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HomeMy WebLinkAboutPELTIER, EDWARD - 1996-07-15 .. .. •of�, V Y~__:T.�1 i' - - ' -. 1 - °�� CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department DATE: June 12,2000 TO: Gus Duran,Housing/Redevelopment Manager FROM: Joyce DeKreek,Housing/Redevelopment Consultan SUBJECT: Research on Loan Forgiveness, 1"Time Home-Buyers Program Redevelopment Set-Aside,$400,000 and Redevelopment Set-Aside, $750,000 I have reviewed our records regarding funding of I"Time Home-Buyers Program to determine the names and amount of assistance which benefited the applicants from the $400,000 in Redevelopment Set-Aside funds approved by the Redevelopment Agency (RDA)at their November 1, 1993,meeting and from the$750,000 in Redevelopment Set-Aside funds approved by the RDA for the Pacific Park Villas at their February 6, 1995 meeting. The Redevelopment Agency approved nine applicants from the$400,000 allocation in conjunction with the City's CDBG 1"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($25,000),Hoang(S23,000), Lawson(S23,000),Mslvin($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 1s` Time Buyer Program. The names and amounts are(Carrillo($35,000),Forchione ($35,000),Heckethorn($35,000),Hosseinali($35,000),Hocker($35,000),Lawrence ($35,000), Mureh($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/Uniack, Ojeda,Rene/White,Stratton),previously approved by RDA were not funded. GToycdintesmcmo Reconaty.doc 1 - +'l:r vrW.+ w'�.AT�'%t•�N4Yi y - - <1�� • • - "i` �~f.._ _ \� .•�,1�1•*r'4•~1�. - _•• '-y •1 ��4:ir 1`•S•1a.i`:'a tirr a�L.�j- •1.-. 1 One loan OVallace)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 Ioan 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 anon qualified buyer and has shared equity. Cc: Connie Brockway,City Clerk Paul D'AIessandro,Deputy City Attorney David Biggs,Director,Economic Development John Reekstin,Director of Administrative Services Dan Viilella,Director of Finance Jake Rahn,Administrative Services Hank Reveles, Sr.Accountant Joyce de Kreek,Economic Development Steve Holtz, Development Specialist GloyceAntermemo Reconvey.doc PACIFIC PARK VILLAS ($750,000—RDA) 95-01 (2-1-95) Carillo,Ann $ 35,000 7861 Happy Drive,#102 RDA 12-19-94 95-02 (2-1-95) Lawrence,James and Jeanette $ 35,000 18051 Joyful Lane,#16 RDA 12-19-94 95-03 (2-1-95) Wong,Wesley Chi $ 35,000 7681 Happy Drive,#202 RDA 12-19-94 95-04(2-1-95) Hocker,ChristopherNandereb, Gayle$ 35,000 7681 Happy Drive,#101 RDA 12-19-94 95-06(4-12-95) Rivera,Victor/Burgess,Debra $ 35,000 18061 Joyful Lane,#104 RDA 4-3-95 96-01 (1-24-96) Heckethorne,Sean R Jacquelyn $ 35,000 7871 Happy Drive,#102 RDA 1-16-96 96-02 (3-7-96) Margolis,Peter S 35,000 18651 Joyful Lane,#104 RDA 3-4-96 96-03 ( Weinfeld,Julie $ 35,000 18061 Joyful Lane,#205 'RDA 4-1-96 96-04(7-17-96) PeItier,Edward $ 35,000 ' 7871 Happy Drive,#201 RDA 7-15-96 96-05 (8-7-96) Wallace,Barbara Jo $ 35,000 18051 Joyful bane, 9205 RDA 8-5-96 96-06(8-7-96) Murch, Gregory $ 35,000 18051 Joyful Lane,#102 RDA 8-5-96 97-01 (1-29-97) Krueck,Deborah $ 35,000 18061 Joyful Lane,#101 RDA 1-21-97 97-02 (4-30-97) Osterhoudt,Robert and Kathy $ 35,000 18061 Joyful Lane,#102 RDA Gfjoycelintemxmo R=nvey.doc J f 1, :;r 1, �i _r-.y4:ir - �, .�rYy.:.' Rt-{�' ._ C�,C y �ti+,�•�_• J•••• _ + ��. • 'i•C' :r.�:, it f.;.. i .r pf 'l •x.. -'.(e •`s. • 41 {.t-"_;-S- }.ty`Y•'•,..• t.,}:_• ti.' - f_ fiN4� AIL i• T•'•�` •i-•-••.:`,..% :y�.,;i-.t� .�:~. .. •_ . 97-03 (5-14-97) Hosseinali,Faroukh 3-35,000 18061 Joyful Lane,#201 RDA - 97-04 (7-23-97) Forchine,Richard $ 35,000 18051 Joyful Lane,#201 RDA 7-21-97 1:t TIME BUYER ASSISTANCE(5400,000 RDA) 94-4(2-11-94) Lawson, Sally $ 23,000 409 Utica Avenue VA-1 (RDA 1-18-94) 94-5 (2-11-94) Quick, Shauna $ 16,717 409 Utica Avenue NC-32 (RDA 1-18-94) 94-6 (2-11-94) Dieckmeyer,Barbara $ 23,000 409 Utica Avenue'#B-21 (RDA 2-22-94) 94-8 (2-11-94) Otto,TJShorb R. $ 23,000 409 Utica Avenue NA-7 (RDA 1-18-94) 94-10(2-11-94) Hoang,Tam S 23,000 409 Utica Avenue#D-37 (RDA 2-22-94) 94-11 (5-18-94) Bastou,Valerie $ 25,000 409 Utica Avenue#D-43 (RDA 5-18-94 . 94-12(5-18-94) Quick La Reine,Teresa $ 25,000 409.Utica Avenue#A-9 (RDA 5-18-94) 94-13 (6-23-94) Melvin,Patrick $ 35,000 409 Utica Avenue ffD-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 (104-94) Griffen,Olga Christina 25,000 � 409 Utica Avenue PC-23 (RDA 9-19-94) $243,717 G:rjoycellntennemo Reconvey.doe i OFFICE OF THE CITY CLERK _ CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION HUNTINGTQN•EACH TO: Future City Clerks and Deputy City Clerks FROM: Janelle Case, Deputy City Clerk per Instructions by Connie Brockway, City Clerk SUBJECT: Down Payment Assistance Forgivable Loans DATE: September 16, 1999 The attached documents are included in this file to assist you in the future to determine the forgiveability of the down payment assistance loans. DOWN PAYMENT ASSISTANCE PROGRAM Pacific Parlr Villas ,_�.,�. ._ ._.__�______..��_.�.. _ .._.._.....__, �CounclVAgency Loan No. Name Property Address _ Amount Date ,/ 95-01 Carillo,Ana 7861 Happy Drive#102 92648 35,000 113195 95-02 Lawrence, James/Jeanette 18051 Joyful Lane#101A 92648 35,000 �r113195 95-03 Wong,Wesley 7861 Happry Drive#202 92648 35,000 1/3195 1/ 95-04 Hocker, Christopher&Vandereb, Gayle 7861 Happy Drive#101 92648 35,000 1/3195 95-0B Rivera, Victor& Burgess, Debra 18061 Joyfu!Lane#!04 92648 35,000 - -413195 96-01 Heckethome, Sean/Jacquelyn 7871 Happy Drive#102 92648 35.000 _ 11_16196 96-02 - Margolis, Peter 18051 Joyful Lane#104 92648- _ __ 35,000 314196 96-03 Wienfeld, Julie 18061 Joyful Lane#205 92648 _35.000 -4/1196 96-04 Peltier, Edward __ _ 7871 Happy Drive#201 92648 r 35.000 7./15/96 98-05 Wallace, Barbara Jo - 18051 Joyful Lane#205 92648 35.000 8/5196 96-06 Murch, Gregory s_. 18651 Joyful Lame#f02'92648 35,000 815196 97-01 Krueck, Deborah J. 18061 Joyful Lane#103 92648 _35,000 _1/21197 97-02 Osterhauelt, Robert/Kathy 18061 Joyful Lane#102 92648 _ _ 35,000 _ 4/30197 97-03 _ Hosseinali, Faroukh _ 18061 Joyful Lane#201 92648 _ 35,000 _ 515/97 97-04 Torchione, Richard 18051 Joyful Lane*201 92648 - 35,000 -- 7/1197 ? �r He CITY OF HUNTINGTON BEACH Inter-Department Communication TO: Gus Duran,Economic Development FROM: Gail Hutton,City Attorney DATE: June 1, 1999 SUBJECT: Determination of Loan Forgiveness RLS 99-359 INDEX: BACKGROUND You have asked far a determination of whether several loans made by the City of Community Development Block Grant funds, for the first time home buyer down payment assistance program, are forgivable. ISSUE Are the nine loans forgivable? ANSWER Yes, if they were funded with the first S 100,000 appropriated for this program. ANALYSIS As part of the 1993-94 CDBG program the City Council approved$100,000 as a pilot program to provide down payment assistance to moderate income households. We have reviewed several RCAs submitted by your department to the City Council for implementation of this program. The RCAs we reviewed were the originals in the City Clerk's office. From our review of these documents,we have developed the following chronology: 10125/93:The City Council approved sample loan documents and four participants: Diane Culaciati,Michele Tullock, Osman Taban,and Caroline Sutherland in the total amount of $40,475. (RCA attached hereto as Attachment 1). 1 , 4's:4-99,%temos:Duran527 11/15/93:The City Council was requested to approve and additional S100,000 in CDBG funds for the program. The Council deferred the item to December 6, 1993. (RCA attached hereto as Attachment 2). - 12/6193: The City Council approved three more participants in the original program: Michelle Schmaderer, Carol Kanarski, and Nicholas Kormeluk. The amounts of their loans are not listed! (RCA attached hereto as Attachment 3.) 12/20/93,Item E-17:The City Council approved an additional participant in the program,David Dixson, for the amount of S 10,000, and increased the amount for participant Nicholas Kormeluk from S8,600 to S10,600. (RCA attached hereto as Attachment 4.) 12/20193, Item F-2:The City Council approved an additional S100,000 for the program,but changed the program to require repayment of these additional funds. There are two important attachments to this RCA. The first is entitled"Approved Participants,"and lists the following six participants: Culiaciati,Taban, Sutherland,Schmaderer,Kanarski,and Kormeluk, in the total amount of$61,952? The second important document attached to this RCA is the list of"Pending Participants." It shows eight more participants in the total amount of S59,100. It is not determinable from this RCA whether these persons were intended to be in the grant program or the loan program, and we do not know when, if ever,these participants were actually approved. 1/3/94:The City Council approved three more participants in the original,non-repayment program:Judy Young,Treva Love, and Ellen Ommondson, in the total amount of S31,000. When added to the previously committed amount of$73,952, the total amount of funds committed is S 104,952. This exceeds the original S 100,000 appropriated for the original,non- repayment program. The analysis portion of this RCA states that"the approvals herein will be the first funded with the new appropriation,"which implies that at least a portion of the funds used for these participants were part of the funds that were conditioned for repayment, as opposed to the original,non-repayment funds. However,the total numbers listed are roughly consistent with the original S100,000 set aside for the grant program. The total amount of loan funds used is less than$5,000. (RCA attached hereto as attachment 5). Our review of the above documents and chronology of events indicates that the Council did not intend to require repayment of the original$100,000 appropriation. Clearly, then,the Ioans made to Culiaciati,Taban, Sutherland,Schmaderer,Kanarski,Dixson and Kormeluk are forgivable,because they were funded using$73,952 of the first$100,000 appropriation. The problem is presented by the transactions with Young,Love, and Ommondson. -We believe that the Council's intent was to not require repayment from these participants. Unfortunately, there was only$26,048 of the original,non-repayment funds available to these participants, and collectively,they received$31,000. Thus, a small portion of the funds used for these Note that an attachment to this RCA lists ten approved participants. Since the dates listed are after the Council meeting of 1216/93,we believe that this list has been erroneously added to the 12/6/93 RCA. 2 Please note that earlier during the same meeting,the Council had also approved David Dixson for S10,000,and an additional$2000 for Kormeluk. Thus the amount committed from the original S 100,000 was actually S73,952. 2 4/s:4-991%Semos:Duran527 participants must have come from the second S100,000, which the Council appropriated with the condition that the loans be repaid, not forgiven. CONCLUSION There are ttivo conflicting Council actions. The Council's intent was to include participants Young, Love and Ommondson in the original, forgivable loan program. However, it appears that a portion of the funds actually used for the loans to Young,Love and Ommondson were from the second appropriation of funds,which included a repayment condition. Therefore,eve recommend that the Council clarify this conflict by approval of an RCA that forgives the loans made to Young,Love and Ommondson. ! z Gail Hutton City Attorney 3 4.'s:4-99�1emos:DuranS27 t ; CounciVAgency Meeting Held: 5-1 -9`' Deferred/Continued to: 6 feu �(Approved ❑ Conditionally Approved ❑ Denied City Clerk's ignature C.84Wct Af' kN o r Council Meeting Date: May 17, 1999 Department ID Number: ED 99-29 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: RAY SILVER, Executive Directo W— PREPARED BY: DAVID C. BIGGS, Economic Development Director)p c, a SUBJECT: Authorize the Transferability of 15 Pacific Park Villas Down Payment Assistance Loans—Approve and Authorize Execution of Documents Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: Currently, the down payment assistance loans made by the Redevelopment Agency for Pacific Park Villas must be individually approved by the City Council. In order to facilitate transfers of these loans, staff is requesting that the Redevelopment Agency establish procedures for administrative approval of these 3 transactions. Fundinq Source: None as a result of this action. , Recommended Action: Motion to: 1. Authorize the Executive Director and the Agency Clerk to execute on behalf of the Redevelopment Agency any and all documents necessary to transfer to new low and moderate-income homebuyers the Down Payment Assistance Loans made by the Agency at the inception of the Pacific Park Villas project. See Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be approved as to form by the Agency Counsel). 2. Authorize the Executive Director and Agency Clerk to execute on behalf of the Redevelopment Agency any and all documents necessary to subordinate or to reconvey the Agency loans (notes and deeds of trust), as these home owners refinance, sell their homes or meet their loan obligations, as stated in their notes and deeds of trust. See Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be approved as to form by the Agency Counsel). i REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: May 17, 1999 DEPARTMENT ID NUMBER: ED 99-29 Alternative Action(s): The Redevelopment Agency can retain the authority to approve the transferability of each and every Down Payment Assistance Loan made on this project. The number of loans originated for this project was 16 loans. This means that each and every time, Agency staff will have to prepare a Request for Agency Action, thereby increasing staff time and costs. It will also delay the ability the sellers and buyers to close escrow quickly. In some cases the delays could cause undue hardship and cause the sale of properties to fall out of escrow. Analysis: In 1996, the Redevelopment Agency made 15 Down Payment Assistance Loans to low- and moderate-income homebuyers purchasing dwellings at the Pacific Park Villas residential project located near Talbert and Beach. The purpose of these loans were to expedite the sales of homes in the Pacific Park Villas project and simultaneously meet the Redevelopment Agency's obligation to assist low and moderate income persons with 20% Set Aside Funds, as required by Redevelopment Law. The loans made to these homebuyers were meant to be transferable to other low and moderate-income familiE.-s. The City Attorney's Office has been requested to make a determination of the transferability and has rendered a decision indicating that the loans are transferable to other homebuyers that meet the income qualification of having incomes below 120% of the median income for Orange County. (See attached memorandum from the City Attorney's Office). Some of these homebuyers are now ready to move on with their lives and are desirous to sell their properties. To facilitate the closing of escrows without significant delays to sellers and buyers, the Economic Development Department is requesting that the Redevelopment Agency Board authorize the Executive Director and the City Clerk to administratively manage the transferability of these loans. This will permit the Executive Director to execute documents without having to come the Agency Board on each and every loan, especially since these loans were prepared with the identical notes, deeds of trust and Covenants, Conditions and Restrictions (CC&R's). The City Attorney's Office has provided an opinion on the loans' transferability. Environmental Status: N/A ttachment s : : City Clerk's': - 1. City Attorneys Office Memorandum. 2. Sample Loan Documents. 3. 1 List of Down Payment Assistance Borrowers at Pacific Park Villas. RCA Author: Gus Duran X1529 RCAPPV.DOC -2. 05105199 9:34 AM J � City Attorne 's Office Memorandum Flo-in CITY OF HUNTINGTON BEACH a Inter-Department Communication TO: David Biggs, Director of Economic Development FROM: Gall Hutton, City Attorney DATE: April 26, 1999 SUBJECT: Wallace Loan Documents You have asked several questions concerning the Wallace loan documents. 1. Is the loan transferable? A. Yes,with the Agency's prior written consent. See Section 18 of the Loan Agreement. 2. What are the income limits for purchasers? A. No greater than 120%of median income (moderate income)pursuant to Section 9 of the Loan Agreement. 3. Does the new buyer need to meet the income requirements of the CC&Rs? A. Yes. 4. Is the Equity Shxe payable if the buyer qualifies under the CCB:Rs? A. Yes. 5. Can the interest be forgiven if the property's fair market value does not exceed S%per year? A. No, unless the Agency approves forgiving the interest. 6. Should the Equity be calculated minus the selling expenses? A. No. Please contact me if you have any further questions. 1 Gail Hutton City Attorney 4Is:4-99N1emos:8iggs426 3 CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department TO: Gail Hutton, City Attorney Paul D'Alessandro,Deputy City Attorney FROM: David C.Biggs,Director of Economic Development DATE: April 20, 1999 SUBJECT: First Time Home Buyer Loan for Barbara Jo NVallace Yesterday, April 19, 1999, Gus Duran, the Department's Housing and Redevelopment Manager met with Ms. Barbara Jo Wallace, her real estate agent and other property owners of the Pacific Park Villas project to discuss their-concerns regarding First Time Homebuyer loans made to them by the Redevelopment Agency. As you may recall, at a previous City Council meeting, hlr. Bob Osterhoudt made a plea to the City Council requesting assistance for the property owners of this complex. In addition, Ms. Wallace has written to the Mayor and the City Attorney (April 2, 1999) requesting the Redevelopment Agency's assistance in resolving her needs to sell her property with the Agency's assistance. The Economic Development Department is ready and willing to help Ms. Wallace and the other property owners sell their homes,as they need to move on with their lives when they desire,but we are in need of a legal opinion regarding the following issues: - 1. Is the loan made to Ms. Wallace, which is similar to those made to the other buyers of Pacific Park Villas,transferable? 2. What are the income limit requirements for the purchasers of these homes when a property ov.ner sells his/her home? (See attached 1999 Orange County Affordable Housing Woiksheet issued "by the law firm of Stradling, Yocca, Carlson&Rauth.) 3. Does a new buyer need to meet the�income requirements established in the CC&R's? 4/20/99:Gus Duran:HoudevMALLACE i L 4. Is the "Equity" payable if the sell:rs sell their home to a buyer that meets the income requirements established in the Note and the CCRR's? 5. Can the interest be forgiven if the property's "fair market value"does not exceed 5%per year? 6. Should the "Equity" be calcu?aced minus the selling expenses (See Section 4A of Loan Agreement)" We are requesting an immediate opinion on these issues, as Ms. Wallace has already purchased a home in the State of Washington and has a pending sale of her property in Huntington Beach in the works, subject to the Agency's determination on these issues. At the moment, her pending sale is being held up because neither the seller, nor the buyer kno%vs what to do with the information on the nate and deed of trust, or the CC&R's. Attached are copies of Ms. Wallace's documentation.These are the following; 1. Loan Agreement to Ms. Wallace from the Redevelopment Agency. 2. Promissory Note 3. Deed of Trust with Assignment of Rents 4. Lending Instructions 5. Certificate of Proposed Transferee 6. Declaration of Conditions, Covenants and Restrictions for Property 4R0.99Zus Duran:ttoudev:WALLACE 1 ' J t Sample Loan Documents LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 5tf,. day of _. 19�by and between BARBARA JO WALLACE ("Participant") and the RED VELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as 19051 Joyful Lane 4205 Huntington Beach, California, and more particularly described in Exhibit A attached hereto and incorporated herein (the "Property")- B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and currently earns less than 120% of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to the Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. The Agency desires to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable:housing cost within the City of Huntington Beach(tile "City"). E: The Agency wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW,THEREFORE, for good and valuable consideration the parties agree as follows: 1. Agency oan. The Agency shall Ilan to Participant (the"Agency Loan")the amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the Program. The Agency Loan shall be paid to the seller of the Property(the "Seiler") by the Agency through deposit of the Agency Loan proceeds into escrow with TIEKPO ESCRaq, INC., A CALIFORNIA OORPa=ION (the "Escrow Agent") (Escrow No. _9442—e ). The Agency shall direct the Escrow Agent to apply the proceeds of the Agency Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the Agency a Loan Agreement Page 1 of S 41skG:4.96-Agrcc-.W iltacc:loanagra: R L,S 96.523 7l26►96 promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple interest at five percent (5%) per annum, due in thirty(30)years and payable upon the earlier sale, refinancing or transfer of the Property, substantially in the form of the "Promissory Note" attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to the Agency a second deed of trust encumbering the Property which shall secure the Promissory Note (the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated herein. 2. Maintenance of 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. Due on Sate Transfer or Refinancin Participant agrees to notify the Agency not less than thirty(30) days prior to (i)the sale or transfer of the Property or(ii) any refinancing of the lien of the Agency Deed of Trust or any lien to which the lien of the Agency Deed of Trust is subordinate(the "First Mortgage"). The Agency Loan and all interest accrued thereon shall be due and payable upon (i) such sale or transfer, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for an amortization period longer than the loan secured by the First Mortgage, or(iii)Participant is no longer an occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan. 4. Equity Sharing. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency concurrently with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price(defined below) as follows: I. Prior to fifth anniversary of the Agency Deed of Trust: fifty percent(50%) 2. After fifth anniversary but prior to sixth anniversary: forty-eight percent(48%) 3. After sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: forty-four percent(44%) Loan Agreement Page 2 of 8 JILS 96-523 7nG/9G 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) 8. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9. After twelfth anniversary but prior to thirteenth anniversary: thirty-four percent (34%) 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%) 11. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 19. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) Loan Agreement Page 3 of 8 4`s�G:4.96-Agree:W allace:ioanagree RUS 96.523 71206 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. Auer thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs,broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty(60)days following completion . of such capital improvements to the Property Participant shall send the following to the Agency: (i)an itemized list of the improvements, (ii)proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs,broker's commissions, loan fees or any other closing or transaction costs. Loan Agreement Page 4 of 8 4%%\Ci:4-96-AUcc:W altacc:loanagrce R US 96-523 7r26l96 • rr l A. Equity Share Upon-Sale or Transfer. The Equity Share Amount shall be payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer") whose income exceeds 120% of the current annual median income for the Orange County area. If the Buyer does not submit an income verification statement to the Agency, the Buyer shall be deemed to exceed such income limit. If the Buye.does not exceed the aforesaid income limit, the Equity Share Amount shall not become payable. B. Eguity Share Upgn Refinancing or Fail re to occupy. The Equity Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property or material breach of any other provision of this Agreement which causes the Agency Loan to become due and payable. The Sales Price for purposes of determining the Equity Share Amount shall be determined by an appraisal of the Property. The A ency shall appoint a certified, independent,'appraiser to conduct an appraisal of the Property, at Participant's expense. and PEMCIPant agrdes at in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between the Purchase Price and the appraised value of the Property as of the time of such refinancing. This Agreement shall be terminated upon the Participant's repayment of the Agency Loan and payment of the Equity Share Amount as provided in this Agreement. C. Expiration of Equity Share ffiligation. In the event the Participant does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or is not in material breach of any other provision of this Agreement before the Thirtieth anniversary of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share Amount to Agency upon any later sale, transfer or refinancing. 5. Occupant Sty andards.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. G. Income Informati n. Participant has submitted an eligibility verification form to the Agency prior to execution of this Agreement. Participant represents and warrants to the Agency that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the Agency is relying upon Participant's representations that Participant's income does not exceed 120% of the area median income and would not have entered this Agreement if Participant's income exceeded 120% of the area median income. 7. Loan Servicing;. The Agency may contract with a private lender to originate and service the Agency Loan. 8. Participant Financin . Participant shall obtain financing for the purchase of the Property from the Southern California Home Financing Authority or a reputable institutional lender approved by the Agency(the "Lender"). The lien secured by the Agency Deed of Trust Loan Agreement Page 5 of 8 4ls1G:4AG-Agrcc•W alluc:loansgree RI t9G32J MUM • 1 t ' shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns. In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of loan. 9. Covenants. Participant and the Agency shall execute and have recorded in the Official Records of Orange County, California, a"Declaration of Conditions, Covenants and Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated herein, in which Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health& Safety Code Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Agency and the City. 10. Non-Waiver. Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. l 1. Indemnification. The Participant shall defend, indemnify and hold harmless the Agency and the City of Huntington Beach and their respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the Agency or the City to make such payments, by virtue of the Agency Loan. 12. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty(30)days after receipt of notice from the other party constitutes a default under this Agreement;provided, however, if such default is of the nature requiring more than thirty (30) days to cure,the defaulting party shall avoid default hereunder by commencing to cure within such thirty(30)day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay,and shall complete such cure, correction or remedy with diligence. i The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required go protect against further damages, the injured party may not institute proceedings against the party in default until thirty(30)days after giving such notice. Failure or delay in giving such notice shall not constitute' a waiver of any default, nor shall it change the time of default. 13. ' Documents. Participant is aware that the Agency has prepared certain documents to implement the Program and secure repayment of the Agency Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Agency Loan: Loan Agreement Page 6 of 8 41skG:4-96-A grcc:W al l acc:loanagrcc RM 96-523 7/26196 (a). DiscIosure Statement; (b) Promissory Note; (c) Agency Deed of Trust; and (d) Declaration of Conditions, Covenants and Restrictions of Property.. Participant agrees and acknowledges that the Agency Deed of Trust and the Declaration of Conditions, Covenants and Restrictions of Property shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. 14. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the Agency shall-from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Agency Loan. 15. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. . 16. Amendment of Agreement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 17. AP,AP ,enMMay Assign. Agency may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 18. Participant Assignment Prohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous Loan Agreement Page 7 of 8 4-e i:4-9G-Ar{ee:Wallacc:loanagre_ kl S 95-523 71205 t . f agreements between the Agency and the Participant concerning all or any part of the subject matter of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. "PARTICIPANT" Date: AUGUST 13, 1996 , 19 By: 1✓c�LG /Ltt v (G,, �iec.Cr Printed Name: ' Date: 19 By: Printed Name: Date: , 19 By: Printed Name: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic Date: 19 By: zi.c Chairman ATTEST: APPROVED AS TO FORM: Agency Clerk %� •Agency Counsel REVIEWED AND APPROVED: ,IMTIATED AND APPROVED: Executi a irector Director of Economic evelopment Loan Agreement Page 8 of 8 41s�G:4-9G-Agtce:Walfaec;lwnagtee niz 9G-323 712G19G y, ti EXHIBIT A LEGAL DES RIPTIM4 OF PROPERTY PARCEL 1: y An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to 6 all of the Common Area defined in Declaration referred to below and described in the condominium Plan ("Plan") for Lot 1 of Tract Ila. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of official Records of orange county, over Lot 1 of Tract No. 14828, in the City of Iiuntington Beach, county of orange, state of california, ; as per nap filed in Book 706, Pages 27 to 29 of m1scellaneous maps, in the office of the County Recorder of said county. petroleum, asphaltum, gas, minerals and other h , Excepting therefrom all oil., p r hydrocarbon P • Y substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: , [snit tlo. 22 consisting of certain airspace and surface elements, as shown and described in i the Condominium Plan referred to in Parcel I above. ` Parcel 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and, for other purposes, all as described in that certain Declaration of covenants, conditions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of official Records. Parcel 4: ExclLsive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and assigned on the Plan. Exhibit A to Loan Agreement Page I of l 41�1hgree:l�Sargolis:Exl�ibitl4�4713Gl9G • i • 1 ' EXHIBIT B PROMISSORY NOTE S 35 000.00 Huntington Beach, California ACK;USr 5TU • 19 96 FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The Redevelopment Agency of the City of Huntington Beach("Holder") at 2000 Main Street, P.O. Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct from time to time in writing, Thirty-five Thousand Dollars ($35,000.00) (the "Note Amount") together with interest thereon at the rate set forth herein. All sums hereunder shall be payable in lawful money of the United States of America and all sums shall be credited first to interest then due and the balance to principal. 1. Interest Rate Simple interest shall accrue on the Note Amount at a rate of five percent(5.00%) per annum. If the fair market value of the Property does not increase at least five percent (5.00%) per annum, the accrued interest on the Note Amount shall be forgiven by the Holder. 2. Maturity Date The balance of all unTaid principal and accrued interest shall be due and payable on AUGUST 5TH , 20 6 (thirtieth (30th) anniversary date of this Promissory Note). 3. Acceleration The whole of the Note Amount plus accrued interest and all other payments due hereunder shall become due and be immediately payable to the Holder by the Maker upon the occurrence of any one of the following events: (a) Maker sells or otherwise transfers title to the Property;or, (b) Maker refinances any lien or encumbrance to which the Agency Deed of Trust is subordinate for a loan amount which is in excess of the then current loan balance of such prior lien or extends the amortization period of the loan secured by such prior lien; or (c) Maker fails to occupy the Property or to perform any obligation under the Agreement (as hereinafter defined). "Exhibit B" to Loan Agreement Pagel of 3 *sX4-96Agrcc:Wa11acc:L-xhivitB RLS 96-523 W26196 ! � L 4. Security for Note This Promissory Note shall be secured by a second deed of trust encumbering the Property (the "Agency Deed of Trust"), executed by Maker as Trustor in favor of Holder as Trustee. 5. Prepayment of N teAmount Maker may prepay to Holder the full Note Amount, together with simple interest thereon at a rate of five percent (5.00%) per annum, at any time prior to the due date of the Note Amount. 5. I, an Agreement This Promissory Note is made and delivered pursuant to and in implementation of Loan Agreement entered by and between the Holder and the Maker dated AUGUs'r 5, l9 (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference. The Maker acknowledges that but for the execution of this Promissory Note,the Holder would not enter into the Agreement or make the loan contemplated thcrein. Unless definitions of terms have been expressly set out at length herein, each term shall have the same definition as set forth in the Agreement. 7. Holder May AuLpn Holder may, at its option, assign its right to receive payment under this Promissory Note without necessity of obtaining the consent of the Maker. S. Maker Assignment Prohibit In no event shall Maker assign or transfer any portion of this Agreement without the prior express written consent cf the Holder, which consent may be given or withheld in the Holders sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan proceeds hereunder. 9. Attorneys'Fees and Costs In the event that any action is instituted to enforce payment under this Promissory Note, the Maker promises to pay such sums as a court may fix for court costs and reasonable attorneys' fees. 10. Non-Waiver Failure or delay in giving any notice required hereunder shall not constitute a waiver of any default or late payment, nor shall it change the time for any default or payment. "Exhibit B" to Loan Agreement Page 2 of 3 4\s%4.96Agrcc:W■IlaceXxhibWj R!S 96-523 7126MG IL Successors Bound' i This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. "M,&K ER" By: 9o! Printed Name: RAMIARA Jo WALLA, By: Printed Name: By: .z Printed Name: i I "Exhibit B" to Loan Agreement Page 3 of 3 41a14-9GAgrcc:W allace:f:xhibilD RLS 9G-523 7126 MG RECORDING REQUESTED BY ) AND WHEN RECORDED RETURN TO: ) Redevelopment Agency of the City of } Huntington Beach ) 2000 Main Street ) Huntington Beach, California 92648 } Attn: Agency Clerk ) f Spacc Above This Line For Rccordces Use) This document is exempt from recording fees pursuant to Government Code Section 6103. DEED OE TRUST T WITH ASSIGNMENTS OF RENTS THIS DEED OF TRUST is made this ST11 day of AUG. , 19,96. by and among BARBARA JO WALLACE, whose address is 18051 Joyful Lane, 9205, Huntington Beach, California (the "Trustor") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPINIENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic(the"BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a)all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. "Exhibit C" to Loan Agreement Page i of 15 4`s 0:4.96agrce:W&11acc:CxhibiLC RLS 96-523 712V96 A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of Thirty-five Thousand Dollars(535,000.00) with interest thereon according to the terms of a Promissory Note of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof. 2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes, or(b) as may be added to the indebtedness secured hereby in accordance with the provision of this Deed of Trust. 3. Performance of each and every obligation, covenant, promise or agreement of Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated AUGUST 5 , 19 96 , insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor-in-interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: 1. To keep said property in good condition and repair;to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to sutler 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 t improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon;not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; "Exhibit C" to Loan Agreement Page 2 of 15 41s%G:4.9Gar,ree:W altace:CxLibitC R US 96-323 7/26r96 (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 marl, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen(15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property;(f) not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor s1lall 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 Beneficiay, 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 sick damage or destruction does not result in cancellation or termination "Exhibit C" to Loan Agreement Page 3 of 15 414%0:4-96aprce:Watlace:ExhibitC RtS 96-523 7126196 of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and fines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (0 for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g)such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may(a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof. Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so "Exhibit C" to Loan Agreement Page 4 of 15 4V\G.4-96agrce:W;[lace:CxhibitC RLS 96-323 7126196 expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. S. To appear in and defend any action or proceeding purporting to affect the security hereof or the property%vhick is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property id directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust, 6. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether vo'cntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. S. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by malting any payment, pe.f'orming any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time,without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or "Exhibit C" to Losn Agreement Page 5 of 15 4Cj�,0:4.96ag ce:Wallace:ExhibitC R S 9G•323 7l2Gt9G thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may; (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c)join in granting any easement thereon, (d)join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re-assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5)years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust(unless directed in such request to retain them). 13. That as additional security,Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Trust Deed, or cause Beneficiary to be(a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or(c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Beneficiary confers upon Trustor a license("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents,- issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid,Trustoes right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver "Exhibit C" to Loan Agreement Page G of 15 4%S%G:4-96agrte:W allace:GxliibitC RLS 96-323 W26l96 to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, mare cancel, dnforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to tape, 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 cr discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys'fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the.lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c)Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e)Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done%%tich may cause modification or termination of any such lease or of the obligations of any lessee er 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 paragrap' , Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. If the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of "Exhibit C" to Loan Agreement Page 7 of 15 414`G:4-963grce:wallacc:17xhibitC RLs 9G-523 MG196 • 1 1 r Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, sllall distribute them to the person • or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor,Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have "Exhibit C" to Loan Agreement Page 8 of 15 41s`.0:4-96agrte:W allacc:F.xLibilC RLS 9G-S2] 7126176 been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby, whether or not named a3 Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more,Trustor agrees to file with Beneficiary, annually on January 1, a written operational report. Such operational report shall contain a brief but complete statement of the year's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 20. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California, Beneficiary stall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of'frust or of any action or proceeding ill which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby,Trustor agrees to pay said fee, if any, of said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable. 23. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to "Exhibit C" to Loan Agreement Page 9 of 15 4's:G:4-96agree:%Vattace:LxhibitC RLS 96-523 T/26r96 disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No_ 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR: BARBARA JO WALLACE By: By: APPROVED AS TO FORM: Agency Counsel ;Elc,14 7..Zj/G "Exhibit C" to Loan Agreement Page 10 of 15 41s1C3:�-9Ga�te:W aSl aa:CxlibiiC RLS 9G•SZ3 7/MAX RIDER TO DEEI) OF TRUST FIRST TIME If MEBUYER DOWN PAYMENT ASSISTANCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUGUST 5TH , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand Dollars ($35,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Trustor shall pay to Beneficiary concurrent with such sale, transfer or ref nanci1g, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor(the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary of the Agency Deed of Trust: fifty percent (50%) 2. Alter fifth anniversary but) prior to sixth anniversary: forty-eight percent (48%) 3. Alter sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: forty-four percent (44%) 5. Auer eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent(40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) S. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9. After twelfth anniversary but prior to thirteenth anniversary: thirty-four percent (34%) "Exhibit C" to Loan Agreement Page 11 of 15 43e G:4-96a prce:W[Mace:Ex)iibilC RLS 96-523 7r 6r96 • j s 7 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%) It. Auer fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twetlty-six percent (26%) 14. After seventeenth anniversary but " prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent(101/16) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) "Exhibit C" to Loan Agreement Page 12 of 15 41sV(;:4.9Gagrcc:Wsllaet:r•.xhil�itC R1 S 96-523 712G19G • . . 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (M) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The percentage factor so determined is the"Applicable Factor." If the Property is sold, an amount equal to the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the amount received by Trustor as the Property sale price (as reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. if the Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is subordinate is refinanced for a loan amount which is in excess of the then current loan balance or extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between (i)the original Property purchase price and (ii)the appraised value of the "Exhibit C" to Loan Agreement Page I3 of 15 4`a`.G:4AGagrcc:W allacc:Exh;biiC RLS 9G-523 71206 Property as of the time of such transfer or refinancing. Dated: AUGUST 13, 1996 TRUSTOR BARBARA J(5 WALLACE APPROVED AS TO FORM: Agency Attorney "Exhibit C" to Loan Agreement Page 14 of 15 41c1(i:4.9Gagrcc:Wallacc:f:xhiLitC: RLS 96-523 7126)96 RIDER TO DEED OF TRUST SUPERIORITY OF FIRST LENDER DOCUMENTS (if required by the First Lender) This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUGUST 5 , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor tFe sum of Thirty-five Thousand dollars ($35,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter recorded against the property described herein. Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions of this Deed of Trust sha'I terminate and have no further force and effect upon the occurrence of one of the following everts: 1) Title is acquired by the First Lender or another party upon foreclosure of a deed of trust by the First Lender. 2) Title is acquired by the First Lender or another party by a deed in lieu of foreclosure of the First Lender deed of trust. Dated: AUGUST 13, 1996 TRUSTOR: APPROVED AS TO FORM: NUUMA Jo LACE Agency Attorney "Exhibit C" to Loan Agreement Page 15 of 15 41f�G:4 96agrct:waii�a:i:xltiiUitC RLS 96-523 W26196 CALIFORNIA ALL--PURPOSE ACKNOWLEDGMENT STATE OF CALzFVMzA S5. COUNTY OF CRANGE - Oil AUGUST 13, 1996 — — - before fire, the u►idersigned, personally nin)eared BARBARA JO WALLACE personally known to rile (or proved to tire oft [lie basis of satisfactory evidence) to be lire person(s) whose name(s) is/are subscribed (o lite within instrument and acknowledged to rile that lielslielihey executed (lie same in histheiltheir authorized capacily(ies), and (list by histherltheir, S1911ahrre(s) oil the Instrument (lie person(s) or the entity upori behalf of which (lie person(s) acted, exeWted the instrument. WITNESS illy (land and official seal. (I iris area for official rtolarlal sear) • r- .,�'w'- ,i LINDA J.CAMPBELL = n- �. COMM.# 1045344 uj Signatur . e �.� _� cn =G-�4_ y_ taosArnr PUBLIC-CALIF anvIA� aanrvcc COtu1TY LINDA J. CAMPBELL - ;; MY COMM.EOtes DEC.20.IM rr HIM frrrfltrftlfrrlr[rfrfrrrflrrrfr OPTION L llrf[llrlrtlr[[f[[[fllft ft[rf[llrlll[ Though (lie data below are not required by law, they irray prove valuable to persons relying on the docur:lent and could prevent the fraudulent realtachrileril of this form. Capacity Claimed Sy Signer Deserlptior of Attached Document Windividual U Corporate Officer trrlrstsj '11110 or"type of voctrrtttVlt Ij Partner(s) U Limited ' U.General U Attorney-in-Fact U Trustee(s) - t lumber of Pages tj Guardian/Conservator U Other: Dare of Document Signer is Representing: (•lame of Pemantsj or Entrtytiesj Signertsj surer Y lieu flartted Atlove EXHIBIT A TO AGENCY DEED Or TRUST LEGAL DESCRIPTION PARCEL is An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to E all of the common Area defined in Declaration referred to below and described in the . condominium Plan ("Plan.") for Lot 1 of Tract vo. 14828, which Plan was recorded on August 25, 1994 as instrument No. 94--0525335 of Official. Records of Orange County, over Lot 1 of : Tract No. 14828, in the city of Huntington Beach, County of Orange, state of California, 5 as per map filed in Book 706, Pages 27 to 29 of Hiscellaneous !laps, in the office of the County Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and otheK hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: Unit No. 22 consisting of certain airspace and surface elements, as shown and described in I the condominium Plan referred to in Parcel 1 above. Parcel 3: . non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of Covenants, conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336 of official Records. Parcel 4: Exclusive easements appurtenant to Parcels i and 2 referred to above, for balcony or patio purposes, over the areas:defined, depicted and assigned on the Plan. "Exhibit A" to Agency Deed of Trust Page 1 of 1 4klG:Agrcc:Nfargotis:CxhCDcc"7r1E/9G RIS 96-127 EXHIBIT D DECLARATION OF CONDITIONS. COVENANTS AND RESTRICTIONS FOR PROPERTY RECORDING REQUESTED BY ) AND WHEN RECORDED MAIL TO: } } } } } (Space above for Recorder's use.) THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY (the "Declaration") is made by and between BARBARA JO WALLACE (the "Covenantor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic(the "Agency" or"Covenantee") as of the date set forth below. RECITALS A. Covenantor and the Agency have entered into a certain Loan Agreement dated AUGUST 5 , I9 96 _, (the "Agreement," a copy of which is on file with the Agency at its offices and is a public record) pursuant to which the Covenantor has agreed to subject certain real property(referred to in the Agreement and referred to herein as the "Property") described in the"Legal Description of the Property" (which is attached hereto as Exhibit "A" and incorporated herein by this reference) to certain covenants, conditions and restrictions. B. The Community Redevelopment Law(California Health and Safely Code § 33000 et seq.) provides that a redevelopment agency shall establish covenants running with the land in furtherance of redevelopment plans. NOW, THEREFORE, the parties hereto agree and covenant as follows: "Exhibit D" to Loan Agreement Page 1 of 9 4\3%0'.4.96Agrcc:W allace:ExhibitU RLS 96-523 W29W 1. Affordability Covenants. Covenantor agrees for itself, and its successors and assigns, and evcry successor to Covenantoes interest in the Property, or any part thereof that for thirty(30)years from the date ofrecording of the Deed of Trust in favor orthe Agency regarding the Property(the"Expiration Dater'): (a) Tl.e Property shall only be owned and occupied by Convenantor or by other persons or families of"Moderate income." "Moderate Income" shall mean persons or families earning One Hundred Twenty Percent(120'l4)or less of Grange County median income, adjusted for appropriate family size. (b) Tl e Property shall be kept mmilable at Affordable Housing Cost (as defined below) to the Covenantor or other persons or families of moderate income. Affordable H.ousing Cost shalt mean, as to each person or family of tow or moderate income, that purchase price which would result in monthly housing payments which do not exceed an amount under any currently prevailing conventional home mortgage lending rates applied by any reputable institutional home mortgage lender, or the lending sates of any government-subsidized or special mortgage program for which such person or family qualifies and has obtained a first trust deed loam, which do not exceed thirty-five percent(35%)of One Hundred Ten Percent (110%) of the Orange County monthly median income for those persons and families of moderate income(as determined by the United States Department of Housing and Urban Development) earning between Eighty Percent(801/A)and One Hundred Ten Percent(110%) of tile Orange County monthly median income, and Thirty-five Percent(350A)of'the monthly median income of any person or family of moderate income which earns rrore than One Hundred Ten Percent (1 140/0) and not more than One Hundred Twenty Percent(120%) of the Orange County median income. (c) The covenant contained in this Section I shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 2. Transfer cif ELQp ert .. No transfer of the Property shall occur until the Agency determines(a)that the proposed purchaser intends to occupy the Property as the proposed purchaser's principal residence, (b) that the proposed purchaser is a person or family of moderate income and(c)that the proposed transfer occurs at an Affordable Housing Cast. The Agency shall not be obligated to approve a transfer until and unless the proposed purchaser has subiitted to the Agency such information and completed such forms as the Agency shall request to certify the proposed purchaser's intent with respect to its residency of the Property and its gross income, and the proposed purchaser has submitted an af#idrait disclosing and certif ring the amount of the proposed purchase price. Prior to conveyance oftl:e Property, each approved purchaser shall submit to the Agency an executed disclosure statement witich certifies that the purchaser is aware that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate income person or family,that the maximum permitted sales price may be less than fair market value and that the unit must be owner-occupied at all times and cannot be rented or leased. Covenantor shall cooperate with the Agency in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the Agency in connection with the Covenantors original sale of the Affordable Unit, provided that "Exhibit D" to Loan Agreement Page 2 of9 4u%C,44 96Agrcc:'%1211ict-ErJsibilU RLS 96-3 21 712W96 the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST. Covenantor Initials The covenant contained in this Section 2 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 3, on-Discrimination Covenants. Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property. Covenantor and its successors and assigns, shall refrain from restricting the rental or lease (if permitted by Covenantor) or sale of the property on the basis of race, color, religion, sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or non segregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer,use, occupancy, tenure or enjoyment of the land herein conveyed, "Exhibit D" to Loan Agreement Page 3 of 9 41s1G:4-96A&roe:W allacc:CxltibitD RLS 96-523 7/29/96 nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees in the land herein conveyed. The foregoing convenants shall run with the land." (b) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises 'herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin, in the sal.-, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection., location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees of the premises." Nathing in this Section 3 shall be construed to authorize the rental or lease of the Property if such rental or lease is not otherwise permitted. The convenants in this paragraph 3 shall run with the land in perpetuity. 4. Covenants Do Not Impair Lien. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 5. Covenants FQr Benefit of City and_Agericx. All covenants without regard to technical classification or designation shall be binding for the benefit of the Covenantee and the City of Huntington Beach(the "City") and such covenants shall run in favor of the Covenantee and the City for the entire period during which such covenants shall be in force and effect, without regard to whether the Covenantee or the City is or remains an owner of any land or interest therein to which such covenants relate. The Covenantee and the City, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such "Exhibit D" to Loan Agreement Page 4 of 9 4ls'O:4-96AZrcc:Wallace:ExhlbitD RLS 96-523 7/29/96 breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenants, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument to be excutted on their behalf by the respective officers hereunto duly authorized, this 13 day of AUGUST- 19 96. COVENANTOR &� IV B aYM JO WALLACE APPROVED AS TO FORM: Agency Counsel ;ys G,jc& "Exhibit D" to Loan Agreement Page S of 9 41,0G:4 96A&w:Wallace:ExhMtD RLS 96-523 7129/96 STATE OF CALIFORNIA ) ss COUNTY OF U[WM ) On AUGUST 13, 1996 before me, LINDA J. CAMPBELL (name,title;e.g., "Jane Doe,Notary Public"), personally appeared BARBMM JO WALLACE (namc(s)of signer(s)), personally kno=to be--OR-- XX proved to me on the basis of satisfactory evidence to be the person(s)whose n•lmc(s)is/are subscribed to the within instrument and acknowledged to nic that hclshelthey executed the sarle in his!licrlthcir authorized capacity(ics),and that by hislherlthcir signature(s) on the instrument the persor.(s),or the entity upon behalf of which the person(s)acted, executed the. instrument. Wkn ss m v hand and official seal. -- ;�:••. LINDII J.CAMPf3ELL z � Cn COWA.# 1045344 ` S L [� ep r"2�; NOTnHY PUBLIC•CALIFOf��11,4� ORANGE COUNrY .� �.� (Signal c of Notary) My Comm.Expires DEC.20,19W LINDA J. CwBE LL CAPACITY CLAIMED BY SIGNER: XX Individual Corporate Officer(s): Title(s) Partncr(s): Limited General Attorney-in-Fact Trustce(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Pcrson(s)or Entity(ies) ATTENTION NOTARY- Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF TIES CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document DEC LARATICN Or CONDITIONS, COVE<I,NNTS hSUST BE ATTACHED AND Rl?SMCTICN3 FOR PROPEIM TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AUG= 5, 1996 AT RIGHT: Signer(s)Other Than Named Above: "Exhibit D" to Loan Agreement Page 6of9 4's1G:4-96Agree:Wallace:ExliibitD RLS 96-523 W291% STATE OF CALIFORNIA ) } ss COUNTY OF ) On before me, ''- (name,title,e.g., "Jane Doe,Notary Public"), personally appeared ' T (name(s)of signer(s)), personally known to be--OR-- proved to me on the basis of satisfactory evidence to be the person(s)whose namc(s)islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their-authorized capacity(ics),and that by his/her/their signature(s) on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the instrument. Witness my hand and official seal. (Signature of Notary) CAPACITY CLAIMED BY SIGNER: i Individual Corporate Officcr(s): Title(s) Partner(s): Limited General Attorney-in-Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s)or Entity(ics) € ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. IS CERTIFICATE 'Title or Type of Document MUST BE ATTACHED_ TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signer(s)Other Than Named Above: "Exhibit D" to Loan Agreement Page 7 of 9 4t41G:4-96Agree:Watlace:Cxhibi(G RLS 94-523 7129196 STATE OF CALIFORNIA ) ss COUNTY OF ) On ,before m:, (name, title,e.g., "Jane Doe,Notary Public"), personally appeared (name(s)of signer(s)), personally knoi%m to be--OR-- proved to me on the basis of satisfactory evid.-ace to be the person(s)% hosc name(s)is/are subscribed to the within instrument and acknowledged to me that hc/shelthcy executed the same in hislltcrlthcir authorized capacity(ics),and that by Ius/hcdthcir signaturc(s) on the instrument the person(s),or the entity upon behalf of which the person(s)act-.d, executed the instrument. Witness my hand and official seal. (Signature of Notary) CAPACITY CLAIMED BY SIGNER: Individual Corporate Officcr(s): Title(s) Partner(s): Limited General Attorney-in-Fact Trustees) - Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Pcrson(s)or Entity(ics) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document h1UST BE ATTACHED TO THE DOCUMENT Number of Pages pESCRIBED Date of Document TA RIGHT: Signer(s)Other Than Named Above: "Exhibit D" to Loan Agreement Page 9 of 9 4'4%0-49GAgree:W ailim.ExhibilD RLS 96-523 7129196 EXHIBIT A LEGAL DE CRIPTION OF PROPERTY [To Be Inserted] LEGAL DESCRIPTION i EXHIBIT "A" PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to ' all of the Common Area defined in Declaration referred to below and described in the : Condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as instrument No. 94-0525335 of Official Records of orange County, over Lot 1 of ! Tract No. 14828, in the-city of Huntington Beach, County of orange, State of California, ' as per map filed in Book 706, Pages 27 to 29 of Hiecellaneous !taps, in the office of the : county Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL, 2: Unit No. 22 consisting of certain airspace and surface elements, as shown and described in : the Condominium Plan referred to in Parcel 1 above. Parcel 3: i non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument 14o. 94-0525336 of official Records. i Parcel 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areasidefined, depicted and assigned on the Plan. 4 "Exhibit D" to'Loan Agreement Page 9 of 9 4`3\G:4 9GAtree:Wallace:ExhibitD - RLS 96-523 7129196 t ` List of Down Payment Assistance Borrowers at Pacific Park Villas RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: , Transferability of Pacific Park Villas Down Payment `. Assistance Loans COUNCIL MEETING DATE: May 17, 1999 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if a licable Not Applicable Resolution (w/exhibits & legislative draft if applicable)_ Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (wlexhibits if applicable) (Signed in full by the qLty Attomeyj Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attorne Not Applicable Certificates of Insurance (Approved by the Cft Attorne Not Applicable Financial Impact Statement Unbud et, over$5,000 Not Applicable Bonds If applicable) Not Applicable Staff Report If applicable) Not Applicable Commission, Board or Committee Report If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicatile EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FOR RDED Administrative Staff Assistant City Administrator Initial City Administrator Initial n City Clerk EXPLANATION FOR RETURN OF ITEM: (Below Space For City Clerk"s Use • RCA Author: Duran at extension1529 J ,B CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CSTY CLERK CITY CLF,RK I.ETTF,R OF TRANSNUTTAL RFGARDING ITEM APPROVED BY THE CITY C0UNC11.1RFDFVFL0P's%1F.NT AGFNCY APPROVED ITEM DATE:_../P. 7 'TO: .� ATTENTION: Name _ DEPARTMENT: Street REGARDING: City,state,Zip See Attached Action Agenda Item Datc of Approval Enclosed For Your Records Is An Executed Copy Of The Above Referenced Item For Your Records. Connie Brockway City Clerk Attachments: Action Agenda Page Agreement Bonds Insurance L1 RCA Deed Other Remarks: CC: Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance Other Name Department RCA Agreement Insurance other Risk iNtanagement Department Insurance Copy 1/ G:Follor%up'aV misiransltr (Telephone:714-536-5227) spy EVIDEN E OF INSURANCE -92—NT-6180-7 PolicyNumber CONDOMINIUM/ Replaced Policy Number ASSOCIATION POLICY Coverage afforded by this policy Is provUed by the Company Indicated be!ow: ® STATE FARM FIRE AND CASUALTY COMPANY A Stock Company, Bloomington, Illinois ❑ STATE FARM GENERAL INSURANCE COMPANY A Stock Company, Bloomington, Illinois ❑ STATE FARM LLOYDS COMPANY A Lloyds Company, Dallas,Texas This Is to certify that the Company Indicated above has the following Insurance In force: Unitoriner's Name and Mailing Address (W.3p T$ PA EDWARD G. PELTIER, AN UNMARRIED MAN 04h!tP *, 711511C. 7871 HAPPY DRIVE, #201 b+oc�,,.. Par-",, Qrv.o.s,..7Cw+ HUNTINGTON BEACH, CALIFORNIA 92648 Insured's Name and Mailing Address PACIFIC PARK VILLAS Automatic Renewal If the Policy Period Is HOMEOWNERS ASSOCIATION shown as 12 Months, this policy will be renewed C/0 KEYSTONE PACIFIC PROPERTY automatically subject to the premiums, rules and 41 D O N E W P O R T PLACE DR S T E 350 forms In effect for each succeeding policy period. If N E W P O R T BEACH CA 92 6 60—2 4 3 7 this policy Is terminated, we will give you and the The Policy Period begins and Mortgagee written notice in compliance with the ends at 12:01 a.m. Standard policy provisions or as required by law. 01-13-95 Effective Date Time at the building locations 12 Months Policy Period unless otherwise stated. — �— Expiration of ❑ Noon Standard Time PLEASE NOTE — THIS EVIDENCE OF Policy Period INSURANCE IS ISSUED DIRECTLY Policy Type OUT OF . THE AGENT'S OFFICE. . SEE Basic Form 1 AGENT'S NAME AND ADDRESS BELOW Lj Special Form 3 $ CONTACT AGENT DIRECTLY FOR ANY MORTGAGEE CHANGES OR Limits of Liability Coverage ADDITIONS. THANK YOU $ 2,382rOOD A Euildings JOHN K. TOLLISON 15650 DEVONSHIRE ST STE 101 $ L Business Liability 2�0000000 GRANADA HILLS CA 91344-7241 lox EQ DEDUfTlah% BASIC In case of a loss we cover only that part AGENT CODE; i 762 $ of the loss over the deductible stated. SECOND MORTGAGEE Forms,Options & Endorsements CITY OF HUNTINGTON BEACH FP-6109 SPECIAL JORMt 3 OPT ED EMPLOYE DISHON 1 2000 MAIN STREET FE-6205 AMENDATORY END OPT DO DIR A OFFICERS IHUNTINGTON BEACH, FE 6466 POLICY END FE-6303 SAFEGUARDS END j CALIFORNIA 92648 FE-6506.1 POLICY END I FE-6494 ADDL INSD FE-6451 DEBRIS REMOVAL FE-6307.1 EARTHQUAKE~ END FIRST MORTGAGEE: Unitowner Mortgagee 24150995 Loan Number MISSION HILLS MORTGAGE CORPORATION, ITS _ SUCCESSORS AND/OR ASSIGNS me s gent' ignat ignature P.O. BOX 1961 1762 SANTA ANA, CALIFORNIA 92705 �ve9 Agent's Code 818 ) 892-6621 r Telephone Number By. 7 c? Date FI9112 Rev.2-M r R M Form (Rev. M LENDER'S LOSS PAYABLE ENDORSEMENT oss or damage. if any, under this policy, shall be paid to the Payee named on the first page of thin policy, its s hcr&iafter referred to as "tire Lender", in whatever form or capacity its interests may appear and whether sa said Lender in its individual or in its disclosed or undisclosed fiduciary or representative capacity, or otherwise, or trsrstee of said Lender. he insurance under this policy. or .lily rider or endorsement attached lhertto, as to the interest only of the Lend assigns, shall not be invalidated nor suspended: (a) by any error, omission, or change respecting the ownershii •rl, or l(wation of file subject of the, inst:ranee or the interest therein, or titre title thettlo; (It) by lire commencement lgs or the giving of notice of sale elf arty of the• proptrty covered by this policy by vittur elf arty mortgage or tit reach of Warranty, act.untissi«n, neglect, or with any of the provisions of this policy, including any iercaf ter attached thereto, by the named insured, the lx)rrower, mortgagor, truslur, vendee, owner, tenant, wareh. ecupant.or by the agents of either or any of them or by the happening of any event permitted by them or either of r which they failed to prevent, uhether occurring before or after the attachment of this endorsement, or whether ]• !licit under lite provision,. of this policy of insurance or of any rider or endorsement attached thereto would inva insurance as to the named insured. excluding herefrottt, however, any acts or omissions of the bender while exr ind management of the property. ,t the event of failure of the insured to pay any premium or additional premium which shall be or become due undt -y or on account of any change in occupancy or increase in hazard not permitted by this policy, this Company : mwtice to the bender of such nwrr•payment of premium after sixty (60) clays from and within one hundred and -r clue date of such premium and it is a condition of the continuance of the rights of the Lender hereunder th notified in writing by this Company of this failure of the insured to pay such premium shall pay or cause to lie pai, in ten (10) days following receipt of the Company's demand in writing therefor. If t!ce bender shall decline to pay onal 1•remium, the rights of the Lender under this Leader's Loss i'aya+lie Endorsement shall not bc• terminated bt ,r receipt of said written notice by the bender. Vherievtr this Company shall pay tc. the Lt•ndcr any steal for loss or damage under this policy and shall claim to liability therefor exist,. tilk Cumpally. at it% uptiun. may pay to the Lender the whole principal surn and inter ness clue or to become flue f.rran the insured, whether secured or unsecured, (With refund of all interest not accr+ :, to the extent ell $licit pay-ntenl. steal: therertpon receive a full assignment and transfer. without recourse. of lb• t.i securities hell as collateral thereto. i there be any other insurance upon lhr within described prof+crly, this Company shall be liable under this policy as rol+ortion of such loss or damage that the sum licreby irlstrrcd bears to the entire insurance of similar character oil -licies licit] by, payable to and consented 10 ley the Lender. Any Contribution Clause inettrtled in any F. Vaiver or any extended C0V rage E.ncdorsenlent attached to this contract of insurance is hereby nullified, and also .se in an_v other endorsement ur rider attaches] to this contract of insurance is hereby nullified except Contributi( liance Kith which the insured ha,4 received reduction in the rate charged or has received extension of the cover: •1ther ]hart fire and coinjiNance with such Contribution Clause is made a part of the consideration for insuring such - Vder ct;)on the payment to it of the full amount of its claim, will suhrogate this Company (pro rata with all other • to said payment) to all of the, Lender's rights of contribution under said other insurance. 'his Company reserves the right to cancel this policy at any titne,•as provide-d by it, terms, but in such case th. in ft-r:r 6-r tl.c benefit U the [sender for ten ( 10) days after written notice-of surly canrelIation is received by tl •n cease. 'his IH,licy shall re•rnain in full force and effect as to the interest of the Lender for a periml of tell ( 10) clays after 1,ar cel+tablc policy in renewal thereof with loss thereunder payable to the Lender in accordance a ilh the term- elf yahle Endorsement. shall have been issued by some insurance ersntpany and accclited by the Lender. hould legal title lot and l+enefrcial ownership of any of the propt•riv roverrd under this policy became vested in t s, insurarce antler this 1Mdicy shall contimut• for the term thrrecif for the benefit of they bender but. in such event. by this Lender's Lem% Payable Endorsement which are nlrt also granted the inwred under the terrrtc and cowl, vl/or under either ri4c•rs or endfirtirrnrnls attached thrreltt shall clot apl+ly to the• insurance licreunder as respects 1t notices herein provided to lie Riven by the Company to the Lender in conncctimi with this 1+olicy and this t E.ntdorsement shall he mailed ter or delivered to the i,entler at its office or brand] desrrihed un the first rage of 11 d: rd of Fire Underwriters of the Pacific, fornia Dziniters' Association. Committee on Insurance. •- -, � 1- Dom. Council/Agency Meeting Held:, , Deferred/Continued to: Approved ❑Conditional;y Approved O Denied City Clerk's Signatur Council Meeting Date: 7/15/96 Department ID Number: ED 96-47 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: MICHAEL T. UBERUAGA, Executive Directo PREPARED BY: DAVID C. BIGGS, Director of Economic Developments SUBJECT: DOWN PAYMENT ASSISTANCE PROGRAM PARTICIPANT APPROVAL FOR PACIFIC PARK VILLAS PROJECT(Talbert- Beach Project Area) Statement of issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments) Statement of Issue: The Agency is committed by a Disposition and Development Agreement to provide second trust deed loans to moderate income buyers in the Pacific Park Villas located in the Talbert-Beach Redevelopment Project Area. Funding Source: Redevelopment Agency Housing Set-Aside Funds, Account Number E-TX-E D-923-7-75-00. Recommended Action: Motion to: Approve the borrower listed on the attached by name, the amount of the loan, and the specific property subject to trust deed and authorize the Chairperson and Agency Clerk to execute the loan documents between the Agency and the participant as prepared by the City Attorney. Payment to be made to Tiempo Escrow on behalf of Edward G. Peltier. Altemative_Action(s): Do not approve the participant. t V ti x REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: 7115/96 DEPARTMENT ID NUMBER: ED 96-47 Analysis: On June 3, 1993, the Redevelopment Agency approved a Disposition and Development Agreement (DDA) between the Agency and Sassounian Capital Ventures Inc., calling for the completion of 38 condominiums on a site in the Talbert-Beach Redevelopment Project Area. Under the ❑DA, $750,000 of Redevelopment Mousing funds are committed to assist up to twenty-five moderate-income buyers in the Pacific Park Villas Condominium project. Environmental Status: Attachment(s): �City Clerk's 1. Prospective Borrower 2. Loan Agreement 3. Promissory Note 4. Deed of Trust with Assignment of Rents 5. Declaration of Covenants 6. Disclosure Statement 7. Notice of Right of Recission 8. Certificate of Proposed Transferee 9. Lending Instructions DCB:DEB:lb Dxument4 .2- 07/08/96 1:32 PM w� LOAN AGREEMENT THIS LOAN AGREEMENT(the"Agreement") is made this 22 day of July , 19 96 by and between EDWARD G. PELTIER("Participant")and the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). RECITALS A. Participant has entered into an agreement(the "Purchase Agreement")to purchase that certain real property commonly known as 7871 Happy Drive f201 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 1201/0 of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to the Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. The Agency desires to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach (the "City"). E. The Agency wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: 1, Agency Loan. The Agency shall loan to Participant (the "Agency Loan")the amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the Program. The Agency Loan shall be paid to the seller of the Property(the "Seller")by the Agency through deposit of the Agency Loan proceeds into escrow with (the "Escrow Agent") (Escrow No. 9412—C ). The Agency shall direct the Escrow Agent to apply the proceeds of the Agency Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time,Participant shall execute and deliver to the Agency a Loan Agreement Pagel of 8 *s.Q:4-96AGItEE:PELTIER:LO,%NAGREE R1S 96-63 7�I0:96 r� promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple interest at five percent(51%) per annum, due in thirty(30)years and payable upon the earlier sale, refinancing or transfer of the Property, substantially in the form of the "Promissory Note" attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to the Agency a second deed of trust encumbering the Property which shall secure the Promissory Note(the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated herein. 2. Maintenance of Property. Participant shall maintain the improvements on the property in a manner consistent with community standards and in a manner which w7II uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws. 3. Due on Sale Transfer or Refinancing. Participant agrees to notify the Agency not less than thirty(30)days prior to(i) the sale or transfer of the Property or(ii)any refinancing of the lien of the Agency Deed of Trust or any lien to which the lien of the Agency Deed of Trust is subordinate(the "First Mortgage"). The Agency Loan and all interest accrued thereon shall be due and payable upon(i) such sale or transfer, (ii)the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for an amortization period longer than the loan secured by the First Mortgage, or(iii)Participant is no longer an occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan. 4. Equity SharinZ. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency concurrently with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor(the "Applicable Factor")to the difference between the Sales Price and the Purchase Price(defined below) as follows: 1. Prior to fifth anniversary of the Agency Deed of Trust: fifty percent (50%) 2. After fifth anniversary but prior to sixth anniversary: forty-eight percent (484/0) 3. Auer sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: . forty-four percent (44%) Loan Agreement Page 2 of 8 4 i�G:4-96AGREE:PEL'nER:LOANtkGREE R IS 96-463 7.'10.96 i .y 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) 8. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9: After twelfth anniversary but prior to thirteenth anniversary: thirty-four percent (34%) 10. After thirteenth anniversary but . prior to fourteenth anniversary: thirty-two percent (32%) H. After fourteenth anniversary but prior to lifleenth anniversary: thirty percent (30%) I2. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent(28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent(26°o) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) Loan Agreement Page 3 of 8 41 G:4-96AGREE:PELTIER:LOANAGREE RLS 96.463 7110'96 r 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent(10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent (8%) 23. Af3er twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent(2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Selices interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty(60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. Loan Agreement Page 4 of 8 4*iG:4-96AGREE:PELTICR:LOrLNAGREE RLS 96-463 730,96 A. Equity Share Upon Sale or Transfer. The Equity Share Amount shall be payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer") whose income exceeds 120% of the current annual median income for the Orange County area. If the Buyer does not submit an income verification statement to the Agency, the Buyer shall be deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit,the Equity Share Amount shall not become payable. B. Eauity Share Upon Refinancing or-Failure to Occupy. The Equity Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property or material breach of any other provision of this Agreement which causes the Agency Loan to become due and payable. The Sales Price for purposes of determining the Equity Share Amount shall be determined by an appraisal of the Property. The Agency shall appoint a certified, independent, appraiser to conduct an appraisal of the Property, at Participant's expense, and Participant agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between the Purchase Price and the appraised value of the Property as of the time of such refinancing. This Agreement shall be terminated upon the Participant's repayment of the Agency Loan and payment of the Equity Share Amount as provided in this Agreement. C. Expiration of Equity Share Obligation. In the event the Participant does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or is not in material breach of any other provision of this Agreement before the Thirtieth anniversary of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share Amount to Agency upon any later sale, transfer or refinancing. 5. Occupancy.Standards.The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property. 6. Income Information. Participant has submitted an eligibility verification form to the Agency prior to execution of this Agreement. Participant represents and warrants to the Agency that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the Agency is relying upon Participant's representations that Participant's income does not exceed 120% of the area median income and would not have entered this Agreement if Participant's income exceeded 120%of the area median income. 7. Loan Servicing. The Agency may contract with a private lender to originate and service the Agency Loan. 8. Participant Financing. Participant shall obtain financing for the purchase of the Property from the Southern California Home Financing Authority or a reputable institutional lender approved by the Agency(the "Lender"). The lien secured by the Agency Deed of Trust Loan Agreement Page 5 of 8 4 s\G:4-96 AG R EE:P E LTl E R:Lo,1 'AGREE RCS 96.463 7!10'96 shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns. In addition, not less than three percent(3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds,of a loan. 9. Covenants Participant and the Agency shall execute and have recorded in the Official Records of Orange County, California, a "Declaration of Conditions, Covenants and Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated herein, in which Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health& Safety Code Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Agency and the City. 10. Non-Waiver. Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 11. Indemnification. The Participant shall defend, indemnify and hold harmless the Agency and the City of Huntington Beach and their respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the Agency or the City to make such payments,by virtue of the Agency Loan. 12. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty(30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty(30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty(30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required go protect against further damages, the injured party may not institute proceedings against the party in default until thirty(30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 13. Documents. Participant is aware that the Agency has prepared certain documents to implement the Program and secure repayment of the Agency Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Agency Loan: Loan Agreement Page 6 of 8 4s`.G:4-96 AG R F E:PE LTI F R:LO.L,l.7G R E E RLS 96-463 7.'14.'96 (a) Disclosure Statement; (b) Promissory Note; (c) Agency Deed of Trust; and (d) Declaration of Conditions, Covenants and Restrictions of Property. Participant agrees and acknowledges that the Agency Deed of Trust and the Declaration of Conditions, Covenants and Restrictions of Property shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. 14. Further Assurances_ The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the Agency shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Agency Loan. 15. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. 16. Amendment of Ar�reement. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 17. Agency Mrty Assign. Agency may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 18. Participant Assignment Prohibited. In no event shall Participant assign or transfer any portion of this;Agreement without the prior express written consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous Loan Agreement Page 7 of 8 4j G:496AGREE:PELT EWLOXNAGRE£ RLS 96463 7!1096 agreements between the Agency and the Participant concerning all or any part of the subject matter of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. "PARTICIPANT" Date: _ Ju1Y 22 , 19 96 Edward G. Peltier THE REDEVELORMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic Date: - , 19% By: Chairman ATTEST: APPROVED AS TO FORM: :A.gcncy_Cleirk_ .-F _ W 4 Agency Counsel F-t 7/ri lib REVIEWED AND APPROVED: INITIATED AND APPROVED: &Vttl / Executi a Director Director of Econo is Development Loan Agreement Page 8 of 8 4 is G:4.96AGREE:PELTIER.LO.L\AGREE RLS 96463 7!10.'96 EXIIIBIT A LEGAL DESCRIPTION OF PROPERTY [To Be Inserted] Exhibit A to Loan Agreement Page I of I 4'a�hgtc:Ptlti�:Exhibit/L'0713�:96 EXIIIBIT B PROMISSORY NOTE $ 35,000.00 Huntington Beach, California July 22 , 19 96 FOR VALUE RECEIVED, the undersigned ("Maker")promises to pay to The Redevelopment Agency of the City of Huntington Beach("Holder")at 2000 Main Street, P.O. Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct from time to time in writing, Thirty-five Thousand Dollars($35,000.00) (the "Note Amount") together with interest thereon at the rate set forth herein. All sums hereunder shall be payable in [awful money of the United States of America and all sums shall be credited first to interest then due and the balance to principal. 1. Interest Rate Simple interest shall accrue on the Note Amount at a rate of five percent(5.001%o)per annum. If the fair market value of the Property does not increase at least five percent (5.00%) per annum, the accrued interest on the Note Amount shall be forgiven by the Holder. 2. Maturity Date The balance of all unpaid principal and accrued interest shall be due and payable on Jul 22 2026 (thirtieth(30th) anniversary date of this Promissory Note). 3. Acceleration The whole of the Note Amount plus accrued interest and all other pa)ments due hereunder shall become due and be immediately payable to the Holder by the Maker upon the occurrence of any one of the following events: (a) Maker sells or otherwise transfers title to the Property;or (b) Maker refinances any lien or encumbrance to which the Agency Deed of Trust is subordinate for a loan amount which is in excess of the then current loan balance of such prior lien or extends the amortization period of the loan secured by such prior lien; or (c) Maker fails to occupy the Property or to perform any obligation under the Agreement (as hereinafter defined). "Exhibit B" to Loan Agreement Page 1 of 3 4 aA-96AgrecTelticr:£xhibitB ILLS 96463 7110"96 4. Security for Note This Promissory Note shall be secured by a second deed of trust encumbering the Property (the "Agency Deed of Trust"), executed by Maker as Trustor in favor of Holder as Trustee. 5. Prepayment of Note Amount Maker may prepay to Holder the full Note Amount, together with simple interest thereon at a rate of five percent (5.00%) per annum, at any time prior to the due date of the Note Amount. 6. Loan Agreement This Promissory Dote is made and delivered pursuant to and in implementation of Loan Agreement entered by and between the Holder and the Maker dated July 22 , 19 96 (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference. The Maker acknowledges that but for the execution of this Promissory Note, the Holder would not enter into the Agreement or make the loan contemplated therein. Unless definitions of terms have been expressly set out at length herein, each term shall have the same definition as set forth in the Agreement. 7. Holder May Assign Holder may, at its option, assign its right to receive payment under this Promissory Note without necessity of obtaining the consent of the Maker. 8. Make(Assignment Prohibited In no event shall Maker assign or transfer any portion of this Agreement without the prior express written consent of the Holder,which consent may be given or withheld in the Holder's sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan proceeds hereunder. 9. Attorneys'Fees and Costs In the event that any action is instituted to enforce payment under this Promissory Note, the Maker promises to pav such sums as a court may fix for court costs and reasonable attorneys' fees. 10. Non-%Vaiver Failure or delay in giving any notice required hereunder shall not constitute a waiver of any default or late payment,nor shalt it change the time for any default or payment. "Exhibit B" to Loan Agreement Page 2 of 3 A&W96Ag=:Pclticr:ExhibitB R LS 46-463 711096 11. Successors Bound This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. "MAKER" Edward G. Peltier "Exhibit B" to Loan Agreement Page 3 of 3 4'zW96Agrnc:Pc1tier:ExhibitB RIS 96-463 VIO.'96 ATTACHINlENT #3 EXHIBIT E DISCLOSURE STATEMENT I\NVe EDWARD G. PELTIER ("Applicant")understands and agrees that the provision of financial assistance from The Redevelopment Agency of the City of Huntington Beach("Agency") is conditional on a number of factors, including, but not limited to: • I/We must qualify for a home loan from an institutional lender acceptable to the Agency. • IAVe must pay at least 3 % of the home purchase price from our own funds. • IAVe must qualify for assistance under the guidelines of the Agency's Program. • I/We as owners of the unit must occupy it for the entire term of the loan. If IAVe rent the unit to others, IAVe will be in default of the Loan Agreement. U %ye further understand and agree that: • IAVe will be responsible for repaying the loan with five percent (5%) simple interest per year at the time Uwe sell, transfer, refinance, or no longer occupy my/our home, or breach any part of the Loan Agreement. The Annual Percentage Rate for this loan is five percent (5%). The simple interest shall accrue each year, but is not required to be paid except as described in the Loan Agreement. • If within thirty(30) years from the date I/we receive the Agency financial assistance, Uwe sell or transfer the home I/we purchased under this Program to persons who are not persons of low or moderate income or refinance the lien of the deed of trust held by my/our lender, Uwe will be obligated to pay the Agency a percentage share of the difference between the price I/we paid for the home and its value at the time of such sale, transfer or refinancing. The Agency Loan is due upon sale, transfer or refinancing of the unit. • IAVe have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to The Redevelopment Agency of the City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, California 92648 "Exhibit E" to Loan Agreement Page 1 of 2 4s\0:496Agw:PchiR:E*bitE RLS 96-463 7.'10'96 • The Agency will not require me/us to make payments of principal or interest during the term of the loan. The full balance of principal and interest will be due and payable when the term of the loan expires. There are no loan closing costs, prepayment penalties or charges, points, fees, finance charges, service charges, investigation fees, credit report fees, insurance premiums, notary or escrow fees, late payment charges or other fees payable pursuant to this loan. An appraisal fee may be payable upon the refinancing of my/our house. • The Agency shall not be held responsible for any costs associated with the home Uwe purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The Agency cannot ensure that information provided by or on behalf of Applicant will be kept confidential. • The Agency shall not be responsible for the selection of a home by the Applicant,the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/we assume all responsibility for determining whether I/we desire to be considered for the Program, and Uwe will inform myself/ourselves as to the availability and terms of other public or private loans. • The Agency shall not be charged with knowledge of the contents of the documents of the primary lender. • The Agency financial assistance Uwe receive under this Program may be considered to be income for purposes of federal or state income takes and the Agency shall not be held responsible for the payment of any taxes which I/we may incur by virtue of the receipt of such financial assistance. Dated: 7-22 , 19 96 Edward G. Peltier "Exhibit E" to Loar.Agreement Page 2 of 2 4'iri:4-96Agree:Pehicr:ExhibilE RiS 96.463 7l10."96 EXHIBIT F NOTICE OF RIGHT OF RESCISSION Participant(s): EDWARD G. PELTIER Loan Amount: $35,000.00 Address of Residence: 7871 Happy Drive. 4201. Hunting on Beach. California Notice to Participant Required by Federal Law: You have entered into a transaction on_July 22, 1996 [Date] which may result in a lien, mortgage, or other security interest on your home. You have a legal right under federal law to cancel this transaction, if you desire to do so, without any penalty or obligation within three business days from the above date or any later date on which all material disclosures required under the Truth in Lending Act have been given to you. If you so cancel the transaction, any lien, mortgage, or other security interest on your home arising for this transaction is automatically void. You are also entitled to receive a refund of any down payment or other consideration if you cancel. If you decide to cancel this transaction, you may do so by notifying: The Redevelopment Agency of the City of Huntington Beach 2000 Main Street P.O. Box 190 Huntington Beach, California 92648 by mail or telegram sent not later than midnight of (Date) You may also use any other form of written notice identifying the transaction if it is delivered to the above address not later than that time. This notice may be used for that purpose by dating and signing below. I hereby cancel this transaction. (Date) Edward G. Peltier EFFECT OF RESCISSION. When a participant exercises his right to rescind under paragraph (a) of this section, he is not liable for any finance or other charge, and any security interest becomes void upon such a rescission. Within 10 days after receipt of a notice of rescission, the "Exhibit F"to Loan Agreement Pagel of 2 4 G:4-AS=:PELTIER:ExhiVhF RLS 96.463 7'10.96 creditor shall return to the participant any money or property given as earnest money, down payment, or otherwise, and shall take any action neccssary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the customer, the customer may retain possession of it. Upon the performance of the creditor's obligations under this section, the customer shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the customer, at the option of the customer. If the creditor does not take possession of the property within 10 days after tender by the customer, ownership of the property vests in the customer nithout obligation on his part to pay for it. ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acl'C0wWges receipt of two completed copies of this Notice. r ►/ 122196 Edward G. Peltier Date "Exhibit F"to Loan Agreement Page 2 of 2 4's.jG:4-Agrroe:PELTIER:ExhibitF RLS 96-463 7'10.96 EX11IBIT G EXPIRATION OF RESC SSI N PERIOD (Truth ir,Lending-Real Estate and Home Improvement Loans) Participant(s): EDWARD G. PELTIER Loan Amount: $35.000.CO Address of Residence: 7871 Happy Drive,4201,11untington Beach, California In connection with the agreement of The Redevelopment Agency of the City of Huntington Beach to make the Loan, which will be secured by a deed of trust on the residence at the above address, each of the undersigned hereby represents as follows: 1. The undersigned understands the terms ofthi3 Expiration of Rescission Periods Agreement and its attachments. 2. The Redevelopment Agency of the City of Huntington Beach has agreed, subject only to the occurrence of certain conditions, to make the Loan and has delivered to each undersigned a Disclosure Statement setting forth the terms of the Loan and a Notice of Right of Rescission advising each undersigned of their right to rescind and cancel said transaction in accordance with the Truth in Lending Act on or before the date the undersigned has executed this document. 3. Prior to the date shown above, no proceeds of the Loan have been disbursed to or for the benefit of any of the undersigned. 4. None of the undersigned have canceled or rescinded the Loan nor have any of the undersigned notified The Redevelopment Agency of the City of Huntington Beach of any intention to cancel or rescind the Loan. The undersigned request the Redevelopment Agency of the City of Huntington Beach-10-proceed with the Loan in reliance upon the foregoing representations. / C7/22/96 Edward G. Peltier Date "Exhibit G"to Loan Agreement Page 1 of I 4's',GA-96Ag=:PELTIER:Exhihi1G RLS 96-463 7:10.96 EXHIBIT 1I CERTIFICATE OF PROPOSED TRANSFEREE THIS FORM MUST BE DELIVERED TO THE DEVELOPER BEFORE PROCEEDING WITH ANY TRANSFER OF THE PROPERTY. July 22 119 96 1. The Proposed Transferee is Names: Wwa d G. Peltier Current Address: 7871 _fti _nrive._12Q1 `_ B mtington Beach, California 92648 Telephone Number: 1`800-732-2437 2. The address of the property which the proposed transferee desires to purchase is 7871 Happy Drive, 9201, Huntington Beach, California(the "Property"), which was built in the Talbert Beach Redevelopment Project Area. 3. The Proposed transferee represents, warrants and covenants the following: (a) The Property will be the principal residence of the proposed transferee. (b) The combined maximum annual income in the current year for all household members of the proposed transferee is S (This figure must reflect income from all sources.) (c) The proposed transferee will deliver to the Redevelopment Agency of the City of Huntington Beach a signed financial statement on a form acceptable to the Agency. 4. The proposed transferee's household consists of the following persons who will reside in the Property: Adults(IS or over)- [name of each]: Edward G. Peltier "Exhibit H"to Loan Agreement Page 1 cf 6 41e-GA-Agee:PELTIER:Exhbi11I RES 96463 110196 Minors(under 18)- [name of each]: 5. The proposed transferee must submit to the Developer, on a form available from the. Developer, an income certification so the Developer may determine if the proposed transferee is an Eligible Person or Family. 6. A true and correct copy of the proposed transferee's most recent tax return to the U.S. Internal Revenue Service is attached hereto. 7. The terms of the proposed transfer are: (a) Sales price of$ 174,900.00 This sales price is based on the less of XX (i) Fair market value; or {ii) The maximum price at which the Purchase Housing Cost of the Proposed Transferee would not exceed Affordable Housing Cost. The calculation of the Sales Price under this subsection(ii) is illustrated in Attachment No. 10 to the Disposition and Development Agreement. IN ORDER TO ANSWER QUESTION 2(a) YOU MUST CALCULATE THE PROPOSED SALES PRICE BASED ON AFFORDABLE HOUSING COST, TAKING INTO CONSIDERATION ALL ITEMS LISTED IN THE DEFINITION OF PURCHASE HOUSING COST. (b) Price of any personal property being sold by the owner to the proposed transferee: $ -� (if none, so state) (c) The price of S -0- to be paid by the proposed transferee for any services of Owner. (If none, so state.) (d) All other amounts of money or other consideration, if any, concerning the Property or any other matter to be paid by the proposed transferee to the Owner: $ -0- (If none, so state.) "Exhibit H" to Loar,Agreement Page 2 of 6 4V-0:4-AV=:PELTIL•R:Exhbit1I RIS 96-463 7;10:96 (e) Sources of payment of sales price: Sales price $ 174,900.00 Cash down payment $ 8,900.00 Istloan $ 131,000.00 2ndloan $ 35,000.00 Other(describe) $ 174,900.00 Total (f) The financing obtained by the proposed transferee to purchase the Property is as follows: 1 st Loan: Loan amount: $ 131,000.00 Monthly payments: $ 961.24 Interest rate 8i00 % if variable interest, describe adjustment mechanism: Due date: AU= 1, 2026 Balloon payment amount: NONE Points and fees: $3,866.50 Lender: MISSIM HILLS MORTGAGE Lender's address: 1403 NORTH TUSTIN AVE. 1280 SANTA ANA, CALIFORNIA 92701 "Exhibit H" to Loan Agreement Page 3 of 6 4'eG:4-Ac=:PELTIL•R:Exhhitl l RLS 9"3 7,I0.'96 2nd Loan: Loan amount: $ 35,000.00 Monthly payments: $ -� Interest rate 5.00% ACCRUING if variable interest, describe adjustment mechanism: Due date: UPON SALE Balloon payment amount: PRINCIPAL G ACCF U® INTEREST Points and fees: -0- CITY OF HUNTING11M BEACH Lender: 2000 MAIN ST= EUNTIR=CN EFACH, CALIEVIRIIA 92648 Lender's address: Other Loans: (describe, if none, so state) (g) The month'.y Purchase Housing Cost to be paid by the proposed transferee: 1st loan monthly payment: S 961.24 2nd loan monthly payment: $ Other loans monthly payment: $ Taxes and assessments(1/12 of yearly taxes and assessments): $ 182.19 estimate Insurance(1/12 of yearly $ -0- premium) Homeowner's dues: $ 1.75.69 Total: $1,319.12 "Exhibit H" to Loan Agreement Page 4 of 6 4's%G:4-Agroe:PELT1CR:Exhbit11 RLS 96.463 7110'46 8. A true and correct copy of the purchase and sale or other agreement between the owner and the proposed transferee is attached hereto. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. PROPOSED TRANSFEI:EE: APR.IL 22, 1996 Date Signature EUAARD G. PELTIER Signature IDWW G. PELTIIIt Print name Print name 7871 HAPPY DRIVE,, #201 Street Address Telephone HURTING] N BEACH, CALIFCRNIA 92648 City State Zip Code "Exhibit H"to Loan Agreement Page 5 of 6 d`s1G:4-Agte:PELTIER:Exhbi11 I RLS 96463 7/I0.'96 Developer's Certification Based on the Proposed Transferee's Certificate, above, and all documents attached hereto, Developer hereby certifies,that: (1) Proposed Transferee is an Eligible Person or Family; and (2) The monthly Purchase Housing Cos:to be paid by the Proposed Transferee shall not exceed the monthly AfTordable Housing Cost. [Capitalized terms used above are defined in the Disposition and Development Agreement to which this certificate is attached.] DEVELOPER: SASSM NM CAP INC. A CALI TICK--C= e_r By: Its: -�rz� �{ Date: '7—Z3- 191(o "Exhibit H" to Loan Agreement Page b of 5 4\00:4-Agree-PELTIERIAbill 1 RLS 96463 7/10,196 FAX SOW) 17 ;,"� 13 • P.ECARD+'4 Rr-WESTfD EY ` CMWAl.LAKY—E S BU Co. RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: Recorded in the County of Orange, California II Gary L. Granville, Clerk/Recorder Redevelopment Agency ofthe City of 1'!1!rll:Cl:l:ll.�.lil! l.l.'!I!I ff.��l� Ho Fee Huntington Beach 19960380374 08:00v 07/26/96 2000 plain Street 006 284182 16 17 CON Huntington Beach, California 92648 011 ash 17 0 14.00 0.00 48.00 0.00 0.00 0.00 Attn: Agency Clerk 0.00 0.00 0.00 ISpsce Abaft Pus Lme For Recor&ez Vu I This document is exempt from recording fees pursuant to Government Code Section 6103. DEED OF TRUST WITH ASSIGNMENTS OF RENTS 2rr Q THIS DEED OF TRUST is made this 22 day of July, 1996,by and among EDIVARD G. PELTIER, whose address is 7871 Happy Drive, #201, Huntington Beach, �. California (the "Trustor")and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic(the "BENEFICIARY"), whose address is v� 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, 1101k`EVER,to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. THIS DEED OF TRUST IS SECOND AND SUBORDINATE TO A FIRST DEED OF TRUST RECORDING CONCURRENTLY HER01ITH Page 1 of 15 4s G:4-96AGREE:PELTIER:ExhibitC RLS 96463 7/10.96 4 • . ,� A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of Thirty-five Thousand Dollars ($35,000.00)with interest thereon according to the terms of a Promissory Note of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof. 2. Payment of such additional sums with interest thereon as: (a) maybe hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes, or(b)as may be added to the indebtedness secured hereby in accordance with the provision of this Deed of Trust. 3. Performance of each and every obligation, covenant, promise or agreement of Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated July 22 , 19. 9s , insofar as the terms and conditions of that agreement may apply to Trustor. a. Payment, with interest thereon, future indebtedness or obligation of the Trustor(or of any successor-in-interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST,TRUSTOR AGREES: I. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at 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; Page 2 of 15 4a'0:4-96AGREF:PELTI£R:FxhihitC RLS 96-463 7l1096 1 (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen(15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (f) not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or 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 Page 3 of 15 4\s\G:4-96 AGREE:PELTIER:E xhibitC RLS 96-463 7/10/96 of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases,such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a)at least ten(10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c)when done, all encumbrances, charges and lines, with interest,on said property, or any part thereof,which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e)all costs, fees and expenses of this trust, (0 for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment,Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee,but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may(a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c)pay, purchase, contest or compromise any encumbrance, charge or lien,which in the judgment of either is or appears to be prior or superior hereto,and (d)in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended or,demand of Beneficiary,and any amount so WONbCMbWbmcoNDOwwAx Pane 4 of 15 4's`.G:4-96AGRF.E:PELTI ER:ExhibitC RCS 96-463 7.'14.96 expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. , 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property id directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 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. S. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor,that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, ,Mthout 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 Page 5 of 15 4'e.G:4-96AGItEE:PELTIER.ExhibitC RLS 96-463 730;96 thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c)join in granting any easement thereon, (d)join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upor,written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey,without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re-assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5)years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust(unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Trust Deed, or cause Beneficiary to be(a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or(c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is-not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Beneficiary confers upon Trustor a license("License") to collect;and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents, issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustoes right to collect any such money shall cease and Beneficiary shall have the right,with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver Page 6 of 15 4`f.0:4-96AGREE:PEL*nER:ExhibitC RLS 96-463 7,10.'96 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 coIIect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys'fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby,from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a)the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c)Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d)as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e)Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. If the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of Page 7 of 15 -G'G A-96AGREE:PELT1 ER:MibitC RIS 9646] 7.'10.'96 Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have Page 8 of 15 4\c\G:4-96AGREE:PELTIER:ExhibitC RLS 96-463 7/10/96 been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on January 1, a written operational report. Such operational report shall contain a brief but complete statement of the year's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 20. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable charge, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustoes behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed 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 Page 9 of 15 4's'G:4-96AGREE:PELTIER:ExhibitC RLs 96-463 7.10.'96 disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of 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 rrailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR: Edward G. Peltier APPROVED AS TO FORM. Agency Counsel Page 10 of 15 4'f.G:4.96AGREE:PEL77ER:ExhihitC RIS 96-463 WM96 RIDER TO DEED OF TRUST FIRST TIME HOMEBUYER DOWN PANWENT ASSISTANCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated July 22 , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand Dollars($35,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Trustor sUl. pay to Beneficiary concurrent with such sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor(the "Applicable Factor") to the difference between the Safes Price and the Purchase Price(defined below) as follows: 1. Prior to fifth anniversary of the Agency Deed of Trust: fifty percent(50%) 2. After fifth anniversary but) prior to sixth anniversary: forty-eight percent (48%) 3. After sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: forty-four percent(44%) 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (38%) S. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9. After twelfth anniversary but prior to thirteenth anniversary: thirty-four percent (34%) Page I 1 of 15 4`s'G:4.96:1GREE:PLLIIER:ExhibitC RLS 96-463 7;IO%96 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%') 11. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 19. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent(12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (100/0) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent(8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) Page 12 of 15 4`a'.G:4-96AGItEE:PELTIER:ExhibitC RLS 96-463 7;10,% 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Prcperty may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($2,500) shall be added to the Purchase Price unless within sixty(60) days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars($2,500) shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan. The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The percentage factor so determined is the "Applicable Factor." If the Property is sold, an amount equal to the Applicable Factor multiplied by the difference between(i)the original Property purchase price acid (ii)the amount received by Trustor as the Property sale price(as reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. If the Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is subordinate is refinanced for a loan amount which is in excess of the then current loan balance or extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii)the appraised value of the Page 13 of 15 4't.G:4-96AGREE:PELTIE•R:ExhibilC RLS 96-463 7;I4:96 Property as of the time of such transfer or refinancing. Dated: July 22, 1996 TRUSTOR Edward G. Peltier APPROVED AS TO FOU'I: A en.y Attorney Page 14 of IS 4's,0:4-96AGREE:PELTIER:ExhibilC RLS 96463 7114"96 RIDER TO DEED OF TRUST SUPERIORITY OF FIRST LENDER DOCUNIENT (if required by the First Lender) This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated July 22 • 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand dollars($35,000.00)(the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter recorded against the property described herein. Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of one of the following events: 1) Title is acquired by the First Lender or another party upon foreclosure of a deed of trust by the First Lender. 2) Title is acquired by the First Lender or another party by a deed in lieu of foreclosure of the First Lender deed of trust. Dated: Ju1Y 22► 1996 TRUSTOR: Edward G. Peltier • APPROVED AS TO FORM: Agency Attorney f-•P tilt], Page 15 of 15 4's.C:4-96AGREE:PELTIER:ExhibitC RLS 96.463 7110.'96 AMEN 4Zr V-P dW �. 0 L` STATE OF CALIFORNIA } }ss. COUNTY OF ate } 0n DULY 22, 1996 before me, LINDA J. CAMP'BELL , , personally appeared >VAW G. PELTIER personally known to me (cr 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. =lNDA=CA=P9E1 = cc -� cot~1M.#10453" CD in '"`i9• �_ ROTARY PUBLIC•MIFORNIA:U Signature = ,�;.�` oMNU COUNTYa�" IIVOA �. 'BII.L �H Comm.E�:.m DEC.zo.T9sa (This area la official Warial seal) Tile of Document Date of Document No. of Pages Other signatures not acknowledged 3008(1,9•1)(General) First AniNcan Tdic Insurarice CpT'rhtiiy EXHIBIT A TO AGENCY DEED OF TRUST LEGAL DESCRIPTION [to be inserted] PARCEL ls An undivided one twenty second (1/22) fee simple interest as a tenant in common in and tof all of the Common Area defined in Declaration referred to below and described in thell Condominium plan ("Plan") for Lot 1 of Tract No. 14828; which Plan was recorded on Augusts, 25, 1994 as Instrument No. 94-0525335 of Official Recgids of Orange County, over Lot 1 of l Tract No. 14828, in the City of Huntington Beach, County of Orange, State of California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the : County Recordar of said County. I Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon • : substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2 s unit No. B consisting of certain airspace and surface elements, as shown and described in . the Condominium Plan referred to in Parcel 1 above. Parcel 3s I non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-OS25336 of official Records. i Parcel 4s I I Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas;dafined, depicted and assigned on the Plan. i "Exhibit A" to Agency Deed of Trust Pagel of 1 Wsl-&Agree:Peltier:ExhMD cd-D7/10.94 RLS 96463 f. • WHEN RECORDED MAIL TO MISSION HILLS MORTGAGE CORPORATION 1403 NORTH TUSTIN AVENUE, SUITE 280 SANTA ANA, CA 92701 Loan Number : 24150995 (SPACE ABOVE WIS UNE FOR RECORDING DATA) DEED OF 'TRUST THIS DEED OF TRUST ('Security Instrument")is made on July 22, 1996 The trustor is EDWARD G. PELTIER, AN UNMARRIED MAN ("Borrower'). The trustee is HARTFORD ESCROW, INC. ,A CALIFORNIA CORPORATION ('Trustee'). The beneficiary is MISSION HILLS MORTGAGE CORPORATION,A CALIFORNIA CORPORATION wtich is organized and existing under the laws of CALIFORNIA ,and whose address is 1403 NORTH TUSTIN AVENUE, SUITE 280, SA 'TA AN) CA 927{�1 nder orrowcr owes nder the principal sum of OLTE HUNDRED THIRTY-ONE THOUSAND DOLLARS AND 00,100 Dollars (U.S.$ 131, 000.00 ). This debt is evidenced by Borrower's mote dated the same date as this Security Instrument ("Note"), which provides for monthly payments, with the full debt, if not paid earlier, due and payable on August 1, 2026 . This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note, with interest, and all renevrals, extensions and modifications of the Note; (b) the payment of all ot%cr sums, with interest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Iorrower's covenants and agreements under this Security Instrument and the Note. For this purpose. Borrower irrevocably grants and conveys to Trustee, in trust.with power of sale,the following described property located in ORANGE County, California: ALL THAT CERTAIN REAL PROPERTY AS MORE PARTICULARLY DESCRIBED ON EXHIBIT A ATTACHED HERETO AND MADE A PART HEREOF which has the address of 7871 HAPPY DRIVE #201 HUNTINGTON BEACH (Street] (city] CaLfornia 92648 ("Property Address'); [Zip Code] CAUFORNIA-Single Family-Fannie NlaelFreddie Niac UNIFORIN INSTRUIUENT Form 3003 9190(page I of 6 pates) 0 ZaSt1M MNI 1949(9207) EXHIBITA " " The land referred to in this report is situated in the State of California, • County of Orange , and is described as follows: A Condominium comprised of: PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to all of the Common Area defined in Declaration referred to below and described in the Condominium Plan ("Piano) for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of Official Records of Orange County, over Lot 1 of Tract No. 14828, in the City of Huntington Beach, County of Orange, State of California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in deed recorded August '16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2. Unit ITo. 8 consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. PARCEL 3: Iron-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, :r.aintenance, repairs and for other purposes, all as described in that certain Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. PARCEL 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and assigned on the Plan. TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the "Property." BORROWER COVENANTS that borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey the Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally the title to the Property against all claims and demands, subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non-uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal and Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the principal of and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender, Borrower shall pay to Lender on the day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds") for: (a) yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property, (b) yearly leasehold payments or ground rents on the Property, if any, (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums, if any, (e) yearly mortgage insurance premiums, if any, and (f) any sums payable by Borrower to Lender, in accordance with the provisions of paragraph 8, in lieu of the payment of mortgage insurance premiums. These items are called "Escrow Items." Lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. §2601 et seq. ("RESPA"), unless another law that applies to the Funds sets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the lesser amount. Lender may estimate the amount of Funds due on the basis of current data and reasonable estimates of expenditures of future Escrow Items or otherwise in accordance with applicable law. The Funds shall be held in an institution whose deposits are insured by a federal agency, instrumentality, or entity (including Lender, if Lender is such an institution) or in any Federal Home Loan Bank. Lender shall apply the Funds to pay the escrow items. Lender may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow Items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with this loan, unless applicable law provides otherwise. Unless an agreement is made or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest. or earnings on the Funds. Borrower and Lender may agree in writing, however, that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds showing credits and debits to the Funds and the purpose for which each debit to the Funds was made. The Funds are pledged as additional security for all sums secured by this Security Instrument. If the Funds held by Lender exceed the amounts permitted to be held by applicable law, Lender shall account to Borrower for the excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not sufficient to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such case Borrower shall pay to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve monthly payments, at Lender's sole discretion. Upon payment in full of all sums secured by this Security Instrument, Lender shall promptly refund to Borrower any Funds held by Lender. If, under paragraph 21, Lender shall acquire or sell the Property, Lender, prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs I and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the note. 4. Charges; Liens. Borrower shall pay all taxes, assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner, Borrower shall pay them on time directly to the person owed payment. Borrower shall promptly furnish to Lender all notices of amounts to be paid under this paragraph. If Borrower makes these payments directly, Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the Hen by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien; or (c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. S. Hazard or Property Insurance. Borrower shall keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender Form 3005 9/90 (page 2 of 6 pages) requires. The insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. If Borrower fails to maintain coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property in accordance with paragraph 7. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of paid premiums and renewal notices. In the event of loss, Borrower shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Borrower. Unless Lender and Borrower otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. If Borrower abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, whether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of the payments. If under paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 6. Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. Borrower shall occupy, establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender's good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate, as provided in paragraph 18, by causing the action or proceeding to be dismissed with a ruling that, in Lender's good faith determination, precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the loan application process, gave materially false or inaccurate information or statements to Lender (or failed to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lcnder does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law. 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 10. Condemnation. The proceeds of any award of claim for damages, direct or consequential, in connection with any Single Family - Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - Uniform Covenants 9/90 (page 3 of 6 pages) condemnation or other taking of any part of the Property,or for conveyance in lieu of condemnation,are hereby assigned and shall be paid to Lender. In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is equal to or gcater than the amount of the sums secured by this Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multipFed by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately,before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is less than the amount of the sums secured immediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise ptavidcs,the proceeds shall be applied to the sums secured by this Security Instrument whether or not the sums are then due. If the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an awa-d or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given. Lender is authorized to collect and apply the proceeds,at its option, either to restoration or repair of the Property or to the stems secured by this Security Instrument,whether or not then due. Unless Lender and Borrower otherwise agree in writing,any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments. 11. Borrower Not Released; Forbearance by Lender Not a Waiver. Extension of the time for payment or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest.Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. 12. Successors and Assigns Bound; joint and Several Liability; Ca-signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c)agrees that Lender and any other Borrower may agree to extend, modify,forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13.Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges, and that law is finally interpreted so that the interest or other loan charges collected or to be collected in connection with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b)any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make this refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal,the reduction will be treated as a partial prepayment without any prepayment charge under the Note. 14. Notices. Any notice to Borro•xcr provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any othc: address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severabiliry.This Security Instrument shall be governed by fedcral law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts, with applicable law, such conflict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision.To this end the provisions of this Security Instrument and the Note are declared to be severable. 16. Borrowees Copy.Borrower shall be given one conformed copy of the Note and of this Security Instrument. 17.Transfer of the Property or a Beneficial Interest In Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrow-cr is not a natural person) without Lender's prior written consent. Lender may,at its option, required immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration.The notice shall provide a period of not Ica than 30 days from the date the notice is delivered or mailed within which Borrower must pay all suns secured by this Security Instrumcnt. If Borrower fails to pay th=sc sums prior to the expiration or this period. Lender may invoke any remedies permitted by this Security Instrument without furthe:notice or demand on Borrower. M Borrower's Right to Reinstate. If Borrower meets certain conditions. Borrower shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earlier of:(a)5 days (or such other period as applicable law may Single Family —Fannie Mae/Freddie Mac UNIFORM INSTRUMENT—Unirorm Covenants 9190 (page 4 of 6 pages) specify for reinstatement) before sale of the Property pursuant to any power of sale contained in this Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys' fees; and (d) takes such action as Lender may reasonably require to assure that the lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall not apply in the case of acceleration under paragraph 17. 19. Sale of Note; Change of Loan Servicer. The Note or a partial interest in the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a change in the entity (known as the "Loan Servicer") that collects monthly payments due under the Note and this Security Instrument. There also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Borrower will be given written notice of the change in accordance with paragraph 14 above and applicable law. The notice will state the name and address of the new Loan Servicer and the address to which payments should be made. The notice will also contain any other information required by applicable law. 20. Hazardous Substances. Borrower shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous Substances on or in the Property. Borrower shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. Borrower shall promptly give Lender written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any Hazardous Substance or Environmental Law of which Borrower has actual knowledge. If Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. As used in this paragraph 20, "Hazardous Substances" are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 20, "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that relate to health, safety or environmental protection. NON-UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 21. Acceleration; Remedies. Lender shall give notice to Borrower prior to acceleration following Borrower's breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under paragraph 17 unless applicable law provides otherwise). The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The notice shall further inform Borrower of the right to reinstate after acceleration and the right to bring a court action to assert the non-e..stence of a default or any other defense of Borrower to acceleration and sale. If the default is not cured on or before the date specified in the notice,Lender at its option, and without further demand, may invoke the power of sale, including the right to accelerate full payment of the Note, and any other remedies permitted by applicable law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies prodded in this paragraph 21, including, but not limited to, reasonable attorneys' fees and costs of title evidence. If Lender invokes the power of sale, Lender shall execute or cause Trustee to execute a written notice of the occurrence of an event of default and of Lender's election to cause the Property to be sold. Trustee shall cause this notice to be recorded in each county in which any part of the Property is located. Lender or Trustee shall mail copies of the notice as prescribed by applicable law to Borrower and to the persons prescribed by applicable law. Trustee shall give public notice of sale to the persons and in the manner prescribed by applicable law. After the time required by applicable law, Trustee, without demand on Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcels and in any order Trustee determines. Trustee may postpone sale of any parcel of the Property by public announcement at the time and place of any previously scheduled sale. Lender or its designee may purchase the Property at any sale. Trustee shall deliver to the purchaser Trustee's deed conveying the Property without any covenant or warranty, expressed or implied. The recitals in the Trustee's deed shall be prima facie evidence of the truth of the statements made therein. Trustee shall apply the proceeds of the sale in the following order. (a) to all expenses of the sale, including, but'not limited to, reasonable Trustee's and attorneys' fees; (b) to all sums secured by this Security Instnunent; and (c) any excess to the person or persons legally entitled to it. 22. Reconveyance. Upon payment of all sums secured by this Security Instrument, Lender shall request Trustee to reconvey the Property and shall surrender this Security Instrument and all notes evidencing debt secured by this Security Instrument to Trustee. Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled to it. Such person or persons shall pay any recordation costs. Form 3005 9/90 (page 5 of 6 pages) 23. Substitute Trustee. Lender at its option, may from time to time remove Trustee and appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by Lender and recorded in the office of the Recorder of the county in which the Property is located. The instrument shall contain the name of the original Lender. Trustee and Borrower, the book and page where this Security Instrument is recorded and the name and address of the successor trustee. Without conveyance of the Property. the successor trustee shall succeed to all the title, powers and duties conferred upon the Trustee herein and by applicable law. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution. 24. Request for Notices. Borrcwtr requests that copies of the notices of default and sale be sent to Borrowers address wh:ch is the Property Address. 25. Statement of Obligation Fee. Lender may collect a fee not to exceed the maximum amount permitted by law for furaishing the statement of obligation as provided by Section 2943 of the Civil Code of California. 26. Riders to this Security InsVurnent. If one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenants and agreements of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the rider(s) were a part of this Security Instrument. [Check applicable box(es)] []Adjustable Rate Rider ® Condominium Rider Q 1-4 Family Rider Q Graduated Payment Rider Planned Unit Development Rider 0 Biweekly Payment Rider Balloon Rider Q Rate Improvement Rider Q Second Home Rider Otber(s) Ispecify] BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and in any rider(s) executed by Borrower and recorded with it. Witness: Witness: -� (Seal) (Seal) E WARD G. PELTIER -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower State of California ) County of CRANM ) On JULY 221 1996 before me. LINDA J. CAMPBML personally appeared EDWARD G. PELTIER personally known to me (or proved to me on the basis of satisfactory evidence)to be the person(s)whose name(s) islare sub!cribed to the within instrument and acknowledged to me that helshehbeyexecuted the same in bis/berhbeir authorized capacity(ies), and that by hislherhheir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s)acted, executed the instrument. WITNESS&DM ad and official seal `-�` LINDA I CAMPBELL r c COMMA.# 1045344 Ca Signat .e tSJ o•" ..aYpTARY PUBLIC•CALFORNtA _ � � '1 ORANGE COUNTY .-. J. ``ti.:. W Comm Exa+h DEC.20.'W6 REQUEST FOR RECONVEYANCE TO TRUSTEE: The undersigned is the bolder of the note or notes secured by ibis Deed of Trust. Said note or notes, together with all other indebtedness secured by this Deed of Trust, have been paid in full. You are hereby directed to cancel said note or notes and this Deed of Trust,which are delivered hereby,and to reconvey,without warranty.all the estate now held by you under this Deed of Trust to the person or persons legally entitled thereto. Dated: Form 3005 9190 (page 6 of 6 pages) Lcan Aunber : 24150M •• CONDOMINIUM RIDER THIS CONDOMINIUM RIDER is made this 22nd day of July 1996 . and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the 'Security Instrument*) of the same date, given by the undersigned (the "Borrower') to secure Borrower's Note to MISSION HILLS MORTGAGE CORPORATION,A CALIFORNIA CORPORATION (the 'Lender) of the same date and covering the Property described in the Security Instrument and located at: 7871 HAPPY DRIVE #201, HUITINGTON BEACH, CA 92648 [Property Address) The Property includes a unit in, together with an undivided interest in the common elements of, a condominium project known as: PACIFIC PARK VILLAS [Name of Condominium Project] (the "Condominium Project"). If the owners association or other entity which acts for the Condominium Project (the "Owners Association) holds title to the property for the benefit or use of its members or shareholders, the Property also includes Borrower's interest in the Owners Association and the uses, proceeds and benefits of Borrower's interest,. CONDOMINIUM COVENAN-M. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lender further coNenant and agree as follows: A. Condominium Obligations. Borrower shall perform all' of Borrower's obligations under the Condominium Project's Constituent Documents. The "Constituent Documents" are the: (i) Declaration or any other document which creates the Condominium Project; (ii) by-laws; (iii) code of regulations; and (iv) other equivalent documents. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to the Constituent Documents. B. Hazard Insurance.So long as the Owners Association maintains,with a generally accepted insurance carrier, a "master' or 'blanket" policy on the Condominium Project which is satisfactory to Lender and which provides insurance coverage in the amounts, for the periods, and against the hazards Lender requires, including fire and hazards included within the term "extended coverage; then: (i) Lender waives the provision in Uniform Covenant 2 for the monthly payment to Lender of'the yearly premium installments for hazard insurance on the Property; and (ii) Borrower's obligation under Uniform Covenant 5 to maintain hazard insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. Borrower shall give Lender prompt notice of any lapse in required hazard insurance coverage. In the event of a distribution of hazard insurance proceeds in lieu of restoration or repair following a loss to the Praperty, whether to the unit or to the common elements, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender for application to the sums secured by the Security Instrument,with any excess paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount and extent of coverage to Lender. MULTISTATE CON-DOMIti1L'Nt RIDER—Singlc Family—Fannie Ntee/Frodcrm Nfee L'NIFOR.1t rim VNIENT Form 3140!." ITEM 1623 (9112) (page I of 2) ■EastEm Pet-�5e D. Condemnation. The proceeds of any award or claim for damages, direct or consequential. payable to Borrower in connection with any condemnation or other taking of all or any part of the Property,whether of the unit or of the common elements, or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to the sums secured by the Security Instrument as provided in Uniform Covenant 10. E Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) the abandonment or termination of the Condominium Project, except for abandonment or termination required by law in the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (a) any amendment to any provision of the Constituent Documents if the provision is for the express benefit of Lender, (iii) termination of professional management and assumption of self-management of the Owners Association; or (iv) any action which would have the effect of rendering the public liability insurance coverage maintained by the Owners Association unacceptable to Lender. F. Remedies. If Borrower does not pay condominium dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment_ BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this Condominium Rider. (Seal) (Seal) ee - , EDWARD G. PELTIER -Borrower -Borrower (Seal) (Seal) - orrower -Borrower (page 2 of 2) 14 DECLARATION OF CONDITIONS. COVENANTS AND RESTRICTIONS FOR PROPERTY RECORDING REQUESTED BY ) Recorded in the County of Orange, California AND NNTIEN RECORDED MAIL TO: ) Cary L. Granville, C1erx/Recorder . , Illl:�1�11:1.Ial::i1111I:1::l�;illll�i��'l11,1°'!II: No Fee Redevelopment Agency of the City of ) 19960380375 08AW., 07/26/96 Huntington Beach 005 284186 16 17 COI 2000 Main Street ) D02 8 7.00 21 .00 0.00 0.00 0.00 0.00 Huntington Beach, CA. 92648 ) Attn.: Agency Clerk (Space above for Recorder's use.) THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR t� PROPERTY(the "Declaration") is made by and between S@P920VA9PQPM (the "Covenantor") cP and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public 2„1 body corporate and politic(the "Agency" or "Covenantee") as of the date set forth below. *EDWARD G. PELTIER RECITALS A. Covenantor and the Agency have entered into a certain Loan Agreement dated July 22 , 19.96 , (the "Agreement," a copy of which is on file with the Agency at its offices and is a public record) pursuant to which the Covenantor has agreed to subject certain real property(referred to in the Agreement and referred to herein as the "Property") described in the "Legal Description of the Property" (which is attached hereto as Exhibit "A" and incorporated herein by this reference) to certain covenants, conditions and restrictions. B. The Community Redevelopment Law(California Health and Safety Code § 33000 et seq.) provides that a redevelopment agency shah establish covenants running with the land in furtherance of redevelopment plans. NOW, THEREFORE, the parties hereto agree and covenant as follows: Page 1 of 9 4 ejG:4-96Agce:PELMER:Exhibitn RLS 96-463 7.10-96 r— 1. Affordabili1_Covenants. Covenantor agrees for itself, and its successors and assigns, and every successor to Covenantor's interest in the Property, or any part thereof that for thirty(30)years from the date of recording of the Deed of Trust in favor of the Agency regarding the Property(the "Expiration Date"): (a) The Property shall only be owned and occupied by Convenantor or by other persons or families of"Moderate Income." "Moderate Income" shall mean persons or families earning One Hundred Twenty Percent (1200io)or less of Orange County median income, adjusted for appropriate family size. (b) The Property shall be kept available at Affordable Housing Cost (as defined below) to the Covenantor or other persons or families of moderate income. Affordable Housing Cost shall mean, as to each person or family of low or moderate income, that purchase price which would result in monthly housing payments which do not exceed an amount under any currently prevailing conventional home mortgage lending rates applied by any reputable institutional home mortgage lender, or the lending rates of any government-subsidized or special mortgage program for which such person or family qualifies and has obtained a first trust deed loan, which do not exceed thirty-five percent(35%) of One Hundred Ten Percent (110%) of the Orange County monthly median income for those persons and families of moderate income (as determined by the United States Department of Housing and Urban Development)earning between Eighty Percent (SO%)and One Flundred Ten Percent (110%)of the Orange County monthly median income, and Thirty-Five Percent(35%) of the monthly median income of any person or family of moderate income which earns more than One Hundred Ten Percent(110%) and not more than One Hundred Twenty Percent (120%)of the Orange County median income. (c) The covenant contained in this Section 1 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 2. Transfer of Property. No transfer of the Property shall occur until the Agency determines (a)that the proposed purchaser intends to occupy the Property as the proposed purchaser's principal residence, (b)that the proposed purchaser is a person or family of moderate income and (c)that the proposed transfer occurs at an Affordable Housing Cost. The Agency shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted to the Agency such information and completed such forms as the Agency shall request to certify the proposed purchaser's intent with respect to its residency of the Property and its gross income, and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall submit to the Agency an executed disclosure statement which certifies that the purchaser is aware that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate income person or family, that the maximum permitted sales price may be less than fair market value and that the unit must be owner-occupied at all times and cannot be rented or leased. Covenantor shall cooperate with the Agency in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the Agency in connection with the Covenantoes original sale of the Affordable Unit, provided that ' mm�tkx Page 2 of 9 4`s+():4-96,%grca:PELTIER:ExhibitD RLS 96-463 711096 the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith, other than employee time dedicated to providing such assistance. THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE ROUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER, TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT ENCUMBERED BY THIS RESTRICTION. C010-INANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL TIMES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST. c� Covenantor Initials The covenant contained in this Section 2 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 3. Non-Discrimination Covenants. Covenantor covenants by and for itself, its successors and assigns, and all persons claiming under or through them that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer,use, occupancy,tenure, or enjoyment of the Property, nor shall covenantor itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the Property. Covenantor and its successors and assigns, shall refrain from restricting the rental or lease(if permitted by Covenantor) or sale of the property on the basis of race, color, religion, sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or non segregation clauses: (a) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race,color, religion, sex,marital status,national origin or ancestry in the sale, lease, sublease, transfer,use, occupancy, tenure or enjoyment of the land herein conveyed, Page 3 of 9 4 eiG:496ALV e:PELT1ER:E XhibitD R1S 96463 7,14.96 nor shall the grantee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees in the land herein conveyed. The foregoing convenants shall run with the land." (b) In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased." (c) In contracts: "There shall be no discrimination against or segregation of, any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or national origin, in the sale, lease, sublease,transfer,use, occupancy,tenure or enjoyment of the premises, nor shall the transferee himself or herself or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or vendees of the premises." Nothing in this Section 3 shall be construed to authorize the rental or lease of the Property if such rental or lease is not otherwise permitted. The convenants in this paragraph 3 shall run with the land in perpetuity. 4. Covenants Do Not Impair Lien. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. S. Covenants For Benefit of City and Aeen�c ►. All covenants without regard to technical classification or designation shall be binding,for the benefit of the Covenantee and the City of Huntington Beach(the "City") and such covenants shall run in favor of the Covenantee and the City for the entire period during which such covenants shall be in force and effect, without regard to whether the Covenantee or the City is or remains an owner of any land or interest therein to which such covenants relate. The Covenantee and the City, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at Iaw or suits in equity or other proper legal proceedings to enforce and to cure such Page 4 of 9 4's'G:4-96Agree:PELTIER:ExhibitG RLS 96-463 T 10.96 breach to which it or any other beneficiaries of these covenants may be entitled during the term specified for such covenants, except the covenants against discrimination which may be enforced at law or in equity at any time in perpetuity. IN WITNESS 1NVIIEREOF,the Covenantee and Covenantor have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized,this 22 day of Jul 19 96 . COVENANTORCA &- ev"�6q Edward G. Peltier APPROVED AS TO FOPJvl: 0&1 OA4� L'I 11CAgency Counsel Page 5 of 9 4's'•G:4-96AVrne:PEL7IER:ExhihitD RLS 96463 7A 0-96 STATE OF CALIFORNIA } ss COUNTY OF Orange ) On _ July22, 1996 ,before me, Linda J.Caa[t2g11_ T (name,title,e.g., "Jane Doc,Notary Public"), personally appeared Edwird G. Peltier (namc(s)of signer(s)), personally kro«m to be—OR-- X proved to Inc on the basis of satisfactory evidence to be the person(s) chose name(s)is/arc subscribed to the%Nithin instrument and acknowledged to me that he/shelthey executed the same in his/her/their authorized capacity(ics),and that by his/her/their signature(s) on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the instrument. �a..�3':tsmlt1 oel �L T- ,- LINDA S.CAMPBELL = • Im COMM.#1045344 Co NOTARY PLAXIC•CALWOMIA my Com E eMW s DEN.TpC ,��a� (Signal c of Notary) Linda J. gMt2ll CAPACITY CLAIMED BY-SIGNER: Individual Corporate Officer(s): Titic(s) Partncr(s): Limited General Attorney-in-Fact Trustce(s) Guardian/Conscrvator Other SIGNER IS REPRESENTING: Name of Person(s)or Entity(ics) ATTENTION NOTARY: Although the information requested below is OPTIONAL,IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTfIER DOCUMENT. THIS CERTIFICATE Title or T}pe of Document MUST BE ATTACIIED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signer(s)Other Than Named Above: Page 6 of 9 4' .G:4-96Agrcc:PELTIER:ExhihitD RLS 96463 7110.96 STATE OF CALIFORNIA } } ss COUNTY OF ) On_ ,before me, (name,title,e.g., "Jane Doe,Notary Public"), personally appeared (namc(s)of signcr(s)), personally knm,%n to be--OR-- proved to me on the basis of satisfactory evidencc to be the person(s)whose namc(s)is/arc subscribed to the i%Rhin instrument and acknowledged to me that be/sbelhev executed the same in hislhcr/their authorized capacity(ics),andpat by h.islhcr/their signaturc(s) on the instrument the person(s), or the entity upon behalf of nhich the person(s)acted,executed the instrument. Witness my hand and official seal. (Signature of Notary) CAPACITY CLAIMED BY SIGNER: Individual Corporate Officer(s): Titic(s) Partner(s): Limited/ General - Attorncy-in-Fact Trustcc(s) Guardian/Conservator Other SIGNER IS REPRESENTING: -Name of Pcrson(s)or 1j t tty(ics) ATTENTION NOTARY: Although the information requested below is OPTIONAL,IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signcr(s)Other Than Named Above: Page 7 of 9 4- Cj:4-96Agrce:PELTIER:ExhibitD Rt.S 96-463 7110.96 STATE OF CALIFORNIA ) ss COUNTY OF On before me, (name,title,e.g.,"Jane Doe,Notary Public"), personally appeared (namc(s)of signcr(s)), personally kro«-1 to be—OR— proved to me on the basis of satisfactory evidence to be the person(s)whose namc(s)islare subscribed to the%Nithin instrum/and owledged to me that hclshe/thcy executed the same in his/her/their authorized capacity(ics),�A d that by his/herltheir signaturc(s) on the instrument the person(s),or the entity upon behalf of which thdperson(s)acted,executed the instrument. Witness my hand and official seal. I (Signature of Notary) CAPACITY CLAIMED BY SIGNER: Individual Corporate OfTiccr(s): Titic(s) Partner(s): Limi/cd General Attorney-in-Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Pcrson(s)or En/ity(ics) A17ENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDYULENT ATTACIRiENT OF YETIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHE TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: f Signcr(s)Other Than Named Above: Pane 8 of 9 4`s'.G:4-96Ag=:PELTIER:ExhibilD RLS 96-463 7/10.96 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY [To Bc Ins.-rtud] PARCEL 1= , t r An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to ! all of the Common Area defined in Declaration referred to below and described in the !, Condominium Plan (Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August =l 25, 1994 as instrument No. 94-0525335 of official Records of Orange County, over Lot 1 of [ . Tract No. 14828, in the'City of Huntington Beach, County of Orange, State of California, ! as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the '- County Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon � substances, as reserved in deed recorded August 16, 2921 in Book 401, Page 356 of Deeds, and in various other deeds of record. ; PARCEL 2: ! ugit No. g consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. Parcel 31 i non-exclusive easements for access, ingress, agrees, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of official Records. i I Parcel 4s Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areasidafined, depicted and assigned on the Plan. Page 9 of 9 *e-G:4-96Agrcc:PELTIER:ExhibitD RLS 96463110:96 DEED AUTHORIZATION This is to certify that the interest in real property conveyed by the Deed of Trust dated July 22, 1996 from Edward G. Peltier to the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a government agency, is hereby accepted by the undersigned officer cr agent on behalf of Agency pursuant to authority conferred by Resolution No. 76 of the Agency adopted by its governing body on the 25th day of July, 1996 and the grantee consents to recordation thereof by its duly authorized officer. REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH Connie Brockway Clerk BY �22a Def uty Clerk- L REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH LENDING INSTRUCTIONS TO: Tiempo Escrow 19093 Beach Blvd. Huntington Beach, CA 92648 RE: Your Escrow No. 96-04 Preliminary Recitals 1. Edward G. Peltier(hereinafter sometimes referred to as"Buyer") has applied to Redevelopment Agency of the City of Huntington Beach(hereinafter sometimes referred to as "Agency" or"Lender") for a loan of$35,000 to finance the purchase of certain real property known as and located at 7871 Happy Drive, #201, Huntington Beach, California 92648, which property is hereinafter sometimes referred to as the"Subject Real Property." Lender has been advised that Buyer has opened the above-referenced escrow with you for the purpose of completing the purchase of the Subject Real Property. In order to secure performance or fulfillment of the terms and conditions of the loan for which Buyer has applied, and to facilitate the making of the loan if appropriate,Lender,reserving the right to amend or revoke these instruction, unilaterally and without prior notice, at any time, hereby authorizes and instructs you as follows: Deposit Clause 2. Lender had enclosed herewith the following: (a) A loan agreement providing the terms and conditions by which the Borrower may participate in the Lender's program to assist low or moderate income households to purchase housing which includes an equity sharing provision; (b) A promissory note providing for the repayment of the principal amount of $35,000 plus accrued interest on the unpaid balance thereof at the rate of 5 percent (5%)per annum, due upon the thirtieth anniversary of the Loan, or earlier according to the terms and conditions of the note; (c) A second deed of trust, with a rider, conveying the Subject Real Property to City of Huntington Beach in trust for the purpose of securing performance of the obligations evidenced by the above-described promissory note and certain other obligations, to be executed by Buyer for the benefit of Lender; (d) A"Declaration of Conditions, Covenants and Restrictions for Property," in which Buyer agrees that the Subject Real Property shall only be owned by Buyer or other persons or families of low or moderate income available at an affordable housing cost, as those terms are 1 4 s:0:4.96Ai;r=PEL71ERJAMins1 RLS 96-463 711"96 defined in California Health R Safety Code Sections 5093 and 50052.5, and that Buyer shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status,national origin or ancestry. Such covenants shall run with the land, in favor of the Lender and the City of Huntington Beach; (e) The disclosure statement setting forth the conditions upon which the Lender will make the Loan; (0 The notice of the Buyer's right to rescind required by the Truth-in-Lending Act; (g) An expiration of rescission period form verifying the delivery of the notice of right to rescind; and (h) The Certificate of Proposed Disclosure, which must be signed by the Buyer, delivered to the current owner for his signature, and when fully executed, copies are to be delivered to Lender, Buyer, and owner. Execution of Loan Instruments and Documents 3. When you have received these instructions, please have Buyer execute immediately all loan instruments and documents that have been deposited with you for execution by Buyer. All of the loan instruments and documents that have been deposited with you for execution by Buyer are to be executed by Buyer on the same date. Buyer must execute all loan instruments and documents that they are required to execute by signing his/her/their name(s) exactly as it appears or will appear on the grant deed that will vest title in Buyer and on the enclosed deed of trust. Insurance Requirements 4. We require, as a condition of making the loan, that you hold for delivery to us an original policy of insurance, duly issued and in effect, providing fire and extended special coverage insurance on the Subject Real Property in an amount not less than S 6,000.00 and complying with the following requirements: (a) The policy shall be issued by an insurer that is admitted to transact insurance business in California; (b) The policy shall either be a continuous policy or a policy with an unexpired term of at least one year, and the premium for the initial one year, following the making of the loan must have been paid; (c) The policy shall name Buyer as an insured and shall contain a lender's loss payable endorsement naming Lender as the second lass payee; 2 4 a:G:4.96Agroe:PELTIER:1AMinct RLS 96-463 711096 (d) The policy shall not have a deductible that exceeds$500. Requirement of Cash Downpayment 5. We require, as a condition of making the loan, that 3%of the purchase price of the Subject Real Property be paid by Buyer, in cash or its equivalent, from Buyer's own funds. Compliance With Truth-In-lending Requirements b. We require, as a condition of making the loan, that prior to the disbursement of any loan proceeds you effect compliance with the disclosure and notice requirements imposed by the Federal Truth-in-Lending Act and allow the three-day recession period required by the Truth- in-Lending Act to expire. You shall not request or disburse any loan proceeds unless and until you have complied with each of the following conditions: (a) You shall deliver one copy of the enclosed Disclosure Statement to Buyer at the time Buyer executes the enclosed promissory note, deed of trust and the other enclosed loan documents; (b) At the time a copy of the Disclosure Statement is delivered to Buyer,you shall have Buyer sign another copy of the Right to Rescind Statement, in the space provided for that purpose, to acknowledge receipt of the statement; (c) As soon as Buyer has executed the enclosed loan instruments and documents and you have delivered the copies of the Disclosure Statement and Notice of Right to Rescind and had Buyer acknowledge receipt of the statement, you shall deliver to us the copy of the Disclosure Statement and Notice of Right to Rescind and had Buyer acknowledge receipt of the statement,you shall deliver to us the copy of the Disclosure Statement that Buyer has signed and the copy of the Notice of Right to Rescind that you have retained; and (d) You shall not request or disburse the loan proceeds, or any part of them, until the fourth business day after the date on which the Disclosure Statement is delivered to Buyer or the fourth business day after the date on which the Notice of Right to Rescind is delivered to Buyer, whichever is later. Conditions Precedent to Request for Loan Funds 7. You may request us to deposit the proceeds of the loan with you when, and only when: (a) Buyer has properly executed the enclosed loan agreement promissory note without modification or deletion and you have delivered the original of the executed loan agreement to us; 3 4's:G:4-96Agrce:PE,LTIER:Lcndinst RIS 96.463 7.'10,96 (b) Buyer has properly executed the enclosed promissory note without modification or deletion and you have delivered the original of the executed loan agreement promissory note to us; (c) Buyer has properly executed the enclosed deed of trust without modification or deletion and it is in recordable form; (d) Buyer has properly executed the enclosed Declaration of Condition, Covenants, and Restrictions without modification or deletion and it is in recordable form; (e) You have delivered a true and complete copy of the executed deed of trust and Declaration of Conditions, Covenants and Restrictions to us and are authorized and prepared to record the original deed of trust when you receive and are authorized and prepared to disburse the loan proceeds; (0 You have delivered to us true and complete copies of all of the escrow instructions that you have received from Buyer and the other parties to the above escrow, including any amendments or supplemental instructions, and any assignments or demands that have been deposited with or delivered to you in connection with the escrow; (g) You have delivered to us a copy of the preliminary title report obtained for this transaction; (h) Continental Lawyers Title Company is prepared and obligated to issue in our favor, on the recordation of the enclosed deed of trust, a standard form American Land Title Association lender's policy in the amount of$35,000, insuring that title to the Subject Real Property is vested in Buyer and that the enclosed deed of trust is an encumbrance against the Subject Real Property tha,is subject and subordinate only to First Deed of Trust; (i) You have delivered to us a written confirmation verifying the commitment of Continental Lawyers Title Company to issue the policy of title insurance required by these instructions on the recordation of the enclosed deed of trust; 6) You have received in escrow, and are authorized and prepared to deliver to us on recordation of the enclosed deed of trust, an original policy of fire and extended special coverage insurance complying with the requirements set forth in 14; (k) Buyer has deposited in escrow, to be applied toward payment of the purchase price for the Subject Real Property, the sum of$8,900.00 and has otherwise complied with the dowmpayment requirements set forth in T 5; 4 4s:0:4-96Agrcc:?ELTIER:Lrndlmt Rr S 96.463 7.'10.'96 (1) You have delivered to us a true and complete copy of a written certification from a licensed structural pest control operator pursuant to Business and Professions Code Section 8519 that the residence and other improvements located on the Subject Real Property are free from evidence of active infestation or infection in the visible and accessible areas; (m) You have delivered to Buyer, in accordance with the requirements set forth in Ir 6, one copy of the enclosed Disclosure Statement and two copies of the enclosed Notice of Right to Rescind; (n) More than three full business days have elapsed since the date on which the Disclosure Statement was delivered to Buyer, and r iore than three full business days have elapsed since the date on which the Notice of Right to Rescind were delivered to Buyer; (o) You are otherwise authorized and prepared, under the instructions you have received from all parties, to close the above-referenced escrow within 24 hours after the loan proceeds are deposited with you. (p) There shall be no blanks on any documents at close of escrow. Recording of Deed of Trust 8. When all of the conditions precedent to requesting the deposit of the loan proceeds, as set forth in T17, have been performed or fulfilled and the loan proceeds have been deposited with you pursuant to your request,you are authorized and instructed to record forthwith the grant deed conveying the Subject Real Property to Buyer, our enclosed deed of trust, our enclosed Declaration of Conditions, Covenants, and Restrictions and to close the above-referenced escrow. You are instructed to record our enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions immediately after you record the grant deed conveying the Subject Real Property to Buyer. Issuance of Title Insurance Policy 9. As soon as you have recorded our enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions,you are instructed to cause to issue and to deliver to us a standard form American Land Title Association lender's title insurance policy in the amount of $35,000, insuring that title to the Subject Real Property is vested in Buyer and that the enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions are encumbrances against the Subject Real Property that is subject to and subordinate only to the First Trust Deed. Conditions Precedent to Disbursement of Loan Proceeds 10. You are authorized to disburse the loan proceeds that we deposit with you when, and only%vhen: 5 4,a:G:4-96Agnx:YELIIER:Izrk inst RLS 96A63 7110196 • (a) All of the conditions precedent to requesting the deposit of the loan proceeds, as set forth in 9,17, have been performed or fulfilled. (b) You have recorded the grant deed conveying the Subject Real Property to Buyer, the enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions,and (c) You have caused to issue and deliver a standard form American Land Title Association lender's title insurance policy that complies with the title insurance requirements set from in Ti 7(h). Requests and Notices IL The request for the loan proceeds and all other requests and notices directed to Lender shall be in writing and shall be personally delivered or sent by certified or registered mail, postage prepared, return receipt requested to Redevelopment Agency of the City of Huntington Beach, Attn: Agency Clerk, 2000 Main Street, Huntington Beach, CA 92648. Requests shall be deemed to have been made and notices shall be deemed to have been given only when they have been received by the City Clerk. Delivery of Instruments and Documents 12. All instruments and documents that are to be delivered to Lender shall be personally delivered or sent by certified or registered mail, postage prepaid, return receipt requested to Agency Clerk, Redevelopment Agency of the City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648. Instruments and documents shall be deemed to have been delivered only when they have been received by the Agency Clerk. Nonresponsibility for Escrow Fees and Charges 13. Lender shall have no responsibility or liability for any of your escrow fees or charges or for any fees, charges, costs, or expenses incurred by you or any other party to the above-referenced escrow in complying with these instructions, obtaining the loan for which Buyer has applied, or otherwise processing or closing the above-referenced escrow. Sole Instructions 14. These instructions constitute the complete escrow instructions, and the only escrow instructions, of Lender and shall revoke and supersede any prior oral or written instructions you may have received from Lender. Waiver and Deviations from Instructions 15. Lender may waive, or may permit de,%zations from, any term or condition of these instructions. However, a term or condition of these instructions can only be waived by means of a written waiver signed by an authorized officer, agent, or employee of Lender. Deviation from these instructions will only be permitted if it is specifically authorized in writing by an authorized 6 ,Vs:G*96Ai rec:PELTIER:LeMimt RIS 96-463 71L0:96 officer, agent, or employee of Lender. Any purported oral waiver, and any purported oral authorization to deviate from the terms of these instructions, shall be ineffective and invalid. Amendments and Supplemental Instructions 16. Lender shall have the right to amend or supplement these instructions at any time without prior notice and without the agreement or consent of any other party or parties. However, these instructions may only be amended, supplemented, or modified by means of a written amendment or supplement that has either been signed or approved in writing by an authorized officer, agent, or employee of Lender. No written amendment, supplement, or modification of these instructions shall be effective or valid unless and until it has been deposited with you and unless and until an authorized officer, agent, or employee of Lender has either signed it or approved it.in a signed writing that has been deposited with you. Any purported oral amendment, supplement, or modification of these instructions shall be ineffective and invalid. Revocation and Cancellation of Instructions 17. '(a) Lender shall have the right to revoke and cancel these instructions at any- time without prior notice and without the agreement or consent of any other party or parties. If Lender exercises its right to revoke and cancel these instructions, you shall return to Lender forthwith, upon demand, any and all funds, instruments, documents, and other items that Lender has deposited with you. (b) If the above-referenced escrow is canceled by any other party or parties, you shall return to Lender forthwith any and all funds, instruments, documents, and other items that Lender has deposited with you. Time Is of the Essence 18. Time is of the essence with respect to each and every provision of these instructions and in the performance, occurrence, fulfillment, or satisfaction of each and every term and condition of this escrow and these instructions. 7 4\s:G:4-96Agree:PELTIER:Lendinst RLS 96-463 7/10/96 Request for Acknowledgment of Acceptance 19. Please acknowledge your receipt and acceptance of these instructions, and your agreement to hold and dispose of any funds, instruments, documents, or items that Lender deposits with you in accordance with the terms and conditions of these instructions, by signing the acknowledgment and acceptance set forth below on the enclosed copies and returning one signed copy to Lender. Dated: 7 1, 4 LENDER LA C David Biggs Economic Development Director Redevelopment Agency of the City of tuntington Beach Acknowledgment and Acceptance by Escrow Molder Tiempo Escrow acknowledges receipt of the foregoing instructions and the items listed in Paragraph 2 of those instructions. Tiempo Escrow agrees that any funds, instruments, documents, or other items deposited by the Redevelopment Agency of the City of Huntington Beach shall be held and disposed of in accordance with the terms and conditions of the foregoing instructions and such amendments or additional instructions as may be submitted by the Redevelopment Agency of the City of Huntington Beach. ESCROW HOLDER Tierrl o Escrow B [signature] r.;MIA IT77 [typed name] Escrow Officer �tiile] 8 4`s:G:4-96Agrec:PELTIER:Lrndinst RLS%-40 7l10:'96 ® e 4 11111111IIrltlllllllrltllllllllllllllitltrllltrllltttlllltlrr111It11tt11111 U litltr1111rltltlltlt11r111tI Nlltllrlrlrr U rlrlrrtrl H r u lfrrrlrlrrrrrl� 19093 Beach Boulevard • Huntington Beach, CA 92M • (714) 843-0101 • FAX(714) 843-9949 ESCROW NO. 9412-C DATES June 18, 1996 ESCROW OrFICERs Linda J. Campbell PROPERTY ADDRESss 7871 Happy'Drive, *102, Huntington Beach, Ca 92648 AMMM113M TO XIMTRDCTIOUS Previous instructions given`you and contained in your above indicated escrow are hereby attended in the following particulars onlys The address for the subjectiproperty is hereby-amended-to-read as-follows 7971 Happy Drive #201 Huntington Beach Ca 92648 t Each of the undersigned states that he has read the foregoing amended instructions and agrees to them. The undersigned acknowledges receipt of , a 'copy ' of these amended instructions. seller's Buyers Signature signature 17 Z2 sso A`C to a ura Edward G. Peltier K,. SIGN CERTIFIED TO BE A TRUE. iAND EXAM Copy OF THE OMGINAt By { . i f tf ern O zowlbl p , .sr,rerrerrrser,rrrrr nrrsrrrrrrrrrrrsrrrsrrrrrrs,rr w rrrrrrrrrrr,rrr,errr,u a rirrrr nrrrrrr,rrrrr,rrrrr,,rrrrrrr,w r,,r,r,,,,,,,rr„r„r,,,,,,rrr„: 19093 Beach Boulevard • Huntington Beach. CA 92648 • (714) 843-0101 • FAX (714) 843-9949 XSCROV INSTRUCTIONS ESCROW OFFICER: Linda J. Cairpbell ESCROW RUNDERs 9412-C DATES June 11, 1996 CONSIDERATION BUYER HAS HANDED BROKER THE SUM OF Paid outside of Escrow $ $1,000.00 TO BE DEPOSITED IN ESCROW Deposit through Escrow 8,900.00 AND FURTHER AGREES TO RAND YOU First Trust Dead 131,000.00 Second Trust Deed 35,000.00 TOTAL CONSIDERATION $ 174,900.00 any funds and Instruments necessary for me to comply with these instructions, on or before July 19, 1996 Which you are to use provided you can have issued through Continental Lawyers Title a CLTA standard coverage policy all title insurance with the liability for the total consideration on the following described real property in the City of Huntington Beach, County of Orange, state of Californias (7871 Happy Drive, $101, Huntington Beach, Ca 92648) Exact legal description as per Exhibit •A', Attached hereto and shade a part hereof. SHOWING TITLE VES= IWz ZDWARD G. PELTIER, AX UN KA,RRIED MAX SUBJECT TO: If now of record: (1) General and special district levies not delinquent;, (2) covenants, conditions and reservations (including exceptions of oil, gas, minerals and hydrocarbons, without right of surface entry), restrictions; rights, rights of May and easements for public utilities, districts, grater compas:.ias, alley and streets; supplemental taxes; if any, assessed pursuant to the provision of chapter 498, Statutes of 1903 of the State of California. ALL ESCROW INSTRUCTIONS SET ]FORTH IH THAT AGRYMUMT OF SALE, DEPOSIT RECEIPT AHD JOrNT ESCROW INSTRUCTIONS BY AHD BETWEZ9 SASSOUNIAH CAPITAL VENTURES, INC. AND BUYER ARE HEREBY INCORPORATED IN TIIBSS ESCROW INSTRUCTIONS AS TSOUM FULLY SET FORM AGAIA ON TXPMPO ESCROW, INC. LRTTMMAD. ESCROW HOLDER IS INSTRUCTED TO COMPLY WITH AM INSTRUCTIONS PERTAINING TO RSCROFI BOLDER AND ZS NOT To DR FURTMR CONCERNED 1TZT6 OTMM CONTEIM OF SAID AGRIO�HTS. : Maka only the prorations and adjustments indicated by an -I- as of Close of 8scrow: (x) Taxes* ( ) Fire Insurance Preaium ( ) Interest an Trust Deed of Record ( ) F.B.A. Mortgage Insurance Premium, if any ( ) Impound Account, if any ( ) Rents (x) Hom,eowners Association *Be tier , and buyer are atra.re taxes axe subject to re-asaessmant, in accordance with the Statutes of the State of California. Any proration of such taxes are to be handled outside this escrow. I I, Seller, agree to the foregoing instructions and prior to the said date will hand you any funds and instruments necessary for me to comply therewith, provided you hold the funds and instruments deliverable to me: Pay any encumbrances necessary to place title in tho condition called for. - BUYER AND SELLER HAVE READ A�10 AGREE TO THE GENERAL PROVISIONS PRINTED ON ADDITIONAL. PAGES ATTACHED HERETO AND HARE, ALPA,�T HEREOF. CERTIFIED TO BE R TRUE AND EXACT COPY THE ORIGINAL HEREOF. SA SSOUNIAN CAP S, Inc. TiCMPO SCROW. INC. seller's / Buyer's ' Signature Signature SWO46 dVard G. Peltier i3 Address: Bolas Chico Street Address: 10081 Beverly Drive Huntington Beach, Ca 92649 Huntington Beach, Ca. 92646 LEGAL DESCRIPTION EXHIBIT "A" r } PARCEL 1: �+ An undivided one twenty second (11221 fee simple interest as a tenant in common in and to! all of the Common Area defined in Declaration referred to below and described in the ;; condominium Plan (-Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August ! 25, 1994 as Instrument No. 94-0525335 of official Records of Orange County, over Lot 1 off l . Tract No. 14828, in the`city of Huntington Beach, County of orange, state of California, ! as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the . county Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon ;1 - substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, I and in various other deeds of record. } PARCEL 2: unit No. 8 consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. Parcel 3s non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, conditions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. Parcel 4: t 3 Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areasidefined, depicted and assigned on the Plan. l , t . f I I �i • • 'urtnittrtrt�ninrturtttrrrriterrirnnrtrtrtttrrrtrrrrerttirtritiutetrtrtirirtrr�tttitit�utturtttrtutttttttritititttirrtnnnttrnr+riirr+n 19093 Beach Boulevard• Huntington Beach, CA 92648• (714) 843-0101 • FAX (714) 843-9949 Dates June 11, 1996 REs Escrow No. 9412-C Property Address: 7871 Sappy Drive, #101, Huntington Beach, California 92648 Page #2 IHSTr.UCTIONS= A.) At close of escrow, Escrow Holder is authorized and instructed to charge Buyer and charge Seller with their normal closing costs. D.) Parties hereto are avare that Tiesspo Escrow, Inc. may incur certain expenses during the course of processing their escrow which must be paid prior to the close of escrow. Such costs may include, but are not limited tot appraisal, credit report fees, homeowner association documents and existing lender payoff etatement fees. Escrow Holder is authorized and instructed to release funds for payment of such costs, prior to close of escrow, from funds on deposit in escrow. Parties acknowledge that said funds are NOT refundable. At close of escrow, Escrow Bolder is irrevocably authorized to charge the appropriate party for costs incurred and is released from any and all liability in connection with complying with this instruction. C.) Buyer is hereby advised that be/she will be required to file a Preliminary change of Ownership Report (form to be furnished in escrow) concurrently with the recording of the Grant Deed wherein title is conveyed to Buyer. Failure to file such form may result in the county recorder refusing to record the documents called for herein, or the assessment of a $20.00 recording surcharge fee that must be paid by buyer at time of closing. In the event buyer does not hand you the form referred above, or if the county recorder deers said form to be unacceptable as filed by the buyer, you are authorized to charge buyers account accordingly at the close of escrow. Should this form not accompany the Deed and/or be rejected at time of recording, the county tax assessor's office will attempt to contact buyer by mail, to complete another form. Failure by buyer to respond will result in"a tax lien against the property. Escrow holder is not to be held liable and/or responsible in any manner whatsoever should this occur. D.) Escrow Holder is boreby authorized and instructed to pay any messenger and/or overnight delivery fees such as, but Dot limited to, Federal Express fees at $25.00 per item or more in the eveut-of heavier packages. overseas or special deliveries from the account of the Buyer or roller (whichever is appropriate) if required to expedite the closing of this escrow, at the close of escrow. E.) Any supplemental property taxes after close of escrow, shall be the responsibility of the Duyer. F.) This transaction is contingent upon the Buyers review and approval of recorded project documents including, but not limited to CC S R's, By-Laws, Articles of Incorporation and current Budget statement. Escrow bolder shall order all necessary items from the Association for dalivery to Buyer and Buyer's lender, if applicable, and charge Seller's account for any costs imposed by the Association for delivery to same. CORSUMM.ATION OF ESCROW shall be contingent upon Buyer's written acknowledgement placed in escrow acknowledging receipt of said items. c.) Escrow bolder is instructed to pay Keystone Pacific Property Management the sum of $45.00 from seller's proceeds, this amount represents a new sale set-up fee. B.) Suyer acknowledges that the monthly association dues are currently in the amount of $275.69 per month. At the close of escrow, you authorized and instructed to debit the Buyers account, with the sun of $306.38, representing cost of the HOA Certification Fee of $35.00 and Capital contribution of $351.38. Sassout:ian a aI t rates, Inc. Byr ,j ouni iEdward G. Peltier / CERTIFIED TO BE A TRUE AND EXACT. COPY OFT 1r,JMAL HEREOF- TIVA?0 E„CRO . INC, Jjb' � 'esc�lzo ce itrttnrtrtrtrtrrtttnttrirnrrrrtretinrnrrterrtntrrt�rrrirttirttrnrrnttrrtrtitnierrtunenrrrrtrnrrnrrrnrrrerrtirrtitrtirrrrrerrtrrertrtr� 19D93 Beach Boulevard• Huntinuton Beach. CA 92648 • (714) 643-0101 • FAX (714) 643-9949 Date: June 11, 1996 Rns Escrow Igo. 9412-C Property Addresss 7871 Bappy Drive, #101, Buntington Beach, Ca 92648 Page #3 I.) prior to coumencement. of any upgrades, Buyer agrees to deposit sufficient funds in escrow, to cover any such upgrades. You will be handed additional instructions from the parties, should funds be released to seller/Contractor for costs of said upgrades, if applicable. J.) Buyer understands that in the event said upgrades are completed and Buyer cancels this escrow, buyer agrees to forfeit all of their interest in those upgrades as a part of liquidated damages. K.) Buyer acknowledges that the Seller has been notified by the Boaoeowaers Assaciation, that they bave (recently obtained a policy for Earthquake coverage and that the monthly association dues maybe increased to cover said insurance coverage. AS A MATTER OF RECORD ONLY, WITEI W131CH ESCROW BALDER NEED NOT BE FURTBER COFCERHHD, IT IS UNDEttSTOOD BY AND BETMW THE PARTIES BERETO AS ZOLLONSt 1. possession of subject property gill be given to Buyer herein at close of escrow. 2. nuyer understands that their unit is differeat trap the Kodel(s). ]guy upgrades to the subject unit, shall be handled outside of escrow, between the Buyer and Geller. 3. rurchase price includes builders allowance of $4,000.00, towards upgrades and Buyer's non-recurring closing costs. Sassouni Capitanatures* Inc. By: s Z&ard G. Peltier t CERSIFIED TO BE A TRt3E AND EXACZ COPY OF TH Rl INAL HEREOF•. T1EMP0 ESCROW G , s • • o tttrrnrnetrrtHitturtrrtuurrrrrnnuttrrrttrrtrtnetititittutrnrntrururirtrtttuftrrurttutnurrtrtiurtnrrrrurr��r�rrutiritr�urt�r, 19093 Beach Boulevard• Huntington Beach. CA 92848 • V14) 843-0101 • FAX(714) 843-9949 Escrow No. 9412-C DISCLOSURE NO. It Buyer(s) and Seller(s) hereto acknowledge that any supplemental real property tax naseasment disclosed on preliminary title report is to be charged to Seller(s) account and paid at the close of escrow. Escrow Molder is not to be concerned with any supplement tax bills disclosed after the close of escrow and is relieved of any responsibility concerning same. Any assessments not disclosed in writing prior to the close of escrow by the title company and/or assessed after the close of escrow will be adjusted between Buyer(s) and Seller(s) outside of escrow. DISCLOSURE NO. 21 Pursuant to Legislation A8512 effective 111190, also known as "GOOD FUNDS LEGISLATION" you are hereby informed as follawst DUYERS/BORROWERS Closing funds: To avoid a delay in the closing of your escrow, please deposit required closing funds in one of the following forms at least two business days prior to closingt 1.) Wire transfer of your funds into escrow trust account. Contact your escrow holder to obtain the procedure for wire transfer. . ' 2.) Cashier's check payable through a California Bank, certified checks or taller checks (also known as Bank Checks), payable through a California Bank, payable to Tiempo Escrow, Inc. Note that personal checks, corporate checks, drafts are treated as checks and are only payable and good to close your escrow when the item is made available for withdrawal by depositors under Regulation cc adopted by Federal Reserve Board of Governors. Please verify with your bank or other financial institution now so that they will be able to provide you with proper funding when escrow calls for closing funds OR make arrangements for your deposit early enough to allow for clearance of your check prior to the closing date. IT IS YOUR RESPONSIBILITY TO DO SO. Buyer/Borrower is also aware that their new loan may fund and new lender may require additional days interest to Buyer/Borrower's account, prior to close of escrow. Sellers/Borrower are aware that Legislation Ab512 may cause a delay in escrow disbursement which may result in additional interest on payoffs or interest loss on proceeds. DISCLOSURE NO, 3t SELLERS/BORROWERS CALIFORNIA REVENUE AND TAXATION CODE SECTIONS 10805 and 26131 require any Buyer of real Property to withhold California income taxes from escrow funds if ►= three of the following conditions applyt 1. The selling price is greater than 100,000.OD 2. The Seller has WCM executed a written certificate, under the penalty of perjury, certifying that the property being conveyed is the seller's principal residence OR teller is a resident of California, or if a corporation, has no permanent place of business in California. 3. The funds from the transaction are disbursed to either: A. A seller with a last known street address outside of California, OR B. A financial intermediary of the seller if the seller is a non-resident of California. The seller is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement. The withholding rate is three and one-third (3 1/3t) of the selling price. The seller may request a waiver by contacting: FRANCHISE TAX BOARD + WITHHOLD AT SOURCE UNIT P.O. BOX 651 SACRAMENTO CALIF. 95812-0651 (916) 369-4900 Tie" SsCrow, I an independent escrow cc wpany govertked by the Department of Corporations er Escrow License Sio. 963-0967. Sassougi !capital Zaltures, Inc. By:/ / 8dvrard G. Peltier CERTIFIED T4 BE A TRUE AND EXAZ COP' E ORIGINAL HERE( : 4 TIE P0 ES ROW, INC. By rtr�trrttrrrrrttirrtrtrrtrtruturttrrittrntni���tttiuturttutrurrtuttrrtirnniurtnt�rtrrttttruttrriuntttu��ir�rrtt�rrrttti��t�tt„rrr 19093 Beath Boulevard • Huntirrglon Beach. CA 92648 (714) 843.0101 FAX (714) 643-994S ACR>rIDWIT OF SALE, DEPOSIT RECEIPT AND JOINT ESCROW I1151RUClIONS�, C011D0 I I L This Agreement of Sale, Deposit Receipt and Joint Escrow Instructions (•Agreement•) is entered into between Sassounlan Capital Ventures, Inc., a California corporation ('Seller•) and VLt1v1l) 1-1"L.70CIL__ ('buyer*). Suter and Seller may hereinafter collectively be referred to as the 'Parries.• Apnli�s t 'j�'"� [ �'�f�t •GIt . •�i IC The Parties agree ae follv;+t r 1. The-Property. Upon execution of this Agreement by Buyer and acceptance hereof by Seller. Seller *hall sell and Buyer shall purchase, on the terms and conditions set forth herein. certain real property ('Property•) In the Pacific Park Villas condominium project ('Project') located In the City of lluntington Beach, County of Orange, State of California, described as Cottdolniniunr rJ3trir Ito. P' ("Unit'). and appurtenant interests on Lot 1 of Tract Ito. 14628. as shown on a Subdivision flap recorded on January 26, 1994 in Hook 706. Pages 27 to 29. Inclusive, of Maps, in the Office of the Orange County Recorder, as said Unit d other interests are shown and described in he Condominium Plan recorded on Z3 1994, as Instrument No. 94- In the Declaration of Covenants, Conditions and Restrictions and Re ervation of Easements for Pacific Park Villas ('Declaration'), recorded on '1 3 199-4 as Instrument Ito. and, if applicable. In the rocordeg Notice of Addition of Territory (*Notice') annexing the Property to the Project, all of Official Records of Orange County, Californis. 2. ure ame Price and Deposit. Concurrently With the execution of�• , this Agreement, Buyer has delivered to Seller the sum of D V A�IUf0 Dollars (3 11460 ). evidenced by check ()C ) cash f_,,,_), as a deposit to be applied toward the purchase of the Property. She 'Base Purchase Price• of the Property is described in the attached Addendum 91.0 The Dame Purchase Price may be increased prior to-the Close of Escrov if buyer requests optional Items In accordance with Addendum 03' hereto. The lase Purchase Price and the cost of all optional Items shall be the *Purchase Price• herein. Prior to the Close of Escrow end in accordance with Paragraph 21 hereof, Shyer and Seller shall complete and execute Addendum 13.' which includes a full description of the Purchase Price and the manner in which It shall be paid. 3. LLrLan�:_!nL. (a) Loan Application. If, pursuant to Addendum '19 a portion of the Purchase Price will be paid with financing proceeds, buyer shalli (1) submit. no later than five (5) calendar days after execution of this Agreement by Buyer, all information necessary for application for approval of credit ('Credit Application') by an lnstitution&I leader ('Lender') or Seller , as applicable (Lender and Seiler are referred to herein collectively or Individually, as applicable, se the 'Financing EnLlty' ) and provide Seller with a copy of the Credit Application within such fivd day. period if Seller Is not the Financing Entityl (11) within two (2) calendar dsyr after request therefor by Seller or Escrow (solder, execute all documents and forms necessary to consummate the sale in accordance with the terms hereof. including. but not limited to. credit reports, statements of identity, loan applications, employment verlflca- tions. notes, trust deeds. and loan escrow lnetructionst and (III) within thirty (30) calendar days after acceptance of this Agreement by Seller, deposit or cause to be deposited into Escrow written verification of the Financing Entity's un- conditional loan commitment to Buyer for the full amount of the sum to be financed as set forth in Addendum •1.' layer shall authorise Lender to release a CERTim TO BE: A TRUE AND EXACT r' COPY 07.� E OR!GI"lAL HEREOF. ` TIElV, 0ROW, lNr— •1• • E3y�= tjoy-00 tttT+y+rd•P 06.4]•91 + � ;. rr�rrrrrrr�rrirrrrnrrrirrrrrsrsuinrurrrrrurrnsrnrrrrrrrrrrrrrsnrrirrru+rrurrrrrrsrrsrrsruusnrrunrrrrrrrurururrrrr�rrrrurrriire�r. 19)93 Beach Boulevard • Huntington Beach. CA 92648 + (714) 843-0101 • FAX (714) 643.994 copy of the Credit Application to Seller Immediately upon request therefor by Seller. If Seller is offering financing on the sale of the Property and Buyer applies but does not qualify for such financing by Seller. Buyer shall deposit with Seller and Escrow Itolder written verification of a Lender's loan commitment to Buyer for the full amount which would have been financed by Seller wlthln thirty (3D) calendar days after Seller's notification to surer that Seller has ; declined to make said purchase financing available to Buyer. Buyer acknowledges and agrees that Buyer will be obligated to pay all costs charged by any Lender through which Buyer has requested financing even if more 'than one Lender is Involved. Buyer's application for another loan If Buyer does not qualify for a loan from Seller shall not obligate Seller to pay any Lender fees. (b) Loan_Approval/Disapproval. The requirements of this Paragraph 3 shall not be deemed satisfied If the written verification of loon commitment deposited into Escrow is In any vay conditional or Includes terms or conditions which are In any way Inconsistent with this Agreement. If (1) Buyer does not receive written notification from the financing Entity that it It willing to sake its loan within the time period specified In Paragraph 3(a) above. or (il) prior to such date. Buyer receives written ar oral notification from the Lender that Buyer is unable to qualify for such a loan or that the Lender will not Beaks the loon. (Buyer shall notify Seller thereof within three (3) days after such notification from Lender). Seller shall have the right (but not the obligation) to terminate this Agreement. If Seiler terminates this Agreement, all rights and obligations of the Parties shell be terminated, and. subject to Paragraph 9(c) below, all funds and instruments deposited by Buyer shall be returned to Buyer. The failure of Buyer to (as) properly and promptly execute and deliver the documentation required by the Flnancing Entity. (bb) notify Seller. within the time period set forth above. that Lender will not make the loan or that Buyer cannot qualify for the loan. or (cc) make the • authorizations required of Buyer hereunder. shall constitute a default under this Agreement. Subject to Paragraph 9(c) below. Seller shall thereafter be entitled to retain all amounts due at Liquidated Damages and. If Buyer has ordered optional Items, any anounte as are specified for thete optional Items. Any remaining sewn shall be returned Co Buyer. By so accepting the return of such funds. Buyer shall be deemed to have waived and released any right Buyer asay have to purchase the Property and any claim or Intsreot in the Property. This Etcrow Is contingent upon Buyer's completion and submittal of the above-referenced Items and Buyer's ability to obtain the financing described above. 4. Escrow. (a) Opening of Escrow. Immediately upon acceptance of this Agreement by Seller. escrow ('Escrow') shall be opened by Seller's depositing an executed copy of this Agreement with Tiempo Escrow. a Licensee of the California Department of Corporations, located at 19093 Bosch Boulevard. ifuntington Beach. California 9261E ('Escrow !folder•). Paragraphs 1 through 11 constitute Buyer's and Seller's instructions to Escrow [folder. Escrow Holder shall not be responsible for any part of this Agreement other than the provisions of such paragraphs. Escrow 11older't 'Central Escrow Instructions' are attached as Addendum 02' Buyer and' Seller agree that. If there is any conflict between this Agreement and Escrow Holder's 'General Escrow Inotruct.(ons.• the provisions of this Agreement shall control the resolution of such conflict. Buyer and Seller further agree that any provision regarding an award of attorneys' fees and si}nilar costs contained in Escrow folder's *Central Escrow Instructions• shall apply. If at all. only to disputes between (I) ono (or more) of the Parties and (li) Escrow Bolder, and not to disputes between the Parties themselves. Buyer shall execute and deposit such further lnstrsictions. documents and forms consistent with the terms of this Agreement and necessary to consummate the sale of the Property In accordance with the terns of this Agreement as may be required by Escrow Holder or Seller. (b) Close of Eecrow. Subject to the provisions of this Agreeei n" unless earlier terminated. Escrow shall close on the date (*Closing pat w'4iich Is the later to occur of (I) the •Sched%iled Closing Date' get forth i Ad �endum 'I.' (ii) the,-fifth (3th) business day I%FM6VY1?lNO*4"Y-VAJiAACJ COPY- OFBG-VAL tCMF. -2- ;n> ;P() E'S F 'IC6 E r a e.d s p off 111111111 III IfIsM U Bill sees I sells 11so till III It III Is M 1 pill 1111181111111111111LMt111 III Is III III I1111 till Sol tell Ito 1 oil 1M1111M1 III till M I1111.Ills 19093 Beach Boufovard • Huntington Beach. CA 92648 a (714) 843.0101 • FAX (714) $43-9949 from Seller or Escrow Bolder that the Unit it ready for occupancy, or (111) the fifth (5th) business day after Buyer receives loan approval from the Financing Entitys provided, however. that If, 'through no fault of Buyer. Escrow does not close on the Closing Date or any extenelon thereof mutually agreed to in urlting by the Parties, Buyer shall be entitled to terminate this Agreement, cancel Escrow and, subject to Paragraph 9(c) below, within fifteen (15) calendar days after written notice of such termination and cancellation is delivered to Seller and Escrow Holder. receive a refund of all amounts deposited into Escrow. Buyer agreee to execute and deposit into Escrow all documents as required by the Financing Entity, Escrow Bolder, and Seiler and to deposit Into Escrow the balance of funds needed to close this Escrow (exclusive of any financing to be obtained by Buyer) no later than two (2) business days prior to the Closing Date. If as a result of a default hersunder by Buyer. Escrow is not in a position to close on the Closing Date, Seller shall at its tole and exclusive option (without any obligation) be entitled to (I) terminate this Agreement in accordance with Paragraph 9 hereof, or (ii) extend the Closing Date to a date selected by Seller In which case Buyer shall pay to Seller, in advance upon Seller agvesing to such- extension, an amount (*Extension Payment•) equal to Seller's cost of carrying the Property for the period of time commencing on the initial Closing Date and expiring on the date to which Seller extends the Closing Date. Nothing set torch herein shall be deemed or construed so as to obligate Seller to extend the Closing Date. Any such Extension Payment made by Buyer shall not be applicable to the Purchase Price and shall be consideration to Seller as and for Seller's agreement to extend the Closing Date. Seller's sole remedy In the event of Buyer's refusal or failure to pay such Extension Payment shell be termination of this Agreement in accordance with paragraph 9 hereof. The date of recordation of the deed to the Property shall be deemed to be the date of 'Close of Escrow% At Close of Escrow, Seller @hall provide Buyer with either a CLTA standard coverage or an ALTA with regional exceptions title Insurance policy insuring title vested- in Buyer in the condition described in Paragraph 5 below with a liability equal to the Purchase Price. If Seller it providing financing in connection with Buyer's purchase of the Property, the CLTA policy shall be a joint protection policy insuring the priority of Buyer's purchase money trust deed to Seller. unless Seller requests Escrow 11older to obtain an ALTA Lender's policy. 5. Exceptions to Title. Title to the Property is to be conveyed to Buyer by grant deed, subject to the followings (a) Taxes. All totes and assessments constituting a lien not then delinquent including. but not limited to. the lien of any supplemental taxes levied after the Close of Escrow. Taxes on the Property shall be prorated between Buyer and Seller based upon the most recently available tax bill. Buyer acknowledges and agrees that until the Orange County Assessor &estates the Property separately from all of the condominiums constructed in the Project, all real property taxes on the Property shall be prorated through Escrow based upon the most recently available unsegregated tax bill for t1ls Project and computed by multiplying the unsegregated taxes on tile Project times a fraction, whose numerator shall be one (1) and whose denominator shall be twenty-two (22). the total number of condominiums in the Project (the result of such calculation hereafter the *Unsegregated Unit Taxes'). Buyer expressly agrees that if the unsegregated Project taxes have been prepaid by -Seller. then the pro rats share of Unsegregated Unit Taxes attributable to the Property shall be prorated between Buyer and Seller, and the amounts accruing after the Close of Escrow shall be paid to Seller out of 'Buyer's closing coats. If unsegregated Project taxes have not been prepaid by Seller then the Unsegregated Unit Taxes shall be prorated between Buyer and Seller se of the Close of Escrow and the amount of such Unsegregated Unit Taxes shall be paid to the Pacific Park Villas ('Assoclatien• t as a part of the closing caste payable by Buyer and Seller. Buyer shall pay to the Association, on demand, any difference between the estimated Uneegregated Unit Taxes paid to the Association at the Close of Escrow and the actual amount of such Unsegregated Unit Taxes paid by the Atsoeistion, as further provided In the Declaration. CERTIFIED TO BE A TRUE AND EXAC-, .• Cop E ORIGINAL HEREOF. •OW, INC. i -3• . ` BY !/ dW33 f 2i117 f t}00�002t} agree. • // Ol-2S•4i srrrrttttiuurutrrrutrrutrn#t#ttututuriruirt#rtitrtrtuurrinttutter#rutrn�utrutrirrrittnrtrrutrrrrt#rtutntrtrtrrttrtntttnttrrr M93 Beach Boutevard• Huntington Beach. CA 92648• (714) 643.0101 + FAX (714) 843.994S (b) Covenants. conditions, restrictions, reservations, easements, and rights-of-way .of record. 1f any. affecting the use and occupancy of the Property including, but not limited to, all of the terms and provisions set forth In the Declaration and, if applicable. the Hotics. (c) Encumbrancss. If any. evidencing financing to be secured by Buyer. Escrow Polder is hereby authorized and instructed to follow the directions of the Financing Entity in connection with the above financing and is authorized to deliver a copy of this Agreement to the Lender. if any. (d) Reservations of oil. gee and other mineral rights. 6. Closing Cosh snd trorstlons. Buyer shall pay all normal purchaser's closing costs, including costs of credit reports. ALTA Lender's title Insurance policy, tax service, all recording costa, loan fees, Impounds as may be required by the Financing Entity. proration and advance payment of Annual Assessments payable to the Association the capital contribution described in Paragraph B(g) below, and a usual and customary Escrow fee. Seller shall pay documentary transfer fees for recordation of the deed. Real property taxes. assessments, interest on financing. and other prorstable caste shall be prorated as of the Close of Escrow based upon a thirty (30) day month (for monthly expenses) and three hundred sixty (360) day year (for yearly expenses), and using the most recent available Information. 7. Blanket Insurance. Buyer acknowledges that there is a master fire Insurance policy covering the Property. and that the premium on some is to be Included In the monthly Installments of assessments paid by Buyer to the Association. The master pollen does not Insure against loss or damage to Buyer's personal property nor Buyer's personal liability for injuries sustained within his Unit. Buyer and Seller acknowledge that Seller has prepaid the Initial premium on such master policy. Buyer and Seller agree that the portion of such premium allocated to the Property shall be prorated between Buyer and Seller as of the Close of Escrow. B. Conditions to Close of Escrow, Notwithstanding any provisions contained herein to the contrary, Escrow shall not close, title to the Property shall not be conveyed to Buyer, and, except for (I) an uncured default of Buyer. or (ii) funds released to Seller in accordance with the provisions of Paragraph 2 hereof, funds shall not be released from Escrow until all of the following conditions have been satisfied# (a) Assessment Securitl. Seller has posted all necessary cash deposits, surety bonds, letters of credit or other arrangements securing Seller's share of the maintenance and operating expenses of the Project In a fora and amount satisfactory to the California Department of Real Estate. (b) Completion -of Im oveme te. Either (i) all improvements and facilities on the Comnon Property (as deflned in the Declaration) have been completed and a ltotice ,of Completion. as defined In Section 3093 of the California Civil Code, has been recorded covering all of the foregoing Improvements and facilities on the Common Property] and the statutory period for filing mechanics' liens against the Property has expired or the Buyer has been provided a policy of title Insurance with an endorsement insuring the Buyer against unrecorded mechanics' liens (the cost of such endorsement to be paid by Seller)# ar (11) Seller has posted a bond or other security in accordance with Section 1�1016.5 of the California Business and Professions Code to assure completion of all improvements and facilities on the Common Property. (c) alanket Encumbrances. Any and all blanket encumbrances. me defined in Section 11013 of the California Business and Professions Code, encumbering the Property have been released or will be released through Escrow prior to the conveyance of title to the Property to the Buyer. CEPTIF'IEb TO BE A TRUE AND EXACT COPY HHE ORIGINAL HEREOF. TIE 0 E �f:UV., INC. dbm233j24117j00010020fagree.dep 04-25-14 • • 0 • • IIIII III II IIII Ili I I I Ili I III I till Ili 111oII H111111 off too 1141011111111111 off 11111 III 11 till off 11 III III If111I Pistil till 11 III 1i oil 1111 III IolI III till llllt 19093 Beach Boulevard a Hunlinglon Beach, CA 92648 a (714) 843.0101 a FAX (714) 843.994; (d) Subordination to Logo 1.1janaxement Document6. All mortgages and deeds of trust encumbering the Property have been and will be subordinated to the Declaration. This condition shall In no war be deemed to Include real property taxes constituting a lien not yet delinquent. (a) Statement as to Delinquent Aesesemenly. Escrow Holder has received and delivered to Buyer a written statement from the Association as to the amount of any delinquent assessments (and Information relating to penalties. attorneys' fees, anti other charges thereon, as provided by the Declaration or the Bylaws of the Association) on the Property as of the date that the 'etatement Is signed. (f} Capital ContrIbution. If the Property is located In Fhsse 1, Selle shall have (i) dosited Into the Associstio 's account the sum of b UVMVrz{-� ep (S a.i ), which Is equal to two (2) months' Annual Assessment Installments to the Association for each unit In Phase 1, and which payment shsll• not be deemed a prepayment of assessments - but, rather, a contribution to the Initial working capital and reserves of the Association, or (11) posted a cash deposit, surety bond, letter of credit or other arrangement In a form and amount satisfactory to the California Department of Real Estate securing Seller's obligation to make such payments. (g) Reimburvement_of-CagitalContribution. If the Property Is lot ed i Ph 1. Buyer shall have deposited Into Escrow thr sum of L (S ZqO- ) , which Is equal to two (2) months' Annusi Assessment Installments to the Association. and which shall be paid through Escrow to Seller, if Seiler has previously advanced such funds to the Association in accordance with Paragraph 8(f) above. (h) jlseoclatlon Propert . The Association Property for the Phase of Development (a* that term Is defined In the Declaration) has been conveyed to the Association free of any monetary liens or encumbrances (other titan nondelinquent real property taxes and assessments). (i) City Approval. The Redevelopment Agency of this City of Huntington Beach has approved Buyer as an eligible purchaser under that certain Disposition and Development Agreement (•Development Agreement*) between Seller and said Redevelopment Agency, executed on June S. 1993. if such approval Is required under the Development Agreement. BUYER EXPRESSLY ACKNOWLEDGES THAT BUYER'S OBLIGATION TO PURCHASE THE PROPERTY IS NOT CONTINGENT UPON THE SALE OF BUYER'S CURRENT RESIDENCE. 9. Cancellation of Escrow. If this Agreement is terminated for any reason whatsoever. (a) Escrow shall be deemed automatically cancelled and the Parties shall execute any cancellation Instructions requested by Escrow holder. (b) within ten (10) days of such termination Buyer shall deliver to Seller any documents delivered by Seller to Buyer hereunder end (c) Buyer shall have no further right. title or interest in and to the Property. (a) B.ulef's RIRht _of _Cancellatioq. If. through no fault of Buyer, this Escrow Is not closed on or before one (1) year from the date of the opening of Escrow. Buyer shall have the option to terminate this Agreement. cancel Escrow, and. within fifteen (15) calendar days after written notice of such termination and cancellation Is received by Seller and Escrow Holder. receive a full refund of all amounts deposited into Escrow. BUYER ACKNOWLEDGES THAT. PRIOR TO 111E CLOSE Of ESCROW, SELLER HAY IW(E CERTAIN CHANGES III THE LEGAL M11ACBMIT DOCUl1ENTS DESCRIBED BELOW AND CHANGES IN THE OVERALL DEVELOME11T OF THE PROJECT. OR CHANGE THE HANNER OR CONTENT OF THE OFFERING OF RESIDENCES III THE PROJECT. IF PRIOR TO THE CLOSE OF ESCROW ANY SUCH CHANCES OCCUR. SELLER HILL PROVIDE BUYER WITH WRITTEN NOTICE OF SAME. AND BUYER AGREES THAT ITS SOLE R MEDY AT THAT TIME WILL BE TO TERMINATE 711IS AGREEMENT, REQUEST CANCELLATIOR Of ESCROW. AND RECEIVE A FULL REFUND OF ALL AMOUNTS DEPOSITED HEREUNDER. . CEI?I -IEDTO BE A TRUE AND EXACT COPY OFin' ' RICA AL HEREOF. TIE�!7 I-C)�OOOf0040fsgras.dap E~ Oi-2S-9i / O . I / . ToRRE • rrrrrrrrrrtruurrrrrutr�trur�rruurruui�uruirtnrn�uturutntrittrrttrttnrtrttrrntntrrrtrtinnrrrrrrrnrrrrrnirrrrrrrrrrrti+rrrrrrrr. 11093 Beach Boulevard + Hunlinglon Beach. CA 92648• (714) 843-0101 • FAX (714) 843-9949 (b) Seller's Right of Cancella&lo6. Notwithstanding anything contained herein to the contrary, Including any general instructions hereto, if after submitting all documentation required pursuant to Paragraph 3 hereof Buyer does not secure the loan commitment and approvals described above and deposit written verification of the commitment and approval into Escrow within the time specified herein. Seller may, at its election. terminate this Agreement and, subject to paragraph 9(c) below. all funds In Escrow shall be released to Buyerl provided however that if Buyer does not obtain Loan Approval because of Buyer's failure to sell Buyer's current residence such failure by Buyer shall be considered a default hereunder and Seiler shalt be entitled to proceed in accordance with Paragraph 11. Buyer and Seller agree to execute appropriate mutual Instructions to Escrow Bolder In order to Implement the provisions of this Paragraph 9. (c) Third_Jarly Charges. If this Agreement is terminated or Escrow cancelled for any reason other than pursuant to Paragraph 9(a) above or as a result of Seller's default, then Third Party Charges Incurred pursuant to Addendum 010 shall be paid from Buyer's funds. If this Agreement is terminated or Escrow cancelled pursuant to Paragraph P(s) above or as a result of Seller's default, then all Third Party Charges Incurred pursuant to Addendum 81' shall be paid by Seller, and all of Buyer's funds, Including amounts advanced for Third Party Charges, shall be refunded to Buyer. 10. a e,Atloclatlon. The Association has been established for the purpose of preserving, operating. and sulntaining certain Common property (as defined In the Declaration). Buyer hereby agrees to become a member of the Association and accepts and shall abide by the terms and condition# of the Declaration, the Articles of Incorporation, and the Bylaws of the Association, and all agreements entered into by the Association. Buyer further acknowledgei that the Property is subject to Annual Assessments parable to the Association at the current monthly rate set forth in Addendum No. 810. From buyer'e funds deposited into Escrow, Escrow Bolder is hereby instructed to pay to the Association a proration of the Annual Assessment installments due for the month In Which Escrow is closed, from the Close of Escrow to the first day of the following month (if Annual Assessments have commenced prior to the Close of Escrow) and the following month'@ Annual Asee@sment installment in advance. *** 11. DA?IAGFS IF BUYER DEFAULTS. IF BUYER DEFAULTS UNDER ANY TERMS OR PROVISIONS OF 7111S AGREEMENT, SELLER SHALL BE RELEASED FROM ITS 0 ATIOII TO SELL THE PROPERTY TO BUYER, AND SELLER MAY PURSUE ANY REMEDY A Id OR Ill EQUITY THAT IT HAY RAVE AGAINST BUYER ON ACCOUNT OF rS.l1,CH DEFAULT; PRO ED. VVEVER. THAT BY PLACING THEIR INITIALS HERE. BUYER AND SELLER EE TIIATr (a) IF THERE IS A DEFAULT OR BREACH OF THIS AGREEMENT BY BUYER, SELLER WILL BE DAMAGED AND HILL BE ENTITLED TO C011PENSATION FOR THESE DAMAGES, BUT SUCH DAMAGES WILL BE EXTREMELY DIFFICULT AND IMPRACTICAL TO ASCERTAIN FOR THE FOLLOWIHC REASONSr (i) THE DAMAGES TO WIIICiI SELLER WILL BE ENTITLED IN A COURT OF LAW WILL BE BASED ON THE DIFFERENCE BEIUEEN THE ACTUAL VALUE OF THE PROPERTY AT THE TIME SET FOR THE CLOSE OF ESCROW AIID THE PURCHASE PRICE FOR THE PROPERTY AS SET FORTH IN THIS AGREEMENT, WHICH DIFFERENCE MUST BE BASED ON OPIVIONS OF VALUE OF THE PROPERTY WHICH CAN VARY IN SIGNIFICANT AMOUIITSI ARD (Ii) IT IS IMPOSSIBLE TO PREDICT, AS OF THE DATE 011t-11ICH THIS AGREEMENT IS ENTERED INTO, WIIETIIER THE VALUE OF THE PROPERTY WILL. INCREASE OR DECREASE AS OF THE DATE SET FOR T11E CLOSE OF ESCROW, AND BUYER DESIRES TO LIMIT THE A?IOUNT OF DAMACES FOR WHICH BUYER HIGHT BE LIABLE SHOULD BUYER BREACH THIS AGREEMENT. III ADDITION. BOTH BUYER AND SELLER WISH TO AVOID THE COSTS AND LENGTHY DELAYS WHICH WOULD RESULT IF THE SELLER FILED A LAWSUIT TO COLLECT ITS DAMAGES FOR BREACH OF THIS AGREEMENT. THEREFORE IN THE EVENT OF A DEFAULT OR BREACH OF TI[IS 'AGRE:EIIEHT BY BUYER. SELLER HAY INSTRUCT ESCROV HOLDER, AS HORS PARTICULARLY SET FORTH BELOW. *** o er Paragraph 11 to be reproduced In ten point bold type or contrasting red print of at least eight point I�01&BE R'TRUE AMID LXCI •b- J TIE ORIGINAL H�pF. TI£s ^.TOVI. INC. � d 1��1171000/oo�olaarea.dsp FV 04-25•94 ofII off 1I$$Iloilo11111111111141111111111111111lI III I fill III 11111 M 11 111111111118111111111 Iloilo 11111/11111111111111 Bill IIIIIIIIII oil 111110I11 loll Is, 19093 Beach Boulevard • Huntington Beach, CA 92648 ® (714) 843-0101 ® FAX (714) 843-994E TO RETAIN OUT OF BUYER'S DEPOSIT AN AMOUNT EQUAL TO THREE PERCENT (31) OF THE TOTAL PURCHASE PRICE OF THE PROPERTY OR SUCH GREATER AMOUNT AS IS CONSISTENT WITH SECTION 1675(d) OF THE CALIFORNIA CIVIL CODE (BUT IN NO EVENT SHALL THIS AMOUNT EXCEED BUYER'S DEPOSITS HEREUNDER) WHICH AMOUNT SHALL BE DEEMED TO CONSTITUTE A REASONABLE ESTIMATE OF SELLER'S DAMAGES UNDER THE PROVISIONS OF SECTION 1671 ET SEQ.. OF THE CALIFORNIA CIVIL CODE, AND SHALL BE DEEMED LIQUIDATED DAMAGES ( -LIQUIDATED DAMAGES-) . THE LIQUIDATED DAMAGES SHALL CONSTITUTE SELLER'S SOLE AND EXCLUSIVE REMEDY IN THE EVENT OF BUYER'S DEFAULT. (b) LIQUIDATED DAMAGES SHALL BE REMITTED TO SELLER IN ACCORDANCE WITH THE FOLLOWING PROCEDURESI (i) SELLER SHALL GIVE WRITTEN NOTICE TO ESCROW HOLDER AND TO BUYER, BY REGISTERED OR CERTIFIED MAIL, OF SELLER'S DETERMINATION THAT BUYER IS IN DEFAULT HEREUNDER, AND DEMANDING THAT ESCROW HOLDER REMIT THE LIQUIDATED DAMAGES TO SELLER. UNLESS WITHIN TWENTY (20) DAYS AFTER BUYER RECEIVES SUCH NOTICE OF SELLER'S DEMAND, BUYER INSTRUCTS ESCROW HOLDER IN WRITING NOT TO REMIT SUCH FUNDS TO SELLER ('OBJECTION NOTICE' ) , ESCROW HOLDER SHALL RELEASE TO SELLER SUCH LIQUIDATED DAMAGES, AND REMIT THE BALANCE OF THE FUNDS IN ESCROW, IF ANY, TO BUYER. (ii) UPON RECEIPT OF THE OBJECTION NOTICE, WHICH MUST INCLUDE A RENUNCIATION OF ANY INTEREST IN ACQUIRING THE PROPERTY AND A RELEASE OF SELLER FROM ANY OBLIGATION TO SELL OR LEASE THE PROPERTY TO BUYER. ESCROW HOLDER SHALL IMMEDIATELY NOTIFY SELLER AND THE CONTROVERSY REGARDING THE DISPOSITION OF FUNDS DEPOSITED INTO ESCROW BY BUYER SHALL BE SETTLED BY ANY COURT HAVING PROPER JURISDICTION. SELLER AGREES TO INDEMNIFY AND HOLD ESCROW HOLDER HARMLESS FROM ANY CLAIM BY BUYER ARISING OUT OF ANY DISTRIBUTION MADE BY ESCROW HOLDER IN ACCORDANCE WITH THE PROVISIONS OF THIS PARAGRAPH, AND BUYER AND SELLER EACH AGREE TO EXECUTE MUTUAL CANCELLATION INSTRUCTIONS TO IMPLEMENT THE PROVISIONS OF THIS PARAGRAPH. ' The following paragraphs represent additional agreements between Buyer and Seller only with which Escrow Holder shall have no liability, responsibility, or duty except in the event of a mutual cancellation. 12. Receipt of Documents. Buyer's execution of this Agreement constitutes his acknowledgment that he has received from Seller and read the following: (a) The Declaration referred to above (including the Articles of Incorporation and Bylaws of the Association incorporated therein), and, if appli- cable, the Notice; (b) The budget or budget fact sheet for the Association; and (c) A copy of the Final Subdivision Public Report from the State of Ca ifornia, •Department of Real Estate, on the Property, issued 199 q DRE File No. 13. Construction. To the extent the Unit ties not already been completed, Seller agrees to cause construction and completion of the Unit. furnishing all labor and material therefor, substantially in conformance with Seller's plane and specifications winch have been made available for inspection by Buyer. Seller is not constructing the Unit specifically for the Buyer,, nor to the precise specifications or design of any model (or appurtenances. if any) OERTIFIE0 TO BE A TRUE AND EXACT COPY OF THE ORIGINAL HEREO TIEMPO, S F,R�l3iT, IBC_ -7- dbm233/24111/000/0020/agree.dep 06-03-94 ---------- --------------- - ----- ------- 19090 Beach Boulevard a Huntington Beach, CA 92648 + (714) B434101 a FAX (?1d) displayed to or visited by Buyer, but Seller is constructing the Unit as part of a residential condominium project. Any model appurtenances and furnishings shown to Buyer are displayed only for illustration. The Unit will not be completed in exact accordance with any such model. Hon@ of the appurtenances and furnishings shown in any model are included in this Agreement, unless Seller agrees In writing to deliver the same as part of the Purchase Price or a@ optional Items. Seller reserves the right, at Seller's sole discretion, to substitute materials, appliances. and related items of substantially equal utility and quality (s►eeting the approval of Lender) in order to complete the Unit, BY PLACING HIS INITIALS HERE c�. , BUYER IIEREBY ACKNOWLEDGES ACID AGREES TRAT SELLER HAS MADE ABSOLUTELY NO REPRESENTATIONS OR PROHISES OF HERCIIANTABILITY, PITFESS FOR A PARTICULAR PURPOSE. gUALITY OF CONSTRUCTION, OR OTIIERUISE WITH RESPECT TO TILE SUBJECT PROPERTY. li. possession, Buyer acknowledges and agrees that Seller has not provided Buyer an exact date for occupancy of the Unit. Buyer acknowledges and • agrees that Buyer is purchasing a completed Unit and that Seller is not acting as a contractor for Buyer in the construction of the Unit. Buyer @hall acquire no right. title. or interest In or to the Property, except the correlative right and obligation to purchase the same in accordance with the term# hereof. buyer shall not be entitled to possession of the Property nor entry thereon prior to the Close of Escrow. Prior to the Close of Escrow, Buyer shall not enter Into any contract or agreement for the sale or transfer of the Property or the assignment of Buyer's interest in this Agreement. A violation of the foregoing shall constitute both a material breach of this Agreement and the failure of a condition precedent to Seller's further performance hereunder, entitling Seller. at its option. to unilaterally cancel this Agreement and proceed in accordance with Paragraph 11 hereof. 15. Notices. All notices pertaining to this Agreement shall be In writing and 'shall be delivered personally, or shall be deemed delivered two (2) • business days after they are mailed to the Parties at the addresses listed herein. with postage prepaid. by registered or certified mail, return receipt requested. ' 16. Binding Effect. This Agreement constitute@ the sole contract between the Parties regarding the purchase of the Property by Buyer. There are no collateral understandings, representations, or agreements other than those contained In this Agreement. Ito salesman. employee, agent of the Seller. or Independent broker has any authority to modify the terms hereof or to make any agreements, representations, or promises unless the same are contained herein or added by written instrument duly executed by both Buyer and Seller. Buyer is solely responsible for obtaining the financing necessary to purchase the Property. and no guarantee has been given by Seller. its agents, or sales representatives that Buyer will either qualify for or secure any loan or financing. Buyer acknowledges that neither Seller nor any sales representative. employee, or agent of Seller has made any promise. representation. or warranty whatsoever, express oz; implied, not contained herein concerning the subject matter of this Agreement, to Induce buyer to execute this Agreement. Buyer acknowledges that Buyer has not executed this Agreement In reliance upon any promise, representation, or warranty not contained herein. 17. Ksivers of Breech. The waiver by the Seller of a breach of any provision of this Agreement shall not be deemed a continuing waiver or a waiver of any subsequent breach. whether of the some or another provision of this Agreement. 18. Inspection of Unit. Buyer shall be entitled to a valk-through Inspection of the Unit. so long as Buyer requests such inspection In writing no less than three (3) business days prior to the Closing Date. At such inspection. Duper and Seller's salsa repressntatives shall prepare a written itemixed list to be signed by Buyer and Seller's @ales representativ@s ntifying items or CER"I'fFIED 0 BE A TRUE AND EXACT COPY OF HE ORIGINAL HEREOF. TIEMPO SCR01 . !NC. -a. ey dbm23312;117J00010020 ogre - ep 04-25-9� iOre C4v4.f4- i- 19093 Beach Boulevard• Huntington Beach, CA 92648• (714) 843-0101 • FAX ? =- conditions which Buyer and Seller agree ere to be completed by Seller within a reasonable period of timer provided that such items need not be completed prior to the Close of Escrow, and the fact that such items have not been completed prior to the Close of Escrow shall not entitle Buyer to extend or otherwise delay the Close of Escrow. BUYER'S FAILURE TO REQUEST OR ATTEND A WALK-THROUGH INSPECTION OF THE UNIT AS SET FORTH ABOVE SHALL BE DEEHED ACCEPTANCE OF THE CONDITION OF THE UNIT BY BUYER. 14. ua i ca lon of_Buyer. Buyer represents that Buyer is of legal age and is qualified to obtain the financing necessary to purchase the Property. 20. sulation. The Project has been insulated with the following materials which, according to the insulation munufacturer, will yield the R- Values indicated belowt OCA 0 HYPE . . ENESSS. R-VALUE Exterior Nall@ PA Tr Party Walls • $IYTT 5 if�%� � r Ceilings Roofs CQ[7L�t Buyer acknowledges that the Unit is part of a group of buildings for which compliance with energy conservation standards was made by averaging the • performance of all buildings in the group. The performance of the building iq which the Unit is located relative to the performance standard is available upon request. 21. 02tional Selections. Buyer ogress to make any color and optional Item selection# from the choices provided by Seller within five (S) calendar days following receipt of written request for such selection from Seller. Buyer's selections #hall be final. If Buyer fails to make such selections within the specified time. Seller shall have the right to make the selections. 22. Time -le-of the Essence. Buyer acknowledge# that (i) time is of the very essence in the performance of Buyer's obligations under this Agreement. and (11) any delay In Buyer's performance under this Agreement will prejudice Seller. Therefore, any failure by Buyer to perform within the specified period# will constitute a breach of this Agreement. entitling Seller to terminate this r Agreement and proceed in accordance with Paragraph 11 above. Unless otherwise provided herein, all references to 'days' shall be references to consecutive •calendar days.' 23. SeverabilitY. If any provision of this Agreement shall be determined to be invalid. illegal, or unenforceable by a court of competent Jurisdiction. the validity and enforceability of the other provisions of this Agreement shall not be affected thereby. 24. Completion. With the exception of delays caused by circumstances beyond the reasonable control of Seller, end to the extent the Unit has not already been completed. Seller shall complete the construction of the Unit no later then two (2) years after the date on which Seller accept# this Agreement. 25. addenda. All Addenda referred to herein are incorporated into this Agreement by this reference. 26. otification o Defects. If Buyer becomes aware of any structural or construction defect in the Property that Buyer feel@ may be the responsibility of Seller. -Buyer shell immediately notify Seller thereof in wri��tgging and allow Seller. in its sole discretion, to inspect the et et 0 of rTingB- ARU the duE AGI ported COPY OF E QRIGIMAL HEREOF TIEMPO RM, IKCG -y- By dbm2331241171000f0020fagree.dep " Oj•23-g4 • 'f. ' •. + r •. •7 "escaorpo COP 11111111E1111111111......E11.1.......1■11l■1..11111E1■l■1..1...1.1.11....1.■.1.111.....■............................................................ 19093 Beach Boulevard * Hunlin$ton Beach. G 92648* VM C143-0101 • FAX (714)y;.; -y -= defect. Boller shall, in its sole and absolute discretion. be entitled to cure any ouch purported defect, but shall not be obligated to do so. The duties of buyer to notify Seller of any such purported defect and to allow Seiler to Inspect the Property shall survive the Close of Escrow. Nothing set forth herein shall obligate Seller to perform any Inspection or repair nor shall this Paragraph be deemed to expand or otherwise increase Seller's legal obligations to Buyer. 27. flouilnit Agreement. Buyer acknowledges that Buyer is required to execute and record an instrument (which will run with the land and bind all successor*-in-intereat or assignees), that will ensure that all subsequent buyers and occupants of the Unit qualify as purchasere for moderate income housing. Pursuant to the Development Agreement described In Paragraph $(i) of this Agreement, prior to the conveyance of each of the •Affordable Units.' each 'Moderate Income household' purchaser of an Affordable Unit shall execute and record in the official records of Orange County. California a Declaration of Covenants. Condition& and Restrictions or elmllar agreement with the 'Agency• (*Affordable CC&R*') with respect to such Affordable Unit. The Affordable CCLRs may. at the option of the Agency, be in the form of the Affordable CCLRs attached as Exhibit G to the Declaration or such other form provided by the Agency to reflect the terms of its program of financial assistance. Buyer understands that. if purchasing an Affordable Unit and required to record the Affordable CCLRo. Buyer may only sell the Unit at an "Affordable Housing Cost' to a 'Moderate Income household.• that the maximum permitted sales price may be less than the fair market value and that the Unit must be owner-occupied at all times and cannot be rented or leased. In addition. Buyer agree* there shall be no ' discrimination against or segregation of, any persons, or group of persons on account of sex, marital status. race, color, creed, religion, national origin. or ancestry in the sale, lease. rental, sublease, transfer, use, occupancy, tenure or enjoyment of the land, nor shall the buyer or any person claiming under or through Buyer. 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, eublessees or vendees of the Unit. • EXECUTION OF THIS ACR£EHENT BY BUYER AND SELLER'S SALES REPRESEIITATIVE SHALL CONSTITUTE ONLY AN OFFER TO PURCHASE WHICH SHALL NOT BE BINDING UNLESS SELLER DELIVERS TO BUYER A COPY OF THIS ACREEMENT EXECUTED BY THE SELLER WIT11IN TEN (10) DAYS AFTER THE DATE THIS AGREEMENT IS EXECUTED BY BUYER. FAILURE OF SELLER TO SO ACCEPT SHALL AUTOMATICALLY REVOKE THIS OFFER A11D ALL FUNDS DEPOSITED BY BUYER WITH SELLER SHALL BE PROMPTLY REFUNDED TO BUYER. SELLER'S SALES REPRESENTATIVES ARE NOT AUTHORIZED TO ACCEPT THIS OFFER. RECEIPT AND DEPOSIT OF BUYER'S FUNDS SHALL NOT CONSTITUTE All ACCEPTANCE OF 7111S OFFER BY SELLER. Executed by Buyer on this�� day of 19�{: . Bbyer buyer Address Address City Yip Code City tip Code Telephone Number Telephone Number- - CERTMED:TO BE A. RUZ Ana/ .• TIECOPY OF"HE-OrZlC1iYAL HER ..� l ESCf101•f INC F, By dbm2331241171000100201agrse. ep 04-25-94 lllffllttl lff lllllff.f.lfflf.Ifflflf.e.......f.flfllflf lfflfl.l.fff.f■�.ff.flf.■..I.f L u.u....a..0 .......................0.... ... --- - ------ ------- --- - -.. .- -- --- ------ ------- ---- IDW3 Beach Boulevard •Huntington Beach, CA 92648 • (714)843•0101 • FAX (714) 043 Seller or Sales Representative must be notified of any change in address. L- Utt22 U2 ?tZ71C _ VN111111[1WX) A.{hA,. (Kanner in which title to vest] Acknowledgment of receipt Seller agrees to sell the of buyer's deposits property upon the foregoing terms and ,� conditions. bye Accepted on 1994 (Sales Representative) bAc6 cl�) _ Sassounien Capital ventures, Inc., (Sales Office Phone) a Californi■ corporation br; Sohrab Sassounian : Ites resider by v ir S&e 9,0 n Itel Secretary *Seller' Addreest 16373 Dols& Chic& Street Huntington beach, CA 92649 (MTTIFIED TO BE A TR 1' OF UE ANp ICI f� OR, HEREOF. .. VCPnyy INC. . dbmZ331241171000100201wes. e 06.03-94 0. • a 111 Igo 1111 Ito III 1 III III 11 III III III oil 111111 III 1 III 1111 III 11111Iofa111 III III 11111ttAll t oil l that @Ott..■Lttu■Ime u.t hot at Beason.■........■•.......____ -- ---- - -- ------- ... --- ---- -.. -- --- - - ----------------- - -- 19093 Beach Boulevard + Huntinglon Beach. Gl 92648 + (714) 843.0101 + FAX (714) 84-_._=_ ADDENDUM! elf TO AGREEMENT Of SALE. DEPOSIT RECEIPT U 0 CRO ff$TRUCTIONS,_,y A. SCHEDULED CL0SIN3 PAT»1 The 'Scheduled Closing Date' per Paragraph 4(b) is _ ��('_���• !^.. ]9`Lk• B. EASE PURCiIASE PRICE OF„PROPERTY, . r►-$ C. +ESTIMATED IMPOUNDS. COSTS, PREPAYABLES, CAPITAL CONTRIBUTION AND ASS C 1�]l0N DUES (ASSOCIATION DUES CURRENTLY $ PER HONTII] (-CLOSING COSTS-) .'T'$ ~/C'C L.*- D. PURCHASE DEPOSIT . . . . 6 . . . . .r'► s E. L11iANCING PROCEEDS LOAN TO BE OB A7NED by BUYEa. Approximate amount financed through loan or loans to be obtained by Buyer from third parties � . at Buyer's sole cost and expense. . . . . . . . . 0 BUYER ACKHOWLEDC ES THAT INTEREST RATES AND FEES ON _ LOANS TO FINANCE THE PURCHASE Or REAL PROPERTY � �S�C 0 l.' � r f(l) FLUCTUATE, THAT THE INTEREST RATE FOR THE LOAN HAY INCREASE OR DECREASE: PRIOR TO CLOSE OF ESCROW AND THAT BUYER WILL BE REQUIRED TO PAY THE LENDER'S PREVAILING I 11TEREST RATE. AND L0A1{ FEES AT TH8 CLOSE OF ESCROW. P. THIRD PARTY CHARGESI In accordance With Paragraph 9(c) of the Agreement. Seiler may withhold from funds deposited into Escrow by Buyer amounts payable to third parties for credit reports, escrow services, preliminary title reports, appraisals and loan processing services totalling approximately . . . . . . . . . . . . . . . S G. ADDITIONAL TERNS, IF AHY1 + Buyer's Cloaing Costs include such !tams as the cost of credit reports required by the Financing Entity, loon origination fees. title Policy charges, tax service. Escrow fees. notary fees, recording costs, insurance premiums, homeowner association fees, and espital contribution and such other costs as are necessary to close this transaction. Impound& include amounts which the Buyer agrees to deposit with the financing Entity to insure payment of future real property taxes, insurance. and other charges. QLERTIFIED TO BE A TRUE AND EXACT XMY OF THE ORIGINAL HEREOF. .. 7fEllFO E R �. INC. -1- BY— dbm213124117l000/0020/agree.dep 04-2i-94 WON uerirrrr�r:reie�eirirrnrirrie:eeieneee:eeuuereerneeereueeuuueeuuuenr:re:ernuneurneru�eeniniurrreeerreerreee�eerrrnineueer�� 19093 Beach Boulevard • Huntington Beach, CA 92648 • (714) 843-0101 • FAX (714)843-9949 Proratione include and •hall be made of current year's property taxes end : Association assessments. if any, and interest on all loans to date of transfer or loan funding. as 'applicable. The foregoing types of costs have been estimated to the beat ability of the Seller as of the date of this Agreement. Should the actual costs exceed the estimate, surer acknowledges that it is Buyer's responsibility to par any ouch excess at Close of Fstroa Dated.* L!• /G� 14r}C�• % - i , ' Datede , 19„� 'Buyer' Accepted on 19`• Bassounian Capital Ventures, Inc., a California corporation Bye Sohra e a Its presiden By: ' fa Itee ;Secretary 'Seiler• r CIrK��' t TO 1~E A.T,�U� r..1:D�EXALZI COPY(DF K OMCINAL HEREOF. TlElv'1.9 Mv'1% -MC- . .2- By dbm233/24117/000/0020/agree.dep 04-23-9i 4i --veM,• ,r• �f lc- t � p,o .* esci• a lrllrllllll Bill lllrlllllillrlllllllllllllllllllllllll11111111I11111111I1111111111111 U 11111111U llllrlllllrllllllllrlllllllrlllllllll11r111r1lllrllr� 1S093 Beach Boulevard • Hurgington Beach. CA 92648 • (714) 843.0101 • FAX (714) 843-9949 ADDENDUH 029 SO AGREEHENT OF SALE, DEPOSIT RECEIPT D jo-IMISCROW INSTRUCTIONS GENERAL C O S UC O S 5• t�l'YVY,.. A-C- (M l E �'�r C�' U cr rr/A LUtc 1I N C E. r- TZvkvj V t cC •�;��;fr_v� •�1 �C- eF rL,F ` �•11�.-�� .�_� T1 Lr- zs rr�(I (1 n C- -- 1 n r..�� u 1 F: (�. /��;r::1I rA AIV7 It P F �r, r• CERTIMED T BE A TRUE AND EXACJ COPY OF ORIGINAL HEREOF, T1 Em PO ES W. 1NG ga dbm233124117100010020/agree.dep 01-2S-94 • i. ' v. • �.. "bic' pp.,' Vern I I 0 Igo oil tt tl lt it Sill Bill too tlt lti III llllllllltlllt1Iif fill too ISMS M lllolm 1111111Ilttil1It ISO 19611It III I oil 11it111tilt M go MISS$I M M 116111111@ 19093 Beach Boulevard•Huntington Beach. CA 92648 • (714) 843.0101 • FAX (714) 843.9949 ADD£NDUH 638 TO AGREEHENT OF SALE, DEPOSIT RECEIPT AND j1Q1HT_9S9ROW IHSTRUCIIONS A, PURC1iASE EDUCE Qlp PROPEIITy r ' I. Saes Purchase Price . . . ,ems, r7'J live 2. Flooring Costal {t) Carpet-- s (iii)uood-- (iv) Resilient.- s (v) Other— • i s TOTAL FLOORING. . . . $ 3. Other Optional Rama Coati (i) S S {11i) S (iv) r S {v) ' s TOTAL OTHER OPTIONAL ITrmS . . . .. . § 4. Total purchase price (Suva of iteae (•m, 1, 2, and 3) . . . . , —4- CERTI-I�'' « '1 A TPIJE AND EXACV C�?-? �:CTr?� 0�f•' J;1C ." 11 v TiIE�il V 4 - »1- dW331241i71000100z01sgret.dep 04.25-94 ti llflllllll fill llllf11111ufff1lfufflfffffff fill Ilia]All ffefffffffff■■fJAI■f■■■ A&........A............... ....................--. 19093 Beach Boulevard •Hunfinglon Beach. CA 92648• (714) 843-0101 • FAX ('1.4) 3. +?rtiateted impound#, cost#, prepayablet, capital contribution and Assoclati u$ (Association dues are currently per anonth) ('Closing Costs•)• • • • • • • • • • • • • y �` l �•• 6. Total purchase Price, plus Closing Coots r? (Sum of Items ; and 3) • . • • S C C, r B. CASij_fAYMENTS FRCH BUYER . 7• Purchase deposit • • • • • • • • • • • • + • • • • • • • 0� r� 6. Downpayment and Closing Costs du• before •Closing Date' •�� � •' • �.C� 9. Flooring deposit (receipt of which : Is acknowledged) , '. . ' . .' . • 10. Balance of Flooring Costs (Item 2 lose Q Item 9) due before 'Closing Hate' • $ 11, Other Optional Items deposit (receipt of-uhich Is acknowledged) 12. Balance of Other Optional Item Costs (Item 3 last Item 11) due before f.- 'Closing Date' • S 23. Total :ash payment due before 'Closing/' ,A •� Date (su.•n of Items I through C. FINANCING PROCEEDS 14. LOAN TO M-OBTAINED-By jyjES. Amount financed through loan or loans to be obtained by Buyer from third parties at Buyer's sole cost and expense (Item 6 less Items 13 and 15) �-S 7 f 'ri�•� 15. F11TANCING PROVIDED_BY-M t 11. I1<_ANY. proceeds of purchase money financing to be made available by Seller to be evidenced by the Promissory Not* and Deed of Trust in favor of Seller, in the forms attached to Addendum '1' as Exhibits 'A' and 'B.' respectively. (Financing provided by Seller is contingent on approval of buyer's credit in E 7 Lr- accordance with Paragraph 3 of the Agreement. ) ...r$ -, r ='`'�•• + Buyer's Closing Costs include such Items as the cost of credit reports required by the Financing Entity. loan origination feet, title policy charges. tax service, Escrow fees, notary feel, recording costs. insurance premiums, homeowner association feet and capital contribution, and such other costs as are necessary to close this transaction. Impounds Include amounts which tits Buyer agrees to deposit with the Financing Entity to ensure payment of future real property taxes. Insurance, and other charges. Proration* include and shall be made of current Year's property taxes and homeowners Association assessments, If any. and interest an all loans to 7a Eir A 7RVE M0 FXAC I �y�y� aMMNAL HEREOF. dbm233j24117j000jO020j8gr8e.dsp . . . . . .... ......... ..... Q • f rj, c. vem .... ............................................................................................................ . - - ----------------------------------------------------- --- --- ------- - „ *D93 Beach Boulevard • Huntington Beach, fA 92648 • (714) 843-0101 • FAX '?'-`) date of transfer or loan funding; as applicable, The foregoing types of coats have been estimated to the best ability of the Seller as of the date of this Agreement. Should the actual costs exceed the estimates Buyer ' acknowledges that it is Buyer's responsibility to pay any such excess at Close of Escrow. Datede Datedo 19 "Buyers i ' Accepted on , 19,� • Sassounisn'Capital•Ventures, Inc. , ' a California corporation byt IBohrib a L Its resident Its i, Secretary - ' .,Seller* ' F7PO' D t M 1.A TRUE MtD�..1 F H ORt�-ULH�pF, d W33J2411]J000f0020112M.dep ADDITIONAL ESCROW INSTRUCTIONS AND CONDITIONS 1. You are Instructed to deposit all funds received by you with any state or national bank,stale or federal savings bank,or stale or federal savings and loan association. In a trust acYaunl In the name of escrow holder,without any 11abitity for payment Of InleresL The funds may be withdrawn by you and disbursed according to the Instructions of the partied.Al deposits made by personal check,cashler's check,certified check or deposit other than cash or wire transfer are subjed to clearance and payment by financial Insrtutlon on which drawn.All disbursements are to be made by chock of escrow holder from the trust account.Neither you nor any of your employees will Identity any payee or guarantee signatures of any person or entily at any financial Institution.Funds deposited Into escrow In Vw form of a check,draft,or similar instrument will be kenlified as collected funds when the escrow holder's financial Institution confirms that the funds are available for disbursement. 2. Your duty to act as*screw holder does not commence and escrow shall not be deeried opened until mutual escrow Instructions signed by all parties are received by you.Until mutually executed escrow Instructions are received,either party may unilaterally revoke these Instructions by written request dellv*red to you. 3. All prose ions and adjustments are lobe made oft the basis of a thirty(SO)day month unless otherwise Instructed In writing by all parties.For proration purposes,the Buyer wig be ve ownership of the real property which to the subject of this escrow for the emirs day,regardless of the hour of recording.The"close of escrow"with reference to proration,adjustments and an purposes In this escrow shall be the day the Instrurrterds of conveyance are recorded or filed with the country recorder. A. Any tunes disbursed during or on the Nose of escrow will be Issued jointly to the parties designated as payees unless you are Instructed otherwise In writing by all deskInaled Fayees.The funds representing loan and/or sale proceeds will be disbursed jo'nlly to all persons who wars the record owners of the feat property which is the subfsct of tha escrow.Alt disbursements of funds anctlor delivery of other documents or Instruments concerning this escrow will be matted to the entitled parties by regular ferslrtess mail,postage prepaid,at their r*specllve addresses shown on file.However.at your discretion,you may send funds and/or other Instruments or documents by Wiled or registered mail,federal express,messenger or facsimile machine.In which case the party for whom the delivery was made agrees to pay the costs.The provisions of this paregfapit Include,but are not Ilmlled to,requests for demand statements,requests for beneficiary statements,requests for homeowners'association statements or any other requests as you may deem necessary kr the timely closing of this escrow.You are to Instruct fits county recorder to mall recorded documents to tie entlf.ed parties at Ihsk respective addresses.You are to Instruct the title company to mall the tt'e poficy(s)to the Lender(s)or Buyers)as appropriate. 5. As soon as Is practical after receipt of these mutually executed escrow Instructions,you we to open an order with the Otte company and request a preliminary title repert or commitment concerning the subject property. S. In additi m to other costs and charges set forth In escrow instructions,Seger agrees to pay on demand,whether or not Oils escrow Noses,aft expenses and charges incurred.by trou on Seller's behalf,Including,but not,limited to,charges lor preliminary Otte reports,title eommltments,poncles of title inurence,beneficiary statements. berwficlary demands.offset statements,documentary transfer lax stamps,preparation of,notarizing and recording of documents necessary In Seller's behalf,one-half(112) of sub-escrow lee.Seller's escrow tee and other cons as charged.In addition to the other costs and charges set forth in These escrow Instructions,Buyer agrees to pay on eamand,whether or not Ibis escrow closes,all expenses and charges incur►ed by you on Buyer's behalf,Including,but not limited to,recording tees,preparation of. notarizing and tecording trust doed(s)and other documents on Buyer's behalf,new loan charges,exist"ban assumption transfer fees,one-half(112)of sub-*scrow lees, Lender's policy of title Insurance,lire Insurance premiums,Buyer's*scrow fee and other costa as charged. 7. NOTWITHSTANDING ANY PROVISIONS TO THS CONTRARY CONTAINED IN THESE ESCROW INSTRUCTIONS OR SUPPLEMENTS On AMENDMENTS.ESCROW HOLDER SPALL NOT BE RESPONSIBLE FOR THE SUFFICIENCY,VALIDITY OR CORRECTNESS OF ANY SIGNATURE OF ANY PRINCIPAL TO THIS ESCROW OR ANY THiRD PARTY i0 THIS ESCROW,NOR FOR THE SUFFICIENCY OR C onnECTNE SS AS TO FORM,MANNER OF EXECUTION OR VALIDITY OF ANY DOCUMENTS DEPOSITED iN THIS ESCROW.NOR AS TO THE IDENTITY.AUTHORITY,OR RIGHT OF ANY PERSONS EXECUTING THE SAME,EITHER AS TO DOCUMENTS OF RECORD Ott THOSE HANDLED IN THIS ESCROW SHOULD THE PARTIES DESIRE THAT YOU VERIFY THE SIGNATURES ON INSTRUCTIONS RECEIVED BY YOU. 7111-PARTypES)WITHOUT FURTHER INSTRUCTIONS AUTHORIZE THE PAYMENT OF AN ESCROW FEE COMPUTED AT TWO TIMES YOUR REGULAR ESCROW FEE AND Y+ILL DELIVER SEPAnATE WRITTEN ESCROW INSTRUCTIONS SPECIFICALLY INSTRUCTING YOU TO DO SO. B. You shr.1 not be responsible for the lollowing,,(1)the eutllclency or correctness as to form,manner of execution or validity of any documents deposited In this escrow; (2)the Identity,authority,or right of any person executing the same,either as to documerts o1 record or those handled In this escrow;or(3)the failure of any party to comply with any of the provisions of any agreement,contract or other Instrument filed or deposited In this escrow or referred to In these escrow Instrucilons.Your duties shag be imbed to thn safekeeping of money and documents received by you as escrow holder and for the disposition In compliance with the written instruction owopt*d by you In this escrow.You shall not be required to take any action regarding the collection,maturity,of apparent outlaw of any obligations deposited with you Woos otherwise Instructed ki wrlting- 9. Where the assignment of any Insurance policy Isom Senor to Buyer Is contented.Seger guarantees to you any insurance policy handed you In this escrow Is a policy in lexce,thin policy has not been hypothecated and that all necessary premiums have been paid.You are authorized to execute on behalf of the parties ssslgnments of Interest In a-y Insurance policy(other than title Insurance policies)caned for In this*screw,you are authorized to transmit for assignment any Insurance policy to One insurance agent mque sting that the insurer consent to such assignment,to request that a lose payee Clause or such other endorsements as may be required be Issued and to forward such policy to the Lenders)and entitled party(ies).You shaft not be responsible for verilttng the acceptance of the request for assignment and policy of Insurance by the Insurance company.The parties mutually agree that you will make no attempt to verity the receipt of the request for assignment by the Issuing insurance company.M penes are Pieced on notice that If the Insurance company should fall to receive the assignment.Me issuing company may deny coverage lot any lose suffered by Buyer. IT IS THE OBLIGATION OF THE INSURED OR THE INSURED'S REPRESENTATIVE 10 VERIFY THE ISSUING COMPANY'S ACCEPTANCE OF THE ASSIGNMENT OF THE POLICY. 10. You a o not lobe hold responsible In anyway whatsoever for any personal property lax which may be assessed against any former or present owner of the subject property de icribed In these escrow Instructions,mtX)w the corporation or kense tax of any corporation as a former or present owner. it. If it Is necessary,proper or convenient for the consummation of this escrow,you pro authorized to depositor have deposited funds or documents,or both.handed ym under rinse escrow Insttuctions with any duly authorized sub-escrow agent.Including,bul not limited to,any bank,poet company,Otte Insurance company,title company. savings arm'loan association,or licensed escrow scent.Subject to your order at or betote close of escrow In connection with closing this escrow.Any such deposit shag be deemed a deposit under the meaning of these escrow instructions. 12. The phrtles to this escrow have satisfied themselves outside of escrow that the haisacilon covered by this escrow Is not In violation of the Sutldivislon Map Actor any law eefiulaling land division,zoning ordinances or building restriction which may ailed the tend or Improvements that are the subject of this escrow.You,as escrow holier,are relieved of all responsibl'ity aced liability in connection with such lawn,ordinances,restrictions or regutatlons and are nol to be concerned with any of thek*nforeemenls. 13- 11 any'otm of Purchase Agreement or smandrrent or supplement(collectively"Purchase Agrsamsnt")Is deposited In this escrow,it Is understood that such document shall be eihrclive only as between the parties signing the Purchase Agreement.You,as escrow holder,are not to be concerned with the terms of any Purchase Agreement or%J are relieved of all responsibility and lability for the enforcement of Its terms.Your only duty Is to comply with the lnstnxiions set north In lie escrow Instructions.You are not responsible for Interpr*ling or acting on any provision of any Purchase Agreement on which these escrow Inalruciions may be based and you shall not rely on arty knowledge or understanding you may have of any such Purchase Agreement In asciWAfning or performing your duties as escrow holder. In connection with any ban 1ra�sactlon,you see suthorlzed to detiv*r a copy of any Purchase Agreement,supphmesl or amendment and a copy of an escrow Instructions.supplements or amendments to the Lender. 14 You a•e not to be concerned with the giving of any disclosures sequired by federal or state law,Including,but not limped to,Real Estate Settlement Procedures Act, Regulallon Z—Trulh•In-Lending,condition of the subject property or other warnings,or any other warranties,expressed or knplled. 15 You*hall not be responsible and you are released from and shall have no labli ty,obligation or responsibility with respect to withholding of hinds under 11445 of the internal Revenu*Code of 1954.as amended,commonly known as the Foreign Investment In Real Property Tax Act("FiRPTA'J or the California FIRPTA under 418". of seq.of 11%California Revenue 3 Taxation Code("CAL-FIRPTA").Advice about FiRPTA or CAL•FIRPTA its requirements,a determination whether the Seger/transferor Is a foreign person,as defined,or obtaining a nonforeign affidavit or exemption from w`thheold'•ng or other Information concerning compliance or nort-comptiance wil not be given is the parties by the escrow holder.The parties are advised to seek Independent legal.financial and tax counsel from their respective legal,financial and lax advisors. 16. You are authorized to deliver copies of all escrow Instructions,supplements and amendments,estimated and final dosing statements,preliminary Otte reports,and notices of cancellation.It any,to the real estate broker(s),real estate sales agent(s).Lender(*).Lender's sgent(s)and/or attorneys(s)for the parties,upon the parties'otal or written request.You$hall not Ihcur any labllily to the parties lot delivery of the copies. 17. You shall make no physical Inspection of the real property or personal property described In any Instrument depoahe0 In or which Is She suboo of this escrow.You have mad?no representations or warranties concerning any such real property or personal property and ate not to be Concerned with nor Debts for the condition of feat pr7p*rty of personal property. le. They artle9 suthorizad the recordallon of any Instrument delivered through this escrow N mceasary or proper few the Issuance of the required policy of title In@utonce or lot the cnosing of this escrow.Funds,instructions or Instruments rse*hnd in No ease*may be delivered to,or deposited with arty Ode Insurance company or this company to comply with the terms and conditions of INs*mow. 0. You are authorized to deduct from Seller's net p►oc*eds or Buyer's not procosds any amount which either Boller or Buyer may owe you In any other metier or lrnnsactioi.You are authorized to charge and the parties agree to pay additional*slow lees for extraordinary services riot within the range of customary escrow processing. InNudtng,but nol limited to,the verification of sltnatorles to escrow Instructions. 20. You are to use your usual document forms cr the usual forms of any Otte Insurance company or title company and In our Instructions Insert dates and terms on the Instruments fi Incomplete when executed. 21. It the date by which Buyers or Seller's performances are due shalt be other them your regular business day,such performances shalt be due on your next succeeding business day. 21. You shall conduct no pen or 1110 searc opal property regarding the sets or �,q�sp p� is escrow.Should the party(Ies)desire It at you c•xnduci a lien or tale search of rsofhel car sty,the party�(les)rgeque i ��tAMI 4ill+Hr �}(t�er,1 tw ltt*n escrow Instructions to you slung vwlih an agfeemerd to pay your addict at/ crow tee. CpF*1 OF T IGAN r 23. You shag not be responsible In y4ay whets r nw are you to be cone%ffI#dL ilh�rq r in any ban or encumbrance,whether new or of record, which mr-y seta*during the praxes n of this es:r 24. The perilea ogre*to deliver to.Instruments.escrow InvkL t;tiotes and fund req 10 s a this oscrow In accordance with its terms. I Vt. 21& you are instructed to provided title to the subject real property in the condition Identified in the escrow Instructions by the parties.You are not responsible for the contents or a-curacy of any beneficiary demands andkw beneficiary statements delivered lo you by the existing Ilenholders.you are not required to submit any such beneficiary settement entlll r beneficlary demand to the parties for Approval before the dose of escrow unless expressly instructed to do so In writing.Should the parly(les)desire to prei-epprove any such beneficiary statement andbr berefciary demand.the party(les)requesting the same shall dellwr separeN and specific wdnen escrow instructions to you. 2% You ate not b be responsible in any way whatscever nor to be concerned with the terms of any new loan or the Content of any loan documents obtained by any party In ccnnWicitt with this escrow except to order such kan documents Into the escrow flle,transmit pal loan documents to Buyer for execution and transmit the exacutad ban documents 6)Lender.The ponies understand and agree that you are not Involved nor concerned with the approval utdlbr processing of any loan or the contents end effect of ban documents prepared by a Lander. 27. The patrles agree to complete and deliver to ycu a Statetnent of Information as required by the title Insurance company or title company. 26. The pao'les expressly Indemnity and hold you harmless against third-porly claims for any We.costs or expenses where you hove acted In good lsith•with reasonable care sold prudence end/tor In compliance with these escrow Insttuctlons. 29. The pa-ties agree that you have the responsibll4les clan escrow holder only and tPe'o are no other legal relationships selabnahed In the terms and conditions of the escr,3w(nstnicllons.in connection with this escrow.(1)you shall have no duty or responslbliy of notifying any cal the parties to this escrow of any sale,resale,ban,exchange or other tranrradlon Involving any of the subject real property or personal property.(2)you then have no responsibility or duty to disclose any benefit.Including.but not Ilmitid to fi-ancial gain, realized by any person, firm or corporation Involving any of the subject real property or personal property; and (3)you shell have no responsibility or duty to disclose any profit realized tyi any person,firm or corporation Including,but not limited to,any real estate broker;real estate sales agent sndlbr a party to any other escrow.In connection therewith.although such other transaction may be handled by you in this escrow or In another escrow transaction.It however.you are Instructed In willing by any party.Lender or other entitled person to disclose any sale,resale,ban,exchange or other transaction Involving any of the subject real property or pirsionat rroperty or any profit realized by any person,firm or corporation No any parry to this escrow,you shell do so without Incurring any liability to arty party.You then not be liable for any of your acts or omission done In good faith nor for any claims.deme•rds.Issas or damages made or suffered by arty parry to this escrow,excepting such as ma-r arise through w be caused by your willful neglect or gross miscorndur,Y. 3R Your escrow holder agency she"terminate six(6)months following the date last set for dose of escrow and shall be subject to earlier termination by receipt by you of mulustly executed cancellation Instructions.It this escrow was not closed or Cancelled within the described six(6)month period•you shall have no further obligatlons as escrow holder except to dlsburoe funds and documents pursuant to written ovenyx Instructions and to Irnerplead or otherwise dispose of funds and documents in accordance with a vatldty issued and valldly served order from a court of competent jurlsdJctlon.If the cordrtions of this escrow have not been a mp"ed with at It*expiration dale In these escrow Instructions,you are Instructed to complete the conditions at the esilleat possible date,unless Buyer or Seiler haw made written demand upon you for the return or the funds andbr Instruments deposited by Buyer or Seiler andbr kw cancellation of this secrorr.Should demands be made upon you,you may withhold end slop s3 further proceedings In this"crow without liability for Interest on funds hold or for damages until mutual cancellation Instructions signed by a"parties shall have bee s depoa''.ed with you.The pnrtles,Jointly and severally,agree that If this escrow cancels or Is otherwise terminated and not closed,ftro partles shall pay for any costs and expenses which you have incurred or have become obligated for under these escrow Instructions,including,but mot limited k%attorneys'lees and reasonable escrow lees Ion the services rendered by you,the parties agree that such costs and expenses shall be paid and deposited In escrow before any cancellation or other termination of oils asercw Is effective.The parties agree that said charges low expenses,costs and We may be apportloned between Buyer and Senor In a manner which.In your sole discretion,you consider equitable.and that your decision will be binding and conclusive upon the parties.Upon receipt of mutual cancefietion Instructions or a final order or juxigment of a court of competere Jurisdiction with accompanying writs of execution,levlee or Qemishmenis.you are Instructed to dlsburse the escrow funds and Instruments in sixordarwe with such cantefiatian Instructions.orde r of judgment and accompanyIN wilt a nd Ihla escrow shall,wlthoul Whet mock:,be considered terminated end cancelled. 31. The pUlles Shan Cooperate with you In carrying out the escrow instructions they deposll with you and completing this escrow.The parties shall deposit Into escrow, upon reque-d.arty additional funds,instruments,documents,Instructions,authorizations,or other Name that are reasonably necessary to arable you to comply with dome-49 made on ycu by third parties,to secure policies of T tie Insurance,or b otherwise carry*A The forms of their Irufructlons and close this escrow,If conflicting demands or notices are made or served upon you or any controversy arises between the parties or with arty third person arising out of or relating to this escrow,you shall haw the absolute righl to withhold and stop all further proceedings its,and In performance of,this escrow until you receive written notification satisfactory to you of the settlement of the controversy by written agreement of the parties,or ty the final order or judgment of a Cecil of competent jurisdiction.AM of the parties to this escrow,jointly and severally, promise to pay promptly on demand,as well as to Indemnity you and to hold you harmless from and against all administrative gvvernmemat Inwstlgslion,audit and legal lsey 11Igatia0 and interpleader costs,damages,judSlemente,attorneys'lees,expenses,ototigations and fiabilities of every kind(collectively"costs']which in good faith you Mori Incur c-f suffer In connection with or arising out of this escrow•whether said Costs arlse during the performance of or subsequent to this escrow.directly or Indirectly, and whether at trial or on appeal.You are given a film upon an the rights,titles and hleuesls Of the ponies and an escrow papers and other property end monies deposited Inlc this"craw to"ad your rights and to Indemnity and reimburse you.It the parties do lid pay any less,costs of expenses due you under the escrow Instructions or • do lid pay lot costs and attorneys'lees Incurred in any Ntlgation or Irnferpleadei;on demand.they each ogres to pay a masanoble Jles for any anorney services which may be required to collect such fees a expenses,whether attorneys'fees are incurred before trial,at trial,or on appeal. 32. ALL NMICES,DEMANDS AND tNSTRUCTIONS MUST BE IN WnITING.No nol'ce,demand,instruction,amendment,supplement or modification of these escrow ins ructions than be of any affect in this escrow until delivered In writing to you and muterl/executed by all parties.AS SET FORTH ABOVE.YOU HAVE NO DUTY TO AND SHALL NOr VEnlFY THE SIGNATURES OF ANY RUMES On NON-PARTIES UNLESS FURTHER WRITTEN ESCROW INSTRUCTIONS TO DO SO ARE RECEIVED AND THE ADDITIONAL ESWOW FEES ARE DEPOSITED.Any purported oral instruction,amendment,supplement.modifkedw.notice of demand deposited with you by the psi Iles or oIher of them than be Ineffective and hwaild.You are to be concerned only with the directives expressly set forth In the escrow Instructions,supplements and amendments theret(X end are not to be Concerned with nor liable for hems designated es"memorsndum Items"In the escrow instructions. 3:1 These escrow instructions may be executed In counterparts,each of which shall be deemed an anginal regardless of The dole of Its executions and delivery.An such counterpars together shall Constitute the same document. 34. It any check submitted to you Is dishonored upon presenimOnt for payment,you are sthorized to nobly all parties to the within escrow,their respactrw red estate brcitorts)s•sd reap"tale agent(s)and any other person or entity you deem In your sole discretion necessary fo notify. 35. You a•e authorized to accept oral Instructions from the parties'reel estate broker($),real estate agent(s).Lenders)or Lender's agent(s)concerning the preparation of escrow Ins ructions,amendments or supptement ,However,you are not to act upon arty►Instruction to delivered until you he"received the same In wfhksg signed by on pailes to INS @$crow. 38 In these escrow Instructions,wherever the Context so requires,the masculine gender Includes the feminine andtor neuter and the singular number Includes the plural. 37. The pnnles acknowledge and understand that you,as escrow holder.are not othorized to practice the low nor do you give financiai advice.The panics are advised to seek let A and financial counsel and advice concerning the effect of these escrow Instnrctions.The parties acknowledge that no representations are mods by you about the legal stifiiclsncy,legal consequences,financla'. effects or tax consequences of the within escrow transaction. 39 'tbu ate othorized to destroy or otherwise dispose of"and an documents,papers.escrow Inarnttrlorm Correspondence and records or other material constituting or pertainlrg to this escrow aI any time after five(5)years frmh the dale of:(1)pal close of escrow;(2)the date of cancellation;or(3)the dale of the lost activity without 1a5ltlfy anC without further notice to the parties 39 The Forties signatures on stnilAscror fruit ins and k+struments pertaining to ins within escrow Indicales their uncondillonal acceptance and approval of same and you are or titled to refy on arty ,oscutlo/r►. tfH+r,jointly and save .ack sot reCelpl d a complete Dopy of the within escrow Instructions and by Our signatures set lrttr o below,acknowladQs that we hove read and understand a ogre iha as air entirety. SELLERS. CHIP M-INJPM# INC. BUYERS: BV! pMli rfD G.' TM o eF rNF A�N U�A�� NOTE Loan Number 24150995 July 22 , 1e 96 SANTA ANA CA Icityl Istatel 7871 HAPPY DRIVE #201, HUNTINGTON BEACH, CA 92648 [Property Add,eal 1. BORROWER'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $ 131, 000 .00 (this amount is called 0.principar), plus interest. to the order of the Lender. The Lender is MISSION HILLS MORTGAGE CORPORATION, A CALIFORNIA CORPORATION I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and wLa is entitled to receive payments under this Note is called the *Note Ilolder*. 2. INTEREST Interest will be charged on unpaid principal until the full amount of principal has been paid. I will pay interest at a yearly rate of 8 .000 %. The interest rate required by this Section 2 is the rate I will pay both before and after any defrtilt described in Section 6(D) of this Note. 3. PAYMENTS (A) Time and Place of Payments I will pay principal and interest by making payments every month. 1 will make my monthly payments on the ISt day of each month beginning on September 1, 1996 . I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. My monthly payments will be applied to interest before principal. If, on AUGUST 1, 2026 , I still owe amounts under this Note, I will pay those amounts in full on that date,which is called the *maturity date*. 1 will make my monthly payments nt P.O. BOX 1961 SANTA ANA, CALIFORNIA 92701 or at a different place if required by the Note Holder. (B) Amount of Monthly PaynienLs My monthly payment will be in the amount of U.S. S 961 .24 4. BORROWER'S RIGHT TO PREPAY I have the right to make payments of principal at any time before they are due. A payment of principal only is known as a "prepayment'. When 1 make a prepayment, [will tell the Note Holder in writing I am doing so. I may make it full prepayment or partial prepayments without paying any prepayment charge. The Note [folder tibia use all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a partial prepayment, there will be no cliang.es in the due date or in the amount of my monthly payment unless the Note [folder agrees in writing to those changes. s. LOAN CHARGES If a law, which applies to this loan and which sets m.lxitttunt loan charges, is finally interpreted so that the interest or other loan charges collected or to be collected in connection with this loan exceed the permitted limits, then: (1) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (ii) aay sums already collected from me which exceeded permitted limits will be refunded to me. The Note Holder may choose to make this refund by reducing the principal I owe under this Note or by making a direct payment to me. If a refund reduces principal, the reduction will be treated as a partial prepayment. 6. BORROWER'S FAILURE TO PAY AS REQUIRED (A) Late Charges for Overdue Payments If the Note ]folder has rot received the full amount or any monthly payment by the end of 15 calendar days after the date it is due, I will pay a late charge to the Note Holder. The amount of the charge will be 5 .0005E of my overdue payment of principal and interest. I will pay this late charge.promptly but only once on each late payment. (B) Default If I do not pay the full amount of each monthly payment on the date it is due, I will be in default. (C) Notice of Default If I am in default,-the Note Ilolder may send me a written notice telling the that if I do not pay the overdue amount by a certain date, the Note Holder may require me to pay immediately the full amount of principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is delivered or mailed to me. (D) No Walver By Note Holder Even If, at a time when I ant In default, the Note Holder floes not regttire tale to pity Immediately In fit]] as described above, the Note Holder will stilt have the right to do an If I nm [it default at a litter time. (E) Payment of Note !!older s Costs and Expenm i If the Note Holder has required me to pay immediately in full as described above, the Note Holder will have the right to be paid back by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law.Those expenses include, for example, reasonable attorneys fees. MULTISTATE FIXED RATE NOTE-single Family-FNIMM[L11IC UNIFORM INSTRUMENT Form 320012/83 Taswm Form 16-16(8812) ---- --- --- ---- M-vaunt VA rt,orn ` 7. GIVING OF NOTICES Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by maiing it by first class mail to me at the Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice that must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note Holder at the address stated in Section 3(A)above or a different address If I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER TII1S NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of the promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations,including the obligations of a guarantor, surety or endorser cf this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of the amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of presentment and notice of dishonor. 'Presentment' means the right to require the Note Holder to demand payment of amounts due. 'Notice of dishonor' means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE This Note is a uniform instrument with limited variatioxs in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust or Security Deed (the 'Security Instrument'), dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in this Note. That Security Instrument describes how and under what conditions I may be required to snake Immediate payment in full of all amounts I owe under this Note.Some of those conditions are described as follows: Transfer of the Property or a Beneficial Interest In Borrower. If all or any part of the Property or any interest in it is sold or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without Lender's prior written consent. Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security` Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all sums secured by this Security Instrument. If Borrower fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on Borrower. WITNESS THE HAND(S)AND SEAL(S)OF THE UNDERSIGNED. TAozp (Seal) EDWARD G. PELTIER .Borrower -Borrower (Seal) -Borrower (SCSI) -Borrower (Sign original only) '!:'esco IZO f I fill " r�g}u 9Zr r648•r(7y4),843 �r��i ' 3-9949 19093 eac o`u`ievvar • untie on Beach, ( Sassounian Capital Venture Escrow officers Linda J. Campbell property Address 7071 Happy Drive, #201 Huntington Beach, ca. 92640 REr. ao. AMOUNT 1305 Delinquent Taxes Continental 1,346.87 r C:_r=.. ;f-�:' i(' ' _ 'r;" ' . r.1;•) E?:=.ter � r 8. TV2 OF LOM '`-�x• r• .- <. .,;' ,�....-. F 7.w, r° ,.�: r r.'.ri ..�. 1.QTLiLt 2.arla!!1 1,®COIrY. OIeIRl. m S.QcOtev. nm, f'� iEAUA3rIIJW .��,x r x> } }fir} 6. inS Nui G 7. L m NulQ= 9412-C 24150995 •yY2 tz , F } t , S. 1ORT[I.HZ 17IL AMM CPM ULVeM -t @- y:;as_- 7 :g-- - o ,';-,< ,.5 {- _}n} , - -- ,y: f-4a qlY--•fib-_:v C.Ili This farm is furnished to give You a otatwreR of actual ratUameat costa. Amounts pall to and by the srttlewwrt wpat are shown. Itama arkad (p.e.e.) wars paid cutolde of elosingi they art shaft Aam tar inf®atUrAl purpoass and am not inri ad-d Sa the totals. h. NUR Q b0RAa1net R. w=or ilLMS Edward G. Peltier Sasscunian Capital. Venture 10081 Beverly Drive 16473 Bolsa Chica Street Huntington Beach, Ca. 92646 Huntington Beach, Ca 92649 r. Rim or Late 4. FFJNI TY loCATIONr mission RillsMortgage 7871Happy Drive, #201 Yvonne ELLntin#bh Beach, Ca. 92646 1403 North Tustin Avenue 4280 Santa Ana, California 92701 R. Slr1 MQM AGE" PIAM or saraSOmar 1. NRrrUOwr Dr117L TIEV0 ESCROW, n1C. 19093 , ELVD. REACH, CA 92648 07/26/96 J. SOKKaRY of RORROMZR.N TRANSACTION X. SUKNART OF SZIJ--R#S TRANSACTION 100. cages J MM"VA TWK DORKWMs 400. GROSS AMOM Ws TO X=Mte 101. cattract *ales mice 174 900.00 4ol. Contract sal« prim 174 900.00 102. sa:aaeal pfforty 402. Formal Emm 102. sr-t1smant charges to borrows (Line 1400) S6.076.54 m. 104. 404. 10s. 40s. Adjsstmeate for items paid by seller is advance ld satment■ for items paid by seller is advance 104. cif /twn/tucw to 506. cit /torn/taxse to 107. Ca.1at tares to 407. County taxes to 104. As.es.esnts • 07 26/96"08/01/96 $29.30 roe. u.e ..t. 07 26 96te 08 01 96 29.30 log. 4". lie. 41a. • 112. 412. 120. (WOW AMOU r»ere PROM b0Rs CVM $181,005.84 420. ataes kva=MR"=Uz X t $174,929.30 200. AMrRWO PAM BY OR Ix bEI&W Or SORR0 aRt 500. RE00C=0m lx l mIM DO TO SE'.=u 201. VoIxisit of earneat"y $11,088.58 Sol. mroess deposit see inatrvctians 202. Trincipal amount of now loaa(s) $131,000.00 502. s.ttlrnt ebarrs to feller (reins 1400) $1,981.07 203. 141st leans) taken subject w S01. 2Sdst Lnq lour taken *&I act to 204. 504. Payoff of first fort loan 2os. Ind T.D. City Loan $35,000.00 sos, P.yof t of w=nd tnM loan 206. SON. 207. 507. 201. 301. 201. sole ld ■stmest for items unpaid by seller Ad satmeat for items unpaid bX seller 210. VA /town taxes to Slo. city/tom tax" to 211. 0"aty taxes 07/01/96to 07/26/96 125.75 511. Count tax" 07/01/96to 07/26/96 $125.75 212. Suseewaftts to 512. Assessments to 213. $17. lid. 516. 215. 319. 216.Non:oqurr' costs $4,000.00 s16.Non recurr costs $4,000.00 211. 317. 215. Sit. 211. 511. 230. Trm►I.PXID Nr/aaR NORRamt 181 -214:33 s2o. nv=mmx-riat atnerarr v m maim $6,106.82 300. ass AT Rr1rEMENT FROMM ba NOM W. cm ja armmm TONROK wMz= 301. Cb-on amount ene from borro.er (whoa 220) $181,005.84 1101. arose ow ft eta to seller Line UOL. 174 929.30 sot. Laos sm unt /for borrower Line 220 181 214.33 $02. Lees rod.etiono in mKw*dye rali.r s 6 106.82 20:. On 4 rROK) ( X 70) NPMM $208.491 an. am I X w) l'Rml man $1681822.48 J:• COP Tl-i. . ; Es=,r Number: 9412-C :pC:; V; 00. 29M 6AUM/S11oM,6 COOMMICH based on price PAM 7704 IKM TFIM Divialne of Comolosim (Line 700) as followst 3ORROMIS SILLIMIN 701. rjm)o AT rAm AT 52rXLDWC 91aiDENT 702. 703. CismLiAsion paid at settlement 704. 000. r-Im FKMMX IN CMDO=ICN W=W" 001. Irman OcigUatlan Fee 402. Umm DI&=nt $327.56 603. AIVCMISMa Yee to 804. Credit Paport to sos. 'lax Service Fee Eislm- iMs_Lba -$84*00 so6. Processing-Fee Mission ED I s Mortgage $495.00 007. AtairListration Fee Mission Hills Mortgage . $570.00 mos. Llx d ritinq Fee Mission Hills !!2E!:RaM $325.00 tog. Wire/Flood Certif i cat,i on Fee ius-lOfl Hills 1 $100.00 sio. loan E-W64wer Origination Fee Emerald Pacific MortcEq $11965.0 011. 4pra-azal Review Fee BN Appraisal $50.00 900. rm""QUIRW BY UMM TO W PXM is WM= sci. 2atoreet ire 07/24/96 to 08 O-179-6v s 28.7100 /day $200.97 002. Pant" Iviourance Proalm for months to P03. 94s&rd Ina rows Proinime far years to 904. years to 105. 1000. P.*CSERYU DUIOOr=WrrH LINDM 1001. E.tzard inffurame Months I W month 2002. Obrtqsq* insurance, per month 2003. City property taxes rOffths par month 2004. Oynnty property taxes Month* 1 per mo&-b 1005. Lwaial "Ossaments Months I par month 1004. Months I par month 1007. Months I par month 1008. months I par month 1100. Tr=CDAM 1103. F-Pttlement or closing fee to TIE2d:1) E5C3M, INC. $491.00 no. IA= Tie In Fee i&EE2 Escrcwf Inc. $175.00 lin. e1:122M!j Mes2fT2E Fee/Fed-X Tienpo Es=cw, Ina. $45.00 1104. 1105. Descant preparation to 1109. VAary go" to Linda J. Canpbell $40.00 1107. 1108. Title 19Wureoles to Continental Lygers Title $370.00 $371.70 IWIUd*4 ab&m Itals 1109. Larder's cowers" $131,000.00 1110. CWISVID covers" $174f900.00 ini. Sub Title Fee CmUnental-LawyersTit $95.00 nn. 21]d Iban E2]Ag and End Caitinental. Lpr y.. Tit $175.00 113. Wire Fee Continental Lwwvers Tit $25.00 DOO. GMn§UGCM KBD=XW AM IRANSM C&R= 1202. 11scording goeei Dead $10.00 ; m=tqaq- $31.00 ; Asio"a $41.00 1202. CLty/Cm&fty tWetompos Deed $19T._5 _3 Ytgp $192.50 1203. state toxIstosipe I Deed 1201. "03. 2300e hMrrIONAL BZT=IDCDM CMAR= tjoi. 08/01/96 IM Dues Pacific -P-ir-k Villas Ass _$175.69� 1302. Post inspection to 1301. Capital on P IC Par V Ass 13o4._13A.Set Up Fee Keysb:xm Pacific -1 645.00 1305. See Attached --I E346.87 S6,076:54 981-0171 IL wait��i CC The item indicated by *'POC have been included at the dirwtim of-the lender for disclosure purposes only. The esami holder/settlement agent hereiii- has no knowledge of these =��S. mcept as provided by the lender. They have not been. and marmot be verified , the payee, mar actual payment and no liability is asmmed by the closing agent as to the validity and/or the suffiUency thereof. IawyersTide oo �� ,,. Insurance Cofporaflon NATIONAL HEADQUARTIMS, RtcH�ro>`u rrnctNtA 1992 ALTA Loan Policy Number Loan Policy 135.61. 208-222 SUB:ECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, LAWYERS TITLE INSURANCE CORPORATION, a Virginia corporation,herein called the Company, insures,as of Date of Policy shown in Schedule A.against loss or damage;rent 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 bcin } a � r� g�•ested 'arising from an improvement or work related to the land which of ter than as stated therein; is contracted for or commenced prior to Date of Policy; or 2. Ary defect in or lien or encumbrance on the title; — 1 `,--7 i' '(b) aiising from an improvement or Work related to the land which � 3. Urmarkerability of the title; w 'y:am.'J. • is contracted for or commenced subsequent to Date of Policy and 4. U:k of a right of access to and from the land; i = which is financed in whole or in part by proceeds of the 5. The invalidity or uncnforceability of the lien of the insured mortgage indebtedness secured by the insured mortgage which at Date of upon the title; 4 Icy , • �: policy the insured has advanced or is obligated to advance; 6. Tt..priority of any lien or encumbrance over the lien of the to ure_d i— & Theimalidiiy or uncnforceability of any assignment of the insured ma:rtgage; mortgage, provided the assignment is shown in Schedule A. or the Z Lack of priority of the lien of the insured mortgage over any statutory, ' failure of the assignment shown in Schedule A to vest title to the insured lien for services, labor or material: 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 tmirtgage as insured, but only to the extent provided in the Conditions and Stipulations. EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage,costs,attorneys'fees or expenses which arise by reason of: I. (a) Any law,ordinance or governmental regulation(including but not (e) resulting in loss or damage which would not ha%t been sustained limited to building and zoning laws. ordinances or regulations) if the insured claimant had paid value for the insured mortgage. restricting,regulating,prohibiting or relating to(i)the occupancy. 4. Unenforceability of the lien of the insured mortgage because of the use or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; inability or failure of the insured at Date of Policy, or the inability (iii)a separation in ownership or a change in the dimensions or or failure of any subsequent owner of the indebtedness,to comply with area of the land or any parcel of which the land is or was a part; applicable doing business laws of the state in which the land is situated. or(iv)environmental protection,or the effect of any violation of 5. Invalidity or unenforccability of the lien of the insured mortgage,or these laws,ordinances or governmental regulations,except to the claim thereof, which arises out of the transaction evidenced by the extent that a notice of the enforcem:nt thereof or a notice of a insured mortgage and is based upon usury or any consumer credit defect,lien or encumbrance resulting from a violation or alleged protection or truth in lending law. violation affecting the land has been nxorded in the public records at Date of policy. 6. Any statutory lien for services, labor or materials (or the claim of (b) Any governmental police power not excluded by(a)above,except priority of any statutory lien for services,labor or materials oMr the to the extent that a notice of the exercise thereof or a notice of lien of the insured mortgage)arising from an improvement or work a defect,lien or encumbrance resultiq;from a violation or alleged related to the land which is contracted for and commenced subsequent violation affecting the land has been recorded in the public records to Date of Policy and is trot financed in whole or in part by proceeds at Date of Policy. of the indebtedness secured by the insured mortgage which at Date 2. Rights of eminent domain unless notice of the exercise thereof has been of Policy the insured has advanced or is obligated to advance. recorded in the public records at Date of Policy,but not excluding from 7. Any claim, which arises out of the transaction creating the interest cov.rage any taking which has occurred prior to Date of Policy which of the mortgagee insured by this policy, by reason of the operation wtxdd be binding on the rights of a purchaser for value without of federal bankruptcy,state insolvency or similar creditors'rights laws, kwieledge, that is based on: 3. Dcdtxts, liens, encumbrances, adverse claims or other matters: (a) the transaction creating the interest of the insured mortgagee being (a) created,suffered,assumed or agreed to by the insured claimant; deemed a fraudulent conveyance or fraudulent transfer; or (b) not known to the Company, not recorded in the public records (b) the subordination of the interest of the insured mortgagee as a result at Date of Policy, but known to the insured claimant and not of the application of the doctrine of equitable subordination;or disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this (c) the transaction creating the interest of the insured mortgagee being policy; deemed a preferential transfer except where the preferential transfer (c) resulting in no loss or damage to th4 insured claimant; results from the failure: (d) attaching or created subsequent to Dite of Policy (except to the (i) to timely record the instrument of transfer;or extent that this policy insures the priority of the lien of the insured (ii) of such recordation to impart notice to a purchaser for value mortgage over any statutory lien for services,labor or material);or or a judgment or lien creditor. m® PoGc, US•Litim)in U.S.A. 061-0-133-0006 Corer%wo ALTA"n MACY(t0-17-92) CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The following terms when used in this policy mean The insured shall notify the Company promptly in writing(q in case of (a) "insured" the insured named,n Schedule A The term"insured" any litigation as set forth in Section 4(a)below,(u)in case knowledge shall also includes come to an insured hereunder of any claim of title or interest which is adverse (i) the owner of the indebtedness secured by the insured mortgage to the title to the estate or interest or the lien of the insured mortgage,as in- and each successor in ownership of the indebtedness except a successor sured,and which might cause loss or damage for which the Company may who is an obligor under the provisions of Section 12(c)of these Conditions be liable by virtue of this policy,or(iii)if title to the estate or interest or the and Stipulations(reserving,however,all rights and defenses as to any suc- lien of the insured mortgage,as insured,is rejected as unmarketable.If prompt cessor that the Company would have had against any predecessor insured, notice shall not be given to the Company,then as to the insured all liability unless the successor acquired the indebtedness as a purchaser for value of the Company shall terminate with regard to the matter or matters for which without knowledge of the asserted defect,lien,encumbrance,adverse claim prompt notice is required;provided,however,that failure to notify the Com- or other matter insured against by this policy as affecting title to the estate pany shall in no case prejudice the rights of any insured under this policy or interest in the land); unless the Company shall be prejudiced by the failure and then only to the (ii) any governmental agency or governmental instrumentality which extent of the prejudice. is an insurer or guarantor under an insurance contract or guaranty insuring 4. DEFENSE AND PROSECUTION OF ACTIONS;DUTY OF INSURED or guaranteeing the indebtedness secured by the insured mortgage,or any CLAIMANT TO COOPERATE. part thereof,whether named as an insured herein or not; (a) Upon written request by the insured and subject to the options (iii) the parties designated in Section 2(a)of these Conditions and contained in Section 6 of these Conditions and Stipulations,the Company, Stipulations. at its own costand without unreasonable delay,shall provide for the defense (b) "insured claimant": an insured claiming loss or damage. of an insured in litigation in which any third party asserts a claim adverse to (c) "knowledge" or "known": actual knowledge, not constructive the title or interest as insured, but only as to those stated causes of action knowledge or notice which may be imputed to an insured by reason of the alleging a defect, lien or encumbrance or other matter insured against by public records as defined in this policy or any other records which impart this policy.The Company shall have the right to select counsel of its choice constructive notice of matters affecting the land. (subject to the right of the insured to object for reasonable cause)to repre- (d) "land": the land described or referred to in Schedule A, and sent the insured as to those stated causes of action and shall not be liable improvements affixed thereto which by law constitute real property.The term for and will not pay the fees of any other counsel.The Company will not pay "land"does not include any property beyond the lines of the area described any fees,costs or expenses incurred by the insured in the defense of those or referred to in Schedule A,nor any right,title,interest,estate or easement causes of action which allege matters not insured against by this policy. in abutting streets,roads,avenues,alleys,lanes,ways or waterways,but nothing (b) The Company shall have the right,at its own cost,to institute and herein shall modify or limit the extent to which a right of access to and from prosecute any action or proceeding or to do any other act which in its opinion the land is insured by this policy. may be necessary or desirable to establish the title to the estate or interest (e) "mortgage": mortgage,deed of trust,trust deed,or other security or the lien of the insured mortgage,as insured,or to prevent or reduce loss instrument. or damage to the insured The Company may take any appropriate action (f) "public records": records established understate statutes at Date of under the terms of this policy,whether or not it shall be liable hereunder,and Policy for the purpose of imparting constructive notice of matters relating to shall not thereby concede liability or waive any provision of this policy.If the real property to purchasers for value and without knowledge.With respect Company shall exercise its rights underthis paragraph,it shall do so diligently. to Section 1(a)(iv)of the Exclusions From Coverage,"public records"shall (c) Whenever the Company shall have brought an action or interposed also include environmental protection liens filed in the records of the clerk defense as required or permitted by the provisions of this policy,the Com- of the United States district court for the district in which the land is located. pany may pursue any litigation to final determination by a court of competent (g) "unmarketability of the title": an alleged or apparent matter jurisdiction and expressly reserves the right,in its sole discretion,to appeal affecting the title to the land,not excluded or excepted from coverage,which from any adverse judgment or order. would entitle a purchaser of the estate or interest described in Schedule A d In all cases where this policy or the insured mortgage to be released from the obligation to purchase by ( ) P co any action requirestheCompanyts red virtue of a contractual condition requiring the delivery of marketable title. shall s c provide for the defense i any action or proceeding,the insured 2. CONTINUATION OF INSURANCE. shall secure to the Company the right to so prosecute or provide defgnse in the action or proceeding,and all appeals therein,and permit the Com- (a) After Acquisition of Title. The coverage of this policy shall continue pany to use,at its option,the name of the insured for this purpose.Whenever in force as of Date of Policy in favor of(i)an insured who acquires all or any requested by the Company,the insured,at the Company's expense,shall part of the estate or interest in the land by foreclosure,trustee's sale,con- givethe Company all reasonable aid(i)in any action or proceeding,securing veyance in lieu of foreclosure,or other legal manner which discharges the evidence,obtaining witnesses,prosecuting or defending the action or pro- lien of the insured mortgage;(ii)a transferee of the estate or interest so acquired ceeding,or effecting settlement,and(ii)in any other lawful act which in the from an insured corporation,provided the transferee is the parent or wholly- opinion of the Company may be necessary or desirable to establish the title owned subsidiary of the insured corporation,and their corporate successors to the estate or interest or the lien of the insured mortgage,as insured.If the by operation of law and not by purchase,subject to any rights or defenses Company is prejudiced by the failure of the insured to furnish the required the Company may have against any predecessor insureds;and(iii)any govern- cooperation,the Company's obligations to the insured under the policy shall mental agency or governmental instrumentality which acquires all or any part terminate,including any liability or obligation to defend,prosecute,or con- of the estate or interest pursuant to a contract of insurance or guaranty insur- tinue any litigation, with regard to the matter or matters requiring such ing or guaranteeing the indebtedness secured by the insured mortgage. cooperation. (b) After Conveyance of Title. The coverage of this policy shall continue 5. PROOF OF LOSS OR DAMAGE. in force as of Date of Policy in favor of an insured only so long as the insured In addition to and after the notices required under Section 3 of these Con- retains an estate or interest in the land,or holds an indebtedness secured ditions and Stipulations have been provided the Company,a proof of loss by a purchase money mortgage given by a purchaser from the insured,or or damage signed and sworn to by the insured claimant shall be furnished only so long as the insured shall have liability by reason of covenants of war- to the Company within 90 days after the insured claimant shall ascertain the ranty made by the insured in any transfer or conveyance of the estate or in- facts giving rise to the loss or damage. The proof of loss or damage shall terest.This policy shall not continue in force in favor of any purchaser from describe the defect in,or lien or encumbrance on the title,or other matter the insured of either(i)an estate or interest in the land,or(ii)an indebtedness insured against by this policy which constitutes the basis of loss or damage secured by a purchase money mortgage given to the insured. and shall state,to the extent possible,the basis of calculating the amount (c) Amount of Insurance.The amount of insurance after the acquisition of the loss or damage.If the Company is prejudiced by the failure of the in- or after the conveyance shall in neither event exceed the least of: sured claimant to provide the required proof of loss or damage,the Com- (i) the Amount of Insurance stated in Schedule A; pany's obligations to the insured under the policy shall terminate,including (n) the amount of the principal of the indebtedness secured by the any liability or obligation to defend,prosecute,or continue any litigation,with insured mortgage as of Date of Policy,interest thereon,expenses of foreclosure, regard to the matter or matters requiring such proof of loss or damage. amounts advanced pursuant to the insured mortgage to assure compliance In addition,the insured claimant may reasonably be required to submit with laws or to protect the lien of the insured mortgage prior to the time of to examination under oath by any authorized representative of the Company acquisition of the estate or interest in the land and secured thereby and and shall produce for examination,inspection and copying,at such reasonable reasonable amounts expended to prevent deterioration of improvements,but times and places as may be designated by any authorized representative reduced by the amount of all payments made; or of the Company,all records,books,ledgers,checks,correspondence and (iii) the amount paid by any governmental agency or governmental memoranda,whether bearing a date before or after Date of Policy, which instrumentality,if the agency or instrumentality is the insured claimant,in the reasonably pertain to the loss or damage.Further,if requested by any author- acguisition of the estate or interest in satisfaction of its insurance contract or ized representative of the Company,the insured claimant shall grant its per- mission, in writing, for anv authorized representative of the Company to continued on next page or coter sheet ALTA LOAN POLICY - 1992 Policy No.:135-01-208-222 Order No.: 9402208-A 9CHEDME A CONTINUED INUED 5. ME LRM MERRED Ta IN THIS POLICY IS DESCRIBED AS FULIDWS: A Candaniniun comprised of: PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in aamrn in and to all of the Cannon Area defined in Declaration referred to below and described in the Cordaniniun Plan ("Plan") -for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of Official Records of Orange County, over Lot 1 of Tract No. 14828, in the City of Huntington Beach, County of Orange, State of Califotrnia, as per map filed in Hods 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of said County. F.woepting therefrom all oil, petroleum, a#ialtun, gas, minerals and other substances, as reserved in deed recorded August 16, 1921 in Bode 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: Unit No. 8 consisting of certain airspace and surface elements, as shown and described in the Condaniniun Plan referred to in Parcel 1 above. PARCEL 3: Non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, t, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of Covenants, Conditions and Restrictions and Reservation of Fa_smmts for Pacific Park Villas, re=ded August 25, 1994 as Instrument No. 94-0525336 of Official Records. PARCEL 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and assigned on the Plan. LAWYERS TITLE INSURANCE CORPORATION National Hi3adquarters R1 twaid, Virginia AMERICAN LAND TITLE ASSOCIATION LOAN POLICY 1992 Issued At: Continental Lawyers Title Cwpany 18551 Von Kaman, Suite 100, Irvine, California 92715 SCHM= A ------------------------------------------------------------------------------------------------- crom POLICY AM7[M Cr- PFdT4I M DATE OF POLICY NU"BE R IX243M INSUPANCE ------------------------------------------------------------------------------------------------ 9432208-A 135-01-208-222 . $35,000.00 $150.00 07/26/96 at 8:00 am 1. NAME OF INSURED: The t Agency of the City of Hint3ngton Beach, a body corporate and politic 2. THE ESTATE OR INTEREST IN THE LAND WHICH IS COVERED BY THE INSURED MMPM IS: A CONDOMINIUM, as defined in Section 783 of the California Civil Code, in fee 3. TITLE TO THE ESTATE OR INTIRES'T IN THE LAND IS VESTED IN: Edkard G. Peltier, an unmarried man 4. THE INSLUZED ND XAGE AMID ASSIG44DM n0;M0F, IF ANY, ARE DESCRIBED AS F UD S: A Dead of Trust to secure an Indebtadness in the amount shown below, and arty other obligations secured thereby Amocmt: $35,OW.00 Dated: July 22, 1996 Trusbor: Edward G. Peltier Trustee: The City of Huntington Beach, a municipal corporation Beneficiary: The Redevelop+nent Ager y of the City of Huntington Beach, a public body rate and politic Recorded: July 26, 1996 Instrument No. 96-03SM74 of Official Records ALTA LOAN POLICY - 1992 POLICY NO.:135-01-208-222 ORDER NO.: 9402208-A SCHEDULE B PART I FXPTIONS FRCH COVERAGE 71IIS POLICY DOSS NOT TIME AQMW LASS OR MMGE (AND THE [MANY WnL NC T PAY COSTS, ATTORNM I FEES OR EXPENSES) MUCH ARISE BY REA9C N OF: A. PrgVXty taxes, inClUlin9 general and social taxes, personal property taxes, if arty, and any assessments collected with taxes, to be levied for the fiscal year 1996-1997 which are a lien riot yet payable. B. Supplemental or escaped assessments of property taxes, if any, assessed pt=suant to the Revenue and Taxation Code, of the State of California. 1. The matters contained in a document entitled "14w= m of Disposition and Development Agreement" recorded January 3, 1994 as Instrument No. 94-0001007 of Official Records. Reference is made to said docanent for full particulars. 2. The fact that the ownership of said land does not include rights of access to or from the street or highway abutting said land, such rights having been relinquished by the map of said tract. Affects: Talbert Avenue: Joyful Lane and Happy Drive Except at street intersections and appxrrrad driveway locations. 3. Covenants, conditions and restrictions (deleting therefrom any restrictions based on race, color or creed) as set forth in the domnent Rrded: February 24, 1994 Instrument No. 94-0137068 of Official Records Said covenants, conditions and Lestrictions provide that a violation thereof shall not defeat the lien of any mortgage. or deed of trust made in good faith and for value. 4. Matters in an Instrument which, among other things, contain or provide for Assessments, Liens and the bordination thereof, provisions relating to Partition, Restrictions on severability of Component Interests, Oovenants, Canditiohs and Restrictions, a provision that no violation thereof and no en ' cemen of any Lien provided for herein shall defeat or der invalid the Lien of a Mortgage or Deed of Trust made in good faith and for value, but which however, do r»t contain Restrictions based on race, color or creed. Recorded: August 24, 1994 Instrument No. 94-0525336 of Official Records CAR NO.: 9402208-A 9E B (PART 1 CONTINUED) 1ED) a. The matters omtained in a document entitled "Otmrrn Facilities Use and Ag em-ent Fbr Pacific Park Villas" reoocrded August 25, 1994 as Instrument No. 94-0525337 of Official Records. Reference is made to said document for full particulars. 6. An easement for the purpose shown below and rights incidental thereto as set forth in a document Granted to: Southern California Edison Company Purpcee: Public utilities Recorded: OaWber 27, 1994 Instrument No. 94-0632840 of Official Records Affects: the Southerly 50 feet of the Easterly 4 feet of Lot 1 7. A Deed of Trust to secure an indebtedness, in the amntnt shown below, and any other obligations secured thereby Amount: $131,000.00 Dated: July 22, 1996 Trustor: Edward G. Peltier, an unmarried man Tnztee: Hartford Es=ow, Inc., a California corporation Beneficiary: Mission Hills M=-bgage Corporation, a California -at ion RecprY3e1: July 26, 1996 Instrument No. 96-0380373 of Official Records ENDORSEMENTS Th-;: following omits are attached to and made a part of this policy: 100 110.9 116.2 tb Dabe typed: 08/29/96 Plints enclosed ALTA LOAN POLICY - 1992 POLICY NO.: 135-01-208-222 CRDER NO.: 9402208-A SCRED= B PART II IN AMITICN TO THE FITTERS SET FORTH IN PART I OF THIS SG7 EDUIE, THE TITLE TO THE ESTATE CR INTEREST IN THE LAID DFSCROM OR REFERFM TO IN SCHEDULE A IS SUBJI= TO THE FOIE MATH IF ANY BE S VM, BUT THE COMPANY INWRES THAT WESE MATTERS ARE SLEMINATE TO THE LIEN CR CHARGE OF THE IA'SLPM M1M+GE UPON THE ESTATE CR INTEREST: 8. Covenants, conditions and restrictions (deleting thexefram any restrictions based on race, color or creed) as set forth in the document Recczx d: July 26, 1996 Instrument No. 96-0380375 of Official Records ENDORSEMENT LAWYERS TITLE INSURANCE CORPORATION CLTA FOSS 100 Order No.: 9402208-A Attached to Policy No.: 135-01-208-222 The Company hereby insures against loss which said Insured shall sustain by reason, of the following ratters: 1. Any in the assurance which the Company gives: a. That there are no covenants, conditions, or restrictions under which the lien of the mortgage referred to in Schedule A can be art off, subordinated, or otherwise imi-Z iced; b. That there are no present violations on said land of any enforceable Covenants, catUtions, or restrictions; c. That, except as shown in Schedule B, there are no encroachments of buildings, structures, or improvements located on said land onto adjoining ems, nor ary onto said land of buildings, statures, or imprvvernhts located on dlna 2.-as Anyyfuturme violations on the land of any covenants, conditions, or re- strictions occurring prior to acquisition of title to the estate or interest referred to in Schedule A by the Insured, provided such violations result in fmpa.inremt or loss of the lien of the mortgage referred to in Schedule A, or result in impairment or loss of the title to the estate or interest referred to in Schedule A if the Insured shall ao.TA a such title in satisfaction of the indehbedness secured by the insured mortgage; b. Ury arketability of the title to the estate or interest referred to in Schedule A by reason of any violations on the land, occurring prior to acquisition of title to tth:: estate or interest referred to in Schedule A by the insured, of any covenants, conditions or restrictions. 3. Damage to existing improvements, ircludirg lawns shrubbery or trees: a. which are located or encroach upon that pion of the land subject to any eanh t shown in Schedule B, which damage results from the exercise of the right to use or maintain such easement for the purposes for which the same was granted or re:�erved. b. resulting fnam the exercise of any right to use the surface of said land for th'- extraction or developnht of the minerals excepted from the description of the la-d or shown as a reservation in Schedule B. 4. Any final court order or judgment requiring the removal from any land adjoining the la-d of any encroachment shown in Schedule B. Wherever in this endorsement any or all the words "covenants, conditions, or re:,trictian" appear, ttY shall not be deemed to refer to or include urde the tetnmts, Covenants oohditdons or restrictions contained in any lease. Flor purposes of this endorsement, the words "covenants", "cohdit:ions" or "ncz-trictiocns" shall not be deemed to refer to or include any covenants, conditions or res Izticns relating to environmental protection, except to the extent that a nortice of a violation or alleged violataion affecting the land has been recorded in the pukAic records at Date of Policy and -is not excepted in Schedule B. This ert3orsement is made a part of the policy and is subject to all of the terms ani provision thereof and of any prior endorsements themto. E o pt to the extent et;;tressly stated, it neither modifies any of the terns and provisions of the policy ant any prior endorsements; nor does it extend time effective date of the policy aril any pt:ior endorsements, nor does it increase the face amount thereof. IN WInESS MM07, the Company has caused this E{hhdorsenent to be signed and sealed, as of the date set forth below, to be valid when countersigned by an aut3harized officer or agent of the Company, all in accordance with its By-Laws. Date: July 26, 1996 Issued at: Irvine, (alifarnia LAWYERS TITLE III WM CORPORATION Co.intersigned: Janet A. Alpert - President 26;� d ef i 't John M. Carter - Secretary ENDORSEMENT L mgkl LS TITLE INSMViCE 4 ORPORATICN CLTA F'OM 110.9 Order No.: 9402208-A Attached to Policy No.: 135-01-208-222 Th:-3 insurance afforded by this endorsa,ni is only effective if the land is used or is to be used primarily for residential purposes. Thy Company insures the insured against loss or damage sustain by reason of lack of priority of the lien cf the insured mortgage over: (a) any envimYrental protection lien which, at Date of Policy is recorded in those records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge, or filed in the records of the clerk of the United States District Court for the district in which the land is located, except as set forth in Schedule B; or (b) any ervirccmental protection lien provided for by any state statute in effect at Date of Policy, except pmo ction liens provided for in the following state statutes: NONE This endorsee t is made a part of the policy and is subject to all of the terms ani provisions thereof, and of any prior ex 3- xneornts thereto. Emx t to the extent ar,ressly stated, it neither modifies any of the terns and provisions of the policy ani any endorsements, nor does it extend the effective date of the policy and arc; prior endorsements, nor does it increase the face amount thereof. IN WITNESS VEa!MOF, the OarpwV has caused this EnJar-s�t to be signed and sealed as of th-s date set forth below, to be valid when countersigned by an authorized officer or agent of the OmpwV, all in a000rdaince with its By-Laws. Date: 07/26/96 LAWYERS TITLE INSURANCE GnRP )RATION Cmtersigned by: Janet A. Alpert - Presidlent Jahn M. cartes' - Secretary IsAxed at: Irvine, California ENDORSEMENT LAWYERS TITLE INSURAKE OORP)RATICK M7A FaM 116.2 Order No.: 9402208-A Attached to Policy No.: 135-01-208-222 Tth:: Company assures the Insured that at the date of this Policy the dimensions of the exterior boundary of the Common Area referred to in Schedule A of this Policy which is al.�o the exterior boundary of the project, are correctly shown on that map recorded in bock 706, pages 27 to 29 of Maps in the office of the County Rea n-dP.r of said County. Th-3 many further assures the Insured that the estate in said land referred to in Schedule A includes a residence within the project boundaries, which residence is de:,ignated as Unit 8, as shown on the map recorded August 25, 1994 as Instrument No. 94-0525335, Official Records of Condominiums in the office of the County Recaarder of said Cv.Mty, anI known as: 78.71 Happy Drive #201 Huitirgton Eoarh, California Th? Canpany hereby insures the Insured against loss which the insured shall sustain in the event that the asswaranae herein shall prave to be incorrect. ThLs endorsment is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endorsements thereto. Except to the extent expressly sttited, it neither modifies any of the terms and provisions of the policy and any prior endoarse<mhents, nor does it extend the effective date of the policy and any prior e<hclo rents, nor does it increase the face armomt thereof. IN WITNESS W OM F, the Company has caused this exmdorsemrt to be. signed and sealed as of thri date set forth below, to be valid when countersigned by an authorized officer or agent of the Oompany all in accordance with its Hy--Taws. Da*m: 07/26/96 LAWYERS TITLE DGLFA= 11ATICK C+a.aitersigned by: Janet A. Alpert - President CSl LQ� John M. Carter - Secretary Is and at: Irvine, Califcxnia 1 ' ,I 1 I CONDOMINIUM PLANS FOR SHEET 11 Or 32 LOT 1 OF TRACT :/826. IN THE CsTY OF HU%TINGTON BEACH. COUNTY Of ORANCE. STATE OF CAUFORNIA. AS SHOWN ON A YAP RECORDED IN YAP DOOK 708. PACES 27 THROUGH 29. INCLUSIVE. OP MISCELLANEOUS MAPS. IN THE OFFICE OF THE RECORDER OF SAID COUNTY. PHASE ONE OF PACIFIC PARK VILLAS 40 n22 21 20 19 1s 18 1.00' (Typ") BCTOICCN u+TS 8 a�.t9• ~ S e9•40'27' E • 9 11 12 13 14 10 15 4 4 5 3 6 VW • 7 n!t 2 8 M41' 2s 00' Sur SCALE: 1"=40' 10+E1e N^*"orW.A[S tOvO t[rcL t"t N�OKiI M►M�LA 90CJ11I=tir01 I.RKL{/�T, ASSOCIATION PROPERTY, �� WrS.'�•CUML U N E•i NUMBERS & TIES COMUMS%"?$0-0�ft JOB NO. 42E3 HALL & FOREMAN. INC. f CONDITIONS AND STIPULATIONS—CONTINUED examine, inspect and copy all records. books. ledgers, checks. cor- S. LIMITATION OF LIABILITY. responcfence and memoranda in the custody or control of a third party,which (a) If the Company establishes the title,or removes the alleged de'ect. reasonably pertain to the loss or damage.All information designated as con- lien or encumbrance,or cures the lack of a right of access to or from 1.".e land. hdentra'by the insured clai mart provided to the Company pursuant to this or Cures the claim of unmarketabrl ly of title.or otherw.se establishes the lien Section shall not be disclosed to others unless,in the reasonable judgment of the insured mortgage.all as insured.in a reasonably diligent mariner by of the Compary,it is necessary in the administration of the Claim.Failure of any method,including litigation and'he completion of any appeals t'ierefrom, the rnsu•ed claimant to submit for examinatioi under oath,produce other d shall have fully performed its obligations with respect to that rra:ter and reasonably requested rn'ormalron or grant pernrssion to secure reasonably shalt no;be Fable for any loss or damage caused thereby necessary information from third parties as required in this paragraph,unless (b) In the event of any litigation,including litigation by the Company prohibrt:'d by law or governmental regulation,shall terminate any liability of or with the Company's consent,tte Company shall have no trabit-:y for loss the Corr pany under this policy as to that damn. or damage until there has been a final determination by a court of competent 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; jurisdiction,and drspositrcn of all appeals therefrom,adverse to the tale or TERMINATION OF LIABILITY. to the lien of the insured mortgage,as insured_ In;:ase of a claim under this policy.the Company shall have the follow- (c) The Company shall not be gable for loss or damage to a^y insured ing add:'ional options: `or kabrlrty voluntarily assumed by the insured in settling any clam or sue without (a) To Pay or Tender Payment of the Amount of Insurance or to ;he prior written consent of the Company Purcha^�e the Indebtedness. (d) The Company shall not be liable for:(r)any indebtedness created (r) to pay or tender payment of the amount of insurance under subsequent to Date of Policy except for advances made to protect the Gen this poor .y together with any costs,attorneys'fees and expenses incurred of the insured mortgage and secured thereby and reasonable amounts ex• by the insured claimant,which were authorized by the Company,up to the lime of p3ymert or tender of payment and which the Company i5 obligated pended t0 Prevent deterioration of improvements;or(ii)Construction loan advances made subsequent to Date of Policy,except construction ban ad- to pay'or vances made subsequent to Date of Policy for the purpose of financing in (ii) to purchase the indebtedness secured by the insured mortgage whole or in part the construction of an improvement to the land which at Date for the a mount owing thereon together with a'iyr costs,attorneys'fees and of Policy were secured by the insured mortgage and which the insured was expense•;ir+curredby the insured claimant which were authorized by the Com- and Continued to be obligated to advance at and a"er Date of Polar pany up o the time of purchase and which the Company,is obligated to pay. If[tie Company offers to purchase the indebtedness as herein provided, 9. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION the owner of the indebtedness shall transfer, assign, and convey the in. OF LIABILITY. debledr ass and the insured mortgage,together with any collateral security, (a) All payments under this policy,except payments made for costs. to the Company upon payment therefor. arolineys'fees and expenses,shall reduce the amount of the insurance pro UFlxi the exercise by the Company of a Iher of the options provided tanto.However,any payments made prior to the acquisition of title to:he estate for In paragraphs a(r)or(ir),all liability and obligations to the insured under or interest as provided in Section 2(a)of these Conditions and Stipulations this policy,other than to make the payment required in those paragraphs, shall not reduce pro tanto the amount of the insurance afforded tinder this shall terminate,including any liability or obligation to defend,prosecute,or policy except to the extent that the payments reduce the amount of the in- continue arty litigation,and the policy shall be surrendered to the Company debledness secured by the insured mortgage for cancellation. (b) Payment in part by any person of the principal of the indebtedness. (b) To Pay or Otherwise Settle With Parties Other than the Insured or any other obligation secured by the insured mortgage.or any voluntary or With the Insured Claimant. partial satisfaction or release of the insured mortgage,to the extent of the (i) to pay or otherwise settle with other parties for or in the name payment,satisfaction or release,shall reduce the amount of insurance pro of an insured claimant any claim insured against under this policy,together tailo.The amount of insurance may thereafter be increased by accruing in- with any costs,attorneys'fees and expenses incurred by the insured dai- serest and advances made to protect the lien of the insured mortgage and mast which were authorized by the Company up to the time of payment and secured thereby.with interest thereon,provided in no event shalt the amount which it.?Company is obligated to pay;or cf insurance be greater than the Amount of Insurance stated in Schedule A. ,ii) to pay or otherwise settle with the insured claimant the loss or (c) Payment in full by any person or the voluntary satisfaction or release damage provided for under this po=icy.together with any costs.attorneys' of the insured mortgage s'iall terminate a'I liability of the Company except fees and expenses incurred by the insured claimant which were authorized as provided in Section 2(a)of these Conditions and Stipulations bytheCornpanyuplothebmeofpaymentand which the Company isobligated 10. LIABILITY NONCUMULATIVE. to pay. If the insured acquires title to the estate or interest in salrs!act on of the Upon the exercise by the Company of either of the options provided indebtedness secured by the insured mortgage, or any part thereof, rt is for in paragraphs b(i)or(ii),the Company's obl gations to the insured under expressty understood that the amount of insurance under this policy shaft mis pollrr for the claimed loss or damage,other than the payments required be reduced by any amount the Company may pay under any policy insuring to be nuide,shall terminate,including any liability or obligation to defend, a mortgage to which exception is taken in Schedule B or to which the insured prosecu'a or continue any litigation. has agreed,assumed,or taken subject.or which is herea"er executed by 7. DETERMINATION AND EXTENT OF LIABILITY. an insured and which is a charge or lien on the estate or interest described This policy is a contract of indemnity against actual monetary loss or or referred to in Schedule A.and the amount so paid shall be deemed a pay- Carriage sustained or incurred by the insured claimant who has suffered loss ment under this policy. cr damage by reason of matters insured against by this policy and only to 11. PAYMENT OF LOSS. the extent herein described. (a) No payment shall be rnadewithout producing thispoGcy for enclorse. (a] The liability c the Company under this policy shall not exceed the ment of the payment unless the policy has been lost or destroyed,in which feast at; case proof of loss or destruction shall be furnished to the satis'act on of the (i).the Amount of Insurance staled in Schedule A.or,if applicable. Company. the amor.nt of insurance as defined in Section 2(c)of these Conditions and (b) When liability and the extent of loss or damage has been definitely f xed in accordance with these Conditions and St pulatrons.the loss or damage 5tppulations; tii) the amount of the unpaid principal indebtedness secured by shall be payable within 30 days thereafter. the rnsur;ld mortgage as limited or provided under Section 8 of these Condi- 12. SUBROGATION UPON PAYMENT OR SETTLEMENT. tions and Stipulations or as reduced under Sect on 9 of these Conditions and (a) The Company's Right of Subrogation. Stipulatinns.at the time the loss or damage insured against by this policy Whenever the Company shag'have se-led and paid a clam cinder this occurs.hogether with interest thereon;or policy,all righl of subrogat on shalt vest in the Company unaffected by any rrr the difference between the value of the insured estate or act of the insured claimant. { ) The Company,shall be subrogated to and be entitled to a7 rrgnts and interest as insured and the value of the insured estate or interest subject to remedies which the insured claimant would have had against any person the defer.t,lien or encumbrance insured against by this policy orpropertyin respect to the claim had this polcy not been issued.If requested (b) In the event the insured has acquired the estate or interest in the by the Company,the insured claimant shall transfer to the Company all rights manner Cescribed in Section 2(a)of these Conditions and Stipulations or has and remedies against any person or property necessary in order to perfect Conveyed the Id:e,then the liability of the Company shall continue as set forth this right of subrogation.The insured claimant shall permit the Company to in Sect;cn 7(a)of these Conditions and Stipulations Sue,compromise or settle in the name of the insured claimant and to use (c) The Company w 11 pay only those costs,attorneys'lees and expenses tlx:name of the insured claimant in any transaction or Id gal tin involving these incurred n accordance with Section 4 of these Conditions and Stipulations. rights or remedies. If a payment on acco-ini of a claim does not furry cover the loss of the continued on rema+Wer or utter sheet r CONDITIONS AND STIPULATIONS—CONTINUED insured claimant.the Company shall be subrogated to an rights and remedies or less shall be arbitrated at the option of either the Company or the insured. of the insured claimant after the insured claimant shall have recovered its prin- All arbitrable matters when the Amount of insurance is in excess of$1.000.000 cipal,interest,and costs of collection. shall be arbitrated only when agreed to by both the Company and the,n- (b) The Insured's Rights and Limitations. sured.Arbitration pursuant to this policy and under the Rules in effect on the Ndtwithslanding the foregoing,the owner of the indebtedness secured date the demand for arbitration is made or,at the option of the insured,the by the insured mortgage,provided the priority of the lien of the insured mor- Rules in effect at Date of Policy shall be binding upon the parties.The award tgage or its enforceability is not affected,may release or substdule the per- may include attorneys'fees only A the laws of the state in which the land is sonal liability of any debtor or guarantor,or extend or otherwise modify the located permit a court to award attorneys'fees to a prevailing party.Judg- terms of payment.or release a portion of the estate or interest from the lien ment upon the award rendered by the Arbitrator(s)may be entered in any of the insured mortgage,or release any collateral security for the indebtedness court having jurisdiction thereof. When the permitted acts of the insured claimant occur and the insured The law of the situs of the(and shall apply to an arbitration under the has knowledge of any claim of title or interest adverse to the title to the estate Title Insurance Arbitration Rules. or interest or the priority or enforceability of the lien of the insured mortgage, A copy of the Rules may be obtained from the Company upon request. as insured,the Company shall be required to pay only that part of any losses 14. LIABILITY LIMITED TO THIS POLICY;POLICY ENTIRE CONTRACT. insured against by this policy which shall exceed the amount,it any.lost to (a) This policy together with all endorsements,if any,attached hereto the Company by reason of the impairment by the insured claimant of the Conn- by the Company is the entire policy and contract between the insured and pany's right of subrogation, the Company.In interpreting any provision of this policy,this policy shall be (c) The Company's Flights Against Non-insured Obligors, construed as a whole The Company's right of subrogation against non-insured obligors shall (b) Any claim of loss or damage,whether or not based on negligence, exist and shall include,without limitation,the rights of the insured to indent- and which arises out of the status of the lien of the insured mortgage or of nitres.guaranties,other policies of insurance or bonds,notwithstanding any the title to the estate or interest covered hereby or by any action asserting terms or conditions contained in those instruments which provide forsubroga• such claim,shag{be restricted to this policy. tion rights by reason of this policy. (c) No amendment of or endorsement to this policy can be made ex- The Company's right of subrogation shall not be avoided by acquisition cept by a writing endorsed hereon or attached hereto signed by either the of the insured mortgage by an obligor(except an obligor described in Sec- President,a Vice President,the Secretary,an Assistant Secretary,or validating bon 1(a)(ii)of these Conditions and Stipulations)who acquires the insured officer or authorized signatory of the Company. mortgage as a result of an indemnity,guarantee,other policy of insurance, 15. SEVERABILITY. - or bond and the obligor will not be an insured under this policy,notwithstan- In the event any provision of this policy is held invalid or unenforceable ding Section 1(a)()of these Conditions and Stipulations. under applicable law,the policy shaft be deemed not to include that provi- 13. ARBITRATION sion and an other provisions shall remain in full force and effect. Unless prohibited byapplicable law.either the Companyor the insured IM NOTICES,WHERE SENT. may demand arbitration pursuant to the Title Insurance Arbitration Rules of All notices required to be given the Company and any statement in writing the American Arbitration Association.Arbitrable matters may include.but are required to be furnished the Company shall include the number of this policy not limited to,any controversy or claim between the Company and the in- and shall be addressed to the Company at its Corporate Headquarters sured arising out of or relating to this policy,any service of the Company in 6630 West Broad Street.Richmond,Virginia 23230. Mailing Address: P.Q connection with its issuanceor the breach of a policy provision or other obliga- Box 27W,Richmond Virginia 23261,or to the Company at its Pacific States tion. All arbitrable matters when the Amount of Insurance is $1.000,000 Office, 10 Universal City Plaza, 23rd Flooy Universal City, CA 91608. IN WITNESS WHEREOF, the Company has caused this policy to be signed and seated, to be valid when countersigned by an authorized officer or agent of the Company, all in accordance with its By-Laws. j`awyerslideInsurance Corporation Attest: lilts la� �;g By,K£ ': Secretary President Countersigned by: Authorized Officer or Agent E POLICY OF TITLE INSURANCE A WORD OF THANKS... As we make your policy a part of our permanent records, we want to express our appreciation of this evidence of your faith in Lawyers Title insurance Corporation. There is no recurring premium, This policy provides valuable title protection and we suggest you keep it in a safe place where it will be readily available for future reference. If you have any questions about the protection provided by this policy, contact the office that issued your policy or you may write to: Consumer Affairs Department law3,erslitlejnsurance�o poratios~ P.O. Box 27567 Richmond,Virginia 23261 s �