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STAY, BRYAN F. - 1999-06-14
.,%JcSTED BY t , V AND WHEN RECORDED MAIL TO Barbara Jo Wallace 171 America Blvd. #205 Sequim,Washington 98382 SPACE ABOVE THIS LINE FOR RECORDER'S USE FULL RECONVEYANCE A.P.N.No. 933-87-277 Title No. 139033-6 Cite of 1untington Reach_as duly appointed Trustee under Deed of Trust hereinafter referred to;having received from holder of the obligations thereunder a written request to reconvey,reciting that all sums secured by said Deed of Trust have been fully paid,and said Deed of Trust and the note or notes secured thereby having been surrendered to said Trustee for cancellation,does hereby RECONVEY,without warranty,to the persbn or persons legally entitled thereto,the estate now held by it thereunder. Said Deed of Trust was executed by Barbara Jo Wallace.,Trustor: recorded in the official records of Orange County, California,as follows: RECORDED August 23, 1996 AS INSTRUMENT NO.94-04.33917 DESCRIPTION See legal description attached hereto and made a part hereof as Exhibit"A". ���i Ray City Administrator City of Huntington Beach t 5ON } �4X.• .. - - • •. 1 _ • - _. °�� CITY_OF HUNTINGTON BEACH Infer-Office Communication Economic Development Department DATE: June 12,2000 TO: Gus Duran,Housing/Redevelopment Manager FROM: Joyce DeKreek,Housing/Redevelopment Consultar: SUBJECT: Research on Loan Forgiveness, 1st Time Home-Buyers Program Redevelopment Set-Aside,$400,000 and Redevelopment Set-Aside, $750,000 I have reviewed our records regarding funding of V 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 S750,000 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 1st Time Horne-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($23,000), Lawson($23,000),Melvin($35,000),Otto($23,000),Quick,S. ($16,717),Quick,T. ($25,000),Rivera H. ($2�,000). Quick,T.withdrew from the CDBG loan but maintains the RDA loan. These loans total$243,717. The Redevelopment Agency approved fifteen(15)applicants from the$750,000, . allocation at Pacific Park Villas(PPV)to participate in the Redevelopment Agency lit Time Buyer Program. The names and amounts are(Carrillo(S35,000),Forchione ($35,000),Heckethorn($35,000),Hosseinali($35,000),Hocker($35,000),Lawrence (S35,000),Murch($35,000), Osterhoudt($35,000),Peltier($35,000),Rivera Burgess ($35,000),Wallace($35,000),Weinfeld($35,000),Wong($35,000),Krueck($35,000), Margoles($35,000). These loans total$525,000. Four loans(Melkerson/Uniack,Ojeda,ReneAVI ite,Stratton),previously approved by RDA were not funded. G:rjoyce4nw=rw Reconvey.doc w ' i1. .V .y7• •wy�rt • •Ta 'r. jj:^?•+~ t' ,�"� ~ - f�f:• 4 r•�.w sL i.::ram . One loan(Wallace)was assumed by another qualified buyer(Stay)-"'. Two applicants have paid their loans: Melvin,paid off his RDA loan 10/21/1997 in the amount of 540,794.31 and Hoang,paid off his RDA loan on 12/21/1999 in the amount of $47,208.80, A check in the amount of$4,116.57 was issued to W.Hoang for overpayment,reducing the loan repayment to 543,092.23. These loans accrue simple interest at 5%,due and payable upon sale to a non qualified buyer and has shared equity. Cc: Connie Brockway,City Clerk Paul D'Alessandro,Deputy City Attorney David Biggs,Director,Economic Development John Reekstin,Director of Administrative Services Dan Villella,Director of Finance Jake Rahn,Administrative Services Hank Reveles,Sr.Accountant Joyce de Kreek,Economic Development Steve Holtz,Development Specialist GloyceRntermemo Reconvey.doc r 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,916 RDA 12-19-94 95-03 (2-1-95) Wong,Wesley Chi $ 35,000 7681 Happy Drive,#202 RDA 12-19-94 95-04(2-1-95) Hocker,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 96-0I (1-24-96) Heckethorne,Sean&Ja:quelyn $ 35,000 7871 Happy Drive,9102 RDA 1-16-96 96-02(3-7-96) MargoIis,Peter $ 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) Peltier,Edward $ 35,000 7871 Happy Drive,#201 RDA 7-15-96 96-05 (8-7-96) Wallace,Barbara Jo $ 35,000 18051 Joyful Lane,#205 RDA 8-5-96 96-06(8-7-96) Murch, Gregory $ 35,000 18051 Joyful Lane,#102 RDA 8-5-96 97-01 (1-29-97) Krueck,Deborah $ 35,000 18061 Joyful Lane,#101 RDA 1-21-97 97-02(4-30-97) Osterhoudt,Robert and Kathy $ 35,000 18061 Joyful Lane,#102 RDA GtoyceAntermemo Reconvey.doc . ,a •- _ •y . .r ..F+:" T;� .�l'�a c,.'4't;4,":;,... tee• - :. _ . ' 97-03 (5-14-97) Hosseinali,Faroukh $ 35,060 18061 Joyful Lane,#201 RDA 97-04(7-23-97) Forchine,Richard $ 35,000 18051 J_oyful Lane,#201 RDA 7-21-97 I"TIME BUYER ASSISTANCE($400,000 RDA) 94-4(2-11-94) Lawson,Sally $ 23,000 409 Utica Avenue#A-1 (RDA 1-18-94) 94-5 (2-11-94) Quick,Shauna $ 16,717 409 Utica Avenue#C-32 (RDA 1-18-94) 94-6 (2-11-94) Dieckrneyer,Barbara S 23,000 409 Utica Avenue•#B-21 (RDA 2-22-94) 94-8 (2-11-94) Otto,TJShorb R. - $ 23,000 409 Utica Avenue#A-7 (RDA 1-18-94) 94-10(2-11-94) Hoang,Tam $ 23,000 409 Utica Avenue#D-37 (RDA 2-22-94) 94-11 (5-18-94) Bastou,Valerie $ 25,000 409 Utica Avenue#D-43 (RDA 5-18-94 94-12(5-18-94) Quick La Reine,Teresa $ 25,000 409.Utica Avenue#A-9 (RDA 5-18-94) 94-13 (6-23-94) Melvin,Patrick $ 35,000 409 Utica Avenue#D-39 (RDA 6-20-94) 94-14 (7-27-94) Rivera,Hector R Iciar $25,000 409 Utica Avenue#A5 (RDA 7-18-94) 94-17 (10-4-94) Griffen, Olga Christina 25 000 409 Utica Avenue#C-23 (RDA 9-19-94) $2439717 G:rjoyceAntemxmo Reconvey.doc H CITY OF H�JNTINGTON BEACH Inter-Office Communicatfit ion Economic Development Department DATE: May 23,2000 TO: Gus Duran,Housing/RedeveIopment Manager FROM: Joyce DeKreek,Housing/Redevelopment Speciali SUBJECT: Research on Loan Forgiveness, I"Time Home-Buyers Program 2nd$100,000 I have reviewed our records regarding funding of 1"Time Home-Buyers Program to determine the names and amount of assistance which benefited the applicants from the 2nd$100,000 in CDBG funds approved by the City Council at their December 20, 1993, meeting. At that meeting eight applicants(Hoang,Heildesch,Quick,Lawson,Steenveld,Otto, Dieckmeyer and Chavez)were approved to participate in the In Time Home-Buyers Program,totaling$59,100. However,two (2)applicants(Heildesch,Quick(Shauna) withdrew(or participated in another program),thereby lowering the total amount of assistance to$53,150. I have no record on Steenveld or Chavez(either on microfilm or files)and after checking with City Clerk's office,I believe these loans may not have been funded. If that's true,the total amount of assistance is lowered to$31,900. Since that meeting Bastou($5,000),Griffen($5,300),Melvin($10,000),Quick(Theresa) ($5,000)and Rivera H.($5,000),were approved for CDBG 1"Time Buyer Assistance in conjunction with the Redevelopment 1"Time Buyer Assistance. Quick T.signed loan does but withdrew prior to recording the dots. The CDBG amount of assistance is $25,300. Two applicants have paid back their loans:Hoang, CDBG loan paid on 12/21/1999 in the amount of$8,229.72 and Melvin,CDBG loan paid on 10-21-1997 in the amount of $11,655.36.. G•I}oyeeAnt memo Reeonvey doe These loans are accrued at a S% simple interest rate,due and payable upon sale,transfer, etc. ' f Cc: Paul D'Alessandro,Deputy City Attorney Joyce de Kreek,Economic Development Steve Holz,Development Specialist Gloycc/Inww=Reconvey.doc CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department DATE: May 4,2000 TO: Gail Hutton,City Attorney FROM: David Biggs,Director Economic Development SUBJECT: Research on Loan Forgiveness, 1st Time Home-Buyers Program 1st$100,000 We 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 Is` $100,000 in CDBG funds approved by the City Council at their 10/25/1993 meeting. At that meeting, four applicants (Culaciati,Tullock,Taban and Sutherland)were approved to participate in the 1st Time Home-Buyers Program,totaling$40,475. However,one applicant (Tullock) withdrew,thereby lowering the total amount of assistance to$34,825. At their 12/6/1993,meeting, City Council approved three more applicants (Schmaderer, Kanarski and Kormeluk), totaling$27,100. However,one applicant(Kanarski) withdrew,thereby lowering the total amount of assistance to$23,000. At their 12/2011993,meeting,City Council approved one more applicant(Dixon), totaling$10,000 and made motion to increase the amount of assistance previously approved for Kormeluk by$2,000,for a total amount of assistance of$12,000. At their 1/3/1994, meeting,City Council approved three more applicants (Young,Love and Ommondson),totaling$31,000. ti Gloyceltntermemo Recoavey.doc The total amount of actual funded loans for the original I"Time-Buyer Program ($100,000)is$100,825. All but two loans needing a Full Reconveyance have been approved and processed for Full Reconveyance. The two outstanding loans are Ommundson and Taban. Cc: Paul D'Alessandro,Deputy City Attorney Joyce de Kreek,Economic Development Gf oycdIntermemo Reconny.dot WA (goo .3 0 CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department TO: Connie Brockway,City Clerk FROM: Gus Duran,Housing and Redevelopment Manager W_ DATE: July 9, 1999 SUBJECT: Brian Stay note and Deed of Trust—18051 Joyful Lane Attached please find the original Note and Deed of Trust for Mr. Brian Stay. He took over the loan originally made to Barbara Joe Wallace on the property located at 18051 Joyful Lane in Huntington Beach, at Pacific Park Village. Please file with other documents on this project. If you have any questions please feel free to contact me at Ext. 1529. 7,999Gus Duran:Redev:CCS12y.Doe This document was electronically recorded by ,• OLD REPUBLIC TITLE COMPANY AECt1 w -Bla BY nmMucu III UIV 4Vulity Ul VIQIIty.C1 WNUIRId OLD r,L,%,;J,.0 TITLE CO. Ga L.GranWie, Clerk/Recorder RECORDING REQUESTED BY By uc� ��Ilil�llllllllllll�l !I`III�`I�I+�I�Illli 11111111 No Fee AND«'IIEN RECORDED RETURN TO: ) 19990454468 09:56am 06118199 , Redevelopment Agency of the City of D BY �06140�512814 30 Huntington Beach RETURN TQ1 1 A3017 012.00 0.00 48.00 0.00 0.00 0.00 2000 too 0.00 0.00 Main Street s City o f Huntington Beach,California 92648 ) Attn: Agency Clerk ) [Space Above This line For Recorders Use./ SECORaRG REQUESTED 81 REPUSLIC TEE fA, This document is exempt from recording fees pursuant to Government Code Section 6103. DEED OF TRUST WITH ASSIGNMENTS OF RENTS THIS DEED OF TRUST is made this�'--dayo u—G., 19��by and among BRYAN F. STAY,whose address is 18051 Joyful Lane,V+ft Huntington Beach, California(the f "Trustor")and THE CITY OF HUNTINGTON BEACH,Mnicipal corporation(the"Trustee") �. and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,a public body corporate and politic (the "BENEFICIARY"),whose address is 2000 Main Street, Huntington Beach,California 92648. WITNESSETH: That Trustor Irrevocably Grants,Transfers and Assigns,to Trustee, in Trust,with Power of Sale,that property in the City of Huntington Beach, County of Orange, State of California,described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a)all buildings, improvements and fixtures,now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b)rents, issues and profits thereof,(c) any water rights and/or stock are appurtenant or pertain to said land, and(d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT,HOWEVER,to the right,power and authority hereinafler 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. RECEIVED JUN 2 5 1999 Page 1 of 15 DEPARTMEHTOF 4sN4-99ngm:slay:Dcedorrr ECONOMIC DEVELOPPr.ENT RLS 99-346 5R6/99 A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of Thirty-five Thousand Dollars ($35,000.00)with interest thereon according to the terms of a Promissory Note of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof. 2. Payment of such additional sums with interest thereon as: (a)may be hereafter borrowed from the Beneficiary by the then record 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 'J"m3G w. , I cll , insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment,with interest thereon, future indebtedness or obligation of the Trustor(or of any successor-in-interest of the Trustor to said property)to the Beneficiary,whether created directly or acquired by assignment,whether absolute or contingent,whether due or not,whether otherwise secured or not,or whether existing at the time of the execution of the Deed of Trust,or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST,TRUSTOR AGREES: 1. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary-, to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including,without restricting the generality of the foregoing,damage from termites and dry-rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property-,to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent;not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint,cultivate, irrigate, fertilize, fumigate,prune,and do all other a=ts 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 Page 2 of 15 4 sW-99Agree:5tay:DcedoRr RLS 99-346 5126199 notwithstanding; (a)to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary;(b)to allow Beneficiary to inspect such property at all times during rehabilitation; (c)to replace any work or materials unsatisfactory to Beneficiary within fifteen(15)calendar days after written notice from Beneficiary of such fact,which notice may be given to Trustor by registered or certified mail, sent to his last known address,or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen(15)calendar clays,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 step 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 pay7nent 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 Page 3 of 15 4 sW-99Agree.Stay-.Dccdorrr RrS 99-346 Y26199 termination of such lease,such proceeds,after deducting therefrom any expenses incurred in the collection thereof,shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds,at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not,or in such order as Beneficiary may determine,or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of,and pass to the purchaser of,the property conveyed at any Trustee sale held hereunder. 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. Page 4 of 15 4 sw-99Agree:stay:Decdorrr RLS 99-736 5/26'99 Trustor agrees to repay any amount so expended on demand of Beneficiary,and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust,or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends,to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum,in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property id directly questioned by such action,including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust. b. To pay immediately and without demand,all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made,and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract,or enter into a lease for drilling or extraction of oil,gas or other hydrocarbon substances or any mineral of any kind or character,or sell,convey, further encumber,or alienate said property,or any party thereof,or any interest therein,or be divested of his title or any interest therein in any manner or way,whether voluntarily or involuntarily, Beneficiary shall have the right,at its option,to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable,and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property,or in construction with the transaction financed by such loan,and any award of damages in connection with any condemnation for public use of or injury to said property,or any part thereof, is hereby assigned and shall be paid to Beneficiary,who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date,or by making any payment,performing any act on behalf of Trustor,that Trustor was obligated hereunder,but failed,to make,or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby,Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time,or from time to time,without liability of the Beneficiary or Trustee thereof,and without notice,upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby,or the lien of the Deed of Page 5 of 15 4 s%4-99Aip=:Stay:Deedorrr RLS 99-346 Sr26/99 Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby,or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property,Trustee may: (a) reconvey any part of said property,(b)consent to the making of any map or plat thereof,(c)join in granting any easement thereon,(d)join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby,or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid,and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention,and upon payment of its fees,Trustee shall reconvey,without warranty,the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyanec may be described as "the person or persons legally entitled thereto." Such request and reconveyancc 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 h.-reby,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 Page 6 of 15 4'414-99.4grm:stay:Dcedof7r RLS 99-346 5126199 indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy,possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take,receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby,the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues,royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time,to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right,power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues,royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, 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 Page 7 of 15 4\s\4-99Agree:Stay:Deedofrr RLS 99-346 5/26/99 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 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 Page 8of15 4`s�A-Mgrcc:Suy:Deedoff r RLS 99-346 5/26199 hereunder,the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded,this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee,who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of,and binds all parties hereto,their heirs,legatees,devisees, administrators, executors, successors and assigns. The tern"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. 24. 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 Page 9of15 4uw-99ngree:st2y:n«dorrr RiS 99-346 512W99 Trust secures,and in the event that Trustor has made any material misrepresentation or failed to disclose any material fact,Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable,and on failure to so pay Beneficiary may make a,.vritten declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee,upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein,and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR: By: BRYA F. STAY By: By: APPROVED AS TO FORM: .A7, t-J Agency Counsel l� Page 10 of 15 4'su-99Ag MStay:ncedofrr RLS 99-346 s/26199 RIDER TO DEED OF TRUST FIRST TIME HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated 19 __(the"Loan Agreement"),pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand Dollars($35,000.00)(the"Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement,Trustor shall pay to Beneficiary concurrent with such sale,transfer or refinancing,an amount equal to the"Equity Share Amount." The Equity Share 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(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%) 8. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent(361/o) 9. After twelfth anniversary but prior to thirteenth anniversary: thirty-four percent (34%) Page 11 of 15 4-sw-99 Agree:Ssa y:DeedolTr RLS 99-346 5126/99 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent(320i0) 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 (201/o) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent(18%) 18. After hventy-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent(14%) 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent(12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent(8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent(6%) 24. After twenty-seventh anniversary but Page 12 of 15 4'4U-99AVee:Stay:DcedoRr RLS 99-346 5/26M prior to twenty-eighth anniversary: four percent(4%) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent(2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent(1%) 27. After thirtieth anniversary: zero percent(0%) The"Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property,exclusive of escrow fees,title insurance costs,broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($2,500)shall be added to the Purchase Price unless within sixty(60)days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i)an itemized list of the improvements, (ii)proof of completion of the improvements, and (iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars($2,500)shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a form reasonably satisfactory to the Agency,prior to the due date of the Agency Loan. The"Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's interest in the Property, exclusive of escrow fees, title insurance costs,broker's commissions, loan fees or any other closing or transaction costs. The percentage factor so determined is the"Applicable Factor." If the Property is sold, an amount equal to the Applicable Factor multiplied by the difference between(i) the original Property purchase price and(ii)the amount received by Trustor as the Property sale price(as reduced by costs of sale paid by the Trustor)shall constitute the Equity Share Amount. If the Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is subordinate is refinanced for a loan amount which is in excess of the then current loan balance or extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a certified,independent appraiser to conduct an appraisal of the Property and Trustor agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between (i)the original Property purchase price and(ii)the appraised value of the Page 13 of 15 4s41-99AVw Stay:Deedofrr RiS 99-346 3l2&199 Property as of the time of such transfer or refinancing. Dated: TRUSTOR APPROVED AS TO FORM: Agency Attorney {1� (vf�s� Page 14 of 15 4,su-99Agree:stay:Decdorrr RLS 99-346 5/26199 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-.) 1L1 , 1951—(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 subseq=nt First Lender deeds of trust hereafter recorded against the property described herein. Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of one of the following events: 1) Title is acquired by the First Lender or another party upon foreclosure of a deed of trust by the First Lender. 2) Title is acquired by the First Lender or another party by a deed in lieu of foreclosure of the First Lender deed of trust. Dated: �j l � TRUSTOR: t -,/ ,/—�!� APPROVED AS TO FORM: BRY I'F. STAY A J. L#4., Ap6bnv Atto-rney Page 15 of 15 4,s%4-99Agree:5tay:Dcedofrr RIS 99-346 5126/99 EXHIBIT A TO AGENCY DEED OF TRUST LEGAL DESCRIPTION (to be inserted] "Exhibit A" to Agency Deed of Trust Page I of I 4's\Ci:Agrec:hiargof is:ExhCDccd,05l25M RLS 96-127 ORDER NO. 139083-6 EXHIBIT "A" PARCEL 1 : AN UNDIVIDED 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 AUGUST 25, 1994, AS INSTRUMENT NO. 94-0525335, OFFICIAL RECORDS OF ORANGE COUNTY OVER LOT 1 OF TRACT 14828, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 706 PAGE (S) 27 TO 29 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM ALL OIL, GAS, MINERALS, AND OTHER HYDROCARBONS BELOW A DEPTH OF 500 FEET, WITHOUT THE RIGHT OF SURFACE ENTRY, AS RESERVED IN INSTRUMENTS 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 : NON-EXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENJOYMENT, DRAINAGE, ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS AND FOR OTHER PURPOSES, ALL AS DESCRIBED IN THE DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR PACIFIC PARK VILLAS, RECORDED AUGUST 25, 1994, AS INSTRUMENT NO. 94-0525336, 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. ti ATJ,-PURPOSE AC1CNO1%7-EDGlkIENT F a State of California i County of r $5. On O (D/I L-1 /11�q before me, Pamela A. Carroll, NotaEy Public • j(DATB) I (NOTARY) w • personally appeared �- . slr, I:e�s) • ❑ personally known to me - OR- proved to the on the basis of satisfactory • evidence to be [Ileperson(s) whose name(s) is/are subscribed to the within insiniment and • acknowledged to me that t heftl'rep executed • the same in is -r authorized • ca acit ies a that b its )�1}e-k • P Y( )• Y signature(s) on the instrument } person(s), or the entity upon behalf of which the { person(s) acted, executed the instrument. 1 PAfrIEIA D. CARROlI •- Comm.11175215 W1 y hand and official scat. • WARY PUB':1C-CALIFORNIA _ • Olinpe county uA *MY Comm.Exp4s Much 5.2002 1rr,I A • NOTARY'S SIGNATII • OPTIONAL INFOWIATION • '1'l1c Information below is not regA11retl by law. however. It could Prevent framlulent attachment of this acknnwl- edgment to an unauthorized document. CAPACITY CI.AINIED BY WWII (PRINCIPAT.) DESCRIPTION OF ATTACHED DOCUMENT • ❑ INnivintIAL ---(� • TITIX OR TYPE&LDQCUASr:NT ❑ E'AR'INER(s)' NUMBER OF PAGES • ❑ A'JT0RNGY-IN•f'Aci- • ❑ TR USTEE(S) ❑ rUA1(D1ANicoNsr.RVAT0R DATA;Of DOCUMENT • ❑ o•ri IE3R: i • OTI IER RicirmiuntnPRitrr • SIGNER IS REPRESENTING: .0F � + NA MI!01;kftSON45)RR RNT(TY((I!S) srcNr:R � a Le.0ma-0.10mm-0.zmm�0-Mon- -dome..f-MEND-0-ammu.9.00n�0.1�0.0me— • g APA 5197 VAMEY•SIERRA,200-362-3369 PECORDIM REQUESTED BY OLD REPUBLIC TITLE M _DECLARATION OF CONDITIONS,COVENANTS AND RESTRICTIONS FOR PROPERTY RECORDING REQUESTED BY ) RECEIVED ND WHEN RECORDED MAIL TO: ) JUN 2 5 1999 DEPART141ENT OF Redevelopment Agency of the ) ECOH0:11C DEVELOPMENT City of Huntington Beach ) 2000 Main Street ) Huntington Beach, California ) 92648 )' Attn: Agency Clerk ) . (Space above for Recorder's use.) } THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY(the"Declaration")is made by and between ' BRYAN F. STAY _ (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 �►�e— 1t-1 , 19_f,(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 11ealth and Safety Code § 33000 et seq.)provides that a redevelopment agency shall establish covenants running with the land in furtherance of redevelopment plans. NOW,THEREFORE, the parties hereto agree and covenant as follows: Page 1 of 9 4/sA-99Agree:Stay:Dcc12r2 RLS 99-346 Sr1&'99 1. Affordability Covenants. Covenantor agrees for itself, and its successors and assigns, and every successor to Covenantoes interest in the Property,or any part thereof that for thirty(30)years from the date of recording of the Deed of Trust in favor of the Agency regarding the Property(the"Expiration Date"): (a) The Property shall only be owned and occupied by Coneenantor or by other persons or families of"Moderate Income." "Moderate Income" shall mean persons or families earning One Hundred Twenty Percent(120110)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(80%)and One Hundred Ten Percent(110%) of the Orange County monthly median income,and Thirty-Five Percent(35%)of the monthly median income of any person or family of moderate income which earns 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 Covenantor's original sale of the Page 2 of 9 4's:4-99ASrce:Stay:Dcc1ara RLS 99-346 5126"99 t . Affordable Unit,provided that 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. 44 A_�— _-.1 Coven for 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 4 44:4-99Agrce:Stay:Dcd era RLS W346 5126199 r 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. 5. Covenants For Benefit of Cityagency. 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 Page 4 of 9 4.'s:4-99Agrcc:stay:Declara RU 99-346 5:'2&99 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 executed on their behalf by their respective officers hereunto duly authorized,this /y day of IVL COVENANTOR h,,-.,- j-- 4&$,.4 AN . STAY APPROVED AS TO FORM: A -a J1 ,AC ,Y Agency ency Counsel Page 5 of 9 4/s:4-99Agm:Stay:Dcdara RLS 99-346 5/26/99 STATE OF CALIFORNIA } } ss COUNTY OF Q * On n (0 _ ��{ ,before me, LV A (name,title,e.g.,"Jane Doe,Notary Public"), personally a)pcared 5, (namc(s)of signers ), personally known to be--OR-- proved to me on the basis of satisfactory evidence to be the person(s)whose name( i ubscribed to the within instrument and ac owledged to me that te/ iefther executed the same i t eir authorized capacity(ics),and that b s orfk#�eit.. natures)on the instrument the person(s),or the entity upon behalf of which the person(s)acted, executed the instrument. Witness my han a PAMELA D. CAPROLL Comm.11175215 NOTARY PUSUC-CAIIFORWA �! ofmie Count Uy Comm.Expirej Mirth S.20o2 {Signature of Notary) CAPACITY CLAIMED BY SIGNER: Individual Corporate OfI-icer(s): Titic(s) Partner(s): Limited General Attorney-in-Fact Trustec(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. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO TILE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signer(s)Other Than Named Above: Page 6 of 9 4.'s:4.99Agrce:Stay:tht12ra Rt.S 99-346 5,'26199 STATE OF CALIFORNIA ) ss COUNTY OF nm0m, On A14 CI C1 before (name,title,e.g.,"Jane Doe,Notary Public"), personally a peared (namc(s)of signer(s)), personally known to be--OR-- proved to me on the basis of satisfactory evidence �e the person(s)whose name( is bscribed to the within instrument and ac owledged to me that h i hr,� , y executed the same i ts< ' it authorized capacity(ics),and that b i er.a� signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s)acted, executed the instrument. Witness m hand and official seal. PAMELA D. CAR ROIL r"rn Comm.11115215 rn 1 Yr NOTARY PUBLIC-CALIFORNIA V! {` 0( clampCouety (Signature o ota ") ,MY Comm.Elpiree Much 5.2002"F CAPACITY CLAIMED BY SIGNER: Individual Corporate Officer(s): Title(s) Partner(s): Limited General Attorney-in-Fact Trustee(s) Guard ian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s)or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL,IT COULD PREVENT FRAUDULENT ATTACHMENT OF TIIIS CERTIFICATE TO ANOTHER DOCUMENT. TIIIS CERTIFICATE. Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signer(s)Other Than Named Above: Page 7 of 9 4;s:4-99Agrcc:Stay:Dcclara RLS 99-346 5,76199 ORDER NO. 139083-6 EXHIBIT "A" PARCEL 1 : AN UNDIVIDED 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 AUGUST 25, 1994, AS INSTRUMENT NO. 94-0525335, OFFICIAL RECORDS OF ORANGE COUNTY OVER LOT 1 OF TRACT 14828, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 706 PAGE (S) 27 TO 29 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM ALL OIL, GAS, MINERALS, AND OTHER HYDROCARBONS BELOW A DEPTH OF 500 FEET, WITHOUT THE RIGHT OF SURFACE ENTRY, AS RESERVED IN INSTRUMENTS OF RECORD. PARCEL 2 : UNIT NO. 22, CONSISTING OF CERTAIN AIRSPACE AND SURFACE ELEMENTS, AS SHOWN AND DESCRIBED IN THE CONDOMINIUM PLAN REFERRED TO III 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 THE DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR PACIFIC PARK VILLAS, RECORDED AUGUST 25, 1994, AS INSTRUMENT NO. 94-0525336, OFFICIAL RECORDS. PARCEL 4 : EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS 1 AND 2 REFERRED TO ABOVE, FOR BALCONY OR PATIO PURPOSES, OVER THE AREAS DEFINED, DEPICTED AND ASSIGNED ON THE PLAN. EXHIBIT.A LEGAL DESCRIPTION OF PROPERTY [To Be Inserted] Page 9 of 9 4ls:4-99Agrce:Stay:Dcclan RLS 99-346 5126199 f CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department DATE: June 30, 1999 TO: Connie Brockway, City Clerk FROM: Gus Duran,Housing and Redevelopment Manager SUBJECT: Brian Stay First Time Home Buyer Loan 18051 Joyful Lane#205,Huntington Beach Attached please find the Note and Deed of Trust for the Brian Stay loan,which was executed on June 14, 1999,for the property located at 18051 Joyful Lane#205 in Huntington Beach. Mr. Stay replaces the Ioan originally made to Mary Joe Wallace. The Ioan to Ms. Wallace is now being reconveyed. If you have any questions,please feel free to contact me at Extension 1529. 6130/Mus Duran:I1eudcv:h1cmStay.Doc LOAN AGREEMENT THIS LOAN AGREEMENT(the"Agreement") is made this��day of C, , 19G aby and between BRYAN F.STAY("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 18051 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°o 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: I. Agency-Loan. The Agency shall loan to Participant(the"Agency Loan")the amount of Thirty-Eve 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 Agenc ough deposit of the Agency Loan proceeds into escrow with R (the"Escrow Agent")(Escrow No. r . The Agency shall direct the Escrow Agent to apply the proceeds of the Agen y Loan on behalf of Participant to the purchase price of the Property,and,at Participant's election, to the costs of closing,escrow fees,recording fees, loan points and fees, and/or document fees. At such time,Participant shall execute and deliver to the Agency a promissory note in favor of the Agency as holder,in the amount of the Agency Loan,with Loan Agreement Page 1 of 8 4A:4-94AFft:Stay:LaanAgmt RLs 99-346 526/99 r 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 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 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: 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°ia) Loan Agreement Page 2 of 8 4/s:4-99Agree:Stay:LoanAgmt RLS 99-346 Sr2&"99 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%) 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%) 11. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent(30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent(26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent(24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent(18%) 18. After twenty-first anniversary but prior to twenty-sccond anniversary: sixteen percent(16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent(14%) Loan Agreement Page 3 of 8 / 41s:4-99Agree_Stay:LoanAgml RLS 99-346 / 526"99 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent(12%) 21. After twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent(10%) 22. After twenty-fifth anniversary but prior to twenty-sixth anniversary: eight percent(8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent(6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent(4%) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs,broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($2,500)shall be added to the Purchase Price unless within sixty(60)days following completion of such capital improvements to the Property Participant shall send the following to the Agency: (i)an itemized list of the improvements, (ii)proof of completion of the improvements,and(iii) evidence of the cost of the improvements. The costs incurred by the Participant for capital improvements which cost less than two thousand five hundred dollars(S2,500)shall be added to the Purchase Price upon Participant's submission of evidence of such costs to the Agency,in a form reasonably satisfactory to the Agency,prior to the due date of the Agency Loan. The"Sales Price" is the price paid by the Buyer of the Property to 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/sA-99Agree:Stay:LoanAgmt RLS 99-346 VW99 A. Eguity Share Upon Sale or Transfer. The Equity Share Amount shall be payable to the Agency upon sale or transfer of the Property to a person or persons (the"Buyer") whose income exceeds 120%of the current annual median income for the Orange County area. If the Buyer does not submit an income verification statement to the Agency,the Buyer shall be deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the Equity Share Amount shall not become payable. B. Equity Share Upon Refinancing or Failure to Occupy. The Equity Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property or material breach of any other provision of this Agreement which causes the Agency Loan to become due and payable. The Sales Price for purposes of determining the Equity Share Amount shall be determined by an appraisal of the Property. The Agency shall appoint a certified, independent, appraiser to conduct an appraisal of the Property, at Participant's expense, and Participant agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference bem,een 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. G. 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 shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns. Loan Agreement Page 5 of 8 4-'s:4-99Agree:st2y:LoanAgmt R[S 99-346 3 26199 In addition,not less than three percent(3°/o)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, indcmnify 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: (a) Disclosure Statement; Loan Agreement Page 6 of 8 4.'s:4-99Agrec:stay:LaanAgm1 RLS 99-346 5,76199 (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. I4. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form,as the Agency shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Agency Loan. 15. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county,or in the Federal District Court in the Central District of California. 16. Amendment of Agreement. No modification,rescission,waiver,release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 17. Agency May Assign. Agency may,at its option,assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 18. Participant Assignment Prohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations,discussions and previous Loan Agreement Page 7 of 8 4-'s:4-99Agree:stay:L.oanAgmt RLS"-346 32G149 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" 6 Date: , 1971 By: A ,, -,/ ,A -�ft VJ -BRY#fN F. STAY 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 f Date: /6 19/ By: Vice Chairman ATTEST: Connie Brockway APPROVED AS TO FORM: Agency Clerk By: _ = ' Deputy AgOficy Clerks = , �gency ounsel 111- 01 9 _ 6•�S�-rig REVIEWED AND APPROVED: INITIATED AND APPROVED: IIA" AM Ex tive Director Director of Economic evelopment Loan Agreement Page 8 of 8 4/s:4-99Agree:Stay:LoanAgmt RLS 99-346 SR6t" STATE OF CALIFORNIA ) ss COUNTY OF On before me, n G (name,title,e. .,"lane Doe,Notary Public"), personally a pcared (name(s)of si r(s)), personally known to be--OR-- proved to me on the basis of satisfactory e-6dcnce be the person(s)whose name( i ubscribed to the within instrument and ac owlcdged to me that he executed the same ' hi r authorized capacity(ies),and that b t e7?[ft ' gnature(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. PAMELA D. CARROLL Comm.11175215 in NOTARY PUBUC•CALIFORNIA C(IAA of Mgt County ,; (Signature of Notary) my Comm.Expires 1lerch 5,2002 CAPACITY CLAIMED BY SIGNER: T Individual Corporate Offieer(s): Title(s) Partner(s): Limited General AttorTleyin-Fact Trustee(s) Guard ian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s)or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signer(s)Other Than Named Above: Page 8 of 9 4/s:4-99Agree:5ray:Dcelara Rt.S 99-346 3/26'99 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of C County of _ �f'Q��fde ,�-'/ • On.� / before me,_�✓i,;�� �/S -i!]i, /VoT�?ny r?t4,G DatirNamw"Tiao o1 omm(o.g..' 4iota7 Pwc 1 T personally appeared Lam& G -IO , Nar"s)CO S~ ❑personally known to me R proved to me on the basis of satisfactory evidence to be the personW whose name(S9STre subscribed to the within instrument and acknowledged to me thaoe�'t}rey executed the same inS authorized capacity(aas), and that b is r signatur&H on the instrument the person(4 or the entity upon behalf of which the persons) acted, executed the instrument. ELlZA8=1H EHPJNG cornmtwon 011150MI WITNESS my hand and official seal. No-M Putfic-cal;tomia o►ange County 1u'yCa-rr W0_nA429,20D1 Spnatura d Notary ,mac OPTIONAL Though the Information below is not required bylaw,It may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: 4 S ! Document Date: 614, CY Number of Pages:_ r SigneC5 Other Than Named Above: .0 02sf7 Capacity(ies) Claimed by Signer(s) �Signer's Name:_L1a.✓•Ot' _ it. y� S er's Name: If ❑ Individual ❑ Ind) ' ual F_Corporate Officer �y� ❑ Corpo a Officer Title(s): �1G� o-;wA.v Title(s): ❑ Partner—❑ Umited ❑General ❑ Partner--- Imited ❑General ❑ Attomey-in-Fact ❑ Attomey-in-Fac ❑ Trustee ❑ Trustee ❑ Guardian or Conservator ❑ Guardian or Consery r ❑ Other: W o)thumb hwe ❑ Other. Top or thumb We Signer Is Representing: Signer Is Representing: V O 199E Nabonet Notary Aasocia' -MA Aerrrnet Avo..P.O.Box 7184-Canoga Park.CA 9t7M7164 Prod.No.5907 Plodder.Cal TowFne 140O8764W STATE OF CALIFORNIA ) ss COUNTY OF tj +� On ,before me, ArrQ�x� �I e— (name,title,e.g.,"lane Doe,Notary Public"), personally a peared •Ra 'P. (name(s)of si er(s)), personally known to be—OR— proved to me on the basis of satisfactory evidence be the person(s)whose name( M subscribed to the within instrument and a owledged to me that he herhey executed the same ' is it authorized capacity(ies),and that b hi signature(s)on the instrument the person(s),or the entity upon behalf of which the rson(s)acted, executed the instrument. 1 seal. FAWLA O. CARROLL -- Comm.11175215 torcu NOTARY PUBUC•CAUfORNIA 011001 Coo oul COMM.EXP411 Yueh 5,2002"A ignature of Notary) CAPACITY CLAIMED BY SIGNER: Individual corporate Officer(s): Title(s) Partner(s): Limited General Attorney-in-Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s)or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL,IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signer(s)Other Than Named Above: Page 6 of 9 41s:4-99ASm:Stay:Dcdlara RLS 99-346 S/26199 ORDER NO. 139083-6 EXHIBIT "A" PARCEL 1 : AN UNDIVIDED 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 AUGUST 25, 1994 , AS INSTRUMENT NO. 94-0525335, OFFICIAL RECORDS OF ORANGE COUNTY OVER LOT 1 OF TRACT 14828, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PEP, MAP FILED IN BOOK 706 PAGE(S) 27 TO 29 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM ALL OIL, GAS, MINERALS, AND OTHER HYDROCARBONS BELOW A DEPTH OF 500 FEET, WITHOUT THE RIGHT OF SURFACE ENTRY, AS RESERVED IN INSTRUMENTS 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 : NON-EXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENJOYMENT, DRAINAGE, ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS AND FOR OTHER PURPOSES, ALL AS DESCRIBED IN THE DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR PACIFIC PARK VILLAS, RECORDED AUGUST 25, 1994, AS INSTRUMENT NO. 94-0525336, OFFICIAL RECORDS. PARCEL 4 : EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS 1 AND 2 REFERRED TO ABOVE, FOR BALCONY OR PATIO PURPOSES, OVER THE AREAS DEFINED, DEPICTED AND ASSIGNED ON THE PLAN. EXHIBIT A LEGAL DESCRIPTION OF PROPERTY [To Be Inserted] Exhibit A to Loan Agreement Page 1 of 1 4`"Sree:Margolis:CxhibitA�45r2N99 PROMISSORY NOTE $ 35,000.00 Huntington Beach,California FOR VALUE RECEIVED,the undersigned ('Maker")promises to pay to The Redevelopment Agency of the City of Huntington Beach("Holder") at 2000 Main Street,P.O. Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct from time to time in writing,Thirty-five Thousand Dollars($35,000.00)(the "Note Amount") together with interest thereon at the rate set forth herein. All sums hereunder shall be payable in lawful money of the United States of America and all sums shall be credited first to interest then due and the balance to principal. 1. Interest Rate Simple interest shall accrue on the Note Amount at a rate of five percent(5.00%)per annum. If the fair market value of the Property does not increase at Ieast 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 20�(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). Page 1 of 3 4W4-99Agm:StayPromNotc RIS 99-346 5125M 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 Note is made and delivered pursuant to and in implementation of Loan Agreement entered by and between the Holder and the Maker dated 19� (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 Iength herein, each terns shall have the same definition as set forth in the Agreement. 7. Holder May AssiM Holder may,at its option,assign its right to receive payment under this Promissory Note without necessity of obtaining the consent of the Maker. 8. Maker Assi meet 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. Attorne_ s+e es 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. Page 2 of 3 4'sU-99Agrce:StayPromNote RLS 99-346 3,45199 11. Successors Bound This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. "MAKER" By: Printed ame: BRYAN F. STAY By: Printed Name: By: Printed Name: Page 3 of 4's\4-99Agree:StayPromNote RLS 99-346 51251" 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 ) (Space Above Thu Line For Reconkrs Use.t This document is exempt from recording fees pursuant to Government Code Section 6103. DEED OF TRUST WITH ASSIGNMENTS OF RENTS THIS DEED OF TRUST is made this_jq:!: day o ot, 19f,by and among BRYAN F. STAY,whose address is 18051 Joyful Lane,P+ff,Huntington Beach, California (the "Trustor") and THE CITY OF HUNTINGTON BEACH, ARnicipal corporation (the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH,a public body corporate and politic (the"BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach,Cali fornia 92648. t 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. Page I of 15 4'sU-99Agree:S1ay:Deedorrr RLS 99-346 S!28^99 A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of Thirty-five Thousand Dollars($35,000.00)with interest thereon according to the terms of a Promissory Note of even date herewith,made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof. 2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record 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 19'41 , insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment,with interest thereon, future indebtedness or obligation of the Trustor(or of any successor-in-interest of the Trustor to said property) to the Beneficiary,whether created directly or acquired by assignment,whether absolute or contingent,whether due or not, whether otherwise secured or not,or whether existing at the time of the execution of the Deed of Trust,or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST,TRUSTOR AGREES: 1. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto,shall be permitted for that purpose; not to remove or demolish any building thereon;not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary s written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed,damaged or destroyed thereon, including,without restricting the generality of the foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property;to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon;not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon;not to commit, suffer or permit any act upon such property in violation of the law; and to paint,cultivate, irrigate, fertilize, fumigate,prune,and do all other a:.ts 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 Page 2 of 15 4+su-99 A greet S tay:Dced o rrr PUS 99-346 S126M notwithstanding; (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact,which notice may be given to Trustor by registered or certified mail,sent to his last known address, or by personal service of the same; (d)that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen(15)calendar days,whether consecutive or not,without the written permission of the Beneficiary-, (e)to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (� 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 exticnding 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 Page 3 of 15 41s\4-99Agmc:stay:Accdorrr RIS 99-346 5126199 termination of such lease, such proceeds,after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary,shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine,or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 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 maybe added by Beneficiary to the indebtedness secured hereby and shall bear a like rat: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. Page 4 of 15 4.s%4-99Agrcc:Stay:Dccdorrr RLS 99-346 V26M9 Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust,or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property id directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 6. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee,with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made,and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract,or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber,or 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 io any Note evidencing the same, immediately due and payable,and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property,or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary,who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That,by accepting payment of any sums secured hereby after its due date,or by making any payment,performing any act on behalf of Tnistor, 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 Page 5 of 15 4\sW-99 A gree:Sta y:iced o rrr RLs 99-346 5126199 Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property,Trustee may: (a) reconvey any part of said property, (b)consent to the making of any map or plat thereof,(c)join in granting any easement thereon, (d)join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees,Trustee shall reconvey,without warranty,the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re-assignment of the rents, issues,royalties and profits assigned to Beneficiary. Five(5)years after issuance of such full reconveyance,Trustee may destroy said Note and this Deed of Trust(unless directed in such request to retain them). 13. That as additional security,Trustor irrevocably assigns to 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 Tnistor 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 orTrustee the right to possession, except as otherwise provided herein; and neither said right,nor termination of the License, shall impose upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby,to collect all rents, issues,royalties and profits and shall be authorized to, and may,without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the Page G of 15 4s• 4-99Agree:Stay:Dccdorrr RLS 99-346 S/26nl9 indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby,the rents,issues,royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, 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 Page 7 of 15 4\s\4-99Agree:Stay:Deedofrr RLS 99-346 5/26/99 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 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 Page 8 of 15 4\s\4-99Agree:Stay:DeedotTr RLS 99-346 5/26/99 hereunder,the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee,who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto,their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledge,of the Note secured hereby,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 I,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 Trlistor a reasonable fee for any other services rendered to Trustor or rendered in Trustoes behalf iri 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 Page 9 of 15 4,sM-9DAgrce:Stay:rkcdorrr R[S"-346 sr6M Trust secures,and in the event that Trustor has made any material misrepresentation or failed to disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein,and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR: By: A --� 41— 2j!)16 BRYAP F. STAY By: , i By: APPROVED AS TO FORM: Agency Counsel S(z Ir q 5- I-Ci c , Page 10 of 15 4 zX4-49Agree:Siay:Dccdorrr Rt-S"-346 51261" RIDER TO DEED OF TRUST FIRST TIME f[OMEBUYFR DOWN PAYMENT ASSISTANCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated �:&tje< 11_1 , 19_5�_(the"Loan Agreement"),pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand Dollars ($35,000.00) (the"Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement,Trustor shall pay to Beneficiary concurrent with such sale,transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor(the"Applicable Factor") to the difference bet,.N,een 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(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%) 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%) Page 11 of 15 4s%1"Agrcc:Stay:Dcedofrr RIS 99-346 5/2 W99 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%) 11. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent(30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent(22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent(20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent(18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent(16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent(14%) 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 Page 12 of 15 4'sk4-99AgrmStay:Deedorrr RLS 99-346 52Q'99 prior to twenty-eighth anniversary: four percent(4%) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent(2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent(1%) 27. After thirtieth anniversary: zero percent (0%) The"Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees,title insurance costs,broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($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 submjssion 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 Trustoes 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 saie 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 41sw-99Agm:Szay:Dcedorrr RLS 99-346 5126/99 r + Property as of the time of such transfer or refinancing. Dated: TRUSTOR APPROVED AS TO FORM: f Agency Attorney tq, 5 5g�� Page 14 of 15 4Nsw-99AgrmStay:Dccdorrr RLS 99-346 5/26199 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- \L\ , 19912t_(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 furher 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: {] + '7 `� TRUSTOR: APPROVED AS TO FORM: —JS-BRY , F. STAY Ltr�- ApbenAttorney Page 15 of 15 4'sW-99Agme:Slay:Dcedoffr RLS 99-3a5 5126199 ORDER NO. 139083-6 EXHIBIT "A" PARCEL 1 : AN UNDIVIDED 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 AUGUST 25, 1994, AS INSTRUMENT NO. 94-0525335, OFFICIAL RECORDS OF ORANGE COUNTY OVER LOT I OF TRACT 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. EXCEPT THEREFROM ALL OIL, GAS, MINERALS, AND OTHER HYDROCARBONS BELOW A DEPTH OF 500 FEET, WITHOUT THE RIGHT OF SURFACE ENTRY, AS RESERVED IN INSTRUMENTS 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 : NON-EXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENJOYMENT, DRAINAGE, ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS AND FOR OTHER PURPOSES, ALL AS DESCRIBED IN THE DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR PACIFIC PARK VILLAS, RECORDED AUGUST 25, 1994 , AS INSTRUMENT NO. 94-0525336, OFFICIAL RECORDS. PARCEL 4 : EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS 1 AND 2 REFERRED TO ABOVE, FOR BALCONY OR PATIO PURPOSES, OVER THE AREAS DEFINED, DEPICTED AND ASSIGNED ON THE PLAN. EXHIBIT A TO AGENCY DEED OF TRUST LEGAL DESCRIPTION [to be inserted] t "Exhibit A" to Agency Deed of Trust Page 1 of 4's'.G:Agmc:Alargolis:L•xhCDeedjD5R5/99 RLS 95-127 Jun-11-99 02:38Fm From-OLD REPUBLIC TITLE 71444500TI T-566 P.02/02 F-823 RECOROIM REQUESTED BY OLD REPUBLIC TITLE C.J. DECLARATION OF CONDITIONS. COVENANTS &ND RESTRICTIONS FOR PROPERTY TtECORDShTG RE("'ESTED B'Y } WHEN RECORDED MAIL TO: } Redevelopment Agency of the ) City of Huntington Beach } 2000 Main Strost ) Huntington Beach, California } 92648 ) Attn! Agency Clerk } } (Space above for Recorder's use.) THIS DECLARATION OF CONDITIONS,COVENANTS AND RESTRICTIONS FOR PROPERTY (the"Declaration")is made by and between ' BRy%ll F,. STAY , (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 :2—LIAy3 a✓ 4 , 19,� (the"Agmemert," 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 Safery Code § 33000 et seq.)provides that a redevelopment agency shall establish covenants running with the land in furtherance of redevelopment plans. NOW,THEREFORE,the parties hereto agree and covenant as follows: Page !of 9 4/s:4-94AYm st1T.DeC11rs ILLS 99-346 Srx6r99 DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY RECORDING REQUESTED BY ) ND Nk HEN RECORDED MAIL TO: ) Redevelopment Agency of the ) City of Huntington Beach ) 2000 Main Street ) Huntington Beach, California ) 92648 ) Attn: Agency Clerk ) (Space above for Recorders use.) THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR PROPERTY(the "Declaration") is made by and between BAR.BARA 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 Xt-k , 19��1 ,{the"Agreement," a copy of which is on f le 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 Ilealth and Safety Code § 33000 et seq.)provides that a redevelopment agency shall establish covenants running with the land in furtherance of redevelopment plans. NOW,THEREFORE,the parties hereto agree and covenant as follows- Page 1 of 9 4!s:4-99Agree:5iay:Dvc1ara RLS 99-346 "6" 1. Affordability 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 (120%) or less of Orange County median income, adjusted for appropriate family size. (b) The Property shall be kept available at Affordable Housing Cost (as defined below) to the Covenantor or other persons or families of moderate income. Affordable (lousing 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 (80%)and One Hundred Ten Percent(110%)of the Orange County monthly median income, and Thirty-Five Percent(35%)of the monthly median income of any person or family of moderate income which earns 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 contailied 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 Pro 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 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 o%%mer-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 Page 2 of 9 4/s:4-99Agree:Stay:MOM RLS 99-346 5126 9 Affordable Unit,provided that 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 TWES IN SETTING THE TRANSFER PRICE TfIE PRIMARY OBJECTIVE OF THE AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST. Cov nfitor 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 Covendnts. 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.'a:4.99Agr=S1ay:tkc1ara RLS 99-346 5126199 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%vith 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." (e) 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, Iease, 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 othenvise permitted. The convenants in this paragraph 3 shall run with the land in perpetuity. 4. Covenants Do Not Impair Lien. No violation or breach of the covenants, conditions, restrictions,provisions or limitations contained in this Declaration shall defeat or render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security interest. 5. Covenants For Benefit of City and Agena. 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 Page 4 of 9 4'sA-99AgrM:S12y: MJ2ra RtS 99-346 S.W99 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 maybe enforced at law or in equity at any time in perpetuity. IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized, this I y day of J&Nr _ 19q'? . COVENANTOR h,,�l J--- A,�;4 ' M�FANIV STAY APPROVED AS TO FORM: . 1�Y A �tency Counsel t� Page S of 9 4.'s:4-99Agree:SIay:Dcdara RLS 99-346 3126'99 STATE OF CALIFORNIA ) ss COUNTY OF f—)r-A0tg, 11 On Q �1 c. before me, rj�[ (name,title,e.g., "Jane Doe,Notary Public"), personally a geared (name(s)ofsigner(s)), personally known to be--OR-- proved to me on the basis of satisfactory evidence e the person(s)whose name(, i re-subscribed to the within instrument and ac owledged to me that 11 o hu th y executed the same i ht •ir authorized capacity(ies),and that b i e eiL signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s)acted, executed the instrument. Witness_Ty Band and official seal. PAMELA D. CARRCLL Comm.11175115 N(our NOTARY PURILIC-CAttFORRIA Orange 1 untyMarc ` (WMSignature o ota ") Comm.Erpu4s lfuth 5,2002"'� CAPACITY CLAIMED BY STGNER: Individual Corporate Ofticer(s): 6 - Title(s) Partner(s): Limited General Attorney-in-Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Person(s)or Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHNIENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE A"ACHEi� M THE_DOCUMF,_NT_ Number of Pages DESCRIBFD Date of Document AT RIGIIT: Signer(s)Other Than Named Above: Page 7 of 9 41s:4-99AVecStay Dec Cara RLS 99.346 5126199 ORDER NO. 139083-6 EXHIBIT "A" PARCEL 1 : AN UNDIVIDED 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 AUGUST 25, 1994, AS INSTRUMENT NO. 94-0525335, OFFICIAL RECORDS OF ORANGE COUNTY OVER LOT I OF TRACT 14828, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 706 PAGE (S) 27 TO 29 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM ALL OIL, GAS, MINERALS, AND OTHER HYDROCARBONS BELOW A DEPTH OF 500 FEET, WITHOUT THE RIGHT OF SURFACE ENTRY, AS RESERVED IN INSTRUMENTS 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 : NON-EXCLUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENJOYMENT, DRAINAGE, ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS AND FOR OTHER PURPOSES, ALL AS DESCRIBED IN THE DECLARATION OF COVENANTS, CONDITIONS, RESTRICTIONS AND RESERVATION OF EASEMENTS FOR PACIFIC PARK VILLAS, RECORDED AUGUST 25, 1994, AS INSTRUMENT NO. 94-0525336, OFFICIAL RECORDS. PARCEL 4 : EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS 1 AND 2 REFERRED TO ABOVE, FOR BALCONY OR PATIO PURPOSES, OVER THE AREAS DEFINED, DEPICTED AND ASSIGNED ON THE PLAN. EXHIBIT A LEGAL DESCRIPTION OF PROPERTY [To Be Inserted] Page 9 of 9 4.?v4-99Agrcc:Stay:Declara RLS 99-346 S.W99 CERTIFICATE OF PROPOSED TRANSFEREE THIS FORM MUST BE DELIVERED TO THE AGENCY BEFORE PROCEEDING WITH ANY TRANSFER OF THE PROPERTY. I , Isn- I. The Proposed Transferee is Names: BRYAN F. STAY Current Address: 18051 Joyful Lane 4205 Huntin on Beach CA 92648 Telephone Number: 2. The address of the property which the proposed transferee desires to purchase is 18051 Joyful Lame,#205, 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 —rT (This figure must ret1cct income from all sources.) (c) The proposed transferee will deliver to the Redevelopment Agency of the City of Huntington Beach a signed financial statement on a form acceptable to the Agency. 4. The proposed transferee's household consists of the following persons who will reside in the Property: Adults(18 or over) - [name of each]: BRYAN F. STAY Page I of 5 4`sW99Agrcc:Stay:Certi Gc RLS 99-345 S."26'99 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 transferees most recent tax return to the U.S. Internal Revenue Service is attached hereto. 7. The terms of the proposed transfer arc: (a) Sales price of This sales price is based on the less of YN {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 !VD/'J 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: $ (If none, so state.) Page 2 of 5 4\s14-99Agree:Slay:Ccr iGc RLS 99-345 5126/99 (e) Sources of payment of sales price: Sales price $_ l�Z�, coo Cash down payment $ 1 st loan $ /O S ODO 2nd loan $ ? s,r O O O Other(describe) $ I Z� 000 Total (f) The financing obtained by the proposed transferee to purchase the Property is as follows: 1 st Loan: Loan amount: $ �Qc7 Monthly payments: $ ��� Oo Interest rate 7 % r if variable interest,describe adjustment mechanism: Due date: Z, O 167 Balloon payment amount: Points and fees: Lender; ��K- Lender's address: ��GUT t Page 3 of 5 4W-94ngree:svy:cruf:c tus 99-345 Srz&99 2nd Loan: Loan amount: 2t Monthly payments: Interest rate if variable interest,describe adjustment mechanism: fly'' Due date: Balloon payment amount: O D-D Points and fees: -� Lender: -&6 Lender's address: p O Other Loans: (describe, if none so state ) -1& h, --- (g) The monthly Purchase Housing Cost to be paid by the proposed transferee: I st loan monthly payment: 5 Ez�'-• c0 2nd loan monthly payment: $ -0 Other loans monthly payment: $ �� Taxes and assessments(1/12 of yearly taxes and assessments): 5- Insurance(1/12 of yearly $_ //✓C �Nr�/ j���iJ �[J�s premium) Homeowner's dues: $ D • ep D Total: $ 7 _-DO Page 4 of 5 4's41-99Agrce:Stay:Ccr ific RLS 99-345 5,126199 8. A true and correct copy of the purchase and sale or other agreement between the o«ner and the proposed transferee is attached hereto. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. PROPOSED TRANSFEREE: Date Signag;-re"BRYAR F. STAY v Signature Print name Print name Street Address Telephone City State Zip Code Page 5 of 5 a sw-99Agree:Stay:Ccrti fic RE S 99-345 512699 EXPIRATION OF RESCISSION PERIODS (Truth in Lending-Real Estate and Home Improvement Loans) Participant(s): BRYAN F. STAY Loan Amount: $35,000.00 _ Address of Residence: 18051 Joyful Lane,#205,Huntington Beach, California_ In connection with the agreement of The Redevelopment Agency of the City of Huntington Beach to make the Loan,which will be secured by a deed of trust on the residence at the above address,each of the undersigned hereby represents as follows: I. The undersigned understands the terms of this Expiration of Rescission Periods Agreement and its attachments. 2. The Redevelopment Agency of the City of Huntington Beach has agreed, subject only to the occurrence of certain conditions,to make the Loan and has delivered to each undersigned a Disclosure Statement setting forth the terms of the Loan and a Notice of Right of Rescission advising each undersigned of their right to rescind and cancel said transaction in accordance with the Truth in Lending Act on or before the date the undersigned has executed this document. 3. Prior to the date shown above, no proceeds of the Loan have been disbursed to or for the benefit of any of the undersigned. 4. None of the undersigned have canceled or rescinded the Loan nor have any of the undersigned notified The Redevelopment Agency of the City of Huntington Beach of any intention to cancel or rescind the Loan. The undersigned request the Redevelopment Agency of the City of Huntington Beach to proceed with the Loan in reliance upon the foregoing representations. 9� P cipant s ignature Date BkYAN F. STAY Page 1 of 1 4VU-99-A grey:S ray:Expi ra RLS 99-346 5,76199 NOTICE OF RIGHT OF RESCISSION Participant(s): BRYAN F. STAY Loan Amount: $35,000.00 Address of Residence: 18051 Joyful Lane,#205, Huntington Beach, California Notice to Participant Required by Federal Law: You have entered into a transaction on [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 Le 11!:1 (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) (Participant's Signature) EFFECT OF RESCISSION. When a participant exercises his right to rescind under paragraph (a)of this section,he is not liable for any finance or other charge,and any security interest becomes void upon such a rescission. Within 10 days after receipt of a notice of rescission,the creditor shall return to the participant any money or property given as earnest money,down payment,or otherwise,and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered Page 1 of 2 4\09-Agree:Stay:Notice RLS 99-346 5r261" 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 tale possession of the property within 10 days after tender by the customer,o%mcrship of the property vests in the customer without obligation on his part to pay for it. ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acknowledges receipt of two completed copies of this Notice. P ,,/)L -103A 6-1l- I I P cipant' Signature V Date Participant's Signature Date BRAN F. STAY Participant's Signature Date Participant's Signature Date Page 2 of 2 4W,99-Agree:Suy:hot ice RLs 99-346 S.'26"94 DISCLOSURE STATEMENT I1`Ve BRYAN F. STAY ("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: • UWe must qualify for a home loan from an institutional lender acceptable to the Agency. • I/We must pay at least 4210 of the home purchase price from our own funds. • I/We must qualify for assistance under the guidelines of the Agency's Program. • UWe as owners of the unit must occupy it for the entire term of the loan. If I/1NVe rent the unit to others, I/We will be in default of the Loan Agreement. I/We further understand and agree that: • I/We will be responsible for repaying the loan with five percent(5%) simple interest per year at the time 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 Uw'e receive the Agency financial assistance, Uwe sell or transfer the home Uwe 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. • V%Ve have a right to cancel or rescind this loan at anytime 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 Page 1 of 2 4's4-99Agrce:Stay:bi sclStm RLS 999-346 5.:6'99 • 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 Mve 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. Uwe assume all responsibility for determining whether Uwe desire to be considered for the Program, and I/we will inform myself/ourselves as to the availability and terms of other public or private loans. • The Agency shall not be charged with knowledge of the contents of the documents of the primary lender. • The Agency financial assistance Uwe receive under this Program may be considered to be income for purposes of federal or state income taxes and the Agency shall not be held responsible for the payment of any taxes which Uwe may incur by virtue of the receipt of such financial assistance. Dated: b` 1 , 19 1 q A"-, , - A Signat 'e of app ' nt BRYA F. STA ' Page 2 of 2 41sA-99Agm:SIay:Di scIStm RLS 999-346 SR699 FROM Panasonic TPA/FAX PHOW NO. Jun. 14 1999 04:28PM P1 John Tollison,Agent Uc 0726768 15650 Devonshire Street, Suite 101 Grwmda Hills,CA 91344 Bus(81&)892-6621 Fax (818)892-2086 To: Dan From: Kaye Millard,Office Manager Fax: 714-843-9949 Pages: 3 Phone: Date: 06114199 Re: Brian Stay--Escrow!! 14730-C CC: ❑ Urgent d ForReview ❑Please Comment O Please Reply D Please Recycle 0 Comments:• Here are the two evidences for both 1" 2"d mortgagee for Brian Stay. Do you want these mAe,d to you or will a fax provide you with what you need. Thanks. Ka e FROM : Panasonic TAD/FAX PHOf,C NO. Jun. 14 1999 04:29PM P3 92-NT-6180-7 Policy Number EVIDENCE OF INSURANCE Replaced Policy Number ■` CONDOMINIUM/ r*an scar ASSOCIATION POLICY rwaraarr� Coverage afforded by this policy Is provided by the Company indicated below: STATE FARM FIRS 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: Unitowner's Name and Meiling Address STAY, BRIAN A SINGLE MAN 18051 JOYFUL LANE, ##205 HT=INGTON BEACH, CA 92648 Insured's Name and Mailing Address Automatic Renewal- It the Policy Period Is PACIFIC PARK VILLAS shown as 12 Months, this policy will be HOMEOWNERS ASSOCIATION renewed automatically subject to the CIO GOLDEN WEST PROPERTY MANAGEMENT premiums; rules and forms In effect for each 2323 W LINCOLN AVE, STE 219 succeeding policy period. If this policy is ANAHEIM, CA 92801-5100 terminated, we will give you and the Mortgagee written notice In compliance with the policy provisions or as required by law. The Policy Period begins and - 02/13 99 Effective Date ends at 12:01 a.m. Standard 12 Months Policy Period Time at the building locations 01 13 00 Expiration of unless otherwise stated. Policy Period ❑ Noon Standard Tlma Policy Type Basic Form 1 Special Form 3 Limits of Liability Coverage $ 2556900 A Buildings $ 2000000 L Business Liability Deductible In case of a loss we cover only that part $ 1000 of the loss over the deductible stated. Forms, Options & Endorsements FP-6109 SPECIAL FORM 3 FE-6507.1 EXTRA REPLACEMENT COV FE-6536.1 GLASS DED DEL Unitowner Mortasuee STAY Loan Number 2ND MORTGAGEE CITY OF HUNTINGTON BEACH I Agent's Signawre/Counteraignaturs 2000 MAIN STREET 1762 HUNTINGTON BEACH, CA 92648 Agent's Code (818) 892-6621 Telephone Number 06/14/99 Date ebb-Olta.4 AW.ve•a6 FRAM : Panasonic TAD/FAX PHONG NO. Jun. 14 1999 04:28PM P2 Policy Number EVIDENCE OF INSURANCE Replaced Policy Number CONDOMINIUM/ ASSOCIATION POLICY Coverage afforded by this policy Is provided by the Company Indicated below: STATE FARM FIRE AND CASUALTY COMPANY A Stock Company, Bloomington, Illinois ri 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: I Unitowner's Name and Mailing Address STAY, SRIAN A SINGLE MAN 1B051 JOYFUL LANE, 4205 HUNTINGTON 833ACH, CA 92648 Insured's Name and Mailing Address Automatic Renewal- It the Policy Period Is PACIFIC PARK VILLAS shown as 12 Months, this policy will be HOMEOWNERS ASSOCIATION renewed automatically subJect to the C/O GOLDEN WEST PROPERTY MANAGEMENT premiums, rules and forms In effect for each 2323 W LINCOLN AVE, STE 219 succeeding policy t)erlod. If this policy is ANAHEIM, CA 92801-5100 terminated, we will give you and the Mortgagee written notice In compliance with _ the policy provisions or as required by law. The Policy Period begins and 01/13/99 Effective Date ends at 12:01 9.m. Standard 12 Months Policy Period Time at the building locations 01 13 00 Expiration of unless otherwise stated. Policy Period Noon Standard Time Policy Type Basic Form 1 Special Form 3 Limits of Liability Coverage $ 2556900 A Buildings S 2000000 L Business Liability Deductible in case of a loss we cover only that part $ 1000 of the loss over the deductible stated. Forms. Options & Endorsements FP-6109 SPECIAL FORM 3 FE-6507.1 EXTRA REPLACEMENT COV FE-6536 .1 GLASS DED DEL Unitowner Mortgagee 6234604996 Loan Number BANK OF AMERICA, 744 ITS SUCCESSORS AND/OR ASSIGNS Agent's Signature/Countersignature P O BOX 57060 1762 IRVINE, CA 92619P7060 Agent'a Code (818) 892-6621 Telephone Number 06/14/99 Date 4EB-9„r.4 MY.0e-115 i 0�� > CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department DATE: June 3, 1999 TO: Janelle Case,Deputy City Clerk FROM: Gus Duran, Housing and Redevelopment Manager SUBJECT: Barbara Wallace Loan Substitution with a Loan for Brian Shay 18051 Joyful lane 4205, Huntington Beach Please be informed that the First Time Home Buyer Loan made to Mary Joe Wallace will be reconveyed when escrow closes on the sale of her home. The loan will then be substituted with a new borrower, Brian Shay,who will sign new loan documents. After the docum.-nts are executed by Mr. Shay,they will be sent to the Redevelopment Agency for execution. After escrow closes and the new loan is recorded the documents will be coming back to your office for safekeeping. A new file for Mr. Shay should then replace Ms. Wallace's file. Attached are letters sent to the escrow company to carry out the abovementioned exchange of the Ioan for the property at 18051 Joyful Lane 4205 in Huntington Beach. Should you have any questions or need further clarification,please feel free to contact me extension 1529. City of Huntington Beach 2000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF ECONOMIC DEVELOPINiENT Director 714/536-5582 Redevelopment 714/536-5582 FAX 7141375-5087 Housing 714/536-5542 DEMAND June 1, 1999 Linda Campbell Escrow Officer Tiempo Escrow 19093 Beach Boulevard Huntington Beach, CA 92648 RE: Trustor. Barbara Wallace Property: 18051 Joyful Lane #205 Huntington Beach, CA 92648 Dear his. Campbell: Attached please find the original Note, Trust Deed, as well as documentation clarifying the loan documents and Deed of Trust. The outstanding loan amount as of June 1, 1999 is 39.000(jhirty Nine Thousand Dis.)The $35,000 amount is a loan that the new buyer, Mr. Bryan Stay is assuming via the execution of new loan documents, which are attached. The $4,000 is the equity share amount owed by Ms. Wallace as per the terms of the "Rider to Deed of Trust to the First Time Homebuyer Down Payment Assistance Program"entered into by Ms. Wallace on August 13, 1996, in which she agreed to the equity share amount of 50% of the difference between the "Sales Price' and the Purchase Price" Should you have any questions, please do not hesitate to contact me at (714) 374-1529. Sincerely, Gustavo A. Dur6n Housing and Redevelopment Manager 611/Mus Dur2n:1toudc;Dcmwa11a.Doc w City of Huntington Beach 2000 MAIN STREET CALIFORNIA92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Director 7141536-5582 Redevelopment 714/536-5582 FAX 7141375-5087 Housing 7141536-5542 June 3, 1999 Linda Campbell Escrow Officer Tiempo Escrow 19093 Beach Boulevard Huntington Beach, CA 92648 RE: Trustor: Brian F. Stay Property: 18051 Joyful Lane #205 Huntington Beach, CA 92648 Enclosed please find the loan documents for Mr. Brian Stay. As you are aware he is obtaining an new loan by virtue of his assumption of the loan from Ms. Barbara Joe Wallace. Because he desired to obtain new documents, Ms. Wallace payment of the loan to the Redevelopment Agency will go towards the purchase price from Mr. Stay. Please have the documents signed by Mr. Stay. Date all documents as per the instructions and return them to me as soon as possible so that I may have Redevelopment Agency officials countersign the documents. ! will then have them returned to you for escrow closing and recordation. If you have any questions, please don't hesitate to contact me at(714)374-1529. Since ly, Gu tavo . Durbn Housing and Redevelopment Manager i fir+ CITY OF HUNTINGTON BEACH Inter-Department Communication TO: Gus Duran, Economic Development FROM: Gail Ilutton,City Attorney DATE: June l, 1999 SUBJECT: Determination of Loan Forgiveness RLS 99-359 INDEX: BACKGROUND You have asked for a determination of whether several loans made by the City of Community Development Block Grant funds, for the first time home buyer down payment assistance program, are forgivable. ISSUE Are the nine loans forgivable? ANSWER Yes, if they were funded with the first S100,000 appropriated for this program. ANALYSIS As part of the 1993-94 CDBG program the City Council approved S100,000 as a pilot program to provide do%,.m payment assistance to moderate income households. We have reviewed several RCAs submitted by your department to the City Council for implementation of this program. The RCAs we reviewed were the originals in the City Clerk's office. From our review of these documents,we have developed the following chronology: 10/25/93:The City Council approved sample loan documents and four participants: Diane Culaciati,Michele Tullock, Osman Taban,and Caroline Sutherland in the total amount of S40,475. (RCA attached hereto as Attachment 1). 1 4.'s:4-99%1 emus: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). 12/6/93:The City Council approved three more participants in the original program: Michelle Schmaderer,Carol Kanarski, and Nicholas Kormeluk. The amounts of their loans are not listed.' (RCA attached hereto as Attachment 3.) 12/20/93,Item E-17:The City Council approved an additional participant in the program, David Dixson, for the amount of$10,000,and increased the amount for participant Nicholas Kormeluk from$8,600 to S10,600. (RCA attached hereto as Attachment 4.) 12/20/93,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. 1/3194:The City Council approved three more participants in the original,non-repayment program:Judy Young,Treva Love, and Ellen Ommondson, in the total amount of S31,000. When added to the previously committed amount of 573,952,the total amount of funds committed is$104,952. This exceeds the original S100,000 appropriated for the original,non- repayment program. The analysis portion of this RCA states that"the approvals herein will be the first funded with the new appropriation,"which implies that at least a portion of the funds used for these participants were part of the funds that were conditioned for repayment,as opposed to the original,non-repayment funds. However,the total numbers listed are roughly consistent with the original$100,000 set aside for the grant program. The total amount of loan funds used is less than$5,000. (RCA attached hereto as attachment 5). Our review of the above documents and chronology of events indicates that the Council did not intend to require repayment of the original$100,000 appropriation. Clearly,then,the loans made to Culiaciati,Taban, Sutherland, 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 S26,048 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 t Note that an attachment to this RCA lists tern approved participants, Since the dates listed are after the Council meeting of 12/6193,we believe that this list has been erroneously Added to the 1215/93 RCA. 2 Please note that earlier during the same meeting,the Council had also approved David Di.:cson for S 10,000,and an additional S2000 for Kormeluk. Thus the amount committed from the original S 100,000 was actually$73,952. 2 4's:4.99%1rnas:Duran327 i 1 �1 L 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 two conflicting Council actions. The Council's intent was to include participants Young,Love and Ommondson in the original, forgivable loan program. However,it appears that a portion of the funds actually used for the loans to Young,Love and Ommondson were from the second appropriation of funds,which included a repayment condition. Therefore,we recommend that the Council clarify this conflict by approval of an RCA that forgives the loans made to Young,Love and Ommondson. Gail Hutton City Attorney 3 44:4-Mi r=s:Durar:527 : � 1 Council/Agency Meeting Held: L ca0.3p Deferred/Continued to: Ap roved ❑ Conditionally Approved ❑Denied City Clerk's Signature Council Meeting Date: 8/05196 Department ID Number: ED 96-50 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS ����,, SUBMITTED BY: MICHAEL T. UBERUAGA, Executive DirectorV'h� PREPARED BY: DAVID C. BIGGS Director of Economic Development , p 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,Attachrnent(s) Statement of Issue: The Agency is committed by a Disposition and Development Agreement to provide second trust deed loans to moderate income buyers in the Pacific Park Villas located in the Talbert-Beach Redevelopment Project Area. Funding Source: Redevelopment Agency Housing Set-Aside Funds, Account Number E-TX-ED-923-7-75-00. Recommended Action: Motion to: Approve the borrower listed on the attached by name, the amount of the loan, and the specific property subject to trust deed and authorize the Chairperson and Agency Clerk to execute the loan documents between the Agency and the participant as prepared by the City Attorney. Payment to be made to Tiempo Escrow on behalf of Barbara Jo Wallace in the amount of $35,000.00. Alternative Action(s): Do not approve the participant. " a`v REQUEST 6 REDEVELOPMENT AGE ACTION MEETING DATE: 8105196 DEPARTMENT ID NUMBER: Analysis: On June 3, 1993, the Redevelopment Agency approved a Disposition and Development Agreement (DDA) between the Agency and Sassounian Capital Ventures Inc., calling for the completion of 38 condominiums on a site in the Talbert-Beach Redevelopment Project Area. Under the DDA, $750,000 of Redevelopment Housing funds are committed to assist up to twenty-five moderate-income buyers in the Pacific Park Villas Condominium project. Environmental Status: Attachments : City Clerk's Page 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 RCAWALLA.DOC -2- 07/19196 8:40 AM REQUESTYOR REDEVELOPMENT AGEWY ACTION MEETING DATE: 8105196 DEPARTMENT ID NUMBER: DOWN PAYMENT ASSISTANCE PROGRAM Location of Property Loan Name Amount Sublect to Trust Deed 96-05 Barbara Jo Wallace $35,000 18051 Joyful Lane, #205 Note- 1. Borrowers have received "conditional loan approval" from first trust deed lender. 2. Pursuant to Agency direction, overtime and bonuses are considered indefinite sources of income and may or may not be used to qualify borrowers on a case-by case-basis. RCAwALLA.noC -3- 07124196 2:16 PM e LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 5 L_day of 19 by and between BARBARA JO WALLACE("Participant") and the RED VELOPINiENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Agency"). RECITALS A. Participant has entered into an agreement(the "Purchase Agreement")to purchase that certain real property commonly known as 18051 Jo Al Lane #205 Huntington Beach, California, and more particularly described in Exhibit A attached hereto and incorporated herein (the "Property"). B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and currently earns less than 120% of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to the Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. The Agency desires to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach (the "City"). E. The Agency wishes to lend, and Participant wishes to borrow,Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: 1. Agency Agengy Loan. The Agency shall loan to Participant (the "Agency Loan")the amount of Thirty-fire Thousand Dollars (S35,000.00) 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 TIEKPO ESCROW, INC., A CALIPOPIM CORPORATICN (the "Escrow Agent") (Escrow No. 9442-4C . 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 ds'G:4-96-Agree:V+'slluc:loanagee 3 0��_L R S 96-523 //""`` i 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 Propertv. 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%ith 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 Refinanciniz. 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 Ionger 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 Sharinc. 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(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 4's•G:4-96-Agee'N'allace:loanagee _ RLS 96-323 W26.96 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%) 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 (29%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent(26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) Loan Agreement Page 3 of 8 ,Vi•0:496-Agee:Wallace:loanagree RLS 96-523 716,96 V 20. After twenty-third anniversary but prior to twenty-fourth anniversary: twelve percent (12%) 21. Ater 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. Ater twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars ($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 4' Page 4 of 8 s`G:4-96-wee:Wallace:loanagee M 96-523 7,76•'96 A. Equity Share Upon Sale or Transfer. The Equity Share Amount shall be payable to the Agency upon sale or transfer of the Property to a person or persons(the "Buyer") whose income exceeds 120% of the current annual median income for the Orange County area. If the Buyer does not submit an income verification statement to the Agency, the Buyer shall be deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the Equity Share Amount shall not become payable. B. Equity Share Upon_Refinancing_or Failure to OccuM. 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. Inc9me 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 prodded 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 Servicin . The Agency may contract with a private lender to originate and service the Agency Loan. S. 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.A9=:W111A:e:10ana9= RLs 96-523 7126.'96 V shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns. In addition, not less than three percent (3%)of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 9. Covenants. Participant and the Agency shall execute and have recorded in the Official Records of Orange County, California, a "Declaration of Conditions, Covenants and Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated herein, in which Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health& Safety Code Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Agency and the City. 10. Non-Waiver. Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 11. Indemnification. The Participant shall defend, indemnify and hold harmless the Agency and the City of Huntington Beach and their respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the Agency or the City to make such payments, by virtue of the Agency Loan. 12. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty(30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty(30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty(30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required go protect against further damages, the injured party may not institute proceedings against the party in default until thirty(30) days after giving such notice. Failure or delay in giving such notice shall not constitute" a waiver of any default, nor shall it change the time of default. 13. Documents. Participant is aware that the Agency has prepared certain documents to implement the Program and secure repayment of the Agency Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Agency Loan: Loan Agreement Page b of 8 4's'G:4-96-Agrcc:wattacrloan3vu RLS 96-323 7,26'96 (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 shaII 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. Agena May Assign. Agency may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 18. Participant Assignment Prohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous Loan Agreement Page 7 of 8 CfG:4-96-Agree RWallace:toanagree RLS 96-523 7,'26,96 i 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: � dcou Printed Name: Date: , 19 By: Printed Name: Date: , 19 By: Printed Name: THE REDEVELOPMENT AGENCY OF THE CITY OF HU TTINGTON BEACH, a public body corporate and politic Dater 19-2(0— By: 7��e� Chairman ATTEST: APPROVED AS TO FORM: Agency Clerk ,�Agency Counsel REVIEWED AND APPROVED. INITIATED AND APPROVED: C. ExecutiN Director Director of Economic eveiopment Loan Agreement Page 8 of 8 4 i G:4-96-Agree:Wallace:loanagree RL5 96-523 7126,96 r EXHIBIT A LEGAL DESCRIPTION OF PROPERTY PARCEL 1: - i An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to i 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 1 25, 1994 as Instrument No. 94-0525335 of official Records of Orange County, over Lot I of Tract No. 14828, in the City of Huntington Beach, County of Orange, state of California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, gag, 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: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336 of official Records. Parcel 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas:defined, depicted and assigned on the Plan. Exhibit A to Loan Agreement Pagel of 1 4,s ee:?.Iu&olis:£xhihi:A`.o7f26196 EXHIBIT B EROMISSORY NOTE $ 35,000.00 Huntington Beach, California AUGUSr 5'I't3 , 19 36 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-fire 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. Maturijy Date The balance of all unppaid principal and accrued interest shall be due and payable on Autsr Sift . 20 Z6 (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 4'a41-96AVft:R'a11aaa:E9MbitB RLS 96.523 7126.96 � � y 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 Cull 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. — 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 � 5, 19 (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. Maker 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%%ithheld 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 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%4-96Agrec:W&11ace ExhibilD RLS 96-323 7126.96 11. Successors Bound This Promissory Note shalt be binding upon the parties hereto and their respective heirs, successors and assigns. "MILKER" By: Printed Name: HAPBAM JO WALLAr By: Printed Name: By: Printed Name: "Exhibit B" to Loan Agreement Page 3 of 3 4'a'4-96Agrec:Wa1lace:ExhibitB RLS 96-523 7126,96 RECORDING REQUESTED BY Recorded in the county of orange, California AND WHEN RECORDED RETURN TO: Gary L. Granville.l Clerk/Recorder 1111[11111,11[]1111'i 1.111.C11 :111'111.11„11 6 5.0 0 Redevelopment Agency of the City of 19960433917 MOM 08/23/96 Huntington Beach 006 700124E 07 22 ©2000 Main Street i l A36018 0 14.00 0.00 S t .40 0.00 0.00 0.00 Huntington Beach, California 92648 Attn: Agency Clerk ) [Space Above Pus Line For Rcoor&Ys the I This document is exempt from recording fees pursuant to Government Code Section 6103. V V DEED OF TRUST WITH ASSIGNMENTS OF RENTS 1(i �j �i THIS DEED OF TRUST is made this STe day of-Aug., 19 36, by and among d" BARBARA JO WALLACE, whose address is 18051 Joyful Lane, #205, 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 V 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 R'ITH: (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 fi-ctures, (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. 711IS DEED OF TRUST IS SD03ID AND SUBJECT ZD A FIRST DEED OF Z'faJST I IF, RMC co"a RRFNTLY IMTI7H. M � Pagel of 15 (� 4'LS 9696agree:V�'aI]ace:Exhi6itC RLS 96-323 7/26196 A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of Thirty-five Thousand Dollars (S')5,000.00)with interest thereon according to the terms of a Promissory Note of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof. 2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes, or(b) as may be added to the indebtedness secured hereby in accordance with the provision of this Deed of Trust. 3. Performance of each and every obligation, covenant, promise or agreement of Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated ALKTJST 5 , 19.96 , insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor(or of any successor-in-interest of the Trustor to said property)to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not,whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST,TRUSTOR AGREES: I. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at 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 Kith such property and not to permit any mechanic's lien against such property;to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon;not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; t Page 2 of 15 4V-G:4-96aga:Wa11ace:ExhibitC RLS 96-523 7l26'96 4 ice/ (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 givert 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 (IS)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. Z. 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 h Itto 10 t Page 3 of 15 4s'G:4-96agnv:V1 A]acr:Exhihi1C RLS 96-523 711696 i of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a) at least ten(10)days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c)when done, all encumbrances,charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (0 for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so gFeefflnt. Page 4 of 15 4Vs'.G:4-96agree:Wallace:ExhibitC RLS 96-523 7:26-96 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,A ith any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or Page 5 of 15 4'a'0:4-96aplee:Wallace:ExhibitC RIS 96-523 7,1696 thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee%%ith 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 dose 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 -Ce-GA-96sgree:W&1!Am:ExhibitC RLS 96-523 7/26196 to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for 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 4\s\G:4-96agree:Wallace:ExhibitC RLS 96-523 7/26/96 Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said 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 ail 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 ,J-Tnxhibit_�tol.Qan Agreement Page S of 15 4-,eG:4-96agrce:Wsilace:ExhibitC RLS 96-523 7/26,96 been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the 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 Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable. 23. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to --'=F�hibit--"to-fea1�-Ag�eement__ Page 9 of 15 4\s\G:4-96agree:Wallace:ExhibitC RLS 96-523 7/26/96 V 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 IVILACE By: By: APPROVED AS TO FORM: - A-, ' - Agency Counsel 14<0 7 FEMM-greement Page 10 of 15 4's'.GA-96agmc:W&IIa o:ExhibitC RLS 96-523 WX'96 RIDER TO DEED OF TRUST FIRST TIME HOMEBUYER DOWN PAYMIENT ASSISTANCE PROGRAM[ This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUG= STU_ , 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 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 (501/6) 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%) 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%) Page 11 of 15 4'e-0:4-96agree:W allace:ExhibitC RLS 96-523 7/26196 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%) 11. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent(20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent(16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent(14%) 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%) grcaenzeat-� Page 12 of 15 4`s.G:4-96agrec:W atlacc:ExhibitC RLS 96-323 7/26196 r 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 Iist 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 Trustoes 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-Gr=tc, oan-Agreement- Page 13 of 15 4's`.0:4.96agree:Wallace:ExhibitC RLS 96-523 7126.'96 Property as of the time of such transfer or refinancing. Dated: AU= 13, 1996 TRUSTOR tax BAPaAm j6 wALLACE APPROVED AS TO FORM: Agency Attorney Page 14 of 15 4'tG:4-96agree:Vt'alla":ExMbitC RLS 96-523 T,'26.'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 AUC= 5 , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand dollars ($35,000.00) (the"Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the deed of trust 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: AUCUST 13, 1996 TRUSTOR: APPROVED AS TO FORM: BARBAM Jo LACE z Ll �y &,6�. Agency Attorney 7'Zy yb u greement..... Page 15 of 15 4's`.G:4-96agrec:IL'allace:ExhibitC RIS 96-523 7.76.96 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE Or CALIFCFeM I SS.COUNTY OF � Or: AUGUST 13, 1996 before tire, the undersigned, personally appeared BARBARA Jo WALLACE personally known to rite (or proved to rite on the basis or satisfactory evidence) to be the person(s) whose name(s) Is/are subscribed to the within Instrument and acknowledged to ine that helshelthey executed the same In hislherltheir authorized ca-pacity(ies), and that by his/her/their signatures) on the instrument the persons) or the entity upon behalf of which the person(s) acted, executed ltle Instrument. WITNESS my hand and official sear. (r tits area for orftclat notarial seal) LINDA J.CAMPBS1 = Signatur m ;L CO .# 1045344 rp _ � NOTA PUBLIC COUNTY ORANGE LINDA J. CAMPBELL "... My Comm.Evirea DEC.20.1908 rrrrrrrrrrrrrrrrrrlrrrrrrrrrrrrrrrrrrrr OPTION rrrrrrrrrrrrrrrr rrrrrrr rrrrrrrrrrrrr 71 Though the data below are not required by law, they may prove valuable to persons retying on the document and could prevent the fraudulent reattachment of this forin. Capacity Claimed By Signer Description of Attached Doccttmettt dndividual ❑ Corporate Officer lltles(s} 1 Itle or Type of Document ❑ Pariner(s) L7 Limited ❑.General ❑ Attorney-in Tact ❑ Trustee(s) Humber of Pages ❑ Guardian/Conservator ❑ Other: Date of Document Signer is Representing: Namo of Person(s)or Entity(les) Signer(s)Other Tt+an Named Above . r EXHIBIT A TO AGENCY DEED OF TRUST LEGAL DESCRIPTION PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to all of the Common Area defined in Declaration referred to below and described in the . ; condominium Plan (*Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as instrument No. 94-0525335 of Official Records of Orange County, over Lot 1 of : � Tract No. 14828, in the City of Huntington Beach, County of Orange, State of California, as per map filed in Book 706, Pages 27 to 29 of miscellaneous maps, in the office of the County Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon . substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2s Unit 110. 22 consisting of certain airspace and surface elements, as shown and described in I 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 11o. 94-0525336 of official Records. Parcel 4s Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas'defined, depicted and assigned an the Plan. "Exhibit A"to Agency Deed of Trust Pagel of 1 4JO:Agee:\largolis:ExhCDec4D7126.'96 RLS 96-127 DEED CERTIFICATION This is to certify that the interest in real property conveyed by the Deed dated August 5, 1996 from BARBARA JO WALLACE, to the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic, is hereby accepted by the undersigned officer or agent on behalf of the Agency pursuant to the authority conferred by Resolution No. 76 of the Agency adopted June 20, 1983 and the grantee consents to the recordation thereof by its duty authorized officer. Dated: August 19, 1996 REDEVELOPMENT-AGENCY OF THE CITY OF HUNTINGTON BEACH CONNIE BROCKWAY, CMC CLERK ey: Clerk V CASE COMPLETE THIS INFOR�flK 1 Ce R5 •� D "1 �..+ alCOROIKG f1E0UESTI O BY: Recorded in the County of Orange. California Gary L.. Granville, Clerk/Recorder anctn•ntal Lawyers Title Company I�111:��11�1.1:1.11::�11�!lllf'i;ll�;l:l:l��'1I:'I�;ll; 3i.aa AND WHEN RECORDED MAIL TO: p0�s 7oot248 ©� 229960433918 2:56pn 08/23/96 2 9 7.00 24.00 0.00 0.00 0.00 0.00 REDEVELOPH U AGEI C.'Y OF TILE CITY OF HUNTINGYM BFACII 2000 Main Street Ihmtington Beach. f.'.a 92648 ATIN: Agency Clerk THIS RA FOR # RONLY DI]-LARATION OF COMITIONS, COVENANTS AND RESTRICTIONS lUR PIUPEFZPY o I t Continental Lawyers Title Company r o . Subsidiary of Lau)yersTifleInsurance &o )orafion THIS pal ADDED TO MOYIDE ADEQUATE SPACE FOR RECORDI>rn waltvxnu (A iltleaal f'l44"I"fee 091042) +E." DECLARATION OF CONDITIONS. COVENANTS AND RESTRICTIONS FOR PROPERTY RECORDING REQUESTED BY ) AND «'HEN RECORDED MAIL TO: ) } 1 ) } (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 REDEVELOPUENT 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 AU= 5 , 19 96 , (the "Agreement," a copy of which is on file with the Agency at its offices and is a public record) pursuant to which the Covenantor has agreed to subject certain real property(referred to in the Agreement and referred to herein as the "Property") described in the "Legal Description of the Property" (which is attached hereto as Exhibit "A" and incorporated herein by this reference) to certain covenants, conditions and restrictions. B. The Community Redevelopment Law(California Health and Safety Code § 33000 et seq.)provides that a redevelopment agency shall establish covenants running v%1th the land in furtherance of redevelopment plans. NOW,THEREFORE, the parties hereto agree and covenant as follows: Page 1 of 9 4`s G:4-96Agree:WaIlace:ExhibitD RLS 96-523 7.19.96 T 1. Affordability Covenants. Covenantor agrees for itself, and its successors and assigns, and every successor to Covenantoes interest in the Property, or any part thereof that for thirty(30)years from the date of recording of the Deed of Trust in favor of the Agency regarding the Property (the "Expiration Date"): (a) The Property shall only be owned and occupied by Convenantor or by other persons or families of"Moderate Income." "Moderate Income" shall mean persons or families earning One Hundred Twenty Percent (120%) or less of Orange County median income, adjusted for appropriate family size. (b) The Property shall be kept available at Affordable Housing Cost (as defined below) to the Covenantor or other persons or families of moderate income. Affordable Housing Cost shall mean, as to each person or family of low or moderate income, that purchase price which would result in monthly housing payments which do not exceed an amount under any currently prevailing conventional home mortgage lending rates applied by any reputable institutional home mortgage lender, or the lending rates of any government-subsidized or special mortgage program for which such person or family qualifies and has obtained a first trust deed loan, which do not exceed thirty-five percent (3 5%) of One Hundred Ten Percent (110%)of the Orange County monthly median income for those persons and families of moderate income (as determined by the United States Department of Housing and Urban Development)earning between Eighty Percent (80%) and One Hundred Ten Percent (110%) of 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 f Pro 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 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 certif ring 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 -*E-x r --D 9- 5- Page 2 of 9 4's G:4.96Agree:%Vallace:ExhibitD Ris 96-523 7.79 95 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 TEMIS 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 LVHICH 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 ANT 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. 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 follot4•ing 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 kw Page 3 of 9 ,F,e.G:4-96Apree:Wallace:ExhibitD RLS 96-323 7/291% 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, Iessees, 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«1th 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. 5. Covenants For Benefit of City and A enc . 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 nt Page 4 of 9 ,Ve.o:i-96Agree:v'allace:ExhibitD 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 IITMREOF, the Covenantee and Covenantor have caused this instrument to bemtgFd on their behalf by their respective officers hereunto duly authorized, this 13 day of 119 COVENANTOR 4�,a Gt�G1�u� BAR" JO WALLACE APPROVED AS TO FORM. Agency Counse ;y G,1jc,,4, Page 5 of 9 4Ci.0:4-96Agree:W allau:ExhibitD RLS 96-523 7R9S6 STATE OF CALIFORNIA ) } ss COUNTY OF a W= On- AIX= 13, 1996 ,before me, LINDA J. CAMPBELL (name,title,e.g., "Jane Doc,Notary Public"), personally appeared BARBARA JO WALLACE (namc(s)of signer(s)), personally known to be--OR— xK proved to me on the basis of satisfactory evidence to be the person(s)whose namc(s) is/are subscribed to the within instrument and acknowledged to me that he/shc/they executed the same in hislher/thcir 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. NV'tn ss m%.hand and official seal. cc LINDA J.CAMPEELL = COMM.91045344 /Y p _ NOTARY PUELIC•CALIFORNIAALIFORN �] ��i+�t'7,* OAAhGE COUNTY (Signs c of Notary) M+Cart.Expires DEC.20.1999 LINDA J. CAMPBELL CAPACITY CLAIMED BY SIGNER: XX Individual Corporate Officer(s): TitIe(s) Partner(s): Limited General Attorncy-in-Fact Trustce(s) Guardian/Conscrvator Other SIGNER IS REPRESENTING: Name of Person(s)or Entity(ies) ATTEKTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACMIENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE Title or Type of Document DECLARATION OF CONDITICUS, CDVEH 'r'S MUST BE ATTACHED AND RFSMICTICKS IF`OR PROPERTT TO THE DQCUMENT_ Number of Pages DESCRIBED Date of Document AU= 5,, 1996 AT RIGHT: Signer(s)Other Than Named Above: Page 6 of 9 4WGA-96Agr": &11&ce:ExhibitD RIS 96-323 7129.96 STATE OF CALIFORNIA ) ss COUNTY OF On _ ,before me, {name,title,e.g., "Jane Doe,Notary Public"), personally appeared {namc(s)of signer(s)), personally known to be--OR-- proved to me on the basis of satisfactory evidence to be the person(s)whose namc(s)is/arc subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/thcir-authorized capacity(ics),and that by his/her/their signatures) on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the instrument. Witness my hand and official seal. (Signature of Notary) CAPACITY CLAIMED BY-SIGNER: Indi-6dual Corporate Off ccr(s): Title(s) Pariner(s): Limited General Attomey-in-Fact Trustee(s) Guardian/Conscrvator Other SIGNER IS REPRESENTING: Name of Persons)or Entity(ics) ATTENTION NOTARY: Although the information requested bclo%v is OPTIONAL,IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. TI RS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUtiSENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signer(s)Other Than Named Above: Page 7 of 9 Ri-GA-96Agw:Wa'.1acc:ExhibitD RLS 96-323 7129196 C w STATE OF CALIFORNIA ) ss COUNTY OF On ,before me, (name,title,e.g., "Jane Doe,Notary Public"), personally appeared (namc(s)of signer(s)), personally kno%vn to be--OR— proved to me on the basis of satisfactory evidence to be the person(s)whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/their signature(s) on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the instrument. Witness my hand and official seal. (Signature of Notary) CAPACITY CLAIMED BYSIGNER: Individual Corporate Officer(s): Titic(s) Partner(s): Limited General Attorney-in-Fact Trustee(s) Guardia:YConsen•ator Other SIGNER IS REPRESENTING: Name of Persons)or Entity(ics) ATTENTION NOTARY: Although the information requested bolo«is OPTIONAL,IT COULD PRE%=L FRAUDULENT ATTACHMENT OF TIQS CERTIFICATE TO ANOTIIER DOCUMENT. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages DESCRIBED Date of Document AT RIGHT: Signers) Other Than Named Above: Page S of 9 4`s.G:4-96Agret-.Wallaae:ExhibitD RLS 96-323 7l29:"96 r EXHIBIT A LEGAL DESCRIPTION OF PROPERTY [To Be Inserted] LEGAL DESCRIPTION EXHIBIT "A" ; i PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to ' l all of the Common Area defined in Declaration referred to below and described in their condominium Plan (*Plan*) for Lot 1 of Tract No. 14828, which Plan was recorded on August 1 25, 1994 as instrument No. 94-0525335 of Official Records of Orange County, over Lot 1 of 1! 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 t1o. 22 consisting of certain airspace and surface elements, as shown and described in j 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 an 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. Page 9 of 9 tSG:4-96Agree:Wa:1ace:E-d ibitD RLS 96-323 7,79.196 EXHIBIT E DISCLOSURE STATEMENT INWe BARBARA JO WALLACE ("Applicant")understands and agrees that the pro-6sion 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: • UWe must qualify for a home loan from an institutional lender acceptable to the Agency. • IAVe must pay at least 3 % of the home purchase price from our own funds. • IAVe must qualify for assistance under the guidelines of the Agency's Program. • IAVe as owners of the unit must occupy it for the entire term of the loan. If IAVe rent the unit to others, TAW will be in default of the Loan Agreement. IAVe further understand and agree that: • IAVe will be responsible for repaying the loan Aith five percent (51/6) 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%Nrithin thirty(30)years from the date I/we receive the Agency financial assistance, Uwe sell or transfer the home Uwe 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, I/we 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 4's'.G:4-96Agret:WAllace:ExhibitE PIS 96-323 9r29:96 V • The Agency will not require melus to make payments of principal or interest during the term of the loan. The full balance of principal and interest 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 I/we purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The Agency cannot ensure that information provided by or on behalf of Applicant will be kept confidential. • The Agency shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program.• Uwe assume all responsibility for determining whether I/we desire to be considered for the Program, and I/we will inform myselflourselves as to the availability and terms of other public or private loans. • The Agency shall not be charged with knowledge of the contents of the documents of the primary lender. • The Agency financial assistance Uwe receive under this Program may be considered to be income for purposes of federal or state income taxes and the Agency shall not be held responsible for the payment of any taxes which Uwe may incur by virtue of the receipt of such financial assistance. Dated: 8/13/ 19 96 Signature of applicant BARBARA JO WALLACE "Exhibit E" to Loan Agreement Page 2 of 2 4'f G:4-96AgrrceMAIace:ExhibitE RLS 96-523 7,29.'96 EXHIBIT F NOTICE OF RIGHT OF RESCISSION Participant(s): BARBARA JO WALLACE Loan Amount: $33,000.00 Address of Residence: 18051 Jo 1 Lane #205 Huntinglon Beach California Notice to Participant Required by Federal Law: You have entered into a transaction on AUGUST 5, 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) (Participanfs Signature) EFFECT OF RESCISSION. When a participant exercises his right to rescind under paragraph (a) of this section, he is not liable for any finance or other charge, and any security interest becomes void upon such a rescission. Within 10 days after receipt of a notice of rescission, the "Exhibit F" to Loan Agreement Pagel of 2 We-GA-Agree:Wa11z=ExhibitF RLS 96-523 7129..96 creditor shall return to the participant any money or property given as earnest money, down payment, or otherwise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the customer, the customer may retain possession of it. Upon the performance of the creditor's obligations under this section, the customer shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the customer, at the option of the customer. If the creditor does not take possession of the property within 10 days after tender by the customer, ownership of the property vests in the customer without obligation on his part to pay for it. ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acknowledges receipt of two completed copies of this Notice. �&414t,C4 ') a rZ.f_e. 08/13/96 Particlppant's SAnature Date Participant's Signature Date BARB= JO 0ALLACE Participant's Signature Date Participant's Signature Date "Exhibit F"to Loan Agreement Page 2 of 2 4's`.G:4-Agree:W&11ace:Exhibi1F RLS 96-523 712916 EXHIBIT G EXPIRATION OF RESCISSION PERIODS (Truth in Lending-Real Estate and Home Improvement Loans) Participant(s): BARBARA JO WALLACE Loan Amount: $35,000.00 Address of Residence: _ 18051 Joyful Lane, 4205,Huntington Beach, California In connection with the agreement of The Redevelopment Agency of the City of Huntington Beach to make the Loan, which will be secured by a deed of trust on the residence at the above address, each of the undersigned hereby represents as follows: 1. The undersigned understands the terms of this Expiration of Rescission Periods Agreement and its attachments. 2. The Redevelopment Agency of the City of Huntington Beach has agreed, subject only to the occurrence of certain conditions,to make the Loan and has delivered to each undersigned a Disclosure Statement setting forth the terms of the Loan and a Notice of Right of Rescission advising each undersigned of their right to rescind and cancel said transaction in accordance with the Truth in Lending Act on or before the date the undersigned has executed this document. 3. Prior to the date shown above, no proceeds of the Loan have been disbursed to or for the benefit of any of the undersigned. 4. None of the undersigned have canceled or rescinded the Loan nor have any of the undersigned notified The Redevelopment Agency of the City of Huntington Beach of any intention to cancel or rescind the Loan. The undersigned request the Redevelopment Agency of the City of Huntington Beach to proceed with the Loan in reliance upon the foregoing representations. � 08 13 96 Participant's SIgnature Date BARBARA JO WALLACE "Exhibit G" to Loan Agreement Page 1 of 1 C G:4-96Agrce:Wallace:ExMbitG RL8 96-523 7129..'96 . � V EXHIBIT Ii CERTIFICATE OF PROPOSED TRANSFEREE THIS FORM MUST BE DELIVERED TO THE DEVELOPER BEFORE PROCEEDING 1VITH ANY TRANSFER OF THE PROPERTY. AUGUST 5 , 19 96 1. The Proposed Transferee is Names: BARBARA JO WALLACE Current Address: 18051 JOYFUL LANE, 1205 EUNTINGPCN BEACH, CA. 92648 Telephone Number: 2. The address of the property which the proposed transferee desires to purchase is 18051 Joyful Lane, 4205, 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 40'284'0 (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 w411 reside in the Property: Adults(18 or over) - [name of each]: BARBARA JO WALLACE "Exhibit 11" to Loan Agreement Pagel of 6 4-s'G:4-Agree:W&11ace:Exhbitll RIS 96-523 W29,"96 Minors(under I 8)- (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$ 182,719.00 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. I0 to the Disposition and Development Agreement. IN ORDER TO ANSWER QUESTION 2(a) YOU MUST CALCULATE THE PROPOSED SALES PRICE BASED ON AFFORDABLE HOUSING COST, TAKING INTO CONSIDERATION ALL ITEMS LISTED IN THE DEFINITION OF PURCHASE HOUSING COST. (b) Price of any personal property being sold by the owner to the proposed transferee: $ -0- (if none, so state) (c) The price of S �' 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 Loan Agreement Page 2 of 6 4-s GA-ASrte:W&11-jct:Exhbid1 RLS 96-523 7/29."96 (e) Sources of payment of sales price: Sales price $ 182,719.00 Cash down payment S 101719.00 1 st loan S 137►000.00 2ndloan S 35,000.00 Other(describe) S 182,719.00 Total (f) The financing obtained by the proposed transferee to purchase the Property is as follows: 1 st Loan: Loan amount: S 137,000.00 Monthly payments: S 969.68 Interest rate 7.625% % if variable interest, describe adjustment mechanism: Due date: SEPTEMBER 1, 2026 Balloon payment amount: NOT APPICABLE Points and fees: $5,106.00 Lender: NCR%= AGE, INC. 6 HUTTON CENTRE DRIVE 1240 Lender's address: SAWA ANA, CALIFORNIA 92707 "Exhibit H" to Loan Agreement Page 3 of 6 4`s'0:4-Agree:Ws!lace:Exhbh11 RLS 96-523 7l29:96 f V y 2nd Loan: Loan amount: $ 35,000.00 -0- Monthly payments: $ Interest rate 5.00% ACCRUING if variable interest, describe adjustment mechanism: Due date: uPCN SALE Balloon payment amount: PRINCIPAL AND ACCRUED IWEREM Points and fees: -0- Lender: MY of KWINGTaN BEAC 1 Lender's address: 2000 MAIN STREET IRMING CN BEACH, CALIFORNIA 92648 Other Loans: (describe, if none, so state) NONE (g) The monthly Purchase Housing Cost to be paid by the proposed transferee: 1 st loan monthly payment: S. 959.68 2nd loan monthly payment: $ -4- Other loans monthly payment: $ Taxes and assessments(1/12 of yearly takes and assessments): $ 187.00 Insurance(1/12 of yearly $ premium) Homeowner's dues: $ 175.69 Total: $ 1,322.37 "Exhibit H" to Loan Agreement Page 4 of 6 4's1G:4-Agree:W&11aze:Exhbid 1 RL,S 96-523 7129,96 T V 8. A true and correct copy of the purchase and sale or other agreement between the owner and the proposed transferee is attached hereto. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. PROPOSED TRANSFEREE: A[IC= 13, 1996 Date Cv Signature JO WALLACE Signature Print name Print name Street Address Telephone City State Zip Code "Exhibit H" to Loan Agreement Page 5 of 6 Wx!G:4-Agrce:W&I'ut:Exhbid[ RLS 96-523 7,19.96 1 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 Cost to be paid by the Proposed Transferee shall not exceed the monthly Affordable Housing Cost. [Capitalized terms used above are defined in the Disposition and Development Agreement to which this certificate is attached.] DEVELOPER: SASSOMIAN CAPITAL VMMJPFS, INC. _ 70 A CALIFOM TI6N i By: r' Its: --"Date: Z 9, steer "Exhibit H" to Loan Agreement Page 6 of 6 4's`.0:4-AErce:Wallace:E xhb itl l RiS 96-323 7,29.96 TIEMPO ESCROW, INC. U 19093 Beach Blvd. ESCROW TRUST RECEIPT 10287 Huntington Beach, CA 92648 EscRow No. DArE 9457-C 8/9/96 RECEIVED OF CITY OF HUNTIN= BEACH THIRTY FIVE THOUSAND DOLLARS AND N0/1 DOLLARSs *35,OW.00* BANK CHECKS and SANWA BANK OF CALIFORNIA, HB., CA 370075 BRANCH CASH CASHIERS CHECK CHECK XX RECEIVED AFTER HOURS ❑ ABA r 16-351 CHECKING ACCOUNT NO A, , 370075 122003516 2094 00209 TIEMPO ESCROW, INC. 19093 Beach Blvd. ESCROW TRUST RECEIPT 10288 Huntington Beach, CA 92648 ESCROW NO. DATE 9442-C August 9, 1996 RECEIVED OF CITY OF HUNTIN= BEACH THIRTY FIVE THOUSAND AND N0/1w-- - - - DOLLARS$ *35,OW.0* BANK CH CK+� BRANCH AN SWA BANK OF CALIFORNIA, , HUNT. BCH. 3Y0075 CASH CASHIERS CHECK CHECK XX R ED AFTE UR ❑ ABAr 16-351 CHECKING ACCOUNT NO 370075 122003516 2094 002009 1 t i < t , THE UNDERSIGNED ACFNMILEDGES RECEIPT OF CHECK NO. 370075. ft N •* CITY OF HUNTINGTON 13EACH r * PO.BOX 190,HUNTINGTON BEACH,CALIFORNIA 92"a DATE P.O.NUMBER GROSS AMOUNT DISCOUNT NET AMOUNT -C -C ETXED-92377 35000.00 35000.00 08-07-96 222099 9442-C/9457-C ETXED92377 35000..00 350011.00 MURCH 9 WALLACE ESCROWS TOTALS ► 70000.00 .00 70000.00 li 1635IA220 �, �_• CITY OF HUNTINGTON BEACH - -- NLIWBEF - P.O.BOX 190 _ 370075 d HUNTINGTON BEACH,CALIFORNIA 92848 PAY TO THE ORDER OF - tpwr TIEMPD ESCROW - INC O8—& 9 6 37ffd75 S***70000.00 : 19093 BEACH -BL. _ HUNTINGTON , BEACH -CA 9264$ - CITY OF FiIJ"I ON BEACH VOID UNLESS PRESENTED FOR ENCASHMENT J� WITHIN 90 DAYS FROM DATE OF ISSUE SANWA BANK OF CALIFORNIA HUNTINGTON BEACH OFFICE -- 6881 WARNER AVENUE HUNTINGTON BEACH,CA 92647 _ Ill 37007 Bill - 1: 1 2 200 3 5 161: 20941110020911' �1 iernpo escriow, It 2C. tiritetttt n n i ntittrtu u n n tttttttrtu rtn n t�ttrtttttrirititititt�ttter n rtttti nrin rr a rtttrtrtt�riitir,riritir,rir�trtrtttet n u trtrtrrrtrtt, 19093 Beach Boulevard+ Huntington Beach, CA 92648 • (714) 843-0101 • FAX (714) 843-9949 city of Huntington Beach Datet August 14, 1996 Attentiont Connie - City Clerk Escrow No.t 9442-c 2000 Hain Street, 2nd Floor Huntington Beach, Ca. 92648 Property Addresst 18051 Joyful Lane, #205, Huntington Beach, Ca 92648 In connection with the above-numbered escrow, we are enclosing herewith the following% Lending Instructions and original Documents Copy of Borrowers Loan Application for your files Copy of Note and Deed of Trust in the amount of $137,000.00 in favor of Norwest Mortgage, Inc. Please obtain city Acceptance and contact the undersigned, as soon as possible If you should have any questions regarding the above, please do not hesitate to contact the undersigned. Thank you for your cooperation in this matter. Si rely, Linda J. ampbell Escrow officer 40 �C Cb No. ��J! EVIDENCE OF 'URANCE 91 NT-6180-7 _ Policymber �, CONDOMINIUM/ Replaced Policy Number ASSOCIATION POLICY Coverage afforded by this policy is provided by the Company Indicated below: ® 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: Unitowner's Name and Mailing Address BARBARA JO WALLACE, AN UNMARRIED WOMAN 18051 JOYFUL LANE, f1205 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 4100 NEWPORT PLACE DR STE 350 t�E u P O R T BEACH C A 92 6 60—2 43 7 • forms in effect for each succeeding policy period. If this policy Is terminated, we will give you and the The Policy Period begins and Mortgagee written notice in compliance with the 01-13-96 ends at 12:01 a.m. Standard policy provisions or as required by law. Effective Date Time at the building locations 12 Months Policy Period unless otherwise stated. 01 3— Ex iration of ❑ Noon Standard Time PLEASE NOTE.— THIS . EVIDENCE OF ' Polio Period INSURANCE - IS ; ISSUED t DIRECTLY ' Policy Type OUT - OF THE AGENTOS - OFFICE. ,SEE ❑ Basic Form 1 AGENT' S NAME' AND - ADDRESS •BELOY : LlSpecial Form 3 & CONTACT - AGENT• DIRECTLY FOR ANY MORTGAGEE: CHANGES .OR Limits of Liability Coverage ADDITIONS: . THANK YOU $ 2,382,000 A Buildings JOHN K TOLLISON 15650 - DEVONSHIRE ST :STE 101 • $ 2,00OP000 L Business Liability GRANADA' HILLS • CA' 91344-7241 DEDUCTIBLE BASIC In case of a loss we cover only that part AGENT CODE: : 1762 $ of the loss over the deductible stated. 2ND MORT A • Forms, Options & Endorsements CITY OF HUNTINGTON BEACH FP-6109 SPECIAL FORM 3 I OPT ED E14PLOYE. DISHDN - 12000 MAIN STREET FE-6205 AMENDATORY END ' OPT: - DO DIR • 6 OFFICERS ' � HUNTINGTON IBE9CH FE 6466 POLICY END � . FE-6303 SAFEGUARDS END. 2648 FE-6506.1 POLICY END I - FE-6494 ADDL. INSD I . FE-6451 DEBRIS REMOVAL I FE-6307.1 - EARTHQUAKE END % j 1ST MORTGAGEE: Unitowner Mortgagee —SNA--B Loan Number NORWEST MORTGAGE. INC. ,IT'S SUCCESSORS AND/OR ASSIGNS Ages �nature) ountersignature P.O. BOX 12011 1762 RIVERSIDE$ CALIFORNIA 92502-2211 Agent's Code 818 ) 892-6621 Telephone Number r p�y� -A olust: _ 1 I c Date �U �— 1 S.F. FORM Form 438RFU A'S f Mt (Rev. If ay 1, 1942)x LENDER'S LOSS PAYABLE ENDORSEMENT 1. Loss or damage.if any,under this policy, shall be paid to the Payee named on the first pate of this policy, its successors and assigns. hereinafter referred to as "the Lender", in whatever form or capacity its interests may appear and whether said interest be vested in said Lender in its individual or in its disclosed or undisclosed fiduciary or representative capacity,or otherwise,or vested in a nominee or trustee of said Lender. 2. The insurance under this policy,or any rider or endorsement attached thereto, as to the interest only of the Lender, its succes- sors and assigns,shall not be invalidated nor suspended: (a) by any error,omission, or change respecting the ownership, description. possession,or location of the subject of the insurance or the interest therein,or the title thereto; (b) by the commencement of foreclosure yroceedings or the giving of notice of sale of any of the property covered by this policy by virtue of any mortgage or trust deed; (e) by any breach of warranty,act,omission,neglect,or non-compliance with any of the provisions of this policy,including any and all riders now or hereafter attached thereto, by the named insured,the borrower,mortgagor,trustor, vendee, owner, tenant. warehouseman,cus- todian,occupant,or by the agents of either or any of them or by the happening of any event permitted by them or either of them,or their agents,or which they failed to prevent,whether occurring before or after the attachment of this endorsement,or whether before or after a loss, which under the provisions of this policy of insurance or of any rider or endorsement attached thereto would invalidate or sus- pend the insurance as to the named insured,excluding herefrom, however.any acts or omissions of the Lender while exercising active control and management of the property. 3. In the event of failure of the insured to pay any premium or additional premium which shall be or become due under the terms of this policy or on account of any change in occupancy or increase in hazard not permitted by this policy, this Company agrees to give written notice to the Lender of such non-payment of premium after sixty (60) days from and within one hundred and twenty (1-310) days after due date of such premium and it is a condition of the continuance of the rights of the Lender hereunder that the Lender when to notified in writing by this Company of the failure of the insured to pay such premium shall pay or cause to be paid the premium due within ten (10) days following receipt of the Company's demand in writing therefor. If the Lender shall decline to pay said premium or additional premium,the rights of the Lender under this Lender's Loss Payable Endorsement shall not be terminated before ten (10) days after receipt of said written notice by the Lender. 4. Whenever this Company shall pay to the Lender any sum for loss or damage under this policy and shall claim that as to the insured no liability therefor exists, this Company, at its option,may pay to the Lender the whole principal sum and interest and other indebtedness due or to become due from the insured, whether secured or unsecured, (with refund of all interest not accrued). and this 'Company.to the extent of such payment, shal: thereupon receive a full assignment and transfer,without recourse,of the debt and all rights and securities held as collateral thereto. S. If there be any other insurance upon the within described property,this Company shall be liable under this policy as to the.Lender for the proportion of such loss or damage that the sum hereby insured bears to the entire insurance of similar character on said property under policies held by,payable to and expressly consented 10 by the Lender. Any Contribution Clause included in any Fallen Building Clause Waiver or any Extended Coverage Endorsement attached to this contract of insurance is hereby nullified,and also any Contribu- tion Clause in any other endorsement or rider attached to this contract of insurance is hereby nullified except Contribution Clauses for the compliance with which the insured has received reduction in the rate charged or has received extension of the coverage to include hazards other than fire and compliance with such Contribution Clause is made a part of the consideration for insuring such other hazards. The Lender upon the payment to it of the full amount of its claim.will subrogate this Company (pro rats with all other insurers con- tributing to said payment) to all of the Lender's rights of contribution under said other insurance. 6. This Company reserves the tight to cancel this policy at any time. as provided by its terms, but in such case this policy shall continue in force for the benefit of the Lender for ten (10) days after written notice of such cancellation is received by the Lender and shall then cease. 7. This policy shall remain in full force and effect as to the interest of the Lender for a period of ten (10) days after its expiration unless an.acceptable policy in renewal thereof with loss thereunder payable to the Lender in accordance with the terms of this Lender's Loss Payable Endorsement,shall have been issued by some insurance company and accepted by the Lender. & Should legal title to and beneficial ownership of any of the property covered under this policy become vested in the Lender or its agents,insurance under this policy shall continue for the term thereof for the benefit of the Lender but,in such event,any privileges granted by this Lender's Loss Payable Endorsement which are not also granted the insured under the terms and conditions of this policy and/or under other riders or endorsements attached thereto shall not apply to the insurance hereunder as respects such property. 9. All notices herein provided to be given by the Company to the Lender in connection with this policy and this Lender's Loss Payable Endorsement shall be mailed to or delivered to the Lender at its office or branch described on the first page of the policy. Approved: Board of Fire Underwriters of the Pacific. California Bankers' Association. Committee on Insurance. f` ; a. TM cr 1,ON1 a a ,.n- > x. 1.❑ram► 9.Or1�► 7.®CCW. VM S. G- 3 k � 9442-C 7297630 SM B x {� 4} w x . holc Am mWANC3 CASE MA'M x 4 "-r _•.{.......-:.- .. ... .. 2 -...`mete :_.� .R Y:-:s \ } C. NOTR1 This loam is furnished to give you ■ statement of actual settlement Costs. Amounts paid to and by the settlement agent are sham. item.marked (q.o.c.) were paid outside of closings they am sham hers for informational purposes and axe not included in the totals. D. NAt8 or DORROMi I X. NAM 0r elaseltt Barbara Jo Wallace Sasso union Capital Ventures 18051 Joyful Lane, #205 16473 Bolsa Chico Street Huntington Beach, Ca. 92648 Huntington Beach, Ca 92649 r. SAM or L1'=t G. PROSY 1,0CATI091 1klrmst Mortgage 18051 Joyful Iane, #205 fllrrllrlg D�ep�- ent Huntington Beach, Ca 92648 6 utton Centre Drive #240 Santa Ana, California 92707 V. 58T71M=AM= PLUM or SErrEENEW 1. W TLEMO r E= TIEMPO ESCROW, INC. 19093 BEACH, BLVD. MUMMM BEACH, CA 92648 08/23/96 J. NUKx•Rr CP 64RROMERwB TRJLNBACT10Y R. S13NXKRT Or SaLLNRw! Tit"BACTrow 200. GRM AHOUMr DUR 7RD1t WRROMi 400. CROSS ANOUNP OUR To 61U2R1 101. contract .ale. price $182,719.00 Ioi. contract cal.. price $182,719.00 202. Personal prqmrty 902. Personal 103. settlement charges to borrower (Lin. 1400) $8,740.74 !m. 104. 404. 10s. 405. iLd ustments for items paid by seller in advance ld natmante for items paid by seller to advance 206. City/town/tease to 406. City/tarn/tau" to 107. County taxes to 407. County taxes to 109. Aeassmnta 08/23 96 to 09/01 96 $46.88 woe. Ae.e..m..ts 08/23/96to 09 01 96 $46.88 109. 409. 130. 610. 131. �11. 112. 412. 120. QtMS AMOUNT DUE rRLK BORROWER $191,506.62 420. a+ass A1MDURr Due To saint SlB2,765.88 200. AMOUNTS Pun BY OR 1H BE ULT OF SCRA M M s 500. RIDtlCTICM IN ANXW OCR To salzat i 201. Deposit of earnest money $13,921.99 sol. mmess it (ses instructions) 202. Principal amount of aa. loan(.) $137,000.00 s02. Settlement ee to seller (Line 1400) 16 847.60 203. existing loan(s) taken subject to 503. Woting loans taken subject to 204. 504. Payoff of first mort loan 205. 2nd T.D. CitV Loan $35,000.00 sos. Payoff of aeoond mortgage loan 206. $06. 207. $07. 208. 508. 209. $09. Adjustment for items unpaid hj seller Adjustment for items unpaid by seller 210. City/town taxes to 510. Ci /tawn taxes to 211. County taxes 07/01/96 to 08/23/96 $261.56 s11. count taxes 07/01/96 to 08/23/96 261.56 212. Assessmsnte to 332. Assessments to 213. 513. 214. Sid. 21s. sls. 216. plan-recur'' costa 4 000.00 s16. jk_7;7ecurrinq costs $4,000.00 217. Upgrades paid by 4ATr 1 714.00 517, Ppgra&s 1 714.00 21e. 510. 219. Sit. 220. TOTAL PAM BY/FM eoRROM+ga siK897.55 s2o. TmL R vx=ot Amour arm suim 22 823.16 100. CASH AT Rtt19S.X? PFOM M WRPJMM -- 600. CUM AT SE T>!awe TO/rRDM Lm'1>Ot 331. Gross amount doe from borrower (Lire 120) $191 506.62 601. cs+oee amount due to seller (Line 420) 182 765:88 --- 302. Less amount by/for borrower Line 220 191 897.55 402. less reductions in amount due seller Lins s ) 22 823.16 303. C6sm ( PROM) ( X TO) DMROWE2t 390.93 403. CAN X TO) FNN) sit $159,942.72 PY fHE ORI .,RL HEREOF. �lEN1 'rFyn.. INC. Escrow Ntimiber: 9442-C 700. 20M U=/fiwM,9 CowISSION based an price PAID FROM PAID rROK Division of Comikission (line 700) as follows SOPWAR'S BELLERPS 702. FUME AT Yuma AT 3rr.1ZNERr 702. 703. Commission paid at settlement 704. 000. rrEms PAYX= IN WhVtmw WrZH JnM B02. jam Origination Few 1.00 $1r370.00 802. Lam Discount 903. Appraisal Too to 804. credit Report to Nonoest a Inc. $50.00 say. Tax Service Fee Vorwest Mortgage, Inc. $80.00 9.36. 2.00 Loan Discount Fee Worwest Mortgage, Inc. $2r740.00 @37. Processing Fee Norwest �ae, Inc. $350.00 938. Document Fee Norwest M=tqa ,, Inc. $200.00 939- Flood Determination and Life Vorwest a e, Inc. $16.00 sio. Wlx-e Transfer Fee Worwest !!2!jEage, Inc. $56-.0-0- a11. 930. IMIS REQUIRED BY UNDMt TO BB PAID IN AMU= 931. interest froa 08723/96 to 09/01/96 1 1 28.6200 /day $257.56 102. Mortgage Insurance Premium for sionth* to $03. Hazard Insurance Premium for years to 904. years to 905. 20100- JU!SERVZS DVP0GrrW VIn LEND IC01. Hazard insurance Months I per month 2002. mortgage insurance Months I par month 1003. City property taxes Months I per month 1004. County property tax" 8 Months 1 190.33 Per month $1,522.64 1005. Antrum assessamants Months I W month 1006. Months I per awth 1007. Months I per mouth 2008. Months I per month 1100. TrrEZ CMUt= 11.01. Settlement or closing fee to TIEM ESCXMp INC. $506.45 2202. Loan Tie In Fee -- Tiempo Escrcw, Inc. $175.00 nn. M ge essen w Fees & Fecfe-r� Expre s Tierpo Escrow, Inc. $55-.-00 - 1104, 1105, Document preparation to 1106. Notary fees to Ijnda J. Canpbell $50.00 11107. 1108. Title insurance to Continental Lawers Title $376.00 $383.70 Includes 4bwo items numbers 1109. Lender's overage $137,000.00 1110. 04nor's *war&" $182,719.00 im. SE�bTi e Fee Continental Lawyers Tit 95.00 1n2- 2rxi Loan Epli Icy and End Continental 11mgers Tit $175.00 1113. Wire Fee Contulen Tit $25.00 1200. GOVERNMENT RECORDING AND 7RANSYM CUM= 1201. Recording g000t Dead $10-00 Mortgage $65.00 1 Raise" $75.00 1202. City/County tax/stappoi Deed 4�2-01.30 i P.-t.9-9. $201.30 1203. State tWstampss Deed 1204. Rcmecwners AssaFY�tion Cent. Keystone Ra-cEf iE-L)rME $70.00 1205. 1300. AMMOKILL SZTTLZNM CIAR=5 13o1. 09/01/96 HOA Dues Pacific Park ViLlas Ass $175.69 2302. Post inspection to 2303. C�aW on Pacific Park Vi=as Asa $351.38 jjo4- IM Set !!e Fee Keystone Pacific Pr?per $4 5-.0 0 nos. See Attached $169192.60 iliM,K) E 14 The item indicated by have been included at the lender-for-dis-closure purposes only. Thes=w holder/settlement agent edge of these expenditures, except as provided by the lender. They have and cannot be verified o as to the amount, the payee, nor actual payment and n is assumed by the closing eof. agent as to the validity and/or the sufficiency ther lempo escn, • W. 1b, C 2scrow q ua er ���4�i�� 909I B�e�a�t. TW0UgDI lYO�i it�i'��l'�e��IIIIIIII,II"011��264III8 �"(714) 843III �e�= ,itle �',(�7�4)�' 43 9949 sassounian Capital Ventures Escrow Officers Linda J. Campbell Property Address: 18051 Joyful Lane, 4205 Huntington Beach, Ca 92648 REP. NO. AMOUNT 1305 1995-96 Taxes - Unit 22 Continental 1,364.52 1305 Delinquent Taxes - #13 #933-87-268 1,675.90 1305 Delinquent Taxes - #15 #933-87-270 3,682.66 1305 Delinquent Taxes - #17 #933-87-272 1,364.52 1305 Balance of Shutters Strouds 6,105.00 1305 Balance due - Carpeting Floor Systems 2,000.00 T 17'.' E., Itflltt11111111111f111111111111111111111111111tlllll11111111111111111111111111111111111i11111111i111111111111111l111111111t1t111111tI111111111lllllfl 19093 Beach Boulevard • Huntington Beach, CA 92648 • (714) 843-0101 • FAX (714) 843-9949 -- consolidated Closing Statement -- Escrow slumbers 9442-C Settlement Dates 08/26/96 Escrow officers Linda J. Campbell seller Names Buyer Names Sassounian capital Ventures Barbara Jo Wallace 16473 Bolsa Chic& Street 18051 Joyful Lane, #205 Huntington Beach, Ca 92649 Huntington Beach, Ca. 92640 Property Addreass 10051 Joyful Lane, #205 Huntington Beach, Ca 92648 ---------------------------------------------------------------------------------------------- Debit credit Debit Credit ----------------------------------------------------------------------------------------•------ 182,719.00 Consideration 182,719.00 Deposit or Earnest Money 13,921.99 2nd T.D. city Loan 35,000.00 PRORATES AND ADJUSTMENTS: 46.98 Assessment $ 175.69 Per/Month 46.88 08/23/96 to 09/01/96 261.56 County Tax $ 905.77 Per/Half 261.56 07/01/96 to 08/23/96 4,000.00 Non-recurring costs 4,000.00 1,714.00 upgrades paid by Buyer 1,714.00 NEW LOAN(S) AND LOAN CHARGES: New Loan Amount 137,000.00 Loan Orig Fee 1,370.00 credit Report 50.00 Norwest Mortgage, Inc. Tax Service Fee 80.00 Norwest Mortgage, Inc. 2.00 Loan Discount Fee 2,740.00 Norwest Mortgage, Inc. Processing Fee 350.00 Norwest Mortgage, Inc. Document Fee 200.00 Norwest Mortgage, Inc. Flood Determination and Life 16.00 Norwest Mortgage, Inc. Wire Transfer Fee 50.00 Norwest Mortgage, Inc. Interest $ 28.62 Per/Day 257.50 08/23/96 to 09/01/96 County Property Taxes 1,522.64 8 months @ $190.33 per month EXISTING LOAN(S) t COSTS, CHARGES i OTHER DISBURSEMENTSt Loan Tie In Fee 175.00 Tiempo Escrow, Inc. Messenger Fees i Federal Express 55.00 Tiempo Escrow, Inc.' _ Notary Fees 50.00 Linda J. Campbell Homeowners Association Cert. 70.00 Keystone Pacific Property 09/01/96 BOA Dues 275.69 Pacific Park Villas Association {� 0" �„ •L Fig 'C pOPY Yl���f I .fL tilYir :i�.v. r ply __-.`-��.• rirrrrerritiririt a rtr:riririrrttiiritt n trttttrrrt ra n trittretttrt:tittretr rater n:rn tirrrrrrir n rttittrr n n n rrrrrirrrr urrrr n r:rrrrrrrrr:rrri� 19093 Beach Boulevard • Huntington Beach, CA 92648 • (714) 843-0101 • FAX (714) 843-9949 Page 2 -- Consolidated Closing statement -- Escrow Numbers 9442-C Settlement Date: 08/26/96 ---------------------------------------------------------------------------------------------- De6it credit Debit Credit ---------------------------------------------------------------------------------------------- Capital Contribution 352.39 Pacific Park Villas Association 45.00 BOA Set up Fee Keystone Pacific Property 1,364.52 Additional Charges 1995-96 Taxes - unit 22 Continental 1,675.90 Additional Charges Delinquent Taxes - 413 #933-87-268 3,682.66 Additional Charges Delinquent Taxes - 115 4933-87-270 1,364.52 Additional Charges Delinquent Taxes - #17 4933-87-272 6,105.00 Additional charges Balance of Shutters Strouds 2,000.00 Additional Charges Balance due - Carpeting Floor Systems ESCROW FEES AND CHARGES: Settlement or Closing Fee 506,45 TITLE FEES AND CHARGES: 383.70 Title Insurance 376.00 Sub Title Fee 95.00 and Loan Policy and Endorsement 175.00 25.00 Wire Fee Recording Foes 75.00 201.30 City/County Tax/stamps 159,942.72 **** Balance 390.93 182,765.88 ** TOTAL DEBITS ** 191,897.55 102,765.88 ** TOTAL CREDITS ** 191,097.55 _ a 1r. La4jiryersTide Insurance C oration NATIONAL HEADQUARTERS 1992 ALTA RICHMOtiQ VIRGINIA Loan Policy Number Loan Policy 1$5.01-208-679 SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, LAWYERS TITLE INSURANCE CORPORATION, a Virginia corporation, herein called the Company, insures,as of Date of Policy shown in Schedule A.against loss or damage,not exceeding the Amount of Insurance stated in Schedule A,sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule�A being vested (a)`arising from an improvemcnt or work related to the land which other than as stated therein; is contracted for or commenced prior to Date of Policy; or 2. Any defect in or lien or encumbrance on the title; . (b) arising from an improvement or work related to the land which 3. Unmarketability of the title; •• _'. is contracted for or commenced subsequent to Date of Policy and 4. Lack of a right of access to and from the land; which is financed in whole or in part by proceeds of the 5. The invalidity or unenforceability of the lien of the insured mortgage i indebtedness secured by the insured mortgage which at Date of upon the title; - 4 y Policy the insured has advanced or is obligated to advance; 6. The priority of any lien or encumbrance over the lien of the insured'--J& Thcimalidity or unenforceability of any assignment of the insured mortgage; mortgage, provided the assignment is shown in Schedule A. or the 7. 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: C - `- mortgage in the named insured assignee free and clear of all liens. The Company will also pay the costs, attorneys fees and expenses incurred in defense of the title or the lien of the insured mortgage as insured, but only to the extent provided in the Conditions and Stipulations. EXCLUSIONS FROM COVERAGE The following matters arc expressly excluded from the coverage of this policy and the Company will not pay loss or damage,costs,attorneys fees or expenses which arise by reason of: 1. (a) Any law,ordinance or governmental regulation(including but not (e) resulting in loss or damage which would not have 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 unenforceability 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 enforcement thereof or a notice of a insured mortgage and is batted 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 recorded 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 Iicn for services,labor or materials over the to the extent that it 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 resulting 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 not 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 coverage any taking which has occurred prior to Date of Policy which of the mortgagee insured by this policy, by reason of the operation would be binding on the rights of a purchaser for value without of federal bankruptcy,state insolvency or similar creditors rights laws, knowledge. that is based on: 3. Defects, 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 deemed a preferential transfer except where the preferential transfer policy, results from the failure: (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date 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. Micy 135 a litho in U.S.A. 061�135-0006 Cover Sheet ALTA Loan Ruloy(10-17-4:) 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(i)in case of (a) "insured'*: the insured named in Schedule A.The term"insured" any Irrigation as set forth in Section 4(a)below,(u)in Case knowledge shall also includes come to an insured hereunder of any clam d idle or interest which is adverse (P 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 cured,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(or)if idle to the estate or interest or the and Stiputaliors(reserving.however,ah rights and defenses as to any suc- lien of the insured mortgage:as insured.is rejected as unmarketable.It prompt cessor that the Company would have had against any predecessor insured, notice shalt 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 (n) any governmental agency a governmental instruiTientality watch extern of the prejudice is an insurer or guarantor under an insurance contract or guaranty insuring 4. DEFENSE AND PROSECUTION OFACTIONS;DUTY OF INSURED or guaranteeing the indebtedness secured by the insured mortgage,or any CLAIMANT TO COOPEME. part thereof,whether named as an inr ood herein or not: (a) Upon written request by the insured and subjed 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. Stipulation& at its own costand without unreasonable,delay.shall provide for the defense (b) "insured claimant": an insured claiming loss or damage d an insured in litigation in which any third party asserts a darn adverse to (c) "knowledge' or "known.': actual knowledge, not Constructive the trite or interest as insured.but only as to lftose stated causes of action knowledge or notice which may be imputed to an insured by reason of the aging a detect.Gen 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 as 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 d action and shag not be Gable improvements affixed thereto which by law constitute real property.The term for and wig not pay the fees of any other counsel.The Company will not pay "Iand"does not include any property beyond the lines of the area described any tees,costs or expenses incurred by the insured in the defense of those or referred to in Schedule A,nor any right,tdle�interest,estate or easement causes of action which allege matters not insured against by this policy. n abutting streets.roaft averxres.aley%tartest ways or waterways,but nothing (b) The Company shall have the right.at its own cost.b institute and herein shag modify or limit the extent to which a right of access to and from probe any action or proceeding or to do any other act which in ifs opinion the land is insured by this policy. may be necessary or desirable to establish the We to the estate or interest (e) "mortgage: mortgage,deed of trust.tr a 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 pol y,whether or not a shall be Arable hereunder.and Policy for the purpose of imparting constructive notice of matters relating to shall not thereby concede kabrlity or waive any provision of this policy.If the real property to purchasers for value and without knowledge.With respect Company shall exercise as rights under this paragraph.it shall do so ddrgently. to Section 1(a)(iv)of the Exclusions From Coverage"public records"shall (c) Whenever the Company shag have brought an action or interposed also include ermronmental protection liens filed in the records of the clerk defense as required or permitted by the provisions of this policy.the Corn- of the United States district own for the district in which the land is located. pany may tug any litigation to final determinaWn by acourttd competent (g) "unmarketabday 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.riot excluded or excepted from coverage,which from any adverse judgment or ordeE would entitle a purchaser of the estate or interest described in Schedule A Inahcaseswheretfhis or the insured mortgage to be released from the obligation to purchase by (� poe of any acim tion requires ee ing.th rytopra virtue d a contractual condition requiring the delivery d marketable tdle. secure c provide for the defense d ally adios all cute or the insured 2. CONTINUATION OF INSURANCE. shall secure to the Company the right to so prosecute or provide defense (a) After Aoquisition of True. Thecoverage d this poky shaft continue in the action t i s option. Meing.and al appeals therein.and permit the Com- in force as of Date of Policyn favor of r an insured who acquires all or Party to use,at its option.the name d the insured for this purpose Whenever part d the estate or interest in the Ian d by foreclosure,trustee's sale,Con- requested by the Company,the insured.at the Company's expertise,shag veyance in lieu d foreclosure a other legal manner which discharges the give the Company al reasonable aid()in anyo clef or proceeding,securing of the insured mort ii a transferee d the estate or interest so acquired evidence obtaining witnesses.leme .andprose ii)in or defending the anion or pro- ben () seeding,or effecting settlement,and(�)n any oilier lawful ad 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 copora m.and their corporate successors to the estate or interest or the lien o1 the k wed mortgage,as insured.It the by operation of law and not by purchase subject to any rights or defenses Company is prejudiced by the failure of the issued to furnish the required the Company may have against any predecessor>ruu,reds;and W any gaxm operation.the Company's obligations to the insured under the policy shag mental agency or goverrvnental insirturtentaldy which acquires all or any pars terminate,incfudintg any hat>hty or obligation to defend.prosecute or con- of the estate or interest pursuant to a contract of insurance or guaranty insur- tnue any litigation, with regard to the matter or matters requiring such intg or guaranteeing the indebtedness secured by the insured mortgage. cooperation. n force as After Date d Poles in favor d an r wr of Title. The ed only t>�pong shah vr"ee 5 In adds t LOSS Off DAMAGE. ueed under Section 3 d theseCon- Policy� my long as tits nsued to addition W and after the notices r retarnrs an estate or interest in the land.of holds an indebtedness segued drtions and Stipulations have been provided the Company.a prod of loss by a purchase money mortgage given by a purchaser from the insured.or or damage signed and sworn to by the insured claimard shall be furnished only so long as the insured shag have liability by reason of Covenants of war- to the Company within 90 days after the insured clamant shall ascertan the ranty made by the insured in any transfer or conveyance of the estate or ire facts giving rise to the loss or damage.The prod of loss or damage shall serest.This policy shall not continue in force in favor of any purchaser from describe the defect in.or pert or encumbrance on the trite of other matter the insured of either()an estate of interest in the fond.or(r)an indebtedness insured against by this policy which constitutes the bass d loss or damage secured by a purchase money mortgage given to the insured. and shag 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 int- o after the conveyance shag in nerther event exceed the least of: sured claimant to provide the rectured prod of loss or damage,the Com- (r) the Amount of Insurance stated in Schedule A; parry's obkgatior*to the insured under the policy shall termnata uxkjdog (u) the amount of the principal of the indebtedness secured by the any habrlay or obligation to defend,proseane.or continue any litigation,with insured mortgage as of Dated Policy.interest thereon,expenses of brecbsuirm regard to the matter or matters requiring such prod 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 taws or to protect the Inert of the insured mortgage prior to the lime of to examination under oath by any authorized representative of the Company acquisition of the estate or serest 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 imlarovernents.but times and places as may be designated by any authotzed representative reduced by the amount of all payments made;or of the Company,ah records.books,ledgers,checks,correspondence and (ai) the amount pad by any governmental agency or governmental memoranda.whether bearing a date before or after Date of Policy.which rnstrurntentaidy.rr the agency or instrumentality is the insured claimant,in the reasonably pertain to the loss or damage Further.!requested by any author- acquisition of the estate or interest in satisfactror' its insurance contract or iced representative of c m ompany.the insured clamant shall grant its per- guaranty. missigrh, in writing. ICI autfta¢ed representative of the Company to -— coreritad on nwr~of coves a►wt LAWYERS 4ITLE INSURANCE �. RPORATION National Headc�uarters Ridwond, Virginia AMERICAN LAND TITLE ASSOCIATION LOAN POLICY 1992 Issued At: Continental Lawyers Title Crnpany 18551 Van Karmsn, Suite 100, Irvine, California 92715 SCHM ILE A ---------------------------------------------------------------------------------------.__------- EIt POLICY AM0UN T OF PFda-II i DATE OF POLICY NLI43M NUMBER INSURANCE -----------------------------------------------------------------------------------------r-__-__ 94-0222204 135-01-208-679 $35,000.00 $150.00 08/23/96 at 2:56 Fn 1. NAP1£ OF INSURED: The Redevelopment Agerxy of the City of Hmtington Beach, a public body corporate and Politic 2. THE ESTATE OR INTEREST IN THE LAND WHICH IS COVERED BY THE INSURED MUGMZ IS: A CONDWINILM, as defined in ,section 783 of the California Civil Code, in fee 3. TITLE TO THE ESTATE OR INTEREST IN THE LAND IS VES= IN: Barbara Jo Wallace, an unmarried woman 4. THE INSURED rMMAM AND ASSIGNMENTS THMW, IF ANY, ARE DESCRIBED AS FOL 104S: A Creed of Trust to seem an indebtedness in the amount sbown below, and arry other obligatia-z seamed thereby Amount: $35,000.00 Dated: August 5, 1996 Trust=: Barbara Jo Wallace Trustee: The City of Huntington Beach, a municipal corporation Beneficiary: The Redevelopment Agerxy of the City of Huntington Beach, a public body corporate and politic recorded: August 23, 1996 Instrument No. 96-0433917 of Official Records ALTO LOAN POLICY - 19 �.d Policy No.:135-01-208-679 Order No.: 94-0222204 SCHEDULE A CONTINUED 5. InM LIM REBID TO IN THIS POISCY IS DESCRMM AS FC)L IDWS: A Cordanirdium comprised of: PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in aom of in and to all of the Comm Area defined in Declaration referred to below and described in the Oondantniun Plan ("Plan") for IDt 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instnzn nt 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 Body 706, Pages 27 to 29 of Miscellarxcus Maps, in the office of the Omzrty Recorder of said County. Emxgyting therefran all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Hods 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: lhzit No. 22 consisting of certain airspace and surface elements, as shm n and described in the Condominium Plan referred to in Parcel 1 above. PARCEL 3: Nan-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 Paris Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. PANEL 4: Elusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or Patio purposes, over the areas defined, depicted and assigned an the Plan. ALT,.) LOAN POLICY - 19 �.l POLICY NO.:135-01-208-679 ORDER NO.: 94-4222204 SCHEU E B PART I EYJMTIOES FFCH CDVE PAGE T= POLICY DOES NOT IIa)RE AMINST LOSS OR UMM (AID THE COIIANY WnL NOT PAY COSTS, ATTORNEYS' FEES OR EXPEMMS) URCH ARISE BY RFMOR OF: A. Property taxes, including uding general and special taxes, personal property taxes, if any, and any ass s menits collected with taxes, to be levied for the fiscal year 1996-1997 which are a lien port yet payable. B. Supplemental or escaped assessments of property taxes, if any, assessed pursuant to the Revenue and Taxation Code, of the State of California. 1. The matters contained in a document entitled "Memorandum of Disposition aryd Development Agreement" recorded January 3, 1994 as instrument No. 94-0001007 of Official Records. Referen oe is made to said doc%nent 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 abuts said land, such rights having been relinquished by the map of said Tract. Affects: Talbert Avenue; Joyful Lame and Happy Drive Except at street intersections and approved driveway locations. 3. Covenants, conditions and ructions (deleting therefron any restrictions based on race, color or creed) as set forth in the document Recorded: February 24, 1994 Instrument No. 94-0137068 of Official Records Said covenants, conditions and 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 Assts, Liens and the subordination thereof, provisions relating to Partition, Restrictions on severability of Component Interests, CmAernants, Conditions and Restrictions, a provision that no violation thereof and no enforcement of any Lien provided for herein shall defeat or render invalid the Lien of a Mortgage or Deed of Trust made in good faith and for value, but which however, do not contain Restrictions based on race, color or creed. Recorded: August 24, 1994 Instrument No. 94-0525336 of Official Records ORDER NO.: 94-02.22204 SGE1-11111E B (PART I cwmm) 5. The matters contained in a document entitled "Oannrn Facilities Use and Maintenance Agreement Fbr Pacific Park Villas" recorded August 25, 1994 as Instrument No. 94-0525337 of Official Records. Referw= 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 Oonpary Purpose: Public utilities Recorded: October 27, 1994 Instrument No. 94-0632840 of Official Records Affects: the Southerly 50 feet of the Easterly 4 feet of Lot 1 7. A Deed of Trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby . Amount: $137,000.00 Dated: August 13, 1996 Trus or: Barbara Jo Wall d@, an unmarried woman Trustee: Stan-Shaw Cbrporaticn, a California corporation Beneficiary: Norwiest Mortgage, Inc., a California corporation Recorded: August 23, 1996 Instrument No. 96-0433916 of Official Records ENDORSEMERrS The folL7wing endorsermts are attached to and made a part of this policy: 100 110.9 116.2 tb Date typed: 08/30/96 Plats enclosed ALTA LOAN POLICY - 1992 POLICY NO.: 135-01-208-679 MM NO.: 94-02.22204 SCHEDUM H PART 11 IN AUDITION TO THE MATTERS SET FaM IN PART I OF THIS 9CMULE, THE TITLE TO THE ESTATE CR INTEREST IN THE LAND DESCRIBM CR F=M TD IN SCHEDULE A IS SUBJECT TO THE FOLLOWING MATTERS, IF ANY BE MM, HVT THE 031FANY INSUIRES THAT THESE INTERS ARE SUECRDINATE TO THE LIEN OR CHARGE OF THE INSURED 16 GA UPON THE ESTATE CR INTEREST: 8. Covenants, comlitims and restr'ictims (deleting therefran any restaictians based on race, colcr or creed) as set fm kh in the doament Recorded: August 23, 1996 Instivrnrt No. 96-0433918 of Official. Records ••� ENDORSEMENT LM&MIS T1= I?GLMANCS CMWOPATIQN C MA Fam 100 Order No.: 94-0222204 Attached to Policy No.: 135-01-208-679 The Company hereby insures against lass which said Insured shall sustain by reason of the following matters: 1. Any in the assurance which the Cam any gives: a. That there are no covenants, conditions, or restrictions under' which the lien of the mortgage referred to in Schedule A can be colt off, subordinated, or otherwise it'd; b. That there are no present violations on said land of any enforceable covenants, conditions, or restrictions; c. Zlhat, except as shown in Schedule B, there are no encroachments of buildings, structures, or improvements located on said lard onto adjoining lands, root any onto said land of buildings, structures, or improvements located on 2.jning a futu 2. . An re 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 impairnemt or lass 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 acquire such title in satisfaction of the indebtedness seamed by the insured mortgage; b. Unmarketability of the title to the estate or interest referred to in Schedule A by reason of any violations an the lard, occurring prior to acquisition of title to the estate or interest referred to in She A by the inspired, of any covenants, ariditions or restrictions. Damarge to existing lm over mts, includitx3 lawns shrubbexy or trees: a. which are located or encroach upon that i; xt on of the lard subject to any easement shown in Schedule B, which damage results fram the exercise of the right to use or maintain such eminent for the purposes for which the same was granted or reserved. b. resulting from the exercise of any right to use the surface of said land for the extraction or development of the minerals meted fran the description of the lard or shown as a reservation in Schedule B. 4. Any final court order or judgment requiring the removal from cry lard adjoining the land of any �c>nnent shown in Schedule B. Vk erever in this endorsement any or all the words "covenants, conditions, or restrictions" appear, they shall not be deemed to refer to or include the terms, covenants earxditicns or restrictions contained in any lease. Fier purposes of this endorsement, the words "covenants", "conditions" or "restrictions" shall not be deemed to refer to or include any covenants, eoriditi c ns or restrictions relating to errrirnrmental protection, except to the extent that a notice of a violation or alleged violatioon affecting the land has been recorded in the public retorts at Date of Policy and is not excepted in Schedule B. This endorserent is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior thereto. Except to the extent expressly stated, it neither maiifies any of the terms and provisions of the policy and any prior omits; nor does it extend the effective date of the policy and any prior endorsai ents, nor does it increase the face amount thereof. IN WITNESS MM;UMF, the Company has caused this Endorsement to be signed and sealed, as of the date set foxth below, to be valid when countersigned by an authorized officer or agent of the Company, all in accordance, with its By-Laws. Dane: August 23, 1996 Issued at: Irvine, California LAWYERS TITLE ITSURANM CORPORATION fiersigr�� �� Janet A. Alpert - President Officer or Agent Johan M. Carter - Secretary ENDORSEMENT IAWYEMS Tr= IINSLIMAM C 'ORATIQd CLTA MN 110.9 Order No.: 94-0222204 Attached to Policy No.: 135-01-208-679 The insurance afforded by this r-l-rsement is only effective if the land is used or is to be used primarily for residential purposes. The Company insures the insured against loss or damage sustained by reason of lack of priority of the lien of the insured mortgage over: (a) any environmental protection lien which, at Dane of Policy is receded in those records estaWished under state statutes at Dane of Policy for the purpose of imparting constructive notice of matters relating to real 'property to piers for value and without knowledge, or filed in the records of the clerk of the United States District Court for the district in whin the land is located, except as set forth in Schedule B; or (b) any environmental protection lien provided for by any state statute in effect at Date of Policy, except envirionmental probectian liens provided for in the following stag statutes: NONE This errJorse�pnt is made a part of the policy and is subject to all of the term and provisions thereof, and of any prior ez�doMaier,ts thereto. flit to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any endorsements, nor does it extend the effective date of the policy and any prior its, nor does it increase the face apt: thereof. IN WIT MESS W =F, the C m parry has caused this Dxl=swent to be sighed and sealed as of the date set forth below, to be valid when comtersigied by an authorized offioer or agent of the agmny, all in affiance with its By-laws. Date: 08/23/96 LAWYERS TrME MCLEANCE CORPOPATION Qxxitersigned by: Janet A. Alpert - President bW7LOk.. I`- John M. Carter - Secretary Issued at: Irvine, Califo=da ENDORSEMENT LAWYERS TITLE INSURANCE )PATION CLTA F 116.2 dear No.: 94-0222204 Atuched to Policy No.: 135-01-208-679 The Caupany 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 also the exterior boundary of the pmject, are correctly shown on that map recorded in book 706, pages 27 to 29 of Maps in the office of the Canty Recorder of said County. The Canlaarny 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 designated as Uhit 22, as shown on the map recorded August 25, 1994 as Instrument No. 94-0525335, Official Records of niniumus in the office of the County Recorder of said County, and known as: 18051 Joyful Lars #205 munti ngton Beach, California The Omparry hereby insures the Inspired against loss which the irLsuxtiad shall sustain in the event that the assurarre herein shall prove to be incorrect. This endorsement is made a part of the policy and is subject to all of the germs and provisions thereof and of any prior endorsenitm is thereto. Except to the extent expressly staged, it neither modifies any of the term and provisims of the policy and any prior endorsements, nor does it extend the effective date of the policy and any prior ex gents, nor does it increase the face amount thereof. ILN WITISS WMMF, the Cammpany has caused this endorsement to be signed and sealed as of the date set forth below, to be valid when countersigned by an authorized officer or agent of the Company all in accordance with its By-Laws. Date: 08/23/96 LAWYERS TITLE INSURANCE OtATICN by Janet A. Alpert - President Join M. Caz'ber - Secretary Issued at: Irvine, California ONDITIONS AND STIPULATIQNS—COHTIN• -1 examine, inspect and copy all records. bf..) ledgers. checks. cor- S. LIMITATION Or..AILITY. respondence and memoranda in the custody or control of a third party,which (a) tt the Company establishes the tale.or removes the aneged de'ect, reasonably pertain to the loss or damage.All information designated as con- lien or encumbrance.or cures the tack of a right of access to or From the land. f+dent+al by the insured claimant provided to the Company pursuant to this or cures the claim ol unmarketabtlay of title,or otherwise establishes the then Section shall not be disclosed to others unless,in the reasonable judgment of the insured mortgage.an as insured,in a reasonably diligent manner by of the Company,a is necessary in the administration of the claim.Failure of anymethod,including litigation and the completion of any appealstherefrom, the insured claimant to submit for examination under oath,produce other it Shall have fully performed as obligations with respect b that ma"er and reasonably requested information or grant permission to secure reasonably shall not be liable for any loss or damage caused thereby necessary information from third parties as required in this paragraph,unless prohibited by taw or governmental regulation,shag terminate any liability d h t In the event d any lnt.th Cn.including s lag a have o the Company tine Company under this Or with the Company's consent.the Company shag have no tabhlhty for loss policy as to that claim. or damage until there has been a final determination by a court of competent 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; jurisdiction,and disposition of all appeals therefrom,adverse to the tale or TERMINATION OF LIABILITY. to the Len of the insured mortgage,as insured. In case of a claim under this policy.the Company shall have the follow- (c) The Company shaft not be liable far loss or damage to any muted ing additional options: lorliaNdyvaluntarilyrassurned fherwednser:! (a) To Pay or Tender Payment of the Amount of Insurance or to Company � � h01"t the Prior wr itten consent d the Purchase the Indebtedness. (�} to pay Or tender payment of the amount d insurance order {d) The Company shall not be fable for:()any indebtedness crewed this policy together with any costs.attorneys'fees and expenses incurred subsequent to pate d Policy except for a eby advances made a protect the Iex- by the insured claimant,which were authorized by the Company,up to the d the insured toprevent mortgage and secured thereby and reasonable amounts an time d payment or tender d payment and which the Company is obligated I��b prevent deterioration d improvements:or{.)construction bit loan �pay;� advances made subsequent to pate d Polwy.except conslrua+ort town ad. (ii) to purchase the indebtedness secured by the insured mortgage vanes made subsequent to Date d Policy for the purpose d f+nanang to for the amount owing thereon together with any costs,attorneys'fees and whole or in part the construction of an improvement to the land which at pate expensesinc urredbytheinsuredclaimanlwhichwemauthoriz edby1heCom- of and were secured by the insured mortgage and witch the insured was pany up to the time of purchase and which the Company is obligated to pay. andd continued to be obligated to advance at and after Date of PolicyIf the 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 debledness and the insured mortgage,together with any collateral security. (a) M payments under this poky.except payments made for costs. to the Company upon payment therefor attorneys'lees and expenses.shall reduce the amount of the insurance pro Upon the exercise by the Company of either of the options provided tanto.However,arty payments made prior 10 the acquisolton of tale b the estate for in paragraphs a{)or(++),all liability and obligations to the insured under or interest as provided in Section 2(a)of these Conditions and Slrpula:+ons this policy,other than to make the payment required in those paragraphs, shall not reduce pro tanto the amount of the insurance afforded under this sha'l terminate,including any liability or obligation to defend,prosecute,or policy except to the extent that the payments reduce the amount d the in- continue any litigation,and the policy shall be surrendered to the Compary debtedness 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 ary 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 paywoW.,satisfaction or release,shall reduce the amount d mixance pro of an insured claimant any cla m insured against under this policy,together tanto.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 fie lien of the insured mortgage and mant which were authorized by the Company up to the time of payment and secured thereby,with interest thereon,provided in no event shag the amount which the Company is obliga'ed to pay;or of insurance be greater than the Amount of Insurance stated in Schedule A. (i) to pay or otherwise settle with the insured claimant the loss or (c) Payrnenl in fug by any person or the voluntary satisfaction or release damage provided for under this policy,together with any costs.attorneys' of the insured mortgage shall terminate an 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. by the Company up lothetime a payment and which the Company isobligated la LIABIf♦tie Inked NONCUMULATIVE. d A t e estate or interest n sit:�stact+on d the to pay. Upon the exercise by ttte Company of either of the options provided indebtedness secured by the insured mortgage.or any part thered,it is for in paragraphs b(i)or(ii),the Company's obligations to the insured under expressly understood that the amount of insurance under this policy shall this policy for the claimed loss or damage,other than the payments required be reduced by any amount the Compa ny may pay under any policy insuring to be made,shag terminate,inducting any liab+lay or obligation to defend, a mortgage towfuch exception is taken in Schedule B or to which the insured prosecute or continue any litigation. ttas agreed,assumed,or taken subject.of which is heredier executed by T. DETERMINATION AND EXTENT OF LIABILITY an insured and which is a charge or ken on the estate or interest described This policy is a contract of indemnity against actual monetary loss or m retuned to Schedule A.and the amount so paid sha'I be deemed a pay- damage sustained or incurred by the insured claimant who has suffered loss meat under this potty or damage by reason of matters insured against by this policy and only to » PAYMENT OF LOSS. shall be described- in No payment s be rrkrde without producing this poky for endorse- the extent hereindesc (a) The fa c the Company under this policy shaft not exceed the ment of the payment unless the policy has been lost or destroyed, which d d least d: case pro loss or destruction shag be furnished to the satisfaction of the () the Amount of Insurance stated in Schedule A,or,d applicable, Company. he amount d insurance as de`ned in Section 2(c)d these Conditions and (b) When liabity and the extent of loss or damage has been defnaely the amount fixed in accordance with these Conditions and St+purlattons.the loss or damage shall be payable within 30 days thereeer. (ii) the amount of the unpaid principal indebtedness secured by 12 SUBROGATION UPON PAYMENT OR SETTLEMENT. the insured mortgage as limited or provided under Section 8 of these Condi- tions and Stipulations oras reduced under Section 9 of these Conditions and (a) The Company's Right shall Subrogation. Stipulations.at the time the loss or damage insured against by this policy l whenever f�t�ry shag have settled and paid a darn under this occurs:together with interest thereon;Or policy.all right d subrogation shag vest n the Company unaffected by any m the difference between the value of the insured estate or act d the assured claimant. ( } The Company shalt be subrogated'to and be enrolled b all rights and interest as insured and the valued the insured estate or interest subject to remedies which the insured claimant would have had against any person the defect,lien or encumbrance insured against by this policy. or property in respect to the claim had this policy not been issued.If requested (b) In the event the insured has acquired the estate or interest in the by fie Company,the insured da•mant shag transfer to the company an nights manner described in Section2(a)of these Conditions and Stipulations or has and remedies against any person or property necessary in order to perfect conveyed the title,then the liability of the Company shall continue as set forth this right of subrogation.The insured claimant shag permit the Company to to Section 7(a)of these Conditions and Stipulations sue,Compromise or settle in the name of the insured claimant and to use (c) The Company will pay only those costs,attorneys fees and expenses the name of the insured claimant in any transaction or litigation involving these incurred in accordance with Section 4 d these Conditions and Stipulations rights or remedies. It a payment on account of a claim does not fully cover the loss of the corx+nued on refna+topr of cow Sh M CONDITIONS AND STIPULATIONS—CONTINUED insured claimant,the Company shall be subrogated to all 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 mailers when the Amount of Insurance is in excess of$1.000.000 cLpal,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 NBiwithstanding 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 substitute the per- may include attorneys fees only it 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 sifus of the land shall apply to an arbitration under the has knowledge of any claim of title or interest adverse to the title to the estate Title Insurance Arbitration Rules. or interest or the priority or enforceability of the lien of the insured mortgage. A copy of the Rules may be obtained from the Company upon request. as insured,the Company shall be required to pay only that part of any losses 14. LIABILITY LIMITED TO THIS POLICY,POLICY ENTIRE CONTRACT. insured against by this policy which shall exceed the amount,if any,lost to (a) This policy together with as endorsements,if any,attached hereto the Company by reason of the impairment by the insured claimant of the Com- by the Company is the entire policy and contract between the insured and pany's right of subrogation. the Company.In interpreting any provision of this policy,this policy shall be (c) The Company's Rights Against Non-insured Obligor& 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 indem- and which arises out of the status of the lien of the insured mortgage or of nities,guaranties,other policies of insurance or bonds,notwithstanding any the title to the estate or interest covered hereby or by any action asserting terms or conditions contained in those instruments which provide for subroga- such claim,shall be restricted to this policy. tion rights by reason of this policy. (c) No amendment of or endorsement to this policy can be made ex- The Companry'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 tion l(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)(i)of these Conditions and Stipulations, under applicable law,the policy shall be deemed not to include that provi- 13, ARBITRATION sion and all other provisions shall remain in full force and effect. Unless prohibited by applicable law.either the Company or the insured I& 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 23230L Mailing Address: P.Q connection with its issuance or the breach of a policy provision or otherobliga- Box 27567,Richmond Virginia 23261,or to the Company at its Pacific States Lion.All arbitrable matters when the Amount of Insurance is 51,000,000 Office, 10 Universal City Plaza, 23rd Floor. Universal City, CA 9160& IN WITNESS WHEREOF, the Company has caused this policy to be signed and sealed, to be valid when countersigned by an authorized officer or agent of the Company, all in accordance with its By-Laws. lawyersZideInsurance Corporation C� Attest: s By: 40 / Secretary �"°"+ President C rntsited _ Authorized Officer or Agent POLICY OF TITLE INSURANCE A WOAD 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 .wy1etsTtdeInsurance orporatlon P.O. Box 27561 �� Richmond,Virginia 23261 ',,,moo, CONDOMINIUM PLANS FOR SHEET 11 Or 32 LOT 1 OF TRACT :462a. IN THE CITY OF WMINCTON BEACH. COUNTY OF ORANGE. STATE OF CALIFORNIA. AS SHOWN ON A MAP RECOROEO IN 1IAP OOOK 706. PACES 27 THROUGH 29. INCLUSIVE. OF MISCELLANEOVS LIAPS. IN THE OFFICE OF THE RECOROER OF SAIO COUNTY. PHASE ONE OF PACIFIC PARK VILLAS p b 722 20 tg 17 16 ,.00' CrMCK) KrIKOd t"TS g 6a,9' 6a,9• S 89'40'27' E-, H tt 12 13 t4 10 15 a 4 5 3 6 w� nh 7 I L2 8 ` r=Zr 60.41' 25.00' 57.64' SCALE: 1"=40' LacR Mwae 9A)C.m tOo"MCL u..r. 0 " "•�sWeG°IA��°'�ASSOCIATION PROPERTY, �� : UNI NUMBERS & TIES "SSOCI"T°""°"R"92auKs a..s 9•09K JOB NO. 42415 HALL k FOREMAN. INC. WHEN RECORDED MAIL TO: NORWEST MORTGAGE, INC. 3601 MINNESOTA DRIVE BLOOMINGTON, M21 55435 LOAN NMIBER: 7297630 BRANCH: SNA-B [Space Above This Line For Recording Data DEED OF TRUST 71[IS DEED OF TRUST("Security Instrument')is made on AUGUST 13, 1996 ,The trustor is BARBAR.A JO WALLACE, AN UNMARRIED WOMAN ('Borrower').The trustee is STAN-SHAW CORPORATION, A CALIFORNIA CORPORATION ('Trustee").The beneficiary is NORWEST MORTGAGE, INC., A CALIFORNIA CORPORATION , which is organized and existing under the laws of CALIFORNIA ,and whose address is 405 S.W. 5TH STREET DES MOINES, IA 50328 ('Lender"). Borrower owes Leader the principal sum of ONE HUNDRED THIRTY SEVEN THOUSAND AND N01100 Dollars(U.S. $ 137,000.00 ). This debt is evidenced by Borrower's note dated the same date as this Security Instrument('Note'), which provides for monthly payments,with the full debt, if not paid earlier,due and payable on SEPTEMBER 01, 2026 This Security Instrument secures to Lender: (a)the repayment of the debt evidenced by the Note,with interest,and all renewals, extensions and modifications of the Note, (b) the payment of all other sums, with interest, advanced under paragraph 7 to protect the security of this Security Instrument; and (c) the performance of Borrower's covenants and agreements under this Security instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust,with power of sale, the following described property located in ORANGE County, California: CALIFORNIA-Single Family-Fannie Maeffreddie Mae UNIFORM INSTRUMENT Form 3005 9190 pao.I of 7 U-6053-1 (01195) 1 P 4 s` • 0 0 0 7 2 9 7 6 3 0 G 0 0 0 0 0 0 3 0 • LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF. which has the address of 18051 JOYFUL LANE#205 18051 JOYFUL LANE#205 HUNTINGTON BEACH,CA 92648 HUNTINGTON BEACH,CA 92648 ("Property Address"); ("Mailing Address"); 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 seized 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. Section 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. CALIFORNIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3005 9/90 Pape 2 of 7 D-6053-2(01/95) 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, Fender 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 Iate 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 lien by, or defends against enforcement of the lien in, legal proceedings which in the Lender's opinion operate to prevent the enforcement of the lien, or(c) secures from the holder of the lien an agreement satisfactory to Lender subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument, Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of notice. 5. 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 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 Gender'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 shalt 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 I 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, tnless 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 crinunal, 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 CALIFORNIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3005 9,90 ,,Q.,*f, D-6053-3(0119S) to provide Lender with any material information) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Instrument is on a leasehold, Borrower shall comply with all the provisions of the lease. If Borrower acquires fee title to the Property, the leasehold and the fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Lender may do and pay for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may include paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender does not have to do so. Any amounts disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Borrower requesting payment. 8. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Instrument, Borrower shall pay the premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or ceases to be in effect, Borrower shall pay the premiums required to obtain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of the mortgage insurance previously in effect, from an alternate mortgage insurer approved by Lender. If substantially equivalent mortgage insurance coverage is not available, Borrower shall pay to Lender each month a sum equal to one-twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or ceased to be in effect. Lender will accept, use and retain these payments as a loss reserve in lieu of mortgage insurance. Loss reserve payments may no longer 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 or claim for damages, direct or consequential, in connection with any 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 greater 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 multiplied 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 provides, 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 award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply the proceeds, at its option, either to restoration or repair of the Property or to the sums secured by 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. CALIFORNIA-Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT Form 3005 9/90 Page 4 of 7 D-60534(01195) 12. Successors and Assigns Bound; Joint and Several Liability; Co-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 Iaw 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 Borrower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which the Property is located. In the event that any provision or clause 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. Borrower's Copy. Borrower shall be given one conformed copy of the Note and of this Security Instrument. 17.Transfer of the Property or a Beneficial Interest in Borrower. If all 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. 18. 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) S days (or such other period as applicable law may specify for reinstatement) before We of the Property pursuant to any power of We 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 Us 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 Servicere)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. CAUFORNIA-Single Family-Fannie Mea/Fraddis Mac UNIFORM INSTRUMENT Form 3005 9190 rave a of 7 U-6053-5(01195) 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 leans, 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 a_tions in accordance with Environmental Law. As used in this paragraph 20, 'Hazardous Substances" am 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' mesas 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 Siren 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-existence 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, may require immediate payment in full of all sums secured by this Security Instrument without further demand and may Invoke the power of sale and any other remedies permitted by applicable law. Lender shall be entitled to collect all expenses Incurred in pursuing the remedies provided 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 other 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 tennis designated In the notice of sale In one or more parcels and in any order Trustee determines.Trustee may postpone safe of all or 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 fade 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 Instrument; 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, Gender shall request Trustee to reconvey the Property and shall surrender this Security Instrument and all motes evidencing debt secured by this Security Instrument to Trustee. Trustee shall reconvey the Property without warranty to the person or persons legally entitled to it. Such person or persons shall pay any recordation costs. Lender may charge such person or persons a fee for reconveying the Property, but only if the fee is paid to a third panty (such as the Trustee) for services rendered and the charging of the fee is permitted under applicable law. 23. Substitute Trustee. Lender, at Its option, may from time to time 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. CALIFORNIA-Single Family-Farads MeelFraddta Mac UNIFORM INSTRUMENT Form 3005 9190 P,"0 of 7 ["053-6(01/95) �t 24. Request for Notices. Borrower requests that copies of the notices of default and sale be sent to Borrower's address which is the Property Address. 25. Statement of Obligation Fee. Lender may collect a fee not to exceed the maximum amount permitted by law for furnishing the statement of obligation as provided by Section 2943 of the Civil Code of California. 26. Riders to this Security Instrument. 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 [D I4 Family Rider Graduated Payment Rider Planned Unit Development Rider Biweekly Payment Rider Balloon Rider Rate Improvement Rider Second Home Rider V.A. Rider Others)[Specifyl LEGAL DESCRIPTION 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. Witnesses. / lL l� WGU (Seal) (Seal) BARBARA JO WALLA -Borrower -Borrower (sm) (Sa) -Borrower -Borrower (Seal) (Seat) .Borrower -Borrower (Sign Original Only) STATE OF CALIFORNIA COUNTY OF ORANGE }SS: On AUGUST 131 I996before me, LINDA J. CAMPBELL . personally appeared I�Nams anTitle) BARBARA JO WALLACE personally knows to me {or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) islam 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 hislherltheir signature(s) on the instrument the person(s), or the entity upon behalf of LINDA J.CAMPSELL which the person(s)acted,executed the instrument, a '_ COM`Jl.# 1045344 VvTrNF.SS my hand and official seal. _ ®i c ;_ NOTARY� CO ALW to�} a Ad1i Comm.Espial DEC.20,19N Signatu �iwAf LINI7Vt J. CAMPBELL CAt.IFaRNIA-Single Family-Fannla Mat/Froddle Mae UNIFORM INSTRUMENT Fotm 3005 9190 10we 7 017 D-6053-7(01195) LEGAL DESCRIPTION ' PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in Common ' in and to all of the Common Area defined in Declaration referred to below and i described in the Condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of Official Records of Orange County, over Lot 1 of Tract No. 14828, in the City of Huntington Beach, County of Orange, State of California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of said County. Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2. Unit No. 22 consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. PARCEL 3: Non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of Covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records. PARCEL 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and assigned on the Plan. CONDOMINIUM RIDER THIS CONDOMINIUM RIDER is made this 13TH day of AUGUST, 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 NORWEST MORTGAGE, INC., A CALIFORNIA CORPORATION (the 'Lender ) of the same date and covering the Property described in the Security Instrument and Iocated at: 16051 JOYFUL LAM 0205 HUNTINGTON 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 [Flame 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 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. CONDOMMUM COVENANTS. In addition to the covenants and agreements made in the Security Instrument,Borrower and Lender further covenant 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; (iiii) 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 (H)Borrower's obligation under Uniform Covenant S 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 Iieu of restoration or repair following a loss to the Property,whether to the unit or to 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 Leader. MULTISTATE CONDOMINIUM RIDER-Single Fern ltFannle MaelFreddle Mac UNIFORM Form 3140 9190 LOAN NUMBER:7297630 SNA-B Pme t of D-6061.1 (01196) • 0 0 0 7 2 9 7 6 3 0 C 0 0 0 R 0 0 A 0 • 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 Leader'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 is the case of substantial destruction by fire or other casualty or in the case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the Constituent Documents 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) { ) JO WALLA&S -Borrower -Borrower (Seal) (Seal) -Borrower -Borrower (Scal) (Sell) -Borrower -Borrower MULTISTATE CONDOMINIUM RIDER-Single Family-Fannie Mae/Freddi*Mac UNIFORM Form 3140 9t90 LOAN MJ ME1i: 7297630 SNA-B vw.s 44 2 M0612(01196) REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH LENDING INSTRUCTIONS TO: Tiempo Escrow 19093 Beach Blvd. Huntington Beach, CA 92648 RE: Your Escrow No. 9442-C Preliminary Recitals L Barbara Jo Wallace(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 Iocated at 18051 Joyful Lane, #205,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 instructions, unilaterally and without prior notice, at any time, hereby authorizes and instructs you as follows: Deposit Clause 2. Lender had enclosed herewith the following: (a) A loan agreement providing the terms and conditions by which the Borrower may participate in the Lender's program to assist low or moderate income households to purchase housing which includes an equity sharing provision; (b) A promissory note providing for the repayment of the principal amount of $35,000 plus accrued interest on the unpaid balance thereof at the rate of 5 percent (5%)per annum, due upon the thirtieth anniversary of the Loan, or earlier according to the terms and conditions of the note; (c) A second deed of trust, with a rider, conveying the Subject Real Property to City of Huntington Beach in trust for the purpose of securing performance of the obligations evidenced by the above-described promissory note and certain other obligations, to be executed by Buyer for the benefit of Lender; (d) A"Declaration of Conditions, Covenants and Restrictions for Property," in which Buyer agrees that the Subject Real Property shall only be owned by Buyer or other persons or families of low or moderate income available at an affordable housing cost, as those terms are 1 4s:0:4-96Agrcc:WiLltacc:L tWirsst R1S%-323 W29:96 defined in California Health& Safety Code Sections 5093 and 50052.5, and that Buyer shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Lender and the City of Huntington Beach; (e) The disclosure statement setting forth the conditions upon which the Lender will make the Loan; (f) The notice of the Buyer's right to rescind required by the Truth-in-Lending 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$ 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%Kith an unexpired term of at least one year, and the premium for the initial one year, following the making of the loan must have been paid; (c) The policy shall name Buyer as an insured and shall contain a lender's loss payable endorsement naming Lender as the second loss payee; 2 4`s:G:4-96Agroo.-Wa11uv:I,crAin t RL5 9&523 779,96 (d) The policy shall not have a deductible that exceeds $500. Requirement of Cash Downpayment 5. We require, as a condition of making the loan, that 3% of the purchase price of the Subject Real Property be paid by Buyer, in cash or its equivalent, from Buyer's own funds. Compliance With Truth-In-Lending Requirements 6. We require, as a condition of making the loan, that prior to the disbursement of any loan proceeds you effect compliance with the disclosure and notice requirements imposed by the Federal Truth-in-Lending Act and allow the three-day recission period required by the Truth- in-Lending Act to expire. You shall not request or disburse any loan proceeds unless and until you have complied with each of the following conditions: (a) You shall deliver one copy of the enclosed Disclosure Statement to Buyer at the time Buyer executes the enclosed promissory note, deed of trust and the other enclosed loan documents; (b) At the time a copy of the Disclosure Statement is delivered to Buyer, you shall have Buyer sign another copy of the Right to Rescind Statement, in the space provided for that purpose, to acknowledge receipt of the statement; (c) As soon as Buyer has executed the enclosed loan instruments and documents and you have delivered the copies of the Disclosure Statement and Notice of Right to Rescind and had Buyer acknowledge receipt of the statement, you shall deliver to us the copy of the Disclosure Statement and Notice of Right to Rescind and had Buyer acknowledge receipt of the statement,you shall deliver to us the copy of the Disclosure Statement that Buyer has signed and the copy of the Notice of Right to Rescind that you have retained; and (d) You shall not request or disburse the loan proceeds, or any part of them, until the fourth business day after the date on which the Disclosure Statement is delivered to Buyer or the fourth business day after the date on which the Notice of Right to Rescind is delivered to Buyer, whichever is later. Conditions Precedent to Request for Loan Funds 7. You may request us to deposit the proceeds of the loan with you when, and only when: (a) Buyer has properly executed the enclosed loan agreement promissory note without modification or deletion and you have delivered the original of the executed loan agreement to us; 3 4's:G:4-96,%gree.Wallace:Lendinst RLS 96-523 7129,16 (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; (f) You have delivered to us true and complete copies of all of the escrow instructions that you have received from Buyer and the other parties to the above escrow, including any amendments or supplemental instructions, and any assignments or demands that have been deposited with or delivered to you in connection with the escrow; (g) You have delivered to us a copy of the preliminary title report obtained for this transaction; (h) Continental Lawyers Title Company is prepared and obligated to issue in our favor, on the recordation of the enclosed deed of trust, a standard form American Land Title Association lender's policy in the amount of$35,000, insuring that title to the Subject Real Property is vested in Buyer and that the enclosed deed of trust is an encumbrance against the Subject Real Property that is subject and subordinate only to First Deed of Trust; (i) You have delivered to us 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 df the enclosed deed of trust, an original policy of fire and extended special coverage insurance complying with the requirements set forth in S 4; (k) Buyer has deposited in escrow, to be applied toward payment of the purchase price for the Subject Real Property, the sum of$6,000.00 and has otherwise complied with the downpayment requirements set forth in f 5; 4 4's:G:4-96Age :Wallace:L,endinst RLS 96-523 7/29%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 Tj 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 more than three full business days have elapsed since the date on which the Notice of Right to Rescind were delivered to Buyer; (o) You are otherwise authorized and prepared, under the instructions you have received from all parties, to close the above-referenced escrow within 24 hours after the loan proceeds are deposited with you. (p) There shall be no blanks on any documents at close of escrow. Recording of Deed of Trust 8. When all of the conditions precedent to requesting the deposit of the loan proceeds, as set forth in S 7, have been performed or fulfilled and the loan proceeds have been deposited with you pursuant to your request,you are authorized and instructed to record forthwith the grant deed conveying the Subject Real Property to Buyer, our enclosed deed of trust, our enclosed Declaration of Conditions, Covenants, and Restrictions and to close the above-referenced escrow. You are instructed to record our enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions immediately after you record the grant deed conveying the Subject Real Property to Buyer. Issuance of Title Insurance Policy 9. As soon as you have recorded our enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions, you are instructed to cause to issue and to deliver to us a standard form American Land Title Association lender's title insurance policy in the amount of $35,000, insuring that title to the Subject Real Property is vested in Buyer and that the enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions are encumbrances against the Subject Real Property that is subject to and subordinate only to the First Trust Deed. Conditions Precedent to Disbursement or Loan Proceeds 10. You are authorized to disburse the loan proceeds that we deposit with you when, and only when: 5 4`4:G:4-96Agrce:Wallam:Lendinst "96•523 7r29.'96 (a) All of the conditions precedent to requesting the deposit of the loan proceeds, as set forth in f 7, 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 S 7(h). Requests and Notices 11. The request for the loan proceeds and all other requests and notices directed to Lender shall be in writing and shall be personally delivered or sent by certified or registered mail, postage prepared, return receipt requested to Redevelopment Agency of the City of Huntington Beach, Attn: Agency Clerk, 2000 Main Street,Huntington Beach, CA 92648. Requests shall be deemed to have been made and notices shall be deemed to have been given only when they have been received by the City Clerk. Delivery of Instruments and Documents 12. All instruments and documents that are to be delivered to Lender shall be personally delivered or sent by certified or registered mail, postage prepaid, return receipt requested to Agency Clerk, Redevelopment Agency of the City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648. Instruments and documents shall be deemed to have been delivered only when they have been received by the Agency Clerk. Nonresponsibility for Escrow Fees and Charges 13. Lender shall have no responsibility or liability for any of your escrow fees or charges or for any fees, 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 deviations from, any term or condition of these instructions. However, a term or condition of these instructions can only be waived by means of a written waiver signed by an authorized officer, agent, or employee of Lender. Deviation from these instructions will only be permitted if it is specifically authorized in writing by an authorized 6 4*G:4-96t'1g'e V&11ace:1Andinst RLS 96-523 717"6 r i 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 19. 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`a:0:4-96A&me:Wallacelendinst US 96-523 7,'29:'96 r w . 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: -71'6/9G LENDER C C�� David Biggs Economic Development Director Redevelopment Agency of the City of Huntington Beach Acknowledgment and Acceptance by Escrow Molder Tiempo Escrow acknowledges receipt of the foregoing instructions and the items listed in Paragraph 2 of those instructions. Tiempo Escrow agrees that any funds, instruments, documents, or other items deposited by the Redevelopment Agency of the City of Huntington Beach shall be held and disposed of in accordance 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 Tiem o scrow signature] LINDA J. CAIPBFLL [typed name] ESCRM OFFICER [title] 8 4 r:G:4-9bAgrce:V1'allacc:I,endlrtst RLS 96-323 W29.'96