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HomeMy WebLinkAboutOlga Christine Griffen - 1994-09-204 CITY OF HUNTINGTON BEACH 1 013 Inter -Office Communication Economic Development Department DATE June 12, 2000 TO Gus Duran, Housing/Redevelopment Manager FROM Joyce DeKreek, Housing/Redevelopment Consultan SUBJECT Research on Loan Forgiveness, 1st Time Home -Buyers Program Redevelopment Set -Aside, $400,000 and Redevelopment Set -Aside, $750,000 I have reviewed our records regarding funding of 1st Time Home -Buyers Program to determine the names and amount of assistance which benefited the applicants from the $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 lst Time Home -Buyers Program and one additional applicant for the RDA 1" Time Home -Buyers Program only The RDA portion of these loans are Bastou ($25,000), Dieckmeyer ($23,000), Griffen ($25,0001 Hoang ($23,000), Lawson ($23,000), Melvin ($35,000), Otto ($23,000), Quick, S ($16,717), Quick, T ($25,000), Rivera H ($25,000) Quick, T withdrew from the CDBG loan but maintains the RDA loan These loans total $243,717 The Redevelopment Agency approved fifteen (15) applicants from the $750,000 allocation at Pacific Park Villas (PPV) to participate in the Redevelopment Agency 1" Time Buyer Program The names and amounts are (Carrillo ($35,000), Forchione ($35,000), Heckethorn ($35,000), Hossemali ($35,000), Hocker ($35,000), Lawrence ($35,000), Murch ($35,000), Osterhoudt ($35,000), Peltier ($35,000), Rivera -Burgess ($35,000), Wallace ($35,000), Weinfeld ($35,000), Wong ($35,000), Krueck ($35,000), Margoles ($35,000) These loans total $525,000 Four loans (Melkerson/Umack, Ojeda, Rene/White, Stratton), previously approved by RDA were not funded G /Joyce/Intermemo Recon rey doc - . ,•�r �` -. ��, err One loan (Wallace) was assumed by another qualified buyer (Stay). Two applicants have paid their loans: Melvin, paid off his RDA loan 10/21/1997 in the amount of $40,794.31 and Hoang, paid off his RDA loan on 12/21/1999 in the amount of $47,208.80. A check in the amount of $4,116.57 was issued to Mr. Hoang for overpayment, reducing the loan repayment to $43,092.23. These loans accrue simple interest at 5%, due and payable upon sale to a non qualified buyer and has shared equity. Cc: Connie Brockway, City Clerk Paul D'Alessandro, Deputy City Attorney David Biggs, Director, Economic Development John Reekstin, Director of Administrative Services Dan Villella, Director of Finance Jake Rahn, Administrative Services Hank Reveles, Sr. Accountant Joyce de Kreek, Economic Development Steve Holtz, Development Specialist Gtoycdlnurmemo Reconvey.doc 95-01 (2-1-95) RDA 12-19-94 95-02 (2-1-95) RDA 12-19-94 95-03 (2-1-95) RDA 12-19-94 95-04 (2-I-95) RDA 12-19-94 95-06 (4-12-95) RDA 4-3-95 96-01 (1-24-96) RDA 1-16-96 96-02 (3-7-96) RDA 3-4-96 96-03 ( RDA 4-1-96 96-04 (7-17-96) RDA 7-15-96 96-05 (8-7-96) RDA 8-5-96 96-06 (8-7-96) RDA 8-5-96 97-01 (1-29-97) RDA 1-21-97 97-02 (4-30-97) RDA PACIFIC PARK VILLAS (5750,000 — RDA) Carillo, Ann $ 35,000 7861 Happy Drive, #102 Lawrence, James and Jeanette S 35,000 18051 Joyful Lane, # 16 Wong, Wesley Chi S 35,000 7681 Happy Drive, #202 Hocker, ChristopherNandereb, Gayle$ 35,000 7681 Happy Drive, #101 Rivera, Victor/Burgess, Debra $ 35,000 18061 Joyful Lane, #104 Heckethorne, Sean & Jacquelyn $ 35,000 7871 Happy Drive, 4102 Margolis, Peter $ 35,000 18651 Joyful Lane, #104 Weinfeld, Julie Peltier, Edward Wallace, Barbara Jo Murch, Gregory Krueck, Deborah Osterhoudt, Robert and Kathy $ 35,000 18061 Joyful Lane, #205 $ 35,000 7871 Happy Drive, #201 $ 35,000 18051 Joyful Lane, #205 $ 35,000 18051 Joyful Lane, #102 $ 35,000 18061 Joyful Lane, #101 $ 35,000 I8061 Joyful Lane, #102 GJjoyccAnternKmo Reconvey_doc �s �f 5} Ys°[R'x F y�w,,�_�'� ,,}}r��r�u�+�rtiS_(�jt t.�t,d z kr v�.'"',,,tk,;.. }4„", �'1 M'zf �l 97-03 (5-14-97) Hosseinali, Faroukh $ 35,000 18061 Joyful Lane, #201 RDA 97-04 (7-23-97) Forchine, Richard $ 35,000 18051 Joyful Lane, #201 RDA 7-21-97 1" 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) Dieckmeyer, Barbara $ 23,000 409 Utica Avenue #13-21 (RDA 2-22-94) 94-8 (2-11-94) Otto, T /Shorb R $ 23,000 409 Utica Avenue #A-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) Gnffen, Olga Christina $ 25,000 409 Utica Avenue #C-23 (RDA 9-19-94) $ 243,717 G /joyce/Intermemo Reconvey doe - - * TAT 47_7 °A� CITY OF HUNTINGTON BEACH Inter -Office Communication 0 1J Economic Development Department DATE May 23, 2000 TO Gus Duran, Housing/Redevelopment Manager FROM Joyce DeKreek, Housing/Redevelopment Specials SUBJECT Research on Loan Forgiveness, 1st Time Home -Buyers Program 2nd $100,000 I have reviewed our records regarding funding of lst Time Home -Buyers Program to determine the names and amount of assistance which benefited the applicants from the 2nd $100,000 in CDBG funds approved by the City Council at their December 20, 1993, meeting At that meeting eight applicants (Hoang, Heildesch, Quick, Lawson, Steenveld, Otto, Dieckmeyer and Chavez) were approved to participate in the lst Time Home -Buyers Program, totaling $59,100 However, two (2) applicants (Heildesch, Quick (Shauna) withdrew (or participated in another program) , thereby lowering the total amount of assistance to $53,150 I have no record on Steenveld or Chavez (either on microfilm or " files) and after checking with City Clerk's office, I believe these loans may not have been funded If that's true, the total amount of assistance is lowered to $31,900 Since that meeting Bastou ($5,000), Geffen ($5,300), Melvin ($10,000), Quick (Theresa) ($5,000) and Rivera H ($5,000), were approved for CDBG 1st Time Buyer Assistance in conjunction with the Redevelopment 1st Time Buyer Assistance Quick T signed loan docs but withdrew prior to recording the docs The CDBG amount of assistance is $25,300 Two applicants have paid back their loans Hoang, CDBG loan paid on 12/21/1999 in the amount of $8,229 72 and Melvin, CDBG loan paid on 10-21-1997 in the amount of $11,655 36 G /Joycd1ntermemo Reconvey doc A These loans are accrued at a 5% simple interest rate, due and payable upon sale, transfer, etc. Cc: Paul D'Alessandro, Deputy City Attorney Joyce de Kreek, Economic Development Steve Holz, Development Specialist t QIjoyce/Intem+emo Rcconvey-doc qITY OF HUNTINGTON BEA MEETING DATE: April 15, 1996 �4 DEPARTMENT ID NUMBER: 96-001 Council/Agency Meeting Held: —I ~� Deferred/Continued to: *proved ❑ Conditionally Approved ❑ Denied City Cler 'S ignature Council Meeting Date: April 15, 1996 Department ID Number: 96-001 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL/REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: CONNIE BROCKWAY, CITY CLERK/CLERK DAVID BIGGS, ECONOMIC DEVELOPMENT DIRECTOR/REDEVELOPMENT DIRECTOR PREPARED BY: CONNIE BROCKWAY, CITY CLERKICLERK 6t SUBJECT: RESOLUTIONS ADOPTING THE POLICIES AND PROCEDURES MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM AND ACCEPTANCE OF LOAN AGREEMENTS FOR OFFICIAL FILING Statement of Issue. Funding Source, Recommended Action, Atternative Action(s), Analysis, Envlpnrpental Status, Attachment(s) Statement of Issue: The City Council/Redevelopment Agency is requested to accept and authorize the City Clerk/Clerk to officially file on behalf of the City, 18 Down Payment Assistance Loan Program Agreements which pursuant to previous direction of the City Council, have been repaired to protect the interests of the city. The City Council/Redevelopment Agency is also requested to approve the Policies and Procedures Manual for the City of Huntington Beach/Redevelopment Agency Down Payment Assistance Loan Program for staff use in future assistance programs. Funding Source: None required. Recommended Action: 1 Authorize the City Clerk/Clerk to file on behalf of the City Council/Redevelopment Agency the 18 Down Payment Assistance Loan Program Agreements, as repaired to protect the city's interests pursuant to the previous direction of the City Council. C-- I '? CK96001M.DOC -2- 04/01/96 5:04 PM REQUEST FOR CO COUNCIL/REDEVELOPMEgT AGENCY ACTION MEETING DATE: April 15, 1996 DEPARTMENT ID NUMBER: 96-001 AND 2. Adopt Council Resolution No. 96-29 and Agency Resolution No. 273 adopting the Down Payment Assistance Loan Program Policies and Procedures Manual prepared by Kristine Price, Auditor, and direct that any substantial revisions to the manual be approved by the City Council/Redevelopment Agency. Altemative Action(s): Council/Agency may approve the manual with any revisions deemed necessary by Council. Analysis: At the request of the City Clerk's Office and pursuant to City Council/Redevelopment Agency direction on March 20, 1995, repair work has been completed on 18 Down Payment Assistance Loan Program Agreements consisting of 27 notes with an aggregate outstanding balance of.$400,826. Kristine Price, outside auditor, has reviewed the repair work and has provided the city with a Letter of Satisfaction stating the city has taken the necessary steps to protect its interests through the appropriate correction of document errors and the creation of a Policies and Procedures Manual. The City Attorney's Office has confirmed by letter that the loan agreement files have been sufficiently repaired to protect the city. During the audit and following the audit, Kristine Price, Auditor held productive meetings with staff prior to preparing a Policies and Procedure Manual that meets our city's needs. With revisions from time to time, this manual will serve our city well_ [It should be noted that the manual provides that any substantial revision to this manual shall be approved by the City Council/Redevelopment Agency.] The audit agreement that the City Council approved between the City and Kristine Price included the auditor conducting a training session with city staff. This session was not held due to Economic Development Department personnel turnover. The auditor deducted this from the agreement's final billing cost. However, the training session is available at such time as the city may require. City Clerk's Page Number 1. Two communications from Kristine D. Price, Auditor, dated 9/10/95 & 12/26/95 2. Communication from the City Attorney dated 11/30/95 3. City Council Resolution No. 96-29 "A Resolution Of The City Council Of The City Of Huntington Beach Adopting The Policies And Procedure Manual For Down Payment Assistance Loan Program." 4. Redevelopment Agency Resolution No. 273 "A Resolution Of The Redevelopment Agency Of The City Of Huntington Beach Adopting The Policies And Procedures Manual For Down Payment Assistance Loan Program." 5. Policies and Procedures Manual CK96001 M.DOC -3- 04105196 1119 PM 0 RESOLUTION NO. 96_29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ADOPTING THE POLICIES AND PROCEDURE MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM WHEREAS, the City Council of the City of Huntington Beach desires the preparation of uniform policies and procedures for administrating of the City's Down Payment Assistance Loan Program; and The City contracted the professional services of Kristine D. Price for the purpose of auditing the loan program and creating a manual for staff to utilize when processing loan documentation; and Said manual containing uniform standards, procedures and policies for implementation of the loan program has been prepared; NOW, THEREFORE, IT IS HEREBY RESOLVED that the City Council of the City of Huntington Beach adopts the Polices and Procedure Manual for Down Payment Assistance Loan Program dated September 1, 1995, for use by City staff in implementing the program. BE IT FURTHER RESOLVED that any material revision to the manual be approved by the City Council. PASSED AND ADOPTED by the City Council of the City of .Huntington Beach at an adjourned regular meeting thereof held on the 22nd day of April , 1996. fir ATTEST Mayor City Clerk APPROVED AS TO FORM: �cr City Attorney INITIATED AND APPROVED: [ xbJ,f.,1 4 , IkI Director of Economic Development 4xrsle. CITY CLERK /AGENV CLERK 7/k/downpay/3/19196 1 Res. No. 96-29 STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH } I, COtNNIE BROCKWAY, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an adjourned regular meeting thereof held on the 22nd of February, 1996 by the following vote: AYES: Councilmembers: Harman, Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo NOES: Councilmembers: None ABSENT: Councilmembers: None LAMM =A10— City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California G/resofuti/resbkpg 0 RESOLUTION NO. 273 A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH ADOPTING THE POLICIES AND PROCEDURE MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM WHEREAS, the Redevelopment Agency of the City of Huntington Beach desires the preparation of uniform policies and procedures for administrating of the Agency's Down: Payment Assistance Loan Program; and The City contracted the professional services of Kristine D. Price for the purpose of auditing the loan program and creating a manual for staff to utilize when processing loan documentation; and Said manual containing uniform standards, procedures and policies for implementation of the loan program has been prepared; NOW, THEREFORE, IT IS HEREBY RESOLVED that the Redevelopment Agency of the City of Huntington Beach adopts the Polices and Procedure Manual for Down Payment Assistance Loan Program dated September 1, 1995, for use by Agency staff in implementing the program. BE IT FURTHER RESOLVED that any material revision to the manual be approved by the Redevelopment Agency. PP�SSEQ���AND OPTED by the Redevelopment Agency of the City of Huntington Beach at a$gu` ? rVr 9e ng thereof held on the 22nd day of Apr; l , 1995. i ATTESTL� Chairman Agency Clerk RE AND APPROVED: Executive Mrectbr APPROVED AS TO FORM: fa/Agency Counsel �4 INITI ED AND o APPROVED: a�fd L -IgL,52 Director of Econom c Development ,�"a2A� CITY CLERK/AGENCY XLERK 7/k/downpay/3/19/96 2 Res. No. 273 STATE OF CALIFORNIA ) COUNTY OF ORANGE } CITY OF HUNTINGTON BEACH } I, CONNIE BROCKWAY, Clerk of the Redevelopment Agency of the City of Huntington Beach, California, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by the Redevelopment Agency of the City of Huntington Beach at an adjourned regular meeting of said Redevelopment Agency held on the 22nd day of April, 1996 and that it was so adopted by the following vote: AYES: Members: Harman, Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo NOES: Members: None ABSENT: Members: None Clerk of the Redevelopment Agency of the City of Huntington Beach, Ca. G/resoluti/resbkpg2 (Brisas 79%) LOAN AGREEMENT t;`rNC-y THIS LOAN AGREEMENT (the "Agreement") is made this ("ParticiparYraf, day of OCTOBER 19 94 by and between Y q-yj V OPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body, corporate and politic ("Agency"). RECITALS A. Participant has entered into an agreement (the "Purchase A reement") to purchase that certain real property commonly known as Cl '?Z 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 79% 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 Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. Agency desires to utilize tax increment money 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, all of which is consistent with the goals of the Affordable Housing Program and the Huntington Beach Redevelopment Plans. 1 7labnsasl08103I94 Cay- CLERK E. The Agency wishes to lend, and Participant wishes to Morrow, 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. A ncy Loan. Agency s II loan to P rticipant (the "Loan") the amount of W (— kU� Q �Ol VLL� Dollars ($ oo), subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note, the Disclosure Statement for the Program, the Deed of Trust and all applicable state, local and federal laws. The Loan shall be paid to the seller of the Property (the "Seller") by t e Agency through deposit of the Loan proceeds into escrow with &A E20'6w (the "Escrow Agent") (Escrow No. ). The Agency shall direct the Escrow Agent to apply the proceeds of the Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the Agency a promissory note in favor of the Agency as holder, in the amount of the Loan, with interest at five percent (5%) per year. The Loan, together with accrued interest and the equity share amount, shall be due in the event that Participant fails to comply with the terms of this Agreement, the Deed of Trust and Rider thereto, any Covenants, Conditions & Restrictions for Affordable Housing or Affordable Housing Agreement which is recorded on the Property, or any other law, requirement or condition of the Affordable Housing Program or governmental entity or sells the Property to a non -qualified Buyer. Otherwise, no payment of principal or interest shall be required during the term of the Loan. Participant shall execute and deliver a Promissory Note substantially in the form of the Promissory Note attached hereto as Exhibit "B" and incorporated herein by this reference. Participant shall also execute and deliver to the Agency a deed of trust encumbering the Property which small secure the Promissory Note (the "Deed of Trust"), in the form of Exhibit "C" attached hereto and incorporated herein. 71abr.sas108103l94 CITY CI FR1? ! • • 2. Maintenance of Property. Participant shall maintain the improvements on the Property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws. 3. Acceleration/Due on Sale. The Loan, all interest accrued thereon and the equity share amount as defined herein below, shall be due and payable upon (i) sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, except sale to a purchaser approved by Agency, (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 in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant (Attachment "D" to this Agreement) recorded on the property, or (iv) Participant violates any condition of the deed of trust or promissory note, or (v) the death of Participant (unless the Participant's household, occupying the property, contains more than one qualified participant and at least one qualified participant survives). At the request of Participant, the Agency may, in its sole discretion, extend the term of the Loan. 4. New Loan to Qualified Buyer. Notwithstanding the provisions herein above, if the Property is sold by the Participant to a Buyer defined as a low or moderate income household by Section 50093 of the California Health and Safety Code (or any other provision of law which may be enacted in the future, replacing Section 50093 or the law which defines "low or moderate" income for the purposes of affordable housing), and said 3 71ebrises108703194 0 Buyer is approved by Agency, ("Eligible Person or Family") and the Sales Price does not exceed an "affordable housing cost," as defined by Section 50052.5 of the California Health and Safety Code (or any other provision of law replacing this section which may be enacted in the future), and the Buyer assumes the Participant's loan, then no Equity Share Amount is due to the Agency upon such sale and interest is due under the conditions set forth below. In order to verify the Buyer's status as an Eligible Person or Family, Participant shall submit to the Agency, together with the notice of proposed sale pursuant to the Loan Agreement, the identity of the proposed Buyer and adequate information evidencing the income of the proposed Buyer. Said income information shall include original or true copies of pay stubs, income tax records or other financial documents in order that the Agency may determine and verify the household income of the proposed Buyer to determine Eligible Person or Family status and whether the Property is available to such Buyer at an affordable housing cost pursuant to the standards set forth in the Agency's Affordable Housing Program. If the Agency is unable to verify the Buyer's income as provided herein, then the Buyer's income shall be deemed to exceed the maximum allowable income limit for Eligible Persons and Families and the Equity Share Amount shall be due and payable concurrent with the repayment of the Note Amount plus interest. in the event that sale or transfer is made to an Eligible Person or Family, interest which has accrued upon close of escrow shall be due and payable, unless the Property has appreciated in value by an amount which would be less than the value of the Property had it appreciated at a rate of five per cent (5%) per year (plus the prorata amount for any portion of a year) over the original price paid by the Participant. If the price of the Property upon sale to an Eligible Buyer is less than the price paid by the Participant at the time of original purchase, plus five percent (5%) of that amount for each full year of ownership plus a prorata share of any portion of a year remaining, then no interest will be due upon such sale. Interest will begin to accrue at the simple rate of five percent per annum as to the new owner, on the date upon which escrow closes and will accrue on the then unpaid principal amount. 5. Notice to Agency. Participant agrees to notify the Agency not less than thirty (30) days prior to M the sale or transfer of the Property or 4 71abnsas108103194 60 any refinancing of the lien secured by the First Deed of Trust (the "First Mortgage) or any lien or note to which the lien secured by the First Deed of Trust is subordinate 6. Occur)ancy 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. 7. 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 79% of the area median income and would not have entered into this Agreement if Participant's income had exceeded 79% of the Orange County median income. 8. First Time Homebuyer. Participant represents and warrants to the Agency that neither Participant nor any of Participant's immediate family residing in the Property has, or has had, a present ownership interest in a principal residence at any time during all or any part of the three (3) years immediately prior to the funding of the Agency Loan. 9. Loan Servicing. The Agency may contract with a private lender to originate and service the Agency Loan. 10. Participant Financing. Participant shall obtain financing for the purchase of the Property from a reputable institutional lender approved by the Agency (the "Lender"). The lien secured by the Deed of Trust shall only be subordinate 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. 11. Covenants. Recorded in the Official Records of Orange County, California, is a declaration of conditions, covenants and restrictions 5 7labnsas108I03194 for property, which is known as an Affordable Housing Agreement or (covenants) which is attached as Exhibit "D" hereto and incorporated herein. Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in the Affordable Housing Agreement, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry, all as set forth in the Affordable Housing Agreement. 12. Equity Share. 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 concurrent with the principal and accrued interest, 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: (44%) 1. Prior to fifth anniversary of the Agency Deed of Trust: 2. After fifth anniversary but prior to sixth anniversary: 3. After sixth anniversary but prior to seventh anniversary: 4. After seventh anniversary but prior to eighth anniversary: 5. After eighth anniversary but prior to ninth anniversary: 6. After ninth anniversary but prior to tenth anniversary: fifty percent (50%) forty-eight percent (48%) forty-six percent (46%) forty-four percent forty-two percent (42%) forty percent (40%) 6 7/abris es/08/03194 • 7. After tenth anniversary but (38%) prior to eleventh anniversary: 8. After eleventh anniversary but (36%) prior to twelfth anniversary: 9. After twelfth anniversary but �34%) prior to thirteenth anniversary: percent thirty-eight percent thirty-six percent thirty-four percent 10. After thirteenth anniversary but thirty-two percent (32%) prior to fourteenth anniversary: 11. After fourteenth anniversary but thirty percent (30%) prior to fifteenth anniversary: 12. After fifteenth anniversary but twenty-eight percent prior to sixteenth anniversary: (28%) 13. After sixteenth anniversary but twenty-six percent prior to seventeenth anniversary: (26%) 14. After seventeenth anniversary but twenty-four prior to eighteenth anniversary: (24%) 15. After eighteenth anniversary but twenty-two percent prior to nineteenth anniversary: (22%) 16. After nineteenth anniversary but twenty percent (20%) prior to twentieth anniversary: 17. After twentieth anniversary but eighteen percent (18%) prior to twenty-first anniversary: 7fabnsas108103194 7 • • (16%) (14%) (12%) (4%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent 19. After twenty-second anniversary but fourteen percent prior to twenty-third anniversary: 20. After twenty-third anniversary but twelve percent prior to twenty-fourth anniversary: 21. After twenty-fourth anniversary but ten percent (10%) prior to twenty-fifth anniversary: 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: eight percent (8%) six percent (6%) 24. After twenty-seventh anniversary but four percent prior to twenty-eighth anniversary: 25. After twenty-eighth anniversary but two percent f 2%) prior to twenty-ninth anniversary: 26. After twenty-ninth anniversary but one percent (1 %) prior to thirtieth anniversary: 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the original purchase price paid by the Participant to the Seller for Sealer's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commission, loan fees or any other closing or transaction costs. 8 7labnsas108103l94 The "Sales Price" is the price to be paid by the buyer of the Property (the "Buyer") 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. In the event of sale of the Property and at the election of the Agency, the Agency may appoint a certified, independent appraiser to conduct any appraisal of the Property, at Participant's expense to assist the Agency in determining if the Sales Price is at or near the fair market value of the Property at such time. If the Sales -Price is determined by the appraisal to be three percent (3%) or more below the fair market value of the Property as estimated in said appraisal, then the "Sales Price" for purposes of determining the Equity Share Amount shall be the fair market value of the Property established in said appraisal. PARTICIPANT ACKNOWLEDGES AND AGREES THAT UPON THE OCCURRENCE OF ANY OF THE EVENTS DESCRIBED IN PARAGRAPH 3 ABOVE, PRIOR TO THE 30TH ANNIVERSARY, PARTICIPANT SHALL PAY TO AGENCY AN EQUITY SHARE AMOUNT EQUAL TO A PERCENTAGE SHARE OF THE APPRECIATION OF THE PROPERTY AS CALCULATED PURSUANT TO THIS SECTION. EXCEPT AS PROVIDED HEREIN, THE AGENCY ACKNOWLEDGES AND AGREES THAT PARTICIPANT SHALL ONLY PAY THE NOTE AMOUNT AND THE EQUITY SHARE AMOUNT TO THE AGENCY IF, AND ONLY IF, PARTICIPANT FAILS TO CONTINUOUSLY OWN AND OCCUPY THE PROPERTY FOR THIRTY (30) YEARS, PARTICIPANT FAILS TO COMPLY WITH THE PROVISIONS OF THIS AGREEMENT, OR PARTICIPANT SELLS THE PROPERTY TO A BUYER NOT QUALIFIED B.Y--T AGENCY. P A-RfLOOANT A CY The value of all capital improvements to the Property made while Participant owned and occupied the Property shall be deducted from the Sales Price when calculating the Equity Share Amount, if Participant complies with the following: 9 7rabnsys108103r94 The costs incurred by the Participant for capital improvements shall be deducted from the Sales Price only if Participant submits the following to the Agency: 0) an itemized list of the improvements, (ii) reliable proof of completion of the improvements (as evidenced e.g., by final building permits or certificate of completion), and (iii) reliable evidence of the cost of the improvements and that Participant paid those costs (as evidenced e.g., by an itemized invoice or receipt). Notwithstanding the foregoing, Participant's obligation to pay the Equity Share Amount is subject to a superior right of Participant, upon termination of the Agency Loan, to receive repayment of money paid by the Participant without Agency assistance for purchase of the Property (including down payment, installment payments of mortgage principal pursuant to the First Lien, escrow fees, transfer taxes, recording fees, brokerage commissions, and similar costs actually paid by the Participant) and money paid by the Participant for capital improvements to the Property. 13. 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. 14. Indemnification. The Participant shall defend, indemnify and hold harmless the Agency and the City of Huntington Beach and its respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the property 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 to make such payments, by virtue of the Loan. 15. Insurance. Participant shall maintain, during the term of the Agency Loan, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property. The policy shall name the Agency as loss payee and shall contain a statement of obligation on behalf of the carrier to notify the Agency of 10 Wabr.sa3l08103194 0 C7 any material change, cancellation or termination of coverage at least thirty (30) days in advance of the effective date of such material change, cancellation or termination. Participant shall transmit a copy of the certificate of insurance and loss payee endorsement to Agency within thirty (30) days of the effective date of this Agreement, and Participant shall annually transmit to Agency a copy of the certificate of insurance and a loss payee endorsement, signed by an authorized agent of the insurance carrier setting forth the general provisions of coverage. The copy of the certificate of insurance and loss payee endorsement. shall be transmitted to Agency as follows: REDEVELOPMENT AGENCY OF THE City of Huntington Beach Attention: Executive Director 2000 Main Street Huntington Beach, CA 92648 Any certificate of insurance must be in a form approved by the City Attorney. 16. 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 to protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 11 7lebrisss108103194 • • 17. Documents. Participant is aware that the Agency has prepared certain documents to implement the Affordable Housing Program and secure repayment of the Loan. Participant has reviewed and agrees to the terms and conditions contained in the following documents prior to receiving the Loan: (a) Disclosure Statement (b) Promissory Note; (c) Deed of Trust; and (d) The Affordable Housing Agreement (Exhibit "D"). (e) Notice of Right of Recission Participant agrees and acknowledges that the executed Deed of Trust, Disclosure Statement and the Affordable Housing Agreement shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. Participant further agrees to all terms and conditions of the Disclosure Statement which is hereby incorporated as if fully set forth herein. 18. 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 Loan. 19. 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. 20. Amendment of Agreement. No modification, recission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 12 7labnsas108l03194 0 21. 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. 22. Assumption Permitted/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. Assumption of the Loan shall be permitted, if consent is given by Agency. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 23. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous agreements between the Agency and the Participant concerning all or any part of the subject matter of this Agreement. 24. Relationship of Participant and A enc . The relationship of Participant and Agency pursuant to this Agreement is that of debtor and creditor and shall not be, or be construed to be a joint venture, equity venture, partnership, or other relationship. 25. Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: C? t<:;i;;) s -1- how To participant: ©�q {�_L Anff I� / r To Agency: THE REDEVELOPMENT AGENCY OF 13 7labnsas/08/031%4 riry — - The City of Huntington Beach Attention: Executive Director 2000 Main Street Huntington Beach, CA 92648 Either party may change its address for notice by giving written notice thereof to the other party. 26. Subordination Clause. In the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the Borrower's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Borrower or a related entity of the Borrower), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. 14 7Nbrisas108r03194 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below PARTICIPANT Date By /D- 1� Print Name Title Date Date �(. 9 APPROVED AS TO FORM By �a�,GAIL HUTTON �ti �� City Attorney/Agency Counsel Print Name Title REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH a municipal orporation Print Name Linda �OU 1}�r- Fader so n Its CHAIRPERSON ATTEST By Print Name Conn c e. _Q row Way Its CLERK 7/abnsas/08/03/94 15 EX MIT A 409 LMCA, C-23 (GRIFFIN) f-+' -•-. •� -• i� •. Y r 1 ��•I• 4' •s r9 r raR - ► ■ 1191•4!•i f'I' 7ti M• •' � ' \J-J?" � \ I Ir 17-Inlf r• 7- ■.� •` ■_ S■ •:• 'J]I :J-1-IS■ • •• S-IS■ IC f•f •1�1'•-! •• -■• 11 R19J' ■ 17■ ■ ^t9 • • ► I •af ■ ••■: ■ f.1. iR -J:,I y-o-J'0R • 1. \ 1 ■ It 1 _ Y• • fY• ■ •:'J ■• MM AM R +-• \=1:Y■ .; ME •• I■• fl e 1 • • BRLSAS tEL r - LOM= • Wr I OF ►• • M 14757, AS -1-• r CK A -•riGH • r• • '15••'"JRIJR ON S&VM4RM f 702.,M 42 VaCOW 43, nCLUSIVE OF f ^••at JW: ► 1 :a•• :ot ChLMOM. •.•71 • � ■ IR :�■ • r •:'1 ^• Ii'il al 1 I- r ra'Ja. \� •. 1: •• • 1 .`■ • • ■ fl `� • r • \ I IR ■:71 l �?>/ f \_I ■.�f\ 1• :+'t•'�` 1 �•J • `.• •1• !' 1■ I:J' . Ir • ► IS' ■:".• r •,. • "f Lv r• • IvIWO1 t :•� • Rai- \_ ••' 1 • ' :>':K 1 • !- 1 • S a' I• • / f. � !' • •. • ' N1 41 ID = �st�i •�."v e. 7• -�� I� •:• • ••5. r r• � �r• s. �r � •. la Wit �• •0 r f 1 J■ R:S.*•• n-t, DID gmtv one 5•r • AMM F• - R.M FM =J:•f PURPOSES r.S •• r .71s AS EXCLUSM USE APEAS 1IN THE •.f\,1 ,7►i• ■4 l ' :r' �, 1 '• �r 1• • ' r•.!t • IR • •i•.A--'•- ■�t71• • •' �'i. ' •:• • .y 1• •• II �' •►• r• R• •I• �1 1• ••�! RrS. �- ICI}■ 51 lfr •. .^t '1� 1 1 1 R.7•I • • • • DI- -- • ` • - CALIFORNIA ALL-PURPOSE AC OWLEDGMENT No 5907 State of County of 6&2�214 47 On DATE personally appeared 12 personally known to me - to be the personal whose names 4f,4are subscribed to the within instrument and ac- knowledged to me that #eiehefthey executed the same in hwi(har their authorized capacity(ies , and that by h44h-e4their WAYWELJOF WN signature(sj on the instrument the person(§), COWA099IN6 or the entity upon behalf of which the Notary Panic — calf*. ORANGEc1JUM persons acted, executed the instrument. My Cwwn. fV&ft MAY 11. 19917 WITNESS my hand and official seal. ATURE OF NOTARY OPTIONAL Though the data below is not required by law, d may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form_ CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER TME(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVAT R OTHER= SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTTTY(iES) DESCRIPTION OF ATTACHED DOCUMENT � TITLE i- TYPE OF D• ./ lZ NUMBER OF PAGES _.CL�L.Ctd� DATE OF DOCUMENT 1° - X � SIGN(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION - 8236 Remmet Ave.. P.O. Box 7194 - Canoga Park- CA 91309-7184 AMERIc • 4 `l STATE OF CALIFORNIA COUNTY OF ORANGE On 10-4--93 , before me, JOAN LASHER personally appeared OLGA CRISTINA GRIFFIN personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his (herltheir signatureJ 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 Title of Document Date of Document Other signatures not acknowledged OFFICIAL NOTARY SEAL JOAN LASHER y Notary Pubhc-Ca Joan a T t ORANGE COUNTY y Comm- EYpDEC 16, 199a (This area for ott caaf no,arral seal) M_ No_ of Pages 3008 019ef (Genecay First American Title Insurance Company • (Brisas 79%) LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this day of OCTOBER 19 94 by and be eti o� + 'l rkTTe.en i V1 FOURTH ("Participant") and THE CITY OF H TINGIQN BEACH, a municipal corporation ("City"). �J~)S�F n t- RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as z%q � j lVu, C -23 , 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 79% 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 City that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. City desires to utilize Community Development Block Grant funds in a manner consistent with federal guidelines to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach. E. The City wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: 1 71mamolLaankk18309314 " PM 1. City Loan City shall loan to Participant (the "Loan") the amount of __ Va ' YC.Q,, L'1lJVll i�`e(� Doliars ($ 0 0 ), subject to the conditions and restrictions set forth herein, in the Promissory Note, the Disclosure Statement for the Program, the Deed. of Trust and all applicable State, local and federal law. The Loan shall be paid to the seller of the Property (the "Seller") by the City through deposit of the Loan proceeds into escrow with -Q,Ic� JlpC V"d LJ (the "Escrow Agent") (Escrow No. 9). The City shall direct the Escrow Agent to apply the proceeds of the Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, andlor document fees. At such time, Participant shall execute and deliver to the City a promissory note in favor of the City as holder, in the amount of the Loan, with interest accruing at five percent (5%) per year, substantially in the form of the "Promissory Note" attached hereto as Exhibit "B" and incorporated herein. Participant shall also execute and deliver to the City a deed of trust encumbering the Property which shall secure the Promissory Note (the "Deed of Trust"), substantially in the form of Exhibit "C" attached hereto and incorporated herein. 2. Maintenance of Property. Participant shall maintain the improvements on the Property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws, including conditions of approval which may apply to the Property pursuant to an entitlement issued by the City. 3. Acceleration/Due on Sale. a) Except as herein provided, the Loan and all interest accrued thereon shall be due and payable upon (i) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, lit) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any amortization period longer than the loan secured by the First Mortgage, or Oil) Participant is in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing 2 7lmemolLoankk18309314;17 PM tf -ITV — Agreement or Covenant (Attachment "D" to this Agreement), as defined herein, recorded on the property, or (iv) Participant violates any condition of the deed of trust or promissory note, or iv) the death of Participant (unless the Participant's household, occupying the property, contains more than one qualified participant and at least one qualified participant survives). b) Exception to repayment provision. Accrued interest shall be due and payable upon sale of the Property only if, at the time of sale, the sales price of the Property is equal to or greater than the amount of the original purchase price plus five percent (5%) of that amount per year for every full year of ownership, starting at the close of escrow described in paragraph one (1) herein, and any pro-rata share applicable to any portion of a- remaining year. 4. Notice to City. Participant agrees to notify the City not less than thirty (30) days prior to W the sale or transfer of the Property or 00 any refinancing of the lien of the First Deed of Trust (the "First Mortgage") or any lien to which the lien of this Deed of Trust is subordinate. 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. 8. Income Information. Participant has submitted an eligibility verification form to the City prior to execution of this Agreement. Participant represents and warrants to the City that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the City is relying upon Participant's representations that Participant's income does not exceed 79% of the area median income and would not have entered this Agreement if Participant's income exceeded 79% of the area median income. 7. First Time Homebuyer. Participant represents and warrants to the City that neither Participant nor any of Participant's immediate family residing in the Property has, or has had, a present ownership interest in a principal residence at any time during all or any part of the three (3) years immediately prior to the funding of the City Loan. 8. Loan Servicing. The City may contract with a private lender to originate and service the City Loan. 3 71+nemo1Loankk1830937<=77 PM CITY ri rnv 9. Participant Financing. Participant shall obtain financing for the purchase of the Property from a reputable institutional lender approved by the City (the "Lender"). In addition, not less than three percent f3%i of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 10. Covenants. Recorded in the Official Records of Orange County, California, is a declaration of conditions, covenants and restrictions for property, which is known as an Affordable Housing Agreement or covenants which is attached as Exhibit "D" hereto and incorporated herein. 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 definedin the Affordable Housing Agreement, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry, all as set forth in the Affordable Housing Agreement. 11. Non -Waiver. Failure to exercise any right the City may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 12. Indemnification. The Participant shall defend, indemnify and hold harmless the City of Huntington Beach and its respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property of this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the City to make such payments, by virtue of the Loan. 13. Insurance. Participant shall maintain, during the term of the City Loan, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property. The policy shall name the City as loss payee and shall contain a statement of obligation on behalf of the carrier to notify the City of any material change, cancellation or termination of coverage at least thirty (30) days in advance of the effective date of such material change, cancellation or termination. Participant shall transmit a copy of the certificate of insurance and loss payee endorsement to City within thirty (30) days of the effective date of this Agreement, and Participant shall annually transmit to 4 7hmamolLoenkk18309114-17 PM City a copy of the certificate of insurance and a loss payee endorsement, signed by an authorized agent of the insurance carrier setting forth the general provisions of coverage. The copy of the certificate of insurance and loss payee endorsement shall be transmitted to City as follows: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Department of Economic Development Any certificate of insurance must be in a form approved by the City Attorney. 14. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 15. Documents. Participant is aware that the City has prepared certain documents to implement the Program and secure repayment of the Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Loan: (a) Disclosure Statement {b) Promissory Note; (c) Deed of Trust; and fdl The Affordable Housing Agreement (Exhibit "D") (e) Notice of Right of Recission 5 -AmemolLonnW83093l4-17 PM rnv �- Participant agrees and acknowledges that the Deed of Trust, Loan Disclosure Statement and the Affordable Housing Agreement shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. 16. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the City shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Loan. 17. Governing Law. This Agreement -shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. 18. Amendment of Agreement. No modification, recission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and City. 19. City May Assign. City may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 20. Participant Assignment Assumption Prohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the City, which consent may be given or withheld in the City's sole discretion. No assumption of the Loan shall be permitted at any time. This section shall not prohibit the City's right to assign all or any portion of its rights to the loan proceeds hereunder. 21. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous agreements between the City and the Participant concerning all or any part of the subject matter of this Agreement. 22. Relationship of Participant and City. The relationship of Participant and City pursuant to this Agreement is that of debtor and creditor and 6 7lmem01Losnkk%8309314-17 PM 67Y rr riv shall not be, or be construed to be a joint venture, equity venture, partnership, or other relationship. 23. Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address:i C1 1 Stin To Participant: 41 vtv, ("'7-5 Development To City: City of Huntington Beach Attention: Department of Economic 2000 Main Street Huntington Beach, CA 92648 Either party may change its address for notice by giving written notice thereof to the other party. 24. Subordination Clause In the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the Borrower's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Borrower or a related entity of the Borrower), receiving title to the Property through a foreclooure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. 7 7%memolLoankk18309314.17 PM IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. W9 By: Prin C �t Date: Date: APPROVED AS TO FORM: By: ` (2;.//oGAIL HUTTON, City Attorney' By: Print Name: Title: CITY OF HUNTINGTON BEACH, a municipal corporation Print Name: Linda Moull-cn-PAt-tevson Its: MAYOR ATTEST: By: G�yr�rt.c.,2 Print Name: r�, B rccltc,srr Its: CITY CLE iC 8 TSmama%L*&nkkk83093A 17 PM • • EXHIBIT A 409 UCICA, C-23 (GRIFFIN) l•I" � Y• 1 . " a �a'�?.- 1 1 1 I■ •13y�fr r• 17- . h �` l�17! •:' -l]I 7',-{3. i a{ ,`/7•. � - { -�• U ]ti Y• ! � • 1 v]�`I9•. 1•I . . •UI-/].r 3` !y! r • • f : •r • - r: Ir /-:r .� .- r_I]I! is • pArAm r M. 28, CMISTIM • - •a•fM f `1•+r-4•�•• �i! - •i•��i. �+��Ta� C -. ,r a:,.•• r-Iti. a; . r •• I!•NnnTJM PLAN ("FEM") FM BRLSAS l::A •C lar • • • OF 1• ../ 14757, AS MI • •'tl:k! • +• • •i•J••--ilM • 'i:rl• 1] i:M a' •• . IN M TO •.rl 1 • M ON a.lPLAN AM MM= r aMl ■.7f •J' I• ;rVM ISEREFM4 AIL ■ • GAS, MMMAISAND • 1 IM HMZ)=BCN SUBSIMNM MM MS I -, w •.` am IAM AD= A ! u• 1 CF 500 a AS PRWI= f 1 1-,t 19 - • - .• .t • • r 1 r I! la+. r- t: a! 1 I lar • -.•'I E23ZZMIVE IRSEMEMS.. •IL? I• ! PARMS ND. 1 AND NO. 2 fE.•+•= • FM t.-1 FM •''lv-•1 PURPOSES DE9MMM AS EXCLIDSM WE ARMS IN TM •.r]+ ]►,lr ■V i " :r• �1'J IS 3 /+ • - -.lal • • 1! • •�3`fl- 1:13i • • • f �`I: • .:• 1J 1 • •• I! t' y. rY• - Y• t- «• - I• -•�-r • a' f:13! cAtIFORNIA ALL-PURPOSE A OWLEDGMENT No 5907 State of County of On .24, l� before me, DATE NAME, 717tE OF FILER E.G..'JANE DOE. NOraRr iC personally appeared Z.,..CA,n&Jar&-j NAMES) OF SIGNER(S) p R'personally known to me - to be the person(J; whose name(§) mare subscribed to the within instrument and ac- knowledged to me that # s4l;elthey executed the same in h+e4herftheir authorized capacity ies and that by -4c�Ntheir signatures} on the instrument the person(s�, � C*A f91M or the entity upon behalf of which the hwa'Pdft—cafes, person(s) acted, executed the instrument. O ANW COUNTY — W Comm. EM**9 MAV 11.1 M WITNESS my hand and official seal. _S1GkfTURE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER TTTLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAWCONSERVA Er OTJI ER: )T / "':� - — SIGNER IS REPRESENTING: NAME 9F PERSON(S) ORJNTrTYpE% DESCRIPTION OF ATTACHED DOCUMENT TITL OR TYPE OF DOCUMENf NUMBER OF PAGES - DATE OF DOCUMENT SIG R(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION • 8236 Remmet Ave. P O_ Box 7184 • Canoga Park. CA 91309.718a ¢• AMERI�, • 1 9 } STATE OF CALIFORNIA }ss. COUNTY OF ORANGE } On 10-4-94 , before me, JOAN LASHER personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument_ WITNESS my hand and official seal. Signature Title of Document Date of Document Other signatures not acknowledged (This area for Official notal-al sea') No. of Pages OFFICIAL NOTARY SEAL •1 JOAN LASHER •►_ Notary Public-Caldomia i' ORANGE COUNTY - My Comm- Exp DEC. 16. 1994 3008 (1194) (General) First Arnei-Can Title Insurance Company .. i • • CITY CITY OF HUNTINGTON BEACH LOAN ASSISTANCE DIS-LO� TEMENT r► 5 to � rf- Me ( G16-- ("Applicant" J.uhderstand and agree that the provision of financial assistance from The City of Huntington Beach ("City") is conditioned upon a number of factors, including, but not limited to: • Me must qualify for a home loan from an institutional tender acceptable to the City. I/We must pay at least _:5 % of the home purchase price from our own funds I/We must qualify for assistance under the guidelines of the City's Program. I/We further understand and agree that: Me will be responsible for repaying the loan at the time I/we sell, transfer, refinance, or no longer occupy my/our home, or breach any part of the Loan Agreement. • INVe have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to rescind or cancel the loan to: City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 Attn: City Clerk The City will not require me/us to make payments of principal or interest during the term of the loan. The full balance of principal and interest will be due and payable if Ilwe do not comply with the terms of the agreement to which this statement is attached. There are no loan closing costs, prepayment penalties or charges, points, fees, finance charges, service charges, investigation fees, credit report fees, insurance premiums, notary or escrow fees, late payment charges or other fees payable pursuant to this loan. An appraisal fee may be payable upon the refinancing of mylour house. 741-sc15X0711 3/94 r pM 0 FRIC • • • The City shall not be held responsible for any costs associated with the institutional loan for the home Itwe 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 City cannot ensure that information provided by or on behalf of Applicant will be kept confidential. • The City shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/we assume all responsibility for determining whether Itwe desire to be considered for the Program, and I/we will inform myself/ourselves as to the availability and terms of other public or private loans. • The City shall not be charged with knowledge of the contents of the documents of the primary lender. 2 7%discisM112194 CITY CLERK • 0 The City financial assistance I/we receive under this Program may be considered to be income for purposes of federal or state income taxes and the City shall not be held responsible for the payment of any taxes which Uwe may incur by virtue of the receipt of such financial assistance. Dated: r/,/ — `,-e-- 4� Dated: Signature of applicant Dated: Signature of applicant APPROVED AS TO FORM: it Attorney a-1 �• 3 7%ducis107/I2194 'rnv �, r-r, • AGENCY THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH LOAN DISCLOW3 ,STATEMENT I/We t � A ("Applicant ) griderstand and agree that the provision of financial assistance from The Redevelopment Agency of the City of Huntington Beach ("Agency") is conditioned upon a number of factors, including, but not limited to: • IIWe must qualify for a home loan from an institutional lender acceptable to the Agency. IIWe must pay at least 3% of the home purchase price from our own funds. • I/We must qualify for assistance under the guidelines of the Agency's Program. INVe further understand and agree that: • I/We will be responsible for repaying the loan at the time Ilwe sell, transfer, refinance, or no longer occupy my/our home, or breach any part of the Loan Agreement. • INVe have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to rescind or cancel the loan to: Redevelopment Agency of the City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 Attn- Agency Clerk • The Agency will not require melus to make payments of principal or interest during the term of the loan. The full balance of principal and interest may be due and payable if llwe do not comply with the terms of the agreement to which this statement is attached or when the Loan is assumed. 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. 7%d,sct%x07/ 13M riTy ('I FRK • u • The Agency shall not be held responsible for any costs associated with the institutional loan for the home I/we purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The Agency cannot ensure that information provided by or on behalf of Applicant will be kept confidential. • The Agency shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. Itwe assume all responsibility for determining whether I/we desire to be considered for the Program, and Itwe 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. • All loans must be approved by the Redevelopment Agency of the City of Huntington Beach; therefore, a minimum 60-day escrow is necessary. 2 7W,u15107/ ] 2/W r1'1V I', r-v 1 I • The Agency financial assistance I/we receive under this Program may be considered to be income for purposes of federal or state income taxes and the Agency shall not be held responsible for the payment of any taxes which Itwe may incur by virtue of the receipt of such financial assistance- Dated.- �p r Onatur;ebf-�icant Dated: Dated: APPROVED AS TO FORM: A en y Counsel.4 _- -.0 zz ­�Q Signature of applicant Signature of applicant 7\di%c1sX07112r9a 3 E E CITY PROMISSORY NOTE Property Address C'� Z3 Huntin on Beach, California 1994 1. Promise to Pay. v , ("Borrower"1 promises to pay the CITY OF HUNTINGTON qitACH, a municipal corporation ("Holder," also referred to as "City"), at the office of the City in Huntington Beach, California, or at such other place as t e Holder m y signate in writin , th principal sum of `7 Vt (JY1�d�� Dollars { (the "Note Amount"), together with interest. The balance of all unforgiven unpaid_ principal and accrued interest shall be due and payable on .the 30th anniversary date of this Promissory Note. 2. Interest Rate Except as herein provided, interest shall be charged by the City on the portion of the Note Amount remaining unpaid from time to time, from the date of the disbursement of the Note Amount until the date upon which the Note Amount is repaid, at the simple rate of five percent (5%) per annum. 3. Affordable Housing Agreement This Promissory Note is made and delivered pursuant to and in implementation of an Affordable Housing Agreement recorded on the property as a covenant binding upon Borrower (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference, and a Loan Agreement between Borrower and City dated 10-4-94 . This Promissory Note is attachment "B" to the Loan Agreement. 4. A. Acceleration Except as otherwise provided herein, the whole of the Note Amount, any interest accrued thereon, and all other payments due hereunder and under the Agreement shall, at the option of the Holder, become due and be immediately payable to the Holder by the Borrower upon the occurrence of any one of the following events: (1) Borrower sells, transfers or makes disposition of the Property in whole or in part, including, without limitation, the lease, exchange or rental of the Property or any interest therein, whether voluntary or involuntary; (2) Borrower refinances any lien or encumbrances to which the City Deed of Trust is subordinate for loan amount in excess of the then current loan balance secured by such lien or encumbrance; (3) Borrower fails to occupy the Property as Borrower's principal residence pursuant to the Loan Agreement or is in breach or default of any other obligation under the Agreement or violates the terms of the Affordable Housing Agreement or Affordable Housing Covenant; i 7Aoandoc/atypromnotel0711 2194 Cl1Y CUKK (4) The close of a probate estate following the death of Borrower (unless Borrower is more than one person and one or more of the other people comprising Borrower survive); (5) Borrower defaults on this Promissory Note; (6) Borrower defaults on the Agency Deed of Trust. B. Exception to Payment Requirement Accrued interest shall be due and payable upon sale of the Property only if, at the time of sale, the sales price of the Property is equal to or greater than the amount of the original purchase price plus added thereto five percent (5%) of that amount for every full year of ownership, since the close of escrow described in paragraph one (1) herein, plus any pro rata share applicable to any portion of a remaining year. In the event that there is a default in payment as scheduled herein or a default under the terms of the Deed of Trust securing this Note, or a default of the Agreement or in any other instrument executed by Borrower or any guarantor in favor of the City, the City may at its election declare all amounts of the outstanding principal and accrued interest thereon immediately due and payable. 5. Application of Payments Any sums received hereunder may, at the options of Holder hereof, be applied in any order to the payment of costs, interest, or principal due hereunder. 6. Prepayment Privilege is reserved to make prepayments of principal on this Note without penalty or fee. 7. Non -Waiver Failure to exercise any right the Holder may have or be entitled to, in the event of any default hereunder, shall not constitute a waiver of such right or any other right in the event of subsequent default. 8. Borrower's Waivers The Borrower and all guarantors and endorsers hereof hereby severally waive certain requirements of the City. These are: a) to demand payment of amounts due (known as "presentation for payment"), b) to give notice that amounts due have not been paid (known as "notice of dishonor") and c) to obtain an of certification of nonpayment (known as "protest"). Borrower consents that the Holder hereof may extend the time of payment or otherwise modify the terms of payment of any part or the whole of the debt evidenced by this Note, by agreement between the Holder and Borrower, and such consent shall not alter or diminish the liability of any person or the enforceability of this Note. Each and every party signing or endorsing this Note binds itself as a principal and not a surety. In any action or proceeding to recover any sum herein provided for, no defense of adequacy of security, or that resort must first be had to security or to any other person shall be asserted. All of the terms, covenants, provisions, and conditions herein contained are made on behalf of, and shall apply to and bind, the undersigned and its successors and assigns, jointly and severally. E 7/1oandoc/citypromnote/07/7 2/94 i CM CLERK 9. Collection Costs If any attorney is engaged by the City to enforce or construe any provision of this Note or the Deed of Trust, or if City incurs any other expense by virtue of collecting sums due to the City under this Note, as a consequence of any default or event of default hereundere, with or without the filing of any legal action or proceeding, then Borrower shall immediately pay upon demand all attorney fees and all other costs incurred by the City, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal owing hereunder as if such unpaid attorney fees and costs have been added to the principal. 10. Security of Note This Note is secured by a Deed of Trust (The "Deed of Trust") of even date herewith executed by Borrower covering property located in Orange County, State of California, together with the buildings and improvements now or hereafter erected thereon. 11. Maximum Interest No provision of this Note or any instrument securing payment hereof or otherwise relating to the debt evidenced hereby shall require the payment or permit the collection of interest in excess of the maximum permitted by applicable law. If any excess of interest in such respect is herein or in such other instrument provided for, or shall be adjudicated to be so provided for herein or in any such instrument, the provisions of this paragraph shall govern, and neither Borrower or any endorsers of this Note nor their respective heirs, personal representatives, successors or assigns shall be obligated to pay the amount of such interest to the extent it is in excess of the amount permitted by applicable law. 12. Business Purpose The undersigned warrants and represents that all funds advanced under this Note shall be applied and are intended solely for personal, family or household purposes as set forth in the Agreement and not for any business or commercial purposes. 13. Notice Any demand or notice to be made or given under the terms hereof or any instrument now or hereafter securing this Note by the Holder to Borrower shall be effective when mailed or delivered in the manner specified in the Deed of Trust. 14. Payments Deferred All interest and principal payments will be deferred so long as the Borrower is in compliance with the terms of this Note, the Affordable Housing Covenants or Agreements recorded on the Property, the Deed of Trust and the Loan Agreement and uses the Property as his personal primary residence. 3 714oandocldtypromnotel0 7/ 12194 CITY CLERK I IN WITNESS HEREOF, this instrument has been executed as of the date set forth below. DATE: Z— DATE: APPROVED AS TO FORM: B y.Z 2-,?= - r +� City Attorney q.� ` 4 711oandocicaypromnote107/25194 By "Borrower" :ITY rr[Dv :. AGENCY PROMISSORY NOTE Property Address C 4-5 untington Beach, California ocToB R 4. . 1994 1. Promise to Pay. kLA �� ,� ("Borrower") promises to pay the REDEVELOP N NT AGENCY OF THE CITt OF HUNTINGTON BEACH, a public body, corporate and politic ("Holder," also referred to as "Agency"), at the office of the Agency in Huntington Beach, California, or at such other place as the Holder may signal i in wr' g, the principal sum o Dollars ( 0 (the "No Amount"), together with interest. The balance of all unforgiven unpaid principal and accrued interest shall be due and payable upon sale of the Property or upon occurrence of the other events listed in the acceleration clause herein. 2. Interest Rate Interest shall be charged by the Agency on the portion of the Note Amount remaining unpaid from time to time, from the date of the disbursement of the Note Amount until the date upon which the Note Amount is repaid, at the simple rate of five percent (5%) per annum. In the event that Borrower transfers the Property to a Buyer qualified to participate in the Agency's Affordable Housing Loan Program and approved by the Agency ("Qualified Buyer"), and the Property has appreciated in value by an amount which would be equal to or greater than the sales price of the Property to the qualified Buyer plus five percent (5%) of the original price added to each year of ownership, plus any prorata share of a portion of a full year which might remain at the time this is calculated, then, all accrued interest which would then have been due and payable if the Borrower were in default will be paid "on the date upon which escrow closes; however, no equity share amount shall be due. Interest at the rate of five percent (5%) per annum will begin to accrue as to the new Buyer on the remaining principal from the date upon which escrow closes and all interest thereafter accrued will be due and payable at the same time the Note becomes due and payable, unless the new qualified Buyer assumes the Loan. 3. Affordable Housing Agreement This Promissory Note is made and delivered pursuant to and in implementation of an Affordable Housing Agreement recorded on the property as a covenant binding upon Borrower (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference, and a Loan Agreement between Borrower and Agency dated 10-4-94 • This Promissory Note is attachment "B" to the Loan Agreement. 4. Acceleration The whole of the Note Amount, any interest accrued thereon, the equity share amount, and all other payments due hereunder and under the Agreement shall, at the option of the Holder, become due and be immediately payable to the Holder by the Borrower upon the occurrence of any one of the following events: (a) Unless sale is made to a qualified Buyer who assumes the Loan, Borrower sells, transfers or makes disposition of the Property in whole or in 71loandoclagencypromnotelo7l l 2194 CITY ri cov part, including, without limitation, the lease, exchange or rental of the Property or any interest therein, whether voluntary or involuntary; (b) Borrower refinances any Iren or encumbrances to which the Agency Deed of Trust is subordinate for loan amount in excess of the then current loan balance secured by such lien or encumbrance; (c) Borrower fails to occupy the Property as Borrower's principal residence pursuant to the Loan Agreement or is in breach or default of any other obligation under the Agreement or violates the terms of the Affordable Housing Agreement (Affordable Housing Covenant); (d) The close of a probate estate following the death of Borrower (unless Borrower is more than one person and one or more of the other people comprising Borrower survive); (e) Borrower defaults on this Promissory Note; If) Borrower defaults on the Agency Deed of Trust. In the event that there is a default in payment as scheduled herein or a default under the terms of the Deed of Trust securing this Note, or a default of the Agreement or in any other instrument executed by Borrower or any guarantor in favor of the Agency, the Agency may at its election declare all amounts of the outstanding principal and accrued interest thereon immediately due and payable. 5. Application of Payments Any sums received hereunder may, at the options of Holder hereof, be applied in any order to the payment df costs, interest, or principal due hereunder. 6. Prepayment Privilege is reserved to make prepayments of principal on this Note without penalty or fee. 7. Non -Waiver Failure to exercise any right the Holder may have or be entitled to, in the event of any default hereunder, shall not constitute a waiver of such right or any other right in the event of subsequent default. B. Borrower's Waivers The Borrower and all guarantors and endorsers hereof hereby severally waive certain requirements of the Agency. These are: a) to demand payment of amounts due (known as "presentation for payment"), b) to give notice that amounts due have not been paid (known as "notice of dishonor") and c) to obtain an official certification of nonpayment (known as "protest"). Borrower consents that the Holder hereof may extend the time of payment or otherwise modify the terms of payment of any part or the whole of the debt evidenced by this Note, by agreement between the Holder and Borrower, and such consent shall not alter or diminish the liability of any person or the enforceability of this Note. Each and every party signing or endorsing this Note binds itself as a principal and not a surety. In any action or proceeding to recover any sum herein provided for, no defense of adequacy of security, or that resort must first be had to security or to any other person shall be asserted. All of the terms, 2 7lloandoctagencypromnote107112194 covenants, provisions, and conditions herein contained are made on behalf of, and shall apply to and bind, the undersigned and its successors and assigns, jointly and severally. 9. Collection Costs If any attorney is engaged by the Agency to enforce or construe any provision of this Note or the Deed of Trust, or if Agency incurs any other expense by virtue of collecting sums due to the Agency under this Note, as a consequence of any default or event of default hereunder, with or without the filing of any legal action or proceeding, then Borrower shall immediately pay upon demand all attorney fees and all other costs incurred by the Agency, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal owing hereunder as if such unpaid attorney fees and costs have been added to the principal. 10. Security of Note This Note is secured by a Deed of Trust (The "Deed of Trust") of even date herewith executed by Borrower covering property located in Orange County, State of California, together with the buildings and improvements now or hereafter erected thereon. 11. Maximum Interest No provision of this Note or any instrument securing payment hereof or otherwise relating to the debt evidenced hereby shall require the payment or permit the collection of interest in excess of the maximum permitted by applicable law. If any excess of interest in such respect is herein or in such other instrument provided for, or shall be adjudicated to be so provided for herein or in any such instrument, the provisions of this paragraph shall govern, and neither Borrower or any endorsers of this Note nor their respective heirs, personal representatives, successors or assigns shall be obligated to pay the amount of such interest to the extent it is in excess of the amount permitted by applicable law. 12. Business Purpose The undersigned warrants and represents that all funds advanced under this Note shall be applied and are intended solely for personal, family or household purposes as set forth in the Agreement and not for any business or commercial purposes. 13. Notice Any demand or notice to be made or given under the terms hereof or any instrument now or hereafter securing this Note by the Holder to Borrower shall be effective when mailed or delivered in the manner specified in the Deed of Trust. 14. Payments Deferred All interest and principal payments will be deferred so long as the Borrower is in compliance with the terms of this Note, the Affordable Housing Covenants or Agreements recorded on the Property, the Deed of Trust and the Loan Agreement. All interest shall be due at the time the Note becomes due or upon sale to a qualified Buyer, if the Property has appreciated in value by 5% or more per year over the original purchase price. 3 7lloandoclage ncypro mnote10 7/ 12194 IN WITNESS HEREOF, this instrument has been executed as of the date set forth below. DATE:_ AP DATE: APPROVED AS TO FORM: Counsel fA SIGNATORY Borrower"rrov By 4 7laoandoclagencypromnotel0 7/25194 ►fUNro,r(_+., Y? ;, �' DOG # 94-45989 3i RECORDING REQUESTED BY �G►1 : r� 06—OCT-1994 pa.�� RH AND WHEN RECORDED RETURN TO: L ` 1� E ]r OCT ��, 0" fill r�� kecorded in Official Pe The City of Huntington Beach 1 , �� "-f Elranap Cnuntr. California 2000 Main Street 1 Lee A. Branch, County Recorder Fage s u Huntington Beach, California 92648 1 of 18 Fees: '1 hI.C� Attn: City Clerk 1 Tax. ; 0•00 ]Space Above Thrs Lore For RecorCer's Use_] This document is exempt from recording fees pursuant to Government Code Section 6103. DEED OF TRUST WITH ASSIGNMENTS OF RENTS �. GtlI S�tri 4th day of OCTOBER 1994 THI RUST is made this day of , by and a Y] whose address is; , — { e "T tar"I and THE REDEVELOPMENT AGENCY OF THE CITY OF H NTINGTON BEACH, a public body corporate and politic (the "Trustee") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a) all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and ld1 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. A. FOR THE PURPOSE OF SECURING: 1 . Payment of the sum of fjVQ, -_�AN54 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: la) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said 7%cl1oandocici1ytd1711 2194 1 Ci]7 CLERK 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 OCDOBER 4, 1994 ,, and in that certain Affordable Housing Agreement currently recorded on the property, insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor for of any successor -in -interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: 1. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry -rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements . on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (f) not to permit any stop notice claims to be 7%c11oandoclulytdl7t1 2/94 2 CITY CLERK • 0 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. 1n either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred. in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, 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. 71c11oandoc\o1ytd1711 2194 3 CITY CLERK 3. To pay: (a) at least ten 0 0) 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, (f1 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 fqr services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property is 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. 71c Ioandoc%city1d1717 2194 4 CITY CLERK 6. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such ' property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c) join in granting any easement thereon, id! join in any agreement subordinating the lien or charge hereof. 1 1 . 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 71c11oandociciiy1dM1 2194 5 CITY CLERK • • grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re -assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Agency the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Agency any duty to produce rents from the property affected by this Trust Deed, or cause Agency to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Agency confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Agency may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents, issues and profits shall not grant to Agency or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Agency or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, 71c\loandoclaiytd17/1 2/94 6 CITY CLERK shall not cure such breach or default not affect said sale proceedings or any sale made pursuant thereto but such rents issues royalties and profits less all costs of operation maintenance collection and reasonable attorneys fees when received by Beneficiary shall be applied in reduction of the Indebtedness secured hereby from time to time in such order as Beneficiary may determine Nothing contained herein nor the exercise of the right by Beneficiary to collect shall be or be construed to be an affirmation by Beneficiary of any tenancy lease or option nor an assumption of liability under nor subordination of the lien or charge of this Deed of Trust to any such tenancy lease or option 14 That if the security of this Deed of Trust is a leasehold estate the Trustor agrees that (a) the term Lease as used herein shall mean the lease creating the leasehold estate (b) Trustor shall not amend change or modify his leasehold interest or the Lease or agree to do so without the written consent of the Beneficiary (c) Trustor will promptly advise Beneficiary regarding any notice request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice request or demand (d) as long as any of the indebtedness secured hereby shall remain unpaid unless the Beneficiary shall otherwise consent thereto in writing the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct notwithstanding the union of said estates in any party (e) Trustor agrees that it will promptly strictly and faithfully perform fulfill and comply with all covenants agreements terms conditions and provisions under any lease affecting the premises and to neither do anything nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust In the event of a violation of any of the covenants set forth in this paragraph Beneficiary shall have the right at its option to declare all sums secured hereby immediately due and payable Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation It the security for this Deed of Trust is a leasehold estate the term property as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary 15 That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement and the Promissory Note if applicable hereunder and upon default by Trustor under the terms of any encumbrance charge or lien which is or appears to be prior or superior hereto Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property which notice Trustee shall cause to be filed for record Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures secured hereby After the lapse of such time as then may be required by law following recordation of such notice of default and notice of sale having been given as then required by law Trustee without demand on Trustor shall sell said property at the time and place fixed by it in such notice of sale whether as a whole or in separate parcels and in such order as it may determine at public auction to the highest bidder for case in lawful money of the United States payable at time of sale Trustee may postpone sale of 7\c\1oandoc\citytd\7/12/94 7 CITY CLERK 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 been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured hereby, whether or not names as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, at Beneficiary's request, monthly, on or before the 15th day of each month, a written operational report. Such operational report shall contain a brief but complete statement of the month's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 71cUoandocic tytd1711 7194 8 CITY CURK 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 change, 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 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. 7lcl1oandoc\a1ytd17112194 9 GTY CLERK THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address hereinbefore set forth. TRUSTOR- r By. By By: APPROVED AS TO FORM: City �torney q z-5Y 71cl1oand0c1cr1ytd17125194 10 CITY CLE" THE LAND REFERRED TO IN =S REPORT IS SITU= IN THE STATE OF MLIFM41A, COUNTY OF ORANGE AMID IS DESCRIBED AS FOLLOWS: PARCEL, 1: UNIT NO. 23, MMISTING OF CURTAIN AIRSPACE AMID SURFACE ELEMENM, AS S::OWN AND DESCRIBED IN THE CaMaCNIUM PLAN ( "PLAN") FOR BRSSAS DEL, MAR LOCATEI) ON LOT 1 OF TRACT 14 757 , AS S� ON A SUBDIVISIC N MAP RECORDED ON SEVIMS R L, 1993, IN BOOK 701, PAGES 42 THRDL:24 43, 24C:LUS IVE OF MISCEZIANECUS MAPS, IN THE OFFICE OF Twx-- ORANGE C77r= RECIORDER ( "OFFICIAL RECORDS") , WHICH PLAN WAS RECORDED ON S_PT' FR 15, 1993, AS LTTb=?= NO. 93-0621742, OF OFFICIAL RECORDS, CALIFORNIA. PARCEv 2. AN UZI-VIDED ONE FORTY-FOURTH (L/44) FEE SIMPLS INTEREST AS A TENwr IN CL^NN1'JN IN AND TO MOaJLE B SHOWN ON T1 E PLAN AND DEF= IN THE DECLARATION REFZRRED TO BELOW AS THE "CS fi? N AREA". 0► •ICI'T M OIL, !iC tTlV1WM& •1`Ir •ql• •11419`%4 rjj&Y• C aM=ACE OF SAID LAND ABOVE A ME= OF 500 FEET, AS PROV= IN INSMWENM OF •Wr • • I • Ir • - r •I- : 71r � I r M •: PARCH, 4: EXCLUSIVE. EASEVENM APPUR E29LW TU PARCELS NO. L AMID NO. 2 DESCRIBED ABOVE :UR USE FOR PARKING PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECLARATION, OVER PORTIONS OF LOT 1 OF TRACT 14757 SICM AMID ASSIGNED IN THE PLAN. PARCH 5: AN EXCLUSIVE EASII= APPURMMNr TO PARCELS NO. L AND NO. 2 DESCRIBED ABOVE, :OR USE FUR PATIO, BALCONY, AND FIRE ESCAPE ST IRC ASE PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECLMATION, AS APPLICAHI£, OVER P=CNS OF LOT L CF TRACT 14757 AS SHOW, ASSIGNED AND DESCRIBED IN THE PLAN. DEED CERTIFICATION This is to certify that the interest in real property conveyed by the deed dated ---- - -4 -94 ------------------- from Olga Christina Griffin to the City of Huntington Beach, 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 3 5 3 7 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 CITY OF FRWMGTON BEACH CONNIE BROCKWAY, CMC MY CLERK Byz - ------------- De ty City Cle deedcert S• AMERI � STATE OF CALIFORNIA }ss. COUNTY OF ORANGE } On 10-4-94 JOAN LASHER before me, personally appeared OLGA CRISTINA GRIFFIN , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and Official seal. Signature Title of Document Date of Document Other signatures not acknowledged (ihis area for otlprxal notarial seal) No. of Pages amy OFFICIAL NOTARY SEAL JOAN LASHES Notary Public-Ca)rforUa ORANGE COUNTY Comm Exp. DEC_ 16. 199+► 3008 (t Via) (General) First American Title Insurance Company CITY RIDER TO CITY OF HUNTINGTON BEACH DEED OF TRUST AFFORDABLE HOUSING PROGRAM 1 er to the,City of Huntington Beach Deed of Trust which was executed by Cusl:or for the property located at 4p cc_ 2, } is subject to the terms and conditions of that certain Loan Agreement entered into by and between Beneficiary and Trustor dated OCTOBE:R 4 , 19 94 , to which this rider is attached a'i Exhibit "C" and incorporated by reference (the "Loan Agreement"), pursuant loo which Beneficiary has agreed to loan Trustor the sum of �BVe tAOSa W.� C1 Dollars ($ ) {the "Loan Amount"] with simple interest to accrue at five percent (5%) yearly. All terms in this Rider to City of Huntington Beach Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. 1. Acceleration/Due on Sale. A. Except as provided herein, the Loan and all interest accrued thereon shall be due and payable upon (i) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any amortization period longer than the loan secured by the First Mortgage, or (iv) Trustor being in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the property, or (v) Trustor violates any condition of the deed of trust or promissory note, or NO the death of Trustor (unless the Trustor's household, occupying the property, contains more than one qualified participant in the affordable housing program pursuant to which this Loan is being made, and at least one qualified participant survives). At the request of Trustor, the City may, in its sole discretion, extend the term of the Loan. 1 7 f1oa"Aoc1c,1vndr10711 2194 CITY CLERK B. Exception to repayment provision. Accrued interest shall be due and payable upon sale of the Property only if, at the time of sale, the sales price of the Property is equal to or greater than the amount of the origihal purchase price plus five percent (5%) of that amount per year for every full year of ownership, starting at the close of escrow described in paragraph one 11) herein, and any pro rata share applicable to any portion of a remaining year. 2. . Occupancy Standards. The Property shall be used as the personal residence of Trustor and Trustor's immediate family and for no other purpose. Trustor shall not enter into an agreement for the rental or lease of the Property. 3. Protection of Beneficiary's Rights in the Property. A. If Trustor fails to perform the covenants and agreements contained in this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Beneficiary may do and pay for whatever is necessary to protect the value of the Property and Beneficiary's rights in the Property. Beneficiary's actions may include paying any sums secured by a lien which has priority over this Deed of Trust, appearing in court, paying reasonable attorney's fees and entering on the Property to make repairs. Although Beneficiary may take action under this Section, Beneficiary does not have to do so. B. Any amount disbursed by Beneficiary under this section, shall become additional debt of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the highest rate permitted by law and shall be payable, with interest, upon notice from Beneficiary to Trustor requesting payment. 4. Subordination. The Beneficiary has found and declared that an economically feasible method of financing, refinancing or assisting first time homebuyers pursuant to the 2 711oa ndocluryr 1d,107112194 Q1Y CLERK Program on substantially comparable terms and conditions without subordination is not reasonably available. Any first lien on the Property ("First Lien") held by an institutional lender or investor (the "Lender") or second lien held by the Redevelopment Agency of the City of Huntington Beach, as may be evidenced by a Deed of Trust recorded on the Property, shall be prior and superior to the Declaration and this Deed of Trust. In the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the Trustor's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Trustor or a related entity of the Trustor), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. 5. Obligation to Refrain_ from Discrimination. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Beneficiary itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the City or any portion thereof. Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the Trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1) the First Lien; 2) the Declaration of Covenants, Conditions & Restrictions for Affordable Housing; 3) the Redevelopment Agency Deed of Trust; and 4) the City Trust Deed. 3 711oandocic Q yndr10711 2194 CITY CI FRir I The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the First Lien deed of trust or mortgage requesting a statutory notice of default as set for the in the California Civil Code. APPROVED AS TO FORM: City Attorney 4�-Ili 4 TRUSTOR'S SIGNATURE r r 7 Aoa ndockityndrl0 712 5194 CIIY CLERK AMERI�, • 9 } STATE OF CALIFORNIA }ss COUNTY OF ORANGE } On 10-4-94 , before me, JOAN LASHER personally appeared OLGA CRISTINA GRIFFIN , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature OFFICIAL NOTARY SEAL JOAN LASHER Notary Public-Calrforn'la ORANGE COUNTY My Comm. Exp. DEC_ 16. 199a (This area for ;ahcial nglanal seal) Title of Document Date of Document No. of Pages Other signatures not acknowledged 3008 M94i (General) First American Title Insurance Company • ''.'3GENCY ' KECEiL•FC C.liy:�[L!. CITT -. HUNTf!fC7�} �._ RECORDING REQUESTED BY )-CH. L4r IF. AND WHEN RECORDED RETURN TOQCI L1' 1 � F}I 13q The Redevelopment Agency of the I City of Huntington Beach I 2000 Main Street I Huntington Beach, California 92648 I Attn: City Clerk ? DOC # 94_0 7989 7 06—OCT-1994 03:1- F �'ecorefej M if} affEciaZ of Qranae Coo Records n#y, California Lee A. FYancn, F'aae I of 23 Fep,:�orlfn#y Recorder Tax: f 76.00 0.00 [Space Above Dus Line For Recorder's Use.! This document is exempt from recording fees pursuant to 1 Government Code Section 6103. rn DEED OF TRUST WITH ASSIGNMENTS OF RENTS 4 �Z= E TRUST is made this h da o OC�BE� byand a �. l ,whose address is pi ll -- Or 'stor") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a) all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. A. FOR THE PURPOSE OF SECURING: ff4 1. Payment of the sum of 4�(Vwith interest thereon according to the terms of a Promissor Note of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof. 7 17 rA— 71DEEDRENTX0711 319418 CITY ricov 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 containeerein in the Loan Agreement between Beneficiary and Trustor dated LQCTL'7BER 4 , 1993, and in that certain Affordable Housing Agreement currently recorded on the property, insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor -in -interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: 1. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry -rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, pruner and do ab other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen 0 5) 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 71DEEDRENTl0711 2/9418 2 with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property: (f) not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such 71DEEDRENT10711219418 3 CITY CLERK 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, (bi 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, M for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from -any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property is 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. 71DEEDRENM7112194M 4 6. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: {a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, Icl 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 71DEF.DRENTW7/1219418 5 r'IlY rl FOW reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re -assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Agency the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Agency any duty to produce rents from the property affected by this Trust Deed, or cause Agency to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Agency confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Agency may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents, issues and profits shall not grant to Agency or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Agency or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale 71DEEDRENTW7112/9418 6 r.ry r. -, 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"; Ibl Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; {d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. It the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in 7%bEEDRENT10711219418 7 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 outer 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 been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured hereby, whether or not names as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, at Beneficiary's request, monthly, on or before the 15th day of each month, a written operational report. Such operational report shall contain a brief but complete statement of the month's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 7\DEEDRENT107/12/94/8 8 CITY r'r rnv 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 change, 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 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. 71DEEDRENM7/12/9418 9 THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address hereinbefore set forth. TRUSTOR: By: sy By: APPROVED AS TO FORM: - cy Counsel �� y_Z�y Age Y /'t�. �50W U 7NDEEDREN7107/2519418 10 jF-. , THE LAND REFERRED TO IN THIS REPORT IS SITUATED IN THE STATE OF CALIFORNIA, COLZTTY OF ORANGE AND IS DFSCRIBED AS FOLLOWS: PARCEL 1: UNIT NO. 23, CONSISTING OF CERTAIN AIRSPACE AND SURFACE E104TIS, AS SHOWN AND DES=ED IN THE PLAN ("PLAN") FOR BRISAS DEL MAR LOCATED ON LOT 1 OF TRACT 14757, AS SHOWN ON A SUBDIVISION MAP REOORDED ON SEF'=ER L, 1993, IN BOOK 701, PADS 42 43, INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE ORANGE COUNTY RECORDER {"OFFICIAL RECORDS"), WHICH PLAN WAS RECORDED ON SEP=- ER 15, 1993, AS D19M = NO. 93-0621742, OF OFFICIAL RECORDS, a%L I : ORN'IA . PARCE✓ 2: AN Lri 17VIDED ONE FORTY - F t7URTH (L/4 4) FEE S IlKPLB IlM REST AS A 'I`T]ANT IN OJ+10N IN AND TO MODULE B SHOWN ON THE PLAN AND DEFINED IN THE DECLARATION RED..= TO BLOW AS THE "Ca44DN AREA" . =CEPT ';:"RCM ALL OIL, GELS, MIl,ALS AND OTHER HYDROCARBON SUBSTANCES L= BELOW A D= OF 500 FEET WITHOUT ANY RlCi37 TO ENTER UPON RAT THE SURFACE OR THE SUBSURFACv OF SAID LAND ABOVE A DEPTH OF 500 =, AS PROVIDED IN INSIRUYENTS OF RECORD. : r• el �• • • la r•' r : a a It •' • ia' -• PARCEL 4: EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS NO. L AND NO. 2 DESCRIBED ABOVE FOR USE FOR PARKING PURPOSES DESCRI= AS EXCLLSIVE USE AREAS IN THE DECI,ARATIaV, OVER PORTIONS OF LOT 1 OF TRACT 14757 SHOWN AND ASSIGNED IN THE PLAN. PARCEL 5 : AN EXCLUSIVE EASEMENT APPURTENANT TO PARCELS S NO. L AND NO. 2 DESCRIBED ABOVE, FOR USE FOR PATIO, BALC CNY, AND FIRE ESCAPE =JRC ASE PURPOSES DE~SCR= AS EXCLUSIVE' USE AREAS HV THE DECLARATION, AS APPLICABLE, OVER PORTIONS OF LOT L 0= TRACT 14757 AS SHOWN, ASSI= AND DESCRIBED IN THE PLAN. a • . J J.& CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK DEED AUTHORIZATION CALIFORNIA 92648 This is to certify that the interest in real rty conveyed by the deed dated Aa-q 9'1 from to the REDEVELOPMENT AGENCY OF THE CITYopeF HUNTINGTON BEACH, a governmental agency, is hereby accepted by the undersigned officer or agent on behalf of Agency pursuant to authority conferred by Resolution No.*? (o of the Agency adopted by its governing body on $une 20j [ and the grantee consents to recordation thereof by its duly authorized officer. Dated: &,#/ REDEVELOPMENT AGENCY OF THE CITY I OF HUNTINGTON BEACH 1014 K i Telephone: 774536-5227 ) ti STATE OF CALIF" COUNTY OF On 10-4-94 personally appeared A M E R j , before me, JOAN LASHER _OLGA CRISTINA GRIFFIN } }ss. , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument WITNESS my hand and official seal. Signature Title of Document Date of Document Other signatures not acknowledged iTh.% area [or of'iaal nota•ial seal) No. of Pages OFFICIAL NOTARY SEAL JOAN LASHER 1 %�My Notary Public-Caldorn ORANGE COUNTY Comm- Exp DEC- 16. 1994 MJB "r931 IGenerall rust American Tdlr- Insurance Company • AGENCY RIDER TO REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DEED OF TRUST AFFORDABLE HOUSING PROGRAM This rider to the Redevelo nt A e e of Huntington Beach Deed of ` V(v\ Trust which wasexecutedb (Tru for for the property located at C) is sub t to the terms and conditions of that certain Loan Agreement entered into by and between Beneficiary and Trustor dated OCTOBER 4 19 94 , to which this rider is attached as Exhibit "C" and incorporated by reference (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Dollars ($ Vb, CC ) (the "Loan Amount") with simple interest to accrue at five percent (5%) yearly. All terms in this Rider to Redevelopment Agency of the City of Huntington Beach Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. 1. Acceleration/Due on Sale. A. Except as provided herein, the Loan and all interest accrued thereon shall be due and payable upon (i) sale or transfer to a Buyer not qualified to participate in the Agency's Affordable Housing Loan Program or not approved by the Agency ("Qualified Buyer"), or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any amortization period longer than the Loan secured by the First Mortgage, or (ivi Trustor being in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the Property, or (v) Trustor violates any condition of the Deed of Trust or Promissory Note, or (vi) the death of Trustor (unless the Trustor's household, occupying the Property, contains more than one qualified participant in the affordable housing program pursuant to which this Loan is being made, and at least one qualified participant survives). At the request of Trustor, the Agency may, in its sole discretion, extend the term of the Loan. 1 7noandocfagcyrWr/07112194 r1TV r—, B. Exception to Repayment Provision. Accrued interest shall be due and payable upon sale of the Property to a Qualified Buyer who assumes the Agency Loan only if, at the time of sale, the sales price of the Property is equal to or greater than the amount of the original purchase price plus five percent (5%) of that amount per year for every full year of ownership, starting at the close of escrow described in paragraph one (1 ) herein, and any pro rata share applicable to any portion of a remaining year. 2. Occupancy Standards. The Property shall be used as the personal residence of Trustor and Trustor's immediate family and for no other purpose. Trustor shall not enter into an agreement for the rental or lease of the Property. 3. Protection of Beneficiary's Rights in the Property. A. If Trustor fails to perform the covenants and agreements contained in this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Beneficiary may do and pay for whatever is necessary to protect the value of the Property and Beneficiary's rights in the Property. Beneficiary's actions may include paying any sums secured by a lien which has priority over this Deed of Trust, appearing in court, paying reasonable attorney's fees and entering on the Property to make repairs. Although Beneficiary may take action under this Section, Beneficiary does not have to do so. B. Any amount disbursed by Beneficiary under this section, shall become additional debt of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the highest rate permitted by law and shall be payable, with interest, upon notice from Beneficiary to Trustor requesting payment. 4. Equity Share. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of the Loan Agreement, Trustor shall pay to Beneficiary 2 7Aoa ndocla gcyndr1o7112194 concurrent with the principal and accrued interest, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary fifty percent (50%) of the Agency Deed of Trust: 2. After fifth anniversary but forty-eight percent (48%) prior to sixth anniversary: 3. After sixth anniversary but forty-six percent (460 ) prior to seventh anniversary: 4. After seventh anniversary but forty-four percent (44%) prior to eighth anniversary: 5. After eighth anniversary but forty-two percent (42%) prior to ninth anniversary: 6. After ninth anniversary but forty percent (40%) prior to tenth anniversary: 7. After tenth anniversary but thirty-eight percent (38%) prior to eleventh anniversary: 8. After eleventh anniversary but thirty-six percent (36%) prior to twelfth anniversary: 9. After twelfth anniversary but thirty-four percent (34%) prior to thirteenth anniversary: 10. After thirteenth anniversary but thirty-two percent (32%) prior to fourteenth anniversary: 11. After fourteenth anniversary but thirty percent (30%) prior to fifteenth anniversary: 12. After fifteenth anniversary but twenty-eight percent (28%) prior to sixteenth anniversary: 3 7Aoe ndoclagcyndr/0 7/ 12194 13. After sixteenth anniversary but twenty-six percent (26%) prior to seventeenth anniversary: 14. After seventeenth anniversary but twenty-four percent (24%) prior to eighteenth anniversary: 15. After eighteenth anniversary but twenty-two percent (22%) prior to nineteenth anniversary: 16. After nineteenth anniversary but twenty percent (20%) prior to twentieth anniversary: 17. After twentieth anniversary but eighteen percent (18%) prior to twenty-first anniversary: 18. After twenty-first anniversary but sixteen percent (16%) prior to twenty-second anniversary: 19. After twenty-second anniversary but fourteen percent (14%) prior to twenty-third anniversary: 20. After twenty-third anniversary but twelve percent (12%) prior to twenty-fourth anniversary: 21. After twenty-fourth anniversary but ten percent (10%) prior to twenty-fifth anniversary: 22. After twenty-fifth anniversary but eight percent (8%) prior to twenty-sixth anniversary: 23. After twenty-sixth anniversary but six percent (6%) prior to twenty-seventh anniversary: 24. After twenty-seventh anniversary but four percent (4%) prior to twenty-eighth anniversary: 25. After twenty-eighth anniversary but two percent (2%) prior to twenty-ninth anniversary: 26. After twenty-ninth anniversary but one percent 0 %1 prior to thirtieth anniversary: 27. After thirtieth anniversary: zero percent (0%) 4 7noandoclagcyndrl07112194 The "Purchase Price" is the original purchase price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commission, loan fees or any other closing or transaction costs. The "Sales Price" is the price to be paid by the buyer of the Property (the "Buyer") 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. In the event of sale of the Property and at the election of the Agency, the Agency may appoint a certified, independent appraiser to conduct any appraisal of the Property, at Participant's expense to assist the Agency in determining if the Sales Price is at or near the fair market value of the Property at such time. If the Sales Price is determined by the appraisal to be three percent (3%) or more below the fair market value of the Property as estimated in said appraisal, then the "Sales Price" for purposes of determining the Equity Share Amount shall be the fair market value of the Property established in said appraisal. PARTICIPANT ACKNOWLEDGES AND AGREES THAT IN THE EVENT THAT THE LOAN WHICH THE DEED OF TRUST SECURES BECOMES DUE AND PAYABLE PRIOR TO THE 30TH ANNIVERSARY OF THE LOAN AGREEMENT, PARTICIPANT SHALL PAY TO AGENCY AN EQUITY SHARE AMOUNT EQUAL TO A PERCENTAGE SHARE OF THE APPRECIATION OF THE PROPERTY AS CALCULATED PURSUANT TO THIS SECTION. THE AGENCY ACKNOWLEDGES AND AGREES THAT PARTICIPANT SHALL ONLY PAY THE EQUITY SHARE AMOUNT TO THE AGENCY IF, AND ONLY IF, PARTICIPANT FAILS TO ABIDE BY COVENANTS OR OTHERWISE FAILS TO COMPLY WITH THE PROVISIONS OF THIS AGREEMENT OR PARTICIPANT SELLS THE PROPERTY TO A BUYER NOT QUALIFIED BY T-H CY IN ACCORDANCE WlTkj PARAGRAPH "C" BELOW. l PA IPANTITRUSTOR AGENCY �i 7Aoa ndocla gcvr idr 107/ 1 2194 The value of all capital improvements to the Property made while Participant owned and occupied the Property shall be deducted from the Sales Price when calculating the Equity Share Amount, if Participant complies with the following: The costs incurred by the Participant for capital improvements shall be deducted from the Sales Price only if Participant submits the following to the Agency: (1) an itemized list of the improvements, (ii) reliable proof of completion of the improvements (as evidenced e.g., by final building permits or certificate of completion), and (iii) reliable evidence of the cost of the improvements and that Participant paid those costs (as evidenced e.g., by an itemized invoice or receipt). Notwithstanding the foregoing, Participant's obligation to pay the Equity Share Amount is subject to a superior right of Participant, upon termination of the Agency Loan, to receive repayment of money paid by the Participant without Agency assistance for purchase of the Property (including down payment, installment payments of mortgage principal pursuant to the First Lien, escrow fees, transfer taxes, recording fees, brokerage commissions, and similar costs actually paid by the Participant) and money paid by the Participant for capital improvements to the Property. 5. New Loan to Qualified Buyer. Notwithstanding the provisions herein above, if the Property is sold by the Trustor to a Buyer of low or moderate income, as defined by Section 50093 of the California Health and Safety Code, or any provision of law which may be enacted in the future, replacing Section 50093 or the law which defines "low or moderate" income for the purposes of affordable housing, and approved by Agency, ("Eligible Person or Family") and the Sales Price does not exceed an "affordable housing cost," as defined by Section 50052.5 of the California Health and Safety Code, to such Buyer, and the Buyer assumes the Trustor's loan, then no Equity Share Amount is due to the Beneficiary upon such sale. In order to verify the Buyer's status as an Eligible Person or Family, Trustor shall submit to the Beneficiary, together with the notice of C:� 7noand0c/4Lycy.id,r0711 2194 CITY ri rov r. proposed sale pursuant to the Loan Agreement, the identity of the proposed Buyer and adequate information evidencing the income of the proposed Buyer. Said income information shall include original or true copies of pay stubs, income tax records or other financial documents in order that the Beneficiary may determine and verify the household income of the proposed Buyer to determine Eligible Person or Family status and whether the Property is available to such Buyer at affordable housing cost. If the Beneficiary is unable to verify the Buyer's income as provided herein, then the Buyer's income shall be deemed to exceed the maximum allowable income limit for Eligible Persons and Families and the Equity Share Amount shall be due and payable concurrent with the repayment of the Note Amount plus interest. In the event that sale or transfer is made to an Eligible Person or Family, interest which has accrued at the time of the sale 4upon close of escrow) shall be due and payable, unless the Property has appreciated in value in an amount which would be equal to or less than the value of the Property if the appreciation rate had been five per cent i5%I per year over the original price paid by the Trustor. If the price of the Property upon sale to an Eligible Buyer reflects less than 5% appreciation per year over the price paid by the Trustor at the time of original purchase, then no interest will be due upon such sale. Interest will begin to accrue at the simple rate of five percent per annum as to the new owner, on the date upon which escrow closes and will accrue on the then unpaid principal amount. 6. Subordination. The Beneficiary has found and declared that an economically feasible method of financing, refinancing or assisting first time homebuyers pursuant to the Program on substantially comparable terms and conditions without subordination is not reasonably available. Any first lien on the Property ("First Lien") held by an institutional lender or investor (the "Lender") shall be prior and superior to the Declaration and this Deed of Trust. Thus, in the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the rA 711oandoclagcyndrl07112194 1 tay C1 Fvr • 0 Trustor's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Trustor or a related entity of the Trustor), receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. 7. Oblation to Refrain from Discrimination. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Beneficiary itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the City or any portion thereof. Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the Trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1 I the First Lien; 2) the Declaration of Covenants, Conditions & Restrictions for Affordable Housing; and 3) the Agency Deed of Trust. W Moondoc/a gtyndr;Q)! 1 2194 CITY rr rnv The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the First and Second Liens, deeds of trust, or mortgages, requesting a statutory notice of default as set for the in the California Civil -Code. T R' SIGNA URE �G APPROVEPO AS TO FOR 4 /4�J Agency Counsel TRUSTOR'S SIGNATURE 41 7A08nd0c1a9cyridrl07125194 s .V A M E R I ) STATE OF CALIFORNIA )ss. COUNTY OF ORANGE On , before me, JQAN r,ASHER personally appeared OLGA CRISTINA GRIFFIN , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in his(herltheir authorized capacity(ies), and that by his/her/their signatures) 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 Title of Document Date of Document Other signatures not acknowledged (TNs area for OCK.7al notarial seal) No. of Pages -_ OFFICIAL h0 ARY SEAL 'A_ JOAN LASHER Notr f PubliC-Cdiforma _r ORANGE COUNTY My Comm_ Ear'- DEC. 16. 1994 3006 {rrndl (Generat! First American Title insurance Company • � FIB w,�� No ����Ce of �;9h� � �e��5s�bn ALTA Loan Policy . Form 1 (10-17-92) Policy of Title Insurance Issued By M 183- 507078 Nations Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE BANDTHE CONDITIONS AND STIPULATIONS, NATIONS TITLE INSURANCE COMPANY, a Kansas corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of= 1. Title to the estate or interest described in Schedule A being vested other than as stated therein-, 2. Any defect in or lien or encumbrance on the title-, 3_ Unmarketability of the title, 4. Lack of a right of access to and from the land-, 5- The invalidity or unenforceability of the lien of the insured mortgage upon the title-, 6- The priority of any lien or encumbrance over the lien of the insured mortgage,- 7 Lack of priority of the lien of the insured mortgage over any statutory lien for services, labor or material: (a) arising from an improvement or work related to the land which is contracted for or commenced prior to Date of Policy; or (b) arising from an improvement or work related to the land which is contracted for or commenced subsequent to Date of Policy and which is financed in whole or in 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-, 8. Any assessments for Street improvements under construction or completed at Date of Policy which now have gained or hereafter may gain priority over the insured mortgage; or 9. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown In Schedule A to vest title to the insured mortgage in the named insured assignee free and clear of all liens - The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. Counters- ey Authonzed Officer or Agent Nations Title Insurance Company By: L.,."4, 1 . President Attest: Secretary 1720 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage. costs, attorneys' fees or expenses which arise by reason of: 1_ (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances. or regulations) restricting, regulating. prohibiting or relating to (i) the occupancy, use. or enjoyment of the land. (ii) the Character, dimensions or location of any improvement now or hereafter erected on the land; (m) a separation in ownership or a change in the dimen- sions or area of the land or any parcel of which the land is or was a part: or (iv) environmental protection, or the effect of any violation of these laws. ordinances or governmental regulations. except to the extent that a notice of the enforcement thereof or a notice of a defect. lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy (b) Any governmental police pourer not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encum- brance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2_ Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy. but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights at a purchaser for value without knowledge. 3. Defects, liens. encumbrances, adverse claims or other matters - (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Polity. but known to the insured claimant and not disclosed in writing to the Com- pany by the insured claimant prior to the date the insured claimant became an Insured under this policy.- (c) resulting in no loss or damage to the insured claimant, (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any 1. DEFINITION OF TERMS. The following terms when used in this policy mean (a) '-insureo" the insured named in 5chellule A Theteim `insured" also includes (i) the owner of the indebtedness secured by the iruured mortgage and each successor in ownership of the indebtedness except a successor who is an abtigot under the prorsrans at Section 12(c) of these Conditions and Stipulations (reserving. however, all rights and defenses as to arty successor that the Company would have had against any predecessor insured, unless the successor acquired the indebtedness as a purchaser for value without knowledge of the asserted defect. lien. encumbrance, adverse claim or other matter insured against by this policy as affecting late to the estate or interest in the arid). (ii) any governmental agency or governmental instru- mentality which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage, or any part thereof. whether named as an insured herein or not; (ru) the parties designated in Section 2(a) of these Condmons and Stipulations (b) ' insured claimant" an insured claiming loss or damage (c) -knowledge of -'known ' actual knowledge. not constructive knowledge or notice which maybe imputed to an insured by reason of the public records as delined in this policy or any other retOrds which impart constnrctive notice of matters affecting the land (d) -'land'-- the land described or referred to in Schedule (A), and improvements affixed thereto which by law constitute real property The term "land" does not include any property beyond the lines of the area described or referred to in Schedule (A), nor any right, title, interest, estate or easement in abutting streets. roads. avenues. alleys. lanes. ways or waterways. but nothing herein shall mod!fy 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. (f) "public records records eSlaVUShed under state statutes at Date of Policy for the purpose of imparting con- structtve seance of matters relating to real property to purchasers for value and without krgwledge With respect to Section 1(a)(iv) of the Exclusions From Coverage, "public records" shall also include environmental protection liens filed in The records of the clerk at the United States district court lot the district in wri th the land is located (g) - unmarketabdily of the title' an al!eged or apparent matter affecting the titre to the land, not excluded or excepted from Coverage. which would entitle a purchaser of the estate or interest described in Schedu!e A or the insured mortgage 10 be released from the obligation to purchase by virtue of a statutory lien for services. labor or material or the extent insurance is atlorded herein as to assessments for street improvements under construction or com- pleted at Date of Policy), or (e) resulting in loss or damage which would not have been sustained if the in- sured claimant had paid value for the insured mortgage 4 Uilenforceabilily of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness. to comply with the applicable doing business laws of the state in which the land is situated. 5 Invalidity or unenforceabllity of the lien of the insured mortgage, or claim thereof. which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law 6. Any statutory lien for services. labor or materials (or the claim of priority of any statutory lien for services. labor or materials over the lien of the insured mort- gage) 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 tc) the transaction cleating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (i) to timely record the instrument of transfer: or (n) of such recordation to impart notice to a purchaser for value or a judge- ment or lien creditor. CONDITIONS AND STIPULATIONS contractual condiwn requiring the delivery of marketab;e title 2- CONTINUATION OF INSURANCE. (a) After Acquisition of Till& The coverage of this policy shal continue in force as of Date of Policy in favor of (i) an insured who acquires all or any part of the estate or interest in the land by foreclosure, trustees sa.'e. conveyance in lieu of foreclosure, or other legal manner which d scharges the lien of the insured mortgage. (ry) 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 opei ation Vim and not by purchase. subject to any rights or defenses the Company may have against any predecessor insureds; and (ni) any govern- mental agency or governmental instrumentality which acquires all or any part of the estate or interest pursuant to a contract of insurance or guaranty insuring or guaranteeing the in- debtedness secured by the insured mortgage (b) After Conwpnce of Title. The coverage of this policy shall continue in force as of Date of Poli(y in favor of an in- sured only so long as the insured retains an estate or 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 warranty made try The insured in any iransler or conveyance of the estate or interest This polity shall not can. tmue in force in favor of any purchaser from the insured of either (i) an estate or interest in the land. or (ii) an indebtedness secured by a purchase money mortgage given to the insured. (c) Amount all Insurance: The amount of insurance after the acquisition or after the conveyance shall in neither event exceed the least of (i) The amount of insurance stated in Schedule A; (ii) The amount of the principal of the indebtedness secured by the insured mortgage as of Date of Policy. interest thereon. expenses of foreclosure, amounts advanced pursuant tit the insured mortgage to assure compliance with laws at to protect the lien of the insured mortgage prior to the time of acquisition of the estate o- interest in the land and secured thereby and reasonable amounts expended to prevent deterio- ration of improvements. but reduced by the amount of all payments made. or (in) The amount paid by any governmental agency or governmental instrumentality, if the agency or instrumentality is The insured claimant, in Ire acquisition of the estate or interest in safislar-bon of its insurance contract of guaranty - I NOTICE OF CLAIM TO BE GIVEN IFY INSURED CLAIMANT. The insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 4(a) below, (ii) in knowledge shall come to an insured hereunder of any CIO or interest which is adverse to The tale to the estate or interest or the I:en of the insured mortgage. as insured. and which might cause loss or damage for which the Comparty may be liable by virtue of this policy, or (iii) it title to the estate or interest or the lien of the insured mortgage, as insured. Ls re- jected as unmarkelable. If prompt notice shall not be green to the Company. then as to the insured all liability of the Com- pany shall terminate with regard to the mailer or matters for which prompt notice is required, pravided. however. That failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company Shall be pre- judiced by the fadure and then only to the extent of the prejudice d. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations. the Company. at its own cost and without unreasonable delay. srratl provide for the defense of an insured in litigation in which arty thud party asserts a claim adverse to the title or interest as insured. but only as to those stated causes of action alleging a defect. lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel The Com party will not pay arty tees, costs or expenses incurred by the insured rn the defense of those causes of action which allege matters not insured against by this policy (b) The Company shall have the right. at its own cost. to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to The estate or interest or the hen of the insured mortgage. as insured. or to prevent or reduce loss or damage to the insured The Company may take arty appropriate action under the terms of this policy. whether or not it shall be liable hereunder, and shall not thereby concede liability or warve any provision of this policy. It the Company shall exec- vise its rights under this paragraph. it shall do so diligently (c) Whenever the Company snalr have brought an action or interposed a defense as required or permitted by the provi- sions of this policy. The Company may pursue any hilgatrors to final determination by a Court of competent jurisdiction and expressly reserves the right. in its sole discretion. to appeal from any adverse judgment or order (d) In alt cases where this policy permits or requires the Company to prosecute or provide for the defense of any ac. lion 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 Company to its option, the name of the insured for this purpose (continued on inside back cover) 1720 ALTA LOAN POLICY • • SCHEDULE A TOTAL FEE FOR TITLE, DWAINATION AMID TITLE INSURANCE $300.00 AMOUNT' OF INSURANCE: $25,000.00 ORDER NO. 216723-3 POLICY NO. M 183-507078 DATE OF POLICY: OCTOBER 6, 1994 AT: 3:36 P.M. -f %'►`5IWe) mI&*ll1Ci21QI LOAN NO. GRIFFIN THE REDEVELOPM= AMVC'Y OF THE CITY OF HUNTIlZ C N BEACH, A PUBLIC BODY CORPORATE AND POLITIC 2. THE ESTATE OR ENTER= IN THE LAND DESCRIBED IN SCHMULE A AND WHICH IS COVERED BY THIS POLICY IS: A CONDOMINIUM AS DEFINED IN SECTION 783 OF THE CALIFORNIA CIVIL CODE, IN FEE. 3. THE ESTATE OR ENTER= REFERRED TO HEREIN, IS AT DATE OF POLICY VE= IN: • rep• �- ��►. r- I I r• .. �• • �� I'1- • ,� • .. • . • • al- 4. THE MORTGAGE, HEREIN REFERRED TO AS THE INSURED MORTrIAGE, AND THE ASSIC TS U ERDOF, IF ANY, ARE DESCRIBED AS FOLLOWS: A DEED OF TRUST TO SECURE AN INDEBTEEN SS . AMOUNT: $25,000.00 TRUSTOR: OLGA CRISTINA GRIFFIN TRUSTEE: THE CITY OF HlMnUTCN BEACH, A MUNICIPAL CORPORATION BENEFICIARY: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTIN MV BEACH, A PUBLIC BODY CORPORATE AND POLITIC DATED: OCTOBER 4, 1994 RECORDED: OCTOBER 6, 1994 AS INSTRUMENT NO. 94-598931, OF OFFICIAL RECORDS (VDM ND.: 216723-3 • PIKE ND. : 2 SCHEDULE A (CCNTINUED) 5. THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLUMS: THE LAND IS SITUATED IN THE SPATE OF CALIFORNIA COUNTY OF ORANGE PARCEL 1: UNIT NO. 23, CONSISTING OF CERTAIN AIRSPACE AMID SURFACE ELEMENTS, AS SHOWN AND DESCRIBED IN THE CONDOMINIUM PLAN ("PLAN") FOR BRISAS DEL MAR IIJCATED ON LOT 1 OF TRACT 14757, AS SHOWN ON A SUBDIVISION MAP RECORDED ON SEME 112ER 1, 1993, IN BOOK 701, PACES 42 THROUGH 43, INCLUSIVE OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE ORANGE OXWI'Y RECORDER ("OFFICIAL RECORDS"), WHICH PLAN WAS REClORDED ON SEPTEMBER 15, 1993, AS INSTRUMENT NO. 93-0621742, OF OFFICIAL RECORDS, CALIFORNIA. PARCEL 2: AN UNDIVIDED ONE FORTY-FOURTH (1/44) FEE SIMPLE INTEREST AS A TU\WTT IN 03MM IN AND TO VMJLE B SHC WN ON THE PLAN AND DEFINED IN THE DECLARATION REFERRED TO BELOW AS THE "CC MON AREA". EXCEPT THEREEFRCM ALL OIL, GAS, MEIERAJS AND OTHER HYDRDQ%RBON SUBSTANCES LYING BELOW • DEPTH OF + FEET WITHOUTRIGHT • ENTER UPON THE SURFACE • - THE SUBSURFAC!EOF r LAND ABOVE A DEPTH OF : 0 FEET,PROVIDED 1 PARCEL 3: N•N E M • s E • - ACCESS, I143RESS,BMESS, USE, ENJOYMENT, DRAD=, Ri=CT-IMENT, SUPPORT, MAn==, REPAIRS AND FOR • PURPOSES, ALLAS MAY• I 1IN THEPLAN,D AS ARE DESCRIBED IN THE DECLARATION. PARCEL 4: EXCLUSIVE EASEVENTS APPURTalANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR USE FOR PARKING PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECLARATION, OVER PORTIONS OF LOT 1 OF TRACT 14757 SHOWN AND ASSIGNED IN THE PLAN. PARCEL 5: AN EXCLUSIVE EASEMENT APPiRTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE, FOR USE FOR PATIO, BAI OCY, AND FIRE ESCAPE STAIRCASE PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECLARATIONN, AS APPLICABLE, OVER PORTIONS OF LOT 1 OF TRACT 14757 AS SHOWN, ASSIGNED AND DESCRIBED IN THE PLAN. CIMM NO_: 216723-3 • LTA LOAN POLICY PAGE ND. : 3 SCHEDULE E B PART I THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF: A. GENERAL AND SPECIAL TAXES, A LIEN NOT YET PAYABLE, FOR THE FISCAL YEAR 1994- 1995. reammaggim 1. THE EFFECT OF A C J4%E ITY OIL AND GAS LEASE EXECUTED BY LOUIS BENSON AND ELOI SE B . BENSON, HIS WIFE AND BY MIE R PERSONS AS TO OTHER LAND, AS LESSORS, AND BY CaOLUMBIA LEASING AND DEVELOPING COOMPANY, A CORPORATION, AS LFSSEE, RECORDED NOVEMBER 6, 1920 IN BOOK 16, PAGE 198 AND RE -RECORDED AUGUST 11, 1921 IN BOOK 25, PAGE 247 OF LASES, BOrIH OF LEASFS, TO WHICH RECORD REFERENCE IS MADE FOR FULL PARTICULARS. 2. AN EASEMENT FOR PIPE LINES AND INCIDENTAL PURPOSES, AS CAA l ED TO HUNTINGIL`N BEAGi COMPANY IN THE DEED RECORDED IN BOOK 319, PAGE 149 OF DEEDS, OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. 3. COVRZWTS, CONDITIONS AND RESTRICTIONS IN AN INSTRUVE11T REODRDED IN BOOK • PAGE 149 OF DEEDS, OF OFFICIAL RECORDS. Tf-ly PROVISIONS, IF ANY, OF SAID INSTRUMENT WHICH PROVIDE RESTRICTIONS BASED ON RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELE'=. 4. AN EASEIvlENT FOR PIPE, POLE LINES AND INCIDENTP,L, PURPOSES, AS GRANTED TO PETROLEUM MIDWAY COMPANY, LTD., IN THE DEED RECORDED IN BOOK 578, PAGE 269 OF DEEDS, OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. 5. AN ] E FOR PIPE LINEAND I DENTAL PURP46;ES, AS GRANTED TO STANDARD OIL COM[PANY OF • - 1 I DEED RECORDED IN BOOK 86S, PALE 1S OF OFFICIAL REODRDS,•' ►• R)RTICN OF r LAND AS MOREPARTICULARLY r •• • ]Dr IN SAID r . - I] • •• I• • • v • • u Ir , • r • v 1 � !• I• • 1 I r �Irlr r Ir • • • • - , - r •• - ]r 1 • r I lal EASEMENT • • PIPE LJL'Nn&; ill& tY r ILV•\� A•C l'I i•1` ]Ir #, TPE TaffV, OFFICIAL RECORDS, ALCM THATPORTION OF r LAND AS MOREPARTICULARLY r _ •ice :EIr IN • r INSTRUMENT. GREER NO.: 216723-3 . PACE ND. : 4 11 8. AN EASEMENT MR PUBLIC UTILITIES AND INCIDENTAL PURPOSES, AS GRANTED M THE COAL TELEPHONE COMPANY OF CALIFORNIA, A CORPORATION, IN DEED RECORDED AS INSTRUMENT NO. 87-440298 OF OFFICIAL RECORDS, AWW. THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRLMENT. • r DEED PROVIDES ►• • : r: ri OR SMUC= ScHUL BE PLACED • - r• r: • ri r�ri ON • ri EASEMU. 9. THE TERMS, PROVISIONS AND CONDITIONS COUEAIINED IN A DOCUMENT ENTITLED "AFFORDABLE HOUSING RESTRICTION AND QNENANT", EXECUTED BY AND BETWEEN BEACHFRONT LAKE SIREN' PROPERTIES AND THE CITY OF HU TTRUILON BEACH, RECORDED SEFI'II�MER 2, 1987 AS INSTRUMENT NO. 87-500026 OF OFFICIAL RECORDS. �• r�• ar• • - Sri tea. a• r• • a• - •a • • • r ri ��s - s• - ri Sri • ]TLSTRUME TT NO. 87-534842 OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID IN.SIRLDOU. 11. AN EASElvE TT FOR WATER MAIN AND INCIDEATI'AL PURPOSES, AS GRANTED TO THE CITY OF HUNTINGICXN BEACH, A MUNICIPAL CORPORATION IN THE DEED RECORDED AS INSTRUMENT NO. 87-583411 OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSMUlV ENT. 12. THE EFFECT OF A SUBSURFACE OIL AND GAS LEASE, EXECUTED BY GILBERT M. WILSON AND ELE,ANOR E. WILSON, HUSBAND AND WIFE, AS LES`40R, AND ANaJS PETROLE[NI C0RPORATI0N, A DELAWARE CORPORATION, AS LESSEE, RECORDED APRIL 18, 1989 AS INSTRUMENT NO. 89-201848 OF OFFICIAL RECIORDS, OOVER ING THE LAND LYENG BELOW A DEPTH OF FIVE HLIN= (500) FEET FROM THE SURFACE THMEOF, WITHOUT THE RIGHT OF SURFACE ENTRY ABOVE SAID DEPTH, FOR THE PERIOD AND UPON THE TERMS, OOVE!,PIM AND CONDITIONS THEREIN PROVIDED, REFERENCE BEING MADE TO THE RE03RD 71-OMF FOR FULL, PARTICULARS. 13. THE TERMS, PROVISIONS AMID CONDITIONS CONTAINED IN A DOaly IT ENTITLED "DECLARATION OF RESTRICTIONS AND SUBDIVISION C7�LSENTS", EXECVTED BY DELAWARE II, A CALIFORNIA LIMITED PARTNERSHIP, P20ORDED APRIL 6, 1993 AS INSTRUMENT NO. 93-0230267 OF OFFICIAL RECORDS. 14. THE FACT THAT THE OWNERS OF SAID LAND HAVE NO RIGHT OF VEHICULAR ACCESS TO DELAWARE STREET, UTICA AVENUE AND CALIFORNIA STREET, EXCEPT AT SPECIFIED POINTS, SAID RIGHTS HAVING BEEN RELINQUISHED BY DEDICATION PROVISIONS ON THE MAP OF SAID TRACT. 15. AN INSTRLMENT ENTITLED "CONID0MINIU++1 PLAN" RECORDED SEPTEMBER 15, 1993 AS INSTRUMENT NO. 93-0621742 OF OFFICIAL RECORDS; REFERENCE BEING MADE TO THE RECORD THEREOF FOR FULL PARTICULARS. OFME2 ND.. 216723-3 . PACE ND. 5 r-I LJ 16. MATTERS IN AN INSTRUMENT WHICH AMONG OTHER THINGS CONTAIN OR MAKE PROVISIONS FOR ASS&SSMENTS AND LIENS AND THE SUBORDINATION THERMF; PROVISIONS RELATING TO PARTITION; RESTRICTIONS ON SEVERABILITY OF CENT INTERESTS; PROVISIONS FOR CERTAIN EASIIvlENTTS AND/OR ENCROACHMENTS; AND CONTAINING OMUUTS, CONDITIONS AND RESTRICTIONS WHICH PROVIDE THAT A VIOLATION THEREOF SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORTGAGE OR DEED OF TRUST IN GOOD FAITH AND FOR VALUE, RECORDED, AS INSTRLMEN7` NO. 93-0625045 OF OFFICIAL RECORDS. THE PROVISIONS, IF ANY, OF SAID INSIR ENT WHICH PROVIDE RE=C`-TICNS BASED ON RACE, COLOR, RELIGION OR NATIC taL ORIGIN ARE DEL=. SAID INSTRLD= MAY PROVIDE FOR LEVYING REGULAR AS WELL AS SPECIAL ASSESSMENTS. NVIWITHSTANDING0 THE•- • E PRO7`ECTICN CLAUSE CONTAINED IN THE ABOVE MENTIONED COVENANTS,ClONDITIONS AND RESTRIMONS,THEY PROVIDE THr• i LIENS iAND CHARMS •- UPKEEP AND r• Ir• •E ARE SUBORDINATEONLY s A FIRST • • ti AN INSTRUMENT DECLARING A MODIFICATION OF SAID CO<T MWM, ClOTIDITIONS AND RESTRICTIONS WAS RECORDED, AS INSTRL4Wr NO. 93-0680846, OF OFFICIAL RECORDS. 17. EASEMENTS FOR IN(R SS AND EGRESS, PARKING, PIPELINE, DRA-1 K�� , SANITARY SEWERS, PUBLIC UTILITIES, SLOPES AND RIGHTS INCIDENTAL THEP=, AS DISCLOSED BY INSTRUMENTS OF RECORD AND THE MAP OF SAID TRACT, AFFECTING ONLY THE OD44',)N AREA. 18. MATTERS IN AN INSIRLIENT WHICH AMONG OTHER THINGS CONTAIN OR MAKE PROVISIONS FOR ASSESSMENTS AND LIENS AND THE SUBORDINATION THEREOF; PROVISIONS RELATING TO PARTITION; RESTRICTIONS ON SEVERABILITY OF C MPOb= INTERESTS; PROVISIONS FOR CERTA--N EASEMENTS AMID/OR ENCROACHMENTS; AND CONTAINING ODVII,lANTS, OONDITIONS AND RESTRICTIONS WHICH PROVIDE THAT A VIOLATION THEREOF SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORTGAGE OR DEED OF TRUST IN GOOD FAITH AND FOR VALUE, RECORDED, AS INSTRLM= NO. 93- 0635859, OF OFFICIAL RECORDS. THE PROVISIONS, IF ANY, OF SAID INSTRLNENT WHICH PROVIDE RESTRICTIONS BASED ON RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DEIFIED. SAID INSTRUMENT MAY PROVIDE FOR LEVYING REGULAR AS WELL AS SPECIAL ASSESSMENTS. 19. A DEED OF TRUST TO SECURE AN IMDEB'TEIJNESS . AMOUNT: $70,400.00 TRUSTOR : OLGA CHRI ST INA GRIFFIN, AN LN MARRIED WOMAN AS HER SOLE AND SEPARATE PROPERTY TRUSTEE: CALIFORNIA MORTGAGE SERVICE, A CALIFORNIA CORPORATION BENEFICIARY: CALIFORNIA MORTCAGE SERVICE, A CALIFORNIA CORPORATION, D.B.A. COLONIAL BANCORP DATED: OCIOBER 3, 1994 RECORDED: OCTOBER 6, 1994 AS INSTRLMETT NO. 94-598930, OF OFFICIAL RECORDS CAR IAA.: 216723-3 PAGE ND. : 6 ,LTA LAN POLICY L�a.i'�lss1 PART II IN ADDITION TO THE MATTERS SET FORTH IN PART I OF THIS SC-ImC7LE, THE TITLE TO THE ESTATE OR DZIEREST IN THE LAND DESCRIBED OR REFERRED TO IN SQ-�E A IS SUBJECT TO THE MLL04ING MATTERS, IF ANY BE S143W, BUT THE COMPANY INSURES THAT SUCH MATTERS ARE SUBORDINATE TO THE LIEN OR Cl-lARGE OF THE INSURED MORTGAGE UPON ESTATE OR INTEREST: 1. A DEED OF TRUST TO SECURE AN IIDEBTUXZSS. AMOUNT: $5,300.00 TRUSTOR: OLGA CRISTINA GRIFFIN TRUSTEE: THE REDEVELOFMENT AGENCY OF THE CITY OF HUNTIN= BEACH, A PUBLIC BODY CORPORATE AND POLITIC BENEFICIARY: THE CITY OF HUNTUSUIM BEACH, A MUNICIPAL CORPORATION DATED: OCTOBER 4, 1994 RECORDED: OCTOBER 6, 1994 AS I1\lSIRU4Wr NO. 94-598932, OF OFFICIAL RECORDS &R NO. 216723-3 Ply 1 EZMCRSEMEffr ATIAC HM TO PCIJCY ND. M 183--507078 I3SCm SY NATIC NS TITLE INSORANCE C CHPANY •I •fiff •1 • :V4 • M •V-'U WHICH SAID INSURED SHALL SUSTAIN REASON OF OF E FOLLOWING Mr• EI- � . ►a r. i•ic7iay3�L _ r I Y 1i: � !. 4.1 �iul• i U •ICI; �I: �� . THAT E ARE ND OJVMWTrS, CONDITIONS,• • RESTRICTIONS U1 liE1• WHICHE LIEN OF E KXZIGAGE REFERRED • IN SC=ULE• CAN BE CUT OFF, SUBORDINATEE), • • 07=TISE IMPAIRED; (B) THAT THERE ARE NO PRESENT VIOLATIONS ON SAID LAND OF ANY ENFORCEABLE OOVENANIS, CONDITIONS AND RESTRICTIONS. h pl •I • • `I • 1 1 • k.'IN!' : ICI• • ' • �• •' • I I71 • .� r -� •• 1 I•-• � I� •ii• �� • • • I� i s • r • r I•. •• • CM •I ii.• • I I� •M• CIf� • ' • • 1 1 ' I�� 2. (A) ANY FVIURE VIOLATIONS ON SAID LAND OF ANY COVENANTS, COMITIONS, OR RESTRICTIONS OCCURRING PRIOR TO ACQUISITION OF TITLE TO SAID ESTATE OR INTEREST BY THE INSURED, PROVIDED SUCH VIOLATIONS RESULT IN LOSS OR IMPAIRMENT OF THE LIEN OF THE MOR7GAGE P=ERRED TO IN S = LE A, OR RESULT IN LOSS OR IMPAIR -UM OF THE TITLE TO SAID ESTATE OR INTEREST IF THE INSURED SHALL ACJ�UIRE = TITLE IN SATISFACTION OF THE I NDEB ,LESS SECURED BY SUCH MORTGAGE; (B) UNMARICE.TABILITY OF THE TITLE TO SAID ESTATE OR EgIE ST BY REASON OF ANY VIOLATIONS ON SAID LAND, OC'CURRM PRIOR TO ACITISITION OF TITLE `10 SAID ESTATE OR Il== BY THE INSURED, OF ANY ODVEMWM, CSNDITIONS, OR RESIRICTIONS. • . r. rI � � 11•:• �.a I� n L_J 416R ND. 2I6723-3 PACE 2 I 1 � Iri'..•15 � i• I ICI , • • ►• !! • 91 1 l P • • � ICI •I r l ' • l 1- :: ,I• • • ' 71 (A) WHICH ARE LOCATED OR ENCROACH UPON THAT PORTION OF THE LAND SUBJECT TO ANY FAS94ENT IN SCHEDULE B, WHICH DAMAGE RESULTS FROM THE EXERCISE OF THE RIC2-Tr TO USE OR MAINTAIN SUCH EASE= FOR THE PURPOSE FOR WHICH THE SAME WAS GRANTED OR RESERVED; (B) RFSULTINO FROM 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 SAID LAND OR SHOW AS A RESERVATION IN SCHEDULE B. I• •• •' r 61- • • rrs ly • 7•' I • s • • • • • Ir I• I\11\: _ r Ir • •I:a• t •.lyl9�\/ 9* • ,I\ I • IMJIM 191021' I QN I CC ZILM Do 1:4 kil =0 Orms).NW.11 onTJw,•ram •• I• •* Ir • &WIC' • • . • • � -1 �• • r �y Irrr • - r1 �• � • - I •1 r I al- • 01 r• Ir • r •' •• • Ijoin 1 91• - •r • ii I�r' THE TOTAL LIABILITY OF THE COMPANY UNDER SAID POLICY AND ANY INDORSFMENrS THEREIN SHALL NOT EX , IN THE AGME13ATE, THE FACE AMOUNT OF SAID POLICY AND SAID POLICY AND COO WHICH THE COMPANY IS OBLIGATED UNDER THE CONDITIONS AND STIPULATIONS THEREOF TO PAY. THIS ENDORSEMENT IS MADE A PART OF SAID POLICY AND IS SUBJECT TO THE SCHEDULES, CONDITIONS AND STIPULATIONS THEREIN, EXCEPT AS MODIFIED BY THE PROVISIONS HEREOF. '•;1r I i. ` •�• �• • r. � � 5 err• �a �� *]ER NO. 216723-3 ENDCRSEMENT ATIIM® TO PC)LICY ND. M 183-507078 ISSUED SY NATICI S TITRE INSURANCE C CWANY THE OGMPANY ASSURES THE INSURED THAT AT THE DATE OF THIS POLICY THE DIlvlENSIONS OF THE EKTERIOR BOLMARY OF THE LAND REFERRED TO IN S=n E A OF THIS POLICY, WHICH IS ALSO THE EXTERIOR BaZMARY OF THE PROJECT, ARE CORRECTLY SHOWN ON THAT MAP SHOWN ON SCHEDULE E A OF SAID POLICY, IN ITT OFFICE OF THE OMIT Y RECORDER OF SAID COUNTY. THE CUAPANYICI• ASSURES THE INS= THAT THE EgMTE IN SAID LAND REFERRED • IN SCHEDULE •I r R]MEMMAL UMULJMWITHINI PROJECT MMARIES, AS DESCRIBED 1 • IMLE A, IN THEOFFICE OF I CC(= RECORDER OF QRANM •• • Ir R4DVN AS 409 UTICYL AVEME C23, CTTY OF 11 • BEAM, COLUrY OF CRANGE, STATEOF CAIXFORNIA. 1 •• I' • 191• yl: 1 I 1 •'�Ir • 1 •. • • • 1 ' alr �f ►' Mialvalk, w I m 4•I on 2ftoklm►• I P :►ill i91' I `I.I_ ri00 1,• 1 •• . . THE TOTAL LIABILITY OF THE CaMPANY UNDER SAID POLICY AND ANY INDORSEMM THEREIN SHALL NOT EXCEED, IN THE AG= -.ATE, THE FACE AMOMT OF SAID POLICY AND OASTS WHICH THE COMPANY IS OBLIGATED UNDER THE CONDITIONS AND STIPULATIONS THEFMF TO PAY. THIS ENDORSE TT IS MADE A PART OF SAID POLICY AND IS SUBJEC."T TO THE SC7-iED n.RS, CONDITIONS AND STIPULATIONS THEREIN DINED. '��6^tnrl 116.2 0 ATIA¢M TD PCgffCY ND. M 183-507078 ISSUE} BY N A=CN S TTIiE INSURANCE C04PANY Om ND. 216723-3 THE INSURANCE AFFORDED BY THIS ENDORSEMENT TT IS ONLY EFFECTIVE IF THE LAND IS USED OR IS TO BE USED PR-DIARILY FOR RESIDENTIAL PURPOSES. THE 0J PANY INSURES THE INSURED AGAINST LOSS OR DAMAGE SUSTAINED BY REASCN OF LACK OF PRIORITY OF THE LIEN OF THE INSURED MORTGAGE OVER: (a) ANY ENVIRONMq 'AL PRCIECTION LIEN WHICH, AT DATE OF POLICY IS RECORDED IN THOSE RECORDS ESTABLISHED UNDER STATE STATUTES AT DATE OF POLICY FOR THE R RPOSE OF IMPARTING CONSTRUCTIVE NOTICE OF MATTERS RELATING TO REAL PROPERTY TO PURLS FOR VALUE AND WITHOUT KDKY =, OR FILED IN THE RECORDS OF THE CLERK OF THE UNITED STATES DISTRICT CXX.IRT IN WHICH THE LMM IS LOCATED, EXCEPT AS SET FORTH IN SC1iFIJLn E B; OR (b) ANY ENVIRONNETTAL POTION LIEN PROVIDED FOR BY ANY STATE STATUTE IN EFFECT AT DATE OF POLICY, EXCEPT ENVIPaVE M PRCI=ION LIENS PROVIDED FOR BY THE FOLLOW= STATE STATUTES: THIS ENDORSEMTT IS MADE A PART OF THE POLICY AND IS SUBJECT TO ALL OF THE TERMS AND PROVISIONS THERDOF AND ANY PRIOR ENDORSEME M THERETO. EXCEPT TO THE FX= EXPRESSLY STATED, IT NEITHER MODIFIES ANY OF THE TERMS AND PROVISIONS OF THE POLICY OR ANY PRIOR ENDOR. E.., S, NOR DOES IT EXTEND THE EFFECTIVE DATE OF THE POLICY OR ANY PRIOR ENDORSEMENTS, NOR DOES IT INCREASE THE FACE AMOUNT THEREOF. 8.1 EDC E E • E11O 7 ICM M • CONDOMINIUM PLAN UNIT AIRSPACE DIMENSION PLAN: BUILDING "C' LOWER LEVEL UNITS 23 THRU 32 r f'TrAtM ■NII tfF CTen >A• 814' &%' Lu. M." W' 11T p woo' ow �' zii • L-,.a' NOTES: • SCALE: 1' = 16' pc7ER9K N►LL L K MM ) i 1. • INDICATES CC!?!OY BUILDING CONTROL POINT. 2. SEE SHEET 6 FCR T—OU\DARY PLAT. 3. SEE SHEET 7 FOR BUILDING LOCATICH PLAN. 3. SEE SHEETS 8 THRU 14 FOR UNIT AIRSPACE DIMENSION PLANS. 5. SEE SHEETS 20 ThRU 23 FOR SCHEDULES OF TYPICAL UNIT VERTICAL S=CTIONS. 6. SEE SHES•:S 24 TF= 27 FCR TYPICAL UNIT VERTICAL SECTIONS. 7 • SEE SHEET 28 FOR OPEN PARKING LOCATIO`1 PLAN[. Whenever requested by the Company. the insured, at the Com- pany's expense, shall give the Company all reasonable aid (i) in any action or proceeding. securing evidence. obtaining witnesses, prosecuting or defending the action or proceeding. or effecting settlement. and (ii) in any Other lawful act which in the opinion of The Company may be necessary or desirable to establish the title 10 the estate or interest or the hen Of the insured mortgage, as insured- It the Company is prejudiced by the failure Of the insured 10 furnish the required coopera- tion. the Comparry 5 Obligations t0 the insured under the policy Shall terminate, including any liability or obligation to defend, prosecute. or continue any litigation• with regard to the mat- ter or matters requiring such cooperation 5- PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage The proof of loss or damage shall describe The defect in, or lien or encumbrance On the title, or other matter insured against by this policy which constitutes The basis Of loss or damage and shall state, to the extent possible. the basis of calculating The amount of the loss or damage It the Company is prejudiced by the failure of the in. sured claimant to provide the required proof of loss or damage. the Company's obligations to the insured under the policy shall terminate. including arty liability or obligation to defend. pro- secute. 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 any aulhonzed represen- tative of the Company and shall produce for examination. inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company. all records, books. ledgers, theca. correspondence and memoranda. whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage Further, if requested by any authorized representative of the Company, the insured claimant shall grant its permission, in writing, for arty authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks. correspondence and memoranda in the custody or control 0[ a thud parry. which reasonably pertain to the loss or damage - All information designated as Confidential by the insured clan mant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company. it is necessary in the administration of the claim Failure of the insured Claimant to submit for examina- tion under oath. produce Other reasonably requested information or grant permission to secure reasonably necessary informa- tion from thud parties as required in this paragraph, unless pro- hibited by law or governmental regulation- shall terminate any liability of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY - In case of a claim under this policy, the Company shall have the following options (a) To Pay or Tender Payment of the Amount of Insurance or t0 Purchase the Indebtedness (i) to pay or tender payment of the amount of insurance under this policy together with any COSTS. attorneys' fees and expenses incurred by the insured claimant, which were author- ized by the Company. up to the time of payment or tender of payment and which the Company is obligated to pay: or (u) to purchase the indebtedness secured by The insured mortgage for the amount owing Thereon together with any costs. attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the lime of pur- chase and which the Company is obligated to pay It the Company otters [0 purchase the indebtedness as herein provided, the owner of the indebtedness shall transfer• assign. and Convey the indebtedness and the insured mortgage. together with any collateral secunty. to the Company upon pay- ment therefor Upon the exercise by the Company of either of the options provided for in paragraphs a(i) or (n). all liability and obhga. lions to the insured under this policy. other than to make the payment required in those paragraphs. shall terminate. including any liability or obligation to defend. prosecute_ or continue arty litigation. and the policy shall be surrendered to the Company tot cancellation (b) To Pay or OThertviSe Settle With Parties Other than the Insured Or With the Insured Claimant. NOITIONS AND STIPULATIONS (Continued from inside front cover) (i) to pay Or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with arty costs. attorneys' fees and expenses incurred by the insured claimant which were author- ed by the Company up to the time of payment and which the Company is obligated to pay, or (it) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy. together with arty costs. attomeys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the lime of payment and which the Company is obligated to pay Upon the exercise by the Company of either of the options provided for in paragraphs b(i) or (u). the Company's obligations to the insured under this policy for the claimed loss or damage. other than the payments regwrec to be made, shall terminate including any liability or obligation to defend. prosecute or continue any litigation 7- DETERMINATION AND EXTENT OF LIABILITY. This policy is a contract of indemnity against aclua! monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to The extent herein described (a) T he liability of the Company under this policy shall not exceed The least of (i) the amount of insurarce stated in Schedule A. or, if applicable, the amount of insurance as defined in Section 2(c) of these Conditions and Stipulations: (ii) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Conditions and Stipulations Or as reduced under Section 9 of these Conditions and Stipulations. at the time the loss or damage insured against by this policy Occurs. together with interest thereon. or (iii) the difference between the value of the insured estate or interest as insured and the value of the insured estate Or interest subject to the defect. I en or encumbrance insured against by this policy (b) In the event the insured has acquired the estate or interest in the manner described in Section 2(a) of these Conditions and Stipulations or has conveyed The title. then the liability of the Company shall contiluc as set forth in Section 7(a) of these Conditions and Stipulations (c) The Company will pay only those costs. attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations B. LIMITATION OF LIABILITY (a) If the Company establishes the title. Or removes The alleged defect. hen or encumbrance. or cures the lack of a right Of access to Or from the land. or cures the claim of unmarket- ability of title, or otherwise eslatihshes The lien of the insured mortgage, all as insured• in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fulty performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby (b) In the event of any litigation. including litigation by the Company or with the Company's Consent. the Company shall have no liability for loss or damage until There has been a final determination by a court of competent jurisdiction, and disposi. lion of all appeals therefrom. adverse to the title or to the lien of the insured mortgage. as insured. (c) The Company shall nor be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling arty claim or suit without the prior written consent of the Company (6) The Company Shal! not be liable for (i) any indebtedness created subsequent to Date of Policy except for advances made to protect the lien of the in. sured mortgage and secured thereby and reasonable amounts expended to prevent deterioration of improvements, or (u) construction loan advances made subsequent to Dale of Policy. except construction loan advances made subse- quent to Date of Policy for the DurpOse or financing in whole or in part the construction of an improvement to the land which at Date at Policy were secured by the insured mortgage and which the insured was and covmued to be obligated to ad- vance at and after Date of Po! cy 9. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY (a) All payments under this policy. except payments made for costs_ attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto However_ any payments made prior to the acquisition of title to the estate or interest as provided • in Section 2(a) of these Conditions and Stipulations shall not reduce pro lant . the amount Of insurance altorded under this policy except to the extent that the payments reduce The amount of the indebtedness secured by the insured mortgage (b) Payment in part by arty person of the principal of the indebtedness. or any other obligation secured by the rnsureo mortgage, or arty voluntary Darlial satisfaction or release of the insured mortgage, to the extent of the payment. satisfaction or release. shall reduce the amoum or insurance pro tanto The amount of insurance may lherealler be increased by accruing interest and advances made to protect the heir of the insured mortgage and secured thereby, wilh interest thereon. provided in no even[ shall the amount of insurance be greater than the amount of insurance stated in Schedule A (c) Payment in TO by arty person or the voluntary satisfac- tion or release al the insured mortgage shall terminate at liability of the Company except as provided in Section 2(a) of these Conditions and Stipulations 10_ LIABILITY NONCUMULATIVE. 0 The insured acquires title to the estate or interest in satisfac• lion of the indebtedness secured by the insured mortgage. or arty part thereof, if is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any Dol:cy insuring a mortgage to which exception is la.(en in Schedule B or to which the insured has agreed, assumed. Or taken subject, or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A. and the amount so paid shall be deemed a payment under this policy 11. PAYMENT OF LOSS - (a) No payment shall he made without producing This policy for endorsement of the payment unless the policy has been lost or destroyed. in which case proo: of loss or deslruc• t art shall be furnished to the satisfaction of the Company. (b) when liability and the extent of ioss or damage has been definitely fixed in accordance with these Conditions and Stipulations. The loss or damage shall be payable within 30 days thereafter 12 SUBRDGATION UPON PAYMENT OR SETTLEMENT. (a) The Company's Right of Subrogation Whenever the Company shall have settled and paid a claim antler this policy. all right of subrogation shall vest in the Company unaffected by any act of the insured claimant The Comparry shall be Subrogated to and be entitled to all rights and remedies which the insured Claimant would have had against any person or property in respect to the claim had this policy not been issued If requested by the Company. the insured claimant shall transfer to The Company an rights and remedies against any person or property necessary in order to perfect This right of subrogation The insured Claimant shall permit the Company to sue. compromise or sMtle in The name of The insured claimant and to use the name of the insured claimant in arty Trans- action or litigation imalving these rights or remedies If a payment on account of a claim does not fully cover the loss of the insured claimant. The Comparry shall be subrogaled to all rights and remedies of the insured Claimant after the insured claimant shag have recovered its principal. interest. and costs Of collection (b) The losumd's Rights and Llmirtions: Notwithstanding The foregoing, The owner of The indebtedness secured by the insured mortgage. provided the priority of the lien of the insured mortgage or its entorceabliry is not affected. may release or substitute The personal liability of arty debtor or guarantor• or extend or otherwise modify the terms of pay - men[_ or release a portion of the estate or interest from the Bien of [he insured mortgage. or release any collateral secunly for the indebtedness When the permitted acts Of The insured claimant occur and the insured has know,iedge of any claim Of tide or interest adverse to the title to the estate or interest or the priority Or enfOrCeabJity of the I -en of the insured mortgage, as insured. the Company shall be required to pay only that part Of any losses insurec against by this policy which shall exceed the amount, if any. lost to the Company by reason of The impairment by the insured Claimant of the Company's right of subrogation. (c) The Company's Rights Against Non•Insumd Obligors The Company's right of subrogation against non-insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities. guaranties. other policies of insurance of bonds, notes-thstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason 01 this policy The Company's right Of Sub- rogation shag not be avoided by acquisition of the insured 1720 (Continued on back Cover) • CONDITIONS AND STIPULATIOf (Continued from inside back cover) mortgage by an ablrgar (except an obligor described in Section l(a)(ii) of these Conditions and Stipulations) who acquires the insured mortgage as a result of an indemnity, guarantee, other pohcy of insurance. or 5ond and the obligor wtl not be an rnSured under this policy, notwdhslandrng Section 1(a)(r) of these Conditions and Stipulations 11 ARBITRATION_ Unless prohibited by applicable law, either the Company ar the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the AmeaCan Arbitration ASso- ciation Arbrlydble matters may include. but are not limited 10. arty controversy or claim between the Company and the insured arising out of or relating to this policy. any service of the Com- pany in connection vnfh its issuance or the breach of a policy provrsvn or Other obligation All arbitrable matters when the Amount of Insurance rs $1.000,000 or less shall be arbitrated at the option of either the Comparry or the insured All arbitrable matters when the Amount of Insurance is in excess of $1000.000 shall be arbitrated only when agreed to by both the Company and the insured Arbilration pursuant to this polity and under the Rules to ettea on Ute date the demand for arbitration is made or, at the option of the insured. the Rules in effect at Date of Policy shall be binding upon the parties The award may include attorneys' tees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party Judgment upon the award rendered by the Arbilrator(s) may be entered in any Court having lunsdraron thereof The tax of the sous of the land shall apply to an arbitration under the Title Insurance Arbitration Rules A copy of the Rules may be obtained from ffte Company upon request U_ I IAMLITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorseme•-i1s. if any. attached hereto by the Company is the entire policy and can. tract between the insured and the Company In interpreting any pcMion of this polity, this policy shall be construed as a whole (b) Any claim of loss or damage..vhelhCr Or not based on negligence. and which arises out Of the status of the I:en or the insured mortgage Or of the title to the estate or inlerest Policy of Title Insurance Issued By covered hereby or by any action asserting such claim. shall be restricted to this policy. (c) No amendment of or endorsement to this polity can he Mde except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary or validating officer or authorial signatory of the Company. 15. SEVERABILITY. In the event any provision of this policy is held unraia or unen- forceable under applicable law the policy shall be deemed not to include that provision and all other prowsions shall remain in full lorce and eflecl. 16. NOTICES, WHERE SENT. All notices, required to be given the Company and arty state- ment in witting requued to be furnished the Company VA utclude the number of this policy and shag be addressed to the Com- pany at 6800 College Blvd . Suite 700. Overland Park. Kansas 666211. Nations Title Insurance Company 6800 College Blvd_ / Suite 700 / Overland Park, Kansas 66211 913-491-5585 1720 ALT FCK Loan Policy For • . m t (t0-t7-92j Policy of Title Insurance Issued By M 183_ 5 U 7 0 7 9 Nations Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B ANDTHE CONDITIONS AND STIPULATIONS, NATIONS TITLE INSURANCE COMPANY, a Kansas corporation, herein called the Company, insures, as of pate of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of= 1_ Title to the estate or interest described in Schedule A being vested other than as stated therein, 2. Any defect in or lien or encumbrance on the title, 3. Unmarketability of the title. 4_ Lack of a right of access to and from the land-, 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; 6- The priority of any lien or encumbrance over the lien of the insured mortgage-, 7 Lack of priority of the lien of the insured mortgage over any statutory lien for services, labor or material: (a) arising from an improvement or work related to the land which is contracted for or commenced prior to Date of Policy-, or (b) arising from an improvement or work related to the land which is contracted for or commenced subsequent to Date of Policy and which is financed in whole or in 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, 8. Any assessments for street improvements under construction or completed at Date of Policy which now have gained or hereafter may gain priority over the insured mortgage, or 9- The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the insured mortgage in the named insured assignee free and clear of all liens. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations_ Countg By Authorized Officer or Agent Nations Title Insurance Company By Lu4, President Attest: / Secretary 1720 EXCLUSIONS FROM COVERAGE The following mailers are expressly excluded from the coverage of this policy and the Company will not pay loss or damage. costs, attorneys fees or expenses which arise by reason of 1 (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws. ordinances, or regulations) restricting. regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land. (it) the character, dimensions or location of any Improvement now or hereatter erected on the land: (iii) a separation in ownership or a change in the dimen- sions or area of the land or any parcel of which the land is or was a part, or (iv) environmental protection, or the effect of any violation of these laws• ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect. lien or encum- brance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Polity 2 Flights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge 3 Defects. liens, encumbrances, adverse claims or other matters (a) created. suffered. assumed or agreed to by the insured claimant, (b) not known to the Company, not recorded in the public records at Date of Policy but known to the insured claimant and not disclosed in writing to the Com- pany by the insured claimant prior to the date the insured claimant became an insured under this policy: (c) resulting in n0 loss or damage to the insured claimant, (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any 1. DEFINITION OF TERMS - The following terms when used in this policy mean: (a) "rrt,Sured" the insured named in Schedule A The term -'insured" also includes (i) 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, however, an rights and defenses as to arty successor that the Company would have had against arty predecessor insured. unless [he 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 affetting title to the estate or interest in the land). (u) any governmental agency or governmental instru- mentality which is an insurer or guarantor under an insurance comrml or guaranty insuring or guaranteeing the indebtedness Secured by the insured mortgage, or arty part thereof, whether named as an insured herein or not. (iii) the parties designated in Section 2(a) of these Conditions and Stipulations (b) "insured claimant an insured claiming joss 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 matin affecting the land- (d) 'land" the land described or referred to in Schedule (A). and improvements affixed thereto which by law Constitute real property The term "land" does not include any property beyond the lines of the area described or referred to in Schedule (A), nor any righl,title. interest. estate or easement in abutting streets, roads. avenues. alleys. lanes. ways or waterways- 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 fe) --mongage" mortgage. deed of trust. Trust deed, or other security Instrument (1) "public records" records established under state statutes at Hate of Policy for the purpose of imparting con- st.uctive notice Of matters relating to real property to purcriasers for value and withoul knowledge with respect to Section 1(a)(rv) of the Excluswns From Coverage. "public records' shall also include environmental protection liens filed in the records of The clerk of the United States district Court for the district In which the farad is located (g) "unmarketability 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 statutory lien for services. labor or material or the extent insurance is afforded herein as to assessments for street improvements under constructlon or com- pleted at Date of Policy). ar \\ (e) resulting In loss or damage which would not have been sustained if the in- sured Claimant had paid value for the insured mortgage \ 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent' owner of the indebtedness. to comply with the applicable doing business laws of the state in which the land is situated 5 Invalidity or unenforceabi lily of the lien of the insured mortgage. or claim thereof. which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6 Any statutory lien for Services. labor or materials (or the Claim Of priority of any statutory lien for services. labor or materials over the lien of the insured mort- gage) arising from an improvement or workrelated to the land which is contracted for and Commenced subsequent to Date of Policy and is not financed in whole or In part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state Insolvency. or similar creditors' rights laws. that is based on: (a) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer: or (b) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination: or (c) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure (i) to timely record the instrument of transfer. or (ii) of such recordation to Impart notice to a purchaser for value or a judge- ment or lien creditor CONDITIONS AND STIPULATIONS contractual condition requiring [he delivery of marketable title 2. CONTINUATION OF INSURANCE. (a) After Acquisition of Title. The coverage of this policy shall continue in force as of Date of Policy in tav„r of (i) an insured who acquires all or any part of the estate or interest in the land by foreclosure• trustee's sale• conveyance in lieu of foreclosure. or other legal manner which d scharges the lien of the insured mortgage (ii) 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 try operation of law and not by purchase. subject to arty rights or defenses the Company may have against any predecessor insureds; and (m) any govern- mental agency or governmental instrumentality which acquires all or any part of the estate or interest pursuant to a contract Of insurance or guaranty insuring or guaranteeing The in. debtedness secured by the insured mortgage (b) After Comreyenee of Title. The coverage of this policy shall continue in force as of Date of Policy in favor of an in- sured only so long as [he insured retains an estate or 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 W reason of covenants of warranty made by the Insured in any transfer or conveyance of the estate or interest. This policy shall not con- tinue in force in favor of any purchaser from the insured of either (i) an estate Or interest in the land. or (n) an indebtedness secured by a purchase money mortgage given to the insured. (c) Amount of Insurance: The amount of Insurance after [he acquisition or after the conveyance shall In neither event exceed the least of (i) The amount of insurance stated in Schedule A. (ii) The amount of the principal of the Indebtedness secured by the Insured mortgage as at Date of Pol;cy. Interest thereon, expenses of foreclosure. amounts advanced pursuant to the insured mortgage to assure compliance with laws 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 deterio. ration of improvements. but reduced by the amount of all payments made: or (iii) The amount paid by any governmental agency or governmental instrumentality. if the agency or instrumentality is the insured claimant. In the acquisiMn of the estate or Interest in satisfaction of its insurance Contract or guaranty I NOTICE OF CLAIM TUBE GIVEN BY INSURED CLAIMANT_ The insured shall notify the Company promptly Ir1 writing (i) in case of any Irrigation as set forth in Section 4(a) below. (r.) in [ knowledge shall come to an insured hereunder of any cl itle or interest which is adverse to the titre 10 file estate or interest or the hen of the inSu red mortgage• as insured. and which might Cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) it title to the estate or interest or the lien of the insured mortgage• as insured, is re- jected as unmarketable If prompt notice shall not be grven to The Company, then as to the insured all liability of the Com- pany shall terminate with regard to the matter or matters for which prompt notice is required; provided. however. that failure to notify the Company shall in no case prejudice the rights of arty insured under this policy unless the Company shall be pre- judiced by the failure and then only to the extent of the prejudice 4_ DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the options contained in Section 6 of These Conditions and Stipulations. the Company, at its owl Cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party aSSCrls a Claim adverse to the title or interest as insured, but only as to those Stated Causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other Counsel The Company will not pay any tees• costs Or expenses Incurred by the insured in The oe;ense at those causes of action -which allege matters not Insured against by this policy (b) The Company shall have the right. at Its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establrsh the title to the estate or interest or the lien of the insured mortgage as insured or to prevent or reduce loss or Carnage to the insured. The Company may take any appropriate action under the terms of this policy whether or not it shall be liable hereunder. and shall not thereby concede liability or waive any provision of this policy. If the Company shall exer. cise its rights under This paragraph, it shall do So diligently (c) whenever the Company Shall have brought an action or Interposed a defense as required or permitted by the provi. dons of this policy the Company may pursue arty td!gatlon to final determination by a Court of competent jurisdiction and expressly reserves the right. in its sole discretion, to appeal :ram any adverse judgment or order. (d) In all cases where This policy permits or requires the Company to prosecute or provide for the defense of any ac- tion or proceeding, the insured shall secure to the Company the right to so prosecute o• provide defense In The action or proceeding• and all appeals therein. and permit the Company 10 its Option. the name o1 the insured for this purpose (contiaued on Inside back cover) 1720 ALTA LOAN POLICY . • SCHEDULE TOTAL FEE FUR TITLE, EXAMINATION AND TITLE INSURANCE $75.00 AMOUNT OF INSURANCE: $5,000.00 ORDER NO. 216723-3 POLICY NO. M 183-507079 DATE OF POLICY: OCIOBER 6, 1994 AT: 3:36 P.M. �N yl • 1 1: �l THE CITY OF HUNTINCTION BEACH, A MUNICIPAL CORPORATION LOAN NO. GRIFFIN 2. THE ESTATE OR INTEREST IN THE LAND DESCRIBED IN SCHEDULE A AND WHICH IS COVERED BY THIS POLICY IS: A C3NIDp4Il\`aJM AS DEFINED IN SECTION 783 OF THE CALIFORNIA CIVIL CODE, IN FEE. 3. THE ESTATE OR INIERFST REFERRED 'M HEREIN, IS AT DATE OF POLICY VESTED IN: OLGA CRI ST I NA GRIFFIN, AN LINMARR I ED WUNAN AS HER SOLE AND SEPARATE PROPERTY 4. THE MORTGAGE, HEREIN REFERRED TO AS THE INSURED MORTGAGE, AND THE ASSICNM= TIEREOF, IF ANY, ARE DESCRIBED AS FOLLOWS: A DEED OF TRUST TO SECURE AN INDEBTEDNESS. AMOUNT: $5,300.00 TRUSTLOR: OLGA CRISTM GRIFFIN TRUSTEE: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTING ON BEACH, A PUBLIC BODY CORPORATE AND POLITIC BENEFICIARY: THE CITY OF HUNI'IlVG'FOIN BEACH, A MUNICIPAL CORPORATION DATED: OCTOBER 4, 1994 RECORDED: O=BER 6, 1994 AS INSTRiI= NO. 94-598932, OF OFFICIAL RECORDS CREER NO.: 216723-3 • a PAM NO. : 2 SCHEDULE A (CONTINUM- ) 5. THS LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLLOWS: THE LAND IS SITUATED IN THE STATE OF CALIFORNIA COUNTY OF ORANGE PARCEL 1: UNIT NO. 23, CONSISTING OF CERTAIN AIRSPACE AMID SURFACE E MIENTS, AS SHCFVV AND DESCRIBED IN THE CONDCMINIIN PLAN ( "PLAN") POR BRISAS DEL MAR LOCATED CST LOT 1 OF TRACT 14757, AS S:-ICWN ON A SUBDIVISION MAP RECORDED ON SEPI'EMBER 1, 1993, IN BOOK 701, PAGES 42 THROUGH 43, INCLUSIVE OF MISCELTANEOUS MAPS, IN THE OFFICE OF THE ORANGE OOi. M RECORDER (-'OFFICIAL RECORDS") , WHICH PLAN WAS RECORDED ON SEP=ER 15, 1993, AS INSTRUMENT NO. 93-0621742, OF OFFICIAL RECORDS, CALIFORNIA. PARCEL 2: AN UNDIVIDED ONE FC3RTY-FUJRTH (1/44) FEE SDP PLE INTEREST AS A TII9rNT IN CJM++10N IN AND TO MODULE B SHOWN ON THE PLAN AND DEFINED IN TI-E DECLARATION REFERRED TO BELOW AS THE "CJCNMON AREA". EXCEPT THEREYRCM ALL OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSES LYING, BELOW A DEPM OF 500 = WI=lr ANY RIGHT TO ENTER UPON THE SURFACE #R = SUBSURFACE OF SAID LAND ABOVE A DEPM OF 500 FEET, AS PRCVIDED IN INSTREMENTS OF REODRD. E• EN'r, DRAJMZE,ENCROACHN07,T, NAMIMWCE,- D FOR OTHER PURPOSES, ALL AS MAY BE SHOWN IN THE PLAN, AND AS ARE DESCRIBED IN T!HE s__W: •. PARCEL 4: EXCLUSIVE FASEMENYS APPLMINANI' TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR USE FOR PARKING PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECLARATION, OVER PORTIONS OF LOT 1 OF TRACT 14757 SHOWN AND ASSIGNED IN THE PLAN. PARCEL 5: AN EXCLUSIVE EASEMENT APPLMENP,NI' TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE, FOR USE FOR PATIO, BALCONY, AND FIRE ESCAPE STAIRCASE PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECLARATION, AS APPLIa%BLE, OVER PORTIONS OF LOT 1 OF TRACT 14757 AS SHOWN, ASSI= AND DESCRIBED IN THE PLAN. CUDFR NO.: 216723-3 40 &LTA LOAN POLICY PAGE NO. : 3 SCHEDULE B PART I THIS POLICY DOES NOT INSURE AGAINST LOSS OR DANK (AND THE CC PANY WILL NOT PAY COSTS, ATILORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF: A. COAL AND SPECIAL TAXES, A LIEN NOT YET PAYABLE, FOR THE FISCAL YEAR 1994- 1995. B. THE LIEN OF SUPPLE4UUAL TAXES, IF ANY, ASSESSED PURSUANT 'ID CHAPTER 3.5 C"ENCING WITH SECTION 75 OF THE CALIFORNIA REVENUE AND TAXATION CODE. 1. THE EFFECT OF A C a4lJ IITY OIL AND CAS LEASE EXEC-iTI£D BY L UIS BENSON AND ELOISE B. BENSON, HIS WIFE AND BY OTHER PERSONS AS TO 017HER LAND, AS LESSORS, AND BY COL3ABIA LEASING AND DEVELOPING a>TANY, A CORPORATION, AS LESSEE, RECORDED NOVEMBER 6, 1920 IN BOOK 16, PAGE 198 AND RE -RECORDED AU= 11, 1921 IN BOOK 25, PAGE 247 OF LEASES, BOTH OF LEASES, TO WHICH RECORD REFERENCE IS MADE FOR FULL PARTICULARS. 2. AN EASE= FOR PIPE LINES AND INCIDENTAL RRPOOSES, AS GRAI = TO HUNTING•ION BEACH MITANY IN THE DEED RECORDED IN BOOK 319, PAGE 149 OF DEEDS, OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. k 0-91'201-11'IS, U1001ITII&OW AND RESTRICTIONS IN AN INSTRUMENT RECORDED IN BOOM • PAGE 149 OF DEEDS, OF OFFICIAL RECORDS. THE PROVISIONS, IF ANY, OF SAID INSTRUMENT WHICH PROVIDE RESTRICTIONS BASED ON RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELETED. 4. AN FASEM]Wr FOR PIPE, POLE LINES AND INCIDENTAL PURPOSES, AS GRAN'T'ED TO PETRO= MIDDY 03MPANY, LTD., IN THE D® RECORDED IN BOOK 578, PAGE 269 OF DEEDS, OF OFFICIAL RECORDS, ALQNG- THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. Al5. a!-L }-1}AO- PIPE L-JLNC-1r1l ",:IDENM PURPOSES,a• • = To STANDARD OIL COMPANY OF CALIFORNIA IN 7HEDEED •• •r EIr IN BOOK FACE OF OFFICIAL RECORDS, AlZU THATPORTION OF • r LAND AS MOREPARTICULARLY DESCRIBED 1 r INSTRU4Wr. 6. AN EASE= FOR PIPE LINES AND INCIDENTAL PURPOSES, AS GRANTED TO STANEARD OIL CMPANY OF CALIFORNIA AND 91ANDARD CA90LINE a>TANY, IN THE DEED RECORDED IN BOOK 3577, PAGE 119 OF OFFICIAL RECORDS, ALA THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. 7. AN FASgv= FOR PIPE LINES AND INCIDENTAL PURPOSES, AS GRANTED TU THE TEXAS CIAPANY, A CIORPORATION, IN THE DEED REOORDED IN BOOK 3660, PAGE 257 OF OFFICIAL REODRDS, AUUNG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. CEIM NU.: 216723-3 , PACE ND. : 4 0 IN '&F�'J I'JI •' • AND INCIDENTAL PURPOSES, AS l'!' • = TO I GENERAL TEI • •. I 03WANY OF CALIFORNIA,CORPORATION,IN DEED •' i 91/ AS / ICI NO. • i • ' OF OFFICIAL RECORDS, ALONG THATPORTION OF • / • / DEED PROVIDES TH/• ! BUILDM • - STRUCTURE SHALJ,• •ICl/ OR MAIMIA.INED ON / EASEMENT. 9. THE TERMS, PROVISIONS AND CONDITIONS OWIAINED IN A DOCUMENT ENTITLED "AFTORDABLE HOUSING,•. • D •• y ►• EMCL= BY AND BETWEEN BEACl*-RONT LAKE STREET PROP=ES AND THE CITY OF M=NMKDN BEACH, RECORDED ' • I:EI- 2, 1987 AS INS`I`RLTw=NO. III OF OFFICIAL RECORDS. 10. AN EASEMENT FOR PUBLIC UTILITIES AMID INCIDENTAL PURPOSES, AS GRANTED TO SOlUTHERN CALIFORNIA EDISON COMPANY, A CORPORATION, IN DEED RECORDED AS INSTRUMENT NO. 87-534842 OF OFFICIAL RECORDS, ALOW, THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. 11. AN EASEMENT FOR WATER MAIN AND INCIDENTAL PURPOSES, AS GRANTED TO THE CITY OF HUNTINGIL`XV BEACH, A MUNICIPAL CORPORATION IN THE DEED RECORDED AS INSTRU= NO. 87-583411 OF OFFICIAL RECORDS, ALCNiG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. 12. THE EFFECT OF A SUBSURFACE OIL AND CAS LEASE, EKELVTED BY GILBERT M. WILSON AND ELEANOR E. WI=, HUSBAND AND WIFE, AS LESSOR, AND ANaZ PETROLEUM CORPORATION, A DEI.AWARE CORPORATION, AS LESSEE, RECORDED APRIL 18, 1989 AS INSTRUMENT NO. 89-201848 OF OFFICIAL RECORDS, COVER_II1G THE LAND LYING BELOW A DEPTH OF FIVE HUNDRED (500) FEET FROM THE SURFACE THEREOF, WITHOUT THE RIGHT OF SURFACE ENTRY ABOVE SAID DEPTH, FOR THE PERIOD AND UPON THE TERMS, COVEIVNTS AND 03MITIONS THEREIN PROVIDED, REFERENCE BEING MADE TU THE RECORD THEREOF FOR FULL, PARTICULARS. 13. THE TERMS, PROVISIONS AND CONDITIONS CONTAINED IN A DOaME3NT ENTITLED "DECLARATION OF RESTRICTIONS AND SUBDIVISION CONSENTS", EKECUTED BY DF.IA-1ARE II, A CALIFORNIA LIMITED PARINETR.SHIP, RECORDED APRIL 6, 1993 AS INSTRUMENT NO. 93-0230267 OF OFFICIAL RECORDS. 14. THE FACT THAT THE O*ZERS OF SAID LAND HAVE NO RIG -TT OF VEHICULAR ACCESS TO Da AWARE SIREE.T, UTICA AVENUE AND CALIFORNIA STREET, EXCEPT AT SPECIFIED POEM, SAID RIGHTS HAVINU, BEEN RELIIV,UISHED BY DEDICATION PROVISIONS ON THE MAP OF SAID TRACT. 15. AN INSIRUMENT ENTITLED "CONDOMINIUM PLAN" RECORDED SEPTEMBER 15, 1993 AS INSTRUMENT NO. 93 - 0 6 2174 2 OF OFFICIAL RECORDS; REFERENCE BEING MADE TO Ti IE RECORD 'HEREOF FOR FULL PARTICULARS. CIMM- IAA.: 216723-3 • PACE ND- : 5 16. MATTERS IN AN INSTRLT*lENT WHICH AMCM OTHER THINGS ODN= OR MAKE PROVISIONS FOR ASSESSMENTS AMID LIENS AND THE SUBORDINATION THEREOF; PROVISIONS RELATING TO PARTITION; RESTRICTIONS ON SEVERABILITY OF OOMXX= INIERESTS; PROVISIONS FOR CEZMJN EASEMENTS AND/CHI ENCROACHMENTS; AND CONTAINING COVENANTS, CONDITIONS AND RESTRICTIONS WHICH PROVIDE THAT A VIOLATION TH=F SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORTGAGE OR DEED OF TRUST IN GOOD FAITH AND FOR VALUE, RECORDED, AS INSTRUMETTT NO. 93-0625045 OF OFFICIAL RECORDS. THE PROVISIONS, IF ANY, OF SAID INSTRUMENT WHICH PROVIDE RESTRICTIONS BASED ON RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELETED. SAID INSTRUMENT MAY PROVIDE FOR LEVYING REGULAR AS WELL AS SPECIAL ASSFSSENTS . NO WITHSTANDING THE MORICAGM PRCJIECTION CLAUSE CONTAINED IN THE ABOVE MENTIONED OOVEMTTS, CONIDITIONS AND RESTRICTIONS, THEY PROVIDE THAT THE LIENS AND Cl-�S FOR UPKEEP AND ARE SUBORDINATE ONLY TO A FIRST MORIGACE. AN INSTRUMENT DECLARING A MODIFICATION OF SAID COVaWnS, CONDITIONS AND RESTRICTIONS WAS RECORDED, AS D4S`lRI4WT NO. 93-0680846, OF OFFICIAL RECORDS. 17. EASEI4WM FOR INGRESS AND BG ESS, PARKING, PIPEL=, DRAEAAM, SANITARY SRgMS, PUBLIC UTILITIES, STAPES AND RIG-]TS INCIDENTAL THERF."TL'?, AS DIS=ED BY INSTRUMENTS OF RECORD AND THE MAP OF SAID TRACT, AFFECTING ONLY THE CJM'ION AREA. 18. MATTERS IN AN INSTRUMENT WHICH AMONG OT.�2 THINGS OONTAIN OR MAKE PROVISIONS FOR ASSESSMENTS AND LIENS AND THE SUBORDINATION THEREOF; PROVISIONS RELATING TO PARTITION; RESTRICTIONS ON SEVERABILITY OF C3MPONENT INTERESTS; PROVISIONS FOR CERTAIN EASEMENTS AND/OR ENCROACI XEN TS ; AND CL"7NTAD41%, COVENANTS, CONDITIONS AND RESTRICTIONS WHICH PROVIDE THAT A VIOLATION THEREOF SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORTGAGE OR DEED OF TRUST IN GOOD FAITH AND FOR VALUE, RECORDED, AS INSTRUMENT NO. 93- 0635859, OF OFFICIAL RECORDS. THE PROVISIONS, IF ANY, OF SAID INSTRUMENT WHICH PROVIDE RESTRICTIONS BASED ON RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELETED. SAID INSTRLMIENTT MAY PROVIDE FOR LEVYING REGULAR AS WELL AS SPECIAL ASSESSMENTS. 19. A DEED OF TRUST TO SECURE AN INDEBTENESS. AM3=: $70,400.00 TRUSTOR: OLGA CH2ISTINA GRIFFIN, AN AND SEPARATE PROPERTY TRUSTEE: CALIFORNIA MORTGAGE SERVICE, BENEFICIARY: CALIFORNIA MOR AGE SERVICE, D.B.A. ODLONIAL BANCORP DATED: OC;. MBE R 3, 1994 A CALIFORNIA CORPORATION A CALIFORNIA CORPORATION, RECORDED: OCIUBER 6, 1994 AS LNSTRUMENTT NO. 94-598930, OF OFFICIAL RECORDS CREEZ ND-: 216723-3 . PACE ND- : 6 0 20. A DEED OF 'TRUST TO SECCJRE AN INDEBTE MESS . AMOUNT: $25,000.00 TRUSMR: OLGA CRISTINA GRIFFIN TRUSTEE: THE CITY OF HUNTIN ICI BEACH, A MWICIPAL CIC)RPORATICN BENEFICIARY: THE REDEVELOPN1ENT AGENCY OF THE CITY OF HUNTINGI10N BEACH, A PUBLIC BODY ODRPORATE AND POLITIC DATED: O=ER 4, 1994 RECORDED: OCIDBER 6, 1994 AS INSIR[f4ENI' NO. 94-598931, OF OFFICIAL RECORDS ORDER NO.: 216723-3 i RNSE NO. : 7 .ALTA LQAN POLICY 0.10oxi 1 PART II IN ADDITION TO THE MATTERS SET FORTH IN PART I OF THIS SCHEDULE, THE TITLE TO THE ESTATE OR EN TERESST IN THE LAND DESCRIBED OR REFERRED TO IN SCHEDULE E A IS SUBJECT TO THE FOLLO TIMM MATTERS, IF ANY BE SHOWNk BUT THE C UI, ANY INSURES TEAT sum MATTERS ARE SUBORDINATE TO THE LIEN OR CHARGE OF THE INSURED MORTGAGE UPON ESTATE OR INTEREST: • ND. 216723-3 PACE 1 ATI = TD PCLSCY ND. M 183-507079 r Usk I it, r M. ►• •�� r�-r. • a• r. THE Ct W PANY HEREBY INSURES AGAINST' LOSS WHICH SAID INSURED SHALL SUSTAIN BY REASON OF ANY OF THE FOLLCWING MATTERS: 1. ANY ENCORRECINESS IN THE ASSURANCE WHICH THE COMPANY HEREBY GIVES: (A) THAT THERE ARE NO CJOVENANIS, 00NDITIONS, OR RESTRICTIONS UNDER WHICH TFEJ LIEN OF THE K RI= REFERRFID TO IN SC] EDULE A CAN BE = OFF, SUBORDINATED, OR 071ERWISE IMPAIRED; (B) THAT THERE ARE NO PRFS= VIOLATIONS ON SAID LAND OF ANY ENFORCEABLE COVRMNTS, CONDITIONS AMID RESTRICTIONS. r r •• r i• .• a i� •r �r • r it •. • • r • r r ir. •• • • ••s.• i� •v �r • • r • r r ir. 2. (A) ANY FUIURE VIOLATIONS ON SAID LAND OF ANY OOVETZWM, CONDITIONS, OR RESTRICTIONS OCCURRINS PRIOR TO ACQUISITION OF TITLE TO SAID ESTATE OR IlVPERFST BY THE INSURED, PROVIDED SUQ-i VIOLATIONS RESULT IN LOSS OR IMPAIRMENT OF THE LIEN OF THE MORTGAGE REFERRED TO IN Sa=ULE A, OR RESULT IN LOSS OR IMPAIRMENT OF THE TITLE TO SAID ESTATE OR INTEREST IF THE INS[= SHALL ACQUIRE SUCH TITLE IN SATISFACTION OF THE INDEBTEDNESS SECURED BY SUCH MORTr`IAGE; (B) UNMARKETABILITY OF THE TITLE TO SAID ESTATE OR INIEP= BY REASON OF ANY VIOLATIONS ON SAID LAND, OOCURRING PRIOR TO ACU`ISITION OF TITLE TO SAID ESTATE OR IlVTEREST BY THE INSURED, OF ANY 0WRWITS, CONDITIONS, OR RESIRICI'ICNS. r r � r• • s i� •• r �r i• • r r r y nr.- �� �y 0 NO. 216723 -3 PACE 2 r i 5 �r• •..-,a �y •• � gar r • ►• wee • � r i■ - • a i• raw • r i• .. a�• • • • � (A) WHICH ARE LOCATED OR ENCROA04 UPON THAT PORTION OF THE LAND SUBJECT TO ANY EASE= IN SQ-ff U B, WHICH DAMAGE RESULTS FROM THE EXERCISE OF THE RIGHT TO USE OR MAINTAII4 SUCH EASE= FOR THE PURPOSE FOR WHICH THE SAME WAS G2AN!TED OR RESERVED; (B) RESULTING FROM THE EXERCISE OF ANY RIG-1T TO USE THE SURFACE OF SAID LAND FOR THE EXTRACTION OR DEVELOPMENT OF THE MINERALS EXCEPTED FROM THE DESCRIPTION OF SAID LAND OR SHOW AS A RESERVATION IN SC== B. . r r• as - •- •a�- •• rwna �a • a• • r • a • � -• • it • • • • y �• • r DID In* • - al 7l' • • • 1 r 1 al' THE 'IL7I'AL LIABILITY OF THE COMPANY UNDER SAID POLICY AMID ANY DOORSEMTM TKEFEIN S-.ALL NOT EXCEED, IN THE AGGREGATE, THE FACE A 40= OF SAID POLICY AND SAID POLICY AND COSTS WHICH THE OCf'TANY IS OBLIGATED UNDER THE CaMITIONS AND STIPULATIONS THER.EOF TO PAY. TAIS ENEORSEVENNT IS MADE A PART OF SAID POLICY AND IS SUBJECT TO THE SOAn FS, CONDITIONS AND STIPULATIONS THEREIN, EXCEPT AS MODIFIED BY THE PROVISIONS HEREOF. %• • v r `� �• • • •• Ile 0 . r. i err•.. -+a �a ND. 216723-3 ENDCRSEMENr ATIA¢ED TO PCLICY ND. M 183-507079 ISSUED BY NATIONS T= INSURANCE COMPANY = =ANY ASSURES THE INSURED THAT AT THE DATE OF THIS POLICY THE DEY04SIONS OF THE EXTERIOR BOLMARY OF THE LAND REFERRED TO IN SC=J E A OF THIS POLICY, WHICH IS ALSO THE EK=OR BM,1DARY OF THE PROJECT, ARE CORRECTLY SH( M1N ON THAT MAP SlKkV ON SCHEDULE A OF SAID POLICY, IN THE OFFICE OF THE QX= RECORDER OF SAID COUNTY . ITHE CCMPANY FUIZ= ASSURES THEINSURED ►• I IN SAID LAND • � E• • Er TO 1IN SCHEDULEINCLUDES RESIEENrIAL EPUMLING 1UNrr, WITHINI ••• BOUNMRIES,DESCRIBED r • ED� IN I OFFICE OF I MZTIY RECORDER OF MANSE COUNTY,Ir FGUWN AS 409 UTICA AVEMEC23, C17Y OF 1 • : O• • a•MY OF CRANGE, SIMEOF r I rR I i• I• • ICI• cli: I 1 • •�r •. • I •4 • • r I L • ••I�r •'1a1r • I I I y r• I • M lyl' 1 `I /• • • • •I m 1 e Mej • - THE TOTAL LIABILITY OF THE COMPANY UNDER SAID POLICY AND ANY INDORSEVENTS THEREIN SHALL NOT EX®, IN THE AGGREGATE, THE FACE AMOUNT OF SAID POLICY AND COSTS WHICH THE 03MPANY IS OBLIGATED UNDER THE 03NDITIONS AND STIPULATIONS 'IHERDOF 'M PAY. THIS ENDORSII= IS MADE A PART OF SAID POLICY AND IS SU&TECT TO THE S0=1 S, CONDITIONS AND STIPULATIONS THEREIN CONTAINED. �►•v • �: III IF I " 111PA 6 sell—, . Ir I • •co• iTi �►��:��i.:�ti���S:IY • Shom AD. 216723-3 ATIAC HM TO PCgAIGY NO. M 183-507079 THE INSURANCE AFFORDED BY THIS EN ORSEfJ= IS ONLY EFFECTIVE IF THE LAND IS USED OR IS TO BE USED PRIMARILY FOR RESIDENTIAL PURPOSES. THE:, CUARANY INSURES THE INSURED AGAINST LOSS OR DAMAGE S lS7AENEI) BY REASON OF LACK OF PRIORITY OF THE LIEN OF THE INSURED MORTGAGE OVER: (a) ANY &WIROIZIENTAL PROTECTION LIEN WHICH, AT DATE OF POLICY IS RECORDED IN THOSE RECORDS ESTABLISHED UNDER STATE STATUTES AT DATE OF POLICY FOR THE PURPOSE OF IMPARTING CONSTRUCTIVE NOTICE OF MATTERS RELATING TO REAL PROPERTY TO PURLS FOR VALUE AM WITTi = HIUOWLEEGE, OR FILED IN THE RECORDS OF THE CLERK OF IT E UNITED STATES DISTRICT COURT IN WHICH THE LAND IS LOCATED, D, EXCEPT AS SET FUR.TH IN SCHEDULE B ; OR (b) ANY ENVIRONMEt lAL PR0TECTICN LIEN PROVIDED FOR BY ANY STATE STATUTE IN EFFECT AT DATE OF POLICY, EXCEPT ENVIRal4ENTAL PRCIrECI'ION LIENS PROVIDED FOR BY THE FOLLOWING STATE STATUTES: THIS ENDORSEMENT IS MADE A PART OF THE POLICY AND IS SUBJECT TO ALL OF THE TERMS AND PROVISIONS 711EMF AND ANY PRIOR ENDORSEMETTIS TV EREIIO. EXCEPT TO THE EX= EXPRESSLY STATED, IT NEITHER MODIFIES ANY OF THE TERMS AND PROVISIONS OF THE POLICY OR ANY PRIOR ENDORSEMENTS, NOR DOES IT EXTEND THE EFFECTIVE DATE OF THE POLICY OR ANY PRIOR ENDORSEMENTS, NOR DOES IT INCREASE THE FACE AMOUNT T HE2MF . 1 �'a5 1 • a �' 5 err•._ -+a �a � a i*•• s �a « CONDOMINIUM P UNIT AIRSPACE DIMENSION PLAN: BUILDING "C' LOVER LEVEL UNITS 23 THRU 32 aa �o•OO GO' L• 4.W NOTES: .I J SCALE: I' = 16' GIMM MkLL 0C CTW ) 1. • INDICATES COX-40N BUILDI4C C04TROL POINT. 2. SEE SHEET 6 FCR =-OUNDARY PLAT. 3. SEE SHEET 7 FOR BUILDING LOCATION PLAN. 4. SEE SHEETS 8 THRU 19 FOR UNIT AIRSPACE DIMENSION PLANS. 5. SEE SHEETS 20 THRU 23 FOR SCHEDULES OF TYPICAL UNIT VERTICAL SECTIONS. 6SEE SHEETS 24 THMU 27 FOR TYPICAL UNIT VERTICAL SECTIONS. 7.. SCE SHEET 28 FOR OPEN PARKING CATION PLAN. rnNDITIONS AND STIPULATIONS (Continued from inside front cover) Whenever requested by the Company the insured at the Com pany s expense shall give the Company all reasonable aid (i) in any action or proceeding securing evidence obtaining witnesses prosecuting or defending the action or proceeding or effecting settlement and (n) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage as insured If the Company is prejudiced by the failure of the insured to furnish the required coopera tion the Company s obligations to the insured under the policy shall terminate including any liability or obligation to defend prosecute or continue any litigation with regard to the mat ter or matters requiring such cooperation 5 PROOF OF LOSS OR DAMAGE In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage The proof of loss or damage shall describe the defect in or lien or encumbrance on the title or other matter insured against by this policy which constitutes the basis of loss or damage and shall state to the extent possible the basis of calculating the amount of the loss or damage If the Company is prejudiced by the failure of the in sured claimant to provide the required proof of loss or damage the Company s obligations to the insured under the policy shall terminate including any liability or obligation to defend pro secute 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 any authorized represen tative of the Company and shall produce for examination inspection and copying at such reasonable times 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 Policy which reasonably pertain to the loss or damage Further if requested by any authorized representative of the Company the insured claimant shall grant its permission in writing for any authorized representative of the Company to examine inspect and copy all records books ledgers checks correspondence and memoranda in the custody or control of a third party which reasonably pertain to the loss or damage All information designated as confidential by the insured clai mant provided to the Company pursuant to this Section shall not be disclosed to others unless in the reasonable judgment of the Company it is necessary in the administration of the claim Failure of the insured claimant to submit for examina tion under oath produce other reasonably requested information or grant permission to secure reasonably necessary informa tion from third parties as required in this paragraph unless pro hibited by law or governmental regulation shall terminate any liability of the Company under this policy as to that claim 6 OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS TERMINATION OF LIABILITY In case of a claim under this policy the Company shall have the following options (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness (i) to pay or tender payment of the amount of insurance under this policy together with any costs attorneys fees and expenses incurred by the insured claimant which were author ized by the Company up to the time of payment or tender of payment and which the Company is obligated to pay or (n) to purchase the indebtedness secured by the insured mortgage for the amount owing thereon together with any costs attorneys fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of pur chase and which the Company is obligated to pay If the Company offers to purchase the indebtedness as herein provided the owner of the indebtedness shall transfer assign and convey the indebtedness and the insured mortgage together with any collateral security to the Company upon pay ment therefor Upon the exercise by the Company of either of the options provided for in paragraphs a(i) or (n) all liability and obliga tions to the insured under this policy other than to make the payment required in those paragraphs shall terminate including any liability or obligation to defend prosecute or continue any litigation and the policy shall be surrendered to the Company for cancellation (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant (Q to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy together with any costs attorneys fees and expenses incurred by the insured claimant which were authoriz ed by the Company up to the time of payment and which the Company is obligated to pay or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy together with any costs attorneys fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay Upon the exercise by the Company of either of the options provided for in paragraphs b(i) or (n) the Company s obligations to the insured under this policy for the claimed loss or damage other than the payments required to be made shall terminate including any liability or obligation to defend prosecute or continue any litigation 7 DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemnity aga nst actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described (a) The liability of the Company under this policy shall not exceed the least of (Q the amount of insurance stated in Schedule A or if applicable the amount of insurance as defined in Section 2(c) of these Conditions and Stipulations (n) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Conditions and Stipulations or as reduced under Section 9 of these Conditions and Stipulations at the time the loss or damage insured against by this policy occurs together with interest thereon or (ni) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect lien or encumbrance insured against by this policy (b) In the event the insured has acquired the estate or interest in the manner described in Section 2(a) of these Conditions and Stipulations or has conveyed the title then the liability of the Company shall continue as set forth in Section 7(a) of these Conditions and Stipulations (c) The Company will pay only those costs attorneys fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations 8 LIMITATION OF LIABILITY (a) If the Company establishes the title or removes the alleged defect lien or encumbrance or cures the lack of a right of access to or from the land or cures the claim of unmarket ability of title or otherwise establishes the lien of the insured mortgage all as insured in a reasonably diligent manner by any method including litigation and the completion of any appeals therefrom it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby (b) In the event of any litigation including litigation by the Company or with the Company s consent the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction and dispose tion of all appeals therefrom adverse to the title or to the lien of the insured mortgage as insured (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company (d) The Company shall not be liable for (Q any indebtedness created subsequent to Date of Policy except for advances made to protect the lien of the in sured mortgage and secured thereby and reasonable amounts expended to prevent deterioration of improvements or (n) construction loan advances made subsequent to Date of Policy except construction loan advances made subse quent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the land which at Date of Policy were secured by the insured mortgage and which the insured was and continued to be obligated to ad vance at and after Date of Policy 9 REDUCTION OF INSURANCE REDUCTION OR TERMINATION OF LIABILITY (a) All payments under this policy except payments made for costs attorneys fees and expenses shall reduce the amount of the insurance pro tanto However any payments made prior to the acquisition of title to the estate or interest as provided in Section 2(a) of these Conditions and Stipulations shall not reduce pro tanto the amount of insurance afforded under this policy except to the extent that the payments reduce the amount of the indebtedness secured by the insured mortgage (b) Payment in part by any person of the principal of the indebtedness or any other obligation secured by the insured mortgage or any voluntary partial satisfaction or release of the insured mortgage to the extent of the payment satisfaction or release shall reduce the amount of insurance pro tanto The amount of insurance may thereafter be increased by accruing interest and advances made to protect the lien of the insured mortgage and secured thereby with interest thereon provided in no event shall the amount of insurance be greater than the amount of insurance stated in Schedule A (c) Payment in full by any person or the voluntary satisfac tion or release of the insured mortgage shall terminate all liability of the Company except as provided in Section 2(a) of these Conditions and Stipulations 10 LIABILITY NONCUMULATIVE If the insured acquires title to the estate or interest in satisfac tion of the indebtedness secured by the insured mortgage or any part thereof it is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed assumed or taken subject or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A and the amount so paid shall be deemed a payment under this policy 11 PAYMENT OF LOSS (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed in which case proof of loss or destruc tion shall be furnished to the satisfaction of the Company (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations the loss or damage shall be payable within 30 days thereafter 12 SUBROGATION UPON PAYMENT OR SETTLEMENT (a) The Company s Right of Subrogation Whenever the Company shall have settled and paid a claim under this policy all right of subrogation shall vest in the Company unaffected by any act of the insured claimant The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued If requested by the Company the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation The insured claimant shall permit the Company to sue compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any trans action or litigation involving these rights or remedies If a payment on account of a claim does not fully cover the loss of the insured claimant the Company shall be subrogated to all rights and remedies of the insured claimant after the insured claimant shall have recovered its principal interest and costs of collection (b) The Insureds Rights and Limitations Notwithstanding the foregoing the owner of the indebtedness secured by the insured mortgage provided the priority of the lien of the insured mortgage or its enforceability is not affected may release or substitute the personal liability of any debtor or guarantor or extend or otherwise modify the terms of pay ment or release a portion of the estate or interest from the lien of the insured mortgage or release any collateral security for the indebtedness When the permitted acts of the insured claimant occur and the insured has knowledge of any claim of title or interest adverse to the title to the estate or interest or the priority or enforceability of the lien of the insured mortgage as insured the Company shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount if any lost to the Company by reason of the impairment by the insured claimant of the Company s right of subrogation (c) The Company's Rights Against Non Insured Obligors The Company right of subrogation against non insured obligors shall exist and shall include without limitation the rights of the insured to indemnities guaranties other policies of insurance or bonds notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy The Company s right of sub rogation shall not be avoided by acquisition of the insured 1720 (continued on back cover) • CONDITIONS ANP STIPULATION (Continued from inside back cover) mrtgage by an ab4or (except an obligor described in Section 1(a)(u) of these Conditions and Stipulations) who acquires the insured mortgage as a result of an indemnity. guarantee, other policy of bisurance, or bond and the obligor will not be an insured under this policy, notwithstanding Section 1(a)(r) of these Conditions and Stipulations 13, ARBITRATION. Unless prohibited by applicable law. either the Company or the insured may demand arbrtration pursuant to the Title insurance Arbitration Rules of the Amencan Arbitration Asso• ciation Arbitrable matters may include. but are not rlmned tit. any controversy or claim between the Company and the insured arising out of or relating (d this policy. any service of the Com- parry in connection YAM its issuance or the breach of a policy provision or other obligation_ All arbitrable matters when the Amount of Insurance is S1.000,000 or tens shall be arbitrated at the option of either the Company or the insured Ail arbitrable matters when the Amount of Insurance is rn ex M of $1.000.000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or. at the option of the insured. the Rules in effect at Date of Po!rcy shall be binding upon the parties The award may include attorneys' fees only if the laws of the state in which the land is located perm.t a court to award attorneys fees to a prevailing party Judgment upon the award rendered by the Arbitrator(s) may be entered m any court having jurisdiction thereof The law of the SrtuS of the land Shall apply 10 an arbitration under the Title Insurance Arbdrauon Rules A copy of the Rules may be obtained from the Company upo^ request 14_ LIABILITY LIMITED TO THIS POLICY; POUCY ENTIRE CONTRACT (a) This policy together w.th all endorsements. if any. attached hereto by the Comparry is the entire policy and con- tract between the insured and the Comparry In interpreting arty provision of this polity. this policy shall be corstrued as a whole (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the lien of the insured mortgage or Of the title to the estate or interest Policy of Title Insurance Issued By Covered hereby or 7y any action asserting Such Claim, shall be reStnCled to This poli(y (c) No amendment of or endorsement 10 this po5 y can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President. the Secretary. an Ass>startt Secretary or vabdatirig officer or authorized signatory of the Company 15. SEVERABIUITY_ In the event any pruvGion of this policy is held uNalid or unen. forceab:e under applicable law, the policy shall be deemed not to include that provsan and all other provisions shall remain in full force and effect * NOTICES. WHERE SENT All notices. required to be given the Company and any state- ment in wntrng required to be lumshed the Company sha+ inc''irde the number of this policy and shall be addressed to the Com- pany at M College Blvd . Suite 700. Overland Park. Kansas 66211 Nations Title Insurance Company 6800 College Blvd. / Suite 7001 Overland Park, Kansas 66211 913-491-5585 1720 REQUEST FOR,COUNCIL/REDEVEAPMENT APPROVED BY CITY COUNCIL AGENCY ACTION ED 94-42 Date: September 19, 1994 Submitted to: Honorable Mayor/Chairman and City Council/Agency Members Submitted by: Michael T. Uberuaga, City Administrator/Executive Director � Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic Development Subject: DOWN PAYMENT ASSISTANCE PROGRAM --PARTICIPANT APPROVAL Consistent with Council Policy? [XI Yes [ ] New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, AttachmenVn STATEMENT OF ISSUE: Huntington Beach City Charter, Section 613, requires that each complete contract with a borrower in the Community Development Block Grant and Redevelopment funded Down Payment Assistance Programs must be approved by the City Council/Agency. RECOMMENDED COUNCIL ACTION: 1. Approve the borrower listed on the attached by name, the amount of the loan and the specific property subject to trust deed and authorize incorporation into the previously approved Down Payment Assistance loan documents. 2. Authorize Mayor/Chairperson and City/Agency Clerk to execute the Agreement between the city and/or Agency and the participant as approved herein. 3. Release funds for Down Payment Assistance Program participant. ANALYSIS: As part of the 1993-94 Community Development Block Grant Program the Citizen Advisory Board recommended and the Council approved $200,000 as a pilot program to provide Down Payment Assistance to moderate income households and since that time the details of the program have been approved by the City Council. RCA ED 94-42 September 19, 1994 Page Two On November 1, 1993, the Redevelopment Agency approved $400,000 in Redevelopment Housing Set -Aside funds to assist a minimum of fourteen low-income buyers as per Resolution No. 244 in the Brisas del Mar Condominium project. The low-income borrowers herein are participants in this program and some may be participants in the CDBG program as well. Huntington Beach City Charter, Section 613, requires the City Council/Agency to approve each contract in writing, including the Down Payment Assistance Program loan documents. With approval of the attached borrower, loan documents for each can be prepared, routed for signature and provided to the escrow agent. Additional borrowers will be recommended until the funds are expended. ALTERNATIVES: Do not approve the participants. FUNDING SOURCE: Community Development Block Grant - $200,000 total appropriation. Approximately $156,000 committed. Redevelopment Agency Housing Set -aside - $400,000 total appropriation. Approximately $219,000 committed. MTU/BAK/SVK:jw ma9442 • • RCA ED 94-42 September 19, 1994 Page Three DOWN PAYMENT ASSISTANCE PROGRAM Loan Location of Property Name Amount Subject to Trust Deed 94-17 Christina Griffin $25,000 (Set -Aside) 409 Utica Avenue C-23 $ 5,300 (CDBG) Note: Borrowers have received "conditional loan approval" from first trust deed lender.