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MURCH, GREGORY S. - 1996-08-05
RECORDING REQUESTED BY: Y AND WHEN RECORDED MAIL TO: City of Huntington Beach Economic Development Department 2000 Main Street, PO Box 190 Huntington Beach, CA 92648 Project: Pacific Park Villas Unit: 18051 Joyful Lane, #102 Recoi.U:d in Official Records, County of Orange Ton- is AYI Clt fP Retarder ll�l!'I II!illl`II'i!`l!!III11il.III IIIII!!Il;liilii11►11!!I 10.00 2003001,1322.0910.42a1Yi 091'16103 214 1)0 RW 3 0.00 0 00 0.00 0.00 4.00 0.00 0.00 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 GREGORY SCOTT MURCH, A SINGLE MAIN, Trustor, and recorded in the official records of Orange County, California, on AUGUST 21, 1996 as Instrument No. 19960429654. DESCRIPTION: See "Exhibit A" for full legal description of property commonly known as 18051 Joyful Lane, #102, Huntington Beach, CA 92648. Date:! September 2, 2003 David C. Biggs Director of Economic Development City of Huntington Beach 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 common Area defined in Declaration referred to below and described in the condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of Official Records of Orange county, over Lot 1 of Tract No. 14828, in the'city of Huntington Beach, county of Orange, state of California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the county Recorder of said county. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: unit No. consisting of certain airspace and surface elements, as shown and described in the condominium Plan referred to in Parcel 1 above. Parcel 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. Parcel 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and assigned on the Plan. CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California ss. County of On /len/ 0% before me, �P�h �l fl , �VCs► [� P ate •---� , Name nd Title of Officer (e.g., `Ja ,Notary Public') personally appeared " •' ; .. . •. a r,r V 'personally -known tome.. .auideeee to be the personj,.dj whose name(?'f fi4aFe- subscribed to the within instrumen and acknowledged to me thatgsh�executed the same in 04eir- authorized capacity(ies), and that by i de lthal signature, ey on the instrument the person(os or the entity upon behalf of which the person(a) acted, executed the instrument. WITNESS my hand and official seal. �. Signature of Notary c OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: - ,2: `o 3 Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed bySigner Signer's Name: U ❑ Individual ❑ Corporate Officer — Title(s): _ ❑ Partner — ❑ Limited ❑ General ❑ Attorney -in -Fact Trustee ❑ Guardian gr Conservator Other:-r Ir�vr 4� Signer Is RIGHT THUMBPRINT OF SIGNERA IA 0 1999 National Notary Association • 9350 De SotoAve., P.O. Box 2402 • Chatsworth, CA 97313-2402 • www.nationalnotary.org Prod. No. 5907 Reorder: Call Toll -Free 1-800-876-6827 °�� CITY OF HUNTINGTON BEACH Inter -Office Communication Economic Development Department DATE: June 12, 2000 TO: Gus Duran, Housing/Redevelopment Manager FROiII: Joyce DeKreek, Housing/Redevelopment Consultan SUBJECT: Research on Loan Forgiveness, I" Time Home -Buyers Program Redevelopment Set -Aside, $400,000 and Redevelopment Set -Aside, $750,000 I have reviewed our records regarding funding of I" Time Home -Buyers Program to determine the names and amount of assistance which benefited the applicants from the $400,000 in Redevelopment Set -Aside funds approved by the Redevelopment Agency (RDA) at their November 1,1993, meeting and from the $750,000 in Redevelopment Set -Aside funds approved by the RDA for the Pacific Park Villas at their February 6, 1995 meeting. The Redevelopment Agency approved nine applicants from the $400,000 allocation in conjunction with the City's CDBG 1't Time Horne -Buyers Program and one additional applicant for the RDA I" Time Home -Buyers Program only. 'The RDA portion of these loans are Bastou ($25,000), Dieckmeyer ($23,000), Grifl'en ($25,000), Hoang (S23,000), Lawson ($23,000), Melvin ($35,000), Otto ($23,000), Quick, S. ($16,717), Quick, T. ($25,000), Rivera H. (S23,000). Quick, T. withdrew from the CDBG loan but maintains the RDA loan. These loans total $243,717. The Redevelopment Agency approved fifteen (15) applicants'from the $750,000 allocation at Pacific Park Villas (PPV) to participate in the Redevelopment Agency V Time Buyer Program. The names and amounts are (Carrillo ($35,000), Forchione (S35,000), Heckethorn ($35,000), Hosseinali ($35,000), Hocker ($35,000), LaATence ($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 (S35,000), Margoles ($35,000). These loans total $525,000. Four loans (MelkersonUriiack, Ojeda, ReneAVhite, Stratton), previously approved by RDA were not funded. OfoymAntemw=Recowve .doe w One loan (Wallace) was assumed by another qualified buyer (Stay).-. Two applicants have paid their loans: Melvin, paid off his RDA loan 10/21/1997 in the amount of $40,794.31 and Hoang, paid off his RDA loan on 12/21/1999 in the amount of $47,208.80. A check in the amount of $4,116.57 was issued to Mr. Ho_ ang for overpayment, reducing the loan repayment to $43,092.23. These loans accrue simple interest at S%, due and payable upon sale to a non qualified buyer and has shared equity. Cc: Connie Brockway, City Clerk Paul D'Alessandro, Deputy City Attorney David Biggs, Director, Economic Development John Reekstin, Director of Administrative Services Dan Villella, Director of Finance Jake Rahn, Administrative Services Hank Reveles, Sr. Accountant Joyce de Kreek, Economic Development Steve Holtz, Development Specialist Gtoycdlntermemo Reconvey.doc t PACIFIC PARI: VILLAS (S750,000 — RDA) 95-01 (2-1-95) Carillo, Ann S 35,000 7861 Happy Drive, # 102 RDA 12-19-94 95-02 (2-1-95) Lawrence, James and Jeanette $ 35,000 18051 Joyful Lane, 916 RDA 12-19-94 95-03 (2-1-95) Wong, Wesley Chi $ 35,000 7681 Happy Drive, #202 RDA 12-19-94 95-04 (2-1-95) Hocker, Christopher/Va dereb, GayleS 35,000 7681 Happy Drive, #101 RDA 12-19-94 95-06 (4-12-95) Rivera, Victor/Burgess, Debra $ 35,000 18061 Joyful Lane, 4104 RDA 4-3-95 96-01 (1-24-96) Heckethorne, Sean & Jacquelyn $ 35,000 7871 Happy Drive, # 102 RDA 1-16-96 96-02 (3-7-96) Margolis, Peter $ 35,000 18651 Joyful Lane, #104 RDA 3-4-96 96-03 ( Weinfeld, Julie $ 35,000 18061 Joyful Lane, 9205 RDA 4-1-96 96-04 (7-17-96) Peltier, Edward $ 35,000 7871 Happy Drive, #201 RDA 7-15-96 96-05 (8-7-96) Wallace, Barbara Jo S 35,000 18051 Joyful Larne, #205 RDA 8-5-96 96-06 (8-7-96) Murch, Gregory $ 35,000 18051 Joyful Lane, #102 RDA 8-5-96 97-01 (1-29-97) Krueck, Deborah $ 35,000 18061 Joyful Lane, #101 RDA 1-21-97 97-02 (4-30-97) Qsterhoudt, Robert and Kathy S 35,000 18061 Joyful Lane, #102 RDA Gfoycefttamcmo Reconvey doc . .. -.. �4:;� c�FK �t r�ir._ •.I`- t� - y ,ate. 1 �� �f - d3 �t�•t .,,'�-��*„iiy ,yam "'ra �L.'-7 .:'[' -;ar_ •�• = tll -- -� ti _r ti_ -.i1 �`a -lr .' .✓ll •i"�s' - ' s .. eta •.�`3,_ e 97-03 (5-14-97) Hosseinali, Faroukh $ 35,000 18061 Joyful Lane, #201 RDA ' 97-04 (7-23-97) Forchine, Richard S 35,000 18051 Joyful Lane, #201 RDA 7-21-97 In TIME BUYER ASSISTANCE ($400,000 RDA) 94-4 (2-11-94) Lawson, Sally $ 23,000 409 Utica Avenue #A-1 - (RDA 1-18-94) 94-5 (2-11-94) Quick, Shauna $ 16,717 409 Utica Avenue #C-32 (RDA 1-18-94) 94-6 (2-11-94) Diecluneyer, Barbara S 23,000 409 Utica Avenue#B-21 (RDA 2-22-94) 94-8 (2-11-94) Otto, TJShorb R. - - $ 23,000 409 Utica Avenue 9A-7 (RDA 1-18-94) 94-10 (2-11-94) Hoang, Tam $ 23,000 409 Utica Avenue #D•37 (RDA 2-22-94) 94-11 (5-18-94) Bastou, Valerie $ 25,000 409 Utica Avenue #D-43 (RDA 5-18-94 94-12 (5-18-94) Quick La Reine, Teresa $ 25,000 409.Utica Avenue #A-9 (RDA 5-18-94) 94-13 (6-23-94) Melvin, Patrick $ 35,000 409 Utica Avenue #D-39 (RDA 6-20-94) 94-14 (7-27-94) Rivera, Hector & Iciar $ 25,000 409 Utica Avenue #A5 (RDA 7-18-94) 94-17 (10-4-94) Griffen, Olga Christina S 25,000 409 Utica Avenue #C-23 (RDA 9-19-94) S 243,717 4loycdInlermemo Reconvey.doe 11 • J1 MuimNGTON BEACH OFFICE OF THE CITY CLERK CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION TO: 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 DATE: 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 Pacifto Park Villas Loan No. Name Property Address : Amount 95-01 �r Carillo, Ana _ 7861 Happy Drive #102 92648 - 35,000 _Date _ 113/95 95-02 Lawrence, James/Jeanette 18051 Joyful Lane #101A 92648 _ 7861 Happry Drive #202 92648 _ _ _ 35,000 T 35,000 — 1/3/9_5 113/95 95-03 Wong, Wesley 95-04 95-06 96-01 _ k/ Hocker, Christopher & Vandereb, Gayle Rivera, Victor &Burgess, Debra Heckethome, 5eanlJacquelyn 7861 Happy Drive #101 92648 18061 Joyful Lane #104 92648 7871 Happy Drive #102 92648 35,000 35,000 _35,000 35,000 1/3/95 - 413195 _ 1/16/96 - -_ 3/4196 96-02 Margolis, Peter —� _ 18051 Joyful Lane#104 92648- -_ 9"3 Wienfeld, Julie _ 18061 Joyful Lane #205 92648 35.000 4/1/96 96-04 96-06 _ 97-01 - Peltier, Edward - Wallace, Barbara Jo Murch, Gregory s. _.. _ ........_ ..... ._ Krueck, Deborah J. 7871 Happy Drive #201 92648 18051 Joyful Lane #205 92648 18051 Joyful Lane #102.92648 18061 Joyful Lane #103 92648 18061 Joyful Lane #102 92648_ 18061 Joyful Lane #201 92648 18051 Joyful Lane #201 92648 '- 35,000 35.000 35.000 - 35,000 7/15196 815/96 _ _ 815/96 11_21197 r' - 0/97 a13 97-02 Osterhauelt, Robert/Kathy 97-03 - Hosseinall, Paroukh 35,000 35,000 - 515/97 97-04 Torchlone, Richard 7/1/97 0 Fie CITY OF HtWTINGTON BEACH Inter -Department Communication TO: Gus Duran, Economic Development FROM: Gail Hutton, City Attorney DATE: June 1,1999 SUBJECT: Iietermination of Loan Forgiveness ILLS 99-359 INDEX: BACKGROUND You have asked for a determination of whether several loans made by the City of Community Development Block Grant funds, for the first time home buyer down payment assistance program, are forgivable. ISSUE Are the nine loans forgivable? ANSWER Yes, if they were funded with the first $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: 10/25193: The City Council approved sample loam 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). 1 41s:4-99%lemos:Duran527 11115/93: The City Council was requested to approve and additional S 100,000 in CDBG funds for the program. The Council deferred the item to December 6, 1993. (RCA attached hereto as Attachment 2). 12/6/93: The City Council approved three more participants in the original program: Michelle Schmaderer, Carol Kanarski, and Nicholas Kormeluk. The amounts of their loans are not listed., (RCA attached hereto as Attachment 3.) 12/20/93, Item E-17: The City Council approved an additional participant in the program, David Dixson, for the amount of S 10,000, and increased the amount for participant Nicholas Kormeluk from $8,600 to S10,600. (RCA attached hereto as Attachment 4.) 12/20/93, Item F-2: The City Council approved an additional $100,000 for the program, but changed the program to require repayment of these additional funds. There are rivo important attachments to this RCA. The first is entitled "Approved Participants," and lists the following six participants: Culiaciati, Taban, Sutherland, Schmaderer, Kanarski, and Kormeluk, in the total amount of S61,952? The second important document attached to this RCA is the Iist of "Pending Participants." It shows eight more participants in the total amount of $59,100. It is not determinable from this RCA whether these persons were intended to be in the grant program or the loan program, and we do not know when, if ever, these participants were actually approved. 1/3194: The City Council approved three more participants in the original, non -repayment program: Judy Young, Treva Love, and Ellen Ommondson, in the total amount of S31,000. When added to the previously committed amount of $73,952, the total amount of funds committed is S104,952. This exceeds the original S100,000 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 S100,000 set aside for the grant program. The total amount of loan funds used is less than S5,000. (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 Ioans made to Culiaciati, Taban, Sutherland, Schmaderer, Kanarski, Dixson and KormeIuk 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 Ornmondson. 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 $31,000. Thus, a small portion of the funds used for these Note that an attachment to this RCA lists ten approved participants. Since the dates listed are after the Council meeting of 12/6193, we believe that this list has been erroneously added to the 12/6/93 RCA. 2 Please note that earlier during the same meeting, the Council had also approved David Dixson for S 10,000, and an additional $2000 for Kormeluk. Thus the amount committed from the original S 100,000 was actually S73,952. 2 1Vs:4-99%1eims-.D mn527 4 , participants must have come from the second 5100,000, which the Council appropriated with the condition that the loans be repaid, not forgiven. CONCLUSION - There are two conflicting Council actions. The Council's intent was to include participants Xoung, Love and Ommondson in the original, forgivable loan program. However, it appears that 2 portion of the funds actually used for the loans to Young, Love and Ommondson were from the second appropriation of funds, which included a repayment condition. Therefore, we recommend that the Council clarify this conflict by approval of an RCA that forgives the loans made to Young, Love and Ommondson. Gail Hutton City Attorney 4Js:4-99Memos:DuranS27 3 IN Council/Agency Meeting Held: 5'-17-99 Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied City Clerk's Aignature C- 8-WcA G_n_/ a 4AVA14., A;ft'tC .r Council Meeting Date: May 17,1999 I Department ID Number: ED 99-29 I CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY_ MEMBERS SUBMITTED BY: RAY SILVER, Executive Directo >E _ J PREPARED BY: DAVID C. BIGGS, Economic Development Director SUBJECT: Authorize the Transferability of 15 Pacific Park Villas Down Payment Assistance Loans — Approve and Authorize Execution of Documents [statement of issue, Funding Source, Recommended Action, Alternative Action(s), Anatysts, Environmental Status, Attachment(s) Statement of Issue: Currently, the down payment assistance loans made by the Redevelopment Agency for Pacific Park Villas must be individually approved by the City Council. In order to facilitate transfers of these loans, staff is requesting that the Redevelopment Agency establish procedures for administrative approval of these transactions. Fundin Source: None as a result of this action., Recommended Action: Motion to: 1. Authorize the Executive Director and the Agency Clerk to execute on behalf • of the Redevelopment Agency any and all documents necessary to transfer to new low and moderate -income homebuyers the Down Payment Assistance Loans made by the Agency at the inception of the Pacific Park Villas project. See Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be approved as to form by the Agency Counsel). 2. Authorize the Executive Director and Agency Clerk to execute on behalf of the Redevelopment Agency any and all documents necessary to subordinate or to reconvey the Agency loans (notes and deeds of trust), as these home owners refinance, sell their homes or meet their loan obligations, as stated in their notes and deeds of trust. See Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be approved as to form by the Agency Counsel). REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: May 17,1999 DEPARTMENT ID NUMBER: ED 99-29 Alternative Actions : 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 Pare 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: NIA Attachments}: 1. 1 City Attorney's Office Memorandum. 2. l Sample Loan Documents. 3. List of Down Payment Assistance Borrowers at Pacific Park Villas. RCA Author. Gus Duran X1529 RCAPPV.t70C -2- 05/05199 9:34 AM Citv Attornev's Office Memorandum ATTACHMENT #1 CITY OF HUNTINGTON BEACH Inter -Department Communication TO: David Biggs, Director of Economic Development FRO,NI: Gail Hutton, City Attornev DATE: April26, 1999 SUBJECT: Wallace Loan Documents You have asked several questions concerning the Wallace loan documents. I. Is the loan transferable? A. Yes, with the Agency's prior written consent. See Section 18 of the Loan Agreement. 2. What are the income limits for purchasers? A. No greater than 120% of median income (moderate income) pursuant to Section 9 of the Loan Agreement. 3. Does the new buyer need to meet the income requirements of the CC&Rs? A. Yes. 4. Is the Equity Share payable if the buyer qualifies under the CC&Rs? A. Yes. 5. Can the interest be forgiven if the property's fair market value does not exceed 5% per year? A. No, unless the Agency approves forgiving the interest. 6. Should the Equity be calculated minus the selling expenses? A. No. Please contact me if you have any further questions. r Gail Hutton City Attorney 4'sA-99Memos $ iggsa26 WA 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 Home 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 oKmers 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, Air. Bob Osterhoudt 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 Iives when they desire, but we are in need of a legal opinion regarding the following issues: 1. Is the loan made to Ms. Wallace, which is similar to those made to the other buyers of Pacific Park Villas, transferable? 2. What are the income limit requirements for the purchasers of these homes when a property o,.4ner sells his/her home? (See attached 1999 Orange County Affordable Housing Worksheet issued -`by the law firm of Stradling, Yocca, Carlson & Rauth.) 3. Does a new buyer need to meet the income requirements established in the CC & R's? V20199.Gus Dura0fou4mWALLACE 4. Is the "Equity" payable if the sellers sell their home to a buyer that meets the income requirements established in the Note and the CC&R's? S. Can the interest be forgiven if the property's "fair market value" does not exceed S% per year? 6. Should the "Equity" be calcu'.ated minus the selling expenses (See Section 4A of Loan Agreement)? We are requesting an immediate opinion on these issues, as Ms. Wallace has already purchased a home in fhe State of Washington and has a pending sale of her property in Huntington Beach in the works, subject to the Agency's determination on these issues. At the moment, her pending sale is being held up because neither the seller, nor the buyer knows 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 documervation. 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. Lendina Instructions S. Certificate of Proposed Transferee 6. Declaration of Conditions, Covenants and Restrictions for Property 4R0194:Gus Duran1faudey.WALLACE Sample Loan Documents ATTACHMENT #2 LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 5-Ef day of 19� by and between BARBARA JO WALLACE ("Participant") and the RED VELOPUiENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as 18051 Joyful Lane. 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 Safety Code Section 50093. C. Participant has represented to the Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. The Agency desires to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach (the "City"). E: The Agency wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuaVe consideration the parties agree as follows: 1. AQ:ena Loan. The Agency shall loan to Participant (the "Agency Loan") the amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note and the Disclosure Statement for ti:e Program. The Agency Loan shall be paid to the seller of the Property (the "Setter") by the Agency through deposit of the Agency Loan proceeds into escrow with TIEMPO ESCROW, INC., A CAL IEWNIA CO POWICH (the "Escrow Agent") (Escrow No. 9442—e ). The Agency shall direct the Escrow Agent to apply the proceeds of the Agency Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the Agency a Loan Agreement Page 1 of 8 4410:4.96-Agrcc: W aRacc-1Q3"38rce 111-s 96-323 WN.1% promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple interest at five percent (5%) per annum, due in thirty (30) years and payable upon the earlier sale, refinancing or transfer of the Property, substantially in the form of the "Promissory Note" attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to the Agency a second deed of trust encumbering the Property which shall secure the Promissory Note (the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated herein. 2. Maintenance of Propert . Participant shall maintain the improvements on the property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowpees 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 Refinancin . Participant agrees to notify the Agency not less than thirty (30) days prior to (i) the sale or transfer of the Property or (ii) any refinancing of the lien of the Agency Deed of Trust or any lien to which the lien of the Agency Deed of Trust is subordinate (the "First Mortgage"). The Agency Loan and all interest accrued thereon shall be due and payable upon (i) such sale or transfer, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for an amortization period longer than the loan secured by the First Mortgage, or (iii) Participant is no longer an occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan. 4. Equity Sharing. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency concurrently with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: I. 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%) 4le4j:4-96-Agrcc: Wallacc:loanagrec RI S W-523 7/26196 S. After eighth anniversary but prior to ninth anniversary: 6. After ninth anniversary but prior to tenth anniversary: 7. After tenth anniversary but prior to eleventh anniversary: g. After eleventh anniversary but prior to twelfth anniversary: 9. After twelfth anniversary but prior to thirteenth anniversary: 10. After thirteenth anniversary but prior to fourteenth anniversary: 11. After fourteenth anniversary but prior to fifteenth anniversary: I2. After fifteenth anniversary but prior to sixteenth anniversary: 13. 'After sixteenth anniversary but prior to seventeenth anniversary: 14. After seventeenth anniversary but prior to eighteenth anniversary: 15. After eighteenth anniversary but prior to nineteenth anniversary: 16. After nineteenth anniversary but prior to twentieth anniversary: 17. After twentieth anniversary but prior to twenty-first anniversary: 18. After twenty-first anniversary but prior to twenty-second anniversary: 19. After twenty-second anniversary but prior to twenty-third anniversary: Loan Ag7eement Page 3 of 8 forty two percent (42%) forty percent (40%) thirty-eight percent (38%) thirty-six percent (36%) thirty-four percent (34%) thirty-two percent (32%) thirty percent (30%) twenty-eight percent (28%) twenty-six percent (26%) twenty-four percent (24%) twenty-two percent (22%) twenty percent (20%) eighteen percent (18%) sixteen percent (16%) fourteen percent (14%) 4'4%0:4-96-Agec: W a [R acc:loanagree A US 911-523 WNM 20. Auer twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. Auer twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: 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: four percent (4%) two percent (2%) one percent (1%) zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. . The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. Loan Agreement Page 4 of 8 ,C-4Xi:4-96-Agrce: W allacc:loanagrce It Us 96-523 7R6►96 A. Equity Share Upon Sai"r. 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 ar. appraisal of the Property. The Agency shall appoint a certified, independent,'.appraiser to conduct an appraisal of tl:e Property, at Participant's expense, and Paff`ieipant agees Ftat it 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 stall be terminated upon the Participant's repayment of the Agency Loan and payment of the Equity Share Amount as provided in this Agreement. C. Eypiration 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 tHs 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. ccu anc Standards. ndards. 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 Sen4cin . The Agency may contract with a private lender to originate and service the Agency Loan. S. Participant Financin . Participant shall obtain financing for the purchase of the Property from the Southern California Home Financing Authority or a reputable institutional lender approved by the Agency (the "Lender"). The lien secured by the Agency Deed of Trust Loan Agreement Page 5 of 8 4's'.G:4.96•Agrcc: W allace.loanagrec ra S 96-525 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 three percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 9. Covenants. - Participant and the Agency shall execute and have recorded in the Official Records of Orange County, California, a "Declaration of Conditions, Covenants and Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated herein, in which Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health & Safety Code Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Agency and the City. 10. 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 so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required go protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 13. Documents. Participant is aware that the Agency has prepared certain documents to implement the Program and secure repayment of the Agency Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Agency Loan: Loan Agreement Page b of 8 4VNG:4.96-Agr":W allacc:louugree rtl S 96.523 7/2G196 (a) . Disclosure Statement; (b) Promissory Note; (c) Agency Deed of Trust; and (d) Declaration of Conditions, Covenants and Restrictions of Property.. Participant agrees and acknowledges that the Agency Deed of Trust and the Declaration of Conditions, Covenants and Restrictions of Property shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. 14. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the Agency shail'from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Agency Loan. 15. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. .16. Amendment of Agreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 17. AgencyAgengy May Ass i n. Agency may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 18, Participant &signment Prohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 19. Entire Aere, ement. 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 -96.Agree:Wallace:loanagrec R S 96.523 7l26M 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. "PARTICIPANT" Date: AUGUST 13, I996 119 By: Printed Name: Date: , 19 By: Printed Name: Date: , 19 By: Date: r�u.ar 19 ATTEST: Agency Clerk REVIEWED AND APPROVED: Executi e irector Printed Name: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: �% Chairman APPROVED AS TO FORM: r•� ty �sc1w. Agency Counsel ,INITIATED AND APPROVED: Aw C Director of Economic bevelopment Loan Agreement Page 8 of 8 4%s\0:4-96•Agrce:Wallacc:lomagrce RIS 96-323 W2606 EXHIBIT A . LEGAL DESCRIPTION OF -PROPERTY PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to ! all of the Common Area defined in Declaration referred to below and described in the condominium Plan (-Plan-) for Lot I of Tract 110. 14828, which Plan was recorded on August '. 25, 1994 as Instrument No. 94-0525335 of official. Records of orange County, over Lot 1 of Tract No. 14828, in the city of Huntington Beach, County of orange, state of California, as per slap filed in Book 706, Pages 27 to.29 of tiiacellaneous Haps, in the office of the County Recorder of said county. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon . substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of needs, and in various other deeds of record. PARCEL 2: unit tto. 22 consisting of certain airspace and surface elements, as shown and described in 1 the Condominium Plan referred to in Parcel 1 above. Parcel 3r 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 Part: Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of official Records. Parcel. 4% Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas:defined, depicted and assigned on the Plan. Exhibit A to Loan Agreement Page I of 1 A`s`.Agrec:Af srgo�is: �:xl�ibilAW7RGIhG r EXHIBIT B PROMISSORY NOTE S 3 5 000.00 AUGUST 5TH 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. 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 (5.00010) per annum, the accrued interest on the Note Amount shall be forgiven by the Holder. 2. Maturity Date The balance of all unppaid principal and accrued interest shall be due and payable on _ AUGUST 5T! l , 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 transfers title to the Property; or I (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 4V14-96Agrcc: W&111Cc:L• xhib4B = 96-523 7126196 4. Security for Note This Promissory Note shall be secured by a second deed of trust encumbering the Property (the "Agency Deed of Tnist"), executed by Maker as Trustor in favor of Holder as Trustee. 5. Prepayment of Note Amount Maker may prepay to Holder the full Note Amount, together with simple interest thereon at a rate of five percent (5.00%) per annum, at any tame prior to the due date of the Note Amount. 6. • Loan Aaeement 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 AUGUST 5, ! 9 (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 riot 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 Mqy Assign Holder may, at its option, assign its right to receive payment under this Promissory Note without necessity of obtaining the consent of the Maker. S. Maker Assignment Prohi ite In no event shall Maker assign or transfer any portion of this Agreement without the prior express written consent of the Holder, which consent may be given or withheld in the Holder's sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan proceeds hereunder. 9. Attorneys' Fees and ost 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 -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 tame for any default or payment. "Exhibit B" to Loan Agreement Page 2 of 3 4`s A -9 G Agr ec: W a 11 ace: Cxh ibW 1 RLS 94.323 7P20M, 11. Successors Bound - This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. "MAKER" Printed Name: SARBAM Jo MLAI By: Printed Name: By: Printed Naive: "Exhibit B" to Loan Agreement Page 3 of 3 4 W-9GAgrce:Wallace:RxhibW3 KLS 9G•323 ?!2Gl7G r RECORDING REQUESTED BY ) AND WHEN RECORDED RETURN TO: } } Redevelopment Agency of the City of ) Huntington Beach ) 2000 Main Street ) Huntington Beach, California 92649 ) Attn: Agency Clerk ) (5pKe Above This Lu:e For fte=dces Use This document is exempt from recording fees pursuant to Government Code Section 6103. DEED OF TRUST WITH ASSIGNMENTS OF RENTS THIS DEED OF TRUST is made this 5TEI day of AUG. , 19 96 , by and among BARBARA JO WALLACE, whose address is 18051 Joyful Lane, 4205, Huntington Beach, California (the "Trustor") and THE CITY OF HUNTrNGTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92649. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Safe, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a) all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. "Exhibit C" to Loan Agreement Page I of 15 4WO:4.96agrca: W n11ace:L• xhibitC RLS 96-523 7/2606 A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of Thirty-five Thousand Dollars (535,000.00) with interest thereon according to the terms of a Promissory Mote 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 AtxUs-r 5 , 19 96 , insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor -in -interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: 1. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon, not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry -rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; "Exhibit C" to Loan Agreement Page 2 of 15 41s\0:4.963grec: W allace.Ex1►ibhC K US 96-323 7126/96 (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (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 furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination "Exhibit C" to Loan Agreement Page 3 of 15 MAGA-9Gagrcc: Wallace:CxhibitC RLS 9G-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 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\G:4-96agrcc: W ql lace: GxhibitC RI S 96-523 7/26/96 V �.W) expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorneys 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 othenvise 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 ofTrust. 6. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing tl-.e same, immediately due and payable, and no waiver of this right shall be effective unless in writing. S. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does ret waive its right either to require prompt payment when due of all ,urns so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Nete 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 emount of the indebtedness then or "Exhibit C" to Loan Agreement Page 5 of IS 41s1C,:4-96agrcc: W aT1acc:EWtbi(C RLS 96.513 7►24M V 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 malting of any map or plat thereof, (c) join in granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re=assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them)- 13. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by'this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Trust Deed, or cause Beneficiary to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Beneficiary confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents,, issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustoes right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver "Exhibit C" to Loan Agreement Page G of 15 4\slC:4-9Gagrce: W allace:LxltibitC R S 96.523 ?I26t9G to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, driforce 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 sach 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, ir: 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 sLbordination 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 othenvise 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's1G:4-96aucc:«s1Iscc:lixhibitC RIS 96-523 7,76/96 Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have "Exhibit C" to Loan Agreement Page 8 of 15 4\s1G:4-96 agrce: W allacc: CxltibitC RLS 96-523 7/26/96 been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminin.- and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on January 1, a written operational report. Such operational report shall contain a brief but complete statement of the year`s income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 20. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in 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 casualty insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed orrrust 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 Pro r issory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to "Exhibit CO to Loan Agreement Page 9 of IS 4WGA-96agreeMal I ace:ExhibitC RLS 9G•523 7/2MG 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 shoving a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR: By.;-- S") BAPMARA Jo WALLACE By: By: APPROVED AS TO FORM: Agency Counsel -.f}c- H "Exhibit C" to Loan Agreement Page 10 of 15 4\sIG:4.96a&rcc: Wal lace:CxhibitC RiS 9G-523 712W6 RIDER TO DEED OF TRUST FIRST TIME H41,IEBUYER DOWN PAYMENT ASSISTANCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUGUST 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 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 tht 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 die determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: I . Prior to fifth anniversary of the Agency Deed of Trust: fifty percent (50%) 2. After fifth anniversary but) prior to sixth anniversary: forty-eight percent (48%) J. After sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: forty-four percent (44%) 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) 8. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9. After twelfth anniversary but prior to thirteenth anniversary: thirty-four percent (34%) "Exhibit C" to Loan Agreement Page I I of 15 4' f-G , •9 G i grec: W a! f ace: Lxl i i b i L C RLS 96.513 116/95 OIN 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%) 11. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) I2. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but - prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary. twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but . prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. After twenty-fourth anniversary but ' prior to twenty-fifth anniversary: ten percent (10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (40/.) "Exhibit C" to Loan Agreement Page 12 of IS CAOA-9Gavee:walIac :rxhih*4 RIS 9G-323 ?l2"6 25. Ater twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Sellees 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 tvith 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 fallowing to the Agency: W an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's interest in the Property, exclusive of escrow fees, title insurance costs, brokers commissions, loan fees or any other closing or transaction costs. The percentage factor so determined is the "Applicable Factor." If the Property is sold, an amount equal to the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the amount received by Trustor as the Property sale price (as - reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. If the Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is subordinate is refinanced for a loan amount which is in excess of the then current loan balance or extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the appraised value of the "Exhibit C" to Loam Agreement Page 13 of 15 4'elG:4-90agcc:wailace:Cxhib7i1C RiS 96.523 7126n(; Property as of the time of such transfer or refinancing. Dated: AUGUST 13, 1996 APPROVED AS TO FORM: Agency Attorney 7 — z ,fj; k. TRU STOR 64-1 A- BARBARA 36 WALLACE "Exhibit C" to Loan Agreement Page 14 of 15 4V\C -.4-96agrcc:Wallace.l:AibitC R LS 96-523 71206 IUDER TO DEED OF TRUST UPERIORITY QF FIRST LENDER DOCUMENTS (if required by the First Lender) This Deed of Trust is subject to the terms and Conditions of that certain Loan Agreement dated AUGUST 5 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 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 ex;cuted by Trustor in favor of the First Lender as security for the First Lender Note, or any subseg1:nt First Lender deeds of trust hereafter recorded against the property described herein. Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of one of the following events: 1) Title is acquired by the First Lender or another party upon foreclosure of a deed of trust by the First Lender. 2) Title is acquired by the First Lender or another party by a deed in lieu of ' foreclosure of the First Lender deed of trust. Dated: AUGUST 13, 1996 APPROVED AS TO FORM: Agency Attorney TRUSTOR: BARMM JO LACE "Exhibit C" to Loan Agreement Page 15of15 4'e,(3:4.9Gagrcc: Wsllacc:Ii)diibilC RLS 9G-323 INUMI G V CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA SS. COUNTY OF MANGE _ On AUGUST 13, 1996 _ . before fire, tl to ui idersigrted, personally appeared BAR,BARA JO WALLACE ._..._._._._ personally known to tare (or proved to file on Elie basis of satisfactory evidence) to be the persoil(s) whose name(s) islare subscribed to lire within instrument arid acknowledged to me lliaf lie/shelllley executed (lie same In his/her/their t31.11horized capacity(ies), acid that by hisllrerltheir sigfiatule(s) oil the instrument the person(s) or the entity upon bel calf of Mitch r the person(s) acted, executed the Instrument. WITNESS 1ny hand slid official seal. SignaIur 1 _� LINDA J. CAMPBELL (i his area for olliclal voladal seal) LINDA J. CAMPBELL = COMM. 9 1045344 w y. H0TARY PUBLIC-CAVF0R. [A ORANGE COU14TY I' My Comm. Expires DEC. 24. ma OPTION L lrflflfflfffffrffflffifl fff[tfff111It Though the data below are not required by law, they may prove valuable to persons relying oil the document and could prevent the fraudulent reattacltrrlent of (Iris forth. Capacity Claimed By Signer Windividual L-j Corporate Officer 'riifes{s) _ 0 Partner(s) tJ Limited 0. General I-] Attorney -in -Fact L7 Trustee(s) 0 Guardian/Conservator L7 Other: Signer Is Representing: 148111e at Persons) or Enlily(les) Uescriptioit of /Attached Uoc;mmicttt or IX'11.5r 1 iiro or 1YP®af Uoculnel t _ Fdumber of Pages Uale or Document _ Sigiier(s) Other Than Named Above e 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 Comnon Area defined in Declaration referred to below and described in the. condcminium Plan ("PLan") for Lot i of Tract No. 14828, which plan was recorded on August 25, 1994 as Instrument 11o. 94-0525335 of Official Records of Orange County, over Lot 1 of Tract No. 14828, in the city of Huntington Beach, county of orange, state of .California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous !taps, in the office of the i County Recorder of said county. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved i -deed recorded August 16, 1921 in Book 401, rage 356 of Deeds, and in various other deeds of record. PARCEL 2: Unit tto. 22 consisting of certain airspace and surface elements, as shown and described in i the Condominium Plan referred to in Parcel 1 above. Parcel 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, Conditions and Restrictions and Reservation of Easements for Pacific Par): villas, recorded August 25, 1994 as Ynstrument No. 94-0525336 of official Records. rarcel 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas:defined, depicted and assigned on the Plan. N "Exhibit A" to Agency Deed of Trust Page I of 1 A'a�Ci:llgsee:a�largolis:L• xl�Cikat`A?R69G R1S 9G-127 EXIIIBIT D DECLARATION OF CONDITIONS. COVENANTS AND RESTRICTIONS FOR PROPERTY RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: ) (Space above for Recorder's use.) THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (the "Declaration") is made by and between BARBARA JO WALLACE (the "Covenantor") and THE 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 of the Property" (which is attached hereto as Exhibit "A" and incorporated herein by this reference) to certain covenants, conditions and restrictions. . B. The Community Redevelopment Law (California Health and Safety Code § 33000 et seq.) provides that a redevelopment agency shall establish covenants running with the land in furtherance of redevelopment plans. NOW, THEREFORE, the parties hereto agree and covenant as follows: "Exhibit D" to Loan Agreement Page 1 of 9 41s%G:4.96Agree;watlace:ExfiibitU RLS 96-523 7129/94 1. Affordability Covenants. Covenantor agrees for itself, and its successors and assigns, and every successor to Coveriantor's interest in the Property, or any part thereof that for thirty (30) years from the date of recording of the Deed of Trust in favor of the Agency regarding the Property (the "Expiration Date"): (a) The Property shall only be owned and occupied by Convenantor or by other persons or families of "Moderate Income." "Moderate Income" shall mean persons or families earning One Hundred Twenty Percent (120%) or less of Orange County median income, adjusted for appropriate family size. (b) The Property shall be kept available at Affordable Housing Cost (as defined below) to the Covenantor or other persons or families of moderate income. Affordable Housing Cost shall mean, as to each person or family of low or moderate income, that purchase price which would result in monthly housing payments which do not exceed an amount under any currently prevailing conventional home mortgage lending rates applied by any reputable institutional home mortgage lender, or the lending rates of any government -subsidized or special mortgage program for which such person or family qualifies and has obtained a first trust deed loan, which do not exceed thirty-five percent (35%) of One Hundred Ten Percent (110°!o) 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 (90%) and One Hundred Ten Percent (1101/6) of the Orange County monthly median income, and Thirty -Five Percent (35%) of the monthly median income of any person or family of moderate income which earns more than One Hundred Ten Percent (110%) and not more than One Hundred Twenty Percent (120%) of the Orange County median income. (c) The covenant contained in this Section 1 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 2. Transfer ofPropertx. No transfer of the Property shall occur until the Agency determines (a) that the proposed purchaser intends to occupy the Property as the proposed purchasers 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 purchasers intent with respect to its residency of the Property and its gross income, and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the proposed purchase price. Prior to conveyance of th ! 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 a'l 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 Covenantors original sale of the Affordable Unit, provided that "Exhibit D" to Loan Agreement Page 2 of 9 41s1G A-9GAgree: Wa11ace:ExhibhD RLS 96-5217129/96 f . the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST. .� V) • ' Covenantor Initials The covenant contained in this Section 2 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 3. 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 Covenantor) or sale of the property on the basis of race, color, religion, sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or non segregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, "Exhibit D" to Loan Agreement Page 3 of 9 4�310:4-96Agree:W allate:Exliibi4U RL.S 96.523 7/29M nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees in the land herein conveyed. The foregoing convenants shall run with the land." (b) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, ancestry or national - origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection; location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees of the premises." Nothing in this Section 3 shall be construed to authorize the rental or lease of the Property if such rental or lease is not otherwise permitted. The convenants in this paragraph 3 shall run with the land in perpetuity. 4. Q12venants Qgllot Impairlten. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 5. Covenants For Benefit of City and Agency. All covenants without regard to technical classification or designation shall be binding for the benefit of the Covenantee and the City of Huntington Beach (the "City") and such covenants shall run in favor of the Covenantee and the City for the entire period during which such covenants shall be in force and effect, without regard to whether the Covenantee or the City is or remains an owner of any land or interest therein to which such covenants relate. The Covenantee and the City, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such "Exhibit D" to Loan Agreement Page 4 of 9 4`skG:4.96Agrcc:Wallace:E hibitD RtS 96-5217129,16 breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenarts, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. IN, WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument to of be j d on their behalf 19 their respective officers hereunto duly authorized, this 13 day COVENANTOR / IW ARA JO WALLACE APPROVED AS TO FORM: Agency Counse7ys,EG,-Jjc{w "Exhibit D" to Loan Agreement Page 5 of 9 4's0.0:4.96Agrec:wallace:ExhibitD RLi 96-523 W29/96 STATE OF CALIFORNIA ) ss COUNTY OF alANGE _) On AUGUST 13, 1996 before me, LnMA J. C MPBELL (name, title; e.g., "Jane Doe, Notary Public"), personally appeared BAF'.BARA JO WALLACE {name(s) of signer(s)), personally knovm to be -- OR -- XX proved to me on the basis of satisfactory evidence to be the person(s) whose names) is/are subscribed to ax within instrument and acknowledged to me that helshclthey executed the same in hisAierlthcir authorized capacity(ics), and that by hisllicrltlicir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness.mv hand and official seal. CL CE,: '�' LINDA J. CAM ?BELL X C0WA. P 1045344 W tn f +�= NOTARY PUBLIC .CALIFORIN A �] oRA%GE COU. rrY .� My Comm. E-p' es DEC.20. IM CAPACITY CLAIMED BY SIGNER: XX Individual Corporate Offieer(s): ' Title(s) Partncr(s): Limited General Attorney -in -Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: - Name of Person(s) or Entity{ies) a (Signat c of Notary) LINDA J. MMPBELL ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document DECLARATION CF OONDITICNS, COMVIMS hIUST BE ATTACHED AND RESTRICTIONS FOR P &:= TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AJG= 5, 1996 T RIGHT- Signer(s) Other Than Named Above: "Exhibit D" to Loan Agreement Page 6 of 9 4'dkG:4-96A&rcc: W allace:ExhibitD RLS 96-323 7/29196 7 STATE OF CALIFORNIA } ss COUNTY OF On before me, (name, title, e.g., 'Jane Doe, Notary Public"), personally appeared (name(s) of signer(s)), personally known to be -- OR -- proved to me on the basis of satisfactory evidence to be the person(s) whose namc(s) is/are subscribed to the within instrument and acknowledged to me that hc/she/they executed the same in his/her/their-authorized capacity(ics), and that by his/her/their signaturc(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed tic instrument. Witness my hand and official seal. (Signature of Notary) CAPACITY CLAIMED BY SIGNER: Individual Corporate Oflicer(s): Title(s) Partner(s): Limited General Attorney -in -Fact Trustees) G uardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document Tom: Signers) Other Than Named Above: "Exhibit W to Loan Agreement Page 7 of 9 *AG:4 96Agree:W&11ace:E•xhibilD RL4 96-323 7129196 t1. STATE OF CALIFORNIA } COUNTY OF } On before me, (name, title, e.g., "Jane Doe, Notary Public"), personally appeared (name(s) of signer(s)), personally kno%,6m to be -- OR -- proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/sheJthey executed the same in hisllicrAlicir authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) act=d, executed the instrument. Witness my hand and official seat. (Signature of Notary) CAPACITY CLAIMED BY SIGNER: Individual Corporate Officcr(s): Titles) Partner(s): Limited General Attorney -in -Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s) or Entity(ies) ATTENTION NOTARY- Although the information requested below is OPTIONAL, IT COULD PREVENT FP.A.UDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document LIUST BE ATTACHED 0 THE DQQUMENT Number of Pages ESCRIBED Date of Document TATMEiT: Signers) 0 Lhcr Than Named Above: "Exhibit D" to Loan Agreement Page 8 of 9 `4GA —9GAgree:Wa11acc:Ex!]ibitD ILLS 96-523 7129196 A EXHIBIT A LEGAL. DESCRIPTION OF PROPERTY [To Bc Inserted] LEGAL DESCRIPTXON EXHIBIT "A" PARCEL 1: , An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to all of the Common Area defined in Declaration referred to below and described in the Condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument Nd. 94-0525335 of official Records of Orange County, over Lot 1 of Tract No. 14828,.in the'City of Huntington Beach, County of Orange, State of California, as per map filed in Book 706, Pages 27 to 29 of N.iscellaneous Maps, in the office of the County Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: Unit t:o. 22 consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. Parcel 3: t 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 tio. 94-0525336 of official Records. i Parcel 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas:defined, depicted and assigned on the Plan. "Exhibit W to'Loan Agreement Page 9 of 9 4`3kG:49GAgree;Wa11ace:EWM1D - RLS 96-523 7129196 List of Down Payment Assistance Borrowers at Pacific Park Villas ATTACHMENT #3 r RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Transferability of Pacific Park Villas Down Payment Assistance Loans COUNCIL MEETING DATE: May 17, 1999 RCA ATTACHMENTS STATUS Ordinance w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contra ctlAg re ement (wlexhibits if applicable) Si ned in full b the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by qty Attorney) Not Applicable Certificates of Insurance (Approved by the City Attome Not Applicable Financial Impact Statement Unbud et, over $5,000 Not Applicable Bonds if applicable) Not Applicable Staff Re ort 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 FOR RDED Administrative Staff Assistant City Administrator initial City Administrator Initial City Clerk EXPLANATION FOR RETURN OF ITEM: RCA Author: Duran at extenslon1529 City of Huntington Beach 2000 Main Street, Huntington Beath CA 92648 HUNTINGTON BEACH From the desk of Maybrice L Henry Deputy CRy Clerk (714) 536-5260 F", 5Y70-e,' /a�iy196 Council/Agency Meeting Held: Deferred/Continued to: �4 roved 13 ConditionaUy Approved 0 Denied City Clerk's Signat4te Council Meeting Date: 8/05/96 1 Department ID Number. ED 96-52 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS C_ G r a SUBMITTED BY: MICHAEL T. UBERUAGA, Executive Directo PREPARED BY: DAVID C. BIGGS, Director of Economic Development .� T o 'ry SUBJECT: DOWN PAYMENT ASSISTANCE PROGRAM PARTICIPANT APPROVAL FOR PACIFIC PARK VILLAS PROJECT (Talbert -- Beach Project Area) o Statement of Issue, Funding Source, Recommended Action. Altematiw7 Action(s), Analysis, Environmental Status, 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. Payment to be made to Tiempo Escrow on behalf of Gregory S. Murch in the amount of $35,000.00. Altemative Actions : Do not approve the participant. E--zl REQUEST OrR REDEVELOPMENT AGE�Y ACTION MEETING DATE: 8105/96 DEPARTMENT ID NUMBER: 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. Environmental Status: Attachment(s): 1. Prospective Borrower 2. Loan Agreement 3. Promissory Note 4. Deed of Trust with Assignment of Rents 5. Declaration of Covenants 6. Disclosure Statement 7. Notice of Right of Recission 8. Certificate of Proposed Transferee 9. Lending Instructions RCAMURCH.DOG -2- 07/241961:16 PM REQUEST OR REDEVELOPMENT AGEfiY ACTION MEETING DATE: 8105196 DEPARTMENT ID NUMBER: DOWN PAYMENT ASSISTANCE PROGRAM Location of Property Loan Name Amount Sublect to Trust Deed 56-06 Gregory S. Murch $35,000 18051 Joyful Lane, #102 Note: 1. Borrowers have received "conditional Roan 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 qua'i`y borrowers on a case -by case -basis. RCAMURCH.DOC .3- DM4196 2:19 PM �..J LOAN AGREEIMENT THIS LOAN AGREEMENT (the "Agreement") is made this � day of 19aL by and between GREGORY S. MURCH ("Participant") and the RED VELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as 18051 Joyful Lane. #102 _,_Huntington Beach, California, and more particularly described in Exhibit A attached hereto and incorporated herein (the "Property"). B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and currently earns less than 120% of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to the Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. The Agency desires to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach (the "City"). E. The Agency wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: 1. Agency Loan. The Agency shall loan to Participant (the "Agency Loan") the amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the Program. The Agency Loan shall be paid to the seller of the Property (the "Seller") by the Agency through deposit of the Agency Loan proceeds into escrow with TIEPTO ESCROW, M. (the "Escrow Agent") (Escrow No. 9457- . 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, andlor document fees. At such time, Participant shall execute and deliver to the Agency a Loan Agreement Page 1 ors 4's%0:4-96-Agree:%Iurch:loanagree RLS 96-522 7129.96 promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple interest at five percent (50,'0) 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 vrill uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws. 3. Due on Sale. Transfer or 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 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. Equit�Shadn. 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: Prior to fifth anniversary of the Agency Deed of Trust: 2. Afler 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 fia,0:4.96-Agrce: %Iurch:lo=&Vw RLS 96-522 7129.196 fifty percent (50°!0) forty-eight percent (48°'o) 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 (381/1o) 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. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) Loan Agreement Page 3 of 8 4'sIG4-96-Agm: Alurch:lotnagrce RL5 96-522 7:29'96 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 twenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for 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 (S2,500) 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 Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. Loan Agreement Page 4 of 8 ,feG-4-96-Agrec:hiurch:loanag= RLS 96-522 V29'96 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. Etc uity_Share Upon Refinanci_rg 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. Occupancy Standards. The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property. 6. Income Information. Participant has submitted an eligibility verification form to the Agency prior to execution of this Agreement. Participant represents and warrants to the Agency that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the Agency is relying upon Participant's representations that Participant's income does not exceed 120% of the area median income and would not have entered this Agreement if Participant's income exceeded 120% of the area median income. 7. Loan Servicing. The Agency may contract with a private lender to originate and service the Agency Loan. 8. Participant Financing_ Participant shall obtain financing for the purchase of the Property from the Southern California Home Financing Authority or a reputable institutional lender approved by the Agency (the "Lender"). The lien secured by the Agency Deed of Trust Loan Agreement Page 5 of 8 fs+G: 496-AgrcA f urch. loan gm RLS 96-522 711996 V � shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns. In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 9, Covenants Participant and the Agency shall execute and have recorded in the Official Records of Orange County, California, a "Declaration of Conditions, Covenants and Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated herein, in which Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health & Safety Code Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Agency and the City. 10. 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) clays 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 thar. thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required go protect against further damages, the insured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 13. Documents. Participant is aware that the Agency has prepared certain documents to implement the Program and secure repayment of the Agency Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Agency Loan: Loan Agreement Page b of 8 4s`.G:4-96-Agree:%1urchAcwm4gce RLS 96-522 7r29.96 (a) Disclosure Statement; (b) Promissory Note; (c) Agency Deed of Trust; and (d) Declaration of Conditions, Covenants and Restrictions of Property. Participant agrees and acknowledges that the Agency Deed of Trust and the Declaration of Conditions, Covenants and Restrictions of Property shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. 14. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the Agency shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Agency Loan. 15. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California: 16. Amendment of Agreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 17. 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 without the prior express written consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 19. Entire 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 -'s1G:4-96-Agm:%1urch:1o&mV= RIS 96-522 7429.96 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: (X7 19J& Date: , 19 "PARTICIPANT"�i,�-� ,.� By: 4&M �wf N ,l l Printed Name: By: Printed Name: Date: , 19 By: Date: 192(— ATTEST: - t, Agency Clerk REVIEWED AND APPROVED: Executive Director 4'%jG:4-96-Agrec:%Iurch:louugee RLS 96-522 7r29.'96 Printed Name: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNUNGTON BEACH, a public body corporate and politic By: Chairman APPROVED AS TO FORM: 1 4 Agency Counsel INITIATED AND APPROVED: Director ofEconoml evelopment Loan Agreement Page 8 of 8 EXHIBIT A LEGAL_DESCRIPTIO\ OF PROPERTY [To Be Inserted] 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 I of Tract No. 14828, which Plan Was recorded on August 25, L994 as Instrument No: 94-0525335 of Official Records of Orange County, over Lot 1 of Tract No. 14828, in the city of Huntington Beach, County of Orange, State of California, as per map filed in Book 7C6, Pages 27 to 29 of .`Miscellaneous Maps, in the office of the County Recorder of said County. Exce-pting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydorcarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds and various other deeds of record. PARCEL 2: Unit No. consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. PARCEL 3: Non-exclusvie 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 Reservations of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. PARCEL 4: Exclusvie easements appurtenant to Parcels I and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and assigned on the Plan. Exhibit A to Loan Agreement Page 1 of 1 4'iV%gree:%Iargolis:Exhibit, 07.'2"6 l� REMESFcD BY �omWIAL LEMER5 Tj1U M RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Redevelopment Agency of the City of Huntington Beach 2000 Main Street Huntington Beach, California 9264.8 Attn: Agency Clerk Recoraeq In the County or orange, California Gary L, Granville, Clerk/Recorder !ll��lll.l1,11711I.:'1ll,fl.I:.f111;°tl'�1I No Fee 19960429654 04:30pr1 08/21/96 006 10010622 10 16 D11 A36 18 0 14.00 0.00 51.00 0.00 0.00 0.00 0.00 0.00 0.00 REOSWEDI5pwc Abow 71us Lure For Reoo,dces Use 1 AUG This document is exempt from recording fees pursuant to DEPARTMENT Government Code Section 6103. ECONOMIC DEVEL M€NT DEED OF TRUST WITH ASSIGNMENTS OF RENTS S DEED OF TRUST is made this 5TH day of Aug., 19 9�6 by and among (y� GREGORY fRCH, whose address is I8051 Joyful Lane, # 102, Huntington Beach, California (the "Trustor") and THE CITY OF HUNT N. GTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON �.� BEACH, a public body corporate and politic (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a) aII buildings, improvements and fixtures, now or hereafter placed thereon, i; 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, HOVENT1,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. ",'I CCIHEfit Page I of 15 4'9G:4-96ag=:Murch:ExhibitC RL5 96-522 7l29'96 A. FOR THE PURPOSE OF SECURING: 1. 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 ovmer 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 AEKX r 5 19 96, insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor -in -interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: I. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at a'.1 reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry -rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; t&d a=Agreemenf-- Page 2 of 15 4%i%G:496agrcc:Murch:ExhihitC RLS 96-522 129.96 (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (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 furnished to the said property. Trustee upon presentation to it of -an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination i age 3 or 15 WeG:4-96agee: nrureh:ExhibitC RLs 96-522 779.96 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 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 ord.-r 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 ary amount so expended on demand of Beneficiary, and any amount so xhibit-r' greAMM6- Page 4 of 15 4410:4-96ageellurch:£xhibitC RIS 96.522 17%96 expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property id directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust. G. To pay immediately and without demand, all sums expended under.the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums sWl be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does net waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or " tn Dan A t- Page 5 of 15 4eG:4.96sgree: h(urch:ExhihitC RLS 96-522 7'29.96 thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c) join in granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upor written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re -assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Trust Deed, or cause Beneficiary to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Beneficiary confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues and profits without notice and without taking possession3 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 :'El t " Page b of 15 4 eG:4-96agcc:A1urch:ExhibitC RLS 96-522 7"1996 to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person 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 th:s Deed of Trust. In the event of a violation of any of the covenants se: 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 " '-�ad.ea cA-cmantw Page 7 of 15 v 4's%Q:4-96ag=-.%1urch:Exhlbi1C RLS 96-522 7R9.96 S4"'I Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shales 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. I6. 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 6e original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have 9T=hibi'L-- " — Mr -Agreement — Page 8 of 15 -r9jGi:4-96agee;h1urch:£xhibitC RLS 96•S22 7,29.96 been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on January 1, a written operational report. Such operational report shall contain a brief but complete statement of the year's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 20. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Coder of California, Beneficiary shall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said 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 " �,Agre�mer�t-.- Page 9 of 15 4'sG:4-96agree:kfurch:ExhibitC RLS 96-522 7.79'96 �'re disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR: By: GREMRY SOOTY MFI31 By: APPROVED AS TO FORM: e4x, stfr� Agency Counsel 7-3 6-5 4 fief Page 10 of 15 4'eG:4-96agme:NIurch:ExhibitC RiS 96.522 7.119.'96 RIDER TO DEED OF TRUST FIRST TIME HOMEBUYER DOWN PANMENT ASSISTANCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUG= 5 , 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 tl',is Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Trustor shall pay to Beneficiary concurrent with such sale, transfer or refinancing, an amount equal to the 'Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: Prior to fifth anniversary of the Agency Deed of Trust: fifty percent (50%) 2. After fifth anniversary but) prior to sixth anniversary: forty-eight percent (48%) After sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: forty-four percent (44%) 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) 8. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (361/o) 9. After twelfth anniversary but prior to thirteenth anniversary: thirty-four percent (3407'0) Oshhibit " _ �� Page 11 of 15 4a=GA-96ag =.%1urch:Exhibi1C RLS 96-522 7'29'96 • k' 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32° u) 11. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) 'Exhibit-GIto=Lotrr-Agreement Page 12 of 15 4s`0 *96ageeNurch:ExhibitC RLs 96-522 7,79.96 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1°!0) 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 following: No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The percentage factor so determined is the "Applicable Factor." If the Property is sold, an amount equal to the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the amount received by Trustor as the Property sale price (as reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. If the Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is subordinate is refinanced for a loan amount which is in excess of the then current loan balance or extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the appraised value of the " xhian t n Page 13 of 15 4`s.0 *96aUw-hfurch:FxhibitC RIS 96-522 7,29.'96 41.) �.w Property as of the time of such transfer or refinancing, Dated: f � [ % TRUSTOR APPROVED AS TO FOPAI: ddd� Agency Attorne�� . �b Page 14 of 15 4 eG:4-96agce:hlurch:ExhibitC RLS 96-522 779'96 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 AUG= .5 _ , 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 ti•.is Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter recorded against the property described herein. Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of one of the following events: 1) Title is acquired by the First Lender or another party upon foreclosure of a deed of trust by the First Lender. 2) Title is acquired by the First Lender or another party by a deed in lieu of foreclosure of the First Lender deed of trust. Dated: ?/ f q6 TRUSTOR: APPROVED AS TO FORM: w- 1 Agency Attorney 7-36--16 014-1�1 v-t&hibit (;"te4�Gar Agreement Page 15 of 15 4's`G:4-96agae:l furch:ExhibitC RL5 96-522 T.'29.96 EXIIIBIT A TO AGENCY DEED OF TRUST LEGAL DESCRIPTION [to be inserted] PARCEL is i An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to. all of the Common Area defined in Declaration referred to below and described in the; Condominium Plan (-Plan-) for Lot 1 of Tract No. 14828, which Plan was recorded on August 'I 25, 1994 as Instrument No. 94-0525335 of official Records of orange County, over Lot 1 of it Tract No. 14828, in thelcity of Huntington Beach, County of orange, state of California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the county Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon - substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2s 1 Unit No. consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. I Parcel 33 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. i Parcel 4e k� Exciceive easements appurtenant to Parcels i and 2 referred to above, purposes, over the areasidefined, depicted and assigned on the Plan. "Exhibit A" to Agency Deed of Trust Page I of I 4's`G:Ag m:%Iargotis:ExhCDeecr47.'29196 RCS 96-127 for balcony or patio DEED CERTIFICATION This is to certify that the interest in real property conveyed by the deed dated August 19,1996 from Gregory S. Murch, to the CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION, a municipal corporation, is hereby accepted by the undersigned officer or agent on behalf of the City Council of the City of Huntington Beach, pursuant to the authority conferred by Resolution No. 3537 of the City Council of the City of Huntington Beach adopted on August 7, 1972, and the grantee consents to the recordation thereof by its duly authorized officer. Dated: August 20, 1996 CITY OF HUNTINGTON BEACH --CONNIE BROCKWAY, CIVIC CITY CLERK By: •-Beputy City Clerk gAfollowup1dcedcm ti � AMA � lb C STATE OF CALIFORNIA } }ss. COUNTY OF oeAr= } • personally appeared CREGORY , before me, .SCOT MJRM JOIN La —cam , personally known to me (or proved to me on the basis of satisfactory evidence) to be the persons) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature JOM L=IER .- JOAN LASHER = tr ,��: CO'.11!JI. # 1045339 as ca ' �+ U.- WiTARYPUBLIC-CALIFORNIAM _ MANGE COUNTY � ��y, EsyirM DEC.IS. 1999 (This area for official noartal seal Tile of Document D® OEM TRUST WITH ASSIGNMENTS OF RENTS Date of Document AUMST 5, 1996 No. of Pages IS Other signatures not acknowledged 3C09 (1,94) (General) Firs! American Title insurance Company PLEASE COMPLETE THIS INFORMM N RECORDING REQUESTED BY: jFxh- 7. 1%01/ Continental Lawyers Title Company AND WHEN RECORDED MAIL TC: RM- E rE[DF3'1= AGElk CY OF 71M CITY O:? H[ mrn crw BFM I 2000 Main Street Htmtington Bcach, Ca 92648 N17N: AGENCY CLM Ck. 636 Recorce(7 in tree County of orange, California Gary L. Granville. Clerk/Recorder I�11.1';:ll f 1:I:11' 11:�1I1:;111.11'.I:I`I.1'';I1: No Fee 19960429696 04; 30pm 08/21/96 005 1@f10622 10 16 D02 10 7.00 27.00 0.00 0.00 0.00 0.00 DECIARATIC)N OF CXDITICNS, COVENANTS AND RESTRICTICNS FOR PROPERTY Continental Lawyers Title Company Subsidiary of Lau),yers idelnsurance Corporation THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION (Additional recording lee applies) .n 11,92 DECLARATION OF CONDITIONS. C.QVENANTS AND RESTRICTIONS FOR PROPERTY F,ECORDi';G REOUESTED BY CO,n.+ENTAL LYWYEB,S nnF CO. RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: ) } (Space above for Recorder's use.) rTHIS DECLARATION OF CONDITIONS, COVENANTS WTRICTIONS FOR PROPERTY (the "Declaration") is made by and between GREGORY�CH (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 AUG= 5 . , 19, gf . (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 ar_d 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: Page I of 9 ,f%ivG:4-96Agree:hfurch: ExhibitD RL5 96-322 7l29.'96 %,mor 1. Affordability Covenants. Covenantor agrees for itself, and its successors and assigns, and every successor to Covenantoes 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 Converiantor or by other persons or families of "Moderate Income." "Moderate Income" shall mean persons or families earning One Hundred Twenty Percent (INI O 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 (I I0%) of the Orange County monthly median income for those persons and families of moderate income (as determined by the United States Department of Housing and Urban Development) earning between Eighty Percent (80%) and One Hundred Ten Percent (110%) of the Orange County monthly median income, and Thirty -Five Percent (35%) of the monthly median income of any person or family of moderate income which earns rrore than One Hundred Ten Percent (110%) and not more than One Hundred Twenty Percent (120%) of the Orange County median income. (c) The covenant contained in this Section l 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 residency of the Property and its gross income, and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall submit to the Agency an executed disclosure statement which certifies that the purchaser is aware that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate income person or family, that the maximum permitted sales price may be less than fair market value and that the unit must be owner -occupied at all times and cannot be rented or leased. Covenantor shall cooperate with the Agency in pro%iding 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 site of the Affordable Unit, provided that -UEXhibi" r..r Sr-eQF7i6i4t+ Page 2 of 9 4'dCr*96Agrcc.h1urch: Exhibi1D RLS 96-522 7r19:96 the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THI"s TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF TfIE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN TILE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY NN IIICII IS NOT ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST. W%l 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, subtenants, sublessees, or vendees in the Property. Covenantor and its successors and assigns, shall refrain from restricting the rental or lease (if permitted by Covenantor) or sale of the property on the basis of race, color, religion, sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or non segregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the aExWit-4X4o-Loan Page 3 of 4 4`s,0:4-96,lgrcc:Murch:ExhibitD RLS 96-522 7129.96 �.W �.O sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed, nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees in the land herein conveyed. The foregoing; convenants shall run with the land." (b) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees of the premises." Noshing in this Section 3 shall be construed to authorize the rental or lease of the Property if such rental or lease is not othemise permitted. The convenants in this paragraph 3 shall run with the land in perpetuity. 4. Covenants Do Not Impair Lien. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 5. Covenants For Benefit of City and Agent. All covenants without regard to technical classification or designation shall be binding for the benefit of the Covenantee and the City of Huntington Beach (the "City") and such covenants shall run in favor of the Covenantee and the City for the entire period during which such covenants shall be in force and effect, without regard to whether the Covenantee or the City is or remains an owner of any land or interest therein to which such covenants relate. The Covenantee and the City, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such "E--chibit-W-4o4,ea ;;,Agrc nw=— Page 4 of 9 4's,Cj:4-96Agce:hlurch: Exhibitb RCS 96-322 7r29-96 breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenants, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. IN WITNESS WIIEREOF, the Covenantee and Covenantor have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized, this 7 day of AU= .19 96 . COVENANTOR ff-R1IiJi a .�. APPROVED AS TO FORM: Agency Counsels-3 j -S 6 6C14- Xgreemeni— Page 5 of 9 jreG:4-96Agree:Murch:ExhibitD RLS 96.322 12996 STATE OF CALIFORNIA } } COUNTY OF ORANGE ) ss On AUGUST 7, 1996 , before me, JOAN LASHER, NOTARY PUBLIC (name, title, e.g., "lane Doc, Notary Public"), personallyappearcd GREGORY SCOTT MURCIi IIlIIIIII1111I (name(s) of sigier(s)), personally known to be -- OR — XX proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) islarc subscribed to tf a within instrument and acknowledged to me that hc/shclthcy executed the same in his/her/their authorized capacity(ies), and that by his/her/their sigiaturc(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. seal. JOA6N LASHER = COT. M 9 104J.:�J=7 w F. Cr car:, r _ (Signature of Notary) Mp Cc-Tn. ExSrw DEC_ M 19M CAPACITY CLAIMED BY SIGNER: XX Individual Corporate Ofiiccr(s): Partner(s): Attorney -in -Fact Trustec(s) Guardian/Conscrvator Other Titic(s) Limited General SIGNER IS REPRESENTING: Name of Pcrson(s) or Entity(ies) HIMSELF ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF 71I1S CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Documcit "EXHIBIT D" DECLARATION OF MUST BE ATTACHED CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signcr(s) Other Than Named Above: $,&WQQG1 Page 6 of 9 4'dCs:4.96r1Vte:161urch:ExhibitD RLS 96-522 7129,96 STATE OF CALIFORNIA ) ss COUNTY OF ) On before me, (name, title, e.g., "lane Doc, Notary Public"), personally appeared (name(s) of signcr(s)), personally known to be -- OR -- provcd to me on the basis of satisfactory evidence to be the person(s) whose name(s) islare subscribed to &.c v-rithin instrument and acknowledged to me that he/she/they executed the same in hislhcr/their authorized capacity(ics), and that by his/herhhcir signaturc(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 Officer(s): Partncr(s): Attorney -in -Fact Trustec(s) Guardian/Conservator Other Title(s) Limited General 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 MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT: 4'a.G:4-96Agrcc:l�turch: ExNbitD RLS 96.322 7r29."J6 Title or Type of Document Number of Pages Date of Document Signer(s) Other Than Named Above: Page 7 of 9 STATE OF CALIFORNIA } ss COUNTY OF ) On , before me, (name, title, e.g., "Jane Doc, Notary Public"), personally appeared (namc(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) islarc subscribed to the within instrument and acknowledged dged to me that he/shelthcy executed the same in his/her/their authorized capacity(ics), and that by his/her/their signaturc(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 BYSIGNER: Individual Corporate Ofticcr(s): Partncr(s): Attorney -in -Fact Trustcc(s) Guardian/Conscrvator Other Title(s) Limited General 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 Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signer(s) Other Than Named Above: Page 8 of 9 4'jiCi-4-96Agrcc:Rlurch: ExhibitD RIS 96-522 7129.196 V �+ EXHIBIT A LEGAL DESCRIPTION OF PROPERTY [To Be Inserted] PARCEL 11 I An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to. all of the common Area defined in Declaration referred to below and described in the! Condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August: 25, 1994 as Instrument No. 94-0525335 of Official Records of orange County, over Lot I ofil Tract No. 14828,_in tha°City of Huntington Beach, county of Orange, state of california,;I as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps,'in the office of the County Recorder of said County. _ Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon-' substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: f unit No. consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. Parcel 3s 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 Easer.ents for Pacific park Villas, recorded August 25, 1994 as Xnstrument No. 94-0525336 of official Records. i Parcel 4s Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas!defined, depicted and assigned on the Plan. ` Page 9 of 9 41a ,Ci:4-96Agrcc:Alurch: ExhibitD RLS 96-522 7/29% EXHIBIT E DISCLOSURE STATEMENT I1%Ve GREG RY S. MMCH _ ("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: • IJWe must qualify for a home loan from an institutional lender acceptable to the Agency. • IAVe must pay at least 3 % of the home purchase price from our own funds. * IAVe must qualify for assistance under the guidelines of the Agency's Program. • IAVe as owners of the unit must occupy it for the entire term of the loan. If Iffile rent the unit to others, UWe will be in default of the Loan Agreement. IAVe further understand and agree that: • IAVe will be responsible for repaying the loan with five percent (5%) simple interest per year at the time I/we 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 Uwe receive the Agency financial assistance, Uwe sell or transfer the home I/we purchased under ibis Program to persons who are not persons of low or moderate income or refinance the lien of the deed of trust held by my/our lender, Uwe will be obligated to pay the Agency a percentage share of the difference between the price Uwe paid for the home and its value at the time of such sale, transfer or refinancing. The Agency Loan is due upon sale, transfer or refinancing of the unit. • IAVe have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to The Redevelopment Agency of the City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, California 92648 "Exhibit E" to Loan Agreement Page 1 of 2 4's%G+96Agae:%1urch:Exhibi1E RLS 96-522 7129,196 • The Agency will not require me/us to make payments of principal or interest during the term of the loan. The full balance of principal and interest will be due and payable when the term of the loan expires. There are no loan closing costs, prepayment penalties or charges, points, fees, finance charges, service charges, investigation fees, credit report fees, insurance premiums, notary or escrow fees, late payment charges or other fees payable pursuant to this loan. An appraisal fee may be payable upon the refinancing of my/our house. • The Agency shall not be held responsible for any costs associated with the home F'A'C purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The Agency cannot ensure that information provided by or on behalf of Applicant will be kept confidential. • The Agency shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/we assume all responsibility for determining whether Uwe desire to be considered for the Program, and Vwe will inform myself/ourselves as to the availability and terms of other public or private loans. • The Agency shall not be charged with knowledge of the contents of the documents of the primary lender. • The Agency financial assistance Uwe 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: 41!IQ4-96AV=:%1urch:ExhibhE RLS 96-522 179196 1916. � ��FA� � MPr Signature of applicant GREGORY SCM MJRCH "Exhibit E" to Loan Agreement Page 2 of 2 EXIIIBIT F NOTICE OF RIGHT OF RESCISSI011 Participant(s): EGORY S. MURCH Loan Amount: $3 K 000.00 Address of Residence: 18051 Joyful Lane. #102, Huntington Beach. . Notice to Participant Required by Federal Law: You have entered into a transaction on AUCTJSr 9• 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 down payment or other consideration if you cancel. If you decide to cancel this transaction, you may do so by notifying: The Redevelopment Agency of the City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, California 92648 by mail or telegram sent not later than midnight of AU= 13, 1996 (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) 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 "Exhibit F" to Loan Agreement Page 1 of 2 ,f-w-G:4-Ag=:X1urch:Exhibi1F RLS 96-522 7r29./96 v creditor shall return to the participant any money or property given as earnest money, down payment, or otherwise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the customer, the customer may retain possession of it. Upon the performance of the creditor's obligations under this section, the customer shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the customer, at the option of the customer. If the creditor does not take possession of the property within 10 days after tender by the customer, ownership of the property vests in the customer without obligation on his part to pay for it. ACKNOWLI'sDGMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acknowledges receipt of two completed copies of this Notice. Participant's Signature ate Participant's Signature Date CRWORY SO= MMCti Participant's Signature Date 4's%C:4-Agrce: %turch: ExhibitF RLS 96-522 7r29.'96 Participant's Signature Date "Exhibit F" to Loan Agreement Page 2of2 EXHIBIT G", EXPIRATION OF RESCISSION PERIODS (Truth in Lending - Real Estate and Home Improvement Loans) Participant(s): GREGORY .I` CH Loan Amount: $35.000.00 Address of Residence: 18051 Joyful Lane, 4102, 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. A�A<11111 articipanfs Signature Ite "Exhibit G" to Loan Agreement Page 1 of 1 41s1G.4-96Ag=:Murch:FjNbitG R.Ls 96.522 N29.96 E EXHIBIT 11 CERTIFICATE OF PROPOSED TRANSFEREE THIS FORM MUST BE DELIVERED TO THE DEVELOPER BEFORE PROCEEDING WITH ANY TRANSFER OF THE PROPERTY. AilC= 5 , 19 96 1. The Proposed Transferee is Current Address: 18051 JOYFUL LANE, 1102 HUNT r1XW BEACH, CALIFCRNIA 92648 Telephone Number: 2. The address of the property which the proposed transferee desires to purchase is 18051 Joyful Lane, #102, 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 37,000.00 (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 (IS or over) - [name of each]: "Exhibit H" to Loan Agreement Page 1 of 6 4 i-GA-Aga:hfurch:Exhbiti1 RLS 96-322 7.19.96 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 $ 3-95,000.00 This sales price is based on the less of xx (i) Fair market value; or The maximum price at which the Purchase Housing Cost of the Proposed Transferee would not exceed Affordable Housing Cost. The calculation of the Sales Price under this subsection (ii) is illustrated in Attachment No. 10 to the Disposition and Development Agreement. IN ORDER TO ANSWER QUESTION 2(a) YOU MUST CALCULATE THE PROPOSED SALES PRICE BASED ON AFFORDABLE HOUSING COST, TAKING INTO CONSIDERATION ALL ITEMS LISTED IN THE DEFINITION OF PURCHASE HOUSING COST. (b) Price of any personal property being sold by the owner to the proposed transferee: $ -0— (if none, so state) (c) The price of $ -0- to be paid by the proposed transferee for any services of Owner. (Iz none, 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: $ -O- (If none, so state.) "Exhibit H" to Loan Agreement Page 2 of 6 41e0:4-AgeeA1ureh:ExhbW I RLS 96-522 7,29:96 V (e) Sources of payment of sales price: Sales price Cash down payment $ 19, 500.00 Ist loan $ 140'500'00 2ndioan $ 35,000.00 Other (describe) $ 195,000.00 �� Total {f) The financing obtained by the proposed transferee to purchase the Property is as follows: 1st Loan: Loan amount: $ 140,500.00 Monthly payments: $ 1,080.33 Interest rate 6.50 % if variable interest, describe adjustment mechanism: Due date: Balloon payment amount: Points and fees: Lender: Lender's address: 4 e-G:4-A 7ft A1urch:Exhbit1i RiS 96-522 7.'29.'96 SEPTEMM 1, 2026 $5,210.88 ,MIS.SICN HILLS MORTGAGE 1403 N. I IN AVENUE, SUITE 280 SANTA ANA, CALIFORNIA 92701 "Exhibit H" to Loan Agreement Page 3 of 6 2nd Loan: Loan amount: $ 35,000.00 Monthly payments: $ -¢- Interest rate 5.00% Acaww if variable interest, describe adjustment mechanism: Due date: SEPTt3MM 1, 2026 Balloon payment amount: PRINCIPAL AND I T1EPJ= Points and fees: -0- Lender: CITY OF 113MING1(N BEACH Lender's address: 2000 MAW STREET B UNTINGMI BEACH, CAGIFOMIA Other Loans: (describe, if none, so state) nCNE (g) The monthly Purchase Housing Cost to be paid by the proposed transferee: 1st loan monthly payment: $ 1,080.13 2nd loan monthly payment: $ -O - Other loans monthly payment: $ Taxes and assessments (1/12 of yearly taxes and assessments): $ 203.13 Insurance (1/12 of yearly $ INCLUDED IN ASSOCIATION DUES premium) Homeowner's dues: $ 175.69 Total: $ 1,458.95 "Exhibit 11" to Loan Agreement Page 4 of 6 4V,G:4-Agee: %f urch: Exhbitl I RLS 96-522 7.79, 96 8. A true and correct copy of the purchase and sale or other agreement between the owner and the proposed transferee is attached hereto. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. PROPOSED TRANSFEREE: OK% Date . AI Signature (RBpoRy scarT kMM Print name Street Address Signature Print name Telephone City State Zip Code "Exhibit H" to Loan Agreement Page S of 6 WiI G:4-Agree: %i arch: Exh hi tI I It1S 96-522 7,19,96 Developer's Certification Based on the Proposed Transferee's Certificate, above, and all documents attached hereto, Developer hereby certifies that: (l) 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 to which this certificate is attached.] DEVELOPER: Date: --1'-3— qG ., "Exhibit H" to Lozr. Agreement Page 6of6 4`sIG:4-Agm:%Iurch:Exhbitl i RES 96-522 129:9G k.,1 CONTINENTAL LAWYERS TITLE COMPANY A Wholly Owned Subsidiary y of L nwyers Title Insurance Corporation 18551 Vbn Farman Avenue, Suite 100, Irvine, CA 92715 Telephone (714) 223-5575 09/05/96 Faeaee+elopm nt Agircy of the City of Huntington Beach RECEIVED Agency Clerk 2000 Main St Huntingban Beach, CA S E P 2 3 1996 Our No.: 9402218-04 DEPPO TMENT OF Re: KUriddh ECONOMIC DEVE LOPMW Dear Sir/Madam: Enclosed please find our policy of title insurance issued per your request. Thank you for using Continual Lawyers Title Company. Very truly yours, Continental Lawyers Title Qurapany Subsidiary of Larjers Title Insurance Cl rrporation 0 Sic a� , , �u� 7A, a., 7D Cl.� U . I M _IIN Ilk I I h 1111 -T i It I l It I I it I It 10 It II k 1.1 It' I Ot I 114 1-1 It I it a l it I 1 It I I It IJ It IIIC 13 h- I.I k' I Ilk I I It I I ft Lilt' I.I W Li lt' Illy I l It � Laqiwyers`rtle `) InsuranceCrpo-radtion NATIONAL IIEAM)UARTERS 1992 ALTA lItICH610A X vHlal`IIA Loan Policy Loan Policy Number 135-01-208--638 SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, LAWYERS TITLE INSURANCE CORPORATION, a Virginia corporation, herein called the Company, insures, as of Date of Policy shown in SchWule A. against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in ScheduleaA being vested (a) 'arising from an improvement or work related to the land which ogler than as stated therein; ; is contracted for or commenced prior to Date of Policy; or 2. Ary defect in or lien or encumbrance on the title; t i ,'t� i(b) arising from an improvement or work related to the land which 3. Ur -marketability of the title; . - € i .. i is contracted for or commenced subsequent to Date of Policy and 4. La:k of a right of access to and from the land; _ which is financed in whole or in part by proceeds of the 5. The inFalidity or uncnforceability of the lien of the insured mortgage i indebtedness secured by the insured mortgage which at Date of up•)n the title; - �, . , Policy the insured has advanced or is obligated to advance; 6. The priority of any lien or encumbrance over the lien of the insuredThe 1inalidity or uncrxforceability of any assignment of the insured mortgage; ; �. mortgage, provided the assignment is shown in Schedule A. or the 7. La_k of priority of the lien of the insured mortgage over any statutory failure: of the assignment sho m in Schedule A to vest title to the insured lien for services, labor or material: r _ mortgage in the named insured assignee free anti clear of all liens. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage as insured, but or_ly to the extent provided in the Conditions and Stipulations. EXCLUSIONS FROM COVERAGE The following matters areexpressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attor'ncys fees or expenses which arise by reason of-. 1. (a) Any law, ordinance or g(werremental regulation (including but not limited to building and toning laws, ordinances or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use or enjoyment of the land; (ii) the character, dimensions or Iocatitm of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmertal regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resultinD from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any gm-ernmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resultirg from a violation or alleged violation affecting the land has been rxorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without kncwlcdge. 3. Detects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured motgage over any statutory lien for services, labor or material); or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. UnenforceabiNy of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. In%alidiiy or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. EL Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws, that is based on: (a) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (b) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (c) the transaction creating the interest of the insured mortgagee being deemed a pwfctenti:il transfer except where the preferential transfer results from the failure: (i) to timely record the instrument of transfer; or GO of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. 0® R,luy 135 • Litho in U.S.A. 061-0-135-MA Coto Shut ALTA Loan FW y (I0-17.92) CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. The following terms when used in this policy mean: (a) "insured": the insured named in Schedule A. The term "insured" also includes () the owner of the indebtedness secured by the insured mortgage and each successor in ownership of the indebtedness except a successor who is an obligor under the provisions of Section 12(c) of these Conditions and Stipulations (reserving, hoviever, all rights and defenses as to any suC cessor that the Company would have had against any predecessor insiued. unless the successor acquired the indebtedness as a purchaser for value without knowledge of the asserted defect, lien, encumbrance. adverse claim or other matter insured against by this policy as affecting title to the estate or interest in the land; (n) any governmental agency or governmental irtstruxrteritaity which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the indebtedness secured by the insured mWgag% or any part thereof. whether named as an inspired herein or not; (ii) the parties designated in Section 2(a) of these Conditions and Stipulations. (b) "insured claimant'% an insured claiming loss or damage. (c) ..knowledge. or ..known.•: actual knowledge. not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the tand. (d) "land": the land described or referred to in Schedule A. and improvements affiixed thereto which by Law constitute real property. The term ..1and.. doesnd indudeary property beyond the linesd theareadescribed or referred to in Schedule A, nor any right, tdkx interest, estate or easement in abutting streds, road,, avenues. akys, lanes. ways or w4erways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (e) "mortgage'.: mortgage. deed of trust. trust deed, or other security instrument. (1) "public records": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. Wah reseed to Section l(a)(rv) of the Exclusions From Coverage. "public records" shad also include environmental protection liens filed in the records of the clerk of fine United States district court for the district in which the land is located. (g) "unmarketabdity of the title": an alleged or apparent matter affecting the title to the land. not excluded or excepted from coverage. which would entitle a purchaser of the estate or interest described in Schedule A or the insured mortgage to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE (a) After Acquisition of TdkL The coverage d this policy shall continue in force as of Date d Policy in favor of () an insured who acquires all or any part of the estate or interest in the land by foreclosure, trustee's sal& con- veyance in lieu of foreclosure; or other legal manner which discharges the lien of the v%sstued mortgage. (i) a transferee of the estate or interest so acquired from an insured corporation, provided the transferee is the parent or wholly - owned subsidiary of the insured corporation, and their corporate successors by operation of law and not by purchase. subject to any rights or defenses the Company may have against arty predecessor rtsuueds. and fi) any govern- mental agency or governmentd insuumentafay which acquires an or any part of the estate or interest pursuant to a contract of insurance or guaranty insur- ing or guaranteeing the indebtedness secured by the insured mortgage (b) After Conveyance of Ti fe. The coverage of phis policy shad continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate of interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured. or only so long as the insured shall have liability by reason of covenants of war- ranty made by the insured in any transfer or conveyance of the estate of n- lerest. This policy shag not continue in force in favor of any purchaser from the insured of either () an estate or interest in the land. or () an indebtedness secured by a purchase money mortgage given to the insured. (c) Amount of Insurance. The amount of insurance after the acquisition or after the conveyance shall in nedher event exceed the Least d: (,) the Amount of Insurance stated in Schedule A. (ii) the amount of the principal of the indebtedness segued by the insured mortgage asd Date of Policy. merest thereon. expenses of foreclosure: amounts advanced pursuant to the insured mortgage to assure compliance with taws or to protect the lien of the insured mortgage prior to the time of acquisition of the estate or interest in the land and secured thereby and reasonable amounts expended to prevent deterioration of improvements. but reduced by the amount of all payments made; or (w) the amount paid by any governmental agency or governmental instrumentality, d the agency or instrumentality is the insured claimant, in the acquisition of the estate or interest in satisfact Ka.�f its insurance contract or guaranty. f ' 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The insured shad notify the Company promptly in writing (i) in case of any litigation as set fortis in Section 4(a) below. (i) in case knowledge shall come to an insured hereunder of any claim o1 title or interest which is adverse to the title to the estate or interest or the lien of the insured mortgage, as in- surod, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (u) d title to the estate or interest or the lien of the insured mortgage. as rtstued. is rejected as unmarketable If prompt notice shad not be given to the Company. then as to ffne insured all liabddy of the Company shad terminate with regard to the matter or matters for which prompt notice is required. provided, howeveti that failure to notify the Com- pary shall in no case prejudice the rights of any insured under this policy unless the Company shad be prejudiced by the failure and then only to The extent of the prejudice: 4. DEFENSE AND PROSECUTION OFACnONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the oplrorts contained in Section 6 of these Conditions and Stipulations, the Company. at its own costand without unreasonable delay. shall provide for the defense of an insured in litigation n which any third party asserts a darn adverse to the title or interest as insured, but only as to those stated causes of action alleging a detect. lien or encumbrance or other matter insured against by this policy. The Company shag have the right to select counsel of its choice (subject to the right of the insured to object far reasonable cause) to repre- sent the insured as to those stated causes of action and shad not be liable for and will not pay the fees of arty other counsel. The Company win not pay any fees. costs or expenses incurred by the insured in ffte defense of those causes of action which allege matters not insured against by this policy. (b) The Company shad have the right. at its own cost, to institute and prosecxuteanyaaion or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the tale to the estate or interest or the lien of the insured mortgage, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy. whether or nit it shall be liable hereunder. arid shad not thereby concede Gabildy or waive any provision of this policy. It the Company shad exercise its rights under this paragraph. it shad do so ddigeraty. (c) Whenever the Company shad have brought an action or interposed defense as required or permitted by the provisions of this policy. the Com- pany may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right. in its sole dscrelion. to appeal from any adverse judgment or order (d) In an cases where this policy permits or requires the Company to pro- secute or provide for the defense of any action or proceeding. the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein. and permit the Com- pany to uses at its option, the name of the insured for this purpose. Whenever requested by the Company. the insured. at the Company's expense; shad give the Company all reasonable aid () in any action or proceeding, securing evidence, obtaining witnesses. prosecuting or defending the action or pro- ceeding. or effecting settlement. and (i) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the Idle to the estate or interest or tfte Gen d the insured mortgage, as insured. If the Company is prejudiced by the failure of the insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend. prosecute; or con- tinue arty litigation, with regard to the matter or matters requiring such cooperation. 5. PROOF OF LASS OR DAMAGE. In addition to and after the mottoes required under Section 3 of these Con- ditions and Stipulations have been provided the Company. a prod of lass or damage signed and sworn to by the insured claimant shad be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage The prod of loss or damage shag describe the defect in, or lien or encumbrance on the tdle or other matter insured against by this policy which constitutes the basis of loss or damage and shad state, to the extent possible, the basis of calculating the amount of the loss or damage.11 the Company is prejudiced by the failure of the in- sured claimant to provide the required prod of loss or damage; the Com- pany's obligations to the insured under the policy sham terminate, including any liability or obligation to defend. prosecute. or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In addition. the insured claimant may reasonably be required to submit to examination under oath by arty authorized representative of the Company and shall produce for examination. inspection and copying. at such reasonable Imes and places as may be designated by any authorized representative of the Company, all records. books. ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Polo, which reasonably pertain to the loss or damage. Further. if requested by any author- ized representative d^Company, the insured claimant shag grant its per- mission. in writing. I -Jy authoraed representative of the Company to corax,ed our nail pipe of oaar sheer LAWYERS %-ITITLE INSURANCE ORPORATION National It Ridd, Virginia AMERICAN LAND TITLE ASSOCIATION LOAN POLICY 1992 issued At: Continental Lasgyers Title Company 18551 Von Karmsan, Suite 100, Irvine, California 92715 L15 9 --------------------------------------------------------------------------------------- OAR POLICY AM UNr OF PRE IIIM DATE OF POLICY N ,EER NU BM INS RkNCE- ---•--------------------------------------------------------------------------------------------- 9402218-A 135-01-208-638 $35,000.00 $150.00 08/21/96 at 4:30pm 1. NAME OF INK=: 2. THE ESTATE OR INTEREST IN THE LAND WHICH IS COVED BY THE IMURED M?IGAM IS: A C0NXKINIZM, as defined in Section 783 of the California Civil Code, in fee 3. TITIE m uE ESTATE Cat INTERmT IN THE IAw IS VESTED IN: Gregory Scott March, a single man A Deed of Trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount: $35,000.00 Dated: August 5, 1996 Trustor: Gregory Scott Mux h Trustee: The City of Huntington Beach, a municipal aorparatfan Beneficiary: The Redevelopment Agency of the City of Huntington Beach, a public body corporate and politic Recorded: August 21, 1996 Instrument No. 96-0429654 of Official Records AL"I LOAN POLICY-19'%wO2 Policy No.:135-01-208-638 - Order No.: 9402218-A SC1ETJf]LE A CURMS3ID A Condcminiurn a mprised of: PAFOM 1: An undivided one twenty Second (1/22) fee simple interest as a tenant in cx man in and to all of the Cmnm Area defined in n3claration referred to below and described in the Condor iniun 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 Oranw County, over Lot 1 of Tract No. 1482.8, in the City of Huntington Beach, County of Orange, State of California, as per map filed in Bode 706, Pages 27 to 29 of Mlislellaneous Naps, in the office of the Coounty Recorder of said County. Dooepti ng eerefran all oil, petroleum, aq*altun, gas, minerals and other hydrocaicfion �., as reserved in deed ree=Ied August 16, 1921 in Hook 401, Paces 356 of Deeds, and in various other deeds of reaorrd. PAFiCM 2: Unit No. 18 consisting of certain airspace and surfaae elements, as shown and described in the Gbcrl xninium Plan referred to in Parcel 1 above. ��T Nan--ewU=sive easer is for acoess, ingresv, 4Wess, use, enjoyment, drainage, encroachment, support, maintenance, repairs. and for other purrposes, ail as described in that certain Declaration of Covermts, Cbnditions &nd Restrictions and iieservation of Easemits far Pacific Park Villas, remrd d August 25, 1994 as Instnnent No. 94-0525336 of Official Records. PAFd= 4: Exclusive its alpartenant to Parcels 1 and 2 referred to above, for balcony or Patio purposes, over the areas defined, depicted and assigned on the Plan. AL'�.I LOAN POLICY-19�or2 POLICY ND.:135-01-208-638 OFUM NO.: 9402218-A SCHEDULE B PART I F'TIOM F IM COVERAGE A. Property taxes, including general and gx3ci al taxes, personal property taxes, if any, and arry assessments collected with taxes, to be levied for the fiscal year 1996-1997 which are a lien not yet payable. D. Supplemental or escaped assessments of property taxes, if any, assessed pursuant to the Rev-ruie and Taxation Cbde, of the State of California. I. The matters containad in a document entitled "Memorandum of Disposition and Development Agreement" recorded January 3, 1994 as Instrument No. 94-OW1007 of Official Records. Reference is made to said document for Rill particulars. 2. The fact that the cxwexsship of said land does not include rights of access to or from the street or highway abutting said land, such rights havirg been relrq :{shed by the map of said Tract. Affects: Talbert Avenue; Joyful Lane and Happy Drive 3. Covenants, eonditicus and restrictions (deleting therefrom any res'tr'ictions based on rye, dolor or creed) as set forth in the document Recorded: February 24, 1994 Instrument No. 94-0137068 of official Records Said covenants, conditions and restrictions M)vide that a violation thereof shall not defeat th3 lien of any mortgage or deed of trust made in good faith and for value. 4. Matters in an Instnment which, among other things, contain or provide for Liens and the subordination thereof, provisions relating to Partition, Restrictions on severability of CtirQonent Interests, avvenants, CbrxUtic ns and fictions, a provision that no violation thereof and no enforcement of any Lien provided for hexein shall defeat or mender invalid the Lien of a Mortgage or Deed of Trust made in good faith and for value, but which however, do cot contain Restrictions based on race, color or creed. R©corrded: August 25, 1994 instrument No. 94-0525336 of Official Records aMM NO.: 9402218-A 'UOU•q r Q'I 5. The matters c ntain3d in a document entitled "Cmum Facilities Use and Maintenance Agreement For Pacific Park Villas" re=xled August 25, 1994 as Instrument No. 94-0525337 of Official Faecoxds. Reference is made to said d=mertt for full particulars. 6. An easeumt for the purpose shown below and rights jrcidental thereto as set forth in a document Granted to: Southern California Edison Qompany Purpose: Public utilities Fecorded: October 27, 1994 instrument No. 94-0632840 of Official Records Affects: the Southerly 50 feet of the Easterly 4 feet of Lot 1 7. A Deed of Trust to secure an indebtedrt—m.s in the amount shorn below, and any other obligations secured thereby ]mount: $140, 500.00 Dated: August 6, 1996 Trustor: Gnegozy Scott Murch, a single man Trustee: Hartford Escrow, Inc., a California corporation Beneficiary: Mission Hills Mortgage Corporation, a California corporation Recorded: August 21, 1996 Instzument No. 96-4429653 of Official records The following are attar -ed to and made a part of this policy: 100 110.9 116.2 tb Date typed: 09/05/96 Plats enclosed %WWI ALTA LOAN POLICY-1992 POLICY NO.: 135-01-208-638 CEDER NO.: 9402218-A �� IN ADDITION TO THE MATTERS SET FORTH IN PART I OF THIS SCHEDULE, THE TITLE TO TH ESTATE OR INTEREST IN THE LAID DESCRIBED OR REFERRED TO IN SCHEDULE A IS SLUEBT=01 TO THE FALL WIN13 MATTERS, IF ANY BE SHIOM3, BUT THE COMFIANY ITS THAT 'SSE MATTERS ARE SLMBCFDILNATE TO THE LIEN OR C29ME OF THE INSURED MORTGAIGE UPON THME ESTATE OR INTEREST: 6. Covenants, conditions and restrictions (deleting therefrom any restr based an race, color or creed) as set forth in the doe nment Recorded: August 21, 1996 Instrument No. 96-0429655 of Official Records ENDORSEMENT TITLE INSURANCE OOR1K)RATi CLTA FOR m 100 Order No.: 9402218-A Attached to Policy No.: 135-01-208-638 The Oampany hereby insures against loss which said Insured shall sustain by raLsan of the following matters: I. Any incorrectness in the assurance which the C tmpany gives: a. That there are no covenants, condition, or restrictions under which the lien of the Mortgage referred to in Schedule A can be art: off, subordinated, or otherwise impaired; b. That theme are no present violations ai said land of any enforceable co wants, conditions, or restrictions,- C. That, except as s'-own in Schedule B, there are ro encroachments of buildings, sires, or improvements located on said land on adjoining lands, nor any enc..xoac meets onto said land of buildings, str , or improveamts located on adjoining lards. 2. a. Any future violations on the land of fury covenants, conditions, or re- strictions occurring prior to acquisition of title to the estate or interest referred to in Schedule A by the Insured, provided such violations result in inpainT emit or loss of the lien of the aor't-MW referred to in Schedule A, or result in impairment or loss of the title to the estate or interest referred to in Schedule A if the Insured shall acquire such title in satisfaction of the indebtedness secured by the insured mortgage; b. ikherketability of the title to the estate or interest referred to in Schedule A by reason of any violations on the land, occurring prior to acquisition of title to the estate or interest referred to in Schedule A by the insured, of any covenants, errtlitions or restrictions. 3. Damage to existing ng improverments, including g lawns shrubbery or trees: a. which are located improvements enc�'oach upon that p� of the lard subject to any eassemmt shown in Schedule B, which damage results from the exercise of the right to use or maintain such easement for the purposes for which the same was granted or reserved. b. resulting frcm the, exercise of any right to use the surface of said land for the extraction or development of the minerals excepted from the description of the lard or shown as a reservation in Schedule B. ' 4. Any final ca- t order or judgment requiring the removal from any land adjoining the land of any encroachment shown, in Schedule B. Wherever in this endorsement any or all the words "covenants, corhditions, or restrictions- appear, thus shall not be deemed to refer to or include the terns, covenants conditions or restrictiorm. contained in any lease. For purposes of this esdors�e enrrt, the words "covenants", "conditions" or "restricti.oris" Shall not be deemed to refer to or include any c overonts, coalitions or restrictions relating to environmental protection, except to the extent that a notice of a violation or alleged violatai n affecting the land has been recorded in the public records at Date of Policy and is not e.-< beci in Schedule B. This endorsemerht is mk-7de a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neitter modifies any of the terms and provisions of the policy and any prior heats; nor does it extend the effective date of the policy and any prior endorsements, rx3r does it increase the face amount thereof. IN WITNESS WHEREOF, the Cw parry has caused this Endorsement to be signed and sealed, as of the date set forth below, to be valid when countersigned by an authorized officer or agent of the CuTpaYy, till in accordance with its By -Laws. Date: August 21, 1996 Ismied at: Irvine, California LAWYERS TITLE ITS CXIUX iATICN = - 9T' Janet A. Alpert - President � r Autxxized Officer or Agent John M. Garter - Secretary 09 ENDORSEMENT CLTA FCi 110.9 Order No.: 9402218-A Attached to Policy No.: 135-01-208--638 Tho insurance afforded by this ent is only effective if the land is used or is to be used primarily for residential pur oases. Ttr: Company insures the i zsZ red against loss or damage sustained by reason of lack of priority of the lien of the insured mortgage over: (a) any envitnnnantal protection lien which, at Date of Policy is recorded in those records es! under state statutes at Date of Policy for the purpose of i. part xj constructAve notice of matters relating to real property to pmmhasers for value and without knowledge, or filed in the records of the cleric of the Uhited States District Court for the district in which the land is located, except as set forth in Schedule B; or (b) any envirammtal pero ctian lion provided for by any state statute in effect at Date of Policy, except environmental protection liens provided for in the following state statutes: Nom This is made a part of the policy and is subject to all of the terms and provisions thereof, and of any prior endarre----ts thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any endorsements, nor does it extend the effective date of the policy ar4 any prior er0armnents, nor does it increase the face amount thereof. . IN W11NFSS VEMMF, the Company has caused this Flhdor5en nt to be signed and sealed as of the date set forth below, to be valid when countersigned by an aut�officer or agent of the Wrpany, all in a==darne with its By -Laws. Date: 08/21/96 cbu.•�ttersigned by: Janert A. Alpert - President Issued at: Irvine, California ENDORSEMENT CLTA Ft! 116.2 Attached to Policy No.: 135-01-208-638 Order No.: 9402218-A Ttr-. Carpany assures the Lrmmed that at the date of this Policy the dimensions of the exterior boundary of the lion Area referred to in Schedule A of this Policy which is also the exterior boundary of the project, are correctly shown on that map recorded in book 706, pages 27 to 29 of Maps in the office of the County Recorder of said Clounty. Ttxa Company further assures the Insured that the estate in said land xeferred to in Schedule A includes a residence within the project boundaries, which residence is designated as Unit 18, as shown on the map recorded August 25, 1994 as Instrument No. 94-0525335, of Official Rxm-3s of C ondeminiu:� in the office of the County Recorder of said County, nty, and known as: 18051 Joyful Lame #102 Huntington Beach, California The CaTany hereby insures the Insured against loss which the insured shall sustain in the event that the assurance herein shall prom to be irxxnnz c-t. This endoxBear - ht is made a part of the policy and is subject to all of the terms and px risions thereof and of any prior • tears -rents thereto. accept to the extent expressly stated, it neither modifies any of the teens and provisions of the policy and any prior es- , nor does it extend the effective date of the policy and any prior errdorsec%ts, car does it increase the face a unt thereof. IN WITNESS WMIDDF, the Company has caused this en3orsgrent to be signed and sealed as of the date set forth below, to be valid when counter -sighed by an autharized officer or agent of the Crnrpany all in accordance with its By -Laws. Date: 08/21/96 Janet A. Alpert - President John M. Carter - Secretary Issued at: Irvine, California . CONDOMINIUM PLANS FOR WI"i 70 W a' LOT 1 Of TRACT 1482a. IN THE CITY OF HUNTIHCTON BEACH. COUNTY OF ORANGE.. STATE OF CAUMANIA. AS SHOWN ON A MAP RECORDED IN MAP GOOK 706. PACES 27 THRCUCH 29. INCLUSIVE. OF MISCELLANEOUS MAPS. 04 THE OFFICE OF THE RECORDER CIF SAID COUNTY. PHASE ONE OF PACIFIC PARK VILLAS CURVE DATA CURVE DELTA RADIUS LENGTH TANGENT 13' 3`30' 327.00' aa,W 44.67• 2 15'34'2a' 273.00' 74.21' 37.33 a4'S3'10' 23.00` 38.03' 2Z99` • 0S7Z'36' 327.00' 3134' 16.76' s 15'3415' 300.00' 51.53' 0.02' 6 1573S30' 300.00' a1.46' 40.96' OT31701' 327.00' 4&61' 24.35' 09'40!54' 327.00' 33.26` 27.69' MONUMENT NOTES 1. 0 INDICATES FOUND MONUMENTS AS NOTED 2. N INDICATES FOUND SPIKE AND WASHER NO TAC. NO REf. HELD TO ESTABLISH THE CENTERUNES Of JOLLY LANE. HAPPY DRIVE. AND JOYrUL LANE REPLACED WITH SPICE AND WASHER TAGGED LS. 5749. 3. D INDICATES 2' IP TACO L S. 3742 OR SPICE AND WASHER TAGGED L.S. 5749 OR LEAD AND TACK TAGGED LS. 5749 TO BE SET BEFORE THE RECOP.OATION OF THIS MAP. 4. A INDICATES a' SPICE & WASHER STAMPED L.S. 5749 TO BE SET WITHIN 90 DAYS AFTER ACCEPTANCE Of IMPROVEMENTS CONDOMINIUM PLANS FOR SHEET It OF 32 LOT 1 OF TRACT .4828. IN THE CITY OF HUA TINGT0N BEACH. COUNTY Or ORANCF. STATE OF CALIFORNIA..AS SHOWN ON A UAP RECORDEO IN UAP ROOK 705. PACES 27 THROUGH 29. INCLUSIVE. OP MISCULANEOUS UAPS. IN THE OFFICE OF THE RECORDER OF SAIQ COUNTY. PHASE ONE OF PACIFIC PARK VILLAS a a 22MKr*KCCDXI 21 _ 20 1.00' s-asTyz7- 6119' n 6].19' S E9'40'2y' E 9 11 12 13 14 10 15 0 ri •4 5 3 6 WW "zz• 60.41' 25.00' �7.64' SCALE: 1 "=40' laa mwe" "CAT" to"m uvm IMT. NO" �" snUlmus u u� %ft?. ASSOCIATION PROPERTY, g m*a4o raq 0 r b L m' UNI'i NUMBERS & TIES "300"mrmn""" u"'su'f!s Jos 140. 4283 HALL & FOREMAN. INC. CONDOMINIUM PLANS FOR SHEET 16 OF 32 LOT t OF TRACT 14825, IN THE CLTY OF 14tNT%NGTON BEACH. COUNTY OF ORANGE. STATE OF CALIFORNIA. AS SHOWN ON A MA? RECORDED IN MAP BOOK 706. PACES 27 THROU01 29. 1NCLUSI E. OF MISCELLANEOUS DAPS. W THE CFFICE OF THE RECORDER OF SAID COVNTY, PHASE ONE OF PACIFIC PARK VILLAS u bi u r?i 13.r /� I! r r ' I! ST"s "i II e.s• I !I 1�►I "L l .il b tl Y °•I I It �Ae' Cor rl tl 11 a za.s I I t.4• I SCALE 1'-10' SEE WETS 24-31 FCR SEC1I0KS AN O ELEVAflaNS. GARAGE LEVEL UNIT 12 UNIT 18 F� UNIT 20 IHCICATE3 L"73 Ci VERTICAL ,LOB NO. 4285 HALL, & FOREMAN INC: SHEET 22 OF 32 CONDOMINIUM PLANS FOR LOT 1 OF TRACT 1432d. IN THE CITY OF HU4 i•NGTON BEACH. COUNTY OF ORANCF. STATE OF CAUFORNIA. AS SHOVOW ON A MAP RECORDED IN MAP BOCK 708. PAGES 27 THROUGH 29. INCLUSIVE. OF +DISC-rLLANCOVS LIAM W THE OFFICE OF THE RECORDER OF SAID COUNTY. PHASE ONE OF PACIFIC PARK VILLAS a � 1ST LEVEL UNIT 18E" co. UNIT 20 PATIO z.tr j I y I ! II I Ia N !I I --✓ ', 55 II "� 11 w "� a II BASELP4E I 11.7 2 C1 I + r PATIO �t I ALL LIKES l+TMSECT I AT W. •T. CNI 133'. SATES LOATS Or W-4TICAL ----- VANAft"S KM $ECTIMS SCALE 1'=iQ• a 11 SEE SHEETS 2e-31 FOR 310 eNs Am MEvAna+s 6. 4 IL k 1 ...� �.ar CONDOMINIUM PLANS FOR SHEET 25 of 31 LOT 1 OF TRACT 14828. IN THE Orr OF "TINCTON $EACH. C"TY OF ORANGE. STATE CIF CALIFORMA. AS 'SHOYM ON A IJAP RECORDED IN MAP BOOK 706. PACES 27 THROUGH 29. INCLUSIVE. OF LuSCELLANEOUS MAPS. W THE OrnCE OF THE RECORDER OF SArO COUNTY PHASE ONE OF PACIFIC PARK VILLAS u _ Il � lip. !1 it ,n o I i 7 ix i! --- — Sk5 11I it js II y n = ll = it li (! L s.r it II �.ar 11 bit u Il d � it LCALE 1'-10* UXE $ears 2i-31 fOR SECT MS AND MADOP11 2ND LEVEL UNIT 12 0, UNIT 18 4" E: UNIT 20 A[L tl+E'S amni SicT AY W. ♦S. DR 1". I aura I.MTS ar v MAL VAMATKM PER SECTKUS JOB NO. 4285 HALL k FOREMAN INC. 1 CONDITIONS AND STIPULATIONS—CONT11" -D examure, mspett and COPY all records. liiiiio�, ledgers• checks, cor• S LIMITATION & AIBiLITY. resp<xrdenceand memoranda in the custody orcontrotof athrrd party, which (a) It the Company establishes the trite. or removes the a,reged delec!. reasonably pertain to the joss or damage. AA information designated as con- lien or encumbrance. or Clues the lack of a right of accesslo or irom the land. f+derittJ by the insured claimant provided to the Company pursuant to thrs or cures the claim of unmarketabrirty of title. or otherwise establishes the Le-i Section shall not be disclosed to others unless. to the reasonable judgment of the insured mortgage. all as insured, in a reasonabty cw g-_nj manner by of the Company, it is necessary in the adm+n stratton of the claim. Failure of any method, including litigation andthe completion of any appeals therefrom. the insured claimant to submit for examrnati3n under oath, produce other ,t shall have fully performed ds obligations with resDect to that matter and reasonably requested information or grant permission to secure reasonably shall not be liable for any loss or damage caused thereby necessary information from third parties as required inthis paragraph. unless (b) In the event of any litigation, including Ltrgatron by the Compa-*y prohibited by law or governmental regulatior, shall terminate any lability of or with the Company's consent, the Company shall have no Crab Illy for loss the Company under this policy as to that claim. or damage until there has been a final determination by court of cornpetert 6- CPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; jutisdretton. and drsposd on of all appeals therefrom, adverse to the title or TERMINATION OF LIABILITY. to the lien of the insured mortgage, as insured. Ir case of a claim under this policy, the Company shall have the follow (c) The Company shall not be liable for loss or dm aagetoany+nswed ing addrtrOnaf options. (a) To Pay or Tender Payment of the Amount of Insurance or to lot lia txt4y voluntarily assumed by the insured in settling any darn or sun w4hou.1 the prior vemen consent of the Company Purchase the Indebtedness. n f the (t) to pay or tender payment of the amount of insurance under (d) The Company shall not be liable for: (r) any indebtedness created this I. together with costs. attor fees and ex policy og any expenses incurred subsequent to Date of Policy except for advances made to protect the lien of the insured mortgage and secured thereby and reasonable amounts ex - by the insured claimant, which were authorized by the Company, up to the time of oaymenl or tender of payment and which the Company is obligated pended to prevent deterioration of improvements; or (r) construction loan 10 pay: or advances made subsequent to Date of Policy. except construction loan ad- (ii) to purchase the indebtedness secured by the insured mortgage trances made subsequent to Dare of Policy for the purpose of frnarYCt Din (or the amount owing thereon together with any costs. attorneys fees and whole or in part the construction of an improvement to the lard which at of Policy were secured by the insured mortgage and which the insured was expensen incurred by the insured claimant which were authorized by the com• pany up to the time of purchase and which the Company is obligated to pay. and continued to be oblga!ed to advance at and after Dale of Policy If the Company ofterstopurchase the indebtedness asherein provided. 9. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION the owner of the indebtedness shall transfer, assign, and convey the in- OF LIAB(LRY. debted-iess and the insured mortgage. together with any collateral security. (a) All payments under this policy. except payments made for costs. to the Company upon payment therefor. attorneys' fees and expenses. shall reduce the amount of the insurance pro Upon the exercise by the Company of either of the options provided tanto. Howr,Sver any payments made prior to theacqutsdionof We totheestale for in patrag•aphs a() or (r), all liability and othgalions to the insured under or interest as provided in Section 2(a) of these Conditions and Srrputalrons this pol ty- other than to make the payment required in those paragraphs. shay not reduce pro tanlo the amount of the insurance afforded under this shalf terminate, including any liability or obligation to defend, prosecute, or policy except to the extent that the payments reduce the amount of the in - Continua any litigation, and the policy shall be surrendered to the Company debledness secured by the insured mortgage. for cancei non. (b) Payment in part by any person of the pane pal of The indebtedness. (b; To Pay or Otherwise Settle With Punies Other than the Insured cc arty other obligation secured by the insured mortgage, or any voluntary or With the Insured Claimant. pa-tial satisfaction or release of the insured mortgage, to Me extent of the (i) to pay or otherwise settle with other parties for or in the name payment. satisfaction or release, shall reduce the amount of insurance pro of an insured claimant any claim insured against under this policy, together onto. The amount of insurance may thereafter be increased by accruing in- with any costs, attorneys' fees and expenses incurred by the insured dai• frtrest and advances made to protect the lien of the insured morgage and mant which were authonized by the Company up to the time of payment and secured thereby, with interest thereon, provided in no event shall the amount which the Compary is obligated to pay; or cf insurance be greater than the Amount of Insurance stated in Schedule A (ii) to pay or otherwise settle with the insured claimant the loss or (c) Payment in full by any person or the voluntary salisffaction or release damage, provided for under this policy, together with any costs, attorneys' ct the insured mortgage shall terminate al! liability of the Company except fees and expenses incurred by the insured claimant which were authorized as provided in Section 2(a) of these Conditrons and Strputat0n& by the Company uplothetimeofpayment and which theCompanyisobigated 10. LIABILITY NONCUMULATIVE. to pay. If the insured acquires title to the estate or interest in sat,s!aclron of the Upon the exercise by the Company of either of the options provided indebtedness secured by the insured mortgage, or airy part thereof, rl is for in paragraphs b(°) or (ii), the Company's okligations to the insured under expressly understood that the amount of insurance under this policy shall this policy for the claimed loss or damage, ott wir than the payments required to reduced by any amount the Company may pay under any policy inuring to be made. shall terminate, including any liability or obligation to defend, a mortgage to which exception ts taken in Schedule Borlowhrchtheinsured prosecute or continue any litigation, has agreed, assumed, or taken subject, or which is hereafter executed by 7. DETERMiNATION AND EXTENT OF LIABILITY. an nnsured and which is a charge or lien on the estate or interest described or referred to in Schedule A. and the amount so paid shall be deemed a pay - This policy is a contrail of indemnity against actual monetary foss or under this policy. damage sustained or incurred bythe insured claimant who has suffered loss 11. PAYMENT OF LOSS. 11. or damE-ge by reason of matters insured aga nst by this policy and only to (a) Nopaymeni shall be made without producing th�spolicy for endorse - the extent herein described. The liability cc ribedthe Company under tits policy shah not exceed the merit of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the least of (1) the Amount of Insurance stated it Schedule A. or, it applicable. Company (b) When liability and the extent of loss of damage has been clef Melly the amount of insurance as deigned in Section 2 (c) of these Conditions the ant a tint in Eced accordance with these Conditions and Stipulations. the loss or damage Stiat stall be payable within 30 days thereafter. (ii)the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided urder Section 8 of these Conch- 12. SUBROGATION UPON PAYMENT OR SETTLEMENT. ,ions and Stipulations Or as reduced under Section 9 of these Conditions and Whenever The Company's y ht Subrogation. the Company shall have settled and paid a claim under this Stipulx atti,s, at the time the loss or damage insured against by this policy any pottof an right subrogation shall vest in the Company unatleged by any xcurs,. -o_ gether with interest thereon; or act of the insured clamant. a ,,, the difference between the value of the insured estate or () The Company shall be subrogated to and be entitled to all rights and nwrest as insured and the value of the insured estate or interest subject to remedies which the insured claimant would have had against any person The defecl. hen or encumbrance insured aga nst by this port. o• property inrespect totheclaim had this policy not been issued Ifrequested (b) In the event the insured has acquired the estate or interest in the by the Company, the insured claimant shall transfer to the Company as rights manner descrit;ed in Section 2(a) of these Conditions and Stipulations or has a'td remedies against any person or property necessary in order to perfect ronvered the tit'e. then the liability of the Company shall continue as set forth this right of subrogation. The insured claimant shall permit the Company 10 n Section 7(a) of these Conditfons and Stipulations sue. compromise or settle in the rtame of the insured claimant and to use (c) The Company will pay only those costs, attorneys fees and expenses tree name of the insured claimant in any transaction or Ir, rgalron rnvohnng these .ncurred in accordance wdh Section 4 of thM Conditions and Stipulations. rights or remedies. 11 a payment on account of a claim does not Iuty cover the loss of the eo WAL ed on rernsMW of COW sneer CONDITIONS AND STIPULATIONS —CONTINUED insured claimant, the Company shall be subrogated to all rights and remedies or less shall be arbitrated at the option o' either the Company or the insured. of the insured claimant after the insured claimant shall have recovered its prin- All arbitrable matters when the Amount of Insurance is in excess of $1.000.000 opal, interest. and costs of collection, shag be arbitrated only when agreed to by Both the Company and the n- (b) The Insured's Rights and Limitations. sured. Arbitration pursuant to this policy and under the Rules in effect on the Ndiwithstanding the foregoing, the owner of the indebtedness secured date the demand for arbitration is made or, at the option of the insured, the by the insured mortgage, provided the priority of the lien of the insured mor- Rules in effect at Date of Polity shall be binding upon the parties. The award tgage or its enforceability is not affected, may release or substitute the per- may include attorneys' fees only if the laws of the state in which the land is sonal liability of any debtor or guarantor, or extend or otherwise modify the located permit a court to award attorneys fees to a prevailing party. Judg- terms of payment, or release a portion of the estate or interest from the lien ment upon the award rendered by the Arbdrator(s) may be entered in any of the insured mortgage, or release any collateral security for the indebtedness. court having jurisdiction thereof. When the permitted acts of the insured claimant occur and the insured The law of the silus of the land shall apply to an arbitration under the has knowledge of any claim of title or interest adverse to the title to the estate Title Insurance Arbitration Rules. or interest or the priority or enforceability of the lien of the insured mortgage. A copy of the Rules may be obtained from the Company upon request. as insured, the Company shall be required to pay only that part of any losses 14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. insured against by this policy which shall exceed the amount, d any, lost to (a) This policy together with all endorsements. if any, attached hereto the Company by reason of the impairment by the insured claimant of the Com- by the Company is the entire policy and contract between the insured and pany's right of subrogation. the Company. In interpreting any provision of this policy, this policy shall be (c) The Company's Rights Against Non-insured Obligors. construed as a whole The Company's right of subrogation against non-insured obligors shag (b) Any claim of loss or damage. whether or not based on negligence, exist and shall include, without limitation, the rights of the insured to indem- and which arises out of the status of the lien of the insured mortgage or of nities, guaranties, other policies of insurance or bonds, notwithstanding any the title to the estate or interest covered hereby or by any action asserting terms or conditions contained in those instruments which provide for subroga- such claim, shall be restricted to this policy. lion rights by reason of this policy. (c) No amendment of or endorsement to this policy can be made ex - The Company's right of subrogation shall not be avoided by acquisition ceps by a writing endorsed hereon or attached hereto signed by either the of the insured mortgage by an obligor (except an obligor described in Sec- President, a Vice President, the Secretary, an Assistant Secretary, or validating tion 1(a)(ii) of these Conditions and Stipulations) who acquires the insured officer or authorized signatory of the Company. mortgage as a result of an indemnity, guarantee, other policy of insurance, 15. SEVERABILITY, or bond and the obligor will not be an insured under this policy, notwithstan- In the event any provision of this policy is held invalid or unenforceable ding Section 1(a)() of these Conditions and Stipulations. under applicable law. the policy shag be deemed not to include that provi- 13, ARBITRATION sion and all other provisions shall remain in full force and effect. Unless prohibited by applicable Law. either the Company or the insured 1e. NOTICES, WHERE SENT. may demand arbitration pursuant to the Title Insurance Arbitration Rules of Al notices required to be givers the Company and any statement in writing the American Arbitration Association. Arbitrable matters may include, but are required to be furnished the Company shag include the number of this policy not limited to, any controversy or claim between the Company and the in- and shall be addressed to the Company at its Corporate Headquarters sured arising out of or relating to this policy, arry service of the Company in 6630 West Broad Street, Richmond, Virginia 23230. Mailing Address: P. Q connection with its issuance or the breach of a policy provision or other obliga• Box 27567, Richmond Virginia 23261, or to the Company at its Pacific States lion. All arbitrable matters when the Amount of Insurance is $1,000000 Offic0. 10 Universal City Plaza, 23rd Floor, Universal City, CA 916011 IN WITNESS WHEREOF, the Company has caused this policy to be signed and seated, to be valid when countersigned by an authorized officer or agent of the Company, all in accordance with its By -Laws. Attest: /J�� / /..<;&- Secretary Counter signed by:, Q- A"-U)- Authorized Officer or Agent `s,.=u..y`� lawyersTitleInsur-ance Corporation BY: EEE tots President POLICY OF TITLE INSURANCE A WORD OF THANKS... As we make your policy a part of our permanent records, we want to express our appreciation of this evidence of your faith in Lawyers Title Insurance Corporation. There is no recurring premium. This policy provides valuable title protection and we suggest you keep it in a safe place where it will be readily available for future reference. If you have any questions about the protection provided by this policy, contact the office that issued your policy or you may write to: Consumer Affairs Department Lauu ersZitleInsurance o&poration PO. Box 27567 Richmond, Virginia 23261 4 19093 eac ou evar • urfing on Beac , 648 & (714) 84 0� A7C �4 843-9949 Eassounian Capital venture Escrow Officers Linda J. Campbell Froperty Address 18051 Joyful Lane #102 Huntington Beach, Ca. 92648 REF. no. AMOUNT 1305 Delinquent Taxes Continental 1,675.90 Aa 4 Y S. TYPE or LW►N Y��C•2a.�y± 1. ❑rEU1 2,E]rA ]► 3.®400M. UHINs. V-'{�Y1 77T.R - : t. J • �ARMHE CF- I�IJSrr7IM .c714� t c(]vM 5.00oem ;t a. >•ua PAmER � LOAN Mu,msi TE, } Y f 9457-C 24151067 .. .......--- o a. NOIiTfl1m 1N.Smw3 CASE NU1a3FJt :t t : -- Ss s C. NMI This fora is furnished to give you a statement of actual settlement cents. Amounts paid to and by the settlement agent am sham. Items marked (p.o.o.) were paid outside of closing; they are shown hen for infomational purposes and are not included in the totals. D. HAMS O:' BORROWERx E. Pic Or smime Gregory Scott rb=h Ssssoanian Capital venture 18051 Joyful Lane #102 16373 Bolsa Chico Street Huntington Beach, Ca. 92648 Huntington Beach, Ca 92649 F. NAME Cyr LENUtt G. BRCiPE= IGCATIOMI Mission hills Mortgage 18051 Joyful Zane 1102 Jean - Funding Department Huntington Beach, Ca. 92648 1403 North Tustin Ave. #260 Santa Ana, CaWomia 92701 E. arrTrMM?r Aa!n PLACE OF 6SITLMCnC 1. SETTi1M DM TM- 20 ESC -70' im. 19093 BEACH, BLVD. HUNMMW BEAM, CA 92648 08/21/96 a. AUNKART OF aoRAolfER•a 'TRAa8ACT1om E. •OmMART or sBLLEA's TRAESACTIDE 1C0. GRO8:3 AROM4r DUB FROM BORROWERn 400. (ROBS AM= DUE TO NETERl ICI. Contract sale. price $195,000.00 401. Contract sal.. price 195000.00 IC2. Pers-Nal property 402. personal property IC3. Settlement charges to borrower (Lim 1400) 7 648.11 4n. IC4. aoa. 105. 403. Adjustments for items paid bT seller in advance Adjustments for ;teas paid by seller in advance IC6. City rtown/taxes to 404. CLtYACWAAWMS to 10. Counity taxes to 407. County taxes to Ica. Assessments 08/21/96to 09/O1/96 $58.60 408. Assessments 08/21/96ta 09/O1/96 $58.60 let. 409. 110. 410. Ill. 411. 112. 412. 120. f RMH AMOUM DUE FROM SORROWEt 202 706.71 ago. awss Amtwr out To smin 195 058. 60 200. ANDLUM PAID BY CB IN WHALF Cr aCRRCMERI 500. REMXTIONS IN ANOUYr UM TO MUM 201. Aapuiit of earnest money $20,928.64 501. Rxceaa ie see instructions 202. Principal amount of new, loan(@) $140,500.00 5o2. settlement s to caller (tin. 1400) $2,362.10 203. Deleting loanls) taken subject to 503. Cdatirl loans taken subject to 2040 504. Payoff of first wortgacp loan 205. 2nd Trust Deed aty Loan $35,000.00 us. P.12ff of meoond mort loan 206. Additional Deposit $969.07 sob. 207. 507. 205. 505. 2" . 509. Adjustment for items unpaid by seller Adjustment for items unpaid by seller 210. Citj!twn taxes to $10. City/town tazee to 211. County taxes 07/01/96to 08/21/96 $309.00 521. cminty taxes 07/01/96to 08/21/96 $309.00 222. AsesnsxeM■ to 5I2. Assessments to 213. 517. 214. 514. 215. 515. 216. Est. Von-rec=inq costs $5,000.00 sic. Est. Um -recurring costa $5,000.00 217. 517. 219. 520. 219. 319. 220. TOM. PAM BYIFOR BORROWER 202 706.71 s2o. T=L REtxacrral xw-w DUE sar_tne $7,671.10 3C4. CASK AT WMENEMr FROMM BORROMER 900. CASE AT sEl'JTI'Jffidr Tol" M WM= 301. Cave i amount due fret borrower (Line 120) $202 706.71 601. Grave amount due to seller (Line 420) $195,058.60 302. Leas amount paid bx/for borra+er Lana 220) $202,706.71 602. Use reductions in ssount due seller (Lines 7 671.10 303. CASE; ( FROM) ( X ro) aoRJeow37t 50.00 a01. CASH ( X TO) ( IRON) saUM SlB7.387.501 F-,;=-cw Number: 9457-C 7 -7 &ALn/BRC1=1S ColfaSSICK based on prior PAID FRM BORROMPS VJNW AT PAID PROM SELUMIS 1 rUND13 AT Division Of Comaission (line 700) as follouns 701. 702. .03. C=xiseion paid at settlement 100. M49 PAYAWA IN Cotaa=off WM JAW 7 101. Man origination Too 1.50 t $2r107.50 102. Los-% Discount $1t229-38 E03. AWrainal Fee to Mission Hills -LM�ae 2Ep. $300.00 104. Crielit Report to Fos. Tax Service Fee R'Wsiori Hills Mortgage $84.00 voc Lh1d2nEt` Fee mission Hills $425.00 07. Processing Fee Mission Hills M=tgage $495.00 eoe. Document Fee Mission Hills-!t?!jpqe $175.00 sog. Achinistration & F-n� Fee Mission Hills M=tgage $295.00 9io. Flood Certification mission Hi I Is Nqq �ae $100.00 oil. sisal Review Fee RN sal Ccapany 1 $50.00 _100. rrM5 REMMED BY IJMZR TO DR PAID XW AMWXN _!ai. Interest from, 08/21/96 to 09/01/96 1 s 32.7200 Idmy $359.91 902. Mortgage Insurance Premium for month& to 903. Hazard Insurance Premium for years to FST 904. years to 005. 1000. RU13ZVES DEPWITED VITH LENDER 1002. Hazard Insurance Months I per month 1902. Mortgage insurance Months I per month 2003. City property taxes Months I par month 2004. County Property taxes Menthe I per month 1005. AnnLal assessments Months I per month 1906. Months I per month 1001. Months I per month 100e. months I par aDnth 1100. TrTLZ CIMCES 1101. fiettlument or closing fee to TMTO ESCRW,, INC. $530.25 2132. Loan Tie In Fee Ti Escrow,, Inc. $125.00 I n33- Mess2LiM Fees TiLmnpp Escrow Inc. $42.00 1301. - 1135. Document preparation to 1134. Votary fees to Joan lasher $40.00 n37. 1100. Title insurances to Continental Iawyers Title $383.00 $401.70 Inc:Uden above Maims Ruwbers 1109. Lender's coverage $140F500.00 1110. ownisrlm coverage $195,000.00 iin. SLfo Title Fee Continental IaHers Tit $95.00' 1112. 2nd Inan Policy and End don ental jawr =Es Tit $175.00 1133. Wire Fee Continental Iawyers Tit $25.00 1200. GDV13tNHOr- MawnC AM TRANSFER CUM 1201. Raccwding fessi - Dead $10.00 1 Mortgage $65.00 1 Release $75.00 1232. City/County t W mtampst Dead $214.50 1 Mortgage $214.50 1233. State tax/stampse Dead 1234. Hctreowners Association Cent. Keystone Pacific $35.00 1330. WDrr1oML rrmZXMM CMAGM 13n. 09/01796 HOA Dues Fa-c-JRM Park- Villas Ass $175.-69 1332. Pest Inspection to 1133. Ca pli!�U- �tr�llxia-m Pacific Park VillAs Ass $351.38" ii.m. Association Set Up Fee Keystone Pacific $45.00 13n. See Attached $1,675.90 ,=.L 6 rWr CWMAgnter w2w: 10994-M. 4) r-11i 3G., 'to j "d 7- The items indicated by 'POCI have been included at the direction of the lender for disclosure purposes only. The escrow holder/settlement agent herein has no knowledge of these expenditures, except as provided by the lender. They have not been and cannot be verified as to the amount, the payee, nor actual payment and no liability is assumed by the closing agent as to the Validity and/or the sufficiency thereof. tritririrtri �ririrrrrrurrirrrnrrirtrirerrrnnrtrirerunrrntirrutrrrrrrrtrrtutrrrtrnrrnirttirnnrrrnttururnritrritrrttrnrsrsrirrtrrtsr� 19093 Beach Boulevard a Huntington Beach, CA 92648 • (714) 843-0101 a FAX (714) 843-9949 Consolidated Closing Statement Escrow Numbers 9457-C Settlement Date: 08/22/96 Escrow Officers Linda J. Campbell Seller Name: Buyer Namet Sissounian Capital venture Gregory Scott Murch 15373 Bolsa Chica Street 18051 Joyful Lane #102 H,intington Beach, Ca 92649 Huntington Beach, Ca. 92648 Property Address: 18051 Joyful Lane #102 Huntington Beach, Ca. 92648 ---------------------------------------------------------------------------------------------- Debit credit Debit Credit ---------------------------------------------------------------------------------------------- 195,000.00 Consideration Deposit or Earnest Honey 2nd Trust Deed City Loan Additional Deposit PRORATES AND ADJUSTMENTS: 58.60 Assessment $ 175.69 Per/Month 08/21/96 to 09/01/96 309.00 County Tax $ •1,112:81 Per/Half 07/01/96 to 08/21/96 5,000.00 Est. Non -recurring costa NEW LOAN(S) AND LOAN CHARGES: New Loan Amount Loan Orig Fee Loan Disc Fee Appraisal Fee Mission Hills Mortgage Corp. Tax Service Fee Mission Hills Mortgage Corp. Underwriting Fee Mission Hills Mortgage Corp. Processing Fee Mission Hills Mortgage Corp. Document Fee Mission Hills Mortgage Corp. Administration i Funding Fee Mission sills Mortgage Corp. Flood Certification Mission Hills Mortgage Corp. Appraisal Review Fee RN Appraisal Company Interest $ 32.72 Per/Day 08/21/96 to 09/01/96 EXISTING LOAN(S): COSTS, CHARGES i OTHER DISBURSEMENTSs Loan Tie In Fee Tiempo Escrow,_Inc. Messenger Fees + Tiempo Escrow, Inc. Notary Fees Joan Lasher Homeowners Association Cart. Keystone Pacific Property 195,000.00 20,928.64 35,000.00 969.01 58.60 309.00 5,000.00 140,500.00 2,107.50 1,229.38 300.00 84.00 425.00 495.00 175.00 295.00 100.00 50.00 359.91 125.00 42.00 40.00 35.00 r , Illllltllflflllllllllllllllllllllllllllllllllllltlllfllll111111111111111111111t11111111111111111E11111111lIIIIIIIIf111111111r1ett1111111rr11111111111 19C93 Beach Boulevard * Huntington Beach. CA 92648 • (714) 843-0101 • FAX (714) 843-9949 Page 2 -- Consolidated closing Statement -- Escrow Humbert 9457-C Settlement Dates 08/22/96 ---------------------------------------------------------------------------------------------- Debit credit Debit Credit ---------------------------- ------------------------------------ ---------- -------------------- 09/01/96 BOA Dues 175.69 Pacific Park Villas Association Capital Contribution 351.38 Pacific Park Villas Association 45.00 Association Set Up Fee Keystone Pacific Property 1,675.90 Additional Charges Delinquent Taxes continental ESCROW FEES AND CHARGES%- Settlement or Closing Fee TITLE FEES AND CHARGES% 401.70 Title Insurance sub Title Fee 2nd Loan Policy and Endorsement 25.00 Wire Fee Recording Fees 214.50 City/County Tax/stamps 187,387.50 **** Balance **** 195,059.60 ** TOTAL DEBITS +* 195,058.60 ** TOTAL CREDITS ** 530.25 383.00 95.00 175.00 75.00 0.00 202,706.71 202,706.71 111111i1111111ii11111111111111111111111{11111{11111111111111111111111111111111111111111111l1111111111111111111l1i11111111111i111llfllllllllllllllllll 19093 Beach Boulevard * Huntington Beach, CA 92648 • (714) 843-0101 • FAX (714) 843-9949 CITY OF HUNTINGTON BEACH ATTN CONNIE 2000 MAIN STREET HUNTINGTON BEACH CA 92648 Dater August 22, 1996 Escrow No.: 9457-C Property Address: 18051 Joyful Lane 4102, Huntington Beach, Ca. 92648 in connection with the shove -numbered escrow, we are enclosing herewith the followingi FINAL CLOSING STATEMENT If you should have any questions regarding the above, please do not hesitate to contact the undersigned. Thank you for your cooperation in this matter. sincerely, Linda J. Campbell Escrow officer :. MOTE *.;_pan Number : 24151067 August 6 , 1996 SAtITA ANA CA [city] [Statcl 18051 JOYFUL LANE #102, HUNTINGTON BEACH, CA 92647 [Property Ad.lressl 1. 13ORROWER'S PR01111SE TO PAY In return for a loan that I have received, I promise to pay U.S. $ 140, 500 .00 (this smount is called 'princilan, plus interest, to the order of the Lender. The Lender is MISSION HILLS I►IORTOAGE CORPORATION, A CALIFORNIA CORPORATION I understand that the Lender may transfer this Note. Tire 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. INTCRrsr Interest wilt be charged on unpaid principal until the fu`l amount of principal has been paid. I Kill pay interest at a yearly rate of 8 . 500 %. The interest rate required by this Section 2 is the rate 1 will pay both before and afler any default described in Section 6(13) of this Note. 3. PAYAIENTS (A) Time and Place of Payments i will pay principal and interest by making payments every month. I will snake my monthly payments on the 1St day cif each month beginning on October 1 , 1996 . I will make these payments every month until I have P:tid all of the principal and interest and any other charges described below that 1 may owe under this Note. J1ty monthly payments will be applied to interest before principal. If, on SEPTEMBER 1, 2026 , I still owe amounts under this Note, I will pay those amounts in full on that date, which is called the "maturity date'. I %till make my monthly payments at P.O. BOX 1961 SANTA ANA, CALIFORNIA 92701 or at a different place if required by the Note Ilolder. (13) Amount of hionthly Payment hly monthly payment will be in the amount of U.S. $ 1,080.33 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of principal at any time before they are due. A payment of Principal only is known as a 'prepayment'. When i make a prepayment, 1 will te..1 the Note Holder in writing I am doing so. I may make a full prepayment or partial prepayments without paying any prepayment charge. The Note Holder will use all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a partial prepayment, there will he no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. 5. LOAN CHARGES If a law, which applies to this Joan and which sets maximum loan charges, is finally interpreted so that the interest or other loan charges collected or to he collected in connection with this loan exceed the permitted limits, then: 6) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (ii) tiny sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the principal 1 owe under this Note or by making a direct payment to me. If a refund reduces principal, the red.tction will be treated as a Partial prepayment. 6. BORROWER'S FAILURE: TO PAY AS REQUIRED (A) Lore Charges for Overdue Payments If the Note Holder has not received the full amount of any monthly payment by the end of 15 calendar days after the date it is due, 1 w.11 pay a late charge to the Note Holder. The amount of the charge will he 5 .0005v of my overdue Payment of principal and interest. 1 will pay this late charge promptly but only once on each late payment. (i3) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in defattll. (C) Noticf- of Dchttrlt If 1 am in default, the Note Holder may send the a written notice telling me that if I do not pay the overdue :+mount by a certain date, the Note Holder may require me to pay immediately the full arnount of principal which has not been paid and all the interest that I owe on that amount. Thid date mtrst be at least 30 days after the date (in which the notice is delivered or mailed to toe. ([l) No WaNer By Note Ilokler Even if, at a time when Ii am in &fault. the -Note I01,Wr du,23not- require 'nte to Pay jminediately in full as -- - described above, the Note }folder will still have the right to do _50 if Vam in default at a later time. (C) mtynlent nr Nole (solder's Costs and Expense. - - lf the Note Ilolder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by the for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 111ULTiSTATE FIXED RATE NOTE—Singtc ramify--FNNiAIFIiLNIC UNIFORM INMUIt1ENT Form 3200 1Z'83 tlEastem Form 1645 (8812) 5oftwaru 1.800.441-0830 MSTRN V-5 (1190) [Y.1 ID-1-0- r 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to the under this Note will be 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 be given to the Note Holder under this Note will be given by mailing it by first class mail to Vie Note holder at the address sated in Section 3(A) above or a different address if I am given a notice of that different address. S. OBLIGATIONS OF PERSONS UNDER THIS NOTE. If snore than one person signs this Note, each person is fully and personally obligated to keen all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is n guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations. including the obligations of a guarantor. surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of its may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of presentment and notice of 6shonor. 'Presentment' means the right to require the Note [folder to demand payment of aniounts due. 'Notice of t1shonor' means the right to require the Note Bolder to give notice to other persons that aniounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note holder under this Note. a Mortgage, Deed of TrLst or Security Deed (the 'Security instrument'), dated the fame date as this Note, protects the Note (folder from possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrument describes [tow and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: Transfer of the Property or it BenePrchil Interest In Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. however, this option shall not he exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all turns secured by this Security Instrument. If Borrower fails to pay these suns 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. GREGORY SCOTT MURCH _(Stall -Borrover (Stall -Borrower (Sean 'Borrower tscell -Borrower (Sign Original Only) WHEN RECORDED MAIL TO� M MISSION HILLS MORTGAGE CORPORATION 1403 NORTH TUSTIN AVENUE, SUITE 280 SANTA ANA, CA 92701 Loan Number : 24151067 [SPACC ABOVE 7111S LINE FOIL RECORDING DATAI DEED OF TRUST THIS DEED OF TRUST ("Security Instrument") is made on August 6, 1996 Th: trustor is GREGORY SCOTT MURCH, A SINGLE MAN ("Borrower*). The trustee is HA_RTFORD ESCROW, INC. ,A CALIFORNIA CORPORATION (`Trustee'). The beneficiary is MISSION HILLS MORTGAGE CORPORATION, A CALIFORNIA CORPORATION which is organized and existing under the laws of CALIFORNIA , and whose address is 1403 NORTH TUSTIN AVENUE, SUITE 280, SATA �' CA 927[�1 rider")orrower owes ender the principal sum of ONE HUNDRED FORTY THOUSAND FIVE HUNDRED DOLLARS AND 00/100 Dollars (U.S.$ 140, 500 .00 ).This debt is evidenced by Borrower's note dated the same date as this Security Instrument ("Note"), which provides for monthly payments, with the full debt. if not paid earlier, due and payable on September 1, 2026 . This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums. with interest, advanced under paragraph 7 to protest the security of this Security instrument; and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in ORANGE County, California: ALL THAT CERTAIN REAL PROPERTY AS MORE PARTICULARLY DESCRIBED ON EXHIBIT A ATTACHEI) HERETO AND MADE A PART HEREOF which has the address of 18051 JOYFUL LANE #E:102 [Street] California 92647 ("Property Address); ]Zip Code] CAIAI'ORNIA-single Family -Fannie ItlaelFreddie Mac UNIFORM INSTRUMENT 111Ei35tE!M ITEM 1949 (9207) �o:tvr�ue HUNTINGTON BEACH Icilyl Form 3005 9190 (Page t or 6 ragcs) TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements. appurtenances. ane fixtures. now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that borrower is hawfully seised of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non -uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: I. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due tinder the Note. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments are due under the Note, u:ltil the Note is paid in full, a sum ('Funds`) for: (a) yearly taxes and assessments which may attain priority over this Security instrument as a lien on the Property; (b) yearly leasehold payments or ground rents on the Property, if any, (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums, if any, (e) yearly mortgage insurance premiums, if any, and M any slims payable by Borrower to Lender, in accordance with the pro%isions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items.' Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Ilorrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. § 2601 et seq. ("RESPA"), unless another law [flat applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amotmt not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable haw. The Funds shall be field in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Hank. Lender shall apply the Funds to pay the escrow items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument. If the Funds held by Lender exceed file amounts permitted to be held by applicable law. Lender shall account to Borrower for the excess Funds in accordance with the requireme:lts of applicable law. If the amount of The Funds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower shall pay to Lender the amount necessary to make tip the deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums sectired by this Security Instrument. 3. Apphiculion of Payinents. Unless applicable law provides otherwise, all payments received by Lender under paragraphs I and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the note. 4. Charges; Llens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and lease'old payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2. or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall prornptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender, (b) contests in good faith the lien by. or defends against enforcement of the lien in. legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of file actions set forth above within 10 days of the giving of notice. S. Hazard or Property Insurance. Borrower shall keep I'm improvements now existing or hereafter erected on the Property insured against loss by lire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender Fornt 3005 9190 (page 2 of 6 pages) requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. if Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Properly is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. if this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one -twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer he required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law. 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 10. Condemnation. The proceeds of any award of claim for damages, direct or consequential, in connection with any Single Family -- Fannie Mae/Freddie Mac UNIFORM INSTRUMENT -- Uniform Covenants 9/90 (page 3 of 6 pages) condemnation or other taking of any part of the Property, or ror conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. In the event or a total taking of the Property, the proceeds stall be applied to the sums secured by this Security Instrument, whc Cher or not then due, with any excess paid to Borrower. In the event of a partial taking or the Property in which the fair market vai,fe of the Property immediately before the taking is equal to or greater than the amount or the sums secured by this Security instrument immediately before (lie taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security ins-lument shall be reduced by the amount or the proceeds multiplied by the following fraction: (a) the total amount of the sums acc.tred 'immediately before the taking, divided by (b) the fair market value or the Property immediately before the taking. Any bal.:nce shall be paid to Borrower. In the event of a partial taking of the Property in which the rair market value or the Property immediately before the taking is less than the amount or the sums secured immediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums arc then due. if the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor orrcrs to make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by lids Security Instrument, whether or not then due. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the dote dale of the monthly payments referred to in paragraphs 1 and 2 or change lie amount of such payments. 11. Borrower Not Released; Forbearance by mender Not a Waiver. Extension of [lie time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not opctatc to release the liability or the original Borrower or Borrower's successors in interest. Lender shall not be required to corrmence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason or any demand made by the original Borrower or Borrower's successors in intetest. Any rorbearanec by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise or any tight or tzmedy. 12. Successors anti Assigns hound; Joint anti Several 13abilily; Co-signers. The covenants and agreements of this Security inst:ument shall bind and benefit the successors and assigns or Lender and Borrower, stdsject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Prol'erty under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13. Doan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges, anti that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be rcrunded 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. it a refund redLxs principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note. 14. Notices. Any notice to Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. IS. Governing I nw; Severshility. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause or this Security Instrument or the Note conflicts with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect with,+ut the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 16. Ilorrmver'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 horrotyer. If all or any part of the Property or any interest in it is add or lransrerred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lendcr's print written consent, Liender may, at its option, required immediate payment in run of all sums secured by this Security Instrument. }loucver, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security instrument without rurthcr notice or demand on Borrower. 18. Ilorrmrer's Right to lieinslate. If Borrower meets certain conditions, Borrower shall have the right to have enforcement of this Security instrument discontinued at any time prior to the earlier or.(a) S days (or such other period as applicable law may Single Family — Tannic 111ae117reddie Mae UNiI)Rl1I INS'TRUM N'1' -- Uniform Covenants 9.190 (page 4 of 6 pages) specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this Security Instrument; or (b) entry of a Judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would Ire due under this Security Instrument and the Note as if no acceleration had occurred; (b) cares any default of any other covenants or agreements; (c) pays all expenses iner.rred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees; and (d) takes such action as Lender may reasonably require to assure that the lien of this Security Instrument. Lender's rights in the Property and borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occur-ed. however, this right to reinstate shall not apply in the case of acceleration under paragraph 17. i9. Sole or Note; Change or Loan Servicer. The Note or a partial interest in the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a change in the entity (known as the `Loan Servicer") that collects monthly payments clue under the Note and this Security Instrument. There also tnay be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change in accordance with paragraph 14 above and applicable law. The notice w711 state the name and address of the new Loan Servicer and the adalress to which payments should be made. The notice will also contain any oilier information required by applicable law. "0. Ilazardmcs Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. Borrower shall promptly give Lender written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any hazardous Substance a.fecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. As used in this paragraph 20, `hazardous Substances" are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 20, "Environmental Law" means federal laws and laws of the Jurisdiction where the Property is located that relate to health, safety or environmental protection. NON -UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 21. Acceleration; Rentedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach or silly covenant or agreement in this Security Instrument (hut not prior to acceleration tinder paragraph 17 unless applicable law provides otherwise). The notice shall specify. (a) the default; (It) the nction required to cure the default; (c) n date, not less Man 30 days From Cite date the notice is given to Borrower, by v6hich the default must he cured; and (d) that failure to cure the default on or before the date specified In the notice may result In acceleration of (lie sums secured by this Security lrtctnnnent and sale or the Property. The notice shall further Inform Borrower or Cite right to reinstate sifter accelernlion and Ilse right to bring a court action to assert flue ann-existence of a default or any other defense of Borrower to acceleration and sale. if the default Is not cured on or before lite date specified In the notice, Lender at its option, and without further demand, may invoke lite power of sale, Incitud'ng flue right to accelerate full payment of lite Note, and any other remedies permitted by applicable law. Lender shall he entitled to collect all expenses hicurred In pursuing the remedies provided In this paragraph 21, including, but not limited to, reasonable attorneys' fees and costa of title evidence. If Lender invokes file power of sale, Lender shall execute or came Tntstee to execute a written notice of file occurrence or an event of default and or Lender's election to cause the Property to be sold. Trustee shall cause this notice to he recorded in each county in wwhich any part or the Property Is located. Lender or Tnustee shall ntnil copies or flue notice ac prescribed by npltlicable laty to Borrower and to the persons prescribed by applicable law. Trustee shall give public nnlice of sale to Ilse persons and In the manner prescribed by applicable late. After the little required by applicable law, Tntstee, without demand on Gorrower, shall sell lite Property sit public nuction to the highest hidder at the time and place and under the ternns designated in the notice of sale in one or more parcels and in any order Trustee determines. Trustee may postpone sale or any parcel or the Property by public announcement at the tinte and place of any previously scheduled sale. Lender or its designee may purchase the Property at any sale. Trustee shall deliver to the purchaser Tntstee's deed conveying the Property without any covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall he prima facie evidence of the truth of file statements made therein. Trustee shall apply the proceeds of the safe in the following order: (a) to all expenses of rite sale, including, hilt not limited to, reasonable Tnustee's and attorneys' fees; (it) to all sums Secured by this Security Instrument; and (c) any excess to the person or prrson.s legally entitled to it. 22. Reconveyuence. Upon payrient of all sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Security instrument and all notes evidencing debt secured by this Security Instrument to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled to it. Such person or persons shall pay any recordation costs. Fonn 3005 9I90 (page 5 of 6 pages) V �'Ol 23. Subslitute Trtlslee. Lender at its option, may from time to time remove Trustee and appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by Lender and recorded in the office of the Recorder of the county in which the Property is located. The instrument shall contain the name of the original Lender, Trustee and Borrower, the book and page where this Security Instrument is recorded and the name and address of the successor trustee. Without conveyance of the Property, the successor trustee shall succeed to all the title, powers and duties conferred upon the Trustee herein and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution. 24. Request for Notices. Borrower requests that copies of the notices of default and sale be sent to Borrower's address which is the Property Address. 25. Statement or Ohligaiintt Fee. Lender may collect a fee not to exceed the maximum amount permitted by law for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California. 26. Riders to this Security Instnnnent. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and agreements of each s-ich rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security ln;trument. [Check applicable box(es)] 0 Adjustable Rate Rider 0 Graduated Payment Rider Q Balloon Rider E3 Other(s) [specify) ® Condominium Rider 1-4 Family Rider 0 Planned Unit Development Rider Q Biweekly Payment Rider Rate Improvement Rider Q Second home Rider BY SIGNING BELOW, Borrcwer accepts and agrees to the terms and covenants contained in this Security Instrument and in any rider(s) executes! by Borrower and recorded with it. Witness: Witness: (Seal) (Seal) G ZEGORY SCOTT MlJ9CH -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower State of California Ccunty of ORANGE On AUCiMT 7,1996 before me, personally appeared GREGORY SCOTT MURCIT personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that he/sheltheyexectsted the same in hisherAheir authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS m a nd official ea r— ,".w; y h CC, `;_� ,JOAN LASWER `' COMM. # 1045339 IJU m "'�[r / f NOTARY PUBLIC • CALWORNIA Signature Z l c �' MANGECOUNTY 73 AN LASI Z z `.. . MN Co+rm. Eaplres DEC. 16,1946 REQUEST FOR RECONVEYANCE TO TRUSTEE: The undersigned is the holder of the note or notes secured by this Deed of Trust. Said note or notes, together with all otter indebtedness secured by this Deed of Trust, have been paid in full. You are hereby directed to cancel said note or notes and this Deed of Trust, which are delivered hereby, and to reconvey, without warranty, all the estate now held by you under this Deed of Trust to the person or persons legally entitled thereto. Dated: Farm 3005 9/90 (page 6 of 6 pages) �.oI Loan Hur,ber : 24151067 CONDOMINIUM RIDER TI1IS COND09Vi1NIUM RIDER is made this 6th day of August 1996 , and is incorporated in-o and shall he deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security In;trtlment") of the same date, given by the undersigned (the "Borrower") to secure Borrower's Note to MISSION HILLS MORTGAGE CORPORATION, A CALIFORNIA CORPORATION (the "Lender') of the same date and covering the Property described in the Security Instrument and located at: 16051 JOYFUL LANE #102, HUNTINGTON BEACH, CA 92647 (Property Address) TF.e Property includes a unit in, together with an undivided interest in the common elements of, a condominium project known as: PACIFIC PARK VILLAS [Name of Condominium Project] (tF.e "Condominium Project'). if the owners association or other entity which acts for the Condominium Project W.e 'Owners Association") holdi title to the property for the benefit or use of its members or shareholders, the Property also includes Borrower's interest in the Owners Association and the uses, proceeds and benefits of Borrower's interest. CONDOMINIUM COVENANTS. In addition to the covenants and agreements made in the Security instrument, Borrower and Lender further covenant and agree as follows: A. Coltdominitini Obligations. Borrower shall perform all of Borrower's obligations under the Condominium Proje:ct's Constituent Documents. The "Constituent Documents' are the: (i) Declaration or any other document which creates the Condominium Project; (ii) by-laws; (iii) code of regulations; and (iv) other equivalent documents. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. ila;ulyd Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, it 'master" or "blanket" Policy on the Condominium Project which is satisfactory to Lender and which provides insurance coverage in the amounts, for the periods, and against the hazards Lender requires, including fire and hazards included within the term "extended coverage; then: (i) Lender waives the provision in Uniform Covenant 2 for the monthly payment to Lender of the yearly premium installments for hazard insurance on the Property; and (ii) Borrower's obligation under Uniform Covenant 5 to maintain hazard insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. Borrower shall give Lender prompt notice of any lapse in required hazard insurance coverage. In the event of a distribution of hazard insurance proceeds in lieu of restoration or repair following a loss to the Property, whether to the unit or to the common elements. any proceeds payable to Borrower are hereby assigned and shall be paid to Lender for application to the sums secured by the Security Instrument, with any excess raid to Borrower. C. Public Uability Instinince. Borrower shall take such actions as may he reasonable to insure that the Owners Association maintains a public liability insurance polity acceptable in form, amount and extent of coverage to Lender. Nit 1 TISTATE CON1 MUNIU61 1t12)FR Singec gamily--Fmnie Mae/Freddie Ptec UNWORM 1\5TRU111SNT Form 3140 9/90 ITEM1623 (9112) (page 1 of 2) � ftwam D. Condemnatiom The proceeds of any award or claim for damages, direct or consequential, payable to Borrower in connection with ary condemnation or other taking of all or any part of the Property, whether of the unit or of the common elements, or for any conveyance in lieu of condemnation, are hereby assigned and shall to paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Uniform Covenant 10. E. Lender's Prior Consent. Ilorrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the Condominium Project, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the Constituent Documents it the provision is for the express benefit of Lender; (iii) termination of professional management and assumption of self -management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. I'. Remedies. If Borrower does not pay condominium dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph r shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest From the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this Condominium Rider. 1 lvL (Seal) (Seal) GREGORY SCOTT MURCII -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (page 2 of 2) ORDER NO.: 9402218-04 SCHEDULE A CONTINUED Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: Unit No. 18 consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. PARCEL 3: Non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration_ of Covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. PARCEL 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and assigned on the Plan. REDEVELOPN ENT AGENCY OF THE CITY OF HUNTINGTON BEACH LENDING INSTRUCTIONS TO: Tiempo Escrow 19093 Beach Blvd. Huntington Beach, CA 92648 RE: Your Escrow No. 9457-C Preliminary Recitals I. Gregory S. Murch (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 real property known as and located at I8051 Joyful Lane, #102, Huntington Beach, California 92648, which property is hereinafter sometimes referred to as the "Subject Real Property." Lender has been ad-vised that Buyer has opened the above -referenced escrow with you for the purpose of completing the purchase of the Subject Real Property. In order to secure performance or fulfillment of the terms and conditions of the loan for which Buyer has applied, and to facilitate the making of the loan if appropriate, Lender, reserving the right to amend or revoke these instructions, unilaterally and without prior notice, at any time, hereby authorizes and instructs you as follows: Deposit Clause 2. Lender had enclosed herewith the following: (a) A loan agreement providing the terms and conditions by which the Borrower may participate in the Lender's program to assist low or moderate income households to purchase housing which includes an equity sharing provision; (b) A promissory note providing for the repayment of the principal amount of $35,000 plus accrued interest on the unpaid balance thereof at the rate of 5 percent (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:0:4-96Agree:%1urch:1=dinst RLS 96.322 7'90 '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; (0 The notice of the Buyer's right to rescind required by the Truth -in -Lending Act; (g) An expiration of rescission period form verifying the delivery of the notice of right to rescind, and (h) The Certificate of Proposed Disclosure, which must be signed by the Buyer, delivered to the current owner for his signature, and when fully executed, copies are to be delivered to Lender, Buyer, and owner. Execution of Loan Instruments and Documents 3. When you have received these instructions, please have Buyer execute immediately all loan instruments and documents that have been deposited with you for execution by Buyer. All of the loan instruments and documents that have been deposited with you for execution by Buyer are to be executed by Buyer on the same date. Buyer must execute all loan instruments and documents that they are required to execute by signing his/her/their name(s) exactly as it appears or will appear on the grant deed that will vest title in Buyer and on the enclosed deed of trust. Insurance Requirements 4. We require, as a condition of 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 following requirements: (a) The policy shall be issued by an insurer that is admitted to transact insurance business in California; (b) The policy shall either be a continuous policy or a policy with an unexpired term of at least one year, and the premium for the initial one year, following the making of the loan must have been paid; (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; 4a:0:4-96Agreeltur hlendirat RiS 96-522 7130'96 (d) The policy shall not have a deductible that exceeds $500. Requirement of Cash Dow•npayment S. 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-I.ending 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) Yo.i 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 4 s:G*96Agrce:%Iumh:l.endinst RLS 96-522 7r30'96 IN U (b) Buyer has properly executed the enclosed promissory note without modification or deletion and you have delivered the original of the executed loan agreement promissory note to us; (c) Buyer has properly executed the enclosed deed of trust without modification or deletion and it is in recordable form; (d) Buyer has properly executed the enclosed Declaration of Condition, Covenants, and Restrictions without modification or deletion and it is in recordable form; (e) You have delivered a true and complete copy of the executed deed of trust and Declaration of Conditions, Covenants and Restrictions to us and are authorized and prepared to record the original deed of trust when you receive and are authorized and prepared to disburse the loan proceeds; (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 %vith 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 a written confirmation verifying the commitment of Continental Lawyers Title Company to issue the policy of title insurance required by these instructions on the recordation of the enclosed deed of trust; 0) You have received in escrow, and are authorized and prepared to deliver to us on recordation of the enclosed deed of trust, an original policy of fire and extended special coverage insurance complying with the requirements set forth in Tk 4; (k) Buyer has deposited in escrow, to be applied toward payment of the purchase price for the Subject Real Property, the sum of $15,000.00 and has otherwise complied with the downpayment requirements set forth in S 5; 4 4 s:G:4-96Agrce:%[urch:1"dinst RLS 96-522 7110.96 (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 9519 that the residence and other improvements located on the Subject Real Property are free from evidence of active infestation or infection in the visible and accessible areas; (m) You have delivered to Buyer, in accordance with the requirements set forth in T, 6, one copy of the enclosed Disclosure Statement and two copies of the enclosed Notice of Right to Rescind; (n) )lucre than three full business clays have elapsed since the date on which the Disclosure Statement was delivered to Buyer, and more than three full business days have elapsed since the date on which the Notice of Right to Rescind were delivered to Buyer; (o) You are otherwise authorized and prepared, under the instructions you have received from all parties, to close the above -referenced escrow within 24 hours after the loan proceeds are deposited with you. (p) There shall be no blanks on any documents at close of escrow. Recording of Deed of Trust 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 after you record the grant deed conveying the Subject Real Property to Buyer. Issuance of Title Insurance Policy 9. As soon as you have recorded our enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions, you are instructed to cause to issue and to deliver to us a standard form American Land Title Association lender's title insurance policy in the amount of S35,000, 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 of Loan Proceeds 10. You are authorized to disburse the loan proceeds that we deposit with you when, and only when: 5 4 s:G*96Agree:%[urch:Undinst RLS 96-522 7.13U'96 u 11--/ (a) All of the conditions precedent to requesting the deposit of the loan proceeds, as set forth in 4,17, have been performed or fulfilled. (b) You have recorded the grant deed conveying the Subject Real Property to Buyer, the enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions; and (c) You have caused to issue and deliver a standard form American Land Title Association lender's title insurance policy that complies with the title insurance requirements set from in Ti 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 92643. 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 Cleric. 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, charges, costs, or expenses incurred by you or any other party to the above -referenced escrow in complying with these instructions, 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 de%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 6 4's:G*96Ag=: %lurch: Undind Rts 96-522 7t3o.'96 officer, agent, or employee of Lender. Any purported oral waiver, and any purported oral authorization to deviate from the terms of these instructions, shall be ineffective and invalid. Amendments and Supplemental Instructions 16. Lender shall have the right to amend or supplement these instructions at any time without prior notice and without the agreement or consent of any other party or parties. However, these instructions may only be amended, supplemented, or modified by means of a written amendment or supplement that has either been signed or approved in writing by an authorized officer, agent, or employee of Lender. No written amendment, supplement, or modification of these instructions shall be effective or valid unless and until it has been deposited with you and unless and until an authorized officer, agent, or employee of Lender has either signed it or approved it in a signed writing that has been deposited with you. Any purported oral amendment, supplement, or modification of these instructions shall be ineffective and invalid. Revocation and Cancellation of Instructions 17. (a) Lender shall have the right to revoke and cancel these instructions at any time without prior notice and without the agreement or consent of any other party or parties. If Lender exercises its right to revoke and cancel these instructions, you shall return to Lender forthwith, upon demand, any and all funds, instruments, documents, and other items that Lender has deposited with you. (b) If the above -referenced escrow is canceled by any other party or parties, you shall return to Lender forthwith any and all funds, instruments, documents, and other items that Lender has deposited with you. Time Is of the Essence 18. Time is of the essence with respect to each and every provision of these instructions and in the performance, occurrence, fulfillment, or satisfaction of each and every term and condition of this escrow and these instructions. 7 4\s:G:4-96Agree: Murch: Lendinst RLS 96-522 7/30/96 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: _.g_ic,1s6 _— LENDER k '1L - _ David Biggs Economic Development Director Redevelopment Agency of the City of Huntington Beach Acknowledgment and Acceptance by Escrow Molder Tiempo Escrow acknowledges receipt of the foregoing instructions and the items listed in Paragraph 2 of those instructions. Tiempo Escrow agrees that any funds, instruments, documents, or other items deposited by the Redevelopment Agency of the City of Huntington Beach shall be held and disposed of in accordance vaith 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 Tie, mpoxscrow j Y =�] LINnk JI CAMM L (typed name] ESMM OFFICER [title] 4's:G:4-96p grce:%Iurch_L=Winst RLS 96-522 T.3Q.96 rrrttintttuttutt�ttrtstsnitniitirisrsisititititttittttuesuttet�tsitisisistttnrtittt�t�sisisir�tistninttn�stt�r�t�r�r�rtrtruttr�t�rurritt� 19093 Beach Boulevard • Huntington Beach, CA 92648 • (714) 843-0101 • FAX (714) 843-9949 city of Huntington Beach Dates August 16, 1996 Attention: Connie Escrow No.: 9457-C 2000 Hain Street Huntington Beach, Ca. 92648 Property Address 18051 Joyful Lane #102, Huntington Beach, Ca. 92648 In connection with the above -numbered escrow, we are enclosing herewith the following: Loan Agreement and Exhibit(s) Copy of Note and Deed of Trust for new 1st Trust Deed loan Please obtain signature and attach Acceptance to Deed of Trust. Our scheduled If you should have any questions regarding the above, please do not hesitate to contact the undersigned. Thank you for your cooperation in this matter. ip�erelyUCbell f • '6061e� Linda J Escrow Officer