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HomeMy WebLinkAboutMARGOLIS, PETER - 1996-03-04RECORDING REQUESTED BY: AND WHEN RECORDED MAIL TO: City of Huntington Beach Economic Development Department 2000 Main Street, PO Box 190 Huntington Beach, CA 92648 Address: 18051 Joyful Lane, #104 Project: Pacific Park Villas Recorded in Official Records, Orange County Tom a,y, lerk-Recorder 1111111111111111111111111111111111111111111111111111111111111111111111111115-00 * $ R 0 ) 0 4 8 6 4 6 5 8 $ * 2012000318527 10:19 am 06/05/12 10 414 Rol 3 0.00 0.00 0.00 0.00 6.00 0.00 o.00 0.00 SPACE ABOVE THIS LINE FOR RECORDER'S USE FULL RECONVEYANCE THE CITY OF HUNTINGTON BEACH.as duly appointed Trustee under Deed of Trust hereinafter referred to, having received from holder of the obligations thereunder a written request to reconvey, reciting that all sums secured by said Deed of Trust have been fully paid, and said Deed of Trust and the note or notes secured thereby having been surrendered to said Trustee for cancellation, does hereby RECONVEY, without warranty, to the person or persons legally entitled thereto, the estate now held by it thereunder. Said Deed of Trust was executed by Peter Margolis, Trustor, and recorded in the official records of Orange County, California, on March 13, 1996 as Instrument No. 19960122114 DESCRIPTION: See "Exhibit A" for full legal description of property commonly known as 18051 Joyful Lane, #104, Huntington Beach, CA 92648. Bob Hall Deputy City Manager/Deputy Executive Director Housing Authority.of the City of Huntington Beach Beneficiary C/Y\- 18051 Joyfule Lane, 104 5-1 . Zq // Z, DATE �? �/� // /.)-a, / 6 $ _3/1 P-16, 12m:11 LEGAL DESCRIPTION PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in commoll in and to all of the Common Area deEiiied in Declaratiou referred to below and described in the Condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of official Records of Orange County, over Lot I of Tract No. 14828, in the City of Huntington Beach, County of Orange, State of.California, as per map filed in Book 706, Pages 27 to 29 of miscellaneous Maps, in the office of the County Recorder of said County. PARCEL 2: Unit No. 20 consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel I above. PARCEL 3* Non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachiiient, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of Covenants, Conditions aild Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336 of official Records. PARCEL 4: Exclusive easements appurteiiaiit to purposes, over the areas def ined, Parcels 1 aiid 2 referred to above, for balcotly Or P-10.0 depicted and assigned oil tile Plan. ACKNOWLEDGMENT State of California County of Orange On May 29, 2012 before me, Kathleen Nelson, Notary Public, personally appeared Bob Hall who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signaturc IOU ........ .. NE comm. #181 94 Z Notary Public - California 9 Orange County I -Comm. Expir".S". 23.20121 alm. (Seal) 0 CITY OF HUNTINGTON BEACH Inter -Office Communication Economic Development Department DATE: June 12,2000 TO: Gus Duran, Housing/Redcvelopment Manager FROINI: Joyce DeKreek, Housing/Redevelopment Consultanle SUBJECT: Research on Loan Forgiveness, 1"' Time Home -Buyers Program Redevelopment Set -Aside, $400,000 and Redevelopment Set -Aside, $750,000 I have reviewed our rccords regarding funding of I" Time Home-Duyers Program to determine the names and amount of assistance which benefited the applicants from the $400,000 in Redevelopment Set -Aside fands approved by the Redevelopment Agency (RDA) at their November 1, 1993, meeting -and from the $750,000 in Redevelopment Set -Aside funds approved by the RDA for the Pacific Park Villas at their February 6, 1995 meeting. Tle Redevelopment Agency approved nine applicants -from the $400,000 allocation M" conjunction with the City's CDBG V Time Honie-Buyers Progmra and one additional applicant for the RDA I " Time Home -Buyers Program only.'The RDA portion of these loans are Bastou ($25,000), Dieclaneyer ($23,000), Griffen ($25,000), Hoang ($23,000), Lawson ($23,000), Melvin ($35,000), Otto ($23,000), Quick, S. ($16,717), Quick, T. ($25,000), Rivcra H. ($2�,000). Quick, T. withdrew from the CDBG loan but maintains the RDA loan. These loans total $243,717. The Redevelopment Agency approved fifteen (15) applicantsfrom the $750,000 allocation at Pacific Park Villas (PPV) to participate in the Redevelopment Agency I" Time Buyer Program. Ile names and amounts are (Carrillo ($35,000), Forchlone ($35,000), Heckethorn ($35,000), Hosseinali ($35,000), Hocker ($35,000), Lawrence ($35,000), Murch ($35,000), Osterhoudt ($35,000), Peltier ($35,000), Rivera -Burgess ($35,000), Wallace ($35,000), Weinfeld ($35,000), Wong ($35,000), Krueck ($35,000), Margoles ($35,000). These loans total $525,000. Four loans (MelkersonfUniack, Ojeda, Rene[White, Stratton), previously approved by RDA were not funded. Gfjoymbleff rwm P=orrmy.doc One loan (Wallace) was assumed by another qualified buyer (St�y).-. Two applicants have paid their loans: Melvin, paid off Iiis RDA loan 10/21/199 ' 7 in the amount of $40,794.31 and Hoang, paid off his RDA loan on 12/21/1999 in the amount of $471208.80. A check in the amount of $4,116.57 was issued to Mr. Hoang for overpayment, reducing the loan repayment to $43,092.23. These loans accrue simple interest at 5%, due znd payable upon sale to a non qualified buyer and has shared equity. Cc: Connie Brock -way, City Clerk Paul D'Alessandro, Deputy City Attorney David Biggs, Director, Economic Development John Reekstin, Director of Administrative Services Dan Villella, Director of Finance Jake Rahn, Administrative Services Hank Revcles, Sr. Accountant Joyce de Kreek, Economic Development Steve Holtz, Development Specialist GAjoycdIntermemo Recanvey.doc 95-01 (2-1-95) RDA 12-19-94 95-02 (2-1-95) RDA 12-19-94 95-03 (2-1-95) RDA 12-19-94 95-04 (2-1-95) RDA 12-19-94 95-06 (4-12-95) RDA 4-3-95 96-01 (1-24-96) RDA 1-16-96 -96-02 (3-7-96) RDA 3-4-96 96-03( 'RDA 4-1-96 96-04 (7-17-96) RDA 7-15-96 96-05 (8-7-96) RDA 8-5-96 96-06 (8-7-96) RDA 8-5-96 97-01 (1-29-97) RDA 1-21-97 97-02 (4-30-97) RDA PACEFIC PARK VILLAS ($750,000 — RDA) Carillo, Ann S 35,000 78 61 Happy Drive, # 102 Lawrence, James and Jeanette S 35,000 18051 Joyful Lane,# 16 Wong, Wesley Chi $ 35,000 7681 Happy Drive, #202 Hocker, Christopher/Vandereb, Gayle$ 35,000 76 8 1 Happy Drive, #101 Rivera, Victor/Burgess, Debra S 35,000 18061 Joyful Lane, #104 Heckcthorne, Sean & Jacquelyn S 35,000 7871 Happy Drive, # 102 Margolis, Peter Weinfeld, Julie Peltier, Edward Wallace, Barbara Jo Murch, Gregory Krueck, Deborah Osterhoudt, Robert and Kathy S 35,000- 18051 Joyful Lane, # 104 S 35,000 18061 Joyful Lane, #205 S 35,000 7871 Happy Drive, #201 $ 35,000 18051 Joyful Une, 9205 S 35,000 18051 Joyful Lane, # 102 S 35,000 18061 Joyful Lane,# 10 1 $ 35,000 18061 Joyful Lane,-# 102 G:rjoyceAntcmxiw Reconvey.doc 97-03 (5-14-97) Hosseinali, Fa'roukh 35,000 18061 Joyful Lane, 4201 RDA 97-04 (7-23-97) Forchine, Richard S 35,000 18051 Joyful Lane, #201 RDA 7-21-97 I" TIKE BUYER ASSISTANCE ($400,000 RDA) 944 (2-11-94) Lawson, Sally $ 23,000 409 Utica Avenue #A- I (RDA 1-18-94) 94-5 (2-11-94) Quick, Shauna $ 16,717 409 Utica Avenue #C-32 (RDA 1-18-94) - 94-6 (2-11-94) Dieck7neyer, Barbara S 23,000 409 Utica Avenue'#B-21 (RDA 2-22-94) 94-8 (2-11-94) Otto, TJShorb R. S 23,000 409 Utica Avenue #A-7 (RDA 1-18-94) 94-10 (2-11-94) 119ang, Ta�n S23,000 409 Utica Avenue #D-37 (RDA 2-22-94) 94-11 (5-18-94) Bastou, Valerie S 25,000 409 Utica Avenue #D-43 (RDA 5-18-94 94-12 (5-18-94) Quick La Reine, Teresa $ 25,000 409. Utica Avenue NA-9 (RDA 5-18-94) 94-13 (6-23-94) Melvin, Patrick S 35,000 409 Utica Avenue ND-39 (RDA 6-20-94) 94-14 (7-27-94) Rivera, Hector & Iciar $25,000 409 Utica Avenue 4A5 (RDA 7-18-94) 94-17 (10-4-94) Griffen, Olga Christina S 25,000 409 Utica Avenue #C-23 (RDA 9-19-94) $243,717 GAjoyceAntennemo Reconvey.doc r-J, oe Le" "UNT1NCTON SCACH ff*); OFFICE OF THE CITY CLERK CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION Future City Clerks and Deputy City Clerks FROM. Jane'le Case, Deputy City Clerk per Instructions by Connie Brockway, City Clerk SUBJECT. Down Payment Assistance Forgivable Loans DA TE. September 16, 1999 The attached documents are included in this file to assist you in the future to determine the forgiveability of the down payment assistance loans. DOWN PAYMENT ASSISTANCE PROGRAM Paafic ParL Villas Loan No. Name Property Address Amount Date /95-01 Carillo, Ana 7861 Happy Drive #102 92648 T5.�-06 1/3/95 /95-02 Lawrence, James/Jeanette 18051 Joyful Lane #101A 92648... 35.000 1/3195 /95-03 35,000 Wong. Wesley 7861 Ha pry Drive #202 92648 1/3/95 95-04 Hocker, Chdstopher & Vandereb, q#e 7861 Happy Drive #10192648 35,000 1/3/95 Victor & Burgess, Debra 18061 Joyful Lane #104 92648 35.000 413/95 96-01 v.,, Heckethome, Sean/Jacquelyn 7871 Happy Drive #102 92648 35,000 1/16196 Margolis, Peter 18051 Joyful Lane #104 92648 96-02 35.000 3/4196 96-03 Wienfeld, Julie 18061 Joyful Lane #205 92648 35.000 4/1196 96-04 Peltier. Edward 7871 Happy Dhve#201 92648 35,000 7/15/96 35.000 815196 96-06 Mur�h', Gregory.s. 18051 Joyful Lane #102 92648 35,000 8/5/96 Krueck. Debo"rahJ.' -1 -8 -0-6 1- 'J, o y-f u I La'n' 'e, #-1 -0-3- -9, 2, "S' -4 '8" 35.000 1121/97 97-02 118061 Joyful Lane #102 92648 35.000 Osterhauelt. RobertfKathy 97-03 18061 Joyful Lane #20192648 Hosseinali. Faroukh 35.000 5/5/97 97-04 118051 Joyful Lane #20192648 35,000 7/1197 Torchlone, Richard 17 1�.w t .j 0& CITY OF HUNTINGTON BEACH Inter -Department Communication TO: Gus Duran, Economic Development FROINI: Gall Hutton, City Attorney DATE: Junel,1999 SUBJECT: Determination of Loan Forgiveness MS 99-359 I ND E X: BACKGROUND You have asked.for a determination of whether several loans made by the City of Community Development Block Gr=t funds, for the first time home buyer down payment assistance program, are forgivable. ISSUE Are the nine loans forgivable? ANSNVER Yes, if they were funded with the first $100,000 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 $40,475. (RCA attached hereto as Attachment 1). 44:4-99NIernos-DursnS27 11/15193: The City Council was requested to approve and additional S100,000 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.) 12/20193, Item E-17: The City Council approved an additional participant in the program, David Dixson, for the amount of S10,000, and increased the amount for participant Nicholas Kormeluk from S8,600 to S10,600. (RCA attached hereto as Attacbment4.) 12120193, Item F-2: The City Council approved an additional S100,000 for the program, but changed the program to require repayrrient of these additional funds. There are two important attachments to this RCA. The first is entitled "Approved Participants," and lists the followinc, six participants: Culiaciati, Taban, Sutherland, Schmaderer, KanaLrski, and Kormeluk, in the total 2 amount of $61,952. The second important document attached to this RCA is the list of "Pending Participants." It shows eight more participants in the total amount of S59,100. It is not determinable ftom this RCA whether these persons were intended to be in the grant prog3ram or the loan program, and we do not know when, if ever, these participants were actually approved. 1/3/94: The"City Council approved three more participants in the original, non -repayment progTarn- Judy Young,, Treva, Love, and Ellen Ommondson, in the total amount of S3 1,000. When added to the previously committed amount of S73,952, the total amount of funds committed is S 104,952. TWs exceeds the original S 100,000 appropriated for the original, non - repayment program. The analysis portion of this RCA states that "'the approvals herein will be the first funded with the new appropriation,"' which implies that at least a portion of the funds used for these participants were part of the funds that were conditioned for repayment, as opposed to the original, non -repayment funds. However, the total numbers listed are roughly consistent with the original S 100,000 set aside for the grant program. The total amount of loan funds used is less than $5,000. (RCA attached hereto as attachment 5). Our review of the above documents and chronology of events indicates that the Council did not intend to require repayment of the original $100,000 appropriation. Clearly, then, the loans made to Culiaciati, Taban, Sutherland, Schmadere Kanarski, Dixson and Kormeluk are forgivable, because they were funded using $73,952 of the first $100,000 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 $26,048 of the original, non -repayment funds available to these participants, and collectively, they received $3 1,000. 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, we believe that this list has been erroneously added to the 12/6193 RCA. 2 Please note that earlier during the same meeting, the Council had also approved David Dixson for S 10.000, and an additional S2000 for yormelA Thus the amount committed from the ori&al S 100,000 was actually S73,952. 2 4,'s:4-99Memos-.Dur2n527 participants must have come from the second S 100,000, which the Council appropriated with the condition that the loans be rCp3id, not forgiven. CONCLUSION There are two conflicting Council actions. The Council's intent was to include participants Youria, 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 Onunondson were from the secorid 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 3 44:4-99NIemorDunnS27 CouneIVAgency Meeting Held: Deferred[Continued to: gdzzz, ;dApp�oved 0 Conditionally Approved 0 Denied City Clerk'sAignature C-/0%4K1;c_1 r -0-/ t44,-.,"AV -A-nSF_,,r Council Meeting Date: May 17,1999 Department ID Number: ED 99-29 CITY OF HUNTINGTON BEACH ;L,A;,Vl REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTEDTO: HONORABLE CHAIRMAN AND REDEVFHLOPMENTAGENC�Y_ *'7-, MEMBERS r-< SUBMITTED BY: RAY SILVER, Executive Directo;owo _.J 1:1= PREPARED BY: DAVID C. BIGGS, Economic Development Director�p )> SUBJECT: Authorize the Transferability of 15 Pacific Park Villas Down Payment Assistance Loans — Approve and Authorize Execution of Documents f Issue, Funding Source. Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Currently, the down payment asslistance loans made by the Redevelopment Agency for Pacific Park Villas must be individually approved by the City Council. In order to facilitate transfers of these loans, staff is requesting that the Redevelopment Agency establish procedures for administrative approval of these transactions. Funding Source: None as a result of this action. , Recommended Action* Motion to: 1 - Authodze the Executive Director and the Agency Clerk to execute on behalf - of the Redevelopment Agency any and all documents necessary to transfer to new low and moderate -income homebuyers the Down Payment Assistance Loans made 'by the Agency at the inception of the Pacific Park Villas project. See Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas." (Ali documents to be approved as to form by the Agency Counsel). 2. Authorize the Executive Director and Agency Clerk to execute on behalf of the Redevelopment Agency any and all documents necessary to subordinate or to reconvey the Agency loans (notes and deeds of trust), as these home owners refinance, sell their homes or meet their loan obligations, as stated in their notes and deeds of trust. See Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be approved as to form by the Agency Counsel). 6"5 REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: May 17,1999 DEPARTMENT ID NUMBER: ED 99-29 Alternative Action(s): The Redevelopment Agency can retain the authority to approve the transferability of each and every Down Payment Assistance Loan made on this project. The number of loans originated for this project was 16 loans. This means that each and every time, Agency staff will have to prepare a Request for Agency Action, thereby increasing staff time and costs. It will also delay the ability the sellers and buyers to close escrow quickly. In some cases the delays could cause undue hardship and cause the sale of properties to fall out of escrow. Analysis: In 1996, the Redevelopment Agency made 15 Down Payment Assistance Loans to low- and moderate -income homebuyers purchasing dwellings at the Pacific Park Villas residential project located near Talbert and Beach. The purpose of these loans were to expedite the sales of homes in the Pacific Park Villas project and simultaneously meet the Redevelopment Agency's obligation to assist low and moderate income persons with 20% Set Aside Funds, as required by Redevelopment Law. The loans made to these homebuyers were meant to be transferable to other low and moderate -income families. The City Attorney's Office has been requested to make a determination of the transferability and has rendered a decision indicating that the loans are transferable to other homebuyers that meet the income qualification of having incomes below 120% of the median income for Orange County. (See attached memorandum from the City Attorney's Office). Some of these homebuyers are now ready to move on with their lives and are desirous to sell their properties. To facilitate the closing of escrows without significant delays to sellers and buyers, the Economic Development Department is requesting that the Redevelopment Agency Board authorize the Executive Director and the City Clerk to administratively manage the transferability of these loans. This will permit the Executive Director to execute documents without having to come the Agency Board on each and every loan, especially since these loans were prepared with the identical notes, deeds of trust and Covenants, Conditions and Restrictions (CC&R's). The City Attorney's Office has provided an opinion on the loans' transferability. Environmental Status: N/A Attachment(s): 1. 1 City Attorney's Office Memorandum. 2 Sample Loan Documents. 3. 1 List of Down Payment Assistance Borrowers at Pacific Park Villas. RCA Author: Gus Duran X1 529 RCAPPV.DOC -2. 05/05/99 9:34 AM Citv Attornev's Office Memorandum ATTACHMENT #1 CITY OF HUNTINGTON BEACH Inter -Department Communication TO: David Biggs, Director of Economic Development F R 0,% 1: Gail Hutton, City Attorney DATE: April 26, 1999 SUBJECT: 'Wallace Loan Documents You have asked several questions concerning the Wallace loan documents. I Is the loa"n transferable? A. Yes, with the Agency's prior written consent. See Section 18 of the Loan Agreement. 2. %at are the income limits for purchasers? A. No greater than 120% of median income (moderate income) pursuant to Section 9 of the Loan Agreement. 3. Does the new buyer need to meet the income requirements of the CC&Rs? A. Yes. 4. Is the Equity Share payable if the buyer qualifies under the CC&Rs? A. Yes. 5. Can the interest b-. forgiven if the property's fair market value does not exceed 5% per year? A. No, unless the Agency approves forgiving the interest. 6. Should the Equity be calculated minus the selling expenses? A. No. Please contact me if you have any further questions. Gail Hutton City Attorney 4/%-4-"%1eTnos:BiSgs426 IN CITY OF- HUNTINGTON BEACH Inter -Office Communication Economic Development Department TO: Gail Hutton, City Attorney Paul D'Alessandro, Deputy City Attorney FROM: David C. Biggs, Director of Economic Development DATE:' April 20,1999 SUBJECT: First Time Rome Buyer Loan for Barbara Jo Wallace Yesterday, April 19, 1999, Gus Duran, the Department's Housing and Redevelopment Manager met with Ms. Barbara Jo Wallace, her real estate agent and other property owners of the Pacific Park Villas project to discuss their. concerns regarding First Time Homebuyer loans made to them by the Redevelopment Agency. As you may recall, at a previous City Council meeting, Mr. Bob Osterhdudt made a plea to the City Council requesting assistance for the property owners of this complex. In addition, Ms. Wallace has written to the Mayor and the City Attorney (April 2, 1999) requesting the Redevelopment Agency's assistance in resolving her needs to sell her property with the Agency's assistance. The Economic Development Department is ready and -willing to help Ms. Wallace and the other property owners sell their homes, as they need to move on with their lives when they desire, but we are in need of a legal opinion regarding the following issues: I Is the loan made to Ms. Wallace, which is similar to those made to the other buyers of Pacific Park Villas, transferable? 2. What are the income limit requirements for the purchasers of these homes when a property oN%mer sells his/her home? (See attached 1999 Orange County Affordable Housing Woik�h6eit 'issued 'by the law firm of Stradling, Yocca, Carlson & Rauth.) 3. Does a new buyer need to meet th�';i-n.c.o'-r'%n.'e"r'eq-'u'ir'er'n'.ent-s'.e.stablished in the CC & R's? 4120/99.0us Durarffloudev:WALLACE 4. Is the "Equity" payable if the sellers sell their home to a buyer that meets the incothe requirements established in the Note and the CC&-R"s.? 5. Can the interest be forgiven if th-- property's "fair market value" does not exceed 5% per year? 6. Should the "Equity" be calculated minus the selling expenses (see Section 4A of Loan Agree=nt)? We are requesting an immediate opinion on these issues, as Ms. Wallace has already purchased a home in the State of NVashington and has a pending sale of her property in Huntington Beach in the works, subject to th.- Agency's determination on these issues. At the moment, her pending sale is being held up because neither the seller, nor the buyer knows whai to do with- the information on the note and deed of trust, or the CC&-R's. - Attached are copies of Ms. Wallace's doc=.-nta*ion. These are the following: 1. Loan Agreement to Ms. Wallace from the Redevelopment Agency. 2. Promissory Note 3. Deed of Trust with Assignment of Rents 4. Lending, Instructions 5. Certificate of Proposed Transferee 6. Declaration of Conditions, Covenants and Restrictions for Property 4,10,19:Gus DuranNoudmWALLACE Sample Loan Documents ,,-ATTACHMENT #2 J1 Mr LOAN AGREENIENT T IS LOAN AGREEMENT (the "Agreement") is made this 57V-,- day of 19q., by and between BARBARA JO WALLACE ("Participant") and the REDYVELOPIMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). R E C I TA L S A. Participant has entered into an agreement (the "Purchase Agreement") to p6rchase that certain real property commonly known as 18051 Joyful Lane, 9205 . 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 Sarety Code Section 50093. . C. Participant has represented to the Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. The Agency desires to assist persons of low and moderate income topurchase residential property to ircrease, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach (the "City"). E.' The Agency wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth hierein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: I AP zen oan. The Agency shall loan to Participant (the "Agency Loan") the amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the Program. The Agency Loan shall be paid to the seller of the Property (the "Seller") by the Agency through deposit of the Agency Loan proceeds into escrow with Tlavo ESCRai, INC., A CALIFORNIA CORPORATION (the "Escrow Agent") (Escrow No. 9442--r- . The Agency shall direct the Escrow Agent to apply the proceeds of the Agency Loan on behalf of Partl6pant to the purchase price of the Property, and, at ParticipanVs election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the Agency a Loan Agreement Page I ofS 4%%1(1:4-96-Agree.Wallacc:loanagrce It LS 94-323 7126196 promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple interest at five percent (5%) per annum, due in thirty (30) years and payable upon the earlier sale, refinancing or transfer of the Property, substantially in the form of the "Promissory Note" attached hereto as Exhibit B and incorporat ' ed herein. Participant shall also execute and deliver to the Agency a second deed of trust encumbering the Property which shall secure the Promissory Note (the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated herein. 2. Maintenance oEftQV_er_1Y- 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 homeownees association or other regulatory entity recognized by area property owners and comply with'all applicable federal, state and local laws. 3. Due on Sale. Transfer or Refinancing. Participant agrees to notify the Agency not less than thirty (30) days prior to (i) the sale or transfer of the Property or (ii) any refinancing of the lien of the Agency Deed of Trust or any lien to which the lien of the Agency Deed of Trust is subordinate (the "First Mortgage"). The Agency Loan and all interest accrued thereon shall be due and payable upon (i) such sale or transfer, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for an amortization Period long er than the loan secured by the First Mortgage, or (iii) Participant is no longer an occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan. 4. Equity Sharin . In the event that the Agency Loan becomes due an , d payable prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency concurrently with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary of the Agency Deed of Trust: 2. After fifth anniversary but prior to sixth anniversary: 3. After sixth anniversary but prior to seventh anniversary 4. After seventh anniversary but prior to eighth anniversary: Loan Agreement Page 2 of 8 fifty percent (50%) forty-eight percent (48%) forty-six percent (46%) forty-four percent. (44%) 4\sk(;:4-96-Agrcc:Wall.tcc:loanagree 1US96-523 MGM k.) - S. After eivhth anniversary but prior to n'inth anniversary: 6. After ninth anniversary but prior to tenth anniversary: 7. After ter.th anniversary but prior to eleventh anniversary: S. After eleventh anniversary but prior to twelfth anniversary: 9. After twelfth anniversary but prior to thirteenth anniversary: 10. After thirteenth anniversary but prior to fourteenth anniversary: 11. After fourteenth anniversary but prior to fifteenth anniversary: 12. After fifleenth anniversary but prior to sixteenth anniversary: 13. After sixteenth anniversary but p rio r to seventeenth anniversary: 14. After seventeenth anniversary but prior to eighteenth anniversary: 15. After eiFhteenth anniversary but prior to nineteenth anniversary: 16. ARer nineteenth anniversary but prior to twentieth anniversary: 17. After twentieth anniversary but prior to twenty-first anniversary: 18. After twenty-first anniversary but prior to twenty-second anniversary: 19. After twenty-second anniversary but prior to twenty-third anniversary: Loan Agreement Page 3 of 8 forty two percent (42%) forty percent (40%) thirty-eight percent (38%) thiHy-six percent (36%) thirtY-four percent (3.4%) thirty-two percent (32%) thirty percent (30%) twenty-eight percent (29%) twenty-six percent (26%) twenty-four percent (24%) twenty-two percent Q2%) twenty percent (20%) eighteen percent (18%) sixteen percent (16%) fourteen percent (14%) 4',110:4-96-Agree.Wall3cc:loznjLgrcc RLS 96-323 7/24M5 20. After twehty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. After twerity-fourth anniversary but prior to twenty-fifth anniversary: ten percent (10%) 22. After twerity-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) 25. After twerity-eighth anniversary but t prior to twenty-ninth anniversary: two percent (2%) 26. After tiventy-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (0'/'o) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars' . ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price upon ParticipariVs subrdission ofevidence of such costs to the Agency, irt a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price!' is the price paid by the Buyer of the Property to Participant for ParticipariCs interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. Loan Agreement Page 4 of 8 4�skCs'.4-9G-Agrcc-.Waltacc:loatiagrec IMS 96-523 W2619G A. Equity Share Upon Sale or Transrer. The Equity Share Amount shall be payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer") whose income exceeds 120% of the current annual median income for the Orange Count), area. if the Buyer does not submit an income verification statement to the Agency, the Buyer shall be deemed to exceed such iricome limit. If the Buyer does not exceed the aforesaid income limit, tile Equity Share Amount shall not become payable. B. Equity Share Upon Refinancing or Failure to Qccupv. Tile Equity Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property or material breach of any other provision of this Agreement which causes the Agency Loan. to become due and payable- The Sales Price for purposes of determining the Equity Share Amount shall be determined by an appraisal of the Property. The Agency shall appoint a certified, independent,'appraiser to conduct an, appraisal of the Property, at Participant's expense and PiRMCIpant Eig:f-ees t at in such event the Equity Share Amount shall be the Applicable Factor multiplied by the differerce between the Purchase Price and the appraised value of the Property as of the time of such refinancing. This Agreement sliall be terminated upon the Participant's repayment of the Agency Loan and payment of the Equity Share Amount as provided in this Agreement. C. Expiration ofEquity Share Obligation. In the event the Participant does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or is not in material breach of any other provision of this Agreement before the Thirtieth anniversary of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share Amount to Agency upor. any later sale, transfer or refinancing. 5. Qccupancy Standards. The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Parficipant shall not enter into an agreement for the rental or lease of the Property. 6. Income Information, Participant has submitted an eligibility verification form to the Agency prior to execution of this Agreement. Participant represents and warrants to the Agency that all information Participant has provided and Vill provide in the future is and %V'111 be true, correct and complete. Participant acknowledges that the Agency is relying upon Participant's representations that Participant's income does not exceed 120% of the area median income and would not have entered this Agreement if ParticipanVs income exceeded 120% of the area median income. 7. Loan Servicirip The Agency may contract %vith a private lender to originate and service the Agency Loan. S. Participant Finan�Lng- Participant shall obtain financing for the purchase of the Property from the Southern California Home Financing Authority or a reputable institutional lender approved by the Agency (the "Lender"). The lien secured by the Agency Deed of Trust Loan Agreement Pase 5 of 8 4W4:4-96-A&ree:Wa11aCC:loan39= 111-S96-523 7126/96 shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns - In addition, not less than ihree percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 9. Covenants. Participant and the Agency shall execute and have recorded in tile Official Records of Orange County, California, a "Declaration of Conditions, Covenants and Restric'tions for Property," substantially in the form ofExhibit D attached hereto and incorporated herein, in which Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health & Safety Code Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Agency and the City. 10. Non -Waiver. Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 11. Indemnification. The Participant shall defend, indemnify and hold harmless the Agency and the City of Huntington Beach and their respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the Agency or the City to make such payments, by virtue of the Agency Loan. 12. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (3 )0) 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 deraulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The partywho so Uls or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required go protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute* a waiver of any default, nor shall it change the time of default. 13. Documents. Participant is aware that the Agency has prepared certain documents to implement the Program and secure repayment of the Agency Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Agency Loan: Loan Agreement Pane 6 of 8 4\s\(;:4-96-Agrcc:Wall.icc:loajiagrce RUS 96-323 712M6 LIE (a). Disclosure Statement; (b) Promissory Note, (c) Agency Deed of Trust; and (d) Deolaration of Conditions, Covenants and Restrictions of Property.. Participant agrees and acknowledges that the Agency Deed of Trust and the Declaration of Conditions, Covenants and Restrictions of Property shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. 14. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the Agency shall -from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Agency Loan. 15. Govrrn!nF, 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 Calirornia. .16. Amendn�ent of Agreemen . No modification, rescission, wailver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 17. Agengy May Assig . Agency may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 18. Participant Assignment Probibite - In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not probibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous Loan Agreement Page 7 of 8 4 --V CIA -96-AgrceMallacdcan3grc: It US 96-573 7126/96 agreements between the Agency and the Participant concerning all or any part of the sub ect matter ofthis Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. "PARTICIPANT" AUGUST 13, 1996 19 By. -% Date: EMUM ZT5 RMLACE Date: 19 Printed Name: By: Printed Name: Date: .19— By: ATTEST: Agency Clerk REVIEWED AND APPROVED: txecu-0e biie-c-tor AI Printed Name: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By; 47-) % a-c� Chairman APPROVED AS TO FORM: 'e. Agency Co6sel INITIATED AND APPROVED: Aw C. Director of Econornili�bevelopment Loan Agreement Page 8 of 8 4NAG:4-96.Agrcc.Wallacc:loanagree RLS 94-523 W26/96 EXHIBIT A LEG 'ROPER!Y-- PARCEL 1: An uadivided one twenty second (1/22) fee simple interest as a tenant in cannon in and to all of the COTM-Ion Area defined in Declaraticn referred to below and described in the condominium Plan ("Plan") for Lot I of Tract No. 14828, which Plan was recorded on August 25, 1994 as instrument vo. 94-0525335 of Official Records of orange County, over Lot I of Tract Vo. 14828, in the City of Huntington Beach, County of orange, state of California, as per Tnap filed in Book 706 . Pages 27 to. 29 of ItiBcellaneous Itaps, in the office of tile CountY Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in dead recorded August 16, 1921 in Book 401, Page 356 of Deeds, and Ln various other deeds of record. PARCEL 2: Unit 11o. 22 consisting of certain airspace and surf ace elements, as shown and described in the condominium Plan referred to in Parcel I ab�ve. Parcel 3 1 non-exclusive easements for access, ingress, egress* use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as instrument No. 94-0525336 of Official Records. Parcel 4: EXCIUSiVe easements appurtenant to Parcels I and 2 referred to above, for balcony or patio purposes, over the areag:defined, depicted and assigned on the Plan. 11 Exhibit A to Loan Agreement Page I of I 4's%Agrec:l�largalis:Exii;bitAWI/26M6 I k.) EXHIBIT B PROMISSORY NOTE 1 35,000.00 AUGUST STH 19 96 ----------- Huntington Beach, California FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The Reidevelopment Agency of the City of Huntington Beach ("Holder") at 2000 Main Street, P.O. Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct from time to time in writing, Thirty-five Thousand Dollars ($35,000.00) (the "Note Amount") together Vith interest thereon at the rate set forth herein. All sums hereunder shall be payable in lawful money. of the United States of America and all sums shall be credited first to interest then due and the balance to principal. I . Interest Rate Simple interest shall accrue on the Note Amount at a rate of five percent (5.00%) per annum. If the fair market value of the Property does not increase at least five percent (5.00%) per annum, the accrued interest on the Note Amount shall be forgiven by the Holder. 2. Maturity Date The balance of all unyaid principal and accrued interest shall be due and payable on AUGUST 5TH i .20 6 (thirtieth (30th) anniversary date of this Promissory Note). 3. Acceleratign The whole of the Note Amount plus accrued interest and all other payments due hereunder shall become due and be immediately payable to the Holder by �he Maker upon the occurrence of any one of the following events: (a) Maker sells or otherwise transfers title to the Property; or W Maker refinances any lien or encumbrance to which the Agency Deed of Trust is subordinate for a loan amount which is in excess of the then current loan balance of s6ch prior lien or extends the amorfization period of the loan secured by such prior lien; or (c) Maker fails to occupy the Property or to perform any obligation under the Agreement (as heretn'after defined). "Exhibit B" to Loan Agreement Pagel of3 4W-96A9rcc:WxJ1acc:Exhibit0 RLS 96-523 7/26196 kl-� 4. Security for Not This Promissory Note shall be secured by a second deed of trust encumbering the Property (the "Agency Deed of Trust"), executed by Maker as Trustor in favor of Holder as Trustee. 5. Prepayment of Note Amqunt Maker may prepky to Holder the full Note Amount, together with simple interest thereon at a rate of five percent (5.00%) per annum, at any time prior to the due date of the Note Amount. 6. Loan Agreement This Pro miss ory'Note is made and delivered pursuant to and in implementation of Loan A ��re�Tent entered by ana between the Holder and the Maker dated —AUGUST 5, _ (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference. The Maker acknowledges that but for the execution ofthis Promissory Note, the Holder would not enter into the Agreement or make the loan contemplated therein. Unless definitions of terms have been expressly set out at length herein, each term shall have the same definition as set forth in the Agreement. 7. Holder May A�sirn Holder may, at its option, assign its right to receive payment under this Promissory Note without necessity of obtaining the consent of the Maker. S. Maker Assignment Prohibite In no event shall Maker assign or transfer any portion of this Agreement without the prior express written consent of the Holder, which consent may be given or withheld in the Holder's sole discretion. lRewise, no assumption of the Agency Loan shall be permitted at any time. This Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan proceeds hereunder. 9. A-ttorneys'Fees and Costs In the event that any action is instituted to enforce payment under this Promissory Note, the Maker promises to pay such sums as a court may fix for court costs and reasonable attorneys' fees. 10. Non -Waiver Failure or delay in giving any notice required hereunder shall not constitute a waiver of any default or late payment, nor shall it change the time for any default or payment. "Exhibit B" to Loan Agreement Page 2 of 3 4'"-9GAgrcc-.W&11&ct:EWbW1 RUS 96-323 W260M, 11 11. Successors Bound - This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. WUMVIA B y: Printed Name: BARBM 00 MLLAI By: Printed Name: By: Printed Name: "EWibit B" to Loan Agreement Page 3 of 3 4V4-%ASm.WaIIac@:R%MbftD RLS 9&523 712"d RECORDING REQUESTED BY AND WHEN RECORDED RETUILN TO: Redevelopment Agency of the City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Attn- Agency Clerk 13PKC Above Ibiz Line FV Recordet's Use.) This document is exempt from' recording fees pursuant to Governmeni Code Section 6103. DEED OF TEUST NVITH ASSIGNMENTS OF REWS THIS DEED OF TRUST is made this 5= day of AUG. 19 96, by and among BARBARA JO WALLACE, whose address is 18051 Joyful Lane, 9205, Huntington Beach, Califordia. (the "Trustor") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPIMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "BE�MFICIARY'% 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. TOGETHC-R 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 an 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 her6iftafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. "Exhibit C" to Loan Agreement Page I of 15 4\i'%Cj:4-96agrce.Wallicc:ExhibitC RLS 96-523 WMG A. FOR THE PURPOSE OF SECURTNG: I . Payment of the sum of Thirty-five Thousand Dollars (S' )5,000.00) with interest thereon according to the terms of a Promissory Note of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof . 2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes, or (b) as may be added to the indebtedness secured hereby in accordance with the provision of this Deed of Trust. 3. Performance of each and every obligation, covenant, promise or agreement of Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated AUGUST 5 19_L6, 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 THF_ SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: I . To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at 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 comrnit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; "Exhibit C" to Loan Agreement Page 2 of 15 4NsXG:4-96zgf,ee:Wallacc:EyJiibitC It I-S 96-523 MGM (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow aeneficiary 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-, (0 not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements ' will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and 'materials filrnished to the said property. Trustee upon presentation to it of an affidavit signed by the Befteficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination "Exhibit C" to Loan Agreement Page 3 of 15 4\S%G:4-96agrcc: Wallace: ExhibitC RLS 96-523 7/26/96 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 0 0 or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. . To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property,. (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (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 "Exhibit C" to Loan Agreement Page 4 of 15 4\s\GA-96ai;rcc: Wql I ace: ExhibitC RUS 96-523 7126t96 expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. S. To appea� 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 broughf by Beneficiary to foreclose this Deed of Trust. 6. To pay immediately and without dernand, 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 oblio, tion 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 minetal of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver ofthis eight shall be effective unless in w6fing. 8, That any award, settlement or damages for injury or damages to such property, or in construction %Vith 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 efte--t. 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, perfbrm�ing 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. T�at 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 rerna:inder of said property for the full amount of the indebtedness then or "Exhibit C" to Loan Agreement Page 5 of 15 W.Orj:4-96jLgcc.Wattacc,Exhib!tC R LS 94-52 3 7126% thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said prooerty, 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 0 or extension of time of payment of the indebtedness secured hereby, or any part thereof 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re* assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, 0 issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Trust Deed, or cause Beneficiary to be (a) 11mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Beneficiary confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents,, issues and profits shall not grant to Beneficiary or Trustee the right to pos'session, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Beneficiary or Trustee the duty to pr oduce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver "Exhibit C" to Loan Agreement Page 6 of 15 4\s\Cj:4-96 agrce:Wal lace: ExhibitC RUS 96-523 7/26/96 to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, dnforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits 'shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided; or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys'fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the.lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. If the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of "Exhibit C" to Loan Agreement Page 7 of 15 4\s\G-.4-96agrcc:Wallacc:l-'xhibitC RLS 96-523 7/26/96 Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said propertj 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 announcerne * int at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have "Exhibit C" to Loan Agreement Page 8 of 15 4\d\G:4-96agrce:Wa11&=:rWiibitC RLS 96-523 W26/96 k.) �.W 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 endorsc receipt thereof upon such instrument. The procceures 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, ilures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shali mean the owner and holder, including pledge, of the Note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singu. r number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on January 1, a w*ritten operational report. Such operational report shall contain a brierbut complete statement of the year's inzome 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 conne:6on with said property of this Deed of Trust, including cha'nging Berieficiary'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, duty executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto ofpcnding sale under any other Deed or,rrust or of any action or proceeding in which Trustor, Berieficiary, or Trustee shall be a party unless brought by Trustee. 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even iftot-withstanding 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 Prordissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to "Exhibit C" to Loan Agreement Page 9 of 15 4�&IO-4-96a&rcc-.Watlxcc:Exhibi[C RLS 96-523 W26/96 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 derault 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 placeas such parties hereto may designate in writing. . THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR: I By.� aj) 611c, EAPBAPA JO WALLACE By: By: APPROVED AS TO FORM: Ajency Counsel he_,N d 7 ..:Yj !'/ t "Exhibit C" to Loan Agreement -Page 10 of 15 4%sNO.4-963&rcc:Waliace:E)diibitC RLS 96-523 7/26196 tw� �Id JUDER TO L)EED-OF TRUST FIRST TIME 1-fOMEBUYER DO!V_N P6YMEa ASSIST6NCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUCEJST 5TH — . 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand Dollars ($35,000.00) (the "Loan Amount"). All terms in tHs Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. In the event that the Agency Loan becomes due and payable prior to the thirtieth - ' anniversary of the date of this Agreement, Trustor shall pay to Beneficiary concurrent with such sale, transfer ' or refinancing,, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchast Price (defined below) as follows: 1. Prior to fifth anniversary of the Agency Deed of Trust: fifty percent (50%) 2. After fifth anniversary but) prior to sixth anniversary: forty-eight percent (49%) 3. After sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to ei&h anniversary: forty-four percent (44%) 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: tFirty-eight percent (38%) S. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9. After twelfth anniversary but prior to tFirteenth anniversary: thirty-four percent (341/1o) "F-xhibit C' to Loan Agreement Page 11 of 15 4's'_C;4-9G zgrcc:W&[1acc:ExNbitC RLS 94-323 7126M 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%) 11. ARer fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20111o) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (180/.) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twe inty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. ARer twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (1011/o) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. Afler tweniy-sixth anniversary but prior to twenty-seventh annivers3ry: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) "Exhibit C" to Loan Agreement Page 12 of 15 4WA-96aVcc:WaIIacc-Exhib%C RIS 96-523 712M6 kw-� �a I 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: 26. After twenty-ninth anniversary but prior to thirtieth anniversary: 27. After thirtieth anniversary: two percent (2%) one percent (1%) zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's. commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complie's 'Mith the following: No capital improvements which cost more than two thousand five �undred dollars ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized tist of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to Oe Purchase Price upon rzrticipant's submission ofevidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustoes interest in the Property, exclusive of escrow fees, title insurance costs, brokees commissions, loan fees or any other closing or transaction costs. The percentage factor so determined is the "Applicable Factor." If the Property is sold, an amount equal to the Applicable Factor multiplied by the difference between (i) tile original Pr6perty purchase price and (ii) the amount received by Trustor as the Property sale price (as - reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. If the Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is subordinate is refinanced for a loan amount which is in excess oFthe then current loan balance or extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (H) the appraised value of the "Exhibit C" to Loan Agreement Page 13 of 15 4's'�0:4-96agrcc:Wallacc:Cxhib;tC RLS 96-523 W26)96 ProPerty as of the time ofsuch transfer or refinancing. Dated:- AUGUST 13, 1996 APPROVED AS TO FORM: ZZ 41, Agency Attorney -1 2 !j - P- 4Wj:4-96x&=:W&H*ccXxhibhC RUS 96-523 W206 TRUSTOR 9-0 ff-le,( 'e.-. BAP,BARA J6 WALLAcs "ExHibit C" to Loan Agreement Page 14 of 15 LUDER TO DEED OF TRUST SUPERIORITY OF FIRST LENDFR DOCUMENTS (if required by tht First Lender) This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUGUST 5 _ I 19 96 (the "Loan Asreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand dollars ($35,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately derined herein, shall have tile meanings as defined in the Loan Agreement. NotVithstanding any provision herein, this Deed of Trust shall not diminish or affect the fights of the First Lender -under the deed of trust executed by Trustor in favor of the First Lender as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter recorded against the property described herein. Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions of this Deed of Trust shall terminate and have no fLrther force and effect upon the occurrence of one of the following events: 1) Title is acquired by the First Lender or another party upon foreclosure of a deed of trust by the First Lender. 2) Title is acquired by the First Lender cr another party by a deed in lieu of foreclosure of the First Lender deed of trust. Dated: AUCUSr 13, 1996 APPROVED AS TO FORM: Agency Attorney -)-J� Jb TRUSTOR- BMMM Jo,�&Lhm "Exhibit C' to Loan Agreement Page 15 of 15 4'%s�G:4-96ar.rcc.-WiLIlitcc:l-' AMWEC RLS 96-523 7126/96 LIM CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFCRNIA SS. COUNTY OF 0RAN= Oil AUGUST 13, 1996 before me, the undersigned, personally appeared BARBARA JO WALLACE personally known to me (or proved to me on the basis of satisfactory evidence) to be (lie pei-son(s) whose name(s) fs/are subscribed Jo the w ithin instrument and acknowledged to me (liaf he/shelthey executed the same In his/her/their EqUIlimized capacily(ies), and that by his/her/their signaklie(s) On the Instrument the person(s) or the entity upaii behalf of which the person(s) acted, exeWted the Instrument. WITNESS my hand and official seal. V his area for o1ricial iiotailal senq LINDA J. CAMPBELL COMM.# 1045344 al HOTARYPURC-CALIFONMAX ORANGE COUMY __16 LINM . J. CAMPBELL ",V.- MY Comm. E3*91 DEC. 20. ITT UM OPTION L H[Mf H HM f!"111,11,11fri film Though the data below are not required by law, they may prove valuable to perrsons relying on [lie document arid could prevent (lie fraudulent reattachmetit of this form. Cnpncity Cininjed By Slgiier Windividual L-j Corporate Officer 'I 111eq(S) 17J Partner(s) D Attorney -in -Fact o rrustee(s) Ij Guardian[Conservator 0 Other: Signer Is Representing: Name of Person(s) or Enlllytles) 0 Limited 0. General Descriptlati or Attached Documciit or wel/.-J-T- 1 Itto of I ype of Documplit I.-Jumber of Pages Vate of Document Slgnet(v) Other Vian Named Above EXHIBIT A TO AGENCY DEED OF TRUST LEGAL DESCRIPTION 'PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to all of the Co=,on Area defined in Declaration referred to below and described in the condominium Plan ("Plan") for Lot I of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of official Records of orange county, over Lot I of Tract t1o. 14828, in the City of Huntington Reach, county of Orange, state of California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Isaps, in the off Ice of the county Ptecorder of said county. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and othelz hydrocarbon substances, as reserved Er. -deed recorded August 16, 1921 In Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: vnit 11o. 22 consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel I above. Parcel 3s ron-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, conditions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. Parcel 4: EXCIUSime easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purpoces, over the areas:defined, depicted and assigned on the Plan. I "Exhibit A" to Agency Deed of Trust Page I of I 414%G:Agrce:htirgolis:ExhCDccct47126MG RLS 9G-127 EXHIBIT D DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY RECORDING REQUESTED BY AND WREN RECORDED MAIL TO: (Space above for Recorder's use.) THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (the "Declaration") is made by and between BARBARA JO WALLACE (the "Covenantor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency" or "Covenantee") as of the date set forth below. RECITALS A. Covenantor and the Agency have entered into a certain Loan Agreement dated AUGUST 5 19 96 -` (the "Agreement," a copy of which is on file with the Agency at its offices and is a public record) pursuant to which the Covenantor has agreed to subject certain real property (referred to in the Agreement and referred to herein as the' ' 'Property") described in the "Legal Description or the Property" (which is attached hereto as Exhibit "A" and incorporated herein by this reference) to certain covenants, conditionsand restrictions. B. The Community Redevelopment Law (California Health and Safety Code 33000 et seq.) provides that a redevelopment agency shall establish covenants running with the land in furtherance of redevelopment plans. NOW, TfIEREFORE, the parties hereto agree and covenant as follows: "Exhibit D" to Loan Agreement Pagel of9 4\s%0:4-96Agree:Walia":ExlitbitD RLS 96-323 7129/96 I . Affordability-Coveriants. Covenintor agrees for itself, and its successors and assigns, and every succes,;or to Covenantor's interest in the Property, or any part thereof that for thirty (30) years from the date ofrecording of the Deed of Trust in favor of the Agency regarding the Property (tile "Expiration Date"): (a) The Property shall only be owned and occupied by Converiantor or by other persons or families of "Moderate Income." "Moderate Income" shall mean persons or families earning One Hundred Twenty Percent (120%) or less of Orange County median income, adjusted for appropriate family size. (b) The Property shall be kept available at Affordable Housing Cost (as defined below) to the Covcnantor or other persons or families of moderate income. Affordable Housing Cost shall mean, as to each person or family of low or moderate income, that purchase price which would result in monthly housing payments which do not exceed an amount under any currently preVailing conventional home mortgage lerding rates applied by any reputable institutional home mortgage tender, or the lending rates of any government- subsidized or special mortgage program for which such person or farilily qualifies and has obtained a first trust deed loan, which do not exceed thirty-five percent (35%) of One Hundred Ten Percent (110%) of the Orange County monthly median income for those persons and families of moderate income (as determined by the United States Department Of Housing and Urban Development) earning between Eighty Percent (80%) and One Hundred Ten Percent (110%) of tile Orange County monthly median income, and Thirty -Five Percent (3 5%) of the monthly median income of any person or family of moderate income which earns more than One Hundred Ten Percent (110%) and not more than One Rindred Twenty Percent (120%) of the Orange County median income. (c) The covenant contained in this Section I shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 2. Transfe[of ftQperty. No transfer of the Property shall occur until the Agency determ�ines (a) that the proposed purchaser intends to occupy the Property as the proposed purchaser's principal residence, (b) that the proposed purchaser is a person or family of moderate income and (c) that the proposed transfer occurs at an Affordable Housing Cost. The Agency shall not be obligated to approve a transfer until and unless the proposed purchaser has subinitted to the Agency such information and completed such forms as the Agency shall request to certiFy the proposed purchasees intent with respect to its residency of the Property and its gross income, and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of tile proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall submit to the Agency an cxecuted disclosure statement which certifies that the purchaser is aware that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate income person or family, that the maximum permitted sales price may be less than fair market value and that the unit must be owner -occupied at all times and cannot be rented or leased. Covenantor shall cooperate with the Agency in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the Agency in connection with the Coveriantor's original sale of the Affordable Unit, provided that "Exhibit D" to Loan Agreement Page 2 org 44WIA -96A&rce:W&11ace:ExhibhD RLS 96-523 7129M the Coveriantor shall not be obligated to incur any out-of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PUPCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THF_ TRANSFER PRICE PERMITTED BEREUNDER MAY BE LESS THAN THE FAIR M.ARKF_T VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE I1,1 THE SAME MANNER. AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT - ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR, HEIR OR A§SIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE THE- PRIMARY OBJECTIVE OF THE AGENCY AND TFUS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST. Covenantor Initials The covenant contained in this Section 2 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 3. Non -Discrimination Covenants. Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subteriants, sublessees, or vendees in the Property. Coveriantor and its successors and assigns, shall refrain from restricting the rental or lease (if permitted by Covenantor) or sale of the property on the basis of race, color, religion, sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or non segregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discritniination against or segregafton of, any person or grou� of persons on account of race, color, religion, sex, marital status, national origin or'ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, "Exhibit D" to Loan Agreement Page 3 of 9 414%0.4-96A&rcc:Wattacc:ExitibitD RLS 96-523 7129/96 nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees in the land herein conveyed. The foregoing convenants shall run with the land." (b) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, cxecutors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, ancestry or national - origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises 'herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or pra.-tices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease, transfer. use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees of the premises." Nothing in this Section 3 shill be construed to zuthorize the rental or lease of the Property if such rental or lease is not otherwise permitted. The convenants in this paragraph 3 shall run with the land in perpetuity. 4, ' Covenant� 12o Not Impair Lien. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 5. Covenants Fqr Benefit of City and Agengy. All covenants without regard to technical classification or designation shall be binding for the benerit of the Covenantee and the City of Huntington Beach (the "City") and such covenants shall run in favor of the Covenantee and the City for the entire period during which such covenants shall be in force and effect, without regard to whether the Covenantee or the City is or remains an owner of any land or interest therein to which such covenants relate. The Covenantee and the City, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such "Exhibit W to Loan Agreement Page 4 cf 9 RLS 94-323 MW96 IN MW breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenatits, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. rN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument to be executed on their behalf by their respective officers hereunto duty authorized, this 13 day AUGUST 96 of 19 COVENANTOR MPMMM JO"WALLACE APPROVED AS TO FORM: Agency Counse7l--�� 'bee -I "Exhibit D" to Loan Agreement 4's%G-.4-96A&ree:Wallace:Exhibitt) Page 5 of 9 RLS 96-523 7/29196 STATE OF CALIFORNIA ss COL NITY OF OnANGE On AUGUSr 13, 1996 . before me, L=A J. CAMPBELL nanie, title; e.g., "Jane Doe, Notary Public"), personally appeared BARBARA 30 %ULACE (riame(s) of signer(s)), personally kno%%m to be — OR — Xx proved to me on the basis of satisfactory evidence to be the person(s) whose namc(s) islare subscribed to the within instrument and acknowledged to me that he/shc1they executed the same in hisAier/dicir audiorized capacity(ics), and that by ltisAicr/tlicir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, cxecuted the. instrument. m and and official seal. y h, M LILNDAJ. CAMPBELL NOTARY PUBLIC - CALIFORNIA :1 COMPA. # 10,15344 a3 ORANGE COU.VIY (S ignatu,?rc of Notary) WCOmrn-Ewp�res=-.20,19W — — - - - - - , V LINDA J. CAMPBEI.L CAPACITY CLAIMED BY SIGNER: XX Individual Corporate 0 fficer(s): Titlz(s) Partncr(s): Limited Ccncral Attorney -in -Fact Trustee(s) Guard ian/Consmator Other SIGNER IS REPRESENT N.G-. Name of Pcrson(s) or Entity(ies) - ATTENTION NOTARY. Although the irlormation requcsted below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACF11mEm OF TIIIS CERTIFICATE TO ANOTHER DOCUMENT. :EHTS CERTIFICATE Title or Type of Document D6CLR=ICt4 OF C0tMITjCtjS,, 00VENAWS MULT 1BE ATTACHED AND PX=UC1!109S FOR PMPEPTY TO THE DOCUMENT Number of Pages V DESCRIBED Date of Documeni--AUGM 5,, 1996 LT RIGHT: Signer(s) Other Than Named Above: "Eklibit D" to Lozn Agreement Page 6 of 9 4'.s%0:4-96A&rcc:Wallacc:Exhibi,D RLS 96-523 7/29/96 STATE OF CALIFORNIA ss COUNTYOF On . bcforc me, (name, title, e.g., "Jane Doe, Notary Public"), personally appeared (name(s) of signer(s)), personally known to be -- OR -- proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) isfaTO subscribed to tile Nvithin instrumcnt and acknowledged to me that he/she/they executed the same in his/her/their -authorized rapacity(ics), and that by his/hcr/their signaturc(s) on the instrument the person(s), or the cntity upon behalf of which the person(s) acted, executed tile instrurntnt. Witness fny hand and official seal. (Signature of Notary) QAPACrT`Y CLAIMED BY SIGNE : Individual Corporate Officer(s): Title(s) Partner(s): Limited General Attorney -in -Fact Trustee(s) GuardiantConservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ics) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE M!IST BE ATTACHED 10 THE DOCUMENT PESCRIBED AT RIGHT: Title or Type of Document Number of Pages _ I Date of Document Signer(s) Other'Iban Named Above: "ExFibit D" to Loan Agreement Page 7 of 9 4%sNG:4-96Agrec-.Waltice:EWtbatD RLS 96-523 7129M STATE OF CALIFORNIA ss COUINTY OF Oil -- __, b.-fore me, (name, title, e.g., "Janc Doe, Notary Public"), personally appeared (name(s) of signer(s)), personally known to be -- OR — proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) istare subscribed to the within instrument and acknowledged to rne that hcfsl1cAh.-y exe - cuted the samz in his/licrIfficir authorized capacity(ics), and that by his/herlthcir 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 sea[. (Signature of Notary) CAPACITY CLAIMED BY SIGN Individual Corporate Officer(s): Title(s) Partner(s): Limited General Attornty-in-Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ies) ATTENTION NOTARY: Although the information requested bclo%v is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHIMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. n1l S -CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document -RIQEE- Signer(s) Othcr Than Namtd Above: "Exhibit D" to Loan Agreement Page 8 of 9 4'&%0:4-96ASree:Wallxcc:ExltibilD RLS 96-523 7/29196 k.) EXHIBIT A LEGAL DESCRILTION OF PROPERTY [To Be InsCrtedJ LEGAL DESCRIPTION EXHIBIT "A" PARCEL 1: An undivided one twenty seCond (1/22) fee simple interest as a tenant in common in and to all of the Common Area defined in Declaration referred to below and described in the condominium Plan ("Plan-) for Lot 1 of Tract Wo. 14828, which Plan was recorded on August 25, 1994 as instrument No. 94-0525335 of official Records of orange County, over Lot 1 of Tract No. 14828, An the -City of Huntington teach, County of Orange, State of Californial as per map filed in Book 706, Pages 27 to 29 of is.iBcallaneous Maps, in the office of the county Recorder of said county. Exceptiag therefrom all oil, petroleUm, asphaltum, gas, minerals and other hydrocarbon ubstances, as reserved in deed recorded August 16, 1921 in Book 401, page 356 of Deeds, nd in various other deeds of record. PARCEL 2: unit t;o. 22consisting of certain airspace and surface elements, as shown and described in the condominium Plan referred to in Parcel 1 above. Parcel 3 1 non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment,, support, maintenance, repairs and for other purposes, all as described ir that certain Declaration of covenants, conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-052533( of Official Records. Parcel 4: Exclusive easements appurtenant to Parcels I and 2 referred to above, for balcony or patic. purposes, over the areasidefined, depicted and assigned on the Plan. "Exhibit D" to'Loan Agreement Page 9 of 9 4's%0:4-96A&fcc:W&Ilicc:Exhib!tD RLS 96-523 7129196 List of Down Payment Assistance Borrowers at Pacific Park Villas ATTACHMENT #3 RCA ROUTING SHEET INITIATING DEPAFITMENT: Economic Development I SUBJECT: c Transferability of Pa ific Park Villas Down Payment Assistance Loans , COUNCIL MEETING DATE: May 17,1999 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolufton (w1exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (St]gned Ln fuLl by the City Attomey) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by CityAffomey) -Not Applicable Certificates of Insurance (Approved by the.q�tyAttomey) Not Applicable Financial Impact Statement (Unbudget, over $5,000) Not Applicable (If applicable) Not Appjicable —Bonds Staff Report (if applicable) Not Applicable Commission, Board or Committee Report (if applicable) Not Applicable Finding s/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORWARDED Administrative Staff Assistant City Administrator (initial) City Administrator (initial) City Clerk EXPLANATION FOR RETURN OF ITEM: RCA Author: Duran at extensionl 529 19093 BeWi Boulevard * Huntington Beach, CA 92648 9 (714) 843-0101 * FAX (714) 843-9949 I ZUYrR/R0R3POWZR CLOSING STJLTZKLRT BXTTLZkMNT DkTts 03/13/96 TIEMPO ZSCROW, INC. Escrow Statement of 19093 BEACH, BLVD. Peter Margolin HUNTINCTCH DFACH, CA 92648 Escrow officers Linda J. Campbell 18051 Joyful Lane #104 Escrow Numb*rs 8951-C I Huntington Reach, Ca. 92648 Property Addreses 18051 Joyful Lane, #104 Huntington beach, CA 92648 ---------------------------------------------------------------------------------------------- DEBIT CREDIT ---------------------------------------------------------------------------------------------- consideration 204,900.00 Deposit or Earnest Money 33,482.83 2nd T.D. City Loan 3S,000.00 PRORATES & JLDJUSTMTs: County Tax 4 1,112.81 Per/Halt from 03/13/96 to 07/01/96 667.44 Assessment 4 145.22 Per/Mon from 03/13/96 to 04/01/96 87.22 Non -recurring costs 3,000.00 NEW LOAN(Sjs New Loan Amount 140,000.00 Loan orig roe 1,400.00 Tax Service roe r7B Mortgage services 70.00 Underwriting roe rTB Mortgage Services 150.00 Processing roe zwerald Pacific Mortgage 49S.00 Document Fee zzerald Pacific Mortgage 350.00 administration & runding Fee trarald Pacific mortgage 370.00 xppraisal Review ?so Zrorald Pacific Mortgage 100.00 Interest $ 25.41 Per/Day from 03/12/96 to 04/01/96 480.22 EXISTING LOANSs COSTS, C W GES & OTHER DISBURSEMENTSi Loan Tie in Fee Tiompo Escrow, Inc. 175.00 messenger Too* Tibmpo Escrow, Inc. 35.00 Notary foes Linda .7. Campbell 40.00 Homeowners Association Cart. Xeyetane Pacific Property 35.00 04/01/96 BOA DUOS Pacific Park villas 145.12 Capital Contribution Xoystone Pacific Property 386.38 ESCROW TESS & CHARGESs settlement/closing fee CERTIFIED TO BE A TRUE AND EXACT. 549.55 TITLE FEES & CHMGZSi COPY OF THE ORIGINAL HEREOF. Title inairance 333.00 Sub Title roe 95.00 2nd Loan Policy and Endorsement 175.00 Recording fees 66.00 Balance: (Check Enclosed Herewith) 370.00 TOTAL DEBITSt 211,482.83 TOTAL CREaITSt 211,482.83 M3 Beach Boulevard e Huntington Beach. CA 92648 * (714) 843-0101 * FAX (714) 843-9949 -- SE=R/LZMER CLOSING STATEMENT SETTLEMENT DATZs 03/13/96 TIEMPO ESCROW, INC. Escrow statement aft 19093 BEACH, BLVD. eassounian capital Venture m.uxTzNGToH BEACH, CA 92648 Escrow offLcsr3 Linda J. Campbell 16473 Bolsa Chic& Street Escrow Numbers 0951-C Huntington beach, Ca 92649 Property Addrosor 18051 joyful Lane, #104 Huntington Beach, Ca 92648 ------------------------------------------------------------------------------------------ DZBIT CRZDIT --------------------------------------------------------------------------------------------- Consideration 204,900.00 PRORATES A ADJUSTMENTSt County Taxes $ 1,112.81 Per/Hall from 03/13/96 to 07/01/96 667.44 Assessments $ 145.12 Per/Mon from 03/13/96 to 04/01/96 87.12 Von-rocurrLng costs 3,000.00 COMKISSI03(3)3 commission Ultimate Now Home $also 2,890.00 COSTS, CHARGES G OTHER DISBURSEM=S: BOA Set Up Too Keystone PacifiO Property 45.00 2nd Half 2995-96 Taxes Continental 1,112.81 Supplemental 1995-96 Continental 3e3.24 ESCROW FEES & CHARGESs TITLE FEES & CHARGESo Title insurance 416.70 Wire Too 25.00 City/County tax stamps 225.50 Balance$ (Check Enclosed Herewith) 197,548.31 TOTJLL DZBZTSt 205,654.S6 TOTAL CREDITS3 205,654.56 CURTIFIED TO DE A TRUE AND EXACT. CUPY OFTHE ORICINAL HEREOF. T WPOAS ROW, INC. 11�rz� Lll� X-6 --'C &7 Council/AgencyMeeting Held: DeferredXontinued to: ;�Approved 0 Conditionally Approved 0 Denied Ci, Clerk's Signature Council Meeting Date: March 4, 1996 Department ID Number ED 96-19 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN & REDEVELOPMENT AGENCY MEMBERS SUBMITTEDBY: MICHAEL T. UBERUAGA, Executive Directo�r��—1 PREPARED BY: DAVID C. BIGGS, Director of Economic Develo ment SUBJECT: DOWN PAYMENT ASSISTANCE PROGRAM PARTICIPANT APPROVAL FOR PACIFIC PARK VILLAS PROJECT (Talbert - Beach Project Area) Statement of Issue, Funding Source, Recornrnended Action, Alternaitive Action(s). Analysis, Environmental Statuv� Attachment(s)] Statement of Issue: The Agency is committed by a Disposition and Development Agreement to provide second trust deed loans to moderate income buyers in the Pacific Park Villas located in the Talbert- Beach Redevelopment Project Area. Funding Source: Redevelopment Agency Housing Set -Aside Funds, Account Number E-TX-ED-923-7-75-00. Recommended Action: Motion to - Approve the borrower listed on the attached by name, the amount of the loan and the specific property subject to trust deed and authorize the Chairperson and Agency Clerk to execute the loan documents between the Agency and the participant as prepared by the City Attorney. Altemative Action(s): Do not approve the participants. REQUEST FOR ACTION MEETING DATE: March 4,1996 DEPARTMENT ID NUMBER: ED 96-19 Analysis: On June 3, '1993, the Redevelopment Agency approved a Disposition and Development Agreement (DDA) between the Agency and Sassounian Capital Ventures Inc., calling for the completion of 38 condominiums on a site in the Talbert -Beach Redevelopment Project Area. Under the DDA, $750,000 of Redevelopment Housing funds are committed to assist up to twenty-five moderate -income buyers in the Pacific Park Villas Condominium project. This borrower has been reviewed to assure that they meet the income restrictions and other guidelines for the Down Payment Assistance Program. Environmental Status: None Attachment(s): 1 - Prospective Borrower RAA9640.DOC !!a 02123196 2:10 PM REQUEST FOR ACTION MEETING DATE: March 4,1996 DEPARTMENT ID NUMBER: ED 96-19 DOWN PAYMENT ASSISTANCE PROGRAM Location of Property Loan Name Amount Sublect to Trust Deed 95-02 Peter Margolis $35,000 18051 Joyful Lane, #104 Vote: 1. Borrowers have received "conditional loan approval" from first trust deed lender. 2. Pursuant to Agency direction, overtime and bonuses are considered indefinite sources of income and may or may not be used to qualify borrowers on a case -by -case basis. Document3 -3- 02123196 1:38 PM LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 8th ' day of March 19 96 by and between PETER MARGOLIS ("Participant") and the REDEVELOPMENT AGENCY OF THE CITY OF H1JNTrNGTON BEACH, a public body corporate and politic (the "Agency"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as -- -- 18051 Joyful Lane. # 104__,_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 i not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and cuff ently earns less than 1201/'0' of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to the Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. The Agency desires to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach (the "City"). E. The Agency wishes to lend, and Participant wishes to borr ow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: I . Agengy Lean. The Agency shall loan to Participant (the "Agency Loan") the amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the Program. The Agency Loan shall be paid to the seller of the Property (the "Seller") by the Agency through deposit of the Agency Loan proceeds into escrow with Tieyrpg Esgrow, Ing, (the "Escrow Agent") (Escrow No. 8951—C . The Agency shall direct the Escrow Agent to apply the proceeds of the Agency Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the Agency a promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple Loan Agreement Page I of 8 4\s\Agree:Margo1is:Loanagree 02/26/96 interest at five percent (5%) per annum, due in thirty (30) years and payable upon the earlier sale, refinancing or transfer of the Property, substantially in the form of the "Promissory Note" attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to the Agency a second deed of trust encumbering the Property which shall secure the Promissory Note (the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated herein. 2. Maintenance of Prop=. Participant shall maintain the improvements on the property in a manner consistent with community standards and in a manner which'"ill 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 anl all covenants and agreements established by any homeowner's associaton or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws. 3. Due on Sale, Transfer or Refinancing. Participant agrees to notify the Agency not less than thirty (30) days prior to (i) the sale or transfer of the Property or (ii) any refinancing of the lien of & Agency Deed of Trust or any lien to which the lien of the Agency Deed of Trust is subordinate (the "First Mortgage"). The Agency Loan and a interest accrued thereon shall be due and payable upon (i) such sale or transfer, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then Current loan balance or for an amortization period longer than the loan secured by the First Mortgage, or (iii) Participant is no longer an occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan. 4. Equity Shadng. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency concurrently with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary of the Agency Deed of Trust: 2. After fifth anniversary but prior to sixth anniversary: 3. Afler sixth anniversary but prior to seventh anniversary 4. Afler seventh anniversary but prior to eighth anniversary: Loan Agreement Page 2 of 8 4\s\Agree:Margolis:Loanagrec 02/26/96 fifty percent (50%) forty-eight percent (48%) forty-six percent (46%) forty-four percent (44%) 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) 8. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9. After twelfth anniversary but prior to thirteenth anniversary: thirty-four percent (34%) 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%) 11. Aftcr fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. Afler sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (IS%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (141/o) Loan Agreement Page 3 or 8 4\s\Agree:Nlargolis:Loanagree 02/26/96 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (10%) 22. After twenty-fifth anniversary but prior to tweenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (M) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the folloiAing: No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unlessAithin sixty (60) days following completion of such capital improvements to the Property Participant shall send the follm.,drig to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs, brokees. commissions, loan fees or any other closing or transaction costs. Loan Agreement Page 4 or 8 4\s\Agree:NIargolis:Loanngree 02/26/96 A. Equity Share Upon Sale or Transfer. The Equity Share Amount shall be payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer") whose income exceeds 120% of the current annual median income for the Orange County area. If the Buyer does not submit an income verification statement to the Agency, the Buyer shall be deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the Equity Share Amount shall not become payable. B. Equity Share Upon Refinancing or Failure to Occupy. The Equity Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property or material breach of any other provision of this Agreement which causes the Agency Loan to become due and payable. The Sales Price for purposes of determining the Equity Share Amount shall be determined by an appraisal of the Property. The Agency shall appoint a certified, independent, appraiser to conduct an appraisal of the Property, at Participant's expense, and Participant agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between the Purchase Price and the appraised value of the Property as of the time of such refinancing. This Agreement shall be terminated upon the Participant's repayment of the Agency Loan and payment of the Equity Share Amount as provided in this Agreement. C. Expiration of Equity Share Obligation. In the event the Participant does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or is not in material breach of any other provision of this Agreement before the Thirtieth anniversary of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share Amount to Agency upon any later sale, transfer or refinancing. 5. Occupangy Standards. The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property. 6. Income Information. Participant has submitted an eligibility verification form to the Agency prior to execution of this Agreement. Participant represents and warrants to the Agency that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the Agency is relying upon Participant's representations that Participant's income does not exceed 120% of the area median income and would not have entered this Agreement if Participant's income exceeded 120% of the area median income. 7. Loan Servicinp z. The Agency may contract with a private lender to originate and service the Agency Loan. 8. Participant Financing. Participant shall obtain financing for the purchase of the Property from the Southern California Home Financing Authority or a reputable institutional lender approved by the Agency (the "Lender"). The lien secured by the Agency Deed of Trust shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns. Loan Agreement Page 5 of 8 4ksNAgree:h1argolis:Loanagree 02/26/96 In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 9. Covenants. Participant and the Agency shall execute and have recorded in the Official Records of Orange County, California, a "Declaration of Conditions, Covenants and Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated herein, in which Participant agrees'that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health & Safety Code Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall runwith the land, in favor of the Agency and the City. 10. Non -Waiver. Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 11. Indemnification. The Participant shall defend, indemnify and hold harmless the Agency and the City of Huntington Beach and their respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the Agency or the City to make such payments, by virtue of the Agency Loan. 12. Defaults. Failure or delay by either party to perform any term or Provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who sc) fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required go protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 13. Documents. Participant is aware that the Agency has prepared certain documents to implement the Program and secure repayment of the Agency Loan. Participant has re%riewed and agrees to execute the following documents prior to recei-ving the Agency Loan: Loan Agreement Page 6 of 8 4\s\Agree: Margolis- Loanagree 02/26196 (a) Disclosure Statement; (b) Promissory Note; (c) Agency Deed of Trust; and (d) Declaration of Conditions, Covenants and Restrictions of Property. Participant agrees and acknowledges that the Agency Deed of Trust and the Declaration of Conditions, Covenants and Restrictions of Property shall be recorded with the County Recorder of the County of Orange and shall appear of record %&ith respect to and as encumbrances to the Property. 14. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the Agency shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Agency Loan. 15. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. 16. Amendment of Apreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participart and Agency. 17. Agency May Assign. Agency may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 18. Participant Assignment Prohibited. In no event shall Participant assign or transfer any portion of this Agreement,"ithout the prior express written consent of the Agency, which consent may be given orwithheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 19. Entire Agrggment. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous Loan Agreement Page 7 of 8 4\s\AgreeA1argolis:LoanagTee 02/26/96 agreements between the Agency and the Participant concerning all or any part of the subject matter of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. Date: March 8 19 96 Date: P 19. Date: P 19. Date: 5 , iqu ATTEST: Agency Clerk REVIENI('ED AND APPROVED: 4\s\Agree:Margolis:Loanagree 02/26/96 "PARTICIPANT " By: S Printed Name: By: Printed Name: By: Printed Name: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: Chairman APPROVED AS TO FOnl. CA -1 dl'ff� )V -A qAVncy Counsel 'I g' ir. eliIATED AND APPROVED: Loan Agreement Page 8 of 8 of Economic Development EXHIBITA 0::tGAL DESCRIPTIMD-E-PP-ROPERTY [To Be Inserted] EXHIBIT "A" PARCEL 1: An taidivided one twenty second (1/22) fee simple Intere;t an a tenant In commoil ill and to all of the Common Area defined ill Decl.nratioit referred to below niul described in the Condominium Plan ("Piano) for Lot I of Tract Mo. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-OS2533S of Official Records of Orange County, over Lot I of Tract Wo. 14B28, in the City of Huntington Beach, County of Orange, State of California, as per viap filed ill 13001: 106, Pages 27 to 29 of Miscellaneous Haps, in the office of the County Recorder of said County. PARCrL 2: Unit No. 20 consisting of certain airspace arid surface elements, as shown arid described ill the condominium Plan referred to in Parcel I above. PARCEL 3: Non-exclusive easements for access, ingress, egress, use, enjoyment. drainage, encroachment, support, maintenance, repairs and for other Vurposes, all as described Jtj that certain Declaration of Covenants, Conditions and Restrictions and Reservation GE EaBenients for Pacific Park Villas, recorded August 25, 1994 as Instrument 11o. 94-0525336 of official Records. PARCBL 4: Exclusive easements appurtenant to 11arcelu 1 and 2 referred to above, for balcally or patio purposes, over the areas defined, depicted and assigned oil the Plan. Exhibit A to "an Agreement W.%'Agrec:b.lartolis:ExhibitAlo2n6i'96 Page I of I 1 W4 111 .1 W43 PROMISSORYNOTE $ ____ 35,000.00 March 8th 19 96 Huntington Beach, California FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The Redevelopment Agency of the City of Huntington Beach ("Holder") at 2000 Main Street, P.O. Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct from time to time in writing, Thirty-five Thousand Dollars ($35,000.00) (the "Note Amount") together with interest thereon at the rate set forth herein. All sums hereunder shall be payable in lawful money of the United States of America and all sums shall be credited first to interest then due and the balance to principal. 1. Interest Rate Simple interest shall accrue on the Note Amount at a rate of five percent (5.00%) per annum. If the fair market value of the Property does not increase at least five percent (5.00%) per annum, the accrued interest on the Note Amount shall be forgiven by the Holder. 2. Maturity Date The balance of all unpaid principal and accrued interest shall be due and payable on March 8th P 20 26 (thirtieth (30th) anniversary date of this Promissory Note). 3. Acceleration The whole of the Note Amount plus accrued interest and all other payments due hereunder shall become due and be immediately payable to the Holder by the Maker upon the occurrence of any one of the following events: (a) Maker sells or otherwise transrers title to the Property; or (b) Maker refinances any lien or encumbrance to which the Agency Deed of Trust is subordinate for a loan amount which is in excess of the then current loan balance of such prior lien or extends the amortization period of the loan secured by such prior lien; or (c) Maker fails to occupy the Property or to perform any obligation under the Agreement (as hereinafter defined). "Exhibit B" to Loan Agreement Pagel of3 4sUgw: Matgolis: Exhibit IrOV27/94 RLS 96-127 4. Security for Note This Promissory Note shall be secured by a second decd of trust encumbering the Property (the "Agency Deed of Trust"), executed by Maker as Truster in favor of Holder as Trustee. 5. Prepayment of Note Amount Maker may prepay to Holder the full Note Amount, togetherwith simple interest thereon at a rate of five percent (5.00%) per annum, at any ti-ne prior to the due date of the Note Amount. 6. Loan P greement This Promissory Note is made and delivered pursuant to and in implementation of Loan Agreement entered by and between the Holder and the Maker dated March 8th, 19 96 (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference. The Maker acknowledges that but for the execution of this Promissory Note, the Holder would not enter into the Agreement or make the loan contemplated therein. Unless definitions of terms have been expressly set out at length herein, each term shall have the same definition ai set forth in the Agreement. 7. Holder May Assip Holder may, at its option, assign its right to receive payment under this Promissory Note without necessity of obtaining the consent of the Maker. 8. Maker Assignment Prohibited In no event shall Maker assign or transfer any portion of this Agreement without the prior "press written consent of the Holder, which consent may be given or withheld in the Holder's sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan proceeds hereunder. 9. Attomeys'Fees and -Cost In the event that any action is instituted to enforce payment under this Pron-tissory Note, the Maker promises to pay such sums as a court may fix for court costs and reasonable attorneys' fees. 10. Non -Waive Failure or delay in giving any notice required hereunder shall not constitute a waiver of any default or late payment, nor shall it change the time for any default or payment. "Exhibit B" to Loan Agreement Page 2 of 3 4-iApft- Margolis: Exhibit DJO2127M. RLS 96-127 11. Successors Bound This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. iFS FAIR "t BY: Printed Name: Peter Wr9olis BY: Printed Name: By: Printed Name-. "Exhibit B" to Loan Agreement Page 3 of 3 4sNAC=: Margolis: Exhibit UZZ27196 RLS 96-127 -1 R E C 0 P. -01? 4 R --; GUM- S -1 E- D 8 Y =14EWAL LAWI-ERS r. ILE CO. RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Redevelopment Agency of the City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Attn: Agency Clerk Recorded In the County Of orange, California Gary L. G �j ranvillO. Clerk/Recorder jj"1j],j''jj' No Fee lfitfi2214 MOM 03/9/96 COG 9005202 09 30 D11 A36 17 0 14.00 0.00 48.00 0-00 0-00 0-00 0.00 0.00 0.00 (SpKe Abmc Tim Lux For Reconia's Uw I This document.is exempt from recording fees pursuant to Government Code Section 6103 DEED OF TRUST NkqTH ASSIGNMENTS OF RENTS THIS DEED OF TRUST is made this 8th day of March 1926_, by and among PETER MARGOLIS, whose address is 18051 Joyful Lane, # 104, Huntington Beach, California (the "Trustor") and THE CITY OF HLTNTINGTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOP.ILYIENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "BENEFICIARY"), whose address is 2000 Main Stfeet, 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. TOGETIIFR 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, I IONVEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. THIS DM) OF TR= IS SE03ND AND SLIBOR]ANATE TO A FIRSr DEED OF T REMRDING CONCURRENTLY 19MOdMI. � 0 � s . .9 '#'A' #51' 1 .41 4. V V a 63 a ,fdiG:Agrcc:%13rgo1is EACD=M-7696 RLS 96-127 A. FOR THE PURPOSE OF SECURING: I . Payment of the sum of Thirty-five Thousand Dollars ($35,000.00) with interest thereon according to the terms of a Promissory Note of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof 2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes, or (b) as may be added to the indebtedness secured hereby in accordance with the provision of this Deed of Trust. 3. Performance of each and every obligation, covenant, promise or agreement of Trustor contained herein ii the Loan Agreement between Beneficiary and Trustor dated March 8th 19_26 ar as the terms and conditions of that agreement may apply to insof Trustor. 4. Payment, vAth 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 Arittcn 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 %ith 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 hereafler 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 Page 2 of 15 4eiGAgreellargolis ExhMeed,02,20196 RLS 96-127 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 fiirnished 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 sUl make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as, may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may famish 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 conceming 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 under-wTiter. 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 au&orized 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 Page 3 of 15 4:skG:Agrcc-.Margo1is EACDcc=26/96 RLS 96-127 or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition Satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special asscssments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, shou!d 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. iOLPL4 �qj- i �' Page 4 of 15 49-GAgreeNargolis EAC13ced02126/96 RLS 96-127 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 wMch 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, shou!d the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any part), thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection 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 rrake, 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 liabil ity of the B enefici ary 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 Page 5 of 15 ,fiZ:Ai;=AIari;oIix ExhMcedjOI76% RIS 96-127 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, 'Aithout warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re -assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Trust Deed, or cause Berieficiary to be (a) H mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Beneficiary confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents, issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver 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 colle—.tion including reasonable attorneys! fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured Mi J� it%Cm ii,KR� IXX� Page 6 of 15 4'ejoAgmAlargolis ExhMaJD176/96 RLS 96-127 hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys! fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time. in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "le'asehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, %-,ithout the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done wMch 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 Niolation. If the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and WOMbWbOWOUX== ,Ve-G:Agw:%(aW1is ExhCDxJJDZ'76P)6 Page 7 of 15 RIS 96-127 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, uithout 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 determilne, 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 orwarranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument inwriting, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby, Page 8 of 15 4WG:Agrce:%1argo1is ExhCDft&02,16196 RIS 96-127 whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on January 1, a written operational report. Such operational report shall contain a brief but complete statement of the year's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 20. That in the event of a demandfOT, 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 shA 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 Trustoes 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 casualtv 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 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. fix-yu* t-AcAut V Page 9 of 15 4'-j'0:Agma;,%1argo1is ExhCl)"&0176�96 RLS 96-121 Irle 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 REQUE STS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR: j 9 By: By: Peter MAgoiiT) 0 APPROVED AS TO FOW: Agency Counsel ,j WtChAgTecMargolis ExhMeed012616 RLS 96-127 Page 10 of 15 EXHIBIT A TO AGENCY DEED OF TRUST LEGAL DESCMITION [to be inserted] EX111BIT "A" PARCEL I - An undivided one twenty second 11/22) fee simple interest as a teriant lit cni'M11011 fit nnd to all of the Commost Area deEitied in Veclitratloii. referred to below niid described in the Condominium Plan ("Plan*) for Lot I of Tract No. 14828, which Plan was recorded on August 25, 2994 as Instrument No. 94-OS2S335 of Official Records of Orange County, over Lot I of Tract No. 14928, in tile City of Huntington Beach, County of Orange, State of California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous t1aps, in the office of the County Recorder of said County. PARCEL 2: Unit No. 20 consisting of certain airspace and surface elements, as showil, and described lit the condominium Plan referred to in Parcel I ab3ve. PARCEL 3- Non-exclusive easements for access, ingress, egress, use. enjoyment, drainage, encroachmento support, maintenance, repairs and for other purposes, all as described lit that certain Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336 of official Records. PARCEL 4: Excliisive easemealts appkirtellatit. to Parcels 1 alld 2 referred to above, for balcolly or V-1HO purposes, over the areas defined, depicted and assJgned oil the Plan. "Exhibit A" to Agency Deed of Trust Page I of I -1�t'G�Agrce:Ntargolis:ExhCDecJjo2/26/96 'ILS 96-127 CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CCNNTE BROCKWAY CITY CLERK DEED CERTIFICATION CALIFORNIA 92648 This is to certify that the interest in real property conveyed by the Deed dated March8,1996from Peter Margolis, to the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic, is hereby accepted by the undersigned officer or agent on behalf of the Agency pursuant to the authority conferred by Resolution No. 76 of the Agency and the grantee consents to the recordation thereof by its duty authorized officer. Dated: March 12, 1996 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH CONNIE BROCKWAY, CMC CLERK y:, Deputy Clerk t.-Vollowup�4CC&Cn ITelephone: 714-536-5227) RIDER TO DEED OF TRUST FIRST TIME HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM This Deed of Trust is sl',ecfto the terms ard conditions of that certain Loan Agreement dated March 8th 6 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand Dollars ($35,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Trustor shall pay to Beneficiary concurrent with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share 0 Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: Prior to fifth anniversary of the Agency Deed of Trust: fifty percent (50%) 2. After fiRh anniversary but) prior to sixth anniversary: forty-eight percent (48%) 3. After sixth anniversary but prior to sevcnth anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: forty-four percent (44%) 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) 8. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9. Afler twelflh anniversary but prior to thirteenth anniversary: thirty-four percent (341/4) Page I I of 15 ,VeG:ASre,:N1argo1is ExhCDcc&O1126i96 RLS 96-127 10. After thirteenth anniversary but prior to fourteen.th anniversary: thirty-two percent (32%) 11. After fourteenth anniversary but prior to fificenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16, After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twcnty-rirst anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. Aftcr twenty-second anniversary but prior to twenty-third anniversary: fourteen percent ( 14%) 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6/o) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary- four percent (4%) ' 0.4 �f 1# 4 4A 4.40.1 r- �__Mm 4xj:jG:Ag=:%largofis ExhMed0l'26'96 RLS 96-127 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (10/16) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, brokees commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars (S2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The percentage factor so determined is the "Applicable Factor." If the Property is sold, an amount equal to the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the amount received by Trustor as the Property sale price (as reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. If the Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is subordinate is refinanced for a loan amount which is in excess of the then current loan balance or extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the appraised value of the Page 13 of 15 ,V--s1G:AUceA1argoJis ExhCDcc&jO2/26,96 RLS 96-127 Property as of the time of such transfer or refinancing. Dated: March 8th, 1996 TRUSTOR 6etec Ma4olf) APPROVED AS TO FORM: f'r A ency ttorney Page 14 of 15 4's.GAgrecNargolis E-hCVWdj02n6,!)6 RLS 96-127 RIDER TO DEED OF TRUST SUPERIORITY OF FIRST LENDER DOCUMENTS (if required by the First Lender) This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated March 8th 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand dollars ($35,000.00) (the "Loan Amount"). AM terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender as security for the First Lcnder Note, or any subsequent First Lender deeds of trust hereafter recorded against the property described herein. - Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of one of the following events: 1) Title is acquired by the First Lender or another party upon foreclosure of a deed of trust by the First Lender. 2) Title is acquired by the First Lender or another party by a deed in lieu of foreclosure of the First Lender deed of trust. Dated: March 8th, 1996 TRUSTOR: APPROVED AS TO FORM: . P.-j- (Lox �"'Agency Attorney TJ-- ty" #A "� I -Z'i -LI I A I. 4IV-QAgrccAIargoIis ExhCDccdD2,2696 RLS 96-127 Peter Margofl)s iN' 7770 Page 15 of 15 ACKNOWLEDGMENT Stale of California Coun!y of OP-MCE I SS. orL- 03/08/96 before me, LINDA J. CAMPBELL (here Insert name) Notarl, Public, personally appeared PETER MARGOLIS personally known to me (or proved to r-ne of) the basis of satisfactory evidence) to be the person(s) whose name(s) Is/are subscribed to the villhIn Ins1rumeni and acknowledged to me all that he/she/lhey executed the same In his/her/thelt authorized capacily(les). and that by his/her/their sIgnature(s) on the Instrument the per- son(s), or the enlItY upon behalf of which lhe ppison(s) aclod, executed the Instrument. WITNESS my hand and official seal. LINDAICAMPBELL cc 103 COMMAV 1045344 ED NOTAFtYPUCLIC-CALIFORNIAX 0PAW-590UNTY My Corrm. E*4nn DEC. 20. 19" %V--kr -10, -Ir -V -V' AIIEN-ION NOTARY: A.11hough the Infoarwillon requested below Is OPTIONAL. 11 could prevent fraudulent ollactimenl of INS c&Ilr1caIe 10 another document. it-tis cmiil-ICATE MUST BE ATTACI IED TO It IE DOCUMRIT DESCIZIBEV AT PIGI IT: 11 Ito or Type of Doviment Nvmbet of rages- Date of Document Sgrker(s) Other lhcffi Named Above C 0-- 03 Continental Lawyers Title Company Subsidiary of Latti)ws idejusumuceCorporation T orricEs sw LOS ANGELES O1tANGE INLAND EmriniE SAN DIEGO SMTA R"BARA COUNTY COUNTY 1815 ausilless Cefi4er DF COUNTY COUNTY 80C E. Cokwado 13W. 10 15 N. K-1111 St. Sufte 200 4542RufftwrSt. 200 E. Catrilla St Pa -.,xkr m. CA 91101 Saiytt AFsa, CA 927 01 sm Befital(firm SmitNego.CA921111 Sorvtnl&-ifbarPtCA93I01 131R) 30-14700 (7141835-5575 CA 92400 1619l 2711-4 171 JnOSJ 965-7091 (SWI 676 2582 VENTURA COUNTY 751 Dalty Dr. "e 100. Gvniv fa� CA 930 10 1010) 8076631 Ino!;l qn4 z7oi 11-1100 (n'WL4'f94)0 9402220-A GOVERNMEN7r CODE 27361.7 I certify under penalty of perjury that the notary seal on the document to which this statement in attached reads as follows: Name of the Notary: Linda J. Campbell Date Commission Expires: December 20, 1998 County Where Bond is Filed: orange Commission No.: 1045344 Manufacture/Vendor No.: HBR I Place of Execution: Irvine, CA. Date: MARCH 13, 1996 o s ignature, : i ' .' j -. .. .7� .!.I ..' .15. L :e-.L I't L PLEASE COMPLETE THIS INFORMATION a . --I ..&. - - :. . : : . - .. . .0 RECOROING REOUESTED BY: .ontinental Lawyers Title Company A.41) WHEN RECORDEO MAIL TO: CrrY OF IRITMCM14 BEACH 2000 Main Street lkmtingtcn Beac16 CA. 92646 Attn.: Agaicy clerk "I'm Recorded in the County of Orange, California r Gary L. Granville. Clerk/Recorder N� Fee 1996012215 3:16pm 03/13/96 COS SCOS202 09 30 D02 11 7.00 30.00 0.eo 0.00 0.00 0.00 Continental Lawyers Title Company Irm Subsidiary of lawyersTidelnsurdnce CoiPoration %.,o - ft THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION (Addilloull TOW0152 fts SP06s) " 1?192 DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: F=MDFMUC AMCY OF 711E CrrY OF larnlni= DEMI 2000 Main Street I kintington Beack CA. 92648 Attn.: Agency Clerk This docmient is exmpt frcm recording fees pursuant to Govt. Code Sec. 6103. (Space above for Recorder's use.) THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (the "Declaration") is made by and between PETER MARGOLIS (the "Covenantor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency" or "Covenantee") as of the date set forth below. RECITALS A. Covenantor and the Agency have entered into a certain Loan Agreement dated March 8th -.> 19_96__, (the "Agreement," a copy of which is on file with the Agency at its offices and is a public record) pursuant to which the Coveriantor has agreed to subject certain real property (referred to in the Agreement and referred to herein as the "Property") described in the "Legal Description of the Property" (which is attached hereto as Exhibit "A" and incorporated herein by this reference) to certain covenants, conditions and restrictions. B. The Community Redevelopment Law (California Health and Safety Code § 33000 et seq.) provides that a redevelopment agency shall establish covenants running with the land in furtherance of redevelopment plans. NOW, THEREFORE, the parties hereto agree and covenant as follows: 0 -ri -11 T-0 -4-7-4-4-7 --r '-,�.-77707UT4 Page I of 9 1 4 s%Ag=:kfargolis:ExhibitUJD2,27)96 RLS 96-127 I . AfTordability Covenants. Covenantor agrees for itself, and its successors and assigns, and every successor to Covenantor's interest in the Property, or any part thereof that for thirty (30) years from the date of recording of the Deed of Trust in favor of the Agency regarding the Property (the "Expiration Date"): (a) The Property shall only be owned and occupied by Convenantor or by other persons or fanfilies of "Moderate Income." "Nioderate Income" shall mean persons or families earning One Hundred Twenty Percent (120%) or less of Orange County median income, adjusted for appropriate family size. (b) The Property shall be kept available at Affordable Housing Cost (as defined below) to the Covenantor or other persons or families of moderate income. Affordable Housing Cost shall mean, as to each person or family of low or moderate income, that purchase price which would result in monthly housing payments which do not exceed an amount under any currently prevailing conventional home mortgage lending rates applied by any reputable institutional home mortgage lender, or the lending rates of any government -subsidized or special mortgage program for which such person or family qualifies and has obtained a first trust deed loan, which do not exceed thirty-five percent (35%) of One Hundred Ten Percent (1101/0) of the Orange County monthly median income for those petsons and families of moderate income (as determined by the United States Department of Housing and Urban Development) earning between Eighty Percent (8 01/6) and One Hundred Ten Percent (I 101/8) of the Orange County monthly median income, and Thirty -Five Percent (35%) of the monthly median income of any person or family of moderate income which eams more than One Hundred Ten Percent (I 10%) and not more than One I lundred Twenty Percent (120%) of the Orange County median income. (c) The covenant contained in this Section 1 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 2. Transfer of Property. No transfer of the Property shall occur until the Agency determines (a) that the proposed purchaser intends to occupy the Property as the proposed purchaser's principal residence, (b) that the proposed purchaser is a person or family of moderate income and (c) that the proposed transfer occurs at an Affordable Housing Cost. The Agency shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted to the Agency such information and completed such forms as the Agency shall request to certify the proposed purchaser's intent with respect to its rcsidency of the Property and its gross income, and the proposed purchaser has submitted an affidaNit disclosing and certifying the amount of the proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall submit to the Agency an executed disclosure statement which certifies that the purchaser is aware that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate income person or family, that the maximum permitted sales price may be less than fair market value and that the unit must be owner -occupied at all times and cannot be rented or leased. Coveriantor shall cooperat.- with the Agency in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the Agency in connection with the Covenantoes original sale of the Affordable Unit, pro-vided that "Exhibit W to Loan Agreement Page 2 of 9 4,d�Agce:Nfargolis:Exhibilt)ID2,-27/96 RLS 96-117 the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR'UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSMIG COST CAN BE MADE ONLY AT THE TWE OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. CO'v`ENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE AGENCYAND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST. <*'170 ' Co�enantor In-i-t—ials The covenant contained in this Section 2 shall Tun with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 3. Non -Discrimination Covenants. Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property. Covenantor and its successors and assigns, shall refrain from restricting the rental or lease (if permitted by Covenan'tor) or sale of the property on the basis of race, color, religion, sex, marital status, national origin or ancestry of an), person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or non segregation clauses: (a) In deeds-. "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, "Exhibit D" to Loan Agreement Page 3 of 9 4,i,Agm:%Iargolis:ExhibitUiOI127,'96 RLS 96-127 not shall the grantee himself or herself Or any person claiming under or through Vim or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees in the land herein conveyed. The foregoing convenants shall run with the land." (b) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees; in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendecs of the premises." Nothing in this Section 3 shall be construed to authorize the rental or lease of the Property if such rental or lease is not otherwise permitted. The converiants in this paragraph 3 shall run with the land in perpetuity. 4. Covenants Do Not Impair Lien. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 5. Covenants For Benefit of City and Ap,�M. All covenants without regard to technical classification or designation shall be binding for the benefit of the Coveriantee and the City of Huntington Beach (the "City") and such covenants shall run in favor of the Covenantee and the City for the entire period during which such covenants shall be in force and effect, Aithout regard to whether the Covenantee or the City is or remains an owner of any land or interest therein to which such covenants relate. The Covcnantee and the City, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such "Exhibit D" to Loan Agreement Page 4 of 9 - 41.eAgcc:Ntargolis:ExhibiigOZ'27,1)6 RIS 96-127 breach to which it or any other beneficiaries of thcsc covenants may be entitled during the term specified for such covenants, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. IN WITNESS %WIEREOF, the Covenantee znd Covenantor have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized, this 8th day of March Y 1996 . COVENANTOR APPROVED AS TO FORM: A A, gency Counsel At Zis, "Exhibit D" to Loan Agreement Page 5 of 9 �VAAg=-.hIarZoIis:Exhib4D OZ27,96 RLS 96-127 STATE OF CALIFORNIA ss COUNTY OF Orange!? on March 8th, 1996 . before me, Linda J. Campbell (name, title, c.g., "Jane Doe, Notary Public"), personally appeared Peter MaEgolis (namc(s) of signer(s)), — personally knoN%m to be — OR — ?RL_ proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/arc subscribed to the within instrument and acknowledged to me that hc1shelthey executed the sarre in his/her/thcir authorized capacity(ics), and that by his/ber/their signaturc(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witpcjs my _b!S�knk�Likal seal. LINDAICAMELL X COM.M. V 1045,3" co t. NOTA.1Y PUMC - CAUFOPNIA :0 OPIAW-131- CoUrm — -91 DEC 1.1y Com.m. E .20.19M CAPACITY -CLAIMED BY-STGNER: XX Individual — Corporate Officer(s): (SirAaturc of Notary) Linda J. campbell Title(s) Partncr(s): Limited General Attomey-in-Fact Trustec(s) Guardiam'Conservator Other SIGNER IS REPRESENTING: Name of Pcrson(s) or Entity(ics) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or T)pc of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signer(s) Othcr Than Named Above: "Exhibit W to Loan Agreement Page 6 of 9 *e.t%gw:Nfargolis:ExhibillYD2,127,'96 RLS 96-127 9402220-A GOVERNMENT CODE 27361.7 I certify under penalty of perjury that the notary seal on the document to which this statement is attached reads as follows: -Name of the Notary: Linda J. Campbell Date Commission Expires: December 20, 1998 County Where Bond is Filed: Orange Commission No.: 1045344 Manufacture/Vendor No.: HBR 1 Place of Execution: Irvine, CA. Date: MARCH 13, 1996 signature STATE OF CALIFORNIA ss COUNTYOF On , before me, (name, title, c.g., "Janc Doe, Notary Public"), personally appeared (name(s) of signer(s)), personally known to be — OR — proved to me on the basis of satisfactory evidence to be the person(s) whose namc(s) is/are subscribed to the i%ithin instrument and acknowledged to me that helshchhey executed the smrc in hiacrItheir authorized capacity(ics), and that by hislhcT/thcir signntUTC(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) CAPACITY CLAIMED BY SIGNER: Individual Corporate Officcr(s): Titic(s) Partner(s): Limited General Attorricy-in-Fact Trustcc(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Pcrson(s) or Entity(ics) ATTENTION NOTARY: Although the information requested belaw is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTTIER DOCLINIENT. THIS CERTIFICATE MUST BE ATTAC14ED TO THE DOCUMENT DESCRIBED AT RIGHT: 4's�Agcc:Nfagolis:ExhibitD.D2/27196 RIS 96-127 Title or Type of Docurnmt Number of Pages Date of Document Signer(s) Other Than Named Above-. "Exhibit D" to Loan Agreement Page 7 of 9 STATE OF CALIFORNIA COUNTY OF ss Oil before me, name, title, e.g., "Janc Doe, Notary Public"), personally appeared , (namc(s) of signer(s)), personally knoANm to be — OR — proved to me on the basis of satisfactory evidence to be the person(s) whose na-mc(s) is/arc subscribed to the %%ithin instrument and acknowledged to me diat hc/she/thcy executed the same in his/her/thcir authorized capaciq.-(ics), and that by his/hcrhhcir signatuTe(s) on the instrument the person(s), or the critity upon behalf of which the person(s) acted, executed the instrument. Witness my hand anJ official sea]. (Signature of Notary) CAPAC11-Y CLAIMED By SIGNER: Individual Corporate Officer(s).- Title(s) Partncr(s): Limited General Attomcy-in-Fact Trustcc(s) Guardian/Conscr%2tor Other SIGNER IS REPRESENTING: Name of Pcrson(s) or Entity(ics) ATTENTION NOTARY: Although the information rcquestcd below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF MS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document NIUST-BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT- Signer(s) Other Than Named Above: "ExIiibit D" to Loan Agreement Page 8 org 4%sLAgrccA% farplis: Exhibit WZ177,96 RLS 96-127 EXHIBITA LEGAL usqrnm OF PROPERTY [To Be Inserted] U111BIT "A" PARCEL I i An undivided one twenty aecond (1/22) fee alinp-le Interest an a tellallt 331 C01MI1013 in and to all of the Common Area defined In Declaration referred to below aitd described In the Condomillium Plan (oplan") for Lot I of Tract no. 14928, whic1l Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of Official Pecords of Orange County, over Lot I of Tract: no. 14029, In the city of 11untington Beach, County of Orange, State of Califoruia, as per map filed in Dock 706, Pages 27 to 29 of Miscellaneous Maps, In the office of tile Courity Pecorder of said County. PARCEL 2- Unit No. 20 consisting of certain airspace ani surface elements, as 811OW21 aild deneribed Iii the Condominium Plan referred to in Parcel 1 above. PXICEL 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, waintellance, repaire and for other purposes, all as deacribed let that certain Declaration of Covenants, Conditions atid Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument 110. 94-OS25336 of official Records. PARCEL 4 : Ex-clusive eaveineuts appurtenant to t,.-%:tcelfj I and 7 referred to above, for balcniiy or pakAu purposes, over the arena defined, clepicted and assigned oil the Plaii. "Exhibit D" to Loan Agreement 4',s\Agroc:?.Iargolis:ExhibitD',02,77196 page 9 OF9 RLS 96-127 EXHIBIT E DISCLOSURE STATEMENT I\%Ve PETER MARGOLIS -- ("Applicant") understands and agrees that the provision of financial assistance from The Redevelopment Agency of the City of Huntington Beach ("Agency") is conditional on a number of factors, including, but not limited to: 0 IAVe must qualify for a home loan from an institutional lender acceptable to the Agency. & I/We must pay at least 3 % of the home purchase price from our own funds. * I/We must qualify for assistance under the guidelines of the Agency's Program. I/We as owners of the unit must occupy it for the entire term of the loan. If Iffile rent the unit to others, IANFe will be in default of the Loan Agreement. IAVe further understand and agree that: I/We will be responsible for repaying the loan with five percent (5%) simple interest per year at the time Vive sell, transfer, refinance, or no longer occupy my/our home, or breach any part of the Loan Agreement. The Annual Percentage Rate for this loan is five percent (5%). The simple interest shall accrue each year, but is not required to be paid except as described in the Loan Agreement. If within thirty (30) years from the date I/we receive the Agency financial assistance, I/we sell or transfer the home I/we purchased under this Program to persons who are not persons of low or moderate income or Tefinzrce the lien of the deed of trust held by my/our lender, I/weMll be obligated to pay the Agency a percentage share of the difference between the price I/we paid for the home and its value at the time of such sale, transfer or refinancing. The Agency Loan is due upon sale, transfer or refinancing of the unit. IAVe have a right to canccl or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to The Redevelopment Agency of the City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, California 92648 "Exhibit E" to Loan Agreement Page] of2 *-Mgrec:Marr,o1i3:Exhibitr \02127196 RLS 96-127 The Agencywill not require me/us to make payments of principal or interest during the term of the loan. The full balance of principal and interest will be due and payable when the term of the loan expires. There are no loan closing costs, prepayment penalties or charges, points, fees, finance charges, service charges, investigation fees, credit report fees, insurance premiums, notary or escrow fees, late payment charges or other fees payable pursuant to this loan. An appraisal fee may be payable upon the refinancing of my/our house. The Agency shall not be held responsible for any costs associated with the home Vwe purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. The Agency cannot ensure that information provided by or on behalf of Applicant will be kept confidential. 0 The Agency shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/we assume aH responsibility for determining whether Mve d esire to be consid ered for the Program, and I/we will info rm, mysel f/oursclves as to the availability and terms of other public or private loans. The Agency shall not be charged with knowledge of the contents of the documents of the primary lender. The Agency financial assistance 1/,.%,e receive under this Program may be considered to be income for purposes of federal or state income taxes and the Agency shall not be held responsible for the payment of any taxes which I/we may incur by virtue of the receipt of such financial assistance. Dated: March 8 19 96 Sig6ture of �pOici6t "Exhibit E" to Loan Agreement Page2 of2 4Is\Agw:%IarSoIi9:ExhibitE MIT% RLS 96-127 EXIIIBITF NOTICE OF RIGHT OF RESCISSION Participant(s): PETER MARGOLIS Loan Amount: $35,000.00 Address of Residence: 1805 1 Joyful Lane, #104, unti ngion Beach. Cali rornia Notice to Participant Required by Federal Law: You have entered into a transaction on - March 8, 1996 Date] which may result in a lien, mortgage, or other security interest on your home. You have a legal right under federal law to cancel this transaction, if you desire to do so, without any penalty or obligation within three business days from the above date or any later date on which all material disclosures required under the Truth in Lending Act have been given to you. If you so cancel the transaction, any lien, mortgage, or other security interest on your home arising for this transaction is automatically void. You are also entitled to receive a refund of any do-wn payment or other consideration if you cancel. If you decide to cancel this transaction, you may do so by notifying: The Redevelopment Agency of the City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, California 92648 by mail or telegram sent not later than midnight of (Date) You may also use any other form of written notice identifying the transaction if it is delivered to the above address not later than that time. This notice may be used for that purpose by dating and signing below. (Date) 7 I hereby cancel this transaction. (Participant's Signature) EFFECT OF RESCISSION. When a participant exercises his right to rescind under paragraph (a) of this section, he is not liable for any finance or other charge, and any security interest becomes void upon such a rescission. Within 10 days after receipt of a notice of rescission, the creditor shall return to the participant any money or property given as earnest money, down "Exhibit F" to Loan Agreement Pagel of2 4VAgrec:%f argolis: ExhibitSX02/27,96 RES 96-127 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 its reasonable value. Tender shall be made at the location of the property or at the residence of the customer, at the option of the customer. If the creditor does not take possession of the property within 10 days afler tender by the customer, ownership of the property vests in the customer without obligation on his part to pay for it. ACKNOWLE MGMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acknowledges receipt of two completed copies of this Notice. ('I�, �- P1 PAticipant;s. S"gria 1 _�re Date Participant's Signature Date Participant's Signature Date Participant's Signature Date "Exhibit F" to Loan Agreement Page 2 of 2 4.s%Ag=:Nlargolis:Exhibit�'.XO127196 R LS 96-127 EXHIBIT G EXPIRATION OF RESCISSION PERIODS (Truth in Lending - Real Estate and Home Improvement Loans) Participant(s): PETE R MARGOLIS Loan Amount: $35, 0 Address of Residence: 18051 Joyful Lane, # 104, Huntington Beach, California In connection with the agreement of The Redevelopment Agency of the City of Huntington Beach to make the Loan, which will be secured by a deed of trust on the residence at the above address, each of the undersigned hereby represents as follows- 1. The undersigned understands the terms of this Expiration of Rescission Periods Agreement and its attachments. 2. The Redevelopment Agency of the City of Huntington Beach has agreed, subject only to the occurrence of certain conditions, to make the Loan and has delivered to each undersigned a Disclosure Statement setting forth the terms of the 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 Lending Act on or before the date the undersigned has executed this document. 3. Prior to the date shown above, no proceeds of the Loan have been disbursed to or for the benefit of any of the undersigned. 4. None of the undersigned have canceled or rescinded the Loan nor have any of the undersigned notified The Redevelopment Agency of the City of Huntington Beach of any intention to cancel or rescind the Loan. The undersigned request the Redevelopment Agency of the City of Huntington Beach to proceed with the Loan in reliance upon the foregoing representations. Participant's- Sign#4e Date "Exhibit G" to Loan Agreement Page I of I ,feAV=: MargolisIxtibilMOV27196 RLS 96-127 EXHIBIT 11 CERTIFICATE OF PROPOSED TRANSFEREE THIS FORM MUST BE DELIVERED TO THE DEVELOPER BEFORE PROCEEDING 11qTH ANY TRANSFER OF THE PROPERTY. March Sth .19 96 I . The Proposed Transferee is Names: Peter MaE2olis Current Address: 18051 Joyful Lane #104 —Huntington Beach, California 92W Telephone Number: 818-769-2010 2. The address of the property which the proposed transferee desires to purchase is 18051 Joyful Lane, # 104, Huntington Beach, California (the "Property"), which was built in the Talbert Beach Redevelopment Project Area. 3. The Proposed transferee represents, warrants and covenants the following: (a) The Property will be the principal residence of the proposed transferee. (b) The combined maximum annual income in the current year for all household members of the proposed transferee is S 3,475 .00 (This figure must reflect income from all sources.) (c) The proposed transferee will deliver to the Redevelopment Agency of the City of Huntington Beach a signed financial statement on a form acceptable to the Agency. 4. The proposed transferee's household consists of the following persons who will reside in the Property: Adults (18 or over) - [name of each]: Peter Margolis "Exhibit H" to Loan Agreement Page I of 6 WsVigrec: Margolis: Exhibit] U0127,96 RLS 96-127 Minors (under IS) - [name of each]: 5. The proposed transferee must submit to the Developer, on a form available from the Developer, an income certification so the Developer may determine if the proposed transferee is an Eligible Person or Family. 6. A true and correct copy of the proposed transferee's most recent tax return to the U.S. Internal Revenue Service is attached hereto. 7. The terms of the proposed transfer are: (a) Sales price of S 204,900.00 . This sales price is based on the less of XX W Fair market value; or ii) The maximum price at which the Purchase Housing Cost of the Proposed Transferee would not exceed Affordable Housing Cost. The calculation of the Sales Price under this subsection (ii) is illustrated in Attachment No. 10 to the Disposition and Development Agreement. IN ORDER TO ANSWER QUESTION 2(a) YOU MUST CALCULATE THE PROPOSED SALES PRICE BASED ON AFFORDABLE HOUSING COST, TAKING INTO CONSIDERATION ALL ITEMS LISTED IN THE DEF MITION OF PURCHASE HOUSING COST. (b) Price of any personal property being sold by the owner to the proposed transferee: $ -0- (if none, so state) (c) The price of $ —0— to be paid by the proposed transferee for any services of Owner. (Ifnone, so state.) (d) All other amounts of money or other consideration, if any, concerning the Property or any other matter to be paid by the proposed transferee to the Owner: $ —0— _. (If none, so state.) "Exhibit H" to Loan Agreement Page 2 of 6 4 s\Agrcc:Kfargolis:ExhibitirJD2/27)96 RLS 96-127 (e) Sources of payment of sales price: Sales price Cash down payment S 29,9W.00 I st loan s 140,000.00 2ndloan $ 35,000.00 Other (describe) $ $ 204,900.00 Total The financing obtained by the proposed transferee to purchase the Property is as follows: I st Loan. - Loan amount: S 140,000.00 Monthly payments: 896.44 Interest rate 6.625 % if variable interest, describe adjustment mechanism: FIXED Due date: APRIL 19 2003 Balloon payment amount: $127,740.00 Points and fees: $ 2,935.00 Lender: SUNBELT NATIONAL MORTGAGE Lender's address: 4440 VON KARMA-14 #100 NEW?ORT BEACHI CALIFORNIA 92660 4 s\Agree:%1&rgo1is:Exhibit1 t 02127196 RIS 96-127 "Exhibit H" to Loan Agreement Page 3 of 6 4 2nd Loan - Loan amount: Monthly payments: a- 1� r- ~%^ A^ $ -0- Interest rate 5.00% ACCRUING if variable interest, describe adjustment mechanism: Due date: UPCN SALE Balloon payment amount: PRINCIPAL & ACCRUED INTEREST Points and fees: —0— Lender: CITY OF HUNTINGTICN BEACH Lender's address: 2000 MAIII STREET MUM= BEACH, CALIFMNIA 92648 Other Loans: (describe, if none, so state) NCNE (g) The monthly Purchase Housing Cost to be paid by the proposed transferee: I st loan monthly payment: $896.44 2nd loan monthly payment: $— —0— Other loans monthly payment: 5 Taxes and assessments (I /12 of yearly taxes and assessments): $ 185,47 Insurance (1/12 of yearly $ premium) Homeowner's dues: $ 145-12 Total: $ 1,227-03 "Exhibit H" to Loan Agreement Page 4 of 6 41AAgmelklarplivExhibia r0127M RIS 96-127 S. A true and correct copy of the purchase and sale or other agreement between the owner and the proposed transferee is attached hereto. I declare under penalty of pe�ury under the taws of the State of California that the foregoing is true and correct. PROPOSED TRANSFEREE: March 8, 1996 Date PETER MARGOLIS Print name Street Address Signature Print name Telephone 18051 JOYFUL LANE, 1104, HUNTINGTON BEACH, CALIFORNIA 92W 818-769-20 0 City State Zip Code "Exhibit H" to Loan Agreement Page 5 of 6 4�4\AgrechlargofirExhibiti rOZ177,'96 RLS 96-127 DevelopeT's Certification Based on the Proposed Transferee!s Certificate, above, and all documents attached hereto, Developer hereby certifies that: (1) Proposed Transferee is an Eligible Person or Family; and (2) The monthly Purchase Housing Cost to be paid by the Proposed Transferee shall not exceed the monthly Affordable Housing Cost. [Capitalized terms used above are defined in the Disposition and Development Agreement towhich this certificate is attached.] t5A55ciiWAN CAPI 'SMV-10S MjqC. DEVELOPER-- "\ Tl�' A Its: '5SC4LOIATZJ� Date: "Exhibit H" to Loan Agreement Page 6 of 6 4j!ASw:h1argo1is:EXhibM r 01'77/96 RIS 96-127 !LN# 4173191 BALLOON Now (FIXED RATE) THIS LOAN IS PAYABLE IN FULL AT MATURITY. YOU MUST REPAY THE ENTIRE PRINCIPAL BALANCE OFTHE LOAN AND UNPAID INTERESTTHEN DUE. THE LENDER IS UNDER No OBLIGA- TioNTO REFINANCE THE LOAN ATTHAT TIME. YOU WILL,THEREFORE, BE REQUIRED To MAKE PAYMENT OUT OF OTHER ASSETS THAT YOU MAY OWN, OR YOU WILL HAVETO FIND A LENDER, WHICH MAY BE THE LENDER YOU HAVE THIS LOAN WITH, WILLING TO LEND YOU THE MONEY. IF YOU REFINANCE THIS LOAN AT MATURITY, YOU MAY HAVE TO PAY SOME OR ALL OF THE CLOSINGCOSTS NORMALLY ASSOCIATED WITH A NEW LOAN EVEN IFYOU OBTAIN REFINANCING FROM T�E SAME LENDER. March 5, 1996 SANTA ANA, CALIFORNIA [CITY] ESTATE] 18051 JOYFUL LANE #104, HUNTINGTON BEACH, CA 92648 [PROPERTY ADDRESS] 1. BORROWFR'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. 140,000.00 I this amount is called "principal"), plus interest, to the order of the Lender. Ile Lender is MICHAEL L.CUMHINS DRA EMERALD PACIFIC FINANCIAL, A SOLE PROPRIETORSHIP I understand that the Lender may transfer this Note. 'Me Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder." 2. INTEREST Interest will he charged on unpaid prini of 6.625 %. The interest rate required by Section 2 i Note. 3. PAYMENTS t of principal has been paid. I will pay interestat a yearly rate before and after any default described in Section 6(B) of this (A) Time and Place (if Payments I will pay principaland interest by making payments every month. I will make my monthly payments on the 1ST day of each month beginning on May 1, 1996 1 will make these payments every month until I have paid all of the principal and interest indany other charges described below that I inay owe under this Note. My monthly payments will be applied to interest before principal. If. on Apri 1 1 , 2 0 0 3 1 still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "maturity date." I will makemy monthlypaymentsat 1801 PARXCOURT PLACE, #F200 SANTA ANA, CA 92701 or it a different place if required by the Note Holder. (B) Amount of Monthly Payments My monthly payment will be in theamount of U.S. $ 896.44 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of principal at any time before they are due. A payment of principal only is known as a ..prepayment." When I make a prephtyment. I will tell the Note Holder in writing that I am doing so. I may make a full prepayment or p.mial prepayments without payingany prepayment charge. The Note Holder will use all of my prepayments to reduce theamount of principal that I owe under this Note. If I make a partial prepayment. there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. S. LOAN CHARGES Ifa law. W�ichapplies to this loanand which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or it) he collected in connection with this loan exceed the permitted limits, then: (i) any such loan charge shall be reduced by theamount necessary to reduce the charge to the permitted limit, and (ii)any surnalready collected from me which exceeded permitted limits will he refunded to me. The Note Holder may choose to make this refund be reducing the principal I owe under this Note or by making a direct payment to me. If a refund reduces principal. the reduction will be treated as a partial prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charges for Overdue Payments If the Note Holder has not received the full amount ofany monthly payments by the end of FIFTEEN calendar(lays after the date it is due, I will pay a late charge to the Note Holder. Thearnount of the charge will be FIVE % of my overdue payment of principal and interest. I will pay this'lale charge promptly but only once on each late payment. III) Default If I do not pay the full amount of each monthly payment on the (Late it is due, I will be in default. (C) Notice of Derault If Nun in default. the Note Holder may send me a written notice telling me that if I do not pay the overdueamount by a certain date. the Note Holder may require me to pay immediately the full amount of principal which has not been paidand all the interest that I owe on that amount. That date must he at least 30 days after the date on which the notice is delivered or mailed to me. Borrowees Initials Y 0 - Page I o1`2 MULTISTATE BALLOON FIXED RATE NOTE - Single Family - FNMA UNIFORM INSTRUMENT FORM 3260 3/87 ,0 (D) No Waiver By Note Holder Even if, at a time when I am in default. the Note Holder does not require me to pay inunediately in full as described above, the Note Holder will still have the right to do so if I sun in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of im costs and expenses in enforcing this Note to the extent not prohibited be applicable law. Those expenses include, for example. reasonable attorney's fees. 7. GIVING OF NOTICES Unless applicable law requires a different method. any notice that must be given to me under this Note will he given by delivering it or by mailing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must he given to the Note Holderunderthis Note will be given by mailing it by firstclass mail to the Note Holder -it the address stated in Section 3 (A) above orat a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER THIS NOTE If zre than one person signs this Note. e=h person is fullyand personally obligated to keep all of the promises. made in this Note. including the promises to pay the fullamount owed. Any pe m.n who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of the Note, is also obligated to keep all of the promises made in this Note. 'Me Note Holder may enforce its rights under this Noteagainst each person individually or againstall of us together. 7bis means that any one of us may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and ,my other person who has obligations under this Note waive the rights of presentment and notice of dishonor. "Presentment" means the rights to require the Note Holder to demand payment of amounts due. "Notice of dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holderunderthis Notc,a Mortgage Deed of Trustor Security Deed (the "Security Instrumenf), dated the samedateaq this Note.protects the Note Holder f1rom possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under the Note. Some of those conditions are described as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property orsiny interest in it is %old or transferred (or is a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent. Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However. this option shall not be excrci%.-d by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option. Lendcrshall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice isdelivered ormailed within which Borrower mustpay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. PZTZR MARGOLIS) Page 2 of 2 MULTISTATE BALLOON FIXED RATE NOTE - Single Family - P74MA UNIFORM INSTRUMENT FORM 3260 3/87 GA LK#'4'17il9l BALLOON NOTE ADDENDUM (CONDITIONAL RIGHT TO REFINANCE) I THIS BALLOON NOTE ADDENDUM is made this STH dayof March , 1996 and is incorporated into and shall be deemed to amcnd and supplement the Balloon Note made by the undersigned (the "Borrower) in favor of MICHAEL L.CMMINS DBA EMERALD PACIFIC FINANCIAL, A SOLE PROPRIETORSHIP (the "Lender') and datedws of even date herewith (the "Note'). 71ke interest rate stated on the Note is called the "Note Rate." Ile date of -the Note is called the "Note Date." I (the Borrower) understand the Lender may transfer the Note, the related Mortgage, Deed of Trust or Deed to Secure Debt (the "Security Instrument').ind this Addendum. The Lenderoranyone who takes the Note. Security Instrumentand this Addendum by transfer and who is entitled to receive payments under the Note is called the "Note Holder." Additional Covenants. In addition to the covenantsand agreements in the Security Instrument, Borrower and Lender further covenant and agree as follows (despite anything to the contrary contained in the Security Instrument or the Note.): 1. CONDITIONAL RIGHT TO REFINANCE At the maturity date of the Noteand Security Instrument (the"Maturity Date). I will beable toobtain anew loan ("New Loan") witha new Maturity Date of April 1, 2026 and with an interest rate equal to the "New Note Rate" deter- mined inaccordance with Section 3 below ifall the conditions provided in Sections 2 and 5 below aremet (the"Conditional Refinancing Option'). If those conditions are not met, I understand that the Note Holder is under no obligation to refinance or modify the Note, or to extend the Maturity Date, and that I will have to repay the Note from my own resources or find a lender willing to lend me the money to repay the Note. 2. CONDITIONS TO OffION If I want to exemise die Conditional Refinancing Option at maturity. certain conditions must be metws of the Maturity Date. These conditionsare: (1) 1 must still be the ownerand occupant of the property subject to the Security Instrument (the "Property"); (2) 1 must be current in my monthly payments and cannot have been more than 30 days late on any of the 12 scheduled monthly payments immediately preceding the Maturity Date, (3) no lien against the Property (except for taxes and special assessments not yet due and payable) other than that of the Security Instrument may exist-. (4) the New Note Rate cannot be more than 5 percentage pointsabove the Note Rate; and (5) 1 must make a written request to the Note Holder as provided in Section 5 below. 3. CALCULATING THE NEW NOTE RATE Ile New Note Rate will he a fixed rate of interest equal to the Federal National Mortgage Association's required net yield for 30-year fixed rate mortgages subject to a60-day mandatory delivery commitment, plus one-half of one percentage point (0.5 %). rounded to the nearest one-cighth of one percentage point (0.125%) (the "New Note Rate). Ile required net yield shall be the applicable net yield in effect on the date and time of day that the Note Holder receives notice of my election to exercise the Conditional Refinancing Option. If this required net yield is not available, the Note Holder will determine the New Note Rate by using comparable information. 4. CALCULATING THE NEW PAYMENT AMOUNT Provided the New Note Rateas calculated in Section 3 above is not greater than 5 percentage points above the Note Rate and all other conditions required in Section 2 aboveare satisfied, the Note Holder will determine the amount of the monthly payment that will he sufficient to repay in full (a) the unpaid principal, plus (b) accrued but unpaid interest, plus (c) all other sums I will owe under the- Note and Security Instrument on the Maturity Date (assuming my monthly payments then are current. as required under Section 2 above), over the term of the New Note at the New Note Rate in equal monthly payments. 'Me resultof this calculation will be the amount of my new principal and interest payment every month until the New Note is fully paid. S. EXERCISINGTHE CONDITIONAL REFINANCING OPTION The Note Holder will notify meat least 60 calendar days in advance of theMaturity D.Veandadvisemeof the principal.accrued butunpaid interest,andall other sums I am expected to owe on the Maturity Date. Ile Note Holder also will advise me that I may exercise the Conditional Refinancing Option if the conditions in Section 2 above are met. The Note Holder will provide my payment record information, together with the name. titleandaddress of the person representing the Note Holder that I must notify in order to exercise the Conditional Refinancing Option. If I meet the conditions of Section 2 above, I may exercise the Conditional Refinancing Option by notifying the Note Holder no later than 45 calendar days prior to the Maturity Date. The Note Holder will calculate the fixed New Note Rate based upon the Federal National Mortgage Association's applicable published required net yield in effect on the dateand time of day notification is received by the Note Holder and as calculated in Section 3 above. I will then have 30calendardays to provide the Note Holder withacceptable proof of my required ownership, occupancy and property lien status. Before the Maturity Date the Note Holder will advise me of the new interest rate (the New Note Rate), new monthly payment amount and a date, time and placcat which I must appear to sign any documents required tocomplete therequired refinancing. I understand the Note Holder will charge me a$2500) processing fee and the costs associated with updating the title insurance policy. if any. and any reasonable third -party cost-.. such as documentary stamps. intangible tax, survey. recording fees, etc. By Signing Below, Borrower accepts and agrees to the terms and covenants contained in this Balloon Note Addendum. PETER MARQO�V MULTISTATE BAIJA)ON NOTE ADDENDUM - Single Family - Fannie Mae Uniform Instrument Form 3266 1 V89 Amended 3/92 (page I of I page) WHEN RECORDED UAIL TO: PACIFIC FINXVCIAL 4440 VON FLAILMAN #100 NrdWRT BEACH, CA 926CO WIN 4173191 I SPACE AROVE 7111S LINE FOR RECORDEWS USE DEED OF TRUST THIS DEED OF TRUST ("Security Instruinento) is made on March 5, 1996. The trustor is PETER MARGOLIS, A SINGLE MAN (413om)wcr"). The inisice 1,; CXXTI'INENTAL LAWYERS TITLE ("Trumce'). The Reneficiary is MICHAEL L.CUMMINS DBA EMERALD PACIFIC FINANCIAL, A SOLE PROPRIETORSHIP which is organiicd and existing under the iiws or THE STATE OF CALIFORNIA and whos & addressis 1801 PARKCOURT PLACE, #F200 SANTA ANA, CA 92701 ("Lcnder"). Burrower owes l-ender the principal sum or aM HUNWED PU= THOUS= AND N0/100 ----------------------------- ----------- Dollars (U.S. S 140,000.00 ). This debt isevidenced by Borrowees note (Laled the ramc & tleaS A i % Sectj rily Inst rumcnt ("Nolel. which provides for monthly payments. with the full debt. irnot paid carlier.ducandpayableon Lpril 1, 2003 Ibis Security Instrumcritsecurcs it) Lendec (a) the rep.1yineni of [he debt evidenced by the Note. with intercst.and all renewals. extensions and modifications or the Note,. (b) the payment of all other sums. with interest. adv.uiccd under paragraph 7 to protect the sccurhy of this Security histrumemand (c) the perfonnince of Borrowees covenants and agreements under this Security Inmruinent andtheNote. For this purixise, Borrower irrevocably grzints and conveys to Trustee. in trust. with power of sale. the following der-cribed property located in ORANGE County. California: LEGAL DESCRIPTION ATTACHED HERETO A11D MADE A PART HEREOF WHICH HAS THE PROPERTY ADDRESS OF: ADDRESS: 18051 JOYFUL LANE #104 CITY HUNTINGTON BEACH STATE CALIFORNIA ZIP 92648 TOGETHER WITH all the improvcmcnis nowor hereartercrected on the prolvi-ty.and all cascments.appuricriances. and r W ure% now orhcreafiern Part of ibc profvrty. All replaccincnisand addil ion% shallalso be covered by this Security In.struinent. All of the foregoing is rererred to in this Security Instrument ws [he *Property". itom,wees iniii3is ox-tge I of 7 Pago&) CALIFORNtA - Single Family - FELnnl* Mae/Freddlo Mae UNIFORM INSTRUMENT Form 3005 9.190 BORROWER COVENANTS that Borrower is I.iwfuiiyscisedorti,ce.si;ttchcrehyct)nvcycd and hasthe right to gratu anti convey the Propertyand that the Property is tinencui nhLred, except for cricunih Mecsofrecord. Borrower waminisand will defiend generally the title to the Property against all claimsand demands. subject toany cricumlininces of record. TI IIS SECURITY INSTRUNIENTcornhines. uniform covenants fornalional useand non-uniforin covcnatits with limited varialions byinrisdiclion to constituten uniforin %murity instrument covering real property. UNIFORM COVENANTS. Borrower and Under covcnantand agree as follows: 1. Payment of Principaland Intere0; Prepayment and I.ife Charges. Bom)wcrshall promptly pay when due the principal ofand interest on the debt evidenced �y the Noteatidany fircpayincriland [-tic charges due under the Note. 2. Funds for Taxesand Insurance. Subject to applicabIc law or to a written waiver by Lender. Bomiwer shall pay to Lenderon theday monthly payments arcduc underthe Note. until the Note is paid in full, a sum (-Funds') for (.I) yearly laxesandasse%%mcnis which mayaitain priority over this Security Instrumcnias a lien on the Property: (b) yearly rentsonthc Property.ifany: (c)ycarly hazardorproperly insurn nceprcininins: (d) yearly llood insuranct: premiums. if any: (e) yearly mortgage insurance prernimns. ifany;and (r)any sums ixtyable by Borrowcr it) Lender, inaccordancc with the provisionsorparagraph X. in lieu ofthe payment of mortgage insurance premiums. These heniq -.ire cal led "Escrow Items.- Lender may.atany time, collectand hold Funds in anamouni not to exceed the maxiinuin amount a lender forn federally related mortgage loan may require for Borruwces escrow account under the Weral. Real Eslate Settlement Procedures Act of 1974 as amended from lime to time. 12 U.S.C. Section 2N)l et seq. (*RESPA"). unlessanother law that appl'es to the Fundssets a lesseramouni. If so. Lender may. nlany finic.colleelandhold Funds inan-imt)untnt)itticxct,-ctilheles,.qcr.kinotint. Lendcrm.-Lycstitn.itCihc.-kMtiiintilf Funtis due tin the basis (if current dala and rcisonable estimate% of expenditures of future Escrow Items or otherwise in accordance with applicable law. The Funds shall twe held inan institution whose deptish%are- insured hya federal agency, instrumentality. or entity (including Under. if Lender is suchan institution) or inany Federal Home Loan Bank. Lender shall apply the Funds to p-.ty the r-scrow Items. Lender may not charge Borrower for holding andapplying the Funds. annually analy7ing the escrowaccount. or verifying the Escrow Items, unless Lender pays Borrower interest on the runds-and applicable law permits Lcndcr:om.ike suchacharge. However. Lender may require BorTowcrlopayaone-limc charge for an indeivrident real estate lax reporting service used by Lender in connection with this loan. unlessapplicable law provides. otherwi%c. tlnlc-,-. ariagrccinew is made orapplicalilc law rquircs interest to be paid. Lender shall not tw,- required to pay llom)wcrany interest or earnings tin the Fundi. Borrowcrand Under may agree in writing.howevcr. that imercst shall lie paid on the Funds. Lender shall give to Borrower, without ch.trgc..-Ln.innij;tl.lccolinling of the lotheFund%and the purpose forwhicheach debit lotheFunds w,-Lsmade. The Funds -ire pictligedas sums secured b this Security Instrument. y If I lie Fitnd% held by Lender exceed thcamounis permhted to be held byappl icnble law. Lender shallaccount lo Dorrowerfor 1heexcem Funds inaccordancewith [lie rcquirementsorappucabic law. If the amount orthe Minds field by Lenderal any I ime is not su fficient to pay the Escrow I ferns when due. Lender may so not i ry Borrower in wri I i ng. and. in such ca%e Borrowershall pay it) Lender thcninount necessary to make up the deficiency. Borrowcrshallmakc tip the deficiency in no more than twelve monthly paymertm.-It Lcndce.q sole discretion. Upon payment in full of all sums secured by this Security Instrument. Lender shall promptly refund to Borrowerany Funds held by Lender. If. under paragraph 2 1. Lender shall acqu ire or sell the Property. Lender. prior lo thcacquisilion or sale of the Property.sliallapplyany Funds held by Lenderal the time of acquisition ors.-Ileasa credi(against the sums secured by this Security Instrument. 3. ApplicalionofIlaymerils. Utiles,..ipplic.iblcl;twpn)videstithcrwise..-dip.iysneni.ircccivedbyLj--nder under paragraphs I nnd 2 shall beapplicd: firm. loany prepayment charges due under the Note-. second. loaniounts p.ty.ibletiii(lerp.tragr.ipli2.third.to interest due: fourth.lo prinJpal d tie: and last.loany I.LteChafgCS, due under the Note. 4. Charges;Lien.s. Dtirrowersh.tilixty.illtixcs.a%,.L-,%tncnts.cti.trgc.-;.rincs-,tndiinpoeiti4)n.s,-Iftfihljl:lhlelo the Property which mayaliain priority over this Security Insiniment.and leaschold payments or ground renis. irany. Borrowcr.siuill pay these obligai ions in themannerprovitIct! in pan. griphtor if nolpaid inthal manner.Borrowershall Iviy them on time directly to the person owed payment. Borrowershill. promptly furnish to Lender all not ices o rmnou nts lt)tw--p:iidtindo.-riiiisp.-tmgmpli. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrowershall promptlydi%chargcany lien which M% priority over this Security Instrument unless Borrower 111.1m1wres 111;1121.1 EtA -. (page 2 of 7 pages) CALIFORNIA - Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3005 91,90 Wngrees in writing lothe payment of theoliligalionsecurcd by [lie lien in a manneracceplable to Lender (b)c(Iniest'i in gotA raith the lien by. or defend-,;.ig;tin.�;tcnft)rccincnI of the lien in. legal proceedings which in the Under'sopinion operale to prevent thecriforceincrit of the lien: or (c).sccurcs from the holder or the iienanagreement smiisfaciory (o Lendcrsub,ordinating the lien whis Security Insirument. If Underdetermincs thitany pan of the Property b; subject to a lien which may attain priority over this Security Instrument. Lender may give Borrower a notice identifying the lien. Dom)wcr shall satisfy the lien or cak-c one or more of the actions set forth above within 10 days or the giving or notice. S. ll=ird or Property Insurance. Borrowershall keep the improvement-. now existing or hcrcaftererccled tin the Propeny insured against loss by fire. haz.irds included within the term -extended coverage- and any other haz.ard%. including floods or flooding. ror which Under requires insurance. Ws insurance shall tic maintained in the amountsand for lhe period.,; that Lender rquires. The insurance carrier providing the insurance shall be chosen by Borrowcrsubject toUnder's approval which shall not be unrcasimilily withheld. If Boffowcrf.tilstom.tint.iincovcr.ige described ahtivc. Under miy, at Under*.% option. obtain coverage to protect Lcndces rights in the Property in accordanec with paragraph 7. All insurance ptiliciciand rcriewalsshattlyeacccpiableto Lenderand shall includcimandard morigageclause. Undershall have the right to hold the rooliciesand renewals. If Lendcrrquircs.Borrowcrshall promptly give to Lender - -ccipts of ptid premiumsand renewal notices. In the event of loss. Borrower shall give prompt notice it) the all re insurance carrier and Lender. Lender may make proof of Joss. if not made promptly by Borrower. Unless Lender and Rcrrower oilierwiseagrec in writing. insurance proceeds shall beapplicd to rcstonation or repair of the Property damaged. if the restoration or rep.-ur is ecenomically reasibleand Lender's security is not lessened. If Ilic resioration ompair isnot economically feasible or Under'ssecurity would he Icsscried. the insurance pn)cecds shall beapplied to the sums secured by this Security Insirument, whether or not [hen due. with any excess paid to Borrower. If 13orrowerabandons the Properly.ordoes noianswcrwithin 30 days nnot ice from Lender that the insurance carrierliz offered loseldc n claim. then Undermay collect the insurance proceeds. I-clidermayuscthcproceeds-to repair o r restore the Property or to pay sum ssccurcd by this Security Instru incrit. whether or not then due. Tht:304-ty period will begin when the notice is given. thiles,- U-nderand Borrower otherwise agree in wriiing.any applicalion of paxceds to principalsball not cxicridorptimpone the due dateof the monthly paymcnis rcfcrrud to in pin. graphs land 2orck-inge thmnount (if the payments. If under paragraph 21 the Properly isacquired by Lender. Borrower's right toany insurance ptiliciesand proceeds resulting froin damilc to the Property prior it) the a;:quisilion shall p.L-,q to Lender to the extent of [he sums .A. -cured by ihis Security Instrument immediately prior to theacquisition. 6. 0ccupancy, Preservation. hiaintenance and Protection of the Property; Borrower's [Aan Applica- lion; Leaseholds. Borrowcrsh ill occupy.cstablish and use ft. Properlyas Borrowcr'sprincipal residence wiihinsixty dayqaricr the execution of this Security Instrument and shall continue to occupy the Properiyx% Borrowces principal residence for at least one yearafter the &-tic of occupancy. unless Lender other-wiscagrecs in writing. which consent khall not be unrew-Ainably withheld. or unless extenuating circumstances exist which are heyond Borrower*s conlrol. Borrower shall not desircly. damige or impair the Propercy.u'low the Property to delenorwe. or commit wasic tin the Property. Dorrowcr shall bic in defaull if any forfeitureaction or proccctling. whether civil or criminal. is begiin ill. -It in Lender's p(mid faithjudgment could result in forfeiture of the Property or otherw isc- inatcrially impair the lien created by Illis Security Instrument or Lender'.% security interest. Borrcwer may cure xuchn defitultarid rcinsiate.as; provided in pmragraph IM. by causing the aciion or proceeding to be dismissed with a ruling that. in Lcndce.-; gotul faiih detcrmination.precludes forfeitureofthe Borrowcr's interest in theProperty or other malerial impairmcnlof the lien created by chi% Security Instrument or Lendees security interest. Bormwcrsli.illal-A)hLindef.tultirBomiwer.dilring the loan applicaiion proccvs. gave innicrially false or inaccurate information or slalements to Under (or failed to provide Under with any maierial informilion) in conliLclion with the Joan evidenced by the Note. including. hill not limited lo. repre%entalions concerning Borrower's occuliancy tif the Propertyas a principal residence. If this Security Instrument is ona leaschold. Borrower shall comply whhaH [lie provisions of the lemsc. If Borrowcracquires fee fide to the Property. the leascholdand the ree title -hall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rightsinthe Property. If Borrowerfaits loperform thecovenintsaiid agreements contained in this Security Instrument. orthcrc isa legal procceding Iltat may significantly arrect Lender's right.%- in the Property(suchasaprocceding in bankruptcy. probate. for contlemnal ion or forfeiture orlocnforcc lawsorrcgulalions), Ilien Lender may doand pay for whatever is necessary to protect the value of the Propertyand Under's fight-, in the Properly. Undi-l"SaCtiOnS M;ty include payingany sums secured by a lien which has priority over this Security Poriv%wres Initi3h (page 3 017 pages) CALIFORNIA - Single Family -Fannie Mee.'Freddle Mac UNiroRm INSTRUMENT Form 3005 9.190 Instrument. appearing in court. paying reasonable illorney%* fees and entering on the Property to make repaiN. Alihmigh Lender may lakenction under this parigraph 7. U-nder does not have to do so. Any anioiint% disbur.wd by Lender under this paragrarh 7 %hall tx-comcaddifional debt of Borrowcrsecured bythi.,cSecurityinstrutnent. Unless Borrowerand Lcrideragrec to other terms of payment, dicscamounts shall bear interest from the datcordisbursementat the Note ralcand shall be payable. with intcrcst. upon notice from Lender it) Doffower rttluesfing payment. 8. Mortgage insurance. If Lender required inortgage insurancensa condition of inak ing the loan secured by thi% Security Instrument. Borrowershall pay the premium.,; required to maintain the mortgage insurance in effect. If. forany reason. the inorlgagc insurince coverige required by Lender lapses or cca%cs: Io be in effect. Borrower shall pay the premium,; required to obtain covcmgc substariti. illy equivalent it) the mortgage insurance previously in effic-cl.nia cost siobstantially equivalent to the cost to Borrower of the mortgage insurance previously in effect. from an.-illerrinic mortgage insurer approved by Lender. If substar li ally equi valent mongag e insurance co verigc is n ot available. Borrower shall pay to Lender each month a sum equal to onc-lwclfili of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept. u%cand retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no Ionger tx,- required. at the option of Lender. if mortgage insurance coverage (in theamount and for the period that Lender requircN) pnivided by an insur--rapprovcd by Lender.ig:dn becomes available and is obtained. Borrower shall pay the preinium% required to maintain mortgage insurance in effect. orlo providea loss rm-rve. until the requirement for inortgagc insurance ends innccordance withany writienagrcement between Borrowcrand Lender orapplicable I:kw. 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Proper-ty. Lender shall give Borrower notice at the time of or prior to an inspection specifying rcisorinble cause for the inspection. 10. Condemnation. The procceds of any award or claim for damages. direct or consequential. in connection with any condemnation or other taking (if my part of the Property. or for conveyance in lieu of condeninat ion. are licreby.assignedand shall be paid lo Lender. In the event of a total taking of the Property. the proceeds shall tx,- applied to the sums secured by this Security Instrument. wlicihercr not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fair mar1w valuc of [tic Property immediately before the laking is equal to or greater than the amount of the sums %Lcismd by this Security Instrument iminediately before the taking. unless Borrower and I-Lnder otherwise agree in writing. the sums secured by this Security insiruincrit stiall be reduced by the amount (if the prtx:ccd% mullipfiLd by the following fr-action: (a) the total unount or the sums. secured immediately before the laking. divided by jh) the fair market valuc of the Properly immediately More the taking. Any balance shall lie paid it) Borrower. In [tic event or a P'.Irtial taking of the Property in which the fair inarkel value of lite Property immediately before the taking is 1%-Ns than the unouni of the sums secured immediately before the viking. unless Borrowerand Lender otherwise agree in writing or unless applicable la%� othcrwi%L provides. the procccclsshall be applied to the .time, secured by this Security Instrument whetter or not llic.sunisarc then due. If the Noperly is abandoned by Borrower. or if. after notice by Lender to Borrower that the condemnor offers to mak-can award orsetilcrk claim for d.unagas. Borrower fails to respond to Under within 30 days after [he date lite notice i% given. Lender Lsauthorized to collect and apply the procceds,ni its option. either to restoration or repair of the Property or to the suinssccurcd by this Security Instrument. whether or not then due. Unless LLriderand Borrower othcrwiscagree in writing,any application or proceeds to principal shall noi extend or postpone the due date of the monthly ixtymcnis referred it) in pamgraphs I and 2 or change theamount of such payment%. 11. Horrovier Not Released; Forbearance Ity Lender Not a Waiver. Extension of the time for ixtyineni or nuidificalion of amorliziliol, of the surnssecured by this Security Instrument granted by Lcnder to any successor in interest of Borrower shall not operate to release [tic liability orihe original Borrower or Borrower's succc,,-,:()r.%- in interest. Lender shall not be required to commence proceedings againstany successor in interest or refuse to extend time for payment or ottwrwis& modifyamorli7ation or the suinmcured by thii Security Instrument by reason ofany demand made by the original Borrower or Borrower's successors in interest. Any forhem-ance by Lcnder in exercisingany right or remedy shall not I-o-- a waiver of or prLcludc the exercise of any right or remedy. 12. Successors and Assigns Ilound; Joint and Several Liability; Co-signers. The covenants and agrecinents of this Security Insinsincrit shall hind and benefil the succemors and assigns of Lender and Borrower. subject to the provisions of linra. graph 17. Borrt)wcr*s coven:tnisand agreements shall be jointand severil. Any Borrower who co-sign% this Security Instrument but does not execute the Note: (.a) is co-signing this Security 11.1m1wees 11111121% (page 4 of 7 pigrA) CALIFORNIA - Single Family - Fannie MaeTteddle Mae UNIFORM INSTRUMENT Form 3005 9190 Instrument only to mortgage, grant and convey that Borrower's interest in the Property under the terms of this Security Instrument: (h) is not personally obligated to lray lite sums secured by this Security Instrument: mid (c) agrees that Underandany other Borrower mayagree to extend. modiry, forbear or makeany accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges. and that law is finally interpreted so that the interest or other loan charges collected or to he collected in connection with the loan exceed the permitted limits. then: (a) any such loan charge shall he reduced by the ainount necessary to reduce the charge to the permitted limit; and (b) my sums already collected from Borrower which cxcccdcd permitted limits will he refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal. the reduction will Ix- treated as a partial prepayment without any prepayment charge under the Note. 14. Noticei. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall he directed to the Property Address orany otheraddress Borrower designates by notice to Lender. Any notice to Lender shall he given by first class in" to Lender's address stated herein or any otheraddress Lender designates by notice to Borrower. Any notice provided for in this Security Instrumentshall be deemed to have been given to Borrower or Under when given is provided in this paragraph. 15. Goveming Law; Severability. This Security Instrument shall be governed by federal lawand lite law or the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law. such conflict shall not affect other provisions of this Security Instrument or [lie Note which can he given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note arc declared to he severable. 16. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security instrument. 17. Transfer of the Property or a Beneficial Interest in Borrower. If all orany part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferredand Borrower is not a natural person) without Lender's prior written consent, Under may. at its option, require immediate payment in full ofallsums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibiled by federal law is of the date of this Security Instrument. If Lender exercises this option. Lender shall give Borrower notice of acceleration. Ile noticeshall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must payall sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period. Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. 18. Borrower's Right to Reinstate. If Borrower meets certain conditions, Borrower shall have the right it) have enforccinent of this Security Instrument discontinued at my time prior to the earlier of. (a) 5 days (or such other period wq applicable law may specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this Security Instrument: or (h) entry of ajudgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender allsums which then would he due under this Security Instrument and the Notcas if no acceleration had occurred; (h) curmq any default of any other covenants or agreements; (c) pays all expcn% e incurred in enforcing this Security Instrument. including, but not limited to, reasonable attorneys' fees,..md (d) takes suchactionas Lender may reasonably require towvsure that the lien of this Security Instrument. Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower. this Security Instrument and the obligations secured hereby shall remain fully cffectiveas if noaccelcrationhad occurred. However. this right to reinstate shall not apply in the case ofacceleration under paragraph 17. 19. Sale of Note; Change of Loan Servicer. 'Me Note or a partial interest in the Note (together with this Security Instrument) may k- sold one or more times without prior notice to Borrower. A sale may result in a change in the entity (known as the "Loan Scrviccr") that collects monthly payments due under the Note and this Security Instrument. There also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Serviccr, Borrower will be given written notice of the change inaccordance with pan. graph 14 above and applicable law. 'Me notice will state the name and address of the new Loan Servicer and the addrcss to which payments should be made. The notice will also containany other information required by applicable law. 20. Hazardous Substances. Borrower shall not cause or permit the presence. use, disposal, storage. or release ,-)m Ilorrowees Initials V- (page 5 of 7 pages) CALIFORNIA - SIVe Fafrdly - Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 3005 9/90 (if any tlmardotiq Submances an or in the Property. Borrower shall not do. norallow anyone e1sc to do. anything affec ling [tie Property that is in violalion orany EnvironmCF11.0 Law. The preceding two sentencesshall not 1pply it) The presence. usc.orstomge on the Properlyofsm.fll quanfilicsof Fla7.irdouq Substances thwarcgcricr.ndlyrccognized lo be appropriate to normal rcAdenlial usesand it) maintenance of the Property. Borrower shall promptly give Lender written notice of any investigation. claim. dernand, lawsuit or other action by any govcmmental or regulatory agency orpriviie party involving the Propertyand any Ha7.ardous Substance tirEnvin)ninentaIL-twofwhictiBoffowerh-.is.,ictu.tlknowlcdpc. l(Borrowcr learns.or is notified by any governmental any removal or other remedial ion ofany thur-irdous Substanceaffecting the Property is necc%�iry. Borrower shall promptly lak-eall necemary remedial actions in accordancc with Environmenud Law. As. used in this paragraph 20. *Ha7.irdous. Substances' are those substances definedas toxic or hazWous substances by Environmental Law and the following subsunecs: gasoline. kerosene. other fl.,unmable or toxic pelroltnim priulucisjoxiepesficide%and herhicitiLN.vtil.itilc,.;tilvcnl,.;.materi.-il.,;cont.iining-,Lshesio,.;orft)nnildehyde. and r adioactive materials. As used in this paragraph 20. "Environmental Law" means federal lawsand Laws of the jurisdiction where the Property is located that Hale to healih.safely or crivironmenial protection. NON -UNIFORM COVENANTS. Boffowernnd Under further covenanlandagrce.-w follow.s: 21. Acceleralion;Remedies. Lender sha 11 give not ice to Borrower prior to acceleration following llorrowrr's breach of any covenant or agreement in this Security Instrument (but not prior lip acceleration under paragraph 17 unless applicable law provides othenvise). The notice shall specify: (a) the deraull; (h) the action required to cure the derault; (c) a date, not less than 30 days from the date the noticei-igiven to Borrower, by which the derault must be cured; and (d) that failure to cure the default on orliefore therlatespecified in the nolice mayresult in accelerati(inortlieiumssectired bythi% Security Inxtrument and sale of the Property. The notice %hall further inform 11orruwerorlhe right to reinstate arteracceleration and the right to bring a court aclion tip assert the nnn-exislence of a deraull orany other derense of Wwromer to acceleration and sale. If the derault is not cured on or before the dale r specified in the notice, Lender at itsoplion may require immediate payment in full of all sumssecured by 1his Security Instrument without further demand and may invoke the powerormae and any other remedies permitted by applicable law. Lendershall be entitled to collect all expenses incurred in pun-uing the remedies provided in this paragraph 2 l,includ;ng, but not limited to, rea%vinable attorneys' feesand costs of title evidence. If Lender invokes the power ofsale, Lendershall execute or cause Trustee to execute a written notice of the occurrenceof an eventordefaull and of Lender'seleclinn locausethe Properlyto besold. Trustee shall cause this notice tobe recorded in each county in -Ahich any part of the Property is located. Lender orl"ruslee shn1l mail copies of the notice as prescribed by applicable law to Borrower and totheolher personi prescribed by applicable law. Trustee %hall give public notice of sale to the persons and in the manner prescribed by 2ppliMWE 13W. After the time required by applicable law, Trustee, wilhout demand on llorrowershallsell theProperlyat publicauction tolhe highest bidderat thetimeand place and under the terms designated in the notice of safe in one or more parcels and in any order Trustee determines. Trustee may postpone sale orall or any parcel of the Property by public announcement at the time and place orany previously scheduled sale. Lender or its designee may purchase the Property at any sale. Tru%lee shall deliver to the purchaserTrustee's deed conveying the propertywithout any covenant Or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of me truth or the statements made therein. Trustee shall apply [lie proceeds orthesale in the following order: (2) tO 211 eXpen%ei of the sale, including, but nrit limited to, reasonable Trustee's and attorneys* fees; (h) trial[ sums secured by thisSecurity Instrument; and (c) any excess to the person or persons legall ' Y entitled to it. 22. Reconveyance. Upon payment of all sumssecured by this Security Instrument. Lender shall request Truslec to reconvcy the Property and shall surrender this Security Instrumcninnd all notes evidencing dclils-ecured by this Security Instrument loTruslec. Trustee shall rcconvey the Property without wai my to the person or persons legillyenfidedio it. Such person or rvrsonsshillpay.Lnyrec(irtL-itioncosis.Lcnderm.-tycLuge such person or personq a fee forreconveying the Property. but only if the fee ispaid la a third party (suchas. the Trustee) for services rendered and the chargi n g of [lie fee is pennitted under applicable law. Itorn-wees Inifials (page 6 of 7 pages) CALIFORNI A - S ingle F.undy - Fannie M so-Troddle Mae UNIFO RLI INSTRUM ENT Form 2005 91,90 23.NuhsIiIuIeTruqee. LLnder.al its op6on.mayffinntimc it) tiiiie.iM)in(isticccs,,ortru-.tcetti.tnyTru.,-,iLe apixiinied hercunderhyan instruinentcxccuted.ind.icknt)wted-,ed by Lcnderand recorded in the officcortike Recorder of the county in which the Property is Walcd. The instrument shall contain the name of the original Lentler.Trustee and Rom)wer.the bot)k and page where this Security Instrument is recorded and dicnvne and address of thesucce.s.-Air trusicc. Without conveyance of the Property. the successor trustee shall succeed to all the title. powers and duties conferred kilion [tic Trustechcreinand byapplicahle law. This procedure forsubstitulion. of trustee shall govem to the exclusion of all tither provisions for substitution. 24. Request rorNotices. Borrower requests that cor. ics of the notices of default and sale be sent to Born)wcr*s addre, ss which is the Property Address. 25. Statement of Obligation Fee. Lender may collect a fee not to exceed the maximummnount permilled by law for furni%hing the statement of obligation as provided by Section 2943 of the Civil Code of Californkt. 26. Riders tothisSecurity Instrument. Ifoneormom ridersarecxecutcd by Borrowerand recorded together with this Security Instrument. the covcnantsand agreements of each such rider shall he incorporated into and shall amcnd and supplement the covenantsand agreements of this Security Insirumen: vs if the rider(s) were a part of this Security Instrument. [Checkapplicablebox(cs)] El Adjustable Rate Rider El Condominium Rider El 1-4 Family Rider Graduated Payment Rider El Planned Unit M-velopmcnt Rider BiwccklyPaymcni Rider Balloon Rider 1:1 Rate Improwmcnt Rider Second Home Rider OlhMs) [specify] El BYSIGNINGS BELOW, Borrowcracceptsand igrccs to the tzrms and covenants contained in this Security Instrument 1 any n*dcr( �) executed by Borrowerand recorded with it. r—an' PETER MARGOLIS (Space Below 7bis Line FOr Acknowledgement] STATE OF CALIFORNIA. COUNTY 017� CRANM SS. Oq.MARCH .7,1996 before me, LINDA J. CAMPBELL pem)nally ippL-.Wcd PETER MARGOLIS pos" N&�W &W Too). person.klly known to me (or proved to me on the Kweis of salisfictory evidence) to be the person(s) whose name(s) i.q- are sub-cribed it) the within instrumentand acknowledged it) me that heAheAhey executed the sarne in his/her/their authorized capacity(ics), and that by his/krAhcirsignaturc(s) on theinstrument the pemon(s).or the entity upon k-hair of which the ricn-on(s) acted. executed the instrument. WITNEn rrinj an) ofriq*a� �se 1. �PSELL LINDAICAMP co%,J!A. r 1045344 c3 Sigtla G111) .4f WTtvy ntc!i C. r.j%,1C0PNIA D3 Cn to. - .- 7 0Qh!n-- cf--..# LINM J. /L*TBELL my Comm. ryx—. 21. 12" - (pago 7 ol 7 pages) CALIFORNTA - Single Family - Fannie Maofreddit Mac UNIFORM INSTRUMENT F*rm 3005 9110 EX111DIT "A" PARCEL 1: An undivided one twenty second (1/22) fee simple interest so a tenant In com"on in and to all of the Common Area defined ill Declaration referred to below Arid described in the Condominium Plan ("PlanO) for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of official Records of orange County, over Lot I of Tract No. 14828, in the City of Huntington Beach, County of Orange. State of California, as per map filed In Book 706. Pages 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of said County. PARCEG 2: unit no. 20 consisting of certain airspace and surface elements, an shown and described in the Condominium Plan referred to in Parcel I above. PARCEL 3: lion -exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of Covenants, conditions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-OS25336 of official Records. PARCEL 4: oxclusive easements appurteiiant to Parcelff .1 and 2 referred to above, for balcony or I)atio purposes, over the areas defined. depicted and assigned oil the Plan. LN# 4173191 BALLOON RIDER (CONDITIONAL RIGHT TO REFINANCE) TIIISIIAI.I.()ONt',II)Eltism.ttletfii% 5TH 41ayof March, 1996 and is incoriximied intoand shall bedectricdtonincridand supplement theNlortgigc, Deed ofTrustorDecd to Secure Debt (the -Security Instrument") of the same date given by the und-.rsi gned (the "Borrower") to secure the Borrower's Note to MICHAEL L.CUMMINS DEA ENERALD PACIFIC FINANCIAL, A SOLE PROPRIETORSHIP (the -Under-) of the same dimc and covering the property described in the Security Instrumentand located at: 18051 JOYFUL LANE #104, HUNTINGTON BEACH, CA 92648 [PROPERTY ADDRESS] The inierest rate slitcd on the Note is called ilic"Nole Ratc."T'he date orthe Note is called the"Note ade." I understand the Lender nmyvansfer the Note. Security Instrument and this Rider. Ilic Lender oranyonc who takcs the Note. the Security Instrunicrit and this Rider by transfer and who is entitled to receive payments under the Note is called the -Note Holder." Additional CovenanLs. Innddition to the covcnaritsandagre-cmcrits in the Security Instrument.11orrowerand Lender furiher covcnant and gigrecws follows (desphe anything to the cont M. coniamcd in the Security Instrument or the Note.): 1. CONDITIONAL RIGI IT TO RFFINANCF Althe maturity dateof theNote and Security Insirumcm (ft"Maturity Matz-). Iwill beahicto ohtiinanew ltran ('New Loan') witha new Maturity Date or April 1, 2026 and with in interest rate equal to 1he *New Now Rate"determincd inaccordancc with S.--clion 3 below ifall Lhecondiflons provided in Sectiori-q 2and 5 below are met (the "Condilional Refinancing Option"). If those conditionsarc not met, I understand that the Note 11oldcr is under no obligation to refinance or modify the Notc.or to extend the Maturity Date. and that I will havc to reply the Note froin my ovrn resourccs or rind a lender wi'ling to lcnd me the money to repay the Note. 2. CONDITI ONS To OPTI ON. If I want to exercise the Conditional Refinancing OptiOnat maturity. ccrmin conditions must be met ni; orthe Maturity Daic. These conditionsarc:(I) I must still be the ownerand occupant or the property subject to the So,"rily Instrument (the "Properly-): (2) 1 must be current in my monthly payments and cannot have been more than 30 days late on any or the 12 scheduled monthly payments immWiaiely preceding the Maturity Date: (3) no licnagainst the pn)rvrty (except for taxeN and specialas;sessmenis not yet ducand payable) other than that of the Security ln%trumcnt may exist: (4) thc New Note Rate cannot be more than'.5 percent.age points above the Note Rate: and (5) 1 mum mak-e a written request it) the Note liolderms. provided in Section 5 below. 3. CALCULATINGT11F NEW NOTE RATr Tlie New Note Rate will be a Fixed rate of interest equal to the Federal. National Mortgage As,%oLiation's required net yield for 30-yeir fixed rate mortgages subject toa 60-day manthlory delivery cominitmcni. plus onc-halr of tine percentage point (0.51A). rounded to the nearest one-cighth of one percentage point (0.125%.)(the -New Note n MULTISTATF RALI.OnRll ER - Single Family - Fannie Mae Vnirorm Imstrument Form 3180 121X9 Buym)wces Initials— Amended 3192 (page I ofZ pages) Rile"). The required net yield shall lw-- lheipplicablencl yield in effect on ihedatcud time of day that the Note Holder receives not ice v f my c lection to exerci%c the Cond it ional Rcfirancing Opt ion. If this required net yield is not available. the Note I [older will determine the New Note Rate by using comp.:umble information. 4. CALCULATINGMIF NFN%' PAYNIFN'T AMOUNT Provided the New Nott; Ratew calculated in Section 3 above is not greater than 5 percentage poinisabove the Note Raleatid all other condifions required in Section 2above am swisficd. the Note Holder will determine the siniount (if the monibly paym,,,nt that will be sufficient lo rc[Kiy in full (a) the unpaid principal. plus (b) a b Lcrucd ut unpaid interest, plus (Oall offiersuins I will owe undcribe Notc.ind Security Instrument on the Milurity Date Gmguming iny monthly payments llicnarc current.ms required under Sw ion 2 above). over the term of [be New Went the New Note Rate in equal monthly payments. The result (if this calculation will Ix- the amount of my new principaland interest payment every month until ft New Note is fully paid. 5. FXFRCISIN(; TI IF CONDmONA L [I EFINANCING Off ION 'nae Note Holder will notify me at lcLq 60 calendar days in adw-mce ofthe Maturity Date andadvise tile of the princilial.accrued but unpaid interesi.and all other sum% I am expected to owe on the Milurity Date. 77he Nole 1101dera!--o willadvise me that I may exercise the Condiiional Refinancing Option if the conditions in Section 2above are met. The Mile Holder will provide my payment record information. together with the naine. iitleand iddress of The person reprm-riting the Note Holder that I must notify N order to exercise the Conditional Rcrinancing Option. If I meet the condifions of Section 2 above. I mayexcrcise the Conditional Refinancing Option by notifying the Nole flolder no laler than 45 calcridar day,% prior to the Maturity Date. The Note Holder will calculate the fixed New Note Rate hnscil uj%Nn the Federal National Mortgage Association's applicable published required net yield in effect tin the date ind time of day nolification i% received by the Nole Iloldvrandw calculated in Section 3 above. Iwill1henhavc 30calend.trd.iyst(ipr(ividelh,�Noicifoldcrwilh.vccpi:tblepi-(,Aif of my required owncrship.occupancyand property lien status. Beforc the Maiurity Date the Nole Holderwill idvise me of the new interest rate (the New Note Rate). new moniblypaymentamountand adale.limcand placcat which I muslapp mtosign.Lnydtxunientsrcquircdlocoinpleic the required refinancing. I undemind the Note Holder will charge me a$250.00 processing fecand the cos. isx-,-4xiaied with updating the title insurance pol icy. if any. and any reasonable third -party costs. such .15 docu men tary slamps. intangible tax. survey. recording fees. etc. By Signing Below. Borrowcracccptsand agrees to the terms and covenants contained in this Balloon Rider. ]PETER MARGOLIE) MULTISTATE BALLOON RIDER - Single Runily - Fannie Mae Uniform In-strument Form 3180 12IX9 Amended 3192 (page 2 of2 pages) LN#4173191 CONDOMINIUM RIDER THIS CONDMNIINIUNI IZIDEIZ is made this 5TH dayof March, 1996 and is incorporaicd intoand -.hall bt. dLemed toamendand supplement dichlorigage, Ix-cd of Trust or Security rhx-d (the "Security Instrument-) of the same (Inte given by the undersigned (the "Borrower") to secure Borrower's Note to MICHAEL L.CUMMINS DBA EMERALD PACIFIC FINANCIAL, A SOLE PROPRIETORSHIP (the "Lender) of the cune dile and covering the Property described in the Security Instrument and located at: 18051 JOYFUL LALNE #104, HUNTINGTON BEACH, CA 92648 QROPERTY ADDRESS] 7bc Property includm a unit in, together withan undivided interest in thecommon elements of. a condominium project known as: PACIFIC PARK VILLAS (the "Condominium Pr�eci"). If the owners association or other entity which acts for the Condominium Project (the '�Owncrs Association-) holds title to property for the benefit cr use of its. members or shan:holders, the Propertyal.-a) includes Bom%wces interest in the Owners Associationxid the uses. raxecds. and benefits of Borrower*& interest. CON'DOMINIUNI COVENANTS. In riddiiion to the covenants and agrccinents made in the Security Iruttrument. Borrowerand Lender further covcnantandagrue.-v; follows: A. Condominium Obligations. Borrowcrshall perform all of Borrower's obligiflons under the Corid(vninium Project)sConstituent Documenis.The"Constitucnt I)ocuments-arethc: (i) Declaration or.vy other document which creates the Condominium Project: (ii) by-laws. (iii) code of regulations, and (iv) other equivalent documents. Borrower sh.all pmrnpily pay. when due. all duesandasscssments imixiscd pursuant to the Constituent Documents. 11.11a72rdInsurance.So long as the Owners AszsocialiDn mainviins.with agencrillyacccpicd insu M.cccarrier. a-in.-Lster"or"bl;tnkct-jx)llcyi)ntht, Condominium Project which issatisfactorytoLendcrand whichprovides insuranLe coverage in thcamounts. for the lvriods.arid against the hazuts Lender requires. including fireand hazards included within the term "extended coverage.- then: (i) Lender waives the provision in Uniforin Covenant 2 for the monthly payment to Under of one-twcIfth of [he yearly premium installments for )Lvard insurancc on Me Property -.and (ii) Borrower's ohl igat ion under Uni form Cownanis it) mrii ntain Ward insurance coverage (in the Property is dccmcd satisfied to the extent that the required coverage is provided by the Owners Association policy. Borrower shall give Lendcr prompt notice ofany Lxme in required ha7,ard insurance: coverage. I n I he event ofa distribution of hazard insurance procLeds in lieu of resion. tion or rclxiir foll mving a los-s to the Property. whether to the unit or to coin inon c lements. any prote6ds payable to B orrower arc hereby assigned and shall be paid to Lender for application to the sums sccurcd by the Security Instrument. with any excess Mid to Borrower. C. Public Liability Insurance. Borrowcrshall take suchactionsasmay be reasonabictoinsurc that the Owners Kwxiation maintains a public liability insurance policy acceptable in form. amount. and extent of coverage to Lender. Borrowces Ittitials i%se i rr 2 MULTISTATECO-NIX)MINJUNI RIDLIA -SLAfle Famly - Fannie htadFredd1e.%1&cV'N1F0R%1 INSTRI)MENT Form 3140 4194 1). Condemnation. 'Me proceeds of any award or cktirn for dainages. direct or consequenti;d. payable to Borrowerinconnection wilhany condemnation orother LA-ing ofall orany p;ui of the Property. wheftr of the unit or of the common elements, orany conveyance in lieu or condunnnaiion, are herebyassigned and shill be paid lo Lender. Such procce(Ushall bcapplied by Lcriderlothesumssccurcd by the Security Instrumentas provided in Uniform Covcn.mt 10. V. 1.,ender's Prior Consent. Borrower shall not,cxcept.after notice toLenderand with Lender's prior written con.sent. either partition or subdivide the Pwperty or consent to: (i) thenhandonment ortcrmin.-kiion of the Condominium Project, except forahandonment or termination rcquircd by law in the case of substantial destruction by rwcorothcrctsualty or in thec-tse ora tak- ing by condemnation or cm inent dtxn,,un: (H)wyamendmcnt toany provision of the Consditlent Documents if the provision is for [he express bLnef it of Lender (iii) iermination of professional manigcmcniandwssumption ofscif-im-nagement of the Owners Amociation; or (iv) anyaction which would have the effect of rendering the public IL-thility insurance coverage maintained by the Owners Assocization unicreptible to Lender. F. Remedies. If Borrowerdcx-.% not pay condominium duesandw;sessmcnis when due. then Lender may 1my them. Anydishursed by Lenderunder this pan. graph Fshall becomeadditional debt of Borrowcrsecurcd by theSecurity Iftstrument. Unless Borrowcrand Lcnderagrcc loothmenw; of payment.theseamountsskall bcarinicrcst from ibedate ordishursement at the Note rateand shall be payable. with interest. upon notice from Lender to Borrower requesting payment. BYSIGNINGS ISELOW,Borrowcr.icceptq,,mdagrcc.s to the termsand provisions contairied in tMs Condominium Rider. PETER MARGOLIS U Pap 2 of 2 NIVILTN'TATE CONDOMINIUM RIDER - Single Fjwnly - Fannie NWN'reddle Mac MFORNI INSTRUMENr Form 3140 414 BVIDENCE. CF INIISURANCUT Policy Numoer C 0 IND0,1111 MY 1\11 Replaced Policy Number ASSOCIATION POLICY Coverage afforded by this poicy is provided by the Company indicated beow. 2 STATE FARM FIRE AND CASUALTY COMPANY A Stock Company. Bloomington. Illinois C1 STATE FARM GENERAL INSURANC=- COMPANY A Stock Company. Bloomington. Illinois 0 STATE FARM LLOYDS COMPANY A Lloyds Company. Dallas. Texas This Is to certify that the Company lnd.'cated above has the following Insurance In force: Unitowneft Name and Mailing Addre53 PETER MARGOLIS, A SINGLE MAN 18051 JOYFUL LANEF #104 HUNTINGTON BEACHl CALIFORNIA 92648 Insured's Name and Mailing Address PACIFIC PARK VILLAS HOA 4100 NEWPORT PLACE DR STE 350 Automatic Renewal If the Policy Period is NEWPORT BEACH, CA 92660-2437 shown as 12 Months, this policy win be renewed automatically subject to To premiums, rules and forms in effect for each succeeding porp/ period. It this policy Is terminated. we *0 give you and the Mortgagee written notice In compliance with the ftcy ftcd bw* &V policy provisicns or as required by law. Qftn St 1201 LRL Suft"M 3-06 — Eff ective Cate row M Vho tPo"reg W.Waft 12 Months — Policy Period urow 011101W." salft Eipiration of 01 N=StwmWd rem Policy Period Policy Type - 0 Basic Form 1 2 Spec:W Form 3 UmA3 at Uabillry Coverage S 2 400 -000 A Buildings S 7FIR:P. 00 L Business Liability DEDUC1.11BLE In case of a loss we cover only that part of the loss over the Ceduclible stated. Forms. Cpuons & Encorsements; SECOND MORTGAGEE: CITY OF HUNTINGTON BEACH FP-6109 FE-0-451 2000 MAIN STREET FE-6307.1 FE-0-506 HUNTINGTON BEACH, CALIFORNIA 92648 FE-E494 FE-6205 FE-6303 FE-C466 Unitawner.Mongagee (FIRST) 41731511 Loan Numcer FTB MORTGAGE SERVICES# ITS SUCCESSORS AND/OR ASSIGNS P.O. BOX 80140 1762 ATLANTAp GA. 30366 Ag" I Com 49 UW�L- S.r. rORk Form 438BFU NS (Rtv. Uay t. 1942) X 0. LENDER'S LOSS PAYABLE ENDORSEMENT V"70 1. Loss or dam3ge. if any. under ilik polky. kliall be paid to the Payee Aiimed on the first page of Mis policT, its successocs and assign$. liatTeinAltCr secrttil to as 'the Lendcr". in whatcvcr form or catpacily its interests, may appear and whether uid iftiteritst be vested in said Under in its individual or it% it% dichised or undisclosed fiduciary or representative capacity. or otherwise. or vested in a roomince or trusirc of said I.,ender. Z The io%uranerr conifer this 1xilon y. ter any f Mer air endtirsirment attached thereto. a% its the interest only of the Lender. its succts- sors and assign%. shall not be invalidated rir %n%strudcd: ta) by any error. omission. or change respecting the ownership. description, possession. or lopraiiire u! the subject vf the in%totance air the iniefest therrin. or tile title lherelfs; (to) by the cureirevencernent of foreclosure proceedings of the giving of rkslice o( sale uf any uf the property covered by this imilicy fly el of any mortgage or trust dred: W by any breach uf lotarrainy. act, timisoll,"l. nexlect. air Isim-rumidiancir with any of the vraivisi4m% id this policy. including any and all riders now or hrrealtrr atlaclival thereto. by 1hr nanted insured. the Ixorrouirr. rnorigagor. truilior. ventlec, owner. tenant, warchwscman.cus- todian. occupant. or by the agriiiii of tither ter any uf them or by the happening of any event pcfmiitcd by them or either of them. or their agents. or which tilt-) failed to prevviii. ubether 4occurring before ctr alter the attachment to( this ciulurscenceit. or whether before or alter a toss. Whith untice %lie prisvisionk I,( tile% im)ljcy of invurAnce o.r of any ridirr or endufseenent attached thertto would invalidate or sus- pend the insurance as to the named inseirvil. viccluiling hcrcfrfjiri. however. ally acts or ornissitteiv ter the Lrodcr while exercising active control antl management of lhe proprrlY. 3- In the event of failure of the ijn�ured to llay any premium cor additilatnal forcinlum which shall be or Iticccorne due tinder the terms of this policy eir on account of any chailgr in oictupancy or increase in hazard not permitted by this policy. ibis Company agrees to give written rocake lei the Lender of such rion-payment or premiurn afict si-Aly (60) clays front anil ullhin tinc hundred and Ivestrity (120) days after ilue date of such premium arail it i,. a r(artilitiont of the cleintintiance is( the rights. of the Lermicr hereunder that the Lender when set viltified in % riting by Ibito Cunillany to[ title failtire isr the illstired to pay sluch prViliUnS shall ljay air cause it, The paid the premium time within ten I 10i days following recript a,[ Her Ciiinpany's ileniand in writing thirrchif. If the I,rnflt-r shall decline to pay said premium or additional prcmeum. the rights of Or Lroolcr under this Lensier's Lvss Ilayahle: Endorsement %hall islot toe terminated before ten ( 10) days alter rrceilit of said %irmen ruptie-c by the Lender. 4. Whenever ibis. Company shall pay 14. tile Lender any -buin 1,-r I -is% air ilamage uywlcr ilies pailk-y ancl shall claim that as to the insured no liability therefor exist.. t)ii% Cownj,,city at ib t6ption. may pay, its the Lender the whoic principal sum and interest and other irildebtedneiii due Lr its Warne qltia- L-sist Ow emured. whirther secured ur unbecured. (with refund is( all interest twit accrued I. and this Company, lei the exten- all %Lkis payn test. %hal*. tho-rcuptin rrcet%c a full J%glignmenj and lr2nsfcr. wittwout irccourse. of the debt and all right% an.1 ccurities bel-I *b collateral 11terrio. li thcre be any other insuratistle upult title tol c1cicrilard pfulicrty. this Company shall be liable under this polky as to thet.Leril for the tortsivirtion all such loss or dAmige Ilial the sum hereby insured bears to the entire insurance of similar character on said prortrty Lndcr pe,licies htld by. payable to anal cxprissly consented its toy tile Lerkler. Any Contribution Clause included in any Fallen Build 'ng Clause Mote, er or any Exiciided Cowage Endorsement attached its this contract of insurance is hereby nullified. and also any Contribu- tion Clausi, in arty iiihcr el-r4jr�ement air ridcr attached to this ct"ilract of insurance is herttly nullified except Contribution Clauses for the ctonil-bante with which the insurel ha% rcceiiied reduction in thir rate charged or has received extension of the coverage to include Valard.. 1V1VWf than fivt wilit citmObiaixt with -such Conlivilmlilm Clause is made a Pall of she consideration for insuring silich other hazzTeSSL The I.endrr upain the payment to) it of the full amount W its claim. vai'l stihrogate this Company (pro rata %ilh all other insurers con- tributing lie slaii! payment) to all of thc� Lendcr's rights of contribution under %aid other insurance. 6. This Company rtwri-vis the right lit cancel this policy at any provideel by its wrm,.. Nit in such case this policy shall tontinue iii f-,r.i- F-.r it..- lrnefit elf the Lermler for tvn 1 :0) days after written roolice --( -kept 11 cancellation is received by lilt LgWer and e'ull [lien er;,,e 7. Tlii� Iii-becy shall ri-maito in full Gate arml effect a-. lot the inirrem loll the Lender for a prtind A ten 110; day% after its expiration. unless art aeo rpialole lit-licy in renewal theret-f w ith therruntier payable to tile Lerder in accordance tA;th the term% of this Lender's Loss Payable 1: n4leirscment. shall have been is%urtl by tiollme in%tiran-re rionisliany and atrepted by ther Lesider. a. sh(suld IcKal title I-, and flener6cia? opwrier%hip of any all the pftpWlrly lrdoVffr4l under thi, piolicy borclitine v"ted is% the Lenteler or Its 39M%. in%t1taVrC Wilke thil, 104tiCy shall t4tillitilAW late the term thi'M4 CWT OW betiorfit %4 tlW l.ender twit. in s4tch event. any priviteges mrantlel by this Lendci% Payable- 1: nel,tr%erne-ni which are twit alms granted the in-wred under the ternt% and cimWittions. of this peblicyl and/io uneter tither rplt.r% ter c1nIl.rwnw9i1% atl;k4 lied thrrecra %hall vailt apply lei thc insurance hereunder as respects such property. 9. All nipticts licreire provided to lot itivrn by the Calmillany to The Lerwicir in c-intlectililit with this Policy and this Lender's Loss Payable ErAnrilement shall tier maileil lit or delivered it) the Lrrollrr at iti, office or branch described on the 'firiLl page of the policy. Approved: Board of Fire Underwriters to[ Or Pacifir. California Banicers' Association. Committee on Insurance. 19C93 Beach Boulevard - Huntington Beach. CA 92648 9 (714) 843-0101 * FAX (714) 843-9949 city of Huntington Beach Attni Connie - City Clark office 2000 Itain Street mntington Beach, Ca. 92648 Date: April 1, 1996 Eacrow No.: 8951-C Property Addresst 18051 Joyful Lane, #104, Huntington Beach, Ca 92648 In connection with the above -numbered escrow, we are enclosing herewith the following: city of Loan Documents executed by Buyer certified copy of Buyer and sellers settlement Statements Copy of Evidence of insurance Title Insurance policy to follow in the next couple of days. if you should have any queations regarding the above, please do not hesitate tc contact the undersigned. Thank you for your cooperation in this matter. Sinc rel P 7 &Linda J. C beLl 'or rzcrow off er j " 4- CX d _40 '7_ 4-1- c c ,Ott REDEVELOPINIENT AGENCY OF THE CITY OF HUNTINGTON BEACH LENDING INSTRUCTIONS TO: Tiempo Escrow 19093 Beach Blvd. Huntington Beach, CA 92649 RE: Your Escrow No. 96-02 Preliminary Recitals 1. Peter Margolis (hereinafter sometimes Teferred to as "Buyer") has applied to Redevelopment Agency of the City of Huntington Beach (hereinafter sometimes referred to as "Agency" or "Lender") for a loan of $35,000 to finance the purchase of certain real property known as and located at 1805 1 Joyful Lane, # 104, Huntington Beach, California 92648, which property is hereinafter sometimes referred to as the "Subject Real Propterty." Lender has been advised that Buyer has opened the above -referenced escrow with you for the purpose of completing the purchase of the Subject Real Property. In order to secure performance or fulfillment of the terms and conditions of the loan for which Buyer has applied, and to facilitate the making of the loan if appropriate, Lender, resening the right to amend or revoke these instructions, unilaterally end without prior notice, at any time, hereby authorizes and instructs you as follows: Deposit Clause 2. Lender had enclosed herewith the following: (a) A loan agreement providing the terms and conditions by which the Borrower may participate in the Lender's program to assist low or moderate income households to purchase housing which includes an equity sharhig provision; (b) A promissory note providing for the repayment of the principal amount of S35,000 plus accrued interest on the unpaid balance thereof at the rate of 5 percent (5%) per annum, due upon the thirtieth anniversary of the Loan, or earlier according to the terms and conditions of the note; (c) A second deed of trust, with a rider, conveying the Subject Real Property to City of Huntington Beach in trust for the purpose of securing performance of the obligations evidenced by the above -described promissory note and certain other obligations, to be executed by Buyer for the benefit of Lender; (d) A "Declaration of Conditions, Covenants and Restrictions for Property," in which Buyer agrees that the Subject Real Property shall only be owned by Buyer or other persons or families of low or moderate income available at an affordable housing cost, as those terms are 4,s:G:Agwzhfargolis:LcndirLst'Z"2&96 REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH LENDING INSTRUCTIONS TO: Tiempo Escrow 19093 Beach Blvd. Huntington Beach, CA 92648 RE: Your Escrow No. 96-02 Preliminary Recitals 1. Peter Margolis (hereinafter sometimes referred to as "Buyer") has applied to Redevelopment Agency of the City of Huntington Beach (hereinafter sometimes referred to as "Agency" or "Lender") for a loan of $35,000 to finance the purchase of certain Teal property known as and located at 18051 Joyful Lane, #104, Huntington Beach, California 92648, which property is hereinafter sometimes referred to as the "Subject Real Property." Lender has been advised that Buyer has opened the abovc-referenced escrow with you for the purpose of completing the purchase of the Subject Real Property. In order to secure performance or fulfillment of the terms and conditions of the loan for which Buyer has applied, and to facilitate the making of the loan if appropriate, Lender, Teser%ing the right to amend or revoke these instructions, unilaterally and without prior notice, at any time, hereby authorizes and instructs you as follows: Deposit Clause 2. Lender had enclosed herewith the following: (a) A loan agreement providing the terms and conditions by which the Borrower may participate in the Lendcr's program to assist low or moderate income households to purchase housing which includes an equity sharing provision; (b) A promissory note providing for the repayment of the principal amount of S 3 5,000 plus accrued interest o n the unpaid balance thereof at the rat e of 5 percent (5%) per annum, due upon the thirtieth'anniversary of the LoLr� or earlier according to the terms and conditions of the note; (c) A second deed of trust, with a rider, conveying the Subject Real Property to City of Huntington Beach in trust for the purpose of securing performance of the obligations evidenced by the above -described promissory note and certain other obligations, to be executed by Buyer for the benefit of Lender; (d) A "Declaration of Conditions, Covenants and Restrictions for Property," in which Buyer agrees that the Subject Real Property shall only be owned by Buyer or other persons or families of low or moderate income available at an affordable housing cost, as those terms are 4 s--G:Ag=:161argolis:IATWinst\2128'96 defined in California Health & Safety Code Sections 5093 and 50052.5, and that Buyer shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Lender and the City of Huntington Beach; (e) The disclosure statement setting forth the conditions upon which the Lender will make the Loan; (f) The notice of the Buyer's right to rescind required by the Truth -in -Lending Actl (g) An expiration of rescission period form verifying the delivery of the notice of right to rescind; and (h) The Certificate of Proposed Disclosure, which must be signed by the Buyer, delivered to the current owner for his signature, and when fully executed, copies are to be delivered to Lender, Buyer, and owner. Execution of Loan Instruments and Documents 3. When you have received these instructions, please have Buyer execute immediately all loan instruments and documents that have been deposited with you for execution by Buyer. All of the loan instruments and documents that have been deposited with you for execution by Buyer are to be executed by Buyer on the same date. Buyer must execute all loan instruments and documents that they are required to execute by signing histher/their name(s) exactly as it appears or %%ill appear on the grant deed that will vest title in Buyer and on the enclosed deed of trust. Insurance Requirements 4. We require, as a condition of making the loan, that you hold for delivery to us an original policy of insurance, duly issued and in effect, providing fire and extended special coverage insurance on the Subject Real Property in an amount not less than S 6,000.00 and complying with the follok%ing requirements: (a) The policy shall be issued by an insurer that is admitted to transact insurance business in California; (b) The policy shall either be a continuous policy or a policy with an unexpired term of at least one year, and the premium for the initial one year, following the making of the loan must have been paid; (c) The policy shall name Buyer as an insured and shall contain a lender's loss payable endorsement naming Lender as the second loss payee; 2 4j:G:Agrec:Nfmgolis:LtMinsl\=9'96 (d) The policy shall not have a deductible that exceeds $500. Requirement of Cash Downpayment 5. We require, as a condition of making the loan, that 3% of the purchase price of the Subject Real Property be paid by Buyer, in cash or its equivalent, from Buyer's own funds. Compliance With Truth -In -Lending Requirements 6. We require, as a condition of making the loan, that prior to the disbursement of any loan proceeds you effect compliance with the disclosure and notice requirements imposed by the Federal Truth -in -Lending Act and allow the three-day recission period required by the Truth - in -Lending Act to expire. You shall not request or disburse any loan proceeds unless and until you have complied with each of the following conditions: (a) You shall deliver one copy of the enclosed Disclosure Statement to Buyer at the time Buyer executes the enclosed promissory note, deed of trust and the other enclosed loan documents; (b) At the time a copy of the Disclosure Statement is delivered to Buyer, you shall have Buyer sign another copy of the Right to Rescind Statement, in the space provided for that purpose, to acknowledge receipt of the statement; (c) As soon as Buyer has executed the enclosed loan instruments and documents and you have delivered the copies of the Disclosure Statement and Notice of Right to Rescind and had Buyer acknowledge receipt of the statement, you shall deliver to us the copy of the Disclosure Statement and Notice of Right to Rescind and had Buyer acknowledge receipt of the statement, you shall deliver to us the copy of the Disclosure Statement that Buyer has signed and the copy of the Notice of Right to Rescind that you have retained, and (d) You shall not request or disburse the loan proceeds, or any part of them, until the fourth business day after the date on which the Disclosure Statement is delivered to Buyer or the fourth business day after the date on which the Notice of Right to Rescind is delivered to Buyer, whichever is later. Conditions Precedent to Request for Loan Funds 7. You may request us to deposit the proceeds of the loan with you when, and only when: (a) Buyer has properly executed the enclosed loan agreement promissory note without modification or deletion and you have delivered the original of the executed loan agreement to us; 3 4s:G:Agree:%Iargolis:lzndir&,=S.'96 (b) Buyer has properly executed the enclosed promissory note without modification or deletion and you have delivered the original of the executed loan agreement promissory note to us; (c) Buyer has properly executed the enclosed deed of trust without modification or deletion and it is in recordable form-, (d) Buyer has properly executed the enclosed Declaration of Condition, Covenants, and Restrictions without modification or deletion and it is in recordable form- V (e) You have delivered a true and complete copy of the executed deed of trust and Declaration of Conditions, Covenants and Restrictions to us and are authorized and prepared to record the original deed of trust when you receive and are authorized and prepared to disburse the loan proceeds; (0 You have delivered to us true and complete copies of all of the escrow instructions that you have received from Buyer and the other parties to the above escrow, including any amendments or supplemental instructions, and any assignments or demands that have been deposited with or delivered to you in connection with the escrow; (g) You have delivered to us a copy of the preliminary title report obtained for this transaction; (h) Continental Lawyers Title Company is prepared and obligated to issue in our favor, on the recordation of the enclosed deed of trust, a standard form American Land Title Association lender's policy in the amount of $35,000, insuring that title to the Subject Real Property is vested in Buyer and that the enclosed deed of trust is an encumbrance against the Subject Real Property that is subject and subordinate only to First Deed of Trust; (i) You have delivered to us awritten confirmation verifying the commitment of Continental Lawyers Title Company to issue the policy of title insurance required by these instructions on the recordation of the enclosed deed of trust; 0) You have received in escrow, and are authorized and prepared to deliver to us on recordation of the enclosed deed of trust, an original policy of fire and extended special coverage insurance complying with the requirements set forth in 14; (k) Buyer has deposited in escrow, to be applied toward payment of the purchase price for the Suiject Real Property, the sum of $6,000.00 and has otherwise complied with the downpayment requirements set forth in TI 5; 4 4's:G:Agrce:hfaTgolis:L&MiT&�Mg,'96 (1) You have delivered to us a true and complete copy of a written certification from a licensed structural pest control operator pursuant to Business and Professions Code Section 8519 that the residence and other improvements located on the Subject Real Property are free from evidence of active infestation or infection in the visible and accessible areas; (m) You have delivered to Buyer, in accordance with the requirements set forth in T, 6, one copy of the enclosed Disclosure Statement and two copies of the enclosed Notice of Right to Rescind- 7 (n) More than three full business days have elapsed since the date on which the Disclosure Statement was delivered to Buyer, and more than three full business days have elapsed since the date on which the Notice of Right to Rescind were delivered to Buyer; (o) You are otherwise authorized and prepared, under the instructions you have received from all parties, to close the above-rererenced escrow within 24 hours after the loan proceeds are deposited with you. (p) There shall be no blanks on any documents at close of escrow. Recording of Deed of Trust 8. When all of the conditions precedent to requesting the deposit of the loan proceeds, as set forth in T, 7, have been performed or fulfilled and the loan proceeds have been deposited with you pursuant to your request, you are authorized and instructed to record forthwith the grant deed conveying the Subject Real Property to Buyer, our enclosed deed of trust, our enclosed Declaration of Conditions, Covenants, and Restrictions and to close the above -referenced escrow. You are instructed to record our enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions immediately aftcr you record the grant deed conveying the Subject Real Property to Buyer. Issuance of Title Insurance Policy 9. As soon as you have recorded our enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions, you are instructed to cause to issue and to deliver to us a standard form American Land Title Association lender's title insurance policy in the amount of $35,000, insuring that title to the Subject Real Property is vested in Buyer and that the enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions are encumbrances against the Subject Real Property that is subject to and subordinate only to the First Trust Deed. Conditions Precedent to Disbursement or Loan Proceeds 10. You are authorized to disburse the loan proceeds that we deposit with you when, and only when- 5 4's-.G-.A47"-.Niargolis-I.endir%0,118.96 (b) You have recorded the grant deed conveying the Subject Real Property to Buyer, the enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions; and (c) You have caused to issue and deliver a standard form American Land Title Association lender's title insurance policy that complies vith the title insurance requirements set from in T1 7(h). Requests and Notices 11. The request for the loan proceeds and all other requests and notices directed to Lender shall be in writing and shall be personally delivered or sent by certified or registered mail, postage prepared, return receipt requested to Redevelopment Agency of the City of Huntington Beach, Attn: Agency Clerk, 2000 Main Street, Huntington Beach, CA 92648. Requests shall be deemed to have been made and notices shall be deemed to have been given only when they have been received by the City Clerk. Delivery of Instruments and Documents 12. All instruments and documents that are to be delivered to Lender shall be personally delivered or sent by certified or registered mail, postage prepaid, return receipt requested to Agency Clerk, Redevelopment Agency of the City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648. Instruments and documents shall be deemed to have been delivered only when they have been received by the Agency Clerk. Nonresponsibility for Escrow Fees and Charges 13. Lender shall have no responsibility or liability for any of your escrow fees or charges or for any fees, 6arges, costs, or expenses incurred by you or any other party to the above -referenced escrow in complying with these irstructions, obtaining the loan for which Buyer has applied, or otherwise processing or closing the above -referenced escrow. Sole Instructions 14. These instructions constitute the complete escrow instructions, and the only escrow instructions, of Lender and shall revoke and supersede any prior oral or written instructions you may have received from Lender. Waiver and Deviations from Instructions 15. Lender may waive, or may permit dc,.iations from, any term or condition of these instructions. However, a term or condition of these instructions can only be waived by means of a written waiver signed by an authorized officer, agent, or employee of Lender. Deviation from these instructions will only be permitted if it is specifically authorized in writing by an authorized officer, agent, or employee of Lender. Any purported oral waiver, and any purported oral authorization to deviate from the terms of these instructions, shall be ineffective and invalid. 6 4 s:G:ACrec:%1vV1is:Undin9t\V28 9f Amendments and Supplemental Instructions 16. Lender shall have the right to amend or supplement these instructions at any time without prior notice and without the agreement or consent of any other party or parties. However, these instructions may only be amended, supplemented, or modified by means of a written amendment or supplement that has either been signed or approved in writing by an authorized officer, agent, or employee of Lender. No written amendment, supplement, or modification of these instructions shall be effective or valid unless and until it has been deposited with you and unless and until an authorized officer, agent, or employee of Lender has either signed it or approved it in a signed writing that has been deposited with you. Any purported oral amendment, supplement, or modification of these instructions shall be ineffective and invalid. Revocation and Cancellation of Instructions 17. (a) Lender shall have the right to revoke and cancel these instructions at any time without prior notice and without the agreement or consent of any other party or parties. If Lender exercises its right to revoke and cancel these instructions, you shall return to Lender forthwith, upon demand, any and all funds, instruments, documents, and other items that Lender has deposited with you. (b) If the above -referenced escrow is canceled by any other party or parties, you shall return to Lender forthwith any and all funds, instruments, documents, and other items that Lender has deposited with you. Time Is of the Essence 18. Time is of the essence with respect to each and every provision of these instructions and in the performance, occurrence, Mfillment, or satisfaction of each and every term and condition of this escrow and these instructions. 7 4's:G:Agree:,%Iargolis-.LzMinsfl'28'96 Request for Acknowledgment of Acceptance 19. Please acknowledge your receipt and acceptance of these instructions, and your agreement to hold and dispose of any funds, instruments, documents, or items that Lender deposits with you in accordance with the terms and conditions of these instructions, by signing the acknowledgment and acceptance set forth below on the enclosed copies and returning one signed copy to Lender. Dated: LENDER V /�Vo David Biggs Economic Development Director Redevelopment Agency of the City of Huntington Beach Acknowledgment and Acceptance by Escrow Holder Tiempo Escrow acknowledges receipt of the foregoing instructions and the items listed in Paragraph 2 of those instructions. Tiempo Escrow agrees that any funds, instruments, documents, or other items deposited by the Redevelopment Agency of the City of Huntington Beach shat! be held and disposed of in accordance %&ith the terms and conditions of the foregoing instructions and such amendments or additional instructions as may be submitted by the Redevelopment Agency of the City of Huntington Beach. ESCROW HOLDER Tiempo,E sprow B LINDA J. 7cAMPB-ELL/"'--" [typed name] ESSMOW OFFICER _[title] 4.s:G:Agrcc:,Ntugolis:Ltndinst\1'2'9'96 L-0 CITY OF HUNTINGTON 13EACH I-L'9 Pcteoxm.KmtNG,,x,eEAr-KcALFokmA92,.4a DATE P.O. NUMBER GROSS AMOUNT IMSCOUNT NET AM04JNT 03-07-9E PX: Pater Margois $35,000.00 $35,000.0 0 18051 Joyful In. #104 H=tington Bea�hr CA. Escmi # 8951-C ,TLs 1$35,,000.00. 1 1 $35,000.00 -CITY OFHUNTli\C,,70NBEACH-:::;'2==------- j, #& '7' NUNWR -.7. ROL BOX 190 HUNTINGTON SEACK CALIFORNIA 9264's 3 52 8 56J PAY TO r�E ORDER OF. - — DATE f&WBER - KET AW4XJNr '.77-Tiempo'Escrowl Inc. .03-07-96 352856 *$35,000.00 N BE,�CH _,PTY OF HUNTU)WO' UNLESS PRESENTED FOR EWASWENr m VATHIN 9 j DAYS FROM DATE OF LeSAX 'SANWA BANK CAUFORNIA HUNI=TCN BEACH OFF)CE .81 VARNER AVE NUE HLPMIIGTONSEACKCA92647 3 5 2EI 5601 1: 12 200 35 161: 2094%,00 20990':-.-. �j