Loading...
HomeMy WebLinkAboutSUTHERLAND, CAROLINE J. - 1993-11-12 RECORDING REQUESTED BY: City of Huntington Beach Economic Development 2000 Main Street : , i= Huntington Beach, CA 92648 i use' 'HAC #. CA AND WHEN RECORDED MAIL TO: Caroline Sutherland MO JUL 21 A IQ: 0 221 Edgemont Stradsburg, PA 18360 SPACE ABOVE THIS LINE FOR RECORDER'S USE FULL RECONVEYANCE The Redevelopment Agency of the City of Huntington Beach as duly appointed Trustee under Deed of Trust hereinafter referred to, having received from holder of the obligations thereunder a written request to reconvey, reciting that all sums secured by said Deed of Trust have been fully paid, and said Deed of Trust and the note or notes secured thereby having been surrendered to said Trustee for cancellation, does hereby RECONVEY, without warranty, to the person or persons legally entitled thereto, the estate now held by it thereunder. Said Deed of Trust was executed by Caroline J. Sutherland, a single woman, Trustor, and recorded in the official records of Orange County, California, on November 18, 1993 AS INSTRUMENT NO. 93-0793253. DESCRIPTION: See Exhibit A Date: - o o Ray Sir Executive Director The Redevelopment Agency of the City of Huntington Beach, California MA. JN, D V B A RS71 A ' ` . °A fa CITY OF HUNTINGTON BEACH Inter-Office Communication �0� Economic Development Department DATE: May 4, 2000 TO: Gail Hutton, City Attorney a FROM: David Biggs,Director Economic Development \Ice SUBJECT: Research on Loan Forgiveness, 1st Time Home-Buyers Program 1st$100,000 We have reviewed our records regarding funding of 1st Time Home-Buyers Program to determine the names and amount of assistance which benefited the applicants from the 1st $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 12/20/1993, 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. G:/joyce/Intermcmo Reconvey.doc • The total amount of actual funded loans for the original 1st 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 • Gfoycelkntermemo Reconvey.doc 1) co oo. t v () CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department TO: Connie Brockway, City Clerk FROM: Gus Duran, Housing and Redevelopment Manager DATE: October 29, 1999 SUBJECT: Caroline Sutherland Loan No. DPA 93-6 (CDBG) 21372 Brookhurst Street, Huntington Beach, CA Attached please find a copy of the check evidencing the payoff of the loan previously owed by Ms. Caroline Sutherland to the City of Huntington Beach. She lived at 21372 Brookhurst Street in Huntington Beach. The note and deed of trust will now be reconveyed. The loan number was DPA 93-6. If you have any questions please feel free to contact me at Ext. 1529. THIS DOCUMENT WAS PRINTED ON PAPER CONTAINING ULTRAVIOLET FIBERS AND AN ARTIFICIAL WATERMARK.". BANK OF AMERICA CORPORATE BANKING-SERVICES,UNIT 1235 , 035981 dwoodnT>Itle 185 CONCORDYCA 9 520ARD.. :. 1403T STTRUST NAVE,ASUITTE300.' """ �SANTA ANA,CA'92705,.,' :' :'•' - ''-' ' ORDE -109570 _7-01 PAY- Six Thousand :Eight Hundred Twenty- "Five" and"�No T 10/28/99 $6,82 5.00 CITY.-. OF. HUNTINGTON .BEACH N.GUSTAVO'=DURAN'-.V,, _::::.:'::, - - .- e_ -:n ECONOMIC,:DEVELOPMEN..T. DEPT`.' :rc:: ,`e w :.:.-;:, :::: - : :=: :':.. _:a.: ;` ; :._: ' 2000 :MAIN S-T: .,.H UNTINGTON BEACH CA 92648 _ : ,_... . :.:n. :.= � RE:DPA 93-6(CDBG)SUTHERLAND 11'0 3 S 9B L11' 1: L 2 200066 11: L 2 3 S toll L 9 2 7 311■ LANDWOOD TITLE 1403 NORTH TUSTIN AVENUE,SUITE 300,SANTA ANA,CA 92705 035981 10/28/99 LN #DPA 93-6(CDBG)SUTHERLAND $6,825.00 Prin: $6,825.00 Interest : $0.00 Misc Chgs: $0.00 Credit : $0.00 ORDER# 109570 -01 • 1:' PLEASE COMPLETE THIS INFOR MATION DI���GS ' /' �,/,1 �' — /a RECORDING REQUESTED BY. r 907 1 7r) LigaConnie Brockway, City Clerk • 31--A ei �. PM AND WHEN RECORDED MAIL TO: Recorded in Off id 1 t_urd5 of Orange Goi' tY, California Connie Brockway, City Clerk Gar' L. Granville, Clerk-Recorder Office of the City Clerk Page 1 of 22 Fees: $ ,i0 City of Huntington Beach Tax; $ 0.0 2000 Main Street Huntington Beach, CA 92648 • THIS SPACE FOR RECORDER'S USE ONLY TITLE. Re-recording is requested as the date of November 12, 1993 has been inserted on Page 2 of 9 after the initial recordation of document. Connie Brockway City Clerk ,^ City of Huntington Beach / • • THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION • (Additional recording fee applies) • b 11/92 RECORDING RE[�i (�{1D By t k �, ! =f - '- • OLD REPUBUC T�1w COMPANY 4 4l 4L' aSF S• 4t' Li4^i le—NOV — - c=ss RECORDING REQUESTED BY ) Recorded 1- Official RP _r.,_ AND WHEN RECORDED'RETURN TO: ) _us Orange County, California Lee A. Branch, ntY Recorder Redevelopment Agency of the City of of 16 Huntington Beach ) '„ . 2000 Main Street ) Huntington Beach, California 92648 ) Attn: Cr � c,re k . ,) , [Space Above This Line For Recorder's Use.] This document is exempt from recording fees pursuant to Government Code Section 6103. DEED OF TRUST WITH ASSIGNMENTS OF RENTS THIS DEED OF TRUST is made this 12th day of Nov. , 1993, by and among Caroline J. Sutherland,a wo single m n 21372 Brookhurst Street #332,Huntington g , w ose address is g (the 'Trustor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON Beach,Ca. BEACH, a public body corporate and politic(the "Trustee") and THE CITY OF HUNTINGTON BEACH,' a municipal corporation (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to J 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 ar id/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred•upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of.said property secured by a lien thereon or payable under any agreement. • A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of Six Thousand Eight Hundred Twenty Five a wigd 00 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 7\DEEDRENT\09/30/93/B Page 1 of 9 • 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 NOV. 12 , 1993, and in that certain Affordable Housing Agreement currently recorded on the property, insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor-in-interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: 1. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (f) not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor shall make 7\DEEDRENT\09/30/93/13 Page 2 of 9 • separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance.agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such 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 7\DEEDRENT\09/28/93/B Page 3 of 9 • any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property 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 7\DEEDREM109/28/93/B Page 4 of 9 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. ' 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured hereby, whether or not names as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, at Beneficiary's request, monthly, on or before the 15th day of each month, a written operational report. Such operational report shall contain a brief but complete statement of the month's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 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 7\DEEDREM109/30/93/B Page 8 of 9 promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. It the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of 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. 7\DEEDRENT\09/28/93/B Page 7 of 9 Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Agency confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Agency may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents, issues and profits shall not grant to Agency or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Agency or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, 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 71DEEDRENT\09/28/93/B Page 6 of 9 • alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c)join in granting any easement thereon, (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 Agency the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Agency any duty to produce rents from the property affected by this Trust Deed, or cause Agency to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this 7\DEEDRENT\09/28/93/B Page 5 of 9 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 • • •. .-. Deed of ion or failed STATE OF CALIFORNI SS :the right to v COUNTY OF 4441/72 J d in such n On 72 J - /Z l�� before me, et,,iiiit., ��� nay make a ( otary Name and Title) ;t forth. 2,' l G� , cts showing D personally appeared (lc'ic� � __ 6 � 7 `�/ lusive all D ' personally known to me(or proved to me on the basis of satisfactory evidence)to be the person(s)whose name(s) v 0 is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same In his/her/their )ther party a � authorized capacity(ies),and that by his/her/their signature(s)on the instrument the person(s), or the entity upon stor at his Y , beha,f of which the person(s) acted, executed the instrument. .ce as such (,I, WITNESS my hand ` r%icial seal. CHERYL A BFNJN /�/ a ,'•. COMM.#977468 Signature elf, mil. /}97/ ^ a ,`a�. • NOTARY�a�-CALIFORNIA tice of • ,n E COUNTY ►efore set �:, . My Copra.E)Ipcas bv.19,11 (Notarial Seal) ;ALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.5193 ; OPTIONAL SECTION State of --.4 j j CAPACITY CLAIMED BY SIGNER r County of ,g2A,,' 0 Though statute does not require the Notary to 1 fill in the data below, doing so may prove 1 //� / � / )(au," 1..�' invaluable to persons relying on the document. 4 on before me, ���C�i / LIC ❑ INDIVIDUAL 4DATE ME, I LE OF OFFICER-E G., JANE DOE,NOT PUBLIC" ( / ❑CORPORATE OFFICER(S) r personally appeared i `'`" lI. 6 / 1 NA E S)OF SIGNER(S) TITLE(S) rPARTNER(S) LIMITED r f personally known to me-OR-❑ proved to me on the basis of satisfactory evidence 0 0 1 GENERAL r to be the person(()-whose namc(s) is/arc r 1 subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT 1 r • knowledged to me that he/s#ae/they-Executed ❑TRUSTEE(S) 1 OFFICIAL SEAL ' the same in his/hor-,Lthcir authorized ❑ GUARDIAN/CONSERVATOR t r '�"�''4 - JUDY ! CHARDS capacity(ioc), and that by hisf- - -' OTHER: 1 .-�_� Notary Public-California 0 .3- ORANGE COUNTY signatures) on the instrument the person(s}, 1 ' � or the entityupon behalf of which the f 1 - - my commission Et�trea P r ‘ November 3, 1995 person(sj-acted, executed the instrument. 1 1 - - - - -- - SIGNER IS REPRESENTING: r 1 WITNESS my hand and official seal. NAME OF PERSON(S)OR ENTITY(IES) 6 .e Lea,-. 1 SIGNATURE OF NOTARY r 1 OPTIONAL SECTION 1 THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT 6 fTHE DOCUMENT DESCRIBED AT RIGHT: r r NUMBER OF PAGES DATE OF DOCUMENT f fThough the data requested here is not required by law, r it could prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE l .. -N.111'`11.`titi`•`.—..`1ti11.1111ti`1ti111ti'`11• 1 1-. tit`\. ti•`�titi11'`ti. 1-1.11ti\1111\11".1�11.,1111tittiv niocva AIATIMIAI NOTARV ASS(1CIATI(IN•R9RR RPmmPt AVQ P r1 RnY 71 Rd•Cannna Park CA 91309-7184 e stated in said Note or this Deed of Trust of paid prior to the due date thereofi or in this indebtedness en o shall be a by reason thereof, shall thereof, o in performance all sums if notwithstanding Trustor shall have defaulted in payment even any agreement hereunder, and ge Beneficiary, by secured hereby immediately in representations and disclosures res i this order to o induce of That Trustor has made certain P Note or Not 23.B the Promissory misrePresentation or failed Trusteneficiary to make the loan evidenced by material have right to secures, at its option and without notice,e shall haspecivie thei such and in the event thef'Tarytor has made any material fact, Ben irrespective of maturitythe make a to disclose anypayBeneficiary may w and on failure to se herein Beneficiary set forth. declare the indebtednesse tely due and payable,� ale as in paragraph forth facts showing Note or Notes, immediately Beneficiary No.etting Trustee, declaration of presentationit and of an and fors to accept as true and conclusive all e upon stor undeto it affidavit authorizedis� d by Truste P a default by Trustor under this statements therein, and to act thereon hereunder. ed to give to the other party facts and desire or be required art hereto maysuch other place as such notice which any party must be certified mail addressed to the Trustor at his Any The mailing thereof at his office or at sh dr s in writing- address hereinabove set forth in�°'t ng Beneficiary parties hereto may designateof any notice to him at his address herein before of set THE UNDERSIGNED TRUSTOR REQUESTS that a copy default and of any notice of sale hereunder be mailed forth. EE:THE REDEVELOPMENT AGENCY cm-TRUSTOR: TRUST UNTINGTO EACH By: i Ps- � .�/�.��(. THE CITY • By: Title:• By: BENEFICIARY: THE C F HUNTING BEACH . Titl '`' APPROVED AS TO FORM: CitesAttorney Ai Y q-f=53 II- fo' 3 Page 9of9 ' 7\DEEDRENT\09/28/9316 RIDER TO CITY OF HUNTINGTON BEACH DEED OF TRUST AFFORDABLE HOUSING PROGRAM This City of Huntington Beach Deed of Trust is subject to the terms and conditions of that certain Loan Agreement entered into by and between Beneficiary and Trustor dated November 12 , 1993, to which this rider is attached as Exhibit "C" and incorporated by reference ("the Loan Agreement") , pursuant to which Beneficiary has agreed to loan Trustor the sum of Six Thousand Eight Hundre Twenty Five .& 00 Dollars ($6825.00) (the "Loan Amount") with interest at CM yearly. All terms in this Rider to City of Huntington Beach Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. 1. Acceleration/Due on Sale. The Loan and all: interest accrued thereon shall be due and payable upon (i) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any authorization period longer than the loan secured by the First Mortgage, or (iv) is in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the property, or (v) Participant violates any condition of the deed of trust or promissory note, or (vi) the death of Participant (unless the Participant ' s household, occupying the property, contains more than one qualified participant and at least one qualified participant survives) . At the request of Participant, the City may, in its sole discretion, extend the term of the Loan. 2 . 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. 3 . Protection of Beneficiary' s Rights in the Property. A. If Trustor fails to perform the covenants and agreements contained in this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations) , then beneficiary may do and pay for whatever is necessary to protect the value of the Property and Beneficiary's rights in the Property. Beneficiary's actions may include paying any sums secured by a lien which has priority over this Deed of Trust, appearing in court, paying reasonable attorneys' fees and entering on the Property to make repairs. Although Beneficiary may take action under this Section II, Beneficiary does not have to do so. B. Any amount disbursed by Beneficiary under this Section II, shall become additional debt of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the highest rate permitted by law and shall be payable, with interest, upon notice from Beneficiary to trustor requesting payment. 4. Subordination. A. The Beneficiary has found and declared that an economically feasible method of financing, refinancing or assisting first time homebuyers pursuant to the Program on substantially comparable terms and conditions without subordination is not reasonably available. Any first lien on the Property ("First Lien") held by an institutional lender or investor (the "Lender") shall be prior and superior to the Declaration and this Deed of Trust. Thus, any party, its successors and assigns receiving title to the Property through a trustee's sale, judicial foreclosure sale, or deed in lieu of foreclosure, and any conveyance or transfer thereafter, shall receive title free and clear of this Deed of Trust and the Declaration. >� I ORDER NO. 42705-2 SAID LAND IS SITUATED IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS. PARCEL 1: UNIT 60, AS SHOWN AND DEFINED ON THAT CERTAIN CONDOMINIUM PLAN RECORDED APRIL 13, 1978, IN BOOK 12633, PAGE 1776 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA. PARCEL 2: AN UNDIVIDED 1/140TH IN AND TO LOT 1 OF TRACT NO. 9735, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 416, PAGE(S) 23 TO 25 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, CALIFORNIA TOGETHER WITH ALL IMPROVEMENTS THEREON, EXCEPTING THEREFORM CONDOMINIUM UINTS 1 THROUGH 140 INCLUSIVE, LOCATED THEREON. EXCEPTING FROM A PORTION OF SAID LAND ALL OIL, GAS HYDROCARBON SUBSTANCES AND MINERALS, WITHOUT THE RIGHT OF SURFACE ENTRY, AS CONVEYED AND RESERVED IN DEED RECORDED NOVEMBER 10, 1967, IN BOOK 8432, PAGE 301 OF OFFICIAL RECORDS, AND OTHER DEEDS OF RECORD. PARCEL 3: NON-EXCLUSIVE EASEMENTS AS DESCRIBED IN, AND FOR THE PURPOSES SET FORTH IN ARTICLE XIII, SECTION 4 OF THE DECLARATION OF RESTRICTIONS, RECORDED IN BOOK 12633, PAGE 1713, OF OFFICIAL RECORDS. ,..i" , ‘ EX H 1 1 T— A • ORDER NO. 42705-2 / • SAID LAND IS SITUATED IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS. • PARCEL 1: UNIT 60, AS SHOWN AND DEFINED ON THAT CERTAIN CONDOMINIUM PLAN RECORDED APRIL 13, 1978, IN BOOK 12633, PAGE 1776 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA. PARCEL 2: AN UNDIVIDED 1/140TH IN AND TO LOT 1 OF TRACT NO. 9735, IN THE CITY OF HUUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 416, PAGE(S) 23 TO 25 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, CALIFORNIA TOGETHER WITH ALL IMPROVEMENTS THEREON, EXCEPTING THEREFORM CONDOMINIUM UINTS 1 THROUGH 140 INCLUSIVE, LOCATED THEREON. • EXCEPTING FROM A PORTION OF SAID LAND ALL OIL, GAS HYDROCARBON SUBSTANCES AND MINERALS, WITHOUT THE RIGHT OF SURFACE ENTRY, AS CONVEYED AND RESERVED IN DEED RECORDED NOVEMBER 10, 1967, IN BOOK 8432, PAGE 301 OF OFFICIAL RECORDS, AND OTHER DEEDS OF RECORD. 'ORNIA ALL-PURPOSE ACKNOWLEDGMENT • No.5193 ate of . . A.- -1/�� IN OPTIONAL SECTION j CAPACITY CLAIMED BY SIGNER tCounty of (i.AbiL Though statute does not require the Notary to f / 0fill in the data below, doing so may prove 1/ , invaluable to persons relying on the document. 1 On //� 7/j� before m= _.. - �,/ / /. 0. INDIVIDUAL h DATE NA, ,TITLE OF OFFICER-E.G.,"JA DOE,NOTARY PU:i" l���" �J �� El CORPORATE OFFICER(S) 6 _/personally appeared �it� ,}� ! NAM E(S)OF SIGNER(S) U TITLE(S) 71 personally known to me- OR -❑ proved to me on the basis of satisfactory evidence ❑ PARTNER(S) ❑ LIMITED f • to be the person{s)-whose names} is/ate- 0 GENERAL 1 I) subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT knowledged to me that he/sheAtiey-executed 0 TRUSTEE(S) j _ the same in his/irerf#+rei"r authorized r ❑ GUARDIAN/CONSERVATOR f OFFICIAL SEAL capacity(ies), and that by his/hcN hcir ❑ OTHER: I JUDY RICHARDS ' signature(s)-on the instrument the person(s), / ..-. _'q Notary Public-California ' f �,.q,�� .,; or the entity upon behalf of which the f 4 ORANGE COUNTY ,Z�*, My Commission Expires person(sy-acted, executed the instrument. j November 3, 1995 SIGNER IS REPRESENTING: / ,. 1 WITNESS my hand and official seal. NAME OF PERSON(S)OR ENTITY(IES) 1 • 1 , ,P49, JI.ia/1,ca.-2 4 9e SIGNATURE OF NOTARY I OPTIONAL SECTION o THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT f THE DOCUMENT DESCRIBED AT RIGHT: 1 NUMBER OF PAGES DATE OF DOCUMENT 1 Though the data requested here is not required by law, 1 it could prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE j 1t11'`111111'�1111ti1111' "' \1'�1\'�11ti111•t1'�1111ti'�11tit11111'`."`1•�11111-�111ti1ti1111ti"�11•tti'`'�L'`1111'`1'`11t�tiv ©1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 r I/ r J. -en CITY OF HUNTINGTON BEACH 2000 MAIN STREET CALIFORNIA 92648 OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK DEED CERTIFICATION This is to certify that the interest in real property conveyed by the Deed dated November 11, 1993 from Caroline J. Sutherland, a single woman, to the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a governmental agency, is hereby accepted by the undersigned officer or agent on behalf of the Agency pursuant to the authority conferred by Resolution No. 244 of the Agency and the grantee consents to the recordation thereof by its duly authorized officer. Dated: August 15, 1995 CITY OF HUNTINGTON BEACH CONNIE BROCKWAY, CMC CLERK Byii&/_;_4/7/./ 7YEd--bi Deputy Clerk • g:\cc\deedcert (Telephone:714-536-5227) VAAi . /041 5 Recording Requested By And When Recorded Return To: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: G',fy C/e,ek LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 12th day of November , 19 93 by and between Caroline J. Sutherland, a single woman ("Participant") and THE CITY OF HUNTINGTON BEACH, a municipal. corporation ("City"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as 21372 Brookhurst Street #332, , 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 City that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. City desires to utilize Community Development Block Grant funds in a manner consistent with federal guidelines to assist persons of low and moderate income to purchase residential property to increase, improve, and • 7Voank\83093/B04:25 PM preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach. E. The City wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: 1. City Loan City shall loan to Participant (the "Loan") the amount of Six Thousand Eight Hundred Twenty Five and no/100 Dollars ($ 6825.00 ), subject to the conditions and restrictions set forth herein, in the Promissory Note, the Disclosure Statement for the Program, the Deed of Trust and all applicable State, local and federal law. The Loan shall be paid to the seller of the Property (the "Seller") by the City through deposit of the Loan proceeds into escrow with AMC Escrow Divison (the "Escrow Agent") (Escrow No. 7140-C ). The City shall direct the Escrow Agent to apply the proceeds of the Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the City a promissory note in favor of the City as holder, in the amount of the Loan, due in the event that Participant fails to comply with the terms of this Agreement, substantially in the form of the "Promissory Note" attached hereto as Exhibit "B" and incorporated herein. Participant shall also execute and deliver to the City a deed of trust encumbering the Property which shall secure the Promissory Note (the "Deed of Trust"), 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. 2 • 7Voank\83093/B04:25 PM 3. Acceleration/Due on Sale. The Loan and all interest accrued thereon shall be due and payable upon (i) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any authorization period longer than the loan secured by the First Mortgage, or (iv) is in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the property, or (v) Participant violates any condition of the deed of trust or promissory note, or (vi) the death of Participant (unless the Participant's household, occupying the property, contains more than one qualified participant and at least one qualified participant survives). At the request of Participant, the City may, in its sole discretion, extend the term of the Loan. 4. Notice to City. Participant agrees to notify the City 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 Deed of Trust or any lien to which the lien of the Deed of Trust is subordinate (the "First Mortgage"). 5. Occupancy Standards. The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property. 6. Income Information.Participant has submitted an eligibility verification form to the City prior to execution of this Agreement. Participant represents and warrants to the City that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the City is relying upon Participant's representations that Participant's income does not exceed 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. First Time Homebuyer. Participant represents and warrants to the City that neither Participant nor any of Participant's immediate family residing in the Property has, or has had, a present ownership interest in a principal residence at any time during all or any part of the three (3) years immediately prior to the funding of the City Loan. 3 • 7Voank\83093/B04:25 PM 8. Loan Servicing. The City may contract with a private lender to originate and service the City Loan. 9. Participant Financing. Participant shall obtain financing for the purchase of the Property from a reputable institutional lender approved by the City (the "Lender"). The lien secured by the Deed of Trust 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. 10. Covenants. Recorded in the Official Records of Orange County, California, may be a declaration of conditions, covenants and restrictions for property, which is known as an Affordable Housing Agreement or covenants which may be attached as Exhibit "D" hereto and incorporated herein. If such a document is recorded on the property, Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in the Affordable Housing Agreement, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry, all as set forth in the Affordable Housing Agreement. fl uch affordable housing covenant ❑ is @is not (Borrower's initials 1 , applicable to this property. 11. Non-Waiver. Failure to exercise any right the City may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 12. Indemnification. The Participant shall defend, indemnify and hold harmless the City of Huntington Beach and its respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property of this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the City to make such payments, by virtue of the Loan. 4 71loank\83093/B04:25 PM 13. Insurance. Participant shall maintain, during the term of the City Loan, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property. The policy shall name the City as loss payee and shall contain a statement of obligation on behalf of the carrier to notify the City of any material change, cancellation or termination of coverage at least thirty (30) days in advance of the effective date of such material change, cancellation or termination. Participant shall transmit a copy of the certificate of insurance and loss payee endorsement to City within thirty (30) days of the effective date of this Agreement, and Participant shall annually transmit to City a copy of the certificate of insurance and a loss payee endorsement, signed by an authorized agent of the insurance carrier setting forth the general provisions of coverage. The copy of the certificate of insurance and loss payee endorsement shall be transmitted to City as follows: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Housing Department Any certificate of insurance must be in a form approved by the City Attorney. 14. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 5 7Uoank\83093/B04:25 PM 15. Documents. Participant is aware that the City has prepared certain documents to implement the Program and secure repayment of the Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Loan: (a) Disclosure Statement (b) Promissory Note; (c) Deed of Trust; and (d) The Affordable Housing Agreement (Exhibit"D") (e) Notice of Right of Recission • Participant agrees and acknowledges that the Deed of Trust, Loan Disclosure Statement and the Affordable Housing Agreement shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. Participant further agrees to all terms and conditions set forth in the Disclosure Statement which is hereby incorporated as if fully set forth herein. 16. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the City shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and making the Loan. 17. Governing Law. This Agreement shall be governed by the laws of the State of California. Any legal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. 18. Amendment of Agreement. No modification, recission, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and City. 19. City May Assign. City may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 6 • 7Uoank\83093/B04:25 PM , • 20. Participant Assignment Prohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the City, which consent may be given or withheld in the City's sole discretion. No assumption of the Loan shall be permitted at any time. This section shall not prohibit the City's right to assign all or any portion of its rights to the loan proceeds hereunder. 21. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous agreements between the City and the Participant concerning all or any part of the subject matter of this Agreement. 22. Relationship of Participant and City. The relationship of Participant and City pursuant to this Agreement is that of debtor and creditor and shall not be, or be construed to be a joint venture, equity venture, partnership, or other relationship. 23. Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: 7 7Voank\83093/804:25 PM 1 1 To participant: To City: City of Huntington Beach Attention: Housing Department 2000 Main Street Huntington Beach, CA 92648 Either party may change its address for notice by giving written notice thereof to the other party. 24. Term of Agreement. Except as may be provided herein, the term of this Agreement is five (5) years commencing on the date of execution. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. "PARTICI(PANT" Date: I) 1 2, 9-) By: !_. _2 Print Name: r Title: Date: By: Print Name: Title: CITY 0 UNTI'A ,C10► BEA , a mu'By: '-tpal ��, !o, Date: APPROVED AS TO FORM: By: HUTTON, City AttorneysrPkQAIL 1)' 8 • 7Uoank\83093/B04:25 PM Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1) the first Lien; 2) The Declaration;and 3) the Deed of Trust. The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the First Lien Deed of Trust or mortgage requesting a statutory notice of default as set forth in the California Civil Code. • , )2L1*/ TRUSTOR'S G TURE TRUSTOR'S SIGNATURE THE CITY OF HUNTINGTON BEACH 1� V Mayor APPROVED AS TO FORM: Or-Ali /(41'YtAilA417) C;916eAk tAttorney ,(('l hil.r/ FjEVIEWED 'D PPROVED: Dire or of con is evelopmtg • • Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1) the first Lien; 2) The Declaration;and 3) the Deed of Trust. The Trustor shall cause a Request for Notice to be recorded - t Lien STATE OF CALIFORNI / f SS. COUNTY OF , /42'7 1 • On (%7A L l ffY before o�me,(eX i �`/'.X y� -ri - 1. (Notary Name and Title) / personally appeared C '61,,64 he % /c z l-G?'r o i i r \'personally known to me(or proved to me on the basis of satisfactory evidence)to be the person(s)whose name(s) ' 'is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s),or the entity upon - behalf of which the person(s)acted, executed the instrument. WITNESS my hand and icial seal. C� /J 1 CHERYL A.BENSO 1 Signature J/1�� L(�/% �� ,� COMM.#0774 " y NoTAFIY moue•CALIFORNIA 'c . -s''^ - ORANGE couiirY My Conn.Faint Nov,19,19# No.5193 r 1�titi�titi�1�ti�'�1'`'�titi'`1'.1r Ir State of MEM OPTIONAL SECTION f q CAPACITY CLAIMED BY SIGNER County of_1}��� � Though statute does not require the Notary to till in the data below, doing so may prove �`7� /�/� invaluable to persons relying on the document. On /�//y �� before me, �- ��• ///' / �x}/� DGyfG4�, ❑ INDIVIDUAL D E NAME,TITLE OF: FICER-E.G.,"JANE D E,NOTA PUBLIC" f /1 12 CORPORATE OFFICERS 1 personally appeareda I ` At... JL&Q4z I. iiru� , '1r �( r NAME(S)OF SIGNER(S) TITLES) 1 • PARTNER(S) LIMITED 9 [personally known to me- ❑ ❑ 9 to be the person( ) whose name) +sfare El GENERAL f subscribed to the within instrument and ac- 0 ATTORNEY-IN-FACT knowledged to me that he/shc/they executed ❑TRUSTEE(S) f the same in 1i-+e/her/their authorized ❑GUARDIAN/CONSERVATOR j i``"`a MAYBRICELJOHNSON capacity(ies), and that by hi&/geef'/their r p* �. ❑OTHER: K Notary Public�C la 835 signature(s�„on the instrument the person, f j.v.1, • 9 ORANGE COUNTY or the entity upon behalf of which the My Comm.Expires MAY 11,1997 person(s,� acted, executed the instrument. f SIGNER IS REPRESENTING: WITNESS my hand and official seal. NAME OF PERSON(S)O ENTITY(IES) 1 SIGNATURE OF NO P / / 4.1 (/ OPTIONAL SECTIO1 1 !!f THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT J. I i..:_ (J ' iit4.•• /' _'i f THE DOCUMENT DESCRIBED AT RIGHT: g • f NUMBER OF PAGES / DATE OF DOCUMENT _ f Though the data requested here is not required by law, / / �� 1 it could prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE _.i L-,2.<<_• / • ...Lk t� =-- f '\�1't1111111"'`ti1.W.,41 `N.. ' .:SNNN1ti N.. .N.tti\NNN.N 1' ,. .tti'`1111-`'N.N. N111111111ti1111'\'�1-\ti\111111"'`1111\ " .ti . CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.5907 flIJJJJ./fIlJJJflJJ✓lJlJJIJIJJ �yJf�J11lllJC/lJJ./J.I,C.C., /JJJJJl1flIJJIJ./� 2 •. - • State of �,•-z-e-(--. 8 County of �. -,, e— pl On ,Cc 6,-,T /, //�S before me, 1 ny 6c,�v� :� DATE , , NAME,TITLE OF OFFICER-E.G.,"JANE D� ,NOTARY PUBLIC" personally appeared L-ez/ 6 n-1L- • .S�fh•kyr,/a , NAME(S)OF SIGNER(S) ❑ personally known to me - OR - 'proved to me on the basis of satisfactory evidence S to be the person( whose name() is/are 0 subscribed to the within instrument and ac- oknowledged to me that he sh /they executed the same in his/0/their authorized capacity{i-e-s-), and that by hise/their signature(.$) on the instrument the person(s), or the entity upon behalf of which the 0person(s) acted, executed the instrument. WITNESS my hand and official seal. 0 0 o %-7=•<€.., 0 SIGNATURE O.,(X.)C2c•i6L4F TARY 8 ti 0 0 OPTIONAL 0 oThough the data below is not required by law, it may prove valuable to persons relying on the document and could prevent �1 fraudulent reattachment of this form. 0 CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT 0 XINDIVIDUAL 0 ❑ CORPORATE OFFICER p 0 TITLE OR TYPE OF DOCUMENT zem ❑ TITLE(S) o PARTNER(S) ❑ LIMITED 0 S ❑ GENERAL ❑ ATTORNEY-IN-FACT NUMBER OF PAGES 0 ❑ TRUSTEE(S) 0 ❑ GUARDIAN/CONSERVATOR 0 ❑ OTHER: 1f-- IZ - 9 3 ti DATE OF DOCUMENT klSIGNER IS REPRESENTING: 0 1 NAME OF PERSON(S)OR ENTITY(IES) tl SIGNER(S)OTHER THAN NAMED ABOVE ill lllll�fJ.�JJIf�l�Jlf./11.11J.rJllJf../Jll�lf./J�JJlJJJ.r.IIJJ././lJ./.�J�/lfJJfl�lf./JJJ1J ©1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.5907 Cfftl�lJl�!l�lllfl./ llf!lllllf�ll�Jl./if!�1/!�l1l./lJIlJlflllllllJllll l� State of ('ibz�,,., , R County of AC.--, 0 0 • 8 On ii /995 before me, 79 • 0 oATE NAME,TITLE OF FICER-E.G.."JANE DOE,NOTARY LIC" ti g personally appeared T. ) 0 N E(S)OR SIGNER(S) l 0 KO ersonally known to me - OR - C proved to 00 0to be the person(s) whose name(s) is/are 8 subscribed to the within instrument and ac- ti knowledged to me that he/she/they executed 6 a t 'cOME.;991� the same in his/her/their authorized 11 j ' 1YlYComrn.ExPlresMAY11. 97I NotaryPublic-Californiacapacity(ies), and that by his/her/their ORANGE COUNTY signature(s) on the instrument the person(s), i or the entity upon behalf of which the person(s) acted, executed the instrument. 0 0 WITNESS my hand and official seal. 0 0 L� SIGN.A T E OF NOTARY i OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent ) fraudulent reattachment of this form. k\ CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT 0 ❑ INDIVIDUAL ❑ CORPORATE OFFICER �1_ a LeITLE OR TYPE OF DOCUMK-re' .f.Me.ADIU NT TITLE(S) 4 ti fO _�J-" ❑ PARTNER(S) ❑ LIMITED �1� 0 l0hl Q ❑ ATTORNEY-IN-FACT ❑ GENERAL 9 NUMBER OF PAGES ElTRUSTEE(S) 0 ❑ GUARDIAN/CONSERVATOR FVOTHER: J/1 fa/93 • DATE OF DOCUMENT SIGNER IS REPRESENTING: / q��� / ,(/ 1 NAMqEE OFF PERSON(S)OR NTITY(IES) J i�"`."` ( A64 "�_ t� e4 SIGNER(S)OTHER THAN II((VV„AMED ABOVE `11 `, O U `1 111`I�1.��lJ' 1k lflltlllflll�lfl/1llJl/.ClJ1f11Jl�llll!-/lflllf ©1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 • CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.5907 flJlfll�l•/l/�lllllllllflllllll/lllllllJlllJl✓JJllll./lftl,/l.�fllllfllllllllP State of County of aizz.zr._ o 0 On g?4' before me,47'L,6,8-2-/- . '7,-7c A/a/a . n4re. DATE ., J NAME,TITLE OF OFFICER-E.GAIQE DOE,NOTARY P.eBLIC" t\ personally appeared f -? V /fir `�»r 4 NAME(S)OF SIGNER(S) A ❑ personally known to me - OR - X proved to me on the basis of satisfactory evidence S Ato be the person() whose namo{�) is/a-e subscribed to the within instrument and ac- Aknowledged to me that he/she/they executed the same in his/her/their authorized capacity(+e-s), and that by his% /-#-heir- ssignature(s) on the instrument the person(&), 1or the entity upon behalf of which the Aperson(s) acted, executed the instrument. -".� ELZABETH EHZING WITNESS my hand and official seal. A l :-...0- ..% . COMM.#1C1:3397 ? �0� • `z '• Notary Public—Californio s r 11 1L4' 4...sp.:::: CRANGe COUNTY � 1111111 My Comm.ENxpirs9AUG 29.1997 �- i � 11 w s4-' SIGNATURE OF N0-:le-i Y6) 1 11 tl , A � OPTIONAL a 4 Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. 0 CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT A ❑ INDIVIDUAL 0 CORPORATE OFFICER - eel 7_ 4,)e _731 /i-n �G>� ��o �J TITL TITLE CIR TYPE OF DOCUMENT l 111 0 ❑ PARTNER(S) ❑ LIMITED Q 0 ❑ GENERAL / A ❑ ATTORNEY-IN-FACT NUMBER OF PAGES 0 ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR 8 ❑ OTHER: //�/?3 0 DATE OF DOCUMENT l0 0 SIGNER IS REPRESENTING: `l, NAME OF PERSON(S)OR ENTITY(IES) tl At —� SIGNER(S)OTHER THAN NAMED ABOVE `11 �IIJlJll/�t/./l1lJ1•/•ill-/1Jlllllllll./I-/Jllll.II✓ll./l./llf./l/lI.-CJ./llJlllllrlf/ ©1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.5907 �ll�lJ1.r.Il�lll.,rl�lll.�llllJ1J111�ll1tJllllllflrl.�l�ll�IIIJlIJlllJ1�.Clll1.." N State of e -Cw-e� 0 County of 0,e:7 7 e- 0 lI On avy - t/, /9 c)J before me, ��e�u6 ��¢�� , 0 DATE NAME,TITLE OF OFFICE E.G.,"JANE DOE,NOTARY PUBLIC" 1 personally appeared 1 %YLe J. f 6,i • NAME(S)OF SIGNER(S) El personally known to me - OR - proved to me on the basis of satisfactory evidence to be the person 'whose name(s 'are 0subscribed ed to me that he//to the within instrument and ac- s knowledg //they executed �..r h' the same in his/9/their authorized k CONNIE BROCKWAY — �= COMM. 1010570 Z capacity(.ies.)•, and that by his/their z • ::- ;. Notary Public—Cal;,flrnia signature( on the instrument the person( l :'1'-� ` ORANGE COUNTY , MY Comm.Expires DEC 21997 or the entity upon behalf of which the $ 1� person(.acted, executed the instrument. 1 V L66 i'Z 03a seildx3'wwo0 AN € , WITNESS my hand and official seal. 0 ,liNnoc 3oNvao �. °J z 0 1 a owolo0—olgnd Ao;oN :a ,; l Z 0/90101*TIW00 :/ - ��U l�11 Z AVPN10021B 31NNO0 .�/ �71it Lf.`C c<IC c SIGNATURE OF NOTARY ` 0 1 OPTIONAL o Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. 0 CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT 0 o tl % INDIVIDUAL 1 ❑ CORPORATE OFFICER 12621 /A,e6d---- ^,e,- o TITLE OR TYPE OF DOCUMENT 0 TITLE(S) 0 IllPARTNER(S) ❑ LIMITED 0 ❑ GENERAL 9 • III ATTORNEY-IN-FACT NUMBER OF PAGES 0 • ❑ TRUSTEE(S) 0 ❑ GUARDIAN/CONSERVATOR • 0 �� ❑ OTHER: //-/L- 93 $ tl DATE OF DOCUMENT 0l SIGNER IS REPRESENTING: 0 1 NAME OF PERSON(S)OR ENTITY(IES) It SIGNER(S)OTHER THAN NAMED ABOVE ill 9 9 1111�r11I111�111./lllfr.�lllJllll.�llltllllJlJ1111f1�J11.!lllfllll111111�ffllllJJ ©1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 • PROMISSORY NOTE Property Address 21372 Brookhurst Street #332, Huntington Beach, California November 12 , 1993 woman 1. Promise to Pay. Caroline J. Sutherland,a single 'Borrower") promises to pay THE CITY OF HUNTINGTON BEACH, a municipal corporation ("Holder," also referred to as "City"), at the office of the City in Huntington Beach, California, or at such other place as the Holder may designate in writing, the principal sum of SIX THOUSAND EIGHT HUNDRED TWENTY FIVE AND NO/100 Dollars ($6825.00) (the "Note Amount"). The funds used by the City shall be exclusively Community Development Block Grant funds. 2. Interest Rate Simple interest shall be charged by the City on the portion of the Note Amount remaining unpaid from time to time, from the date of the disbursement of the Note Amount until the date which is five years from the date of the disbursements of the Note Amount, at the rate of zero percent (0%) per annum. 3. Affordable Housing Agreement This Promissory Note is made and delivered pursuant to and in implementation of an Affordable Housing Agreement recorded on the property as a covenant binding upon Borrower(the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference, and a Loan Agreement between Borrower and City dated 11/12/93 . This promissory note is attachment "B"to the Loan Agreement. 4. Acceleration The whole of the Note Amount, any interest accrued thereon, and all other payments due hereunder and under the Agreement shall, at the option of the Holder, become due and be immediately payable to the Holder by the Borrower upon the occurrence of any one of the following events: (a) Borrower sells or transfers the Property, including, without limitation, leases, exchanges or rents the Property or any interest therein, whether voluntary or involuntary; (b) Borrower refinances any lien or encumbrances to which the City Deed of Trust is subordinate for loan amount in excess of the then current loan balance secured by such lien or encumbrance; (c) Borrower fails to occupy the Property as Borrower's principal residence pursuant to the Loan Agreement or is in default of any other obligation under the Agreement or violates the terms of the Affordable Housing Agreement; (d) The close of a probate estate following the death of Borrower(unless Borrower is more than one person and one or more of the other people comprising Borrower survive); (e) Borrower defaults on this Promissory Note; page 1 of 3 pages 7/note/10/07/93/B (f) Borrower defaults on the City Deed of Trust; 5. Application of Payments Any sums received hereunder may, at the options of Holder hereof, be applied in any order to the payment of costs, interest, or principal due hereunder. 6. Prepayment Privilege is reserved to make prepayments of principal on this Note without penalty or fee. 7. Non-Waiver Failure to exercise any right the Holder may have or be entitled to, in the event of any default hereunder, shall not constitute a waiver of such right or any other right in the event of subsequent default. 8. Waiver of Presentment. etc. The Borrower and all guarantors and endorsers hereof hereby severally waive presentment for payment, protest and demand, notice of protest, demand and of dishonor and nonpayment of this Note and consent that the Holder hereof may extend the time of payment or otherwise modify the terms of payment of any part or the whole of the debt evidenced by this Note, by agreement between the Holder and Borrower,and such consent shall not alter or diminish the liability of any person or the enforceability of this Note. Each and every party signing or endorsing this Note binds itself as a principal and not a surety. In any action or proceeding to recover any sum herein provided for, no defense of adequacy of security, or that resort must first be had to security or to any other person shall be asserted. All of the terms, covenants, provisions, and conditions herein contained are made on behalf of, and shall apply to and bind, the undersigned and its successors and assigns, jointly and severally. If any attorney is engaged by the City to enforce or construe any provision of this Note or the Deed of Trust, or if the City incurs any other expense by virtue of collecting sums due to the City under this Note, as a consequence of any default or event of default hereunder, with or without the filing of any legal action or proceeding, then Borrower shall immediately pay upon demand all attorney fees and all other costs incurred by the City, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal owing hereunder as if such unpaid attorney fees and costs have been added to the principal. 9. Security of Note This Note is secured by a Deed of Trust (The "Deed of Trust") of even date herewith executed by Borrower covering property located in Orange County, State of California, together with the buildings and improvements now or hereafter erected thereon. 10. Maximum Interest No provision of this Note or any instrument securing payment hereof or otherwise relating to the debt evidenced hereby shall require the payment or permit the collection of interest in excess of the maximum permitted by applicable law. If any excess of interest in such respect is herein or in such other instrument provided for, or shall be adjudicated to be so provided for herein or in any such instrument, the provisions of this paragraph shall govern, and neither Borrower or any endorsers of this Note nor their page 2 of 3 pages 7/note/10/07/93/B • .. • I. STATE OF CALIFOR IA fated to pay the SS. applicable law. CM i"..OUNTY OF /L'g6tr 1 am O , o) ,'fin Aq," , /:2/ /cf_3 before me, C ? %u/ ��'f"-�,, �-7 A I that all funds (Notary Name and Title) ,- I, family or U cZ 1 �4t!! I7 ' commercial c personally appeared n: �f-(A:the "r" O m m personally known to me(or proved to me on the basis of satisfactory evidence)to be the person(q)whose name(s) "the terms g> is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their 3orrower shall 0 P Y( ) by signature(s) person(s), P rust. 3 authorized ca acit Ies, and that his/her/their si natures on the instrument the or the entityupon 2 be:ialf of which the person(s) acted, executed the instrument. c WITNESS my hand a ffjcial seal. _ C,HEtYL B�fOr,,. scheduled J•. COA4M.*977468 a default of the 22 __ ee a 0*. `- NOTARY '% oRAF1SF oo�fm in favor of the Signature• •!.. my Ccrn.EGg Tres un.Is s i _ .. . - outstanding (Notarial Seal) IN WITNESS HEREOF, this instrument has been executed as of the date set forth below. - /93 SIGNATOFY By7/10/01e., l dal !�').l fc)DATE: �I I� �� ,� Borrov�/ r CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.5193 1 State of -/P--/- L j//�Lf" INN OPTIONAL SECTION IIIIIIIIIIIImo ��,J CAPACITY CLAIMED BY SIGNER y County of vi 2" Though statute does not require the Notary to _ fill in the data below, doing so may prove i 761 f ingaluable to persons relying on the document. t f On before me, NA ,TITLE OF OFFICER-E.G.,MA E NOTARY PU INDIVIDUAL f ATE ) f ❑CORPORATE OFFICER(S) personally appeared , 1 � NA E( )OF SIGNER(S) j (} TITLE(S) 1 (fT personally known to me-OR•0 proved to me on the basis of satisfactory evidence 0 PARTNER(S) ❑ LIMITED 1 f to be the personas) whose name(e) is/ape- 0 GENERAL f subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT f f knowledged to me that he/sbLthey-executed 0 TRUSTEE(S) f 1 the same in his�ci1-authorized ❑GUARDIAN/CONSERVATOR r / • ___ - ` capacity{test; and that by his/herft#teir— j f � OFFICIAL SEAL ❑OTHER: J 1 s JUDY RICHARDS signatures on the instrument the person(s)-, j 1 ' ter• M Nofot7► Pubic-CalfforNa ' or the entity upon behalf of which the f " n';J ORANGE personfs}-acted, executed the instrument. f 1 �-�'-t, MY Cornrntf:elon F>�res °•�-• ••• November 3, 1995 SIGNER IS REPRESENTING: 1 Q ✓ - - - - - ' WITNESS my hand and official seal. NAME OF PERSON(S)OR ENTITY(IES) 1 !r I 7 i I j / IGNATURE OF NOTARY f OPTIONAL SECTION 1 THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT r THE DOCUMENT DESCRIBED AT RIGHT: f Though the data requested here is not required by law, NUMBER OF PAGES it could prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE OF DOCUMENT J f ©1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 • 4 respective heirs, personal representatives, successors or assigns shall be obligated to pay the amount of such interest to the extent it is in excess of the amount permitted by applicable law. 11. Business Purpose The undersigned warrants and represents that all funds advanced under this Note shall be applied and are intended solely for personal, family or household purposes as set forth in the Agreement and not for any business or commercial purposes. 12. Notice Any demand or notice to be made or given under the terms hereof or any instrument now or hereafter securing this Note by the Holder to Borrower shall be effective when mailed or delivered in the manner specified in the Deed of Trust. 13. Default In the event that there is a default in payment as scheduled herein or a default under the terms of the Deed of Trust securing this Note, or a default of the Agreement or in any other instrument executed by Borrower or any guarantor in favor of the City, may at its elections and without further notice, declare all amounts of the outstanding principal and accrued interest thereon immediately due and payable. IN WITNESS HEREOF, this instrument has been executed as of the date set forth below. SIGNAAO Y 1i I-1 93 By ��zz rr�e driittAl DATE: "Borrovy 'r" DATE: By "Borrower" THE CI OF H T GT N B CH B ts: APPROVED AS TO FORM: 41"47-- 15 catr Attorney Xr ,i' Pf- page 3 of 3 pages 7/note/1 0/07/93/B Recording Request y And When Reco ed Return To: City of Hunti on Beach 2000 Ma' Street Huntjn6ton Beach, CA 92648 pHousing Department f Property Address: 21372 Brookhurst Street, #332 Huntington Beach, California 92646 CITY OF HUNTINGTON BEACH LOAN ASSISTANCE DISCLOSURE STATEMENT I/We Caroline J. Sutherland, a single woman ("Applicant") understand and agree that the provision of financial assistance from The City of Huntington Beach ("City") is conditioned upon a number of factors, including, but not limited to: • I/We must qualify for a home loan from an institutional lender acceptable to the City. • I/We must pay at least % of the home purchase price from our own funds. • I/We must qualify for assistance under the guidelines of the City's Program. I/We further understand and agree that: • I/We will be responsible for repaying the loan at the time I/we sell, transfer, refinance, or no longer occupy my/our home, or breach any part of the Loan Agreement. • I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to rescind or cancel the loan to: City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 Attn: Housing Department 1 7\discls\Q9/28/93 • The City will not require me/us to make payments of principal or interest during the term of the loan. The full balance of principal and interest will be due and payable if I/we do not comply with the terms of the agreement to which this statement is attached. There are no loan closing costs, prepayment penalties or charges, points, fees, finance charges, service charges, investigation fees, credit report fees, insurance premiums, notary or esc(ow 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 City shall not be held responsible for any costs associated with the institutional loan for the home I/we purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The City cannot ensure that information provided by or on behalf of Applicant will be kept confidential. • The City shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/we assume all responsibility for determining whether I/we desire to be considered for the Program, and I/we will inform myself/ourselves as to the availability and terms of other public or private loans. • The City shall not be charged with knowledge of the contents of the documents of the primary lender. 2 7\discls\09/28/93 • The City financial assistance I/we receive under this Program may be considered to be income for purposes of federal or state income taxes and the City shall not be held responsible for the payment of any taxes which I/we may incur by virtue of the receipt of such financial assistance. Dated: i I i� 93 ! �/ pAe �+,t t A)L. I Signature ppli ant Dated: Signature of applicant Dated: Signature of applicant APPROVED AS TO FORM: 9 Y Attorney 3 7\discls\09/28/93 kECEIVEC CITY CLERK CITY OF HUNTINGTON BEACH Nr._r'T` NOTICE OF RIGHT OF RESCISSIdh 4uc b 3 26 AFFORDABLE HOUSING PROGRAM Notice To Customer Required by Federal Law: You have entered into a transaction on November 12 , 1993 , 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 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 this transaction, any lien, mortgage, or other security interest on your home arising from 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 City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Housing Dept. by mail or telegram sent not later than midnight of November 16 , 19 a j 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) SEE NEXT PAGE FOR IMPORTANT INFORMATION ABOUT YOUR RIGHT OF RESCISSION. 7\resciss2\10/01/93\B , ' EXPIRATION OF RESCISSION PERIODS Direct Loans (Truth in Lending - Real Estate and Home Improvement Loans) Participant's Name Loan Amount Address of Residence In connection with the Agreement of the City of Huntington Beach to make the loan described above, 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 Agreement and its attachments. 2. The undersigned has been notified that it must inform the City of Huntington Beach by today's date should any of them desire to rescind or terminate this transaction. 3. The undersigned acknowledges that this loan has not been funded for at least three days from the date of execution, in order to provide them with an opportunity to rescind should they so desire. 4. The City of Huntington Beach agreed, subject only to the occurrence of certain conditions, to make the above described loan and delivered to each undersigned a Disclosure Statement setting forth terms of said 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 executed this document. 5. Prior to the date shown above, no proceeds of said loan have been disbursed to or for the benefit of any of the undersigned. 6. None of the undersigned have canceled or rescinded the above described loan transaction nor have any of the undersigned notified said Agency of any intention to cancel or rescind said loan transaction. The undersigned request the City of Huntington Beach to proceed with the making of the above described loan in reliance upon the foregoing representations. i;iii,t,lt 4, iji i-V,4 /ill Z111-3 - (Participant's gn re) (Date (Participant's Signature) (Date) 7\resci ss2\10/01/93\B ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE Each of the undersigned hereby acknowledges receipt of two completed copies of the Notice of Right of Rescission. t //: ,2)41/�� Jr' (Participant's Sign re) (Date) (Participant's Signature) (Date) EFFECT OF RESCISSION. When a customer exercises his right to rescind he is not liable for any finance or other charge, and any security interest becomes void upon such a rescission. Within ten (10) days after receipt of a notice of rescission, the creditor shall return to the customer 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 the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, 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 ten (10) days after tender by the customer, ownership of the Property vests in the customer without obligation on his part to pay for it. 7\resc iss 2\10/01/93\B I • ORDER NO. 42705-2 OLD REPUBLIC TITLE COMPANY 201 E. SANDPOINTE, SUITE #700, SANTA ANA, CA 92707 (714) 549-3800 TRANSMITTAL MEMO CUSTOMER: REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH 2000 MAIN STREET HUNTINGTON BEACH, CALIFORNIA LN # ATTN: LOAN CLOSING DATE: 11/26/93 YOUR REF: SUTHERLAND IN CONNECTION WITH THE ABOVE REFERENCES, WE ENCLOSE THE FOLLOWING: (X) PLAT MAP(S) (X) POLICY OF TITLE INSURANCE Ott\(X) ALTA & (COPY) 140 �9q3 ND 6Mc-NI o��N't h..)an Policy American Land Title Association Loan Policy(1992) With ALTA Endorsement Form 1 coverage * * Policy Number FTC 1 5 6 5 0 5 4( (Chi * * SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN * * SCHEDULE B AND THE CONDITIONS AND STIPULATIONS,OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY,herein called the Company,insures,as of Date of Policy shown in Schedule A, against loss or damage,not exceeding the Amount of Insurance stated in Schedule A,sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of a right of access to and from the land; 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; 6. The priority of any lien or encumbrance over the lien of the insured mortgage; 7. Lack of priority of the lien of the insured mortgage over any statutory lien for services, labor or material; (a) arising from an improvement or work related to the land which is contracted for or commenced prior to Date of Policy; or (b) arising from an improvement or work related to the land which is contracted for or commenced subsequent to Date of Policy and which is financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 8. Any assessments for street improvements under construction or completed at Date of Policy which now have gained or hereafter may gain priority over the lien of the insured mortgage; 9. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the insured mortgage in the named insured assignee free and clear of all liens. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. IN WITNESS WHEREOF, the said Old Republic National Title Insurance Company has caused its corporate name and seal to be hereunto affixed by its duly authorized officers as of the date shown in Schedule A, the policy to be valid when countersigned by an authorized officer or agent of the Company. Issued through the Office of: OLD REPUBLIC TITLE COMPANY Old Republic National Title Insurance Company 333 SO.ANITA DRIVE, SUITE 100 400 Second Avenue South ORANGE, CA 92668 Minneapolis, Minne (714)634-2244 By President Authorized Signatory <i/7*4 f eiZZ/ ORNT 1201 Not valid unless Exclusions of Coverage included Attes Secretary CONDITIONS AND STIPULATIONS (c) Amount of Insurance: The amount of insurance after the acquisition 1. Definition of Terms or after the conveyance shall in neither event exceed the least of: The following terms when used in this policy mean: (i) the Amount of Insurance stated in Schedule A; (a) "insured the insured named in Schedule A. The term "insured" (ii) the amount of the principal of the indebtedness secured by the insured mortgage as of Date of Policy, interest thereon, expenses of also includes foreclosure, amounts advanced pursuant to the insured mortgage to assure (i) the owner of the indebtedness secured by the insured compliance with laws or to protect the lien of the insured mortgage prior to the mortgage and each successor in ownership of the indebtedness except a time of acquisition of the estate or interest in the land and secured thereby and successor who is an obligor under the provisions of Section 12(c) of these reasonable amounts expended to prevent deterioration of improvements, but Conditions and Stipulations (reserving, however, all rights and defenses as to reduced by the amount of all payments made; or any successor that the Company would have had against any predecessor (iii) the amount paid by any governmental agency or governmental insured, unless the successor acquired the indebtedness as a purchaser for instrumentality, if the agency or instrumentality is the insured claimant, in the value without knowledge of the asserted defect, lien, encumbrance, adverse acquisition of the estate or interest in satisfaction of its insurance contract or claim or other mater insured against by this policy as affecting title to the guaranty. estate'or interest in the land); (ii) any governmental agency or governmental instrumentality 3. Notice of C/aim to be Given by Insured Claimant which is an insurer or guarantor under an insurance contract or guaranty The Insured shall notify the Company promptly in writing (i) in case of insuring or guaranteeing the indebtedness secured by the insured mortgage, or any litigation as set forth in Section 4(a) below, (ii) in case knowledge shall any part thereof, whether named as an insured herein or not; come to an insured hereunder of any claim of title or interest which is adverse (iii) the parties designated in Section 2(a) of these Conditions to the title to the estate or interest or the lien of the insured mortgage, as and Stipulations. insured, and which might cause loss or damage for which the Company may be (b) "insured claimant": an insured claiming loss or damage. liable by virtue of this policy, or(iii) if title to the estate or interest or the lien (c) "knowledge" or "known": actual knowledge, not constructive of the insured mortgage, as insured, is rejected as unmarketable. If prompt knowledge or notice which may be imputed to an insured by reason of the notice shall not be given to the Company, then as to the insured all liability of public records as defined in this policy or any other records which impart the Company shall terminate with regard to the matter or matters for which constructive notice of matters affecting the land. prompt notice is required; provided, however, that failure to notify the Company (d) "land": the land described or referred to in Schedule A, and shall in no case prejudice the rights of any insured under this policy unless the improvements affixed thereto which by law constitute real property. The term Company shall be prejudiced by the failure and then only to the extent of the "land" does not include any property beyond the lines of the area described or prejudice. referred to in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing 4. Defense and Prosecution of Actions; Duty of Insured Claimant to herein shall modify or limit the extent to which a right of access to and from Cooperate. the land is insured by this policy. (a) Upon written request by the insured and subject to the options (e) "mortgage": mortgage, deed of trust, trust deed, or other contained in Section 6 of these Conditions and Stipulations, the Company at its security instrument. own cost and without unreasonable delay, shall provide for the defense of an (f) "public records": records established under state statutes at Date of insured in litigation in which any third party asserts a claim adverse to the title Policy for the purpose of imparting constructive notice of matters relating to or interest as insured, but only as to those stated causes of action alleging a real property to purchasers for value and without knowledge. With respect to defect, lien or encumbrance or other matter insured against by this policy. The Section 1(a)(iv) of the Exclusions From Coverage, "public records" shall also Company shall have the right to select counsel of its choice (subject to the include environmental protection liens filed in the records of the clerk of the right of the insured to object for reasonable cause) to represent the insured as United States district court for the district in which the land is located. to those stated causes of action and shall not be liable for and will not pay the (g) "unmarketability of the title":an alleged or apparent matter affecting the fees of any other counsel. The Company will not pay any fees, costs or title to the land, not excluded or excepted from coverage, which would entitle a expenses incurred by the insured in the defense of those causes of action purchaser of the estate or interest described in Schedule A or the insured which allege matters not insured against by this policy. mortgage to be released from the obligation to purchase by virtue of a (b) The Company shall have the right, at its own cost, to institute and contractual condition requiring the delivery of marketable title. prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest or 2. Continuation of Insurance the lien of the insured mortgage, as insured, or to prevent or reduce loss or (a) After Acquisition of Title. The coverage of this policy shall damage to the insured. The Company may take any appropriate action under the continue in force as of Date of Policy in favor of (i) an insured who acquires terms of this policy, whether or not it shall be liable hereunder, and shall not all or any part of the estate or interest in the land by foreclosure, trustee's sale, thereby concede liability or waive any provision of this policy. If the Company conveyance in lieu of foreclosure, or other legal manner which discharges the shall exercise its rights under this paragraph, it shall do so diligently. lien of the insured mortgage; (ii) a transferee of the estate or interest so (c) Whenever the Company shall have brought an action or interposed acquired from an insured corporation, provided the transferee is the parent or a defense as required or permitted by the provisions of this policy, the Company wholly-owned subsidiary of such insured corporation, and their corporate may pursue any litigation to final determination by a court of competent successors by operation of law and not by purchase, subject to any rights or jurisdiction and expressly reserves the right, in its sole discretion, to appeal from defenses the Company may have against any predecessor insureds; and (iii) any any adverse judgment or order. governmental agency or governmental instrumentality which acquires all or any (d) In all cases where this policy permits or requires the Company to part of the estate or interest pursuant to a contract of insurance or guaranty prosecute or provide for the defense of any action or proceeding, the insured insuring or guaranteeing the indebtedness secured by the insured mortgage. shall secure to the Company the right to so prosecute or provide defense in the (b) After Conveyance of Title. The coverage of this policy shall action or proceeding, and all appeals therein, and permit the Company to use, continue in force as of Date of Policy in favor of an insured only so long as at its option, the name of the insured for this purpose. Whenever requested by the insured retains an estate or interest in the land, or holds an indebtedness the Company, the insured, at the Company's expense, shall give the Company secured by a purchase money mortgage given by a purchaser from the insured, all reasonable aid (i) in any action or proceeding, securing evidence, obtaining or only so long as the insured shall have liability by reason of covenants of witnesses, prosecuting or defending the action or proceeding, or effecting warranty made by the insured in any transfer or conveyance of the estate or , settlement, and (ii) in any other-lawful act which in the opinion of the Company interest. This policy shall not continue in force in favor of any purchaser from may be necessary or desirable to establish the title to the estate or interest or the insured of either (i) an estate or interest in t"^-!"^d, or (ii) an indebtedness the lien of the insured mr le, as insured. If the company is prejudiced by secured by a purchase money mortgage given-to isured. the failure of the insured Knish the required cooperation, the (Continued on inside back cover.) ORDER NO. 42705-2 SCHEDULE A AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (1992) WITH ALTA ENDORSEMENT FORM 1 COVERAGE POLICY NO : FTC 156505 ORDER NO : 42705-2 AMOUNT OF INSURANCE : $6,825.00 DATE OF POLICY : NOVEMBER 18, 1993 AT 9:01 A.M. PREMIUM : $100.00 1. NAME OF INSURED: THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION, ITS SUCCESSORS AND/OR ITS ASSIGNS 2. THE ESTATE OR INTEREST REFERRED TO HEREIN IS AT DATE OF POLICY VESTED IN: CAROLINE J. SUTHERLAND, A SINGLE WOMAN 3. THE ESTATE OR INTEREST IN THE LAND DESCRIBED HEREIN AND WHICH IS COVERED BY THIS POLICY IS: A CONDOMINIUM AS DEFINED IN SECTION 783 OF THE CALIFORNIA CIVIL CODE IN FEE AS TO PARCEL(S) 1 AND 2 AND AN EASEMENT AS TO PARCEL(S) 3 4. THE MORTGAGE, HEREIN REFERRED TO AS THE INSURED MORTGAGE, AND THE ASSIGNMENTS THEREOF, IF ANY, ARE DESCRIBED AS FOLLOWS: A DEED OF TRUST TO SECURE AN INDEBTEDNESS ORIGINALLY STATED /AS $6,825.00 DATED NOVEMBER 12, 1993 TRUSTOR CAROLINE J. SUTHERLAND, A SINGLE WOMAN TRUSTEE THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, A PUBLIC BODY CORPORATE AND POLITIC BENEFICIARY THE CITY OF HUNTINGTON BEACH, A MUNICIPAL CORPORATION RECORDED NOVEMBER 18, 1993 INSTRUMENT NO. 93-0793253, OFFICIAL RECORDS ORDER NO. 42705-2 SCHEDULE A (CONTINUED) THE LAND REFERRED TO IN THIS POLICY IS SITUATED IN THE COUNTY OF ORANGE, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: UNIT 60, AS SHOWN AND DEFINED ON THAT CERTAIN CONDOMINIUM PLAN RECORDED APRIL 13, 1978, IN BOOK 12633, PAGE 1776 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA. PARCEL 2: AN UNDIVIDED 1/140TH IN AND TO LOT 1 OF TRACT NO. 9735, IN THE CITY OF HUNTINGTON BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 416, PAGE(S) 23 TO 25 OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, CALIFORNIA TOGETHER WITH ALL IMPROVEMENTS THEREON, EXCEPTING THEREFORM CONDOMINIUM UINTS 1 THROUGH 140 INCLUSIVE, LOCATED THEREON. EXCEPTING FROM A PORTION OF SAID LAND ALL OIL, GAS HYDROCARBON SUBSTANCES AND MINERALS, WITHOUT THE RIGHT OF SURFACE ENTRY, AS CONVEYED AND RESERVED IN DEED RECORDED NOVEMBER 10, 1967, IN BOOK 8432, PAGE 301 OF OFFICIAL RECORDS, AND OTHER DEEDS OF RECORD. PARCEL 3: NON-EXCLUSIVE EASEMENTS AS DESCRIBED IN, AND FOR THE PURPOSES SET FORTH IN ARTICLE XIII, SECTION 4 OF THE DECLARATION OF RESTRICTIONS, RECORDED IN BOOK 12633, PAGE 1713, OF OFFICIAL RECORDS. ORDER NO. 42705-2 PART II 1. TAXES, GENERAL SPECIAL, FOR THE FISCAL YEAR 1993-1994, AS FOLLOWS: TOTAL : $1,117.62 1ST INSTALLMENT : $558.81, PAID 2ND INSTALLMENT $558.81, OPEN PERSONAL PROPERTY NONE LAND VALUE . $45,125.00 IMPROVEMENT VALUE : $59,904.00 HOMEOWNERS EXEMPTION: $7,000.00 CODE NO. 04-001 PARCEL NO. 935-82-060 1A. THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO THE PROVISIONS OF SECTION 75, ET SEQ. OF THE REVENUE AND TAXATION CODE OF THE STATE OF CALIFORNIA. 2. THE FACT THAT THE OWNERS OF SAID LAND HAVE NO RIGHTS OF VEHICULAR INGRESS AND EGRESS TO THE PUBLIC HIGHWAY NAMED BELOW EXCEPT THE GENERAL PUBLIC RIGHT TO TRAVEL ON SAME, SAID RIGHTS OF INGRESS AND EGRESS HAVING BEEN RELINQUISHED BY THE DEDICATION PROVISIONS ENDORSED ON THE MAP OF SAID TRACT. PUBLIC HIGHWAY BROOKHURST STREET SAID LAND, HOWEVER, ABUTS ON A PUBLIC THOROUGHFARE, OTHER THAN THE ONE REFERRED TO ABOVE, OVER WHICH RIGHTS OF VEHICULAR ACCESS HAVE NOT BEEN RELINQUISHED. 3. MATTERS IN AN INSTRUMENT WHICH, AMONG OTHER THINGS, CONTAIN OR PROVIDE FOR EASEMENTS, ASSESSMENTS, LIENS AND THE SUBORDINATION THEREOF, PROVISIONS RELATING TO PARTITION, RESTRICTIONS ON SEVERABILITY OF COMPONENT INTERESTS, COVENANTS, 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 FIRST MORTGAGE OR DEED OF TRUST MADE IN GOOD FAITH AND FOR VALUE, BUT WHICH, HOWEVER, DO NOT CONTAIN RESTRICTIONS BASED UPON RACE, COLOR OR CREED, RECORDED IN BOOK 12633, PAGE 1713, OFFICIAL RECORDS. ORDER NO. 42705-2 4. THE EFFECT OF A NOTICE OF ASSESSMENT, WHICH MAY CREATE A LIEN ON SAID PROPERTY, WHICH LIEN REFERS TO THE TRACT DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS THAT REQUIRE COMPULSORY MEMBERSHIP IN AN ASSOCIATION; OR COMPULSORY PAYMENT OF DUES OR ASSESSMENTS; OR COMPULSORY NOTIFICATION OF TRANSFER OF SAID PROPERTY EXECUTED BY SEASPRAY HOMEOWNERS ASSOCIATION MAILING ADDRESS C/O MANAGEMENT SERVICE COMPANY 206 WEST FORTH STREET SANTA ANA, CALIFORNIA 92701 RECORDED JANUARY 8, 1979, IN BOOK 12993, PAGE 437 OFFICIAL RECORDS 5. A DEED OF TRUST TO SECURE AN INDEBTEDNESS ORIGINALLY STATED / AS $122,850.00 DATED NOVEMBER 16, 1993 TRUSTOR CAROLINE J. SUTHERLAND, A SINGLE WOMAN TRUSTEE CALIFORNIA RECONVEYANCE COMPANY, A CALIFORNIA CORPORATION BENEFICIARY GREAT WESTERN BANK, A FEDERAL SAVINGS BANK RECORDED NOVEMBER 18, 1993 INSTRUMENT NO. 93-0793252, OFFICIAL RECORDS pol/24P/dma/93 ORDER NO. 42705-2 SCHEDULE B PART II IN ADDITION TO THE MATTERS SET FORTH IN PART I OF THIS SCHEDULE, THE TITLE TO SAID ESTATE OR INTEREST IN THE LAND DESCRIBED OR REFERRED TO IN SCHEDULE A IS SUBJECT TO THE FOLLOWING MATTERS, IF ANY BE SHOWN, BUT THE COMPANY INSURES THAT SUCH MATTERS ARE SUBORDINATE TO THE LIEN OR CHARGE OF THE INSURED MORTGAGE UPON SAID ESTATE OR INTEREST: NONE 100, 8.1, 116 FTGIS 1100 Attached to: * INDORSEMENT * * t OLD REPUBLIC NATIONAL 91, * TITLE INSURANCE COMPANY * * * a Corporation, of Minneapolis, Minnesota The Company hereby insures against loss which said Insured shall sustain by reason of any of the following matters: 1. Any incorrectness in the assurance.which the Company hereby gives: (a) That there are no covenants, conditions, or restrictions under which the lien of the mortgage referred to in Schedule A can be cut off, subordinated, or otherwise impaired; (b) That there are no present violations on said land of any enforceable covenants, conditions or restric- tions; (c) That, except as shown in Schedule B, there are no encroachments of buildings, structures, or im- provements located on said land onto adjoining lands, nor any encroachments onto said land of buildings, structures, or improvements located on adjoining lands. 2. (a) Any future violations on said land of any covenants, conditions, or restrictions occurring prior to acquisition of title to said estate or interest by the Insured, provided such violations result in impairment or loss of the lien of the mortgage referred to in Schedule A, or result in impairment or loss of title to said estate or interest if the Insured shall acquire such title in satisfaction of the indebtedness secured by such mortgage; (b) Unmarketability of the title to said estate or interest by reason of any violations on said land, occur- ring prior to acquisition of title to said estate or interest by the Insured, of any covenants, conditions, or restrictions. 3. Damage to existing improvements, including lawns, shrubbery or trees: (a) which are located or encroach upon that portion of the land subject to any easement shown in Schedule B, which damage results from the exercise of the right to use or maintain such easement for the purposes for which the same was granted or reserved; (b) resulting from the exercise of any right to use the surface of said land for the extraction or develop- ment of the minerals excepted from the description of said land or shown as a reservation in Sched- ule B. 4. Any final court order.or judgment requiring removal from any land adjoining said land of any encroach- ment shown in Schedule B. Wherever in this indorsement any or all the words "covenants, conditions or restrictions" appear, they shall not be deemed to refer to or include the terms, covenants and conditions contained in any lease referred to in Sched- ule A. No coverage is provided under this indorsement as to any covenant, condition, restriction or other provision relating to environmental protection. The total liability of the Company under said policy and any indorsements thereto shall not exceed, in the aggregate, the face amount of said policy and costs which the Company is obligated under the conditions and stip- ulations thereof to pay. This indorsement is made a part of said policy and is subject to the schedules, conditions and stipulations therein, except as modified by the provisions hereof. OLD REPUBUC NATIONAL T1TLE INSURANCE COMPANY A Corporation • 400 Second Avenue South,Minneapolis,Minnesota 55401 (612)371-1111 Aggieviete By: /'iW �; Countersig '�' r = President J Attest L ®� B Y Secretary Validating Officer •.•• CLTA Form 100(Rev.3-25-92) • ALTA LENDER Page of Pages FTGIS 1110_9 Attached to: INDORSEMENT - * * * * OLD REPUBLIC NATIONAL * TITLE INSURANCE COMPANY * * * a Corporation, of Minneapolis, Minnesota • • The insurance afforded by this indorsement 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 Date of Policy, is recorded in those records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge, or filed in the records of the clerk of the United States district court for the district in which the land is located, except as set forth in Schedule B; or NONE (b) any environmental protection lien provided for by any state statute in effect at Date of Policy, except environmental protection liens provided for by the following state statutes: NONE This indorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior indorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior indorsements, not does it extend the effective date of the policy and any prior indorsements, nor does it increase the face amount thereof. • • • • OW REPUBLIC NATIONAL TITLE INSURANCE COMPANY A Corporation 400 Second Avenue South,Minneapolis,Minnesota 55401 (612)371-1111 By: / AWf. a_ Countersiii�.: President Attest: 1`411,41P.4:461. Secretary By Validating Officer CLTA Form 110.9(Rev.3-13-87) (ALTA Form 8.1 (3-27-87))Environmental Protection Lien Page of Pages •• ORDER NO. 42705-2 INDORSEMENT OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY A CORPORATION, OF MINNEAPOLIS, MINNESOTA THE COMPANY ASSURES THE INSURED THAT AT THE DATE OF THIS POLICY THE DIMENSIONS OF THE EXTERIOR BOUNDARY OF LOT 1 OF TRACT NO. 9735 REFERRED TO IN SCHEDULE A OF THIS POLICY, WHICH IS ALSO THE EXTERIOR BOUNDARY OF THE PROJECT, ARE CORRECTLY SHOWN ON THAT MAP RECORDED IN BOOK 416, PAGE(S) 23 TO 25 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. THE COMPANY FURTHER ASSURES THE INSURED THAT THE ESTATE IN SAID LAND REFERRED TO IN SCHEDULE A INCLUDES A SINGLE FAMILY RESIDENCE (CONDOMINIUM) WITHIN THE PROJECT BOUNDARIES, WHICH IS DESIGNATED AS UNIT NO. 60 AND KNOWN AS: 21372 BROOKHURST STREET #332, HUNTINGTON BEACH, CALIFORNIA THE COMPANY HEREBY INSURES THE INSURED AGAINST LOSS WHICH SAID INSURED SHALL SUSTAIN IN THE EVENT THAT THE ASSURANCE HEREIN SHALL PROVE TO BE INCORRECT. THE TOTAL LIABILITY OF THE COMPANY UNDER SAID POLICY AND ANY INDORSEMENTS THEREIN SHALL NOT EXCEED, IN THE AGGREGATE, THE FACE AMOUNT OF SAID POLICY AND COSTS WHICH THE COMPANY IS OBLIGATED UNDER THE CONDITIONS AND STIPULATIONS THEREOF TO PAY. THIS INDORSEMENT IS MADE A PART OF SAID POLICY AND IS SUBJECT TO THE SCHEDULES, CONDITIONS AND STIPULATIONS THEREIN CONTAINED. OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY, A CORPORATION, 400 SECOND AVENUE SOUTH, MINNEAPOLIS, MINNESOTA 55401 (612-371-1111) BY: AUTHORIZED AGENT BY: AL GUDEL PRESIDENT CLTA FORM 116.2 (REV. 7-19-65) ALTA OR CLTA - OWNER OR LENDER lk.,.. , - �, • ), • f , . k„, .... , ,,,:::e.-_______. , . „.„. .11,,. ,.... ,,,,,,„,,..,„.,.,,, .....„ ....,__. „,„, a ,Q /vim. .'t . Etby ;'. 1 tei. •..ki\� 1 I ��y! fop" R� G6J .'I}5: ai T Z- ;.:',f . ON I ar. 1 y � Q i._ :: . (t) tc) '.' .'' C) it ,, , ,.,;(?(,:7) /r...cv._,...'pec2. ,Tvz,..;--tii-e:7;,,, 1_,,,„;.„....3_. f:..: r;-§ i ii.„:::::,..,:....=.,•.1iFirs.,N;.:: .0/4 'M L Elp@Firl.;411..... • . Z74, ;tit 4 •.9 ,;1. t,, ' ' 1 co 1 1 ,,,• .. c..3 , 1 „I i „,,,, ,,_- of I a.. _ ;1 !, .., z •tk ` el r.! (I , r • -.. r.#0,1 ,c 17 •:‘," ..it r; 1----,--------1 i„:„,.....„.„„ A • t'. I .; , t • W It • !1?;11 ...;.••t\ I v LQ_ t r :;., . preIr N, .:10 t). upire.v.,t ,1 c,z .. $ .!•,...,.. qp' , ,� .b ' .,�C?f1 4Z is '=4 ,gyp ,a l!�. 3 `/ r— , :' • • / 6/ O66;. �i r. • na - '' (< A' .C' (Continued from inside front cover.) - Company's obligation to the insured under the policy shall terminate, including together with any costs, attorneys' fees and expenses incurred by the insured any liability or obligation to defend, prosecute, or continue any litigation, with 'clairrffnt which were authorized by the Company up to the time of payment and regard to the matter or matters requiring such cooperation. which the Company is obligated to pay; or 5. Proof of Loss or Damage (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' In addition to and after the notices required under Section 3 of these fees and expenses incurred by the insured claimant which were authorized by Conditions and Stipulations have been provided the Company, a proof of loss or the Company up to the time of payment and which the Company is obligated damage signed and sworn to by the insured claimant shall be furnished to the to pay. Company within 90 days after the insured claimant shall ascertain the facts • Upon the exercise by the Company of either of the options provided for giving rise to the loss or damage.The proof of loss or damage shall describe in paragraphs b(i) or (ii), the Company's obligations to the insured under this the defect in, or lien or encumbrance on the title, or other matter insured policy for the claimed loss or damage, other than the payments required to be against by this policy which constitutes the basis of loss or damage and shall made, shall terminate, including any liability or obligation to defend, prosecute, state, to the extent possible, the basis of calculating the amount of the loss or or continue any litigation. damage. If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage, the Company's obligations to the 7. Determination and Extent of Liability insured under the policy shall terminate, including any liability or obligation to This policy is a contract of indemnity against actual monetary loss or damage defend, prosecute, or continue any litigation, with regard to the matter or sustained or matters requiring such proof of loss or damage. incurred by the insured claimant who has suffered loss or damage by reason of In addition, the insured claimant may reasonably be required to submit to matters insured against by this policy and only to the extent herein described. examination under oath by any authorized representative of the Company and (a) The liability of the Company under this policy shall not shall produce for examination, inspection and copying, at such reasonable times exceed the least of: and places as may be designated by any authorized representative of the (i) the Amount of Insurance stated in Schedule A, or, if Company, all records, books, ledgers, checks, correspondence and memoranda, applicable, the amount of insurance as defined in Section 2(c) of these whether bearing a date before or after Date of Policy, which reasonably pertain Conditions and Stipulations; to the loss or damage. Further, if requested by any authorized representative of (ii) the amount of the unpaid principal indebtedness secured the Company, the insured claimant shall grant its permission, in writing, for any by the insured mortgage as limited or provided under Section 8 of these authorized representative of the Company to examine, inspect and copy all Conditions and Stipulations or as reduced under Section 9 of these Conditions records, books, ledgers, checks, correspondence and memoranda in the custody and Stipulations, at the time the loss or damage insured against by this policy or control of a third party, which reasonably pertain to the loss or damage. All occurs, together with interest thereon; or information designated as confidential by the insured claimant provided to the (iii) the difference between the value of the insured estate Company pursuant to this Section shall not be disclosed to others unless, in the or interest as insured and the value of the insured estate or interest subject to reasonable judgment of the Company, it is necessary in the administration of . the defect, lien or encumbrance insured against by this policy. the claim. Failure of the insured claimant to submit for examination under oath, (b) In the event the insured has acquired the estate or interest produce other reasonably requested information or grant permission to secure in the manner described in Section 2(a) of these Conditions and Stipulations or reasonably necessary information from third parties as required in this paragraph, has conveyed the title, then the liability of the Company shall continue as set unless prohibited by law or governmental regulation, shall terminate any liability forth in Section 7(a) of these Conditions and Stipulations. of the Company under this policy as to that claim. (c) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and 6. Options to Pay or Otherwise Settle Claims; Termination of Liability. Stipulations. In case of a claim under this policy, the Company shall have the following additional options: 8. Limitation of Liability (a) To Pay or Tender Payment of the Amount of Insurance (a) If the Company establishes the title, or removes the alleged or to Purchase the Indebtedness. defect, lien or encumbrance, or cures the lack of a right of access to or from (i) to pay or tender payment of the amount of insurance the land, or cures the claim of unmarketability of title, or otherwise establishes under this policy together with any costs, attorneys' fees and expenses incurred the lien of the insured mortgage, all as insured, in a reasonably diligent manner by the insured claimant, which were authorized by the Company, up to the time by any method, including litigation and the completion of any appeals therefrom, of payment or tender of payment and which the Company is obligated to pay; it shall have fully performed its obligations with respect to that matter and shall or not be liable for any loss or damage caused thereby. (ii) to purchase the indebtedness secured by the insured (b) In the event of any litigation, including litigation by the Company mortgage for the amount owing thereon together with any costs, attorneys' fees or with the Company's consent, the Company shall have no liability for loss or and expenses incured by the insured claimant which were authorized by the damage until there has been a final determination by a court of competent Company up to the time of purchase and which the Company is obligated to jurisdiction, and disposition of all appeals therefrom, adverse to the title or to pay. the lien of the insured mortgage, as insured. If the Company offers to purchase the indebtedness as herein provided, (c) The Company shall not be liable for loss or damage to any the owner of the indebtedness shall transfer, assign, and convey the insured for liability voluntarily assumed by the insured in settling any claim or indebtedness and the insured mortgage, together with any collateral security, to suit without the prior written consent of the Company. the Company upon payment therefor. (d) The Company shall not be liable for: (i) any indebtedness created Upon the exercise by the Company of either of the options provided for in subsequent to Date of Policy except for advances made to protect the lien of paragraphs a(i) or(ii), all liability and obligations to the insured under this the insured mortgage and secured thereby and reasonable amounts expended to policy, other than to make the payment required in those paragraphs, shall prevent deterioration of improvements; or (ii) construction loan advances made terminate, including any liability or obligation to defend, prosecute, or continue subsequent to Date of Policy, except construction loan advances made any litigation, and the policy shall be surrendered to the Company for subsequent to Date of Policy for the purpose of financing in whole or in part cancellation. the construction of an improvement to the land which at Date of Policy were (b) To Pay or Otherwise Settle With Parties Other than the Insured secured by the insured mortgage and which the insured was and continued to or With the Insured Claimant be obligated to advance at and after Date of Policy. (i) to pay or otherwise settle with other parties for or in • (Continued on back cover) the name of an insured claimant any claim insured against under this policy, • (Continued from inside cover.) When the permitted iof the insured claimant occur and the insured—' 9. Reduction of Insurance;Reduction or Termination of Liability. has knowledge of any claim of title or interest adverse to the title to the estate (a) All payments under this policy, except payment made for costs,,. , , .or interest or the priority or enforceability of the lien of the insured mortgage, attorneys' fees and expenses, shall reduce the amount of the insurance pro as insured, the Company shall be required to pay only that part of any losses tanto. However, any payments made prior to the acquisition of title to the insured against by this policy which shall exceed the amount, if any, lost to the estate or interest as provided in Section 2(a) of these Conditions and Company by reason of the impairment by the insured claimant of the Company's Stipulations shall not reduce pro tanto the amount of the insurance afforded right of subrogation. under this policy except to the extent that the payments reduce the amount of (c) The Company's Rights Against Non-insured Obligors. the indebtedness secured by the insured mortgage. The•Company's right of subrogation against non-insured obligors shall (b) Payment in part by any person of the principal of the indebtedness, exist and shall include, without limitation, the rights of the insured to or any other obligation secured by the insured mortgage, or any voluntary partial indemnities, guaranties, other policies of insurance or bonds, notwithstanding satisfaction or release of the insured mortgage, to the extent of the payment, any terms or conditions contained in those instruments which provide for satisfaction or release, shall reduce the amount of insurance pro tanto. The subrogation rights by reason of this policy. amount of insurance may thereafter be increased by accruing interest and The Company's right of subrogation shall not be avoided by acquisition advances made to protect the lien of the insured mortgage and secured thereby, of the insured mortgage by an obligor (except an obligor described in Section with interest thereon, provided in no event shall the amount of insurance be 1(a)(ii) of these Conditions and Stipulations) who acquires the insured mortgage greater than the Amount of Insurance stated in Schedule A. as a result of an indemnity, guarantee, other policy of insurance, or bond and (c) Payment in full by any person or the voluntary satisfaction or the obligor will not be an insured under this policy, notwithstanding Section release of the insured mortgage shall terminate all liability of the Company 1(a)(i) of these Conditions and Stipulations. except as provided in Section 2(a) of these Conditions and Stipulations. 13. Arbitration 10. Liability Noncumulative Unless prohibited by applicable law, either the Company or the If the insured acquires title to the estate or interest in satisfaction of the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules indebtedness secured by the insured mortgage, or any part thereof, it is of the American Arbitration Association. Arbitrable matters may include, but are expressly understood that the amount of insurance under this policy shall be not limited to, any controversy or claim between the Company and the insured reduced by any amount the Company may pay under any policy insuring a arising out of or relating to this policy, any service of the Company in mortgage to which exception is taken in Schedule B or to which the insured connection with its issuance or the breach of a policy provision or other has agreed, assumed, or taken subject, or which is hereafter executed by an obligation. All arbitrable matters when the Amount of Insurance is $1,OOO,OOO insured and which is a charge or lien on the estate or interest described or or less shall be arbitrated at the option of either the Company or the insured. referred to in Schedule A, and the-amount so paid shall be deemed a payment All arbitrable matters when the Amount of Insurance is in excess of $1,OOO,OOO under this policy. shall be arbitrated only when.agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the 11. Payment of Loss demand for arbitration is made or, at the option of the insured, the Rules in (a) No payment shall be made without producing this policy for effect at Date of Policy shall be binding upon the parties. The award may endorsement of the payment unless the policy has been lost or destroyed, in include attorneys' fees only if the laws of the state in which the land is located which case proof of loss or destruction shall be furnished to the satisfaction of permit a court to award attorneys' fees to a prevailing party. Judgment upon the Company. the award rendered by the Arbitrator(s) may be entered in any court having (b) When liability and the extent of loss or damage has been definitely jurisdiction thereof. fixed in accordance with these Conditions and Stipulations, the loss or damage The law of the situs of the land shall apply to an arbitration under shall be payable within 30 days thereafter. the Title Insurance Arbitration Rules. 12. Subrogation Upon Payment or Settlement A copy of the Rules may be obtained from the Company upon request. (a) The Company's Right of Subrogation. 14. Liability Limited to this Policy; Policy Entire Contract. Whenever the Company shall have settled and paid a claim under this policy,all right of subrogation shall vest in the Company unaffected by any act of the (a)b This policyma yis together ewntihre all endorsements,yacrctf betany attached the hereto by the Company is the entire policy and contract between the insured insured claimant. and the Company. In interpreting any provision of this policy, this policy shall The Company shall be subrogated to and be entitled to all rights and be construed as a whole. remedies which the insured claimant would have had against any person or (b) Any claim of loss or damage, whether or not based on negligence, property in respect to the claim had this policy not been issued. If requested by and which arises out of the status of the lien of the insured mortgage or of the Company, the insured claimant shall transfer to the Company all rights and the title to the estate or interest covered hereby, or by any action asserting remedies against any person or property necessary in order to perfect this right such claim, shall be restricted to this policy. of subrogation. The insured claimant shall permit the Company to sue, (c) No amendment of or endorsement to this policy can be made except compromise or settle in the name of the insured claimant and to use the name by a writing endorsed hereon or attached hereto signed by either the President, of the insured claimant in any transaction or litigation involving these rights or a Vice President, the Secretary, an Assistant Secretary, or validating officer or remedies. authorized signatory of the Company. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated to all rights and 15. Severability remedies of the insured claimant after the insured claimant shall have recovered In the event any provision of this policy is held invalid or unenforce- its principal, interest, and costs of collection. able under applicable law, the policy shall be deemed not to include that (b) The Insured's Rights and Limitations. provision and all other provisions shall remain in full force and effect. Notwithstanding the foregoing, the owner of the indebtedness secured by the insured mortgage, provided the priority of the lien of the insured 16. Notices, Where Sent mortgage or its enforceability is not affected, may release or substitute the All notices required to be given the Company and any statement in personal liability of any debtor or guarantor, or extend or otherwise modify the writing required to be furnished the Company shall include the number of this terms of payment, or release a portion of the estate or interest from the lien of policy and shall be addressed to its Home Office: 400 Second Avenue South, the insured mortgage, or release any collateral security for the indebtedness. Minneapolis, Minnesota 55401. Phone(612)371-1111 ALTA Loan Policy(1992) 1421 - APPROVED BY CITY COUNCIL la - .2ra 19,E REQUEST FOR CITY COUNCIL A CITY CLERK ED 93-50 Date: December 20, 1993 Submitted to: . Honorable Mayor and City Council Me ers Submitted by: Michael T. Uberuaga, City Administrator n ` Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic Development Subject: ADDITIONAL FUNDS—DOWN PAYMENT ASSISTANCE PROGRAM Consistent with Council Policy? Pi Yes [ ]New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachmept : STATEMENT OF ISSUE: The initial $100,000 in Community Development Block Grant funds allocated to this program are nearly committed. If the program is to continue, additional funds are required. RECOMMENDED COUNCIL ACTION: 1. Approve appropriation of an additional $100,000 in Community Development Block Grant funds to continue the Down Payment Assistance Program for low and moderate income first time homebuyers throughout the city with a maximum loan amount per borrower of $10,000. 2. Direct the City Attorney to amend loan documents to require borrowers to repay the principal and accrued simple interest at five percent per annum upon resale of the unit. ANALYSIS: As part of the Fiscal Year 1993-94 Community Development Block Grant (CDBG) Program, the Citizens Advisory Board (CAB) recommended and the City Council approved a $100,000 demonstration program to provide down payment assistance to low and moderate first time -- homebuyers. The implementation documents and first round of borrowers were approved by the City Council on October 25, 1993. Since that time additional borrowers have been approved and the list of these is included as Attachment No. 1. Information from participating lenders indicates that there is still substantial additional interest by potential participants (see pending cases included as Attachment No. 2). ' li - r RCA ED 93-50 December 20, 1993 Page two The City Council has previously requested that in the future this program be structured as a loan requiring full repayment of principal and accrued interest upon the sale of the home as opposed •-to the current structure which.forgives the loan if the buyer remains in the same unit for five years. The recommendation section hereof requests the City Attorney to make the necessary changes to the loan documents to accommodate this direction. Further, attached is a sample calculation of the amount of interest which would accrue on a loan of$10,000 at five percent, compounded annually over thirty years. (Attachment No. 3). It is important to note that if the program is restructured to require repayment such payments must be returned to the CDBG program and can only be used for eligible activities as defined by the U.S. Department of Housing and Urban Development (HUD). • FUNDING SOURCE: Community Development Block Grant ALTERNATIVE ACTION: Do not provide additional $100,000 for Down Payment Assistance Program. This will terminate the demonstration program. ATTACHMENTS: 1. Approved Borrowers 2. Potential Borrowers 3. Loan Repayment Sample MTU/BAK/SVK:jar 865j Attachment No. 1 DOWN PAYMENT ASSISTANCE PROGRAM APPROVED PARTICIPANTS December 6, 1993 Loan Participant Amount Diana Culiaciati $13,000 Osman Taban $15,000 Caroline Sutherland $ 6,852 Michelle Schmaderer $14,400 Carol Kanarski $ 4,100 Nicholas Kormeluk $ 8,600 TOTAL $61,952 Attar Went No. 2 CITY OF HUNTINGTON BEACH PENDING PARTICIPANT/DOWN PAYMENT ASSISTANCE PROGRAM Loan Name Amount Low Hoan, Tam $ 6,143 Moderate Heildesch, Rebecca 5,950 Low Quick, Shauna 0 • Low Lonson, Sally 6,926 Moderate Steenveld, Geri 6,250 Low Otto, Thomas 8,831 Low Dieckmeyer, Barbara 10,000 Low Chavez, Jaime $15000 $59,100 1 ATTACHMENT NO. 3 H Y KOTHETICAL EXAMPLE DOWNPAYMENT ASSISTANCE PROGRAM 5% SIMPLE INTEREST Cumulative Year Loan Amount Interest 1st Year $10,000 $ 500 2nd Year 10,500 1,000 3rd Year 11,000 1,500 4th Year 11,500 2,000 5th Year 12,000 2,500 10th Year 15,000 5,000 11-20th Years 20,000 10,000 21-30th Years 25,000 15,000 Total Due $25,000 Total Interest $ 15,000 _ _ v*)i ., CITY OF HUNTINGTON BEACH " INTER-DEPARTMENT COMMUNICATION HUNTINGTON BEACH TO: Liz Ehring, Office Specialist, Economic Development FROM: Connie Brockway, City Clerk SUBJECT: Caroline J. Sutherland - Re-Notarization of Deed of Trust DATE: August 9, 1995 I have attached the original Deed of Trust for you to notarize the signature of Stephen Kohler. Re: Notarization is necessary as the Deed of Trust was recorded without a date filled in on Page 2 of 9. Subsequently, during document repair, Economic Development inserted the date of November 12. In order for the city's original to match the document that is recorded by the county, it is necessary to record. Please return this document at your earliest convenience. g:\95cbmem\95-122cc