the following additional options (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) to pay or tender pgymtdl of the amount of insurance under [his policy together with arty costs. attorneys' fees and expenses incurred by the insured claimant. which were authorized by the Company. up to the lime of payment or tender of payment and which the Company is oblipred w pay: or iii) in use loss or damage is claimed under this policy by the owner of the indebtedness secured by the insured mortgage, to purchase the indebtedness secured by the insured martgage for the amount owing thereon together with any costs. attorneys' fees slid expenses incurred by the insured claimant which were authorized by the Company up to :he time of purchase and which the Company is obligated to pay. If the Company offers to purchase the indebtedness as herein presided. the owner of the indcbtcdncu shall transfer, assign, and convey the indebtedness and the insured mongage, together with any collateral security. to the Company upon payment lhercfor_ Upon the exercise by the Company of the option provided rot in paragraph a (i), all liability and obligations to the insured under this policy, other than to make the payment required in that paragraph, shall terminate, including any liability or obhgai= :o defend. prosecute. or continue any Imption, and the policy shall be surrendered to the Company for cancelistion Upon the exercise by the Company of tSe op:cn pros ided for in paragraph a (ii) the Company's obligation to lbe insured Linder under Otis policy for ne claimed loss or dactage. Diner that. the payment required to be made, shag terminate, including any liability or obligation to defend. prosecute or continue any litigation - (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant W to pay or o:hcnwise sole wish other parties for or in :he name of ar 'inured claimant any da:m insured ■ptnst under this policy, toge:htr wish at.) costs, ■tiorrcns' fms and expcnsp incurred by the insured claimant which were authorized by the Company up [e the time of payment and which the Company is obligated to pay. or Eli) W pay or otherwise settle wish the insured claimant the ion cc damage provided for under this policy. together with any costs, attorneys' fees and expenses incurred 'ts the insured Batman[ which were authorized by the Company up to the time of payment and ah,ch the Company ,s obligated to pay. ctian and shall not be hale for and will L'pon the txcrnse by the Company of either of the opeans prodded for In paragraphs N,I ON 11 not pay any fees. cosy or expenses hill. the Company's obligations to :hc insured inde• this policy for the claimed iott or damage action which allegr maticn nor insured ocher than the payments required to be made, shall te:minate. Including any Ilahlu:y or obligation to defend, prosecute or mminoe ■n Ititgssn ir. .'onditions and Stipulations Continued Inside T q t+sl�.e POLICY OF TITLE INSURANCE ISSUED BY INCommonwealth. Land Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, COMMONWEALTH LAND TITLE INSURANCE COMPANY, a Pennsylvania 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: L 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; and in addition, as to an insured lender only: 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, said mortgage being shown in Schedule B in the order of its priority; 7, The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule B, or the failure of the assignment shown in Schedule 8 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. IN WITNESS WHEREOF, Commonwealth Land Title Insurance Company has caused its corporate name and seal to be hereunto affixed by its duly authorized officers, the Policy to become valid when countersigned on Schedule A by an authorized officer or agent of the Company. COMMONWEALTH LAND TITLE INSURANCE COMPANY I� Attest: Awl& By Secretary President 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) Any law, ordinance or governmental reg.tlation (including but not limited to building or 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 any 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. (b) Any governmental police poµer not excluded by (a) above, except to the extent that a notice of the exerciuc thereof Qr. 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) whether or not recorded in the public records at Date of Policy, but 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; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability 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 the applicable doing business laws of the state in which the land is situated. S. 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 any consumer credit protection or truth in lending law. 6. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interests of The insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. CLTA Standard Coverage Policy - 1990 Page 1 Valid Only If Schedules A, B and Cover Are Attached Form 1183-1 ORIGINAL CONDITIONS AND STIPULATIONS (Continued) 1• DETERMINATION AND EXTENT OF LIABILITY. This policy is a contract of indemnity against actual monetary lass or damage susLained or isveusred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described (a) The liability or the Company under this policy to in insured lender shall not exceed the least s)f- (i) The Amount of Insurance stated in Schedule A. or, if applicable. the amount of insurance as defined in Section 2 lc) of these Conditions and Stipulations. (it) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section g of these Conditions aid Stipulations or as reducrd under Section 9 of theft Conditions and Supulaiiotss. at the time the loss or damage insured against by this policy decun, together with interest thereon; or (iii) the difference between the value of the insured estate of interest as insured and the value of the insured alatc or intercil subject to the defect. lien or encumbrance insured against by thts policy. (b) In the esenr the insured lender has acquired the estate or interest in [he manner described in Section 2 (a) of these Conditions and Stipulations or has conseyed the title. then the habiltiy of the Company shall continue as set forth in Seehon 7(a) of there Conditions and Stipule lions. (c) The liability of the Company under Ibis policy to or. insured Owner of the estate or imeresl in the land described in Schedule A shall not exceed the last of: (i) the Amount of Insurance stated in Schedule A: or Julthe difference between the value of [he insured Mute or interest as insured and the value of the insured Mile or interest subject to the defect. Iron or encumbrance insured against by this policy (d) The Company will pay only those costs, attorneys fees and expenses incurred in accurdanca with Section 1 of thew Condirions and Stipulations - 0. LIMITATION OF LIABILITY. ta) If the Company establishes the tide. or tcmoves the alleged defect, lien or encumhrance. of cum the lack of a right of access to or from the land. or cures the claim of unmarketability of title. or Otherwise establishes the lien of the insured mortgage. all as insured, in a reasonably diligenl manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully perforrned its obligations with respect to that maacr and shall no[ be liable for any lots or damage caused thereby. (b) In the event of any litigation. including litigation by the Company or with [he Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of campttetn junsd1CLion- and disposition of all appeals therefrom. adverse rp [he title, or, if applicable, to the lien of the insured mongage. as insured (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit vritaoul the prior written consent of the Company. (d) The Company shall not be liable in an insured lender for (it any indebtedness crewed subsequent to Date of Policy except for advances made to protect the lien of the insured mortgage and secured thereby and reasonable amounts espendcd to pavent delenoration of improvements; or (ii) construction loan advances made subsequent to Date of Policy. except construction loan advances made subsequent to Date of Policy for the purpose of financing in whole or in pall the construction of any improvement to the land which at Dare of Policy were secured by the inscred mortgage and which the insured was and continued to be obligated to advance at and after Date of policy. 9. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY. (a) All payments under this policy. exrpt payments made for costs. attorneys fees and espemes, shall reduce the amount of insurance pro Canto However, as to an insured lender. any payments made prior to the acquisition of title to the estate or interest as provided in Section 2 (a) of thee Conditions and Stipulations shall not reduce pro unto the amount of insurance afforded under this policy as to any such insured, escep% to the talent that the payments reduce the amount or the indebtedness secured by the insured mortgage- (b) Payment in pan by any person of the principal of Lyle indebtedness. at any other obligation secured by the insured mortgage, or any voluntary partial satisfaction or rekaw of the insured mortgage, to the extent of the payment. satisfaction or release. shall reduce the amount of insurance pre, unLa The amount of insurance may thereafter be increased by accruing interest and advances made to protect the lien of the insured mortgage and secured thereby, with interest thereon, provided in no event shall the amount of insurance be greater than the Amount of Insurance stated in Schedule A. (c) Payment in full by any person or the voluntary satisfaction Or release of the insured mortgage shall terminals all liability of the Company to an insured lender except as provided in $section 24) of thew Conditions and Stipulations - 10. LIABILITY NONCUMULATIVE .It is expressly understood that the amount of insurance under this policy shall be reduced by arty amount the Company may pay under any policy insunng a mortgage to which exception is taken in Schedule.9 or to which the insured has agreed. assumed. or taken subject, or which is hereafter executed by an insured and ihnch is a charge or lien on the estate or interval described or referred to in Schedule A, and the amount so paid shall be dermed a paymem under this policy to the insured owner. The provisions of this Salton shall not apply to an insured krider, unless such insured acquires title to said estate or interest in satisfaction of the indebtedness secured by an insured mortgage 11. PAYMENT OF LOSS (a) No payment shall be made without producing this policy for endorsement of the payment urilest the policy has basis lost or destroyed, in which taw proof of loss or dMLruction shall be furnished 10 the satisfACLioel of the Company- (b) When Lability and the extent of loll of damage has been definitely fixed in accordarsoe with thew Conditions and Stipulations. the loss or damage shall be Payable within 30 days thereafter. 12. SUBROGATION UPON PAYMENT OR SETTLEMENT (a) The Company's Right of Subrogation Whenever she Company shall have willed and paid a claim under %his policy. all sight of subrogation shall well in the Company unaffected by any act of the insured claimant. The Company shall be subrogaid to and be entitled to all rights and remedies which the insured claimant would have had against any person of property in respect to the claim had this policy not been issued_ If requested by the Company, the insured claimant shall transfer LO [he Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation The insured Claimant shall permit the Company to sue, compromse or settle in the name of the insured .lairanL and in use the name of the insured claimant in any tranuction or Litigation involving these ngMs or remedies If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated lit as to an insured owner. to all rights and remedies in the prnporation which the Company's payment bears to the whole amount of the loss: and (ill) as to an insured lender. to all rights and remedies of the insured claimant after the insured claimant shall have recovered its principal, tneernl. and costs of collection If loss should result from any act of the insured claimant. as stated above, that act shall not void this policy. but the Company, in that event, shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any- lost to the Company by reason of the impairment by the insarcd claimant of the Company's right of subrogation. (b) The Insured't Rights and Limiruiana_ Notwithstanding the foregoing. [he owner of the indebtedness secured by an insured mortgage. provided the priority of the lien of the tnsurcd mortgage or its enforceability is not affected. may release of substitute the personal hability of any debtor or guarantor. or extend or otherwise modify the terms of paymem. or release a portion of the estate or inter^st from the hen of the insured mortgagc. or release any collatefal security for the indebtedness. When [he prrmilled aces of the insured claimant occur and the insured has knowledge of any claim of title or interest adverse to the title to the estate or interest or the priority or enforceability of the lien of an insured mortgage, as insured, the Company shall be required to pay only that part of any losses insured against by lhis policy which shall exceed the amount, if any, loll to the Company by reason of the impairment by the insured Claimant of the Company's right or subrtgation (c) The Company's Rights Against Non -Insured Obligors. The Company's right of subrogation against non-insured obligors shall exist and shall include. without limitation_ the rights of Ine insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of ibis policy. The Company's righ: of subrogation shall not be avoided by acquisition of an insured mortgage by an obligor letcept an ohlignr described in Section lla)(h) of lbew Conditions and Stipulations) who acquires the tmuird mortgage as a result of an indemnity, guarantee, other policy of insurame. or bond and the obligor wi?l no[ be an insured under this policy. notwithstanding Section I(ahi) of [hew Conditions and Stipulations 13. ARBITRATION. Unless prohibited by applicable law- either [he Company or the insured may demand arbitration pursuant to the Tide ln.urancc Arbitration Rules of the American Arbitration Association ArSttrablc matters may include, but arc not limited to. any controversy or claim helw-een the Company and the insured anting out of or relating to this policy. any service of the Company in mnnec[ton with Its issuance or the breach of a policy provision of Other obligation. All arbitrable mailers when the Amount of Insurance of S1.0000m or less shall be arbitrated at the option of either the Company or the insured- All arbitrable matters when the Amount of Insurance is in excess of SIA000W shall be arbitrated only when agreed to by both the Company and the insured- Arbitration pursuant m this policy and under the Rules in effect on the date the demand for arbitration is made or. a[ the option of the insured, the Rules in effect y Date of Policy shall be hording upon [he parties. The award may include attorneys- fees only if the laws of the stale in which the land is located peril[ a court to award aticntyt' fees to a prevailing pan). Judgment upon the award rndered by the Arbitralor(s) may be entered in any court having lumsdictmn thercaf The law of the sitas of the land shall apply to an arbitration under the Title Insurance Arbitration Rules - A copy Of the Rules may be obtained from [he Company upon request. 14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements, if anv. ictiched hereto by the Company it the entire policy and contract between the insured and the Company. In interpreting any prbvision of this policy, this policy shall he construed as a whole. (b) Any claim of loss or damage. whether Or not based on negligence. and which arises out of the status of the lien of the insured mortgage or of the title to the Male or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (cl do amendment of or endorwttxnl to this policy can be r9ade except by a writing endorsed hereon or attached hereto signed by either [he President, a Vice President. the Secretary. ■n Assistant Secretary. or validating officer or authorized signatory of the Company 15. SEVERABILITY. In the esenr any prbvision of the policy is held invalid or unenforceable under applicable law. the policy shall be deemed not to include that provision and Olt other provisions shall remain in full force and effect- 1a. NOTICES, WHERE SENT. All notices required to be given the Company and any statement in writing required to be furnished Lhe Company shall include the number of this policy and shall be addressed to the Company at Commonwealth Land Title insurance Company. Eight Penn Center. Philadelphis. Penuaylvania 19103.2191. CLTA Standard Coverage Poke! Form - I Cover Page Form 1183-3 ORIGINAL Valid Only if Schedules A and B Are Attached ISSUED FROM THE OFFICE OF ®Commonwealth. Land Title Company AGENTS LOS ANGELES COUNTY 801 N. BRAND BLVD., 12TH FLOOR GLENDALE. CA 91203 (800) 950-9772 ORANGE COUNTY 200 WEST SANTA ANA BLVD. SANTA ANA, CA 92701 (714) 835-8511 SAN BERNARDINO COUNTY 275 W. HOSPITALITY LANE, SUITE 100 SAN BERNARDINO. CA 92408 (800) 950-0557 VENTURA COUNTY 4880 SANTA ROSA ROAD CAMARILLO, CA 93012 (805) 485-8895 1 (805) 498-3681 (905) 522.2500 t (818) 991-2328 IMPERIAL COUNTY 1250 MAIN STREET CIVIC CENTER PLAZA EL CENTEO, CA 92243 (619) 352.4661 CLTA Standard Coverage Policy Form -1990 poll POLICY OF TITLE f INSURANCE I Issued by Commonwealth. Land Title insurance Company Title Inswcnee Since 1876 HOME OFFICE l ` EIGHT PENN CENTER j 4 PHILADELPHIA, PA 19103-2198 l B 1183-3 I ISSUED FROM THE OFFICE OF ®Commonwealth. Land Title Company AGENTS LOS ANGELES COUNTY 801 N. BRAND BLVD, 12TH FLOOR GLENDALE, CA 91203 (800) 950.9772 ORANGE COUNTY 200 WEST SANTA ANA BLVD. SANTA ANA, CA 92MI (714) 835.8511 SAN BERNARDINO COUNTY 275 W. HOSPITALITY LANE, SUITE 100 SAN BERNARDINO. CA 92408 (800) 950.0557 VENTURA COUNTY 4880 SANTA ROSA ROAD CAMARILLO, CA 93012 (805) 485-8895/ (805) 498-3581 (905) 522-2500 1 (818) 991-2328 IMPERIAL COUNTY 1250 MAIN STREET CIVIC CENTER PLAZA EL CENTEO, CA 92243 (619) 352.4661 .- PPR NED BY CITY COUNCIL -7- - 19ju Submitted to: REQUEST FOR CITY COUNCIL ED 93-51 Date: December 20, 1993 Honorable Mayor and City Council Members Submitted by: Michael T. Uberuaga, City Adminis Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic Development Subject: APPROVAL OF PARTICIPANTS —DOWN PAYMENT ASSISTANCE Q RAM Consistent with Council Policy? �Yes [ ] New Policy or Exception C;`: "�` CLERK Statement or Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: 4ew STATEMENT OF ISSUE: The City Attorney has determined that each borrower in the Community Development Block Grant funded Down Payment Assistance Program must be approved by the City Council. RECOMMENDED COUNCIL ACTION: e 1. Approve and authorize execution of the appropriate documents and payment of the appropriate funds to the recommended Down Payment Assistance Program participants as attached. ANALYSIS: As part of the 1993-94 Community Development Block Grant Program the Citizen Advisory Board recommended and the Council approved $100,000 as a pilot program to provide Down Payment Assistance to moderate income households and since that time the details of the program have been approved by the City Council. The City Attorney requires the City Council to approve each borrower in the Down Payment Assistance Program. The attached list of potential participants are those which are recommended by staff for approval at this time. Additional borrowers will be recommended until the funds are expended. ALTERNATIVES: Do not approve the participants. LJ RCA ED 93-51 December 20, 1993 Page two ILal !► 1 Community Development Block Grant--$100,000. ATTACHMENTS: 1. List of approved Participants MTU/BAK/SVK.jar 8b8j DOWN PAYMENT ASSISTANCE PROGRAM Household Name Inc-ome/Mthly 1. David Dixson $3,144.00 *2. Nicholas Kormeluk $3,255.00 Monthly Pmt Loan % of Monthly Hse/Utils/Taxes Amount Income $1,088.06 $10,000 34% $1,115.29 $ 2,000 34% *Participant approved at meeting of December 6, 1993 for amount of $8,600, now requests an additional $2,000 be added to his loan amount so that he may qualify for an FHA loan. s APPROVED BY CITY COUNCIL a - 194L REQUEST FOR CITY COUNCIL A , CrrY CLERK ED 93-50 Date: December 20, 1993 Submitted to: Honorable Mayor and City Council Me ers Submitted by: Michael T. Uberuaga, City Administrator Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic Development Subject: ADDITIONAL FUNDS —DOWN PAYMENT ASSISTANCE PROGRAM Consistent with Council Policy? N Yes [ ] New Polity or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, AttachmTWA" STATEMENT OF ISSUE: The initial $100,000 in Community Development Block Grant funds allocated to this program are nearly committed. If the program is to continue, additional funds are required. RECOMMENDED COUNCIL ACTION: 1. Approve appropriation of an additional $100,000 in Community Development Block Grant funds to continue the Down Payment Assistance Program for low and moderate income first time homebuyers throughout the city with a maximum loan amount per borrower of $10, 000. 2. Direct the City Attorney to amend loan documents to require borrowers to repay the principal and accrued simple interest at five percent per annum upon resale of the unit. ANALYSIS: As part of the Fiscal Year 1993-94 Community Development Block Grant (CDBG) Program, the Citizens Advisory Board (CAB) recommended and the City Council approved a $100,000 demonstration program to provide down payment assistance to low and moderate first time - homebuyers. The implementation documents and first round of borrowers were approved by the City Council on October 25, 1993. Since that time additional borrowers have been approved and the list of these is included as Attachment No. 1. Information from participating lenders indicates that there is still substantial additional interest by potential participants (see pending cases included as Attachment No. 2). • RCA ED 93-50 December 20, 1993 Page two The City Council has previously requested that in the future this program be structured as a loan requiring full repayment of principal and accrued interest upon the sale of the home as opposed to the current structure which forgives the loan if the buyer remains in the same unit for five years. The recommendation section hereof requests the City Attorney to make the necessary changes to the loan documents to accommodate this direction. Further, attached is a sample calculation of the amount of interest which would accrue on a loan of $10,000 at five percent, compounded annually over thirty years. (Attachment No. 3). It is important to note that if the program is restructured to require repayment such payments must be returned to the CDBG program and can only be used for eligible activities as defined by the U.S. Department of Housing and Urban Development (HUD). FUNDWG SOURCE: Community Development Block Grant ALTERNATIVE ACTION: Do not provide additional $100,000 for Down Payment Assistance Program. This will terminate the demonstration program. ATTACHMENTS: 1. Approved Borrowers 2. Potential Borrowers 3. Loan Repayment Sample MTU/BAK/SVK:jar 8b5j • Attachment No. 1 DOWN PAYMENT ASSISTANCE PROGRAM APPROVED PARTICIPANTS December 6, 1993 Loan P r ici n Amount Diana Culiaciati $13,000 Osman Taban $15,000 Caroline Sutherland $ 6,852 Michelle Schmaderer $14,400 Carol Kanarsld $ 4,100 Nicholas Kormeluk $ 8,600 TOTAL $61,952 Attachment No. 2 CITY OF HUNTINGTON BEACH PENDING PARTICIPANTIDOWN PAYMENT ASSISTANCE PROGRAM Loan Name Amount Low Hoan, Tam $ 6,143 Moderate Heildesch, Rebecca 5,950 Low Low Moderate Quick, Shauna Lonson, Sally Steenveld, Geri Low Otto, Thomas Law Dieckmeyer, Barbara Low Chavez, Jaime 0 6,926 6,250 8, 831 10,000 $1LM $59,100 s ATTACHMENT NO. 3 HYPOTHETICAL EXAMPLE DOWNPAYMENT ASSISTANCE PROGRAM % SIMPLE INTEREST Cumulative Year Loan Amount Interest 1 st Year $10,000 - $ 500 2nd Year 10,500 1,000 3rd Year 11,000 1,500 4th Year 11,500 2,000 5th Year 125,000 2,500 loth Year 15,000 5,000 11-20th Years 20,000 10,000 21-30th Years 25,000 15,000 Total Due $25,000 Total Interest $ 15,000