HomeMy WebLinkAboutTAM HOANG - 1994-02-28 r� �` — y".. - -.. - •-. _y*- -; }.~ 4KCITYMATIONALA
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'STEWART°TITLE OF-�CA!'"'ORNIA -} .Spec�aIryDeposits 8
3F , Commerce,CA 9Z .L
64ANGE COUNTY DIVI;
TITLE TRUST ACCOUNT:4.-. �. - 1 -0 0015684
'•s;& ,y :,_ 201.0 MAIN STREEET,#250-IRVINE;C 9261}4
:. 16-1606/1220
(714)476-0777
1,0555 'ESCROW NO. 20147.615 D�r /21/1999
• (:', (�, , DOLLARS$ do
FIFTY NINE THOUSAND'- FIVE HUNDRED FIFTY FIVE And 59, 555 . 09
PAY
: 09/100 �
TWO SIGNATURES REQUIRED
;TO C,.a VOID AFT 0 DAYS '
,',. .THE CITY OF HUNTING TON_-i:l CH .:_.
`-' ORDER
-, ,. DEPARTMENT OF"``ECONOM-IG=-DEVELOPMENT'
OF NP
2000 MAIN STREET `` — -- -----
HUNTINGTON BEACH,`,.-CA_-926.48;, M.:.... _ -
° ATTN: GUSTAVO A. DURAN"
RE: LOAN NO: . DPA94-1.0
� . 00. 156841I' 11.1 220.LC306El: 013-110186 L_8u■ -
STEWART TITLE OF CALIFORNIA•ORANGE COUNTY DIVISION•TITLE TRUST ACCOUNT ECEI Y E® 15684
THE ATTACHED CHECK IS IN PAYMENTM OF ITEMS DESCRIBED BELOW PLEASE DETACH BEFORE DEPOSITING
DEC 201999
12/21/19 9 9 ECCNOMAC T VE OPMENT 10-0 0 015 6 8 4
20147615 Order# 10555
SELLER (S) : HOANG
BUYER (S) : SUPERIOR ONE ESCROW ATTN:YAN ESCROW# : 10555
PROPERTY ADDRESS : 409 UTICA AVENUE ##D-37 HUNTINGTON BEACH CA**59 , 555 . 09
PAYOFF - LOAN# : DPA94-10 / TAM NHU HOANG $29, 725 . 37
PAYOFF - LOAN# : DPA94-10 / TAM NHU HOANG $ 8 , 229 . 72
PAYOFF - LOAN# : DPA94-10 / TAM NHU HOANG $21, 600 . 00
VIA MESSENGER/MD
SALES REP :
ea�nwva�pmrnc rglrnry rs wdw cn mar ryurcy wmlea aunrrg tnta p�rnw cn vwttirrpruy. r IIY�
amounts to i 21.600.
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CCIITY (DIF HUNZI'1INGTON BEACH
o Enteir-Office C®mm11IlIr ka llon
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]Economic Development Department
DATE: June 12, 2000
TO: Gus Duran,Housing/Redevelopment Manager
FROM: Joyce DeKreek, Housing/Redevelopment Consultan
SUBJECT: Research on Loan Forgiveness, 1st Time Home-Buyers Program
Redevelopment Set-Aside, $400,000 and Redevelopment Set-Aside,
$750,000
I have reviewed our records regarding funding of lst Time Home-Buyers Program to
determine the names and amount of assistance which benefited the applicants from the
$400,000 in Redevelopment Set-Aside funds approved by the Redevelopment Agency
(RDA) at their November 1, 1993, meeting and from the $750,000 in Redevelopment
Set-Aside funds approved by the RDA for the Pacific Park Villas at their February 6,
1995 meeting.
The Redevelopment Agency approved nine applicants from the$400,000 allocation in
conjunction with the City's CDBG 1st Time Home-Buyers Program and one additional
applicant for the RDA 1"Time Home-Buyers Program only. The RDA portion of these
loans are Bastou($25,000),Dieckmeyer($23,000), Griffen($25,000),Hoang($23,000),
Lawson($23,000), Melvin($35,000), Otto ($23,000), Quick, S. ($16,717), Quick, T.
($25,000), Rivera H. ($25,000). Quick,T. withdrew from the CDBG loan but maintains
the RDA loan. These loans total $243,717.
The Redevelopment Agency approved fifteen(15) applicants from the$750,000
allocation at Pacific Park Villas (PPV)to participate in the Redevelopment Agency 1st
Time Buyer Program. The names and amounts are(Carrillo ($35,000), Forchione
($35,000), Heckethorn($35,000), Hosseinali ($35,000),Hocker($35,000), Lawrence
($35,000), Murch($35,000), Osterhoudt($35,000),Peltier($35,000), Rivera-Burgess
($35,000),Wallace($35,000), Weinfeld ($35,000),Wong ($35,000),Krueck($35,000),
Margoles ($35,000). These loans total $525,000.
Four loans (1V4elkerson/Jniack, Ojeda,Rene/White, Stratton),previously approved by
RDA were not funded.
Gljoyce/Intermemo Recomrey.doc
YS L' fYj
One loan (Wallace)was assumed by another qualified buyer(Stay).
Two applicants have paid their loans: Melvin,paid off his RDA loan 10/21/1997 in the
amount of$40,794.31 and Hoang,paid off his RDA loan on 12/21/1999 in the amount of
$47,208.80. A check in the amount of$4,116.57 was issued to Mr. Hoang for
overpayment, reducing the loan repayment to $43,092.23.
These loans accrue simple interest at 5%, due and payable upon sale to a non qualified
buyer and has shared equity.
Cc: Connie Brockway, City Clerk
Paul D'Alessandro,Deputy City Attorney
David Biggs,Director,Economic Development
John Reekstin,Director of Administrative Services
Dan Villeila, Director of Finance
Jake Rahn,Administrative Services
Hank Reveles, Sr.Accountant
Joyce de Kreek, Economic Development
Steve Holtz,Development Specialist
Gljoyce/Intememo Reconvey.doc
t
PACIFIC PARK VILLAS ($750,000—RDA)
95-01 (2-1-95) Carillo,Ann $ 35,000 7961 Happy Drive,#102
RDA 12-19-94
95-02(2-1-95) Lawrence,James and Jeanette S 35,000 18051 Joyful Lane,#16
RDA 12-19794
95-03 (2-1-95) Wong,Wesley Chi $ 35,000 7681 Happy Drive,#202
RDA 12-19-94
95-04(2-1-95) Hocker, Christopher/Vandereb, Gayle$ 35,000 7681 Happy Drive,#101
RDA 12-19-94 .
95-06 (4-12-95) Rivera,Victor/Burgess,Debra $ 35,000 18061 Joyful Lane,#104
RDA 4-3-95
96-01 (1-24-96) Heckethome,Sean&:Jacquelyn $ 35,000 7871 Happy Drive,#102
RDA 1-16-96
96-02 (3-7-96) Margolis,Peter $ 35,000 18651 Joyful Lane,#104
RDA 3-4-96
96-03 ( Weinfeld,Julie $ 35,000 18061 Joyful Lane,9205
'RDA 4-1-96
96-04(7-17-96) Peltier,Edward $ 35,000 7871 Happy Drive,#201
RDA 7-15-96
96-05 (8-7-96) Wallace,Barbara Jo $ 35,000 18051 Joyful Lane,#205
RDA 8-5-96
96-06(8-7-96) Murch,Gregory $ 35,000 18051 Joyful Lane,#102
RDA 8-5-96
97-01 (1-29-97) Krueck,Deborah $ 35,000 18061 Joyful Lane,#101
RDA 1-21-97
97-02(4-30-97) Osterhoudt,Robert and Kathy $ 35,000 18061 Joyful Lane,#102
RDA
GloyceRntennerno Reconvey.doc
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97-03 (5-14-97) Hossemah, Faroukh $ 35,000 18061 Joyful Lane, #201
RDA
97-04(7-23-97) Forchine, Richard $ 35,000 18051 Joyful Lane, #201
RDA 7-21-97
lst TIME BUYER ASSISTANCE($400,000 RDA)
94-4 (2-11-94) Lawson, Sally $ 23,000 409 Utica Avenue#A-1
- (RDA 1-18-94)
94-5 (2-11-94) Quick, Shauna $ 16,717 409 Utica Avenue#C-32
(RDA 1-18-94)
94-6 (2-11-94) Dieckmeyer,Barbara $ 23,000 409 Utica Avenue#B-21
(RDA 2-22-94)
94-8 (2-11-94) Otto, T/Shorb R $ 23,000 409 Utica Avenue#A-7
(RDA 1-18-94)
94-10 (2-11-94) Hoang, Tam $ 23,000 409 Utica Avenue#D-37
(RDA 2-22-94)
94-11 (5-18-94) Bastou,Valerie $ 25,000 409 Utica Avenue#D-43
(RDA 5-18-94
94-12 (5-18-94) Quick La Reme, Teresa $ 25,000 409 Utica Avenue#A-9
(RDA 5-18-94)
94-13 (6-23-94) Melvin,Patrick $ 35,000 409 Utica Avenue#D-39
(RDA 6-20-94)
94-14 (7-27-94) Rivera,Hector&Iciar $ 25,000 409 Utica Avenue#A5
(RDA 7-18-94)
94-17 (10-4-94) Griffen, Olga Christina $ 25,000 409 Utica Avenue#C-23
(RDA 9-19-94) $243,717
G/joyce/Intermemo Reconvey doe
o a CITY OF HUNTINGTON BEACH
UUU o Inter-Office C®mmunicatioU
Economic Development Department
DATE: May 23, 2000
TO: Gus Duran,Housing/Redevelopment Manager
FROM: Joyce DeKreek, Housing/Redevelopment Specials
SUBJECT: Research on Loan Forgiveness, lst Time Home-Buyers Program
2nd$100,000
I have reviewed our records regarding funding of lst Time Home-Buyers Program to
determine the names and amount of assistance which benefited the applicants from the
2nd$100,000 in CDBG funds approved by the City Council at their December 20, 1993,
meeting
At that meeting eight applicants (H� oang, Heildesch, Quick, Lawson, Steenveld, Otto,
Dieckmeyer and Chavez)were approved to participate in the 1st Time Home-Buyers
Program, totalmg $59,100 However, two (2) applicants (Heildesch, Quick(Shauna)
withdrew (or participated in another program) ,thereby lowering the total amount of
assistance to $53,150 I have no record on Steenveld or Chavez(either on microfilm or
files) and after checking with City Clerk's office, I believe these loans may not have been
funded If that's true,the total amount of assistance is lowered to $31,900
Since that meeting Bastou($5,000), Gnffen($5,300),Melvin ($10,000), Quick(Theresa)
($5,000) and Rivera H ($5,000),were approved for CDBG lst Time Buyer Assistance in
conjunction with the Redevelopment 1st Time Buyer Assistance Quick T signed loan
docs but withdrew prior to recording the docs The CDBG amount of assistance is
$25,300
Two applicants have paid back their loans Hoang, CDBG loan paid on 12/21/1999 in the
amount of$8,229 72 and Melvin, CDBG loan paid on 10-21-1997 in the amount of f
$11,655 36
G loyce/Intermemo Reconvey doc
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These loans are accrued at a 5% simple interest rate, due and payable upon sale, transfer,
etc
Cc Paul D'Alessandro,Deputy City Attorney
Joyce de Kreek, Economic Development
Steve Holz, Development Specialist
G/Joyce/Intermemo Reconvey doc
Ab G oo.3o
CITY OF HUNTINGTON BEACH
Inter-Office Communication
Economic Development Department
TO: Connie Brockway,City Clerk
FROM: Gus Duran,Housing and Redevelopment Manager
DATE: December 27, 1999
SUBJECT: Tam Hoang —409 Utica Avenue#D-37
Loan No.DPA94-10
Attached please find a copy of the check evidencing the payoff of the two loans
previously owed by Ms. Tam Hoang to the Redevelopment Agency of the City of
Huntington Beach. She lived at 409 Utica Avenue#D37 in Huntington Beach. The two
notes and deeds of trust have now been reconveyed. The loan number on both loans was
DPA94-10.
If you have any questions please feel free to contact me at Ext. 1529.
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TE'.N'�RT TITLE OF C� �=ORNIA 4TGiYNAT1otmBANK
ORANGE COUNTY DIVE. 14 - "� .°� 15 6 8 4
TITLE TRUST ACCOUNT t~ �+�. 10-0 0 015 6 8 4
2010 MAIN STREEET,a<2W•IRVINE.CA 92614 ?
(714)476.0777 r 16 1606i1220
r
Order# -10555"_ rESCRowNo.20147615 D�/21/1999
__- [y
PAY FIFTY NINE THOUSAND FIVE HUNDRED FIFTY FIVE And DOLLARSS**59, 555 .09
r 09/100 ;-1 i i
TWO SIGNATURES REOUIRED
THE CITY OF HUNTINGTON -BEACH . _ _ `_ _ VOID DAYS.,
ORDE9 DEPARTMENT_ OF ECONOMIC DEVELOPMENT
OF . 2000 MAIN STREET
.HUNTINGTON BEACH, CA .9264E - r
NP
ATTN: GUSTAVO A. 'DURAN -
RE: LOAN NO. DPA94-10
Q� 1190 1568411' 1: 1 2 20 160661: 013,110 i86 1811,
STEWARTTITLE OF CALIFORNIA•ORANGE COUNTY DIVISION•TITLE TRUST ACCOUSECEIVED 15684
THE ATTACHED CHECK IS IN PAYMENT OF ITEMS DESCRIBED BELOW.PLEASE DETACH BEFORE DEPOSITING
DEC 2 01999
12/21/1999 DEPAECOOMCTIrVNLOPMENT 10-00015684
20147615 Order# 10555
SELLER(S) : HOANG
BUYER(S) : SUPERIOR ONE ESCROW ATTN:YAN ESCROW4:10555
PROPERTY ADDRESS: 409 UTICA AVENUE ##D-37 HUNTINGTON BEACH CA**59, 555.09
PAYOFF - LOAN#: DPA94-10 / TAM NHU HOANG $29,725 .37
PAYOFF - LOAN#: DPA94-10 / TAM NHU HOANG $ 8,229.72
PAYOFF - LOAN#: DPA94-10 / TAM NHU HOANG $21, 600 .00
VIA MESSENGER/MD
SALES REP:
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amomts tv i 21,600.
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11 �� OFFICE OF THE CITY CLERK
_ CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
HUNnNCTON$EACH
TO: Future City Clerks and Deputy City Clerks
FROM: Janelle Case, Deputy City Clerk per Instructions by Connie Brockway, City
Clerk
SUBJECT: Do4vn Payment Assistance Forgivable Loans
DATE. September 16, 1999
The attached documents are included in Ws file to assist you in the future to determine
the forgiveability of the down payment assistance loans.
DOWN PAYMENT ASSISTANCE PROGRAM
Pacific Park Villas _
_ ____. ._— _.__�____._. .---. - ..-•••••--• -CouncitlAgency
Loan No. Name Property Address Amount Date
V 95-01 r Carillo,Ana 7861 Happy Drive#102 92648 35,000 113195
95-02 Lawrence, Jamest Jeanette 18051 Joyful Lane#101A 92648 35,000 __ 113/9_5
95-03 Wong,Wesley 7861 Happry Drive#202 92648 �- 35,000 T 113195
95-04 Hocker, Christopher&Vandereb. Gayle 7861 Happy Drive#101 92648 35,000 _ 113195
95-06 Rivera,Victor& Bur ess, Debra 18061 Joyful Lane#104 92648 35,000 413195
98-0? Heckethome, Sean/Jacquelyn 7871 Happy brive#102 92648 _ 35,000 _ •1/16/96
96-02 - Margolis, Peter 18051 Joyful Lane#104 92648 __�- 35,000 - _ �314196
96-03 Wienfeld, Julie 18061 Joyful Lane#205 92648 _� 35,000 -411196
96-04 Pettier, Edward _ _ _ 78_71 Happy Drive#201 92648 T 35,000 7./15196
96-05 ,% -Wallace, Barbara Jo - 18051 Joyful Lane#205 92648 35,000 815196
96-06 Nlurch,Gregory s. 18051 Joyful Lane#102'92648 35,000 8/5196
Kruectc, Deborah J., .._ ....- — --... - - . .._ 'l8061 Jo ful . .._. . -0-3,
0 _ .. ..-
__ y Lane 4-103 92648__ __ 35,000 ___ _ __ . 1!_21197
97-02 Osterhauelt, Robert/Kathy 18061 Joyful Lane#102 92648 _ _ 35,000 413a197
97-03 Hosseinali, Faroukh 18061 Joyful Lane#201 92648 _ 35,000 5/5/97
97-04 Torchione, Richard 18051 Joyful Lane#201 92648 _ 35,000 — 711197 ?
i
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' CITY OF HUNTI GTON BEACH
Inter-Department Communication
TO: Gus Duran, Economic Development
FROM: Gail Hutton, City Attorney
DATE: June 1, 1999
SUBJECT: Determination of Loan Forgiveness
RLS 99-359
INDEX:
BACKGROUND
You have asked for a determination of whether several loans made by the City of Community
Development Block Grant funds, for the first time home buyer down payment assistance
program, are forgivable.
ISSUE
Are the rune loans forgivable?
ANSWER
Yes,if they were funded with the first$100,000 appropriated for this program.
ANALYSIS
As part of the 1993-94 CDBG program the City Council approved$100,000 as a pilot program
to provide down payment assistance to moderate income households.
We have reviewed several RCAs submitted by your department to the City Council for
implementation of this program. The RCAs we reviewed were the originals in the City Clerk's
office. From our review of these documents,we have developed the following chronology:
10125193:The City Council approved sample loan documents and four participants:Diane
Culaciati,Michele Tullock, Osman Taban, and Caroline Sutherland in the total amount of
$40,475. (RCA attached hereto as Attachment 1).
1 ,
4/s:4-99,%temos:buran327
11/15193: The City Council was requested to approve and additional 5100,000 in CDBG funds
for the program. The Council deferred the item to December 6, 1993. (RCA attached hereto as
Attachment 2). -
12/6/93:The City Council approved three more participants in the original program: Michelle
Schmaderer, Carol Kanarski, and Nicholas Kormeluk. The amounts of their loans are not listed.'
(RCA attached hereto as Attachment 3.)
12/20/93, Item E-17:The City Council approved an additional participant in the program,David
Dixson, for the amount of S 10,000, and increased the amount for participant Nicholas Kormeluk
from 58,600 to S10,600. (RCA attached hereto as Attachment 4.)
12/20/93,Item F-2:The City Council approved an additional S 100,000 for the program,but
changed the program to require repayment of these additional funds. There are two important
attachments to this RCA. The first is entitled"Approved Participants,"and lists the following
six participants: Culiaciati,Taban, Sutherland,Schmaderer,Kanarski, and Kormeluk, in the total
amount of S61,952 2
The second important document attached to this RCA is the list of"Pending Participants." It
shows eight more participants in the total amount ofS59,100. It is not determinable from this
RCA whether these persons were intended to be in the grant program or the loan program, and
we do not know when, if ever,these participants were actually approved.
1/3/94:The City Council approved three more participants in the original,non-repayment
program:Judy Young,Treva Love, and Ellen Ommondson, in the total amount of$31,000.
When added to the previously committed amount of 573,952, the total amount of funds
committed is 5104,952. This exceeds the original S100,000 appropriated for the original,non-
repayment program. The analysis portion of this RCA states that"the approvals herein will be
the first funded with the new appropriation,"which implies that at least a portion of the funds
used for these participants were part of the funds that were conditioned for repayment, as
opposed to the original,non-repayment funds. However, the total numbers Iisted are roughly
consistent with the original S 100,000 set aside for the grant program. The total amount of loan
funds used is less than 55,000. (RCA attached hereto as attachment 5).
Our review of the above documents and chronology of events indicates that the Council did not
intend to require repayment of the original$100,000 appropriation. Clearly,then,the Ioans
made to Culiaciati,Taban, Sutherland, Schmaderer,Kanarski,Dixson and Kormeluk are
forgivable,because they were funded using S73,952 of the first 5100,000 appropriation.
The problem is presented by the transactions with Young, Love, and Ommondson. We believe
that the Council's intent was to not require repayment from these participants. Unfortunately,
there was only$26,048 of the original,non-repayment funds available to these participants, and
collectively, they received$31,000. Thus, a small portion of the funds used for these
Note that an attachment to this RCA lists ten approved participants. Since the dates listed are after the Council
meeting of 12/6193,we believe that this list has been erroneously added to the 12/6193 RCA.
2 Please note that earlier during the same meeting,the Council had also approved David Dixson for S10,000,and an
additional S2000 for Kormeluk. Thus the amount committed from the original S 100,000 was actually 573,952.
2
4/sA-99%1cmos:Dunn527
participants must have come from the second S100,000,which the Council appropriated with the
condition that the loans be repaid,not forgiven.
CONCLUSION
There are two conflicting Council actions. The Council's intent was to include participants
Young, Love and Ommondson in the original, forgivable loan program. However,it appears that
a portion of the funds actually used for the loans to Young, Love and Ommondson were from the
second appropriation of funds,which included a repayment condition. Therefore, we
recommend that the Council clarify this conflict by approval of an RCA that forgives the loans
made to Young,Love and Ommondson.
f`e
Gail Hutton
City Attorney
3
41s:4-99ti1emos:Dursn327
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Council/Agency Meeting Held:5-1 7-99
Deferred/Continued to:
!Approved 0 Conditionally Approved ❑ Denied City Clerk's ignature C-Ce�c! k-�r
Council Meeting Date: May 17, 1999 Department ID Number: ED 99-29
CITY OF HUNTINGTON BEACH
REQUEST FOR REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY__
MEMBERS
C-)
rn
SUBMITTED BY: RAY SILVER, Executive Director
L
PREPARED BY: DAVID C. BIGGS, Economic Development Director, =,
) v
SUBJECT: Authorize the Transferability of 15 Pacific Park Villas Down
Payment Assistance Loans —Approve and Authorize Execution
of Documents
Statement of issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental status,Attachment(s)
Statement of Issue: Currently, the down payment assistance loans made by the
Redevelopment Agency for Pacific Park Villas must be individually approved by the City
Council. In order to facilitate transfers of these loans, staff is requesting that the
Redevelopment Agency establish procedures for administrative approval of these
transactions.
Funding Source: None as a result of this action.
Recommended Action: Motion to:
1. Authorize the Executive Director and the Agency Clerk to execute on behalf of the
Redevelopment Agency any and all documents necessary to transfer to new low and
moderate-income homebuyers the Down Payment Assistance Loans made by the
Agency at the inception of the Pacific Park Villas project. See Attachment No. 3 "List of
Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be
approved as to form by the Agency Counsel).
2. Authorize the Executive Director and Agency Clerk to execute on behalf of the
Redevelopment Agency any and all documents necessary to subordinate or to reconvey
the Agency loans (notes and deeds of trust), as these home owners refinance, sell their
homes or meet their loan obligations, as stated in their notes and deeds of trust. See
Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas."
(Ail documents to be approved as to form by the Agency Counsel).
,5
REQUEST FOR REDEVELOPMENT AGENCY ACTION
MEETING DATE: May 17, 1999 DEPARTMENT ID NUMBER: ED 99-29
Alternative Actionfs�: The Redevelopment Agency can retain the authority to
approve the transferability of each and every Down Payment Assistance Loan made on
this project. The number of loans originated for this project was 16 loans. This means that
each and every time, Agency staff will have to prepare a Request for Agency Action,
thereby increasing staff time and costs. It will also delay the ability the sellers and buyers
to close escrow quickly. In some cases the delays could cause undue hardship and cause
the sale of properties to fall out of escrow.
Analysis-. In 1996, the Redevelopment Agency made 15 Down Payment Assistance
Loans to low- and moderate-income homebuyers purchasing dwellings at the Pacific Park
Villas residential project located near Talbert and Beach. The purpose of these loans were to
expedite the sales of homes in the Pacific Park Villas project and simultaneously meet the
Redevelopment Agency's obligation to assist low and moderate income persons with 20%
Set Aside Funds, as required by Redevelopment Law.
The loans made to these homebuyers were meant to be transferable to other low and
moderate-income families. The City Attorney's Office has been requested to make a
determination of the transferability and has rendered a decision indicating that the loans are
transferable to other homebuyers that meet the income qualification of having incomes below
120% of the median income for Orange County. (See attached memorandum from the City
Attorney's Office).
Some of these homebuyers are now ready to move on with their lives and are desirous to sell
their properties. To facilitate the closing of escrows without significant delays to sellers and
buyers, the Economic Development Department is requesting that the Redevelopment
Agency Board authorize the Executive Director and the City Clerk to administratively manage
the transferability of these loans. This will permit the Executive Director to execute
documents without having to come the Agency Board on each and every loan, especially
since these loans were prepared with the identical notes, deeds of trust and Covenants,
Conditions and Restrictions (CC&R's). The City Attorney's Office has provided an opinion on
the loans' transferability.
Environmental Status: NIA
Attachment Us :
Page Number.'.' No. Description ,
1. City Attorney's Office Memorandum.
2. Sample Loan Documents.
3. 1 List of Down Payment Assistance Borrowers at Pacific Park Villas.
RCA Author: Gus Duran X1529
RCAPPV.DOC -2- 05/05199 9:34 AM
City Attorne 's Office Memorandum
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CITY OF HUNTINGTON BEACH
Inter-Department Communication
TO: David Biggs, Director of Economic Development
FRO.11: Gail Hutton, City Attorney
DATE: April 26, 1999
SUBJECT: Wallace Loan Documents
You have asked several questions concerning the Wallace loan documents.
1. Is the loan transferable?
A. Yes,with the Agency's prior written consent. See Section 18 of the Loan
Agreement.
2, What are the income limits for purchasers?
A. No greater than 120% of median income (moderate income)pursuant to Section 9
of the Loan Agreement.
3. Does the new buyer need to meet the income requirements of the CCRRs?
A. Yes.
4. Is the Equity Share payable if the buyer qualifies under the CC&Rs?
A. Yes.
5. Can the interest be forgiven if the property's fair market value does not exceed 5%per
year?
A. No, unless the Agency approves forgiving the interest.
6. Should the Equity be calculated minus the selling expenses?
A. No.
Please contact me if you have any further questions.
C4
Gail Hutton
City Attorney
4lsA-99Memos:Biggs42b
� CITY OF HUNTINGTON BEACH
Inter-Office Communication
�.-- Economic Development Department
TO: Gail Hutton,City Attorney
Pahl D'Alessandro,Deputy City Attorney
FROM: David C.Biggs,Director of Economic Development
DATE: April 20, 1999
SUBJECT: First Time Home Buyer Loan for Barbara Jo Wallace
Yesterday, April 19, 1999, Gus Duran, the Department's Housing and Redevelopment
Manager met with Ms. Barbara Jo Wallace, her real estate agent and other property
owners of the Pacific Park Villas project to discuss their.concerns regarding First Time
Homebuyer loans made to them by the Redevelopment Agency. As you may recall, at a
previous City Council meeting, Mr. Bob Osterhoudt made a plea to the City Council
requesting assistance for the property owners of this complex. In addition, Ms. Wallace
has written to the Mayor and the City Attorney (April 2, 1999) requesting the
Redevelopment Agency's assistance in resolving her needs to sell her property with the
Agency's assistance.
The Economic Development Department is ready and willing to help Ms. Wallace and
the other property owners sell their homes, as they need to move on with their lives when
they desire,but we are in need of a legal opinion regarding the following issues:
1. Is the loan made to Ms. Wallace, which is similar to those made to the
other buyers cf Pacific Park Villas,transferable?
2. What are the income limit requirements for the purchasers of these homes
when a property owner sells his/her home? (See attached 1999 Orange
County Affordable Housing Woiksheet 'issued by the law firm of
Stradling,Yocca, Carlson&Rauth.)
3. Does a new buyer need to meet theincome requirements established in the
CC &R's?
4120199:Gus Uuran:Houdev: VALLACE
4. Is the "Equity" payable if the sellers sell their home to a buyer that meets
the income requirements established in the Note and the CCRR's?
5. Can the interest be forgiven if the property's "fair market value'does not
exceed 5%per year?
6. Should the "Equity" be calculated minus the selling expenses (See
Section 4A of Loan Agreement)?
We are requesting an immediate opinion on these issues, as Ms. Wallace has already
purchased a home in the State of Washington and has a pending sale of her property in
Huntington Beach in the works, subject to the Agency's determination on these issues. At
the moment, her pending sale is being held up because neither the seller, nor the buyer
knows what to do with the information on the note and deed of trust,or the CUR's.
Attached are copies of Ms. Wallace's documentation. These are the following:
1. Loan Agreement to Ms. Wallace from the Redevelopment Agency.
2. Promissory Note
3. Deed of Trust with Assignment of Rents
4. Lending Instructions
5. Certificate of Proposed Transferee
6. Declaration of Conditions, Covenants and Restrictions for Property
4r2a 99.Gus DurmiloudcwWALLACE
Sample Loan Documents
LOAN AGREEMENT
THIS LOAN AGREEMENT (the "Agreement") is made this S±L day of
199�,_by and between BARBARA JO WALLACE ("Participant") and the
RED VELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body
corporate and politic(the "Agency").
RECITALS
A. Participant has entered into an agreement (the "Purchase Agreement") to purchase
that certain real property commonly known as , 15051 Joyful Lane- #205 . Huntington Beach,
California, and more particularly described in Exhibit A attached hereto and incorporated herein
(the "Property"}-
B. Participant requires assistance to purchase the Property and would not be able to
purchase the Property without such assistance. Participant is a person or family of low or
moderate income and currently earns less than 120% of the current annual median income for the
Orange County area, as those terms are defined by California Health and Safety Code
Section 50093.
C. Participant has represented to the Agency that Participant and Participant's
immediate family intend to reside in the Property at all times throughout the term of this
Agreement.
D. The Agency desires to assist persons of low and moderate income to'purchase
residential property to increase, improve, and preserve low and moderate income housing
available at an affordable housing cost within the City of Huntington Beach(the "City").
E. The Agency wishes to lend, and Participant wishes to borrow, Program funds to
assist Participant to purchase the Property upon the terms and conditions set forth herein.
NOW,THEREFORE, for good and valuable consideration the parties agree as follows:
1. Agency Loan. The Agency shall loan to Participant (the"Agency Loan") the
amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions
set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the
Program. The Agency Loan shall be paid to the seller of the Property(the "Seller")by the
Agency through deposit of the Agency Loan proceeds into escrow with
TIEMM ESCROW, INC., A CALIFORNIA CORPORATION (the "Escrow Agent") (Escrow
No. 9442--e . The Agency shall direct the Escrow Agent to apply the proceeds
of the Agency Loan on behalf of Participant to the purchase price of the Property, and, at
Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees,
and/or document fees. At such time, Participant stall execute and deliver to the Agency a
Loan Agreement
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promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple
interest at five percent (5%)per annum, due in thirty(30)years and payable upon the earlier sale,
refinancing or transfer of the Property, substantially in the form of the "Promissory Note"
attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to
the Agency a second deed of trust encumbering the Property which shall secure the Promissory
Note (the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated
herein.
2. Maintenance of Property. Participant shall maintain the improvements on the
property in a manner consistent with community standards and in a manner which will uphold the
value of the Property, and shall keep the Property free from any accumulation of debris and waste
materials. Participant agrees to comply with any and all covenants and agreements established by
any homeowner's association or other regulatory entity recognized by area property owners and
comply with all applicable federal, state and local laws.
3. Due on Sale Transfer or Refinancing. Participant agrees to notify the
Agency not less than thirty(30) days prior to (i)the sale or transfer of the Property or (ii) any
refinancing of the lien of the Agency Deed of Trust or any lien to which the lien of the Agency
Deed of Trust is subordinate(the "First Mortgage"). The Agency Loan and all interest accrued
thereon shall be due and payable upon(i) such sale or transfer, (ii) the refinancing of the First
Mortgage for a loan amount in excess of the then current loan balance or for an amortization
period longer than the loan secured by the First Mortgage, or(iii)Participant is no longer an
occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any
other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its
sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan.
4. Equity Sharing. In the event that the Agency Loan becomes due and payable
prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency
concurrently with such sale, transfer or refinancing, an amount equal to the "Equity Share
Amount." The Equity Share Amount shall be determined by applying a percentage factor (the
"Applicable Factor")to the difference between the Sales Price and the Purchase Price(defined
below) as follows:
1. Prior to fifth anniversary
of the Agency Deed of Trust: fifty percent(50%)
2. After fifth anniversary but
prior to sixth anniversary: forty-eight percent(48%)
3. After sixth anniversary but
prior to seventh anniversary forty-six percent (46%)
4. After seventh anniversary but
prior to eighth anniversary: forty-four percent (44%)
Loan Agreement
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5. After eighth anniversary but
prior to ninth anniversary: forty two percent (42%)
6. After nintli anniversary but
prior to tenth anniversary: forty percent (40%)
7. After tenth anniversary but
prior to eleventh anniversary: thirty-eight percent (38%)
S. After eleventh anniversary but
prior to twelfth anniversary: thirty-six percent (36%)
9. Auer twelfth anniversary but
prior to thirteenth anniversary: thirty-four percent (34%)
10. After thirteenth anniversary but
prior to fourteenth anniversary: thirty-two percent (32%)
11. After fourteenth anniversary but
prior to fifteenth anniversary: thirty percent (30%)
12. After fifteenth anniversary but
prior to sixteenth anniversary: twenty-eight percent (28%)
13. After sixteenth anniversary but
prior to seventeenth anniversary: twenty-six percent (26%)
14. After seventeenth anniversary but
prior to eighteenth anniversary: twenty-four percent(24%)
15. After eighteenth anniversary but
prior to nineteenth anniversary: twenty-two percent (22%)
16. After nineteenth anniversary but
prior to twentieth anniversary: twenty percent (20%)
17. After twentieth anniversary but
prior to twenty-first anniversary: eighteen percent(1811/6)
18. After twenty-first anniversary but
prior to twenty-second anniversary: sixteen percent(16%)
19. After twenty-second anniversary but
prior to twenty-third anniversary: fourteen percent (14%)
Loan Agreement
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20. After twenty-third anniversary but
prior to twenty-fourth anniversary: twelve percent (12%)
21. After twenty-fourth anniversary but
prior to twenty-fifth anniversary: ten percent (10%)
22. After twenty-fifth anniversary but
prior to twenty-sixth anniversary: eight percent (8%)
23. After twenty-sixth anniversary but
prior to twenty-seventh anniversary: six percent (6%)
24. After twenty-seventh anniversary but
prior to twenty-eighth anniversary: four percent (4%)
25. After twenty-eighth anniversary but
prior to twenty-ninth anniversary: two percent (2%)
26. After twenty-ninth anniversary but
prior to thirtieth anniversary: one percent (1%)
27. After thirtieth anniversary: zero percent (0%)
The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in
the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or
any other closing or transaction costs.
The actual cost to Participant of all capital improvements to the Property made while
Participant owned the Property may be added to the Purchase Price if Participant complies with
the following:
No capital improvements which cost more than two thousand five hundred dollars
($2,500) shall be added to the Purchase Price unless within sixty(60) days following completion .
of such capital improvements to the Property Participant shall send the following to the Agency:
(i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii)
evidence of the cost of the improvements. The costs incurred by the Participant for capital
improvements which cost less than two thousand five hundred dollars($2,500) shall be added to
the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a
form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan.
The "Sales Price" is the price paid by the Buyer of the Property to Participant for
Participant's interest in the Property, exclusive of escrow fees, title insurance costs,broker's
commissions, loan fees or any other closing or transaction costs.
Loan Agreement
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1 CI%
A. Ecjuity Share Upon Sale or Transfer. The Equity Share Amount shall be
payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer")
whose income exceeds 120% of the current annual median income for the Orange County area. If
the Buyer does not submit an income verification statement to the Agency, the Buyer shall be
deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the
Equity Share Amount shall not become payable.
B. Equity Share Upon Refinancing or Failure to Occupy. The Equity
Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property
or material breach of any other provision of this Agreement which causes the Agency Loan to
become due and payable. The Sales Price for purposes of determining the Equity Share Amount
shall be determined by an appraisal of the Property. The Agency shall appoint a certified,
independent,'appraiser to conduct an a raisal of the Property, at Participant's expense, and
Participant agedes t at in such event the Equity Share Amount shall be the Applicable Factor
multiplied by the difference between the Purchase Price and the appraised value of the Property as
of the time of such refinancing. This Agreement shall be terminated upon the Participant's
repayment of the Agency Loan and payment of the Equity Share Amount as provided in this
Agreement.
C. Expiration of Equity Share Obli ati n. In the event the Participant
does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or
is not in material breach of any other provision of this Agreement before the Thirtieth anniversary
of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share
Amount to Agency upon any later sale, transfer or refinancing.
5. Occupancy Standards.The Property shall be used as the personal residence of
Participant and Participant's immediate family and for no other purpose. Participant shall not
enter into an agreement for the rental or lease of the Property.
b. Income Information. Participant has submitted an eligibility verification form to
the Agency prior to execution of this Agreement. Participant represents and warrants to the
Agency that all information Participant has provided and will provide in the future is and will be
true, correct and complete. Participant acknowledges that the Agency is relying upon
Participant's representations that Participant's income does not exceed 120% of the area median
income and would not have entered this Agreement if Participant's income exceeded 120% of the
area median income.
7. Loan Servicinp— The Agency may contract with a private lender to originate
and service the Agency Loan.
8. Participant Financing. Participant shall obtain financing for the purchase of the
Property from the Southern California Home Finan-.ing Authority or a reputable institutional
lender approved by the Agency (the "Lender"). The lien secured by the Agency Deed of Trust
Loan Agreement
Page 5 of 8
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MGM
shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns.
In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in
cash from Participant's own resources and not from the proceeds of a loan.
9. Covenants. Participant and the Agency shall execute and have recorded in the
Official Records of Orange County, California, a "Declaration of Conditions, Covenants and
Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated
herein, in which Participant agrees that the Property shall only be owned by Participant or other
persons or families of low or moderate income available at an affordable housing cost, as those
terms are defined in California Health& Safety Code Sections 50093 and 50052.5, and that
Participant shall not discriminate against any person or group of persons on the basis of race,
color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the
land, in favor of the Agency and the City.
10. Non-Waiver. Failure to exercise any right the Agency may have or be entitled to,
in the event of default hereunder, shall not constitute a waiver of such right or any other right in
the event of a subsequent default.
11. Indemnification. The Participant shall defend, indemnify and hold harmless
the Agency and the City of Huntington Beach and their respective officers, agents, employees,
representatives and volunteers from and against any loss, liability, claim or judgment relating in
any manner to the Property or this Agreement. The Participant shall remain fully obligated for the
payment of property taxes and assessments related to the Property. There shall be no reduction in
taxes for Participant, nor any transfer of responsibility to the Agency or the City to make such
payments, by virtue of the Agency Loan.
12. Defaults. Failure or delay by either party to perform any term or provision of
this Agreement which is not cured within thirty(30)days after receipt of notice from the other
party constitutes a default under this Agreement;provided, however, if such default is of the
nature requiring more than thirty(30) days to cure, the defaulting party shall avoid default
hereunder by commencing to cure within such thirty(30) day period and thereafter diligently
pursuing such cure to completion. The party who so fails or delays must immediately commence
to cure, correct, or remedy such failure or delay,and shall complete such cure, correction or
remedy with diligence. '
The injured party shall give written notice of default to the party in default,
specifying the default complained of by the injured party. Except as required go protect against
further damages, the injured party may not institute proceedings against the party in default until
thirty(30) days after giving such notice. Failure or delay in giving such notice shall not constitute
a waiver of any default, nor shall it change the time of default.
13. Documents. Participant is aware that the Agency has prepared certain
documents to implement the Program and secure repayment of the Agency Loan. Participant has
reviewed and agrees to execute the following documents prior to receiving the Agency Loan:
Loan Agreement
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(a). Disclosure Statement;
(b) Promissory Note;
(c) Agency Deed of Trust; and
(d) Declaration of Conditions, Covenants and Restrictions of Property.
Participant agrees and acknowledges that the Agency Deed of Trust and the
Declaration of Conditions, Covenants and Restrictions of Property shall be recorded with the
County Recorder of the County of Orange and shall appear of record with respect to and as
encumbrances to the Property.
14. Further Assurances. The Participant shall execute any further documents
consistent with the terms of this Agreement, including documents in recordable form, as the
Agency shaIl'from time to time find necessary or appropriate to effectuate its purposes in entering
into this Agreement and making the Agency Loan.
15. Governiniz Law. This Agreement shall be governed by the laws of the State
of California. Any legal action brought under this Agreement must be instituted in the Superior
Court of the County of Orange, State of California, in an appropriate municipal court in that
county, or in the Federal District Court in the Central District of California.
16. Amendment of A reement. No modification, rescission, waiver, release or
amendment of any provision of this Agreement shall be made except by a written agreement
executed by the Participant and Agency.
17. Agency May Assign. Agency may, at its option, assign its right to receive
repayment of the loan proceeds without obtaining the consent of the Participant.
18. Participant Assignment Prohibited. In no event shall Participant assign or
transfer any portion of this Agreement without the prior express written consent of the Agency,
which consent may be given or withheld in the Agency's sole discretion. No assumption of tire
Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to
assign all or any portion of its rights to the loan proceeds hereunder.
19. Entire Agreement. This Agreement constitutes the entire understanding and
agreement of the parties. This Agreement integrates all of the terms and conditions mentioned
herein or incidental thereto, and supersedes all prior negotiations, discussions and previous
Loan Agreement
Page 7 of 8
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agreements between the Agency and the Participant concerning all or any part of the subject
matter of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year written below.
"PARTICIPANT"
.r
Date: AUGUST 13, 1996 . 19 By: I. &tZL110. YoCG,. <<—
Printed Name:
Date: - , 19 By:
Printed Name:
Date: , 19 By:
Printed Name:
THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH,
a public body corporate and politic
Date: 19—%L— By:
Chairman
ATTEST: APPROVED AS TO FORM:
e ,;._—cam• -�4: �.~�
Agency Clerk -71�cl,,J•Agency Counsel
REVIEWED AND APPROVED: ,INITIATED AND APPROVED:
Aw
�'.
Executi a irector Director ofEconomic evelopment
Loan Agreement
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EXHIBIT A
LEGAL DESCRIPTIO;'' OF PROPERTY
PAT.CEL 1:
Rn undivided one twenty second (1/22) fee simple interest as a tenant in common in and to 3
all of the common Area defined in Declaration referred to below and described in the
Condominium Plan ("plan") for Lot 1 of Tract tic. 14828, which Plan was recorded on August
25, 1994 as Instrument No. 94-0525335 of official Records of orange county, over Lot 1 of
Tract No. 14828, in the City of Etuntington Beach, county of orange, State of California,
as per map filed in Book 706, Pages 27 to 29 of Miscellaneous naps, in the office of the
county Recorder of said county.
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other Hydrocarbon ,
substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds,
and in various other deeds of record.
PARCEL 2:
unit tio. 22 consisting of certain airspace and surface elements, as shcwn and described in i
the condominium Plan referred to in Parcel 1 above.
Parcel 3:
non-exclusive easements for access, ingress, egress, use, enjoyment, drainage,
encroachment, support, maintenance, repairs and for other purposes, all as described in
that certain Declaration of covenants, conditions and Restrictions and Reservation of
Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No. 94-0525336
of Official Records.
Parcel 4:
Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio
purposes, over the areas:defined, depicted and assigned on the Plan.
Exhibit A to Loan Agreement
Pagel of I
4lslAgree:T�Sugolis:iixl,i6il,��ATf2GP3G
EXHIBIT B
PROMISSORY NOTE
S 35.000.00 Huntington Beach, California
A=ST 5T8 i9 95
FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The
Redevelopment Agency of the City of Huntington Beach("Holder") at 2000 Main Street, P.O.
Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct
from time to time in writing, Thirty.-five Thousand Dollars(S35,000.00) (the "Note Amount")
together with interest thereon at the rate set forth herein. All sums hereunder shall be payable in
lawful money of the United States of America and all sums shall be credited first to interest then
due and the balance to principal.
1. Interest Rate
Simple interest shall accrue on the Note Amount at a rate of five percent(5.00%) per
annum. If the fair market value of the Property does not increase at least five percent (5.00%) per
annum, the accrued interest on the Note Amount shall be forgiven by the Holder.
2. Maturity Date
The balance of all unpaid principal and accrued interest shall be due and payable on
AUGUST STH , 20 26 (thirtieth(30th) anniversary date of this Promissory Note).
3. Acceleration
The whole of the Note Amount plus accrued interest and all other payments due
hereunder shall become due and be immediately payable to the Holder by the Maker upon the
occurrence of any one of the following events:
(a) Maker sells or otherwise transfers title to the Property;or
(b) Maker refinances any lien or encumbrance to which the Agency Deed of
Trust is subordinate for a loan amount which is in excess of the then current loan balance
of such prior lien or extends the amortization period of the loan secured by such prior lien;
or
(c) Maker fails to occupy the Property or to perform any obligation under the
Agreement (as hereinafter defined).
"Exhibit B" to Loan Agreement
Pagel of 3
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s
4. Security for Note
This Promissory Note shall be secured by a second deed of trust encumbering the Property
(the "Agency Deed of Trust"), executed by Maher as Trustor in favor of Holder as Trustee.
5. Prepayment of Note Amount
Maker may prepay to Holder the full Note Amount, together with simple interest thereon
at a rate of five percent (5.00%) per annum, at any time prior to the due date of the Note
Amount.
&. Loan Agreement
This Promissory Note is made and delivered pursuant to and in implementation of Loan
Agreement entered by and between the Holder and the Maker dated AUGUST 5, ,
19 (the "Agreement"), a copy of which is on file as a public record with the Holder and is
incorporated herein by reference. The Maker acknovdedges that but for the execution of this
Promissory Note, the Holder would not enter into the Agreement or make the loan contemplated
therein. Unless definitions of terms have been expressly set out at length herein, each term shall
have the same definition as set forth in the Agreement.
7. Holder May AY Ssfgn
Holder may, at its option, assign its right to receive payment under this Promissory Note
without necessity of obtaining the consent of the Maker.
S. Maker Assignment Prohibited
In no event shall Maker assign or transfer any portion of this Agreement without the prior
express written consent of the Holder, which consent may be given or withheld in the Holder's
sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This
Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan
proceeds hereunder.
9. Attorneys'-Fees and Cost5
In the event that any action is instituted to enforce payment under this Promissory Note,
the Maker promises to pay such sums as a court may fix for court costs and reasonable attorneys'
fees.
10. Non-Waiver
Failure or delay in giving any notice required hereunder shall not constitute a waiver of
any default or late payment, nor shall it change the time for any default or payment.
"Exhibit B" to Loar.Agreement
Page 2 of 3
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IL Successors Bound'
This Promissory Note shall be binding upon the parties hereto and their respective heirs,
successors and assigns.
BY: �[Lt��l t aSC ? Lc:c L �•r .
Printed Name: BARS Jo WALLAI
By:
Printed Name:
By:
Printed Name:
"Exhibit B" to Loan Agreement
Page 3 of 3
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RLS 96-523
712611E
RECORDING REQUESTED BY )
AND WHEN RECORDED RETURN TO: )
Redevelopment Agency of the City of }
Huntington Beach )
2000 Main Street )
Huntington Beach, California 92648 )
Attn: Agency Clerk )
(Space Above This Line For Recor:ers Use.)
This document is exempt from
recording fees pursuant to
Government Codc Section 6103.
DEED OF TRUST WITH ASSIGNMENTS OF RENTS
THIS DEED OF TRUST is made this STEI day of AUG. , 19 96, by and among
BARBARA JO WALLACE, whose address is 18051 Joyful Lane, *205, Huntington Beach,
California (the "Trustor") and THE CITY OF HUNTINGTON BEACH, a municipal corporation
(the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH, a public body corporate and politic(the "BENEFICIARY"), whose address is
2000 Main Street, Huntington Beach, California 92048.
WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to
Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of
Orange, State of California, described legally in the Legal Description attached hereto as Exhibit
"A" and incorporated herein.
TOGETHER WITH: (a) all buildings, improvements and fixtures, now or
hereafter placed thereon, it being understood and agreed that all classes of property attached or
unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits
thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums
of money payable on the purchase price of said property secured by a lien thereon or payable
under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and
authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents,
issues and profits, and all sums of money payable on the purchase price of said property secured
by a lien thereon or payable under any agreement.
"Exhibit C" to Loan Agreement
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A. FOR THE PURPOSE OF SECURING:
l. Payment of the sum of Thirty-five Thousand Dollars($35,000.00)with interest
thereon according to the terms of a Promissory Note of even date herewith, made by Trustor,
payable to the order of the Beneficiary and extensions or renewals thereof,
2. Payment of such additional sums with interest thereon as: (a) may be hereafter
borrowed from the Beneficiary by the then record owner or owners of said property when
evidenced by another Promissory Note or Notes, or(b)as may be added to the indebtedness
secured hereby in accordance with the provision of this Deed of Trust.
3. Performance of each and every obligation, covenant, promise or agreement of
Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated
AUGUST 5 , 19.96 , insofar as the terms and conditions of that agreement may apply to
Trustor.
4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or
of any successor-in-interest of the Trustor to said property) to the Beneficiary, whether created
directly or acquired by assignment, whether absolute or contingent,whether due or not, whether
otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or
arising thereafter.
B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:
l. 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 ail laws affecting such property or requiring any alterations or
improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification
without Beneficiary's written consent; not to commit or permit waste thereon; not to commit,
suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate,
fertilize, fumigate, prune, and do all other acts that from the character or use of said property may
be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or
conditional sale of all fixtures, furnishings and equipment located thereon.
If the loan secured hereby or any part thereof is being obtained or should any
additional loan be made hereafter for the purpose of financing rehabilitation improvements on said
property,Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding;
"Exhibit C" to Loan Agreement
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(a) to complete the same in accordance with City approved plans and specifications satisfactory to
Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation;
(c) to replace any work or materials unsatisfactory to Beneficiary within fifteen(15) calendar days
after written notice from Beneficiary of such fact, which notice may be given to Trustor by
registered or certified mail, sent to his last known address, or by personal service of the same; (d)
that work shall not cease on the rehabilitation of such improvements for any reason whatsoever
for a period of fifteen(15) calendar days, whether consecutive or not, without the written
permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in
connection with the said rehabilitation and not to permit any claims of lien for said work or
material to be filed of record against the property; (0 not to permit any stop notice claims to be
presented to Beneficiary. If said property is part of a larger tract upon which improvements will
be constructed, Trustor shall make separate contracts and subcontracts for said construction
which shall pertain to the said property only and shall Keep separate, full and complete records of
all work and materials furnished to the said property. Trustee upon presentation to it of an
affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this
paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to
act thereon hereunder.
2. To provide, and maintain in force at all times with respect to said property, fire and
other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss
payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and
in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be
delivered to and remain in possession of Beneficiary as further security for the faithful
performance of these trusts. At least thirty(30)days prior to the expiration of any insurance
policy, a policy or policies renewing or extending such expiring insurance shall be delivered to
Beneficiary together with written evidence showing payment of the premium therefor and, in the
event any such insurance policy and evidence of the payment of the premium therefor are not so
delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests
Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice
to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain
such insurance through or from any insurance agency or company acceptable to it, pay the
premium thereof, and may add the amount thereof to the indebtedness secured hereby, which
amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or
company, or any other person, any information contained in or extracted from any insurance
policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured
hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the
collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter.
In case of insurance loss, Beneficiary is hereby authorized either(a) to settle and adjust any claim
under the insurance policies provided for in this document without the consent of the Trustor, or
(b) to allow Trustor to agree with the insurance company or companies on the amount to be paid
upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such
insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings
or improvements under the terms of any lease or leases which are or may be prior to the lien of
this Deed of Trust and such damage or destruction does not result in cancellation or termination
"Exhibit C" to Loan Agreement
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of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection
thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings
or improvements on said premises. In all other cases, such insurance proceeds, at the option of
the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether
due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used
to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements
on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at
least equal value and substantially the same character as prior to the damage or destruction, and
shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or
waive any default or notice of default hereunder or invalidate any act done pursuant to such
notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of,
the property conveyed at any Trustee sale held hereunder.
3. To pay: (a) at least ten (10) days before delinquency, all general and special City
and County taxes, and all assessments on appurtenant water stock, affecting such property, (b)
when done, all special assessments for public improvements, without permitting any improvement
bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with
interest, on said property, or any part thereof, which are or appears to be prior to superior hereto,
(d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act
required of the Lessee or its successor in interest under the terms of the instrument or instruments
creating said leasehold, (e) all costs, fees and expenses of this trust, (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
"Exhibit C" to Loan Agreement
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expended may be added by Beneficiary to the indebtedness secured liereby 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, er sell, convey, further encumber, or alienate
said property, or any party thereof, or any interest therein, or be divested of his title or any
interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have
the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of
the maturity date specified in any Note evidencing the same, immediately due and payable, and no
waiver of this right shall be effective unless in writing.
8. That any award, settlement or damages for injury or damages to such property, or
in construction with the transaction financed by such loan, and any award of damages in
connection with any condemnation for public use of or injury to said property, or any part thereof,
is hereby assigned and shall be paid to Beneficiary,who may apply or release such monies
received by it in such manner and with the same effect as above provided for the disposition of
proceeds of Eire 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
"Exhibit C" to Loan Agreement
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thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to
the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent
to the making of any map or plat thereof, (c)join in granting any easement thereon, (d)join in any
agreement subordinating the lien or charge hereof.
11. That the lien hereof shall remain in full force and effect during any postponement
or extension of time of payment of the indebtedness secured hereby, or any part thereof_
12. That, upon written request of Beneficiary stating that all sums secured hereby have
been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for
cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without
warranty, the property then held hereunder. The recitals in such reconveyance of any matters of
fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be
described as "the person or persons legally entitled thereto." Such request and reconveyance shall
operate as re-assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five
(5)years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of
Trust (unless directed in such request to retain them).
13. That as additional security, Trustor irrevocably assigns to Beneficiary the rents,
issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms
and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to
produce rents from the property affected by this Trust Deed, or cause Beneficiary to be(a)
"mortgages in possession" for any purpose; (b) responsible for performing any of the obligations
of the lessor under any lease; or(c) responsible for any waste committed by lessees or any other
parties, for any dangerous or defective condition of the property affected by this Trust Deed, or
for any negligence in the management, upkeep, or control of such rights to rents, issues and
profits is not contingent upon, and may be exercised without possession of, the property affected
by this Trust Deed.
Beneficiary confers upon Trustor a license("License") to collect and retain the rents,
issues and profits of the property affected by this Trust Deed as they become due and payable,
until the occurrence of a default hereunder. Upon such default, the License shall be automatically
revoked and Beneficiary may collect and retain the rents, issues and profits without notice and
without taking possessions of the property affected by this Trust Deed. This right to collect rents,
issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as
otherwise provided herein; and neither said right, nor termination of the License, shall impose
upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part
of the property affected by this Trust Deed. If Trustor shall default as aforesaid,Trustoes.right to
collect any such money shall cease and Beneficiary shall have the right, with or without taking
possession of the property affected hereby, to collect all rents, issues, royalties and profits and
shall be authorized to, and may,without notice and irrespective of whether declaration of default
has been delivered to Trustee and without regard to declaration of default has been delivered to
Trustee and without regard to the adequacy of the security for the indebtedness secured hereby,
either personally or by attorney or agent without bringing any action or proceeding, or by receiver
"Exhibit C" to Loan Agreement
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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 col:ection 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 ary 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 leaschold interest, or the Lease, or agree to do so,
without the written consent of the Beneficiary; (c)Trustor will promptly advise Beneficiary
regarding any notice, request or demand received by him from the lessor under the Lease and
promptly furnish Beneficiary with a copy of any such notice, request or demand;(d) as long as
any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise
consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always
be kept separate and distinct, notwithstanding the union of said estates in any party; (e)Trustor
agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants,
agreements, terms, conditions and provisions under any lease affecting the premises and to neither
do anything, nor to permit anything to be done which may cause modification or termination of
any such lease or of the obligations of any lessee or person claiming through such lease or the
rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder.
Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become
superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation
of any of the covenants set forth in this paragraph,Beneficiary shall have the right, at its option,
to declare all sums secured hereby immediately Cue and payable. Consent to or waiver of one of
said violations shall not be deemed to be a consent to or waiver or any other violation. If the
security for this Deed of Trust is a leasehold estate, the term"property" as used in this Deed of
"Exhibit C" to Loan Agreement
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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 arty indebtedness secured hereby or in
performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon
default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be
prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and
payable by delivery to Trustee of written declaration of default and demand for sale of written
notice of default and of election to cause to be sold said property, which notice Trustee shall
cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and
any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such
time as then may be required by law following recordation of such notice of default, and notice of
sale having been given as then required by law, Trustee, without demand on Trustor, shall sell
said property at the time and place fixed by it in such notice of sale, whether as a whole or in
separate parcels, and in such order as it may determine, at public auction to the highest bidder for
case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of
all or any portion of said property by public announcement at such time and place of sale, and
from time to time thereafter may postpone such sale by public announcement at the time fixed by
the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the
property so sold, but without any covenant or warranty, express or implied. The recital in such
Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including
Trustor,Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may
also sell at any such sale and as part thereof any shares of corporate stock securing the obligations
secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option
may also foreclose on such shares by independent pledge sale, and Trustor waives demand and
notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust,
including cost of evidence of title in connection with this sale,Trustee shall apply the proceeds of
sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued
interest at the rate then payable under the Note or Notes secured hereby, and then of all other
sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person
or persons legally entitled thereto.
16. To waive, to the fullest extent permissible by law, the right to plead any statute of
limitations as a defense to any demand secured lzereby. ,
17. That Beneficiary may, from time to time, by instrument in writing, substitute a
successor or successors to any Trustee named herein or acting hereunder, which instrument,
executed and acknowledged by Beneficiary and recorded in the office of the recorder of the
county or counties where such property is situated, shall be conclusive proof of property
substitution of such successor Trustee or Trustees, who shall, without conveyances from the
Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not
limited to the power to reconvey the whole or any part of the property covered by this Deed of
Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary
hereunder, the book and page where this Deed of Trust is recorded. if notice of default shall have
"Exhibit C" to Loan Agreement
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been recorded, this power of substitution cannot be exercised until after the costs, fees and
expenses of the then acting Trustee shall have been raid to such Trustee, who shall endorse
receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee
shall not be exclusive of other provisions for substitution provided by law.
18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties
hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term
"Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby,
whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so
requires, the masculine gender includes the feminine and/or neuter, and the singular number
includes the plural.
19. That in the event the property secured by this Deed of Trust is income producing
property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on
January 1, a written operational report. Such operational report shall contain a brief but complete
statement of the year's income and expenses of such property, a list of all vacancies, and a
statement of any material change in the property or business carried on therein for such period.
20. That in the event of a demand for, and the preparation and delivery of a written
statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and
2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable charge,
not exceeding the maximum amount which is permitted by law at the time the statement is
furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered
to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust,
including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured
hereby in connection with the transfer of said property, or releasing an existing policy of fire
insurance or other casualty insurance held by Beneficiary and replacing the same with another
such policy.
21. That Trustee accepts this Trust when this Deed of Trust, duly executed and
acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any
party hereto of pending sale under any other Deed of Trust or of any action or proceeding in
which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.
22. That should this Deed of Trust or any Note secured hereby provide any fee for
prepayment of any indebtedness secured hereby,Trustor agrees to pay said fee, if any, of said
indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust
even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any
agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured
hereby immediately due and payable.
23. That Trustor has made certain representations and disclosures in order to induce
Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of
Trust secures, and in the event that Trustor has made any material misrepresentation or failed to
"Exhibit C" to Loan Agreement
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disclose any material fact, Beneficiary at its option and without notice, shall have the right to
declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note
or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written
declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon
presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by
Trustor under this paragraph, is authorized to accept as true and conclusive all facts and
statements therein, and to act thereon hereunder.
Any notice which any party hereto may desire or be required to give to the other party
shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his
address hereinabove set forth or to the Beneficiary at his office or at such other place as such
parties hereto may designate in writing.
THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of
default and of any notice of sale hereunder be mailed to him at his address herein before set forth.
TRUSTOR:
By-;- FJ
BARBARA JO WALLACE
By:
By:
APPROVED AS TO FORM:
r
Agency Counsel
"Exhibit C" to Loan Agreement
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RIDER TO DEED OF TRUST
FIRST TIME NfOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM
This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement
dated_ AUGUST 5TH _ , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has
agreed to loan Trustor the sum of Thirty-five Thousand Dollars($35,000.00) (the "Loan
Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the
meanings as defined in the Loan Agreement.
In the event that the Agency Loan becomes due and payable prior to the thirtieth
anniversary of the date of this Agreement, Trustor shall pay to Beneficiary concurrent with such
sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share
Amount shall be determined by applying a percentage factor(the "Applicable Factor") to the
difference between the Sales Price and the Purchase Price (defined below) as follows:
1. Prior to fifth anniversary
of the Agency Deed of Trust: fifty percent (50%)
2. After fifth anniversary but)
prior to sixth anniversary: forty-eight percent (48%)
3. After sixth anniversary but
prior to seventh anniversary forty-six percent (46%)
4. After seventh anniversary but
prior to eighth anniversary: forty-four percent(44%)
5. After eighth anniversary but
prior to ninth anniversary: forty two percent (42%)
6. After ninth anniversary but
prior to tenth anniversary: forty percent (40%)
7. After tenth anniversary but
prior to eleventh anniversary: thirty-eight percent (39%)
8. After eleventh anniversary but
prior to twelfth anniversary: thirty-six percent(36%)
9. After twelfth anniversary but
prior to thirteenth anniversary: thirty-four percent(34%)
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10. After thirteenth anniversary but
prior to fourteenth anniversary: thirty-two percent (32%)
11. After fourteenth anniversary but
prior to fifteenth anniversary: thirty percent (30%)
12. After fifteenth anniversary but
prior to sixteenth anniversary: twenty-eight percent (28%)
13. After sixteenth anniversary but
prior to seventeenth anniversary: twenty-six percent (26%)
14. After seventeenth anniversary but
- prior to eighteenth anniversary: twenty-four percent (24%)
15. After eighteenth anniversary but
prior to nineteenth anniversary: twenty-two percent (22%)
16. Afler nineteenth anniversary but
prior to twentieth anniversary: twenty percent (20%)
17. After twentieth anniversary but
prior to twenty-first anniversary: eighteen percent (18%)
18. After twenty-first anniversary but
prior to twenty-second anniversary: sixteen percent(16%)
19. After twenty-second anniversary but
prior to twenty-third anniversary: fourteen percent (14%)
20. After twenty-third anniversary but
prior to twenty-fourth anniversary: twelve percent(12%)
21. After twenty-fourth anniversary but
prior to twenty-fifth anniversary: ten percent(10%)
22. After twenty-fifth anniversary but
prior to twenty-sixth anniversary: eight percent (80/)
23. After twenty-sixth anniversary but
prior to twenty-seventh anniversary: six percent (6%)
24. After twenty-seventh anniversary but
prior to twenty-eighth anniversary: four percent(4%)
"Exhibit C" to Loan Agreement
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25. After twenty-eighth anniversary but
prior to twenty-ninth anniversary: two percent (2%)
26. After twenty-ninth anniversary but
prior to thirtieth anniversary: one percent 0%)
27. After thirtieth anniversary: zero percent (0%)
The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in
the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or
any other closing or transaction costs.
The actual cost to Participant of all capital improvements to the Property made while
Participant owned the Property may be added to the Purchase Price if Participant complies with
the following:
No capital improvements which cost more than two thousand five hundred dollars
($2,500) shall be added to the Purchase Price unless within sixty(60) days following completion
of such capital improvements to the Property Participant shall send the following to the Agency:
(i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii)
evidence of the cost of the improvements. The costs incurred by the Participant for capital
improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to
the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a
form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan.
The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's
interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan
fees or any other closing or transaction costs.
The percentage factor so determined is the "Applicable Factor," If the Property is sold, an
amount equal to the Applicable Factor multiplied by the difference between (i) the original
Property purchase price and (ii) the amount received by Trustor as the Property sale price (as
reduced by costs of We paid by the Trustor)shall constitute the Equity Share Amount. If the
Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is
subordinate is refinanced for a loan amount which is in excess of the then current loan balance or
extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a
certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in
such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference
between (i) the original Property purchase price and (ii) the appraised value of the
"Exhibit C" to Loan Agreement
Page 13 of 15
41,eZA-96agrec:Walla cc:Exhibi'1C
RLS 96-523
W26J96
Property as of the time of such transfer or refinancing.
Dated: AUGUST 13, 1996 TRUSTOR
Bw Am j6 WALLACE
APPROVED AS TO FORM:
Agency Attorney 7_ Z!j_
"Exhibit C" to Loan Agreement
Page 14 of 15
414XG:4-96xgrcc•Wallacc:I:xhibitC
RI.S 96.323
7126MG
RIDER TO DEED OF TRUST
S PERi RITY OF FIRST LENDER DQCU44ENTS
(if required'by the First Lender)
This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement
dated AUGUST 5 , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has
agreed to loan Trustor the sum of Thirty-five Thousand dollars ($35,000.00) (the "Loan
Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the
meanings as defined in the Loan Agreement.
Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the
rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender
as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter
recorded against the property described herein.
Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions
of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of
one of the following events:
1) Title is acquired by the First Lender or another party upon foreclosure of a deed of
trust by the First Lender.
2) Title is acquired by the First Lender or another party by a deed in lieu of '
foreclosure of the First Lender deed of trust.
Dated: AUGUST 13, 1996 TRUSTOR:
APPROVED AS TO FORM: UMUMA JOALtAce
Agency Attorney 719 S.L�
lkP
"Exhibit C" to Loan Agreement
Page 15 of Is
4'su;:4.96asrcc:w&114cc:rxhibicc
RLS 96.523
7126M6
. { , p
! � f
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
S,rA1'E OF CALYFMiA SS.
COUNTY OF ORMGE _ '
Oil AUGUST 13. 1996 before me, the undersigned, personally smeared
BARB= JO WALLACE
personally known to tine (or proved to the on (lie basis of satisfactory evidence) to be the person(s)
whose name(s) Islare subscribed ;o the within instrument and acknowledged to me that 1lelshellhey
executed the same in histhert ieir quilimized capacily(ies), and that by ltisliteFAlleir sigllcature(s) on
the instrument the person(s) or the entity upon behalf of which l the ()ersan(s) acted, exei:uled the
Instrument.
WITNESS my hand mid official seal. (I his area for official notarial seal)
r �f`• P~•- LINDA J.CtiBF_LL Z
t
Si natter Ll� .� CONIM,# 1045344
_. LL] k y. tJOTARY PU$L1C-CALlFaR.'dA X
ORANGE COUr1TY �
LINDA J. CAMP131mr. - n: MY Comm.Ex,•ae1 DEC.20.1W8
ri[ttfi[riirrt[i[r1r1f1t1rttfrrlliiim 017-1'10N L rtllti[ririiii[rllit1111 t0I'[I MillI
Though the data below are not required by law, they may prove valuable to persons relying oil the
document and could prevent the fraudulent reattachmertl of this forth.
Capacity C1a11>Ited By Sluiler Deseriptio» of Attached Doeurircrit
Windividual
t7 Corporate Officer
Ai 1--o or r
f 11lcs(s) '1 Illo os lype of Doclrrncrrt
(, Partner(s) 1J Limited
0,General
U Attorney-In-Fact
0 Truslee(s) Number of Pages
13 Guardian/Conservator
0 Oliver:
Date of Document
Signer is Representing:
Name of Person(s)or Entlty(les)
Slyrser(s)Other loan Named Above^
e
EXIIIQIT A
TO
AGENCY DEED OF TRUST
LEGAL DESCRIPTION
PARCEL It
An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to
all of the Common Area defined in Declaration referred to below and described in the
Condoninium plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August
25, 1994 as Instrument too. 94-0525335 of official Records of orange county, over Lot i of
Tract No. 14828, in the city of Isuntington Beach, County of orange, state of California,
as per map filed in Book 706, Pages 27 to 29 of Miscellaneous baps, in the office of the
County Recorder of said county.
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon
substances, as reserved indeed recorded August 16, 1921 in Book 401, Page 356 of Deeds,
and in various other deeds of record.
PARCEL 2: ,
Unit No. 22 consisting of certain airspace and surface elements, as shown and described in i
the condominium Plan referred to in Parcel 1 above.
Parcel 3:
non-exclusive easements for access, ingress, egress, use, enjoyment, drainage,
encroachment, support, maintenance, repairs and for other purposes, all as described in
that certain Declaration of covenants, conditions and Restrictions and Reservation of
Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336
of official Records.
Parcel 4:
Exclusive easements appurtenant to parcels i and 2 referred to above, for balcony or patio
purposes, over the areas defined, depicted and assigned on the Plan,
s
"Exhibit A" to Agency Deed of Trust
Page 1 of 1
4h1G:Agrce:hl argotis:ExhCflced`O7f25."4G
Ill S 96.12?
EXHIBIT D
DECLARATION OF CONDITIONS. COVENANTS
AND RESTRICTIONS FOR PROPERTY
RECORDING REQUESTED BY }
AND WHEN RECORDED MAIL TO: )
)
(Space above for Recorder's use.)
THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR
PROPERTY(the "Declaration") is made by and between BARBARA JO WALLACE (the
"Covenantor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH, a public body corporate and politic(the"Agency" or"Covenantee")as of the date set
forth below,
RECITALS
A. Covenantor and the Agency have entered into a certain Loan Agreement dated
AUGUST 5 19 96 , (the "Agreement," a copy of which is on file with the Agency
at its offices and is a public record) pursuant to which the Covenantor has agreed to subject
certain real property(referred to in the Agreement and referred to herein as the "Property")
described in the "Legal Description of the Property" (which is attached hereto as Exhibit "A" and
incorporated herein by this reference) to certain covenants, conditions and restrictions.
B. The Community Redevelopment Law(California Health and Safety Code
§ 33000 et seq.) provides that a redevelopment agency shall establish covenants running with the
land in furtherance of redevelopment plans.
NOW, THEREFORE, the parties hereto agree and covenant as follows:
"Exhibit D" to Loan Agreement
Page 1 of 9
41s1G:4-96Agree:wallace:ExhibilD
RLS 96-523 7129M
l. Affordability Covenants. Covenantor agrees for itself, and its successors and
assigns, and every successor to Covenantor's interest in the Property, or any part thereof that for
thirty(30) years from the date of recording of the Deed of Trust in favor of the Agency regarding
the Property(the "Expiration Date"):
(a) The Property shall only be owned and occupied by Convenantor or by
other persons or families of"Moderate Income." "Moderate Income" shall mean persons or
families earning One Hundred Twenty Percent (120%) or less of Orange County median income,
adjusted for appropriate family size.
(b) The Property shall be kept available at Affordable Housing Cost (as defined
below) to the Covenantor or other persons or families of moderate income. Affordable Housing
Cost shall mean, as to each person or family of low or moderate income, that purchase price
which would result in monthly housing payments which do not exceed an amount under any
currently prevailing conventional home mortgage lending rates applied by any reputable
institutional home mortgage lender, or the lending rates of any government-subsidized or special
mortgage program for which such person or family qualifies and has obtained a first trust deed
loan, which do not exceed thirty-five percent (35%) of One Hundred Ten Percent(110%) of the
Orange County monthly median income for those persons and families of moderate income (as
determined by the United States Department of Housing and Urban Development) earning
between Eighty Percent (80%) and One Hundred Ten Percent (I MIA) of the Orange County
monthly median income, and Thirty-Five Percent(35%) of the monthly median income of any
person or family of moderate income which earns more than One Hundred Ten Percent (110%)
and not more than One Hundred Twenty Percent(120%) of the Orange County median income.
(c) The covenant contained in this Section 1 shall run with the land and shall
automatically terminate and be of no further force or effect upon the Expiration Date.
2. Transfer of Property. No transfer of the Property shall occur until the Agency
determines (a) that the proposed purchaser intends to occupy the Property as the proposed
purchaser's principal residence, (b) that the proposed purchaser is a person or family of moderate
income and (c) that the proposed transfer occurs at an Affordable Housing Cost. The Agency
shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted
to the Agency such information and completed such farms as the Agency shall request to certify
the proposed purchaser's intent with respect to its residency ofthe Property and its gross income,
and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the
proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall
submit to the Agency an executed disclosure statement which certifies that the purchaser is aware
that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate
income person or family, that the maximum permitted sales price may be less than fair market
value and that the unit must be owner-occupied at all times and cannot be rented or leased.
Covenantor shall cooperate with the Agency in providing such forms to proposed purchasers and
in assisting proposed purchasers to prepare such forms and to provide any required information to
the Agency in connection with the Covenantoes original sale of the Affordable Unit, provided that
"Exhibit D" to Loan Agreement
Page 2 of 9
4kw:4 96Agrce:Wallace-ExhibitU
R S 96•373 7129f96
the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith,
other than employee time dedicated to providing such assistance.
THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF
COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE
HOUSING COST CAN BE MADE ONLY AT THE TLV E OF THE PROPOSED TRANSFER,
TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED
TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND
OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE
TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR
MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN
THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT
ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR,
HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL
TIMES IN SETTING THE TRANSFER PRICE THE-PRIMARY OBJECTIVE OF THE
AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE
PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST.
je
• Covenantor Initials
The covenant contained in this Section 2 shall run with the land and shall
automatically terminate and be of no further force or effect upon the Expiration Date.
3. Ngn-Discrimi nation Covenants. Covenantor covenants by and for itself, its
successors and assigns, and all persons claiming under or through them that there shall be no
discrimination against or segregation of any person or group of persons'on account of race, color,
religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person
claiming under or through it, establish or permit any such practice or practices of discrimination
or segregation with reference to the selection, location, number, use or occupancy of tenants,
lessees, subtenants, sublessees, or vendees in the Property.
Covenantor and its successors and assigns, shall refrain from restricting the rental
or lease (if permitted by Covenantor) or sale of the property on the basis of race, color, religion,
sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts
shall contain or be subject to substantially the following nondiscrimination or non segregation
clauses:
(a) In deeds: "The grantee herein covenants by and for himself or herself, his
or her heirs, executors, administrators and assigns, and all persons claiming under or through
them, that there shall be no discrimination against or segregation of, any person or group of
persons on account of race, color, religion, sex, marital status, national origin or ancestry in the
sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed,
"Exhibit D" to Loan Agreement
Page 3 of 9
4'410:4-96Agme:Wafface:RxitibitD
RLS 96-523 7/29l96
t 1 �
nor shall the grantee himself or herself or any person claiming under or through him or her,
establish or permit any such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or
vendees in the land herein conveyed. The foregoing convenants shall run with the land."
(b) In leases: "The lessee herein covenants by and for himself or herself,
his or her heirs, executors, administrators and assigns, and all persons claiming under or through
him or her, and this lease is made and accepted upon and subject to the following conditions:
"There shall be no discrimination against or segregation of any person or
group of persons on account of race, color, religion, sex, marital status, ancestry or national
origin in the leasing, subleasing, transferring, use, occupancy, tenure or enjoyment of the premises
herein leased nor shall the lessee himself or herself, or any person claiming under or through him
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees,
subtenants or vendees in the premises herein leased."
(c) In contracts: "There shall be no discrimination against or segregation of,
any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or
national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the
premises, nor shall the transferee himself or herself or any person claiming under or through hint
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number,use or occupancy of tenants, lessees, subtenants,
sublessee or vendees of the premises."
Nothing in this Section 3 shall be construed to authorize the rental or lease
of the Property if such rental or lease is not otherwise permitted. The convenants in this
paragraph 3 shall run with the land in perpetuity.
4. Covenants Do hlot Impair Lien. No violation or breach of the covenants,
conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or
render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security
interest.
5. Covenants For Benefit of City and A enc . All covenants without regard to
technical classification or designation shall be binding for the benefit of the Covenantee and the
City of Huntington Beach(the "City") and such covenants shall run in favor of the Covenantee
and the City for the entire period during which such covenants shall be in force and effect, without
regard to whether the Covenantee or the City is or remains an owner of any land or interest
therein to which such covenants relate. The Covenantee and the City, in the event of any breach
of any such covenants, shall have the right to exercise all the rights and remedies and to maintain
any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such
"Exhibit D" to Loan Agreement
Page 4 of 9
4�a�G:4-9fiAgrct:W allace:L•�iUitl3
R S 96-523 7l29196
rrI , A.y r . •:
breach to which it or any other beneficiaries of these covenants may be entitled during the term
specified for such covenants, except the covenants against discrimination which may be enforced
at law or in equity at any time in perpetuity.
IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument
to be ex�c�vd on their behalf I9 ir y their respective officers hereunto duly authorized, this 13 day
of A
I,-COVENANTOR
VENANTOR /
IVG1l
BAR MM JO WALLACE
APPROVED AS TO FORM:
Agency Counsel�s,E.4,�4��
"Exhibit D" to Loan Agreement
Page S of 9
4\AG:4-96Agrec:W allacc:ExhibitD
R[S 96-523 7/2966
� 1+ � • •r Lam'
STATE OF CALIFORNIA )
ss
COUNTY OF ORANGE }
On AUGUST 13, 1996 before me, Ll= J. CAMPBE.L
(name,title;e.g.,"Sane Doe,Notary Public"),
personally appeared BARBAM JO MLACE
{name(s)of signer(s)),
personally knov n to be--OR--
XX proved to me on the basis of satisfactory evidence
to be the person(s)whose namc(s)is/are subscribed to the within instrument and acluiowlcdged to rlic that
helshe/they executed the same in hislherlthcir authorized eapacity(ics),and that by liMicrhhcir signature(s)
on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the
instrument.
W'tnlss.mv hand and official seat.
'"w '•• LINDU CAMPBELL z •
45344
ry a`�2 -CALIFORNIANOARRY PUBLIC
{�
ORANGECourmr (Signat c of Notary)
INComm.Exave3DEC.20,19Je LIMA J. CAMPBQ,L
CAPACITY CLAIMED BY-SIGNER:
XX Individual
Corporate Officer(s):
Tille(s)
Partncr(s): Limited Gcncral
Attorney-in-Fact
Trustees)
Guardian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Persons)or Entity(ies)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACI-IINIENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE Title or Type of Document DECLARATION OF CONDITIONS, COVENS
MUST BE ATTACHED AND RES'PRICTIONS FC7R PROPIPaX
TO THE DOCUMENT Number of Pages
DESCRIBED Date of Document AUGUST S, 1996
AT RIGHT: Signer(s)Other Than Named Above:
"Exhibit D" to Loan Agreement
Page 6 of 9
41s1G:4.96A&ree:Watlacc:EYJ%ibi1D
RtS 96-323 7R9196
STATE OF CALIFORNIA )
ss
COUNTY OF
On _ before me,
(name,title,e.g., "lane Doe,Notary Public"),
personally appeared
(name(s)of signer(s)),
personally known to be--OR--
proved to me on the basis of satisfactory evidence
to be the persons)whose namc(s)islarc subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their-authorized capacity(ics),and that by his/her/their signatures)
on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the
instrument.
Witness my hand and official seal.
(Signature of Notary)
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate Officer(s):
Titic(s)
Partners): Limited General
Attorney-in-Fact
Trustee(s)
Guard ian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Persons)or Entity(ies)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACIINIENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE Title or Type of Document
MUST BE ATTACHED
TO THE DOCUMENT Number of Pages
ESCRIBED Date of Document
T—RIGHT: Signer(s)Other Than Named Above:
"Exhibit D" to Loan Agreement
Page 7 of 9
4%s1G:4-96Agree:Wallace:E) ibitD
RLS 96-523 7129196
STATE OF CALIFORNIA )
ss
COUNTY OF
On before me,
(name, title,e.g., "Jane Doe,Notary Public"),
personally appeared
(siame(s)of signer(s)),
personally known to be--OR--
proved to me on the basis of satisfactory evidence
to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that
helshe/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)
on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the
instrument.
Witness my hand and official seal.
(Signature of Notary)
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate Officer(s):
Titic(s)
Partner(s): Limited General
Attorney-in-Fact
Trustee(s)
Guardian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Persons)or Entity(its)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE Title or Type of Document
MUST BE ATT_ ACHED
TO THE DOCUMENT Number of Pages
DES RIBED Date of Document
T RIGHT; Signcr(s) Other Than Named Above:
"Exhibit D" to Loan Agreement
Page 8 of 9
4'a`A:4A6Agree:W alfacc:ExhibitD
RLS 96-323 7129/96
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
[To Ee Inserted]
LL'n DESCRIPTION
EXHIBIT "A"
PARCEL 1: ,
An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to '
all of the Com•non Area defined in Declaration referred to below and described in the ;'
condominium Plan ("Plan") for Lot 1 of Tract 11o. 14828, which Plan was recorded on August '
25, 1994 as Instrument 11o. 94-0525335 of official Records of Orange County, over Lot I of '
Tract No. 14828, in the-City of Huntington Beach, County of orange, state of California, '
as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the :
county Recorder of said county.
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon -
substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds,
and in various other deeds of record.
PARCEL 2:
unit No. 22 consisting of certain airspace and surface elements, as shown and described in :
the condominium Plan referred to in Parcel I above.
Parcel 3: ,
non-exclusive easements for access, ingress, egress, use, enjoyment, drainage,
encroachment, support, maintenance, repairs and for other purposes, all as described in
that certain Declaration of covenants, conditions and Restrictions and Reservation of
Easements for Pacific Park villas, recorded August 25, 1994 as Instrument Vo. 94-0525336
of Official Records.
Parcel 4: ;
Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio
purposes, over the areas defined, depicted and assigned on the Plan.
I
"Exhibit W toloan Agreement
Page 9 of 9
4'skG:4-96Agrec:Wallace:E•xhibiiD -
M 96.523 7129M
List of Down Payment Assistance Borrowers
at Pacific Park Villas
V � is ?,�+. � r• 7�*+ ►
RCA ROUTING SHEET
INITIATING DEPARTMENT: Economic Development
SUBJECT: Transferability of Pacific Park Villas Down Payment
Assistance Loans
COUNCIL MEETING DATE: May 17, 1999
RCA ATTACHMENTS STATUS
Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (w/exhibits if applicable)
(Sign e d in full PX fhe City Attorne Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form by City Attome Not Applicable
Certificates of Insurance (Approved by the Cit Attome Not Applicable
Financial Impact Statement Unbud et, over$$5,000 Not Applicable
Bonds If applicable) Not Applicable
Staff Report If applicable) Not Applicable
Commission, Board or Committee Report if applicable) Not Applicable
Finding s/Conditions for Approval and/or Denial Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff
Assistant City Administrator Initial
City Administrator Initial
City Clerk
EXPLANATION FOR RETURN OF ITEM:
Only)(Below Space Fbr City Clerk's Use
RCA Author: Duran at extension9529
q-ITY OF HUNTINGTON BEA(, e) (k)i- facior,
MEETING DATE: April 15, 1996 DEPARTMENT ID NUMBER: 96-001
Council/Agency Meeting Held:
Deferred/Continued to: ,
pproved ❑ Conditionally Approved ❑ Denied City Clerl's ignature
Council Meeting Date: April 15, 1996 Department ID Number: 96-001
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL/REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL Res -7-'fi a�
SUBMITTED BY: CONNIE BROCKWAY, CITY CLERK/CLERK L� �PS 2 j
DAVID BIGGS, ECONOMIC DEVELOPMENT
DIRECTOR/REDEVELOPMENT DIRECTOR
PREPARED BY: CONNIE BROCKWAY, CITY CLERK/CLERK L�J
SUBJECT: RESOLUTIONS ADOPTING THE POLICIES AND PROCEDURES
MANUAL FOR DOWN PAYMENT ASSISTANCE LOAN PROGRAM
AND ACCEPTANCE OF LOAN AGREEMENTS FOR OFFICIAL
FILING
Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),An EnM ental Status, �k
Attachments)
Statement of Issue: The City Council/Redevelopment Agency is requested to accept and
authorize the City Clerk/Clerk to officially file on behalf of the City, 18 Down Payment
Assistance Loan Program Agreements which pursuant to previous direction of the City
Council, have been repaired to protect the interests of the city.
The City Council/Redevelopment Agency is also requested to approve the Policies and
Procedures Manual for the City of Huntington Beach/Redevelopment Agency Down Payment
Assistance Loan Program for staff use in future assistance programs.
Funding Source: None required.
Recommended Action:
1. Authorize the City Clerk/Clerk to file on behalf of the City Council/Redevelopment
Agency the 18 Down Payment Assistance Loan Program Agreements, as repaired to
protect the city's interests pursuant to the previous direction of the City Council. C ,
CK96001M.DOC -2- 04/01/96 5:04 PM
i
REQUEST FOR &� COUNCILJREDEVELOPM&T AGENCY ACTION
MEETING DATE: April 15, 1996 DEPARTMENT ID NUMBER: 96-001
AND
2. Adopt Council Resolution No. 96-29 and Agency Resolution No. 273 adopting the Down
Payment Assistance Loan Program Policies and Procedures Manual prepared by Kristine
Price, Auditor, and direct that any substantial revisions to the manual be approved by the
City Council/Redevelopment Agency.
Altemative_Actionlsl: Council/Agency may approve the manual with any revisions
deemed necessary by Council.
Analysis: At the request of the City Clerk's Office and pursuant to City
Council/Redevelopment Agency direction on March 20, 1995, repair work has been
completed on 18 Down Payment Assistance Loan Program Agreements consisting of 27
notes with an aggregate outstanding balance of•$400,826. Kristine Price, outside auditor,
has reviewed the repair work and has provided the city with a Letter of Satisfaction stating
the city has taken the necessary steps to protect its interests through the appropriate
correction of document errors and the creation cf a Policies and Procedures Manual. The
City Attorney's Office has confirmed by letter that the loan agreement files have been
sufficiently repaired to protect the city. During the audit and following the audit, Kristine
Price, Auditor held productive meetings with staff prior to preparing a Policies and
Procedure Manual that meets our city's needs. With revisions from time to time, this manual
will serve our city well. [It should be noted that the manual provides that any substantial
revision to this manual shall be approved by the City Council/Redevelopment Agency.]
The audit agreement that the City Council approved between the City and Kristine Price
included the auditor conducting a training session with city staff. This session was not held
due to Economic Development Department personnel turnover. The auditor deducted this
from the agreement's final billing cost. However, the training session is available at such
time as the city may require.
Attachments:
' �City Clerk's
age Number
1. Two communications from Kristine D. Price, Auditor, dated 9/10195 &
12/26/95
2. Communication from the City Attorney dated 11/30/95
3. City Council Resolution No. 96-29 'A Resolution Of The City Council Of
The City Of Huntington Beach Adopting The Policies And Procedure Manual
For Down Payment Assistance Loan Program."
yQ 4. Redevelopment Agency Resolution No. 273 "A Resolution Of The
Redevelopment Agency Of The City Of Huntington Beach Adopting The
Policies And Procedures Manual For Down Payment Assistance Loan
Program."
17. 5. Policies and Procedures Manual
CK96001M.DOC -3- 04/05/96 1:19 PM
RESOLUTION NO. 96_29
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ADOPTING THE
POLICIES AND PROCEDURE MANUAL FOR DOWN
PAYMENT ASSISTANCE LOAN PROGRAM
WHEREAS, the City Council of the City of Huntington Beach desires the preparation of
uniform policies and procedures for administrating of the City's Doom Payment Assistance
Loan Program; and
The City contracted the professional services of Kristine D. Price for the purpose of
auditing the loan program and creating a manual for staff to utilize when processing loan
documentation; and
Said manual containing uniform standards, procedures and policies for implementation
of the loan program has been prepared;
NOW, THEREFORE, IT IS HEREBY RESOLVED that the City Council of the City of
Huntington Beach adopts the Polices and Procedure Manual for Down Payment Assistance
Loan Program dated September 1, 1995, for use by City staff in Implementing the program.
BE IT FURTHER RESOLVED that any material revision to the manual be approved by
the City Council
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at an adjo=ec
regular meeting thereof held on the 22nd day of, APri1 , 1996.
GL.tr c.
ATTESG Mayor
City Clerk APPROVED AS TO FORM:
If A
&ij
AND APPR ,Fer City Attorney
�2,% `l�
INITI TED AND APPROVED:
ZAdministrator
Director of Economic Development
CITY CLERK /AGEN7 CLERK
71Wdownpay13119I96
t
Res. No. 96-29
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, the duly elected, qualified City Clerk of
the City of Huntington Beach, and ex-officio Clerk of the City Council of said
City, do hereby certify that the whole number of members of the City Council of
the City of Huntington Beach is seven; that the foregoing resolution was passed
and adopted by the affirmative vote of at least a majority of all the members of said
City Council at an adjourned regular meeting thereof held on the 22nd of
February, 1996 by the following vote:
AYES: Councilmembers: Harman, Leipzig, Bauer, Sullivan, Dettloff,
Green, Garofalo
NOES: Councilmembers: None
ABSENT: Councilmembers: None
City Clerk and ex-officio Clerk of the
City Council of the City of Huntington
Beach, California
G/resoluti/resbkpg
RESOLUTION NO. 273
A RESOLUTION OF THE REDEVELOPMENT AGENCY
OF THE CITY OF HUNTINGTON BEACH ADOPTING THE
POLICIES AND PROCEDURE MANUAL FOR DOWN
PAYMENT ASSISTANCE LOAN PROGRAM
WHEREAS, the Redevelopment Agency of the City of Huntington Beach desires the
preparation of uniform policies and procedures for administrating of the Agency's Down
Payment Assistance Loan Program; and
The City contracted the professional services of Kristine D. Price for the purpose of
auditing the loan program and creating a manual for staff to utilize when processing loan
documentation; and
Said manual containing uniform standards, procedures and policies for implementation
of the loan program has been prepared;
NOW, THEREFORE, IT IS HEREBY RESOLVED that the Redevelopment Agency of
the City of Huntington Beach adopts the Polices and Procedure Manual for Down Payment
Assistance Loan Program dated September'I, 1995, for use by Agency staff in implementing
the program.
BE IT FURTHER RESOLVED that any material revision to the manual be approved by
the Redevelopment Agency.
PASSE ND A OPTED by the Redevelopment Agency of the City of Huntington
Beach at gu`I��'i �' ng thereof held on the 22nd day of A ri i
ATTEST Chairman
Agency Clerk APPROVED AS TO FORM:
•
4
RE AND APPROVED: foe-Agency Counsel ( ff
lN1T1 TED AND APPROVED:
Executive erector /o
Director of Economfc Development
CITY CLERK /AGENCY LERK
Wkldownpay13119M
2
f
Res. No. 273
STATE OF CALIFORNIA )
COUNTY OF ORANGE. )
CITY OF HUNTINGTON BEACH )
I, CONNIE BROCKWAY, Clerk of the Redevelopment Agency of
the City of Huntington Beach, California, DO HEREBY CERTIFY that the
foregoing resolution was duly adopted by the Redevelopment Agency of the City
of Huntington Beach at an adjourned regular meeting of said Redevelopment
Agency held on the 22nd day of April, 1996 and that it was so adopted by the
following vote:
AYES: Members:
Harman, Leipzig, Bauer, Sullivan, Dettloff, Green, Garofalo
NOES: Members:
None
ABSENT: Members:
None
Clerk of the Redevelopment Agency
of the City of Huntington Beach, Ca.
G/resoluti/resUpg2
I �
1 '
i
LOAN AGREEMENT
THIS LOAN AGREEMENT (the "Agreement") Is made this
16TH day of MARCH , 19 94by and between
TAM HOANG ("Participant") and THE REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH, a public body, corporate and politic
("Agency").
RECITALS
A. Participant has entered Into an agreement (the "Purchase Agreement") to
purchase that certain real property commonly known as 409 Utica Avenue, D-37,
Huntington Beach, California, and more particularly described in Exhibit "A"
attached hereto and Incorporated herein (the "Property").
B. Participant requires assistance to purchase the Property and would not
be able to purchase the Property without such assistance. Participant Is a person or
family of low or moderate Income and currently earns less than 79% of the current
annual median income for the Orange County area, as those terms are defined by
Callfbmla Health and $afejy !Code Secdon 50093.
C. Participant has represented to Agency that Participant and
Participant's Immediate family Intend to reside In the Property at ail times
throughout the term of this Agreement.
D. Agency desires to utilize tax Increment money to assist persons of low
and moderate Income to purchase residential property to increase, Improve, and
preserve low and moderate Income housing available at an affordable housing cost
within the City of Huntington Beach, all of which is consistent with the goals of the
Affordable Housing Program and the Huntington Beach Redevelopment Plans.
E. The Agency wishes to lend, and Participant wishes to borrow,
Program funds to assist Participant to purchase the Property upon the terms and
conditions set forth herein.
1
7/abrbus/02/22/94
NOW, THEREFORE, for good and valuable consideration the parties agree
as follows:
1. Agency Loan. Agency shall loan to Participant (the "Loan") the
amount of Twenty Three Thousand and no/100 Dollars ($23,000.00), subject to
the conditions and restrictions set forth herein and those set forth In the Promissory
Note, the Disclosure Statement for the Program, the Deed of Trust and all
applicable state, local and federal laws. The Loan shall be paid to the seller of the
Property (the "Seiler") by the Agency through deposit of the Loan proceeds Into
escrow with TIEMPO ESCROW (the "Escrow Agent") (Escrow No. 6636-L ),
The Agency shall direct the Escrow Agent to apply the proceeds of the Loan on
behalf of Participant to the purchase price of the Property, and, at Participant's
election, to the costs of closing, escrow fees, recording fees, loan points and fees,
and/or document fees. At such time, Participant shall execute and deliver to the
Agency a promissory note in favor of the Agency as holder, In the amount of the
Loan, with Interest at five percent (5%) per year. The Loan, together with accrued
Interest and the equity share amount, shall be due In the event that Participant falls
to comply with the terms of this Agreement, the Deed of Trust and Rider thereto,
any Covenants, Conditions a Restrictions for Affordable Housing or Affordable
Housing Agreement which Is recorded on the Property, or any other law,
requirement or condition of the Affordable Housing Program or governmental
entity or sells the Property to a non-qualified Buyer. Otherwise, no payment of
principal or Interest shall be required during the term of the Loan. Participant shall
execute and deliver a Promissory Note substantially In the form of the Promissory
Note attached hereto as Exhibit "B" and Incorporated herein by this reference.
Participant shall also execute and deliver to the Agency a deed of trust encumbering
the Property which shall secure the Promissory Note (the "Deed of Trust"), in the
form of Exhibit "C" attached hereto and Incorporated herein.
2. Maintmance of Proms. 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 ail
applicable federal, state and local laws.
2
7hbrkas/02/22/94
3. 0ccelezatlon/Due_on-Sale. The Loan, all Interest accrued thereon
and the equity share amount as defined herein below, shall be due and payable upon
(1) sale, transfer, or other disposition of the Property, including, without limitation,
lease, exchange or rent of any part of the Property, except sale to a purchaser
approved by Agency, (I!) the refinancing of the First Mortgage for a loan amount In
excess of the then current loan balance or for an amortization period longer than
the loan secured by the First Mortgage, or, (Iii) Participant Is In material default of
any other obligation contained In this Agreement or any provision of the Affordable
Housing Agreement or Covenant (Attachment "D" to this Agreement) recorded on
the property, or (iv) Participant violates any condition of the deed of trust or
promissory note, or (v) the death of Participant (unless the Participant's household,
occupying the property, contains more than one quallfied participant and at least
one qualified participant survives). At the request of Participant, the Agency may,
In its sole discretion, extend the term of the Loan.
4. New I,gan to Qualified.BJ,tyer. Notwithstanding the
provisions herein above, If the Property Is sold by the Participant to a Buyer defined
as a low or moderate Income household by Section 50093 of the California Health
and-Safety-ode (or any other provision of law which may be enacted In the future,
replacing Section 50093 or the law which defines "low or moderate" Income for
the purposes of affordable housing), and said Buyer Is approved by Agency,
("Eligible Person or Family") and the Sales Price does not exceed an "affordable
housing cost," as defined by Section 50052.5 of the California Health and Safety
Sae (or any other provision of law replacing this section which may be enacted In
the future), and the Buyer assumes the Participant's loan, then no Equity Share
Amount is due to the Agency upon such sate and Interest is due under the
conditions set forth below. In order to verify the Buyer's status as an Eligible Person
or Family, Participant shalt submit to the Agency, together with the notice of
proposed sale pursuant to the loan Agreement, the Identity of the proposed Buyer
and adequate Information evidencing the Income of the proposed Buyer. Said
Income Information shall Include original or true copies of pay stubs, Income tax
records or other financial documents In order that the Agency may determine and
verify the household Income of the proposed Buyer to determine Eligible Person or
Family status and whether the Property Is available to such Buyer at an affordable
housing cost pursuant to the standards set forth in the Agency's Affordable Housing
Program. If the Agency Is unable to verify the Buyer's Income as provided herein,
then the Buyer's Income shall be deemed to exceed the maximum allowable income
3
7/abdun/02/22/94
1
limit for Eligible Persons and Families and the Equity Share Amount shall be due and
payable concurrent with the repayment of the Note Amount plus interest. In the
event that sale or transfer Is made to an Eligible Person or Family, interest which has
accrued upon close of escrow shall be due and payable. Interest will begin to accrue
at the simple rate of five percent per annum as to the new owner, on the date upon
which escrow closes and will accrue on the then unpaid principal amount.
5. Notice to Agency Participant agrees to notify the Agency not less
than thirty (30) days prior to (1) the sale or transfer of the Property or (11) any
refinancing of the lien secured by the First Deed of Trust (the "First Mortgage) or
any lien or note to which the lien secured by the First Deed of Trust Is subordinate
6. Qccupancy_Standards. The Property shall be used as the personal
residence of Participant and Participant's Immediate family and for no other
purpose. Participant shall not enter Into an agreement for the rental or lease of the
Property.
7. Income Information. Participant has submitted an eligibility verification
form to the Agency prior to execution of this Agreement. Participant represents
and warrants to the Agency that all information Participant has provided and will
provide In the future Is and will be true, correct and complete. Participant
acknowledges that the Agency Is relying upon Participant's representations that
Participant's Income does not exceed 79% of the area median Income and would
not have entered Into this Agreement if Participant's income had exceeded 79% of
the Orange County median Income.
8. First Time Homebuyer. Participant represents and warrants to the
Agency that neither Participant nor any of Participant's Immediate family residing In
the Property has, or has had, a present ownership Interest In a principal residence at
any time during all or any part of the three (3) years Immediately prior to the
funding of the Agency Loan.
9. Loan Servicing. The Agency may contract with a private lender
to originate and service the Agency Loan.
10. Participant Financing. Participant shall obtain financing for the
purchase of the Property from a reputable Institutional lender approved by the
4
7/abd$W02122/94
1
L ,
V
Agency (the "Lender"). The lien secured by the Deed of Trust shall only be
subordinate to a first lien on the Property held by the Lender or Lender's assigns. In
addition, not less than three percent (3%) of die Purchase Price of the Property
shall be paid In cash from Participant's own resources and not from the proceeds of
a loan.
11. Covenants. Recorded In the Official Records of Orange County,
California, is a declaration of conditions, covenants and restrictions for property,
which Is known as an Affordable Housing Agreement or (covenants) which Is
attached as Exhibit "D" hereto and Incorporated herein. Participant agrees that the
Property shall only be owned by Participant or other persons or families of low or
moderate income available at an affordable housing cost, as those terms are defined
In the Affordable Housing Agreement, and that Participant shall not discriminate
against any person or group of persons on the basis of race, color, religion, sex,
marital status, national origin or ancestry, all as set forth in the Affordable Housing
Agreement.
12. Equity Share. In the event that the Agency Loan becomes due and
payable prior to the thirtieth anniversary of the date of this Agreement, Participant
shall pay to Agency concurrent with the principal and accrued Interest, an amount
equal to the "Equity Share Amount." The Equity Share Amount shall be
determined by applying a percentage factor (the "Applicable Factor") to the
difference between the Sales Price and the Purchase Price (defined below) as
follows:
1. Prior to fifth anniversary fifty percent (50%)
of the Agency Deed of Trust:
2. After fifth anniversary but forty-eight percent
prior to sixth anniversary: (48%)
3. After sixth anniversary but forty-six percent (46%)
prior to seventh anniversary:
4. After seventh anniversary but forty-four percent (44%)
prior to eighth anniversary:
5
7/jbr[&WVZ/2Y/94
S. After eighth anniversary but forty-two percent (42%)
prior to ninth anniversary:
6. After ninth anniversary but forty percent (40%)
prior to tenth anniversary:
7. After tenth anniversary but thirty-eight percent (38%)
prior to eleventh anniversary:
B. After eleventh anniversary but thirty-six percent (36%)
prior to twelfth anniversary:
9. After twelfth anniversary but thirty-four percent (34%)
prior to thirteenth anniversary:
10. After thirteenth anniversary but thirty-two percent (32%)
prior to fourteenth anniversary:
1 I. After fourteenth anniversary but thirty percent (30%)
prior to fifteenth anniversary:
12. After fifteenth anniversary but twenty-eight percent
prior to sixteenth anniversary: (28%)
13. After sixteenth anniversary but twenty-six percent
prior to seventeenth anniversary: (26%)
14. After seventeenth anniversary but twenty-four percent .
prior to eighteenth anniversary: (24%)
15. After eighteenth anniversary but twenty-two percent
prior to nineteenth anniversary: (22%)
16. After nineteenth anniversary but twenty percent (20%)
prior to twentieth anniversary:
17. After twentieth anniversary but eighteen percent 0 8%)
prior to twenty-first anniversary:
6
7/abrisW02/22/94
18. After twenty-first anniversary but sixteen percent (16%)
prior to twenty-second anniversary:
19. After twenty-second anniversary but fourteen percent (14%)
prior to twenty-third anniversary:
20. After twenty-third anniversary but twelve percent (12%)
prior to twenty-fourth anniversary:
21. After twenty-fourth anniversary but ten percent (10%)
prior to twenty-fifth anniversary:
22. After twenty-fifth anniversary but eight percent (8%)
prior to twenty-sixth anniversary:
23. After twenty-sixth anniversary but six percent (6%)
prior to twenty-seventh anniversary:
24. After twenty-seventh anniversary but four percent (4%)
prior to twenty-eighth anniversary:
25. After twenty-eighth anniversary but two percent (2°l0)
prior to twenty-ninth anniversary:
26. After twenty-ninth anniversary but one percent (1%)
prior to thirtieth anniversary:
27. After thirtieth anniversary: zero percent (01%)
The "purchase Price" Is the original purchase price paid by the Participant to
the Seller for Seller's interest In the Property, exclusive of escrow fees, title
Insurance costs, broker's commission, loan fees or any other closing or transaction
costs.
The "Sales Price" Is the price to be paid by the buyer of the Property (the
"Buyer") to Participant for Participant's Interest In the Property, exclusive of escrow
fees, tide Insurance costs, broker's commissions, loan fees or any other closing or
transaction costs.
7
7/AbrKW02/22/94
In the event of sale of the Property and at the election of the Agency, the
Agency may appoint a certified, independent appraiser to conduct any appraisal of
the Property, at Participant's expense to assist the Agency In determining If the Sales
Price Is at or near the fair market value of the Property at such time. If the Sales
Price Is determined by the appraisal to be three percent (3%) or more below the
fair market value of the Property as estimated In said appraisal, then the "Sales
Price" for purposes of determining the Equity Share Amount shall be the fair market
value of the Property established In said appraisal.
PARTICIPANT ACKNOWLEDGES AND AGREES THAT UPON THE
OCCURRENCE OF ANY OF THE EVENTS DESCRIBED IN PARAGRAPH 3
ABOVE, PRIOR TO THE 30TH ANNIVERSARY, PARTICIPANT SHALL PAY
TO AGENCY AN EQUITY SHARE AMOUNT EQUAL TO A PERCENTAGE
SHARE OF THE APPRECIATION OF THE PROPERTY AS CALCULATED
PURSUANT TO THIS SECTION. EXCEPT AS PROVIDED HEREIN, THE
AGENCY ACKNOWLEDGES AND AGREES THAT PARTICIPANT SHALL
ONLY PAY THE NOTE AMOUNT AND THE EQUITY SHARE AMOUNT TO
THE AGENCY IF, AND ONLY IF, PARTICIPANT FAILS TO CONTINUOUSLY
OWN AND OCCUPY THE PROPERTY FOR THIRTY (30) YEARS,
PARTICIPANT FAILS TO COMPLY WITH THE PROVISIONS OF THIS
AGREEMENT, OR PARTICIPANT SELLS THE PROPERTY TO A BUYER NOT
QUALIFIED BY THE AGENCY.
PAR ICIPANT V AGENCY
The value of all capital Improvements to the Property made while Participant
owned and occupied the Property shall be deducted from the Sales Price when
calculating the Equity Share Amount, If Participant complies with the following:
The costs Incurred by the Participant for capital Improvements
shall be deducted from the Sales Price only If Participant submits
the following to the Agency: (i) an Itemized list of the
Improvements, (11) reliable proof of completion of the
Improvements (as evidenced e.g., by final building permits or
certificate of completion), and (lil) reliable evidence of the cost of
8
7/*r1s.uasisiro,
the Improvements and that Participant paid those costs (as
evidenced e.g., by an itemized Invoice or receipt).
Notwithstanding the foregoing, Participant's obligation to pay the Equity
Share Amount is subject to a superior right of Participant, upon termination of the
Agency Loan, to receive repayment of money paid by the Participant without
Agency assistance for purchase of the Property (including down payment,
Installment payments of mortgage principal pursuant to the First Lien, escrow fees,
transfer taxes, recording fees, brokerage commissions, and similar costs actually paid
by the Participant) and money paid by the Participant for capital improvements to
the Property.
13. Non-Waiver. Failure to exercise any right the Agency may have or be
entitled to, in the event of default hereunder, shall not constitute a waiver of such
right or any other right In the event of a subsequent default.
14. Indemnification. The Participant shall defend, indemnify and hold
harmless the Agency and the City of Huntington Beach and its respective officers,
agents, employees, representatives and volunteers from and against any loss,
liability, claim or judgment relating in any manner to the property or this
Agreement. The Participant shah remain fully obligated for the payment of
property taxes and assessments related to the Property. There shall be no reduction
In taxes for Participant, nor any transfer of responsibility to the Agency to make
such payments, by virtue of the Loan.
15. Insurance. Participant shall maintain, during the term of the
Agency loan, an all-risk property insurance policy Insuring the Property In an
amount equal to the full replacement value of the structures on the Property. The
policy shall name the Agency as loss payee and shall contain a statement of
obligation on behalf of the carrier to nodfy the Agency 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
Agency within thirty (30) days of the effective date of this Agreement, and
Participant shall annually transmit to Agency a copy of the certificate of insurance
and a loss payee endorsement, signed by an authorized agent of the Insurance
9
713bdus/02/22ro4
carrier setting forth the general provisions of coverage. The copy of the certificate
of insurance and loss payee endorsement shall be transmitted to Agency as follows:
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH
Attention: Executive Director
2000 Main Street
Huntington Beach, CA 92648
Any certificate of Insurance must be In a form approved by the City
Attorney.
16. Defaul Failure or delay by either party to perform any term or
provislon of this Agreement which Is not cured within thirty (30) days after receipt
of notice from the other party constltutes a default under this Agreement; provided,
however, if such default Is of the nature requiring more than thirty (30) days to
cure, the defaulting parry 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 parry 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.
17. Documents. Participant Is aware that the Agency has prepared
certain documents to implement the Affordable Housing Program and secure
repayment of the Loan. Participant has reviewed and agrees to the terms and
conditions contained In the following documents prior to receiving the Loan:
(a) Disclosure Statement
(b) Promissory Note;
(c) Deed of Trust; and
10
7/abrba/02/22ro4
(d) The Affordable Housing Agreement (Exhibit "D").
(e) Notice of Right of Recission
Participant agrees and acknowledges that the executed Deed of Trust,
Disclosure Statement and the Affordable Housing Agreement shall be recorded with
the County Recorder of the County of Orange and shall appear of record with
respect to and as encumbrances to the Property.
Participant further agrees to all terms and conditions of the Disclosure
Statement which Is hereby Incorporated as If fully set forth herein.
18. Eater Assurances. The Participant shall execute any further
documents consistent with the terms of this Agreement, Including documents In
recordable form, as the Agency shall from time to time find necessary or
appropriate to effectuate its purposes in entering Into this Agreement and malting
the Loan.
19. Governing Law. This Agreement shall be governed by the laws of
the State of California. Any legai action brought under this Agreement must be
Instituted In the Superior Court of the County of Orange, State of California, in an
appropriate municipal court In that county, or In the Federal District Court in the
Central District of California.
20. Amendment of Agreement.No modification, recisslon, waiver, release
or amendment of any provision of this Agreement shall be made except by a written
agreement executed by the Participant and Agency.
21. AgencY_MayAssim.Agency may, at its option, assign Its right to
receive repayment of the loan proceeds without obtaining the consent of the
Participant.
22. nt Prohibited. in no event shall
Participant assign or transfer any portion of this Agreement without the prior
express written consent of the Agency, which consent may be given or withheld in
the Agency's sole discretion. Assumption of the Loan shall be permitted, If consent
Is given by Agency. This section shall not prohibit the Agency's right to assign all or
any portion of Its rights to the loan proceeds hereunder.
11
7i,w6u/02i22194
23. Enter Agreement. This Agreement constitutes the entire
understanding and agreement of the parties. This Agreement Integrates all of the
terms and conditions mentioned herein or Incidental thereto, and supersedes all
prior negotiations, discussions and previous agreements between the Agency and the
Participant concerning all or any part of the subject matter of this Agreement.
24. Relationshipof Partic pant-and Agency. The relationship of
Participant and Agency pursuant to this Agreement Is that of debtor and creditor
and shall not be, or be construed to be a joint venture, equity venture, partnership,
or other relationship.
25. Notices. Any notices, requests or approvals given under this
Agreement from one parry to another may be personally delivered or deposited
with the United States Postal Service for mallin;, postage prepaid, registered or
certified mail, return receipt requested to the following address:
To participant: -; 1 Mier ko�+/Lr-
t A 37
To Agency: THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH
Attention: Executive Director
2000 Main Street
Huntington Beach, CA 92648
Either party may change Its address for notice by giving written notice
thereof to the other party.
26. Subordination Clause. In the event of a foreclosure or deed in
lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions
In any other collateral agreement restricting the use of the Property to low or
moderate Income households or otherwise restricting the Borrower's ability to sell
the Property shall have no further force or effect on subsequent owners or
purchasers of the Property. Any person, Including his successors or assigns (other
than the Borrower or a related entity of the Borrower), receiving titre to the
Property through a foreclosure or deed In lieu of foreclosure of the First Deed of
Trust shall receive title to the Property free and clear from such restrictions.
12
7/kdsu/02/22194
IN WITNESS WHEREOF, the parties have executed this Agreement as of
the day and year written below.
"PARTICIPANT"
Date: 3_1�_ G By: .tr�, �
Print Name: -TP _, �[/ '„� _lf✓gW`;
Tide: =y-r-
Date: By:
Print Name:
Tide:
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH, a
tdpal corporation
Date: Z Z 3 - By: rc' ,c cry
Print Name: t.L
Its: r Q ivc -i rec ✓
APPROVED AS TO FORM:
By:
GAIL HLI ON
City Atto ey/Agency Counsel
13
71jbdsW02/21ro4
LOAN AGREEMENT
THIS LOAN AGREEMENT (the "Agreement") is made this 16TH day
of MARCH 1994 by and between TAM HOANG ("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 409 Utica Avenue, D-37,
Huntington Beach, Cafifornia, and more pardcularly described in Exhibit "A" attached
hereto and incorporated herein (the "Property").
B. Participant requires assistance to purchase the Property and would not be
able to purchase the Property without such assistance. Participant Is a person or family of
low or moderate Income and currently earns less than 79% of the current annual median
Income for the Orange County area, as those terms are defined by California Health and
Safety Code Section 50093.
C. Participant has represented to City that Participant and Participant's
Immediate family Intend to reside In the Property at all times throughout the term of this
Agreement.
D. City desires to utilize Community Development Block Grant funds In a
manner consistent with federal guidelines to assist persons of low and moderate Income to
purchase residential property to Increase, improve, and preserve low and moderate Income
housing available at an affordable housing cost within the City of Huntington Beach.
E. The City wishes to lend, and Participant wishes to borrow, Program funds
to assist Participant to purchase the Property upon the terms and conditions set forth
herein.
NOW, THEREFORE, for good and valuable consideration the parties agree as
follows:
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l. City Loan City shall loan to Participant (the "Loan") the
amount of Six Thousand One Hundred Forty-Two and SO/100 Dollars ($6,142.50),
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 T1EMPO ESCROW (the "Escrow
Agent") (Escrow No. 663b—L ). 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, with Interest
accruing at five percent (5%) per year, substantially In the form of the "Promissory Note"
attached hereto as Exhibit "B" and Incorporated herein. Participant shall also execute and
deliver to the City a deed of trust encumbering the Property which shall secure the
Promissory Note (the "Deed of Trust"), substantially In the form of Exhibit "C" attached
hereto and incorporated herein.
2. Maintenance of Property. Participant shall maintain the improvements
on the Property in a manner consistent with community standards and in a manner which
will uphold the value of the Property, and shall keep the Property free from any
accumulation of debris and waste materials. Participant agrees to comply with any and all
covenants and agreements established by any homeowner's association or other regulatory
entity recognized by area property owners and comply with all applicable federal, state and
local laws, Including conditions of approval which may apply to the Property pursuant to an
entitlement issued by the City.
3. Acceleration/Due on Sale.
Except as herein provided, the Loan and all Interest accrued thereon shall be
due and payable upon (1) such sale, transfer, or other disposition of the Property,
including, without limitation, lease, exchange or rent of any part of the Property, (11) the
refinancing of the First Mortgage for a loan amount In excess of the then current loan
balance or for any amortization period longer than the loan secured by the First Mortgage,
or (lit) Participant is In material default of any other obligation contained In this Agreement
or any provision of the Affordable Housing Agreement or Covenant (Attachment "D" to
this Agreement), as defined herein, recorded on the property, or (iv) Participant violates
any condition of the deed of trust or promissory note, or (v) the death of Participant
(unless the Participant's household, occupying the property, contains more than one
qualified participant and at least one qualified participant survives).
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4. Notice to City. Participant agrees to notify the City not less than
thirty (30) days prior to (1) the sale or transfer of the Property or (ii) any refinancing of
the lien of the First Deed of Trust (the "First Mortgage") or any lien to which the lien of
this Deed of Trust Is subordinate.
5. Occupancy Standards. The Property shall be used as the personal
residence of Participant and Participant's Immediate family and for no other purpose.
Participant shall not enter into an agreement for the rental or lease of the Property.
G. Income Information. Participant has submitted an eligibility verification
form to the City prior to execution of this Agreement. Participant represents and warrants
to the City that all information Participant has provided and will provide in the future Is and
will be true, correct and complete. Participant acknowledges that the City is relying upon
Participant's representations that Participant's income does not exceed 79% of the area
median Income and would not have entered this Agreement if Participant's Income
exceeded 79% of the area median Income.
7. First Time Homebuyer. Participant represents and warrants to the
City that neither Participant nor any of Participant's Immediate family residing In the
Property has, or has had, a present ownership Interest In a principal residence at any time
during all or any part of the three (3) years Immediately prior to the funding of the City
Loan.
8. Loan Servicing. The City may contract with a private lender to
originate and service the Clty 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"). 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 Officlai Records of Orange County,
California, Is a declaration of conditions, covenants and restrictions for property, which Is
known as an Affordable Housing Agreement or covenants which Is attached as Exhibit "D"
hereto and Incorporated herein. Participant agrees that the Property shall only be owned
by Participant or other persons or families of low or moderate Income available at an
affordable housing cost, as those terms are definedin the Affordable Housing Agreement,
and that Participant shall not discriminate against any person or group of persons on the
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basis of race, color, religion, sex, marital status, national origin or ancestry, all as set forth
In the Affordable Housing Agreement.
11. Non-Waiver. Failure to exercise any right the City may have or be entitled
to, In the event of default hereunder, shall not constitute a waiver of such right or any
other right In the event of a subsequent default.
12. Indemnification. The participant shall defend, Indemnify and hold
harmless the City of Huntington Beach and Its respective officers, agents, employees,
representatives and volunteers from and against any loss, liability, claim or judgment
relating In any manner to the Property of this Agreement. The Participant shall remain
fully obligated for the payment of property taxes and assessments related to the Property.
There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the
City to make such payments, by virtue of the Loan.
13. Insurance. Participant shall maintain, during the term of the City Loan,
an all-risk property Insurance policy Insuring the Property In an amount equal to the full
replacement value of the structures on the Property. The policy shall name the City as loss
payee and shall contain a statement of obligation on behalf of the carrier to notify the C1ty
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: Department of Economic Development
Any cerdflcate 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
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party shall avoid default hereunder by commencing to cure within such thirty (30) day
period and thereafter diligently pursuing such cure to completion. The parry who so falls
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 parry shall give written notice of default to the parry in default,
specifying the default complained of by the Injured parry. Except as required to protect
against further damages, the injured party may not Institute proceedings against the party In
default until thirty (30) days after giving such notice. Failure or delay In giving such notice
shall not constitute a waiver of any default, nor shall It change the time of default.
15. Documents. Participant Is aware that the City has prepared certain
documents to implement the Program and secure repayment of the Loan. Participant has
reviewed and agrees to execute the following documents prior to receiving the Loan:
(a) Disclosure Statement
(b) Promissory Note;
(c) Deed of Trust; and
(d) The Affordable Housing Agreement (Exhibit "D")
(e) Notice of Right of Recisslon
Participant agrees and acknowledges that the Deed of Trust, Loan Disclosure
Statement and the Affordable Housing Agreement shall be recorded with the County
Recorder of the County of Orange and shall appear of record with respect to and as
encumbrances to the Property.
16. Further Assurances. The Participant shall execute any further documents
consistent with the terms of this Agreement, Including documents in recordable form, as
the City shall from time to time find necessary or appropriate to effectuate its purposes In
entering Into this Agreement and making the Loan.
17. Governing Law. This Agreement shall be governed by the laws of the
State of California. Any legal action brought under this Agreement must be Instituted in
the Superior Court of the County of Orange, State of California, In an appropriate
municipal court In that county, or in the Federal District Court in the Central District of
Califomla.
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18. Amendment of Agreement. No modification, recission, waiver, release or
amendment of any provision of this Agreement shall be made except by a written
agreement executed by the Participant and City.
19. City May Assign. City may, at Its option, assign Its right to receive
repayment of the loan proceeds without obtaining the consent of the Participant.
20. Participant Assignment Assumption Prohibited. In no event shall
Participant assign or transfer any portion of this Agreement without the prior express
written consent of the City, which consent may be given or withheld In the City's sole
discretion. No assumption of the Loan shall be permitted at any time. This section shall
not prohibit the City's right to assign all or any portion of its rights to the loan proceeds
hereunder.
21. Entire Agreement. This Agreement constitutes the entire understanding
and agreement of the parties. This Agreement integrates all of the terms and conditions
mentioned herein or Incidental thereto, and supersedes ail 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, parmership, 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 cerdriied mall, return
receipt requested to the following address:
To Participant: ,-7
Ail F1 uzc kl&
i t r -37
eA- R26ye
To City: City of Huntington Beach
Attention: Department of Economic Development
2000 Main Street
Huntington Beach, CA 92648
Either party may change Its address for notice by giving written notice
thereof to the other party.
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24. Subordination Clause In the event of a foreclosure or deed In lieu of
foreclosure of the First Deed of Trust, any provisions herein or any provisions In any other
collateral agreement restricting the use of the Property to low or moderate Income
households or otherwise restricting the Borrower's ability to sell the Property shall have no
further force or effect on subsequent owners or purchasers of the Property. Any person,
Including his successors or assigns (other than the Borrower or a related entity of the
Borrower), receiving title to the Property through a foreclsoure or deed In lieu of
foreclosure of the First Deed of Trust shall receive title to the Property free and clear from
such restrictions.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year written below.
"PARTICIPANT"
Date: By:
Print Name: __ A1A'w w Sul
Title: rwz�n2 r�
Date: By:
Print N.tme:
Tide:
CITY OF HUNTINGTON BEACH, a
municipal corporation
Date: By:
Print Name: K,.u's;w
its: I),r. J� C:l'o I-*-�
APPROVED AS TO FORM:
By: G- /L
l ,iGA1L HU ON, City torney
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`i
Recording Requested By
And When Recorded Return To:
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attn: Department of Economic Development
Property Address: 409 Utica Avenue D-37, Huntington Beach
CITY OF HUNTINGTON BEACH LOAN ASSISTANCE
DISCLOSURE STATEMENT
If We TAM HOANG
("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:
• INVe must qualify for a home loan from an institutional lender
acceptable to the City.
• INVe must pay at least 9 % of the home purchase price from our
own funds.
• INVe must qualify for assistance under the guidelines of the City's
Program.
I/We further understand and agree that:
• INVe will be responsible for repaying the loan at the time Itwe sell,
transfer, refinance, or no longer occupy my/our home, or breach
any part of the Loan Agreement.
• INVe have a right to cancel or rescind this loan at any time prior to
midnight on the third business day after the loan agreement is
signed by sending a notice of my/our decision to rescind or cancel
the loan to:
City of Huntington Beach
2000 Main Street, P.O. Box 190
Huntington Beach, CA 92648
Attn::Department of Economic Development
1
Wiscts +.117ros
• The City will not require melus to make payments of principal or
interest during the term of the loan. The full balance of principal
and interest will be due and payable if Uwe do not comply with the
terms of the agreement to which this statement is attached. There
are no loan closing costs, prepayment penalties or charges, points,
fees, finance charges, service charges, investigation fees, credit
report fees, insurance premiums, notary or escrow fees, late
payment charges or other fees payable pursuant to this loan. An
appraisal fee may be payable upon the refinancing of my/our
house.
• The City shall not be held responsible for any costs associated with
the institutional loan for the home Uwe purchase with such
assistance including, but not limited to, any loan fees or charges,
any charges for appraisals, or any escrow costs or other costs
relating to the transfer of property.
• The 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. [Ave assume all responsibility for
determining whether Ilwe desire to be considered for the Program,
and l/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.
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rdiscIsMU/N
V
j .
• The City financial assistance Ilwe 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 Ilwe may incur by virtue of the receipt of such
financial assistance.
Dated: q!k �w
Signature of 6pplicant
Dated:
Signature of applicant
Dated:
Signature of applicant
APPROVED AS TO FORM:
e/1 u Zte
GCI� mey .�h� or.((,q
3
Recording Requested By
And When Recorded Return To:
Redevelopment Agency of the
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attn: Executive Director
Property Address: 409 Utirn Avnniin Tl-17, uimtingtnn Rn.nrh
THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
LOAN DISCLOSURE STATEMENT
INVe TAM MOANG
("Applicant") understand and agree that the provision of financial assistance from
The Redevelopment Agency of the City of Huntington Beach ("Agency") is
conditioned upon a number of factors, including, but not limited to:
• IIWe must qualify for a home loan from an institutional lender
acceptable to the Agency.
• IMle must pay at least 3% of the home purchase price from our
own funds.
• IAIVe must qualify for assistance under the guidelines of the
Agency's Program.
IlWe further understand and agree that:
• I/We will be responsible for repaying the loan at the time Itwe sell,
transfer, refinance, or no longer occupy mylour home, or breach
any part of the Loan Agreement.
• VWe have a right to cancel or rescind this loan at any time prior to
midnight on the third business day after the loan agreement is
signed by sending a notice of my/our decision to rescind or cancel
the loan to:
Redevelopment Agency of the
City of Huntington Beach
2000 Main Street, P.O. Box 190
Huntington Beach, CA 92648
Attn: Executive Director
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7Wiscls=14194
• The Agency will not require me/us to make payments of principal or
interest during the term of the loan. The full balance of principal
and interest may be due and payable if 11we do not comply with the
terms of the agreement to which this statement is attached or when
the Loan is assumed. There are no loan closing costs, prepayment
penalties or charges, points, fees, finance charges, service
charges, investigation fees, credit report fees, insurance premiums,
notary or escrow fees, late payment charges or other fees payable
pursuant to this loan. An appraisal fee may be payable upon the
refinancing of mylour house.
• The Agency shall not be held responsible for any costs associated
with the institutional loan for the home Ilwe purchase with such
assistance including, but not limit-ad to, any loan fees or charges,
any charges for appraisals, or any escrow costs or other costs
relating to the transfer of property.
• The Agency cannot ensure that information provided by or on
behalf of Applicant will be kept confidential.
• The Agency shall not be responsible for the selection of a home by
the Applicant, the selection of a lender providing funds assisting in
the purchase of the home, providing information concerning other
public or private sources of loans, or the competitiveness of the
terms of the Program. I/we assume all responsibility for
determining whether I1we desire to be considered for the Program,
and ltwe will inform myselflourselves as to the availability and
terms of other public or private loans.
• The Agency shall not be charged with knowledge of the contents of
the documents of the primary lender.
• All loans must be approved by the Redevelopment Agency of the
City of Huntington Beach; therefore, a minimum 60-day escrow is
necessary.
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• The Agency financial assistance Ilwe receive under this Program
may be considered to be income for purposes of federal or state
income taxes and the Agency shall not be held responsible for the
payment of any taxes which l/we may incur by virtue of the receipt
of such financial assistance.
Dated: � 7c
Signature o applicant
Dated:
Signature of applicant
Dated:
Signature of applicant
APPROVED AS TO FORM:
ep unsel q�
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UisclsMI4194
RECEIVED
CITY CLERK
CiTY OF
RUHTIHCTDh BEACH,CALIF.
PROMISSORY NO TE AUG 8 3 36 PH 091]
Property Address 409 Utica Ave. D-37 Huntington Beach, California
MARCH 16 1994
t. Promise to PaV. TAAt HOANG ("Borrower") promises
to pay the CITY OF HUNTINGTON BEACH, a mun°cipal 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 one Hundred Forty Two & 5o/loi
Dollars (till Rthe "Note Amount"), together with Interest.•The balance of all unforgiven
unpaid principal and accrued Interest shall be due and payable on the 30th anniversary date of this
Promissory Note.
2. InSereg &Le Except as herein provided, Interest shall be charged by the
Ciry on the portion of the Note Amount remaining unpaid from time to time, from the date of
the disbursement of the Note Amount until the date upon which the Note Amount Is repaid, at
the simple rate of five percent (5%) per annum.
3. Affordable housing Agreement This Promissory Note Is made and delivered
pursuant to and In Implementation of an Affordable Housing Agreement recorded on the
property as a covenant binding upon Borrower (the "Agreement"), a copy of which is on file as a
public record with the Holder and Is Incorporated herein by reference, and a Loan Agreement
between Borrower and City dated 3-16-94 . This Promissory Note Is attachment "B" to the
Loan Agreement.
4. A. Acceleration Except as otherwise provided herein, the whole of the Note
Amount, any interest accrued thereon, and all other payments due hereunder and under the
Agreement shall, at the option of the Holder, become due and be Immediately payable to the
Holder by the Borrower upon the occurrence of any one of the following events:
(1) Borrower sells, transfers or makes disposition of the Property in whole or In
part, Including, without limitation, the lease, exchange or rental of the Property.or
any Interest therein, whether voluntary or Involuntary;
(2) Borrower refinances any lien or encumbrances to which the pry Deed of
Trust Is subordinate for loan amount in excess of the then current loan balance
secured by such lien or encumbrance;
(3) Borrower falls to occupy the Pro ar ryas Borrower's principal residen`pursuant to the Loan Agreement or Is In breach or default of any other obligation
under the Agreement or violates the terms of the Affordable Housing Agreement
or Affordable Housing Covenant;
(4) The close of a probate estate following the death Cif Borrower (unless
Borrower is more than one person and one or more of the other people
comprising Borrower survive);
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7/1oandoc/cirypromnote/02/r 4/94
• �..+1
(5) Borrower defaults on this Promissory Note;
(6) Borrower defaults on the Agency Deed of Trust.
In the event that there Is a default In payment as scheduled herein or a default
under the terms of the Deed of Trust securing this Note, or a default of the Agreement or In any
other Instrument executed by Borrower or any guarantor in favor of the City, the City may at Its
election declare all amounts of the outstanding principal and accrued Interest thereon Immediately
due and payable.
S. 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-Walyer Failure to exercise any right the Holder may have or be entitled to,
In the event of any default hereunder, shall not constitute a waiver of such right or any other right
In the event of subsequent default.
8. Borrower's Waivers The Borrower and all guarantors and endorsers
hereof hereby severally waive certain requirements of the City. These are: a) to demand
payment of amounts due (known as "presentation for payment"), b) to give notice that amounts
due have not been paid (known as "notice of dishonor") and c) to obtain an official certification
of nonpayment (known as "protest"). Borrower consents that the Holder hereof may extend the
time of payment or otherwise modify the terms of payment of any part or the whole of the debt
evidenced by this Note, by agreement between the Holder and Borrower, and such consent shall
not after or diminish the ilabliity 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.
9. Collection Costs If any attorney Is engaged by the City to enforce or
construe any provision of this Note or the Deed of Trust, or If City Incurs any other expense by
virtue of collecting sums due to the City under this Note, as a consequence of any default or event
of default hereundere, with or without the fling 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
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Moandocldrypromnote/02/22/94
applicable to the principal owing hereunder as if such unpaid attorney fees and costs have been
added to the principal.
10. , ecuri QfNote This Note Is secured by a Deed of Trust (The "Deed of
Trust") of even date herewith executed by Borrower covering property located In Orange County,
State of California, together with the buildings and Improvements now or hereafter erected
thereon.
11. Maximum interest No provision or this Note or any Instrument securing
payment hereof or otherwise relating to the debt evidenced hereby shall require the payment or
permit the collection of Interest In excess of the maximum permitted by applicable law. If any
excess of interest In such respect Is herein or In such other Instrument provided for, or shall be
adjudicated to be so provided for herein or in any such Instrument, the provisions of this
paragraph shall govern, and neither Borrower or any Endorsers of this Note nor their respective
heirs, personal representatives, successors or assigns shall be obligated to pay the amount of such
Interest to the extent It Is In excess of the amount permitted by applicable law.
12. Business Purpose The undersigned warrants and represents that all funds
advanced under this Note shall be applied and are Intended solely for personal, family or
household purposes as set forth In the Agreement and not for any business or commercial
purposes.
13. Notice Any demand or notice to be made or given under the terms hereof
or any instrument now or hereafter securing this Note by the Holder to Borrower shad be effective
when mailed or delivered In the manner specified In the Deed of Trust.
14. Eayments_Deferred All interest and principal payments will be deferred so long
as the Borrower Is in compliance with the terms of this Note, the Affordable Housing Covenants
or Agreements recorded on the Property, the Deed of Trust and the Loan Agreement and uses
the Property as his personal primary residence.
IN WITNESS HEREOF, this instrument has been executed as of the date set forth below.
SIGNATORY
DATE:_
"Borro er"
DATE: By
"Borrower"
CITY OF HUNTINGTON BEACH
I ts• '�>ty.
APPROVED AS TO FORM: ,
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7/loandockitypromnote/02/14/94
RECEIVED
CITY CLERK
CITY OF
HUNTIMCTCk BEACH.CALIF.
PROMISSORY-NOTE AUS 6 336 PH '54
Property Address: 409 Utica Avenue D-37, Huntington Beach, California
MARCH 16 , 1994
1. Promise to Pay. TAM HOANG ("Borrower") promises to pay the
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body,
corporate and politic ("Holder," also referred to as "Agency"), at the office of the Agency in
Huntington Beach, California, or at such other place as the Holder may designate In writing, the
principal sum of Twenty-Three Thousand and no/100 Dollars ($23,000) (the "Note Amount"),
together with interest. The balance of all unforgiven unpaid principal and accrued Interest shall be
due and payable upon sale of the Property or upon occurrence of the other events listed In the
acceleration clause herein.
2. interest Rate Interest shall by charged by the Agency on the portion of
the Note Amount remaining unpaid from time to time, from the date of the disbursement of the
Note Amount until the date upon which the Note Amount Is repaid, at the simple rate of five
percent (5%) per annum. In the event that Borrower transfers the Property to a Buyer qualified
to participate in the Agency's Affordable Housing Loan Program and approved by the Agency
("Qualified Buyer"), all accrued Interest which would then have been due and payable if the
Borrower were In default will be paid on the date upon which escrow closes; however, no equity
share amount shall be due. Interest at the rate of five percent (5%) per annum will begin to
accrue as to the new Buyer on the remaining principal from the date upon which escrow closes
and ail interest thereafter accrued will be due and payable at the same time the Note becomes due
and payable, unless the new qualified Buyer assumes the Loan.
3. Affordable H, ousing Agreement This Promissory Note Is made and delivered
pursuant to and In implementation of an Affordable Housing Agreement recorded on the
property as a covenant binding upon Borrower (the "Agreement"), a copy of which Is on file as a
public record with the Holder and is Incorporated herein by reference, and a Loan Agreement
between Borrower and Agency dated 3-16-94 . This Promissory Note Is attachment "B" to the
Loan Agreement.
4. Acceleration The whole of the Note Amount, any interest accrued thereon, the
equity share amount, and all other payments due hereunder and under the Agreement shall, at
the option of the Holder, become due and be Immediately payable to the Holder by the Borrower
upon the occurrence of any one of the following events:
(a) Unless sale is made to a qualified Buyer who assumes the Loan, Borrower
sells, transfers or makes disposition of the Property In whole or In part, Including,
without ilmltation, the tease, exchange or rental of the Property or any interest
therein, whether voluntary or Involuntary;
(b) Borrower refinances any lien or encumbrances to which the Agency Deed
of Trust Is subordinate for loan amount In excess of the then current loan balance
secured by such lien or encumbrance;
1
7/loandoc/agencypromnote/02/22/94
(c) Borrower fails to occupy the Property as Borrower's principal residence
pursuant to the Loan Agreement or Is in breach or default of any other obligation
under the Agreement or violates the terms of the Affordable Housing Agreement
(Affordable Housing Covenant);
(d) The close of a probate estate following the death of Borrower (unless
Borrower Is more than one person and one or more of the other people
comprising Borrower survive);
(e) Borrower defaults on this Promissory Note;
(0 Borrower defaults on the Agency Deed of Trust.
In the event that there Is a default in payment as scheduled herein or a default
under the terms of the Deed or Trust securing this Note, or a default of the Agreement or in any
other Instrument executed by Borrower or any guarantor In favor of the Agency, the Agency may
at Its election declare all amounts of the outstanding principal and accrued interest thereon
Immediately due and payable.
5. Application of Payments Any sums received hereunder may, at the options of
Holder hereof, be applied In any order to the payment of costs, Interest, or principal due
hereunder.
6. Prepayment Privilege is reserved to make prepayments or 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. orrower�s Waivers The Borrower and all guarantors and endorsers
hereof hereby severalty walve certain requirements of the Agency. These are: a) to demand
payment of amounts due (known as "presentation for payment"), b) to give notice that amounts
due have not been paid (known as "notice of dishonor") and c) to obtain an officlal cerdricadon
of nonpayment (known as "protest"). Borrower consents that the Holder hereof may extend the
time of payment or otherwise modify the terms of payment of any part or the whole of the debt
evidenced by this Note, by agreement between the Holder and Borrower, and such consent shall
not alter or diminish the liability of any person or the enforceability of this Note. Each and every
parry 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.
9. Collecdga Costs If any attorney Is engaged by the Agency to enforce or
construe any provision of this Note or the Deed of Trust, or if Agency Incurs any other expense
by virtue of collecting sums due to the Agency under this Note, as a consequence of any default
or event of default hereunder, with or without the filing of any legal action or proceeding, then
Borrower shall immediately pay upon demand all attorney fees and all other costs Incurred by the
2
7/foandoc/atencypromnote/02/22/94
Agency, together with Interest thereon from the date of such demand until paid at the rate of
Interest applicable to the principal owing hereunder as If such unpaid attorney fees and costs have
been added to the principal.
10. Security of Note This Note is secured by a Deed of Trust (The "Deed of
Trust") of even date herewith executed by Borrower covering property located In Orange County,
State of California, together with the buildings and Improvements now or hereafter erected
thereon.
11. Maxlmum interest No provision of this Note or any Instrument securing
payment hereof or otherwise relating to the debt evidenced hereby shall require the payment or
permit the collection of interest In excess of the maximum permitted by applicable law. If any
excess of Interest In such respect Is herein or In such other Instrument provided for, or shall be
adjudicated to be so provided for herein or In any such Instrument, the provisions of this
paragraph shall govern, and neither Borrower or any endorsers of this Note nor their respective
heirs, personal representatives, successors or assigns shall be obligated to pay the amount of such
Interest to the extent It Is in excess of the amount permitted by applicable law.
12. BusinesS Pumose The undersigned warrants and represents that all funds
advanced under this Note shall be applied and are Intended solely for personal, family or
household purposes as set forth In the Agreement and not for any business or commercial
purposes.
13. Node. Any demand or notice to be made or given under the terms hereof
or any instrument now or hereafter securing this Note by the Holder to Borrower shall be effective
when mailed or delivered in the manner specified in the Deed of Trust.
14. Payme= Deferred All Interest and principal payments will be deferred so long
as the Borrower is In compliance with the terms of this Note, the Affordable Housing Covenants
or Agreements recorded on the Property, the Deed of Trust and the Loan Agreement.
3
7/lo3ndoc/agencypromnote/02/22/94
�I
IN WITNESS HEREOF, this instrument has been executed as of the date set forth below.
SIGNATORY
DATE: '3 _ _ 1j By- - Tea —
"BorroW "
DATE: By
"Borrovier"
REDEVELOPMENT AGENCY OF THE
OF HUNTINGT BEAC
By
I .�. aL�a
APPROVED AS TO FORM:
�G r�
4
7/loandoc/a¢encypromno[e/02/14/94
AJ� City of Huntington Beach
2000 MAIN STREET CALIFORNIA92648
x, DEPARTMENT OF ECONOMIC DEVELOPMENT
Office of the Director 536-5582
Housing 536-5542
Redevelopment 536.5582
Fax (714)375-5087
March 16, 1994
Orange Coast Title
14320 Firestone Boulevard
Suite 300
La Mirada, California 90638
Attn: Carla
Subject: Loan Documents—Tam Iloang
This letter is to confirm that the Redevelopment Agency of the City of Huntington Beach is the
Second Trust Deed holder and the City of Huntington Beach is the Third Trust Deed holder for
property located at 409 Utica Avenue#1337, Huntington Beach, California, being purchased by
Tam Hoang.
Thank you for your assistance. If you have any further questions please calf.
Sincerely,
St hen V. K e
Prat ag
S VK jar
n
Uc
CRVI*"► r^,J?TITLE G,r--. �lLt1 �' �� ?
N i
RECORDING REQUESTED BY }
AND WHEN RECORDED RETURN TO: ) £acorbd is Q;ficial Reccrds
Ct rar-.2 cou,4Y1 C-31; ^t:a
The Redevelopment Agency of the ) Lee A. Fraiiil,.. Cmaitr Fec"r'i='
! of. 22 City of Huntington Beach Fee"
Ta;.
2000 Main Street )
Huntington Beach, California 92648 ) �
Attn: Agency Clerk ) OR/����'�5
Cus. bot-4c n V.P191
[Spxe Above This Line For Recorder's lase.] r-De PA yo,*P
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 16T,i day of MAR• , 19934by and among
TAM HOANG whose address Is 409 Utica Avenue D-37 , (the
"Trustor") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "Trustee")
and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public
body corporate and politic (the "BENEFICIARY"), whose address Is 2000 Main Street,
Huntington Beach, California 92648.
WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee,
In Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange,
State of California, described legally In the Legal Description attached hereto as Exhibit "A" and
Incorporated herein.
TOGETHER WITH: (a) ail buildings, improvements and fixtures, now or hereafter
placed thereon, It being understood and agreed that all classes of property attached or unattached
used in connection herewith shall be deemed fixtures, (b) rents, Issues and profits thereof, (c) any
water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money
payable on the purchase price of sald 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 celiect and apply such rents, issues a
profits, and all sums of money payable on the purchase price of said property secured by a Rn
thereon or payable under any agreement. ca Cb sm
A. FOR THE PURPOSE OF SECURING: s�Kn
w w.�nrn
1. Payment of the sum of Twenty-Three Thousand 6 no/1o0---with Interim
thereon according to the terms of a Promissory Note of even date herewith, made by TrustW
payable to the order of the Beneficiary and extensions or renewals thereof. -r
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
71DEEDRENT102/10194/B 1
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
MARCH 16 , 19939and 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 absofute 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, TRLISTOR 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 Iabor 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 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
ADEEDREN'R02/10/94/8 2
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 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
7\DEEDRENT\02/10/94/B 3
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 fall 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.
S. 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 parry
defendant or otherwise irrespective of whether the Interest of Beneficlary or Trustee In such
property Is directly questioned by such action, Including any action for the condemnation or
partition of said premises, and In any suit brought by Beneficiary to foreclose this Deed of Trust.
6. To pay immediately and without demand, all sums expended under the terms of
this Deed of Trust by Beneficiary or Trustee, with Interest from the date of expenditure at the rate
which the principal obligation secured hereby bears at the time such payment Is made, and the
repayment of such sums shall be secured hereby.
7. That, should the Trustor or any successor In interest to Trustor In such property
drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon
substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate
said property, or any parry 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
7%DEEDRENT101/10/94/S 4
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) Jain 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
lssuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless
directed in such request to retain them).
13. That as additional security, Trustor Irrevocably assigns to Agency the rents, issues,
and profits of the property affected by this Trust Deed for the purposes and upon the terms and
conditions set forth below. This assignment shall not Impose upon Agency any duty to produce
rents from the property affected by this Trust Deed, or cause Agency to be (a) "mortgages In
possession" for any purpose; (b) responsible for performing any of the obligations of the lessor
under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any
dangerous or defective condition of the property affected by this Trust Deed, or for any negligence
In the management, upkeep, or control of such rights to rents, Issues and profits Is not contingent
upon, and may be exercised without possession of, the property affected by this Trust Deed.
71DEEDREHT102/10/94/B 5
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, collecdcn and reasonable attorneys' fees, when
received by Beneficiary, shall be applied in reduction of the Indebtedness secured hereby, from
time to time, In such order as Beneficiary may determine. Nothing contained herein, nor the
exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by
Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination
of the lien or charge of this Deed of Trust to, any such tenancy, lease or option.
14. That If the security of this Deed of Trust Is a leasehold estate, the Trustor agrees
that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b)
Trustor shall not amend, change or modify his leasehold Interest, or the Lease, or agree to do so,
without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary
regarding any notice, request or demand received by him from the lessor under the Lease and
promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any
of the Indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise
consent thereto In writing, the leasehold estate shall not merge with the fee title but shall always be
kept separate and distinct, notwithstanding the union of said estates In any party; (e) Trustor agrees
that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants,
agreements, terms, conditions and provisions under any lease affecting the premises and to neither
7\DEEDRENT102/10/94/B 6
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 safe of written
notice of default and of election to cause to be sold said property, which notice Trustee shall cause
to be fled 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 safe 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 safe).
After deducting all costs, fees and expenses of Trustee, and of this Trust, Including cost of evidence
of title In connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all
sums expended under the terms hereof, not then repaid, with accrued interest at the rate then
payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and,
If there are any proceeds remaining, shall distribute them to the person or persons legally entitled
thereto.
16. To waive, to the fullest extent permissible by law, the right to plead any statute of
limitations as a defense to any demand secured hereby.
17. That Beneficiary may, from time to time, by Instrument in wri[fng, 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
71DEEDRENT102/10/94/B 7
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 change,
not exceeding the maximum amount which is permitted by law at the time the statement is
furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to
Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust,
including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured
hereby in connection with the transfer of said property, or releasing an existing policy of fire
insurance or other casualty insurance held by Beneficiary and replacing the same with another such
policy.
21. That Trustee accepts this Trust when this Deed of Trust, duly executed and
acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any
party hereto of pending sale under any other Deed of Trust or of any action or proceeding in
which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.
22. That should this Deed of Trust or any Note secured hereby provide any fee for
prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said
indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust
even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any
agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured
hereby immediately due and payable.
23. That Trustor has made certain representations and disclosures in order to induce
Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust
secures, and in the event that Trustor has made any material misrepresentation or failed to disclose
7\DEEDRENT\02/10/94/B 8
any material fact, Beneficiary at Its option and without notice, shall have the right to declare the
Indebtedness secured hereby, Irrespective of the maturity date specified In such Note or Notes,
Immediately due and payable, and on failure to so pay Beneficiary may make a written declaration
of default and demand for sale as In paragraph No. 15 herein set forth. Trustee, upon
presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by
Trustor under this paragraph, Is authorized to accept as true and conclusive all facts and statements
therein, and to act thereon hereunder.
Any notice which any parry hereto may desire or be required to give to the other parry
s shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his
address herelnabove set forth or to the Beneficiary at his office or at such other place as such
parties hereto may designate In writing.
THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default
and of any notice of sale hereunder be mailed to him at his address hereinbefore set forth.
TRUSTEE: TRUSTOR:
THE CITY OF HUNTINGTON BEACH
B .,�._. By.
y:
Tide: :bit. By:
By:
BENEFICIARY:
THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH
Title:
APPROVED AS TO FORM:
7A nse! Azl�� O'
ADEEDRENT102/10/94/B 9
CALIFORNIA ALL-PURPOSE ArKNOWLEDGMENT "O.SI93
State of. !f�:`�r"& ,
OPTIONAL. SECTION
CAPACITY CLAIMED BY SIGNER
County Of 'l"S /A� mouth statute does root mqui►e the notary to
1 _ till in the data below,doing so may ptoYe
1 I ! kn+aluable to persons relyirq on the doameM
On before me, 'r�� ��• �F '`
DATE /J NA►AE T17LE OF OFFICER•E.G..'JANE DOE` OTARY PUBLIC ❑INDIVIDLII�L
rl % 1i i / CORPORATE OFFICER(S)
personally appeared ` '{ f�! 1 NAAe��s�s, TITLE s
ti
I personally known to me-OR-[]proved-to-roe-on-the basis of satisfactory evidence a PARTNER(S) ❑LIMITED
to be the person(o} whose name( is/aFe []GENERAL
subscribed to the within instrument and ac- ❑ATTORNEWN-FACT
knowledged to me that Ii':�/sheAhey-executed ❑TRUSTEE(S)
CffK:ZAL SM the same in h-islherltheir authorized Q GUARDIAWCONSERVATOR
JUDY RK >•tARDS
:i Nokwv Fie-Coreronia capacity{issy. and that by t►+slher/their [3OTHER:
01ANGE COUNTY signature(s) on the instrument the person(sy,
• t+RI/Cort>Rtm*n Eg*a or the entity upon behalf of which the
Navwnbw 3• 1995 person(s)acted, executed the instrument.
SIGNER IS REPRESENTING:
WITNESS my hand and official seal. NAME OFPER50'ts)°F`ENT`TYI%E$)
}
STATE OF CALIFORNIA )ss.
COURT`!OF
On /q9 before me, ��✓ 1 .r1 F
personally appeared
f-
prr_�nallyl�rtsysrrte-rt+e(or proved
Box 71 f!4•Canoga Park,CA 91309-71 f34
a to-no on the basis of satisfactory evidence)to be the personVwhose nameVis/wo-subscribed to the within
kinEtrument and acknowledged to me thatAelshe/they executed the same in hi-AerltheCr4uthorixed capacity(iesr
No.V23
and th, hrstherAheic signature n the instrument the person(Wor the entity upon behalf of which the
OPTIONAL SECTim fl��
l person d,execu the i rument. �=97W8KT ITY CLAIMED BY SINNER
r
-- Matte does not require the Notary to
WITNE S y h lal seal.40 1 IOt� , to re doingn so to d mowt
R Mff Ootnm.Expires Mar.Z2,1996 �'"'o
Si,tnatur ADUAL
cnvs area for oflictal notarial seaq PORATE OFFICU(a7
%2—etf—IGCf 'fl
TITLEISI
,.,. .........,, a ry Ield-vrs-Li proved-to-me-on the basis of satisfactory-evidence— ❑PARTNI=Fits) ❑LIMITED
to be the person(s-) whose name(s) is/are- ❑ GENERAL
subscribed to the within instrument and ac• ❑ATTORNEWN-FACT
knowledged to me that he/sheAhey-executed []TRUSTEE(S)
L OS the same in hislheHfhe�fr authorized
BUDG ❑tsUARDIAN'CONSERVATOR
Nor tLbic-cc�romn capacity(+t�s}, and that by hislherl�herr
uGE COON l• signature(s}on the instrument the person(s), �oTHER:
NM Commission Egwes or the entity upon behalf of which the
Norerstber 3. 995persons}acted,executed the instrument.
SIGNER IS REPRESENTING:
WITNESS my hand and o`iicial seal. NAW of PERSOfiISIOR ENTYTY(IES)
NATURE OF NOTARY
OPTIONAL. SECTION
THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT
THE DOCUMENT DESCRIBED AT RIGHT: /
�lUMBER OF PAGES DATE OF DOCUMENT
Though the•data requested here is not required by taw,
it could prerer+t traudutern reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE
ak�Gzn�rt s G�✓cn ra
G 71S D1Jk�-�A/ 9�P�f 9
RIQER TO REDEVELOPMENT AGENCY QE THE FDt A0V orF,
CITY OF HUNTINGTON BEACH DEED OF TRUS
This rider to the Redevelopment Agency of the City of Huntington Beach Deed of Trust
which was executed by TAM HOANG (Trustor for the property located at 409 Utica Avenue,
D-37) is subject to the terns and conditions of that certain Loan Agreement entered Into by and
between Beneficiary and Trustor dated MARCH 16 , 19 94 . to which this rider is
attached as Exhibit "C" and Incorporated by reference (the "Loan Agreement"), pursuant to which
Beneficiary has agreed to loan Trustor the sum of Twenty-Three Thousand and no/100 Dollars
($23,000.00) (the "Loan Amount") with simple Interest to accrue at five percent (5%) yearly.
All terms in this Rider to Redevelopment Agency of the City of Huntington Beach Deed of Trust,
If not separately defined herein, shall have the meanings as defined In the Loan Agreement.
]. Acceleration/Due--on Sale.
Except as provided herein, the Loan and all Interest accrued thereon shall be due
and payable upon (1) sale or transfer to a Buyer not qualified to participate in the Agency's
Affordable Housing Loan Program or not approved by the Agency ("Qualified Buyer"), or other
disposition of the Property, Including, without limitation, lease, exchange or rent of any part of the
Property, (ii) the refinancing of the First Mortgage for a loan amount In excess of the then current
loan balance or for any authorization period longer than the Loan secured by the First Mortgage,
or (iv) Trustor being in material default of any other obligation contained in this Agreement or any
provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the
Property, or (v) Trustor violates any condition of the Deed of Trust or Promissory Note, or (VI)
the death of Trustor (unless the Trustor's household, occupying the Property, contains more than
one qualified participant In the affordable housing program pursuant to which this Loan is being
made, and at least one qualified participant survives). At the request of Trustor, the Agency may,
In Its sole discretion, extend the term of the Loan.
MandWncyrldr/02/22/94
2, Qccupancy Sjaj3daWs. The Property shall be used as the personal residence of
Trustor and Trustor's immediate family and for no other purpose. Trustor shall not enter Into an
agreement for the rental or lease of the Property.
3. '
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 to 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 prlorlry over this Deed of Trust, appearing In court,
paying reasonable attorney's fees and entering on the Property to make repairs. Although
Beneficiary may take action under this Section, Beneficiary does not have to do so.
B. Any amount disbursed by Beneficiary under this section, shall become
additional debt of Trustor secured by this Deed of Trust. Unless Trustor and Beneficlary agree to
other terms of payment, these amounts shall bear Interest from the date of disbursement at the
highest rate permitted by law and shall be payable, with Interest, upon notice from Beneficiary to
Trustor requesting payment.
4. Equity Share, In the event that the Agency Loan becomes due and payable prior
to the thirtieth anniversary of the date of the loan Agreement, Trustor shall pay to Beneficiary
concurrent with the principal and accrued Interest, an amount equal to the "Equity Share
Amount." The Equity Share Amount shall be determined by applying a percentage factor (the
"Applicable Factor") to the difference between the Safes Price and the Purchase Price (defined
below) as follows:
1. Prior to fifth anniversary fifty percent
of the Agency Deed of Trust: (50%)
2
7Ro3ndochatyrldr/02/22/94
2. After fifth anniversary but forty-eight percent
prior to sixth anniversary: (48%)
3. After sixth anniversary but forty-six percent
prior to seventh anniversary: (46%)
4. After seventh anniversary but forty-four percent
prior to eighth anniversary: (44%)
5. After eighth anniversary but forty-two percent
prior to ninth anniversary: (42%)
6. After ninth anniversary but forty percent (40%)
prior to tenth anniversary:
7. After tenth anniversary but thirty-eight percent
prior to eleventh anniversary: (38%)
8. After eleventh anniversary but thirty-six percent
prior to twelfth anniversary: (36%)
9. After twelfth anniversary but thirty-four percent
prior to thirteenth anniversary: (34%)
10. After thirteenth anniversary but thirty-two percent
prior to fourteenth anniversary: (32%)
11. After fourteenth anniversary but thirty percent (30%)
prior to fifteenth anniversary:
12. After fifteenth anniversary but twenty-eight percent
prior to sixteenth anniversary: (28%)
13. After sixteenth anniversary but twenty-six percent
prior to seventeenth anniversary: (26%)
14. After seventeenth anniversary but twenty-four percent
prior to eighteenth anniversary: (24%)
3
Morkdodaecyddr/02/2 2/94
15. After eighteenth anniversary but twenty-two percent
prior to nineteenth anniversary: (22%)
16. After nineteenth anniversary but twenty percent (20%)
prior to twentieth anniversary:
17. After twentieth anniversary but eighteen percent
prior to twenty-first anniversary: (18%)
18. After twenry-first anniversary but sixteen percent (16%)
prior to twenty-second anniversary:
14. After twenty-second anniversary but fourteen percent
prior to twenty-third anniversary: (14%)
20. After twenty-third anniversary but twelve percent (12%)
prior to twenty-fourth anniversary:
21. After twenty-fourth anniversary but ten percent (10%)
prior to twenty-fifth anniversary:
22. After twenty-ffth anniversary but eight percent (8%)
prior to twenty-sixth anniversary:
23. After twenty-sixth anniversary but six percent (6%)
prior to twenty-seventh anniversary:
24. After twenty-seventh anniversary but four percent (4%)
prior to twenty-eighth anniversary:
25. After twenty-eighth anniversary but two percent (2%)
prior to twenty-ninth anniversary:
26. After twenty-ninth anniversary but one percent (1%)
prior to thirtieth anniversary:
27. After thirtieth anniversary: zero percent (0015)
4
7Aoan doc/igcyridr/02/2 2/94
The "Purchase Price" Is the original purchase price paid by the Participant to the Seller for
Seller's interest In the Property, exclusive of escrow fees, tide Insurance costs, broker's commission,
loan fees or any other closing or transaction costs.
The "Sales Price" is the price to be paid by the buyer of the Property (the "Buyer") to
Participant for Participant's interest In the Property, exclusive of escrow fees, titfe Insurance costs,
broker's commissions, loan fees or any other closing or transaction costs.
In the event of sale of the Property and at the election of the Agency, the Agency may
appoint a certified, Independent appraiser to conduct any appraisal of the Property, at Participant's
expense to assist the Agency In determining if the Safes Price is at or near the fair market value of
the Property at such time. If the Sales Price Is determined by the appraisal to be three percent
(3%) or more below the fair market value of the Property as estimated to said appraisal, then the
"Sales Price" for purposes of determining the Equity Share Amount shall be the fair market value
of the Property established to said appraisal.
PARTICIPANT ACKNOWLEDGES AND AGREES THAT IN THE EVENT THAT THE
LOAN WHICH THE DEED OF TRUST SECURES BECOMES DUE AND PAYABLE PRIOR TO
THE 30TH ANNIVERSARY OF THE LOAN AGREEMENT, PARTICIPANT SHALL PAY TO
AGENCY AN EQUITY SHARE AMOUNT EQUAL TO A PERCENTAGE SHARE OF THE
APPRECIATION OF THE PROPERTY AS CALCULATED PURSUANT TO THIS SECTION.
THE AGENCY ACKNOWLEDGES AND AGREES THAT PARTICIPANT SHALL ONLY PAY
THE EQUITY SHARE AMOUNT TO THE AGENCY IF, AND ONLY IF, PARTICIPANT FAILS
TO ABIDE BY COVENANTS OR OTHERWISE FAILS TO COMPLY WITH THE PROVISIONS
OF THIS AGREEMENT OR PARTICIPANT SELLS THE PROPERTY TO A BUYER NOT
QUALIFIED BY THE AGENCY IN A C R CE WITH PARAGRAPH "C" BELOW.
'7�
PARTICiPANTITRU STOP, AGENCY
S
7/1oan40c/j¢cyr dr/Q2/22/94
The value of all capital Improvements to the Property made while Participant owned and
occupied the Property shall be deducted from the Sales Price when calculating the Equity Share
Amount, if Participant complies with the following:
The costs incurred by the Participant for capital Improvements shall be deducted
from the Sales Price only if Participant submits the following to the Agency: (1)
an Itemized list of the improvements, (11) reliable proof of completion of the
improvements (as evidenced e.g., by final building permits or certificate of
completion), and (iff) reliable evidence of the cost of the Improvements and
that Participant paid those costs (as evidenced e.g., by an Itemized Invoice or
receipt).
Notwithstanding the foregoing, Participant's obligation to pay the Equity Share Amount is
subject to a superior right of Participant, upon termination of the Agency Loan, to receive
repayment of money paid by the Participant without Agency assistance for purchase of the
Property (including down payment, Installment payments of mortgage principal pursuant to the
First Lien, escrow fees, transfer taxes, recording fees, brokerage commissions, and similar costs
actually paid by the Participant) and money paid by the Participant for capital Improvements to the
Property.
5. New Loan to QualifiedDuver. Notwithstanding the provisions herein above,
If the Property Is sold by the Trustor to a Buyer of low or moderate income, as defined by Section
50093 of the California Health and Safgty Cod , or any provision of law which may be enacted to
the future, replacing Section 50093 or the law which defines "low or moderate" Income for the
purposes of affordable housing, and approved by Agency, ("Eligible Person or Family") and the
Sales Price does not exceed an "affordable housing cost," as defined by Section 50052.5 of the
California-Heaith-and,.S&W Code, to such Buyer, and the Buyer assumes the Trustor's loan, then
no Equity Share Amount is due to the Beneficlary upcn such sale. In order to verify the Buyer's
status as an Eligible Person or Family, Trustor shall submit to the Beneficiary, together with the
6
Moandoc/a2cyddr/02/2 2194
notice of proposed sale pursuant to the Loan Agreement, the Identity of the proposed Buyer and
adequate Information evidencing the Income of the proposed Buyer. Said income information shall
Include original or true copies of pay stubs, Income tax records or other financial documents to
order that the Beneficiary may determine and verify the household income of the proposed Buyer
to determine Eligible Person or Family status and whether the Property Is available to such Buyer at
affordable housing cost. if the Beneficiary is unable to verify the Buyer's income as provided
herein, then the Buyer's income shall be deemed to exceed the maximum allowable income limit
for Eligible Persons and Families and the Equity Share Amount shall be due and payable concurrent
with the repayment of the Note Amount plus Interest. In the event that sale or transfer Is made to
an Eligible Person or Family, Interest which has accrued at the time of the safe (upon close of
escrow) shall be due and payable.
G. Subordination. The Beneficiary has found and declared that an economically
feasible method of financing, refinancing or assisting first time homebuyers pursuant to the Program
on substantially comparable terms and conditions without subordination Is not reasonably available.
Any first lien on the Property ("First Lien") held by an Institutional lender or
Investor (the "Lender") shall be prior and superior to the Declaration and this Deed of Trust.
Thus, In the event of a foreclosure or deed In lieu of foreclosure of the First Deed of Trust, any
provisions herein or any provisions In any other collateral agreement restricting the use of the
Property to low or moderate income households or otherwise restricting the Trustor's ability to sell
the Property shall have no further force or effect on subsequent owners or purchasers of the
Property. Any person, Including his successors or assigns (other than the Trustor or a related
entity of the Trvstor), receiving title to the Property through a foreclosure or deed in lieu of
foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such
restrictlons.
7. Obligation to RefrainffomDlscrlminatlQn. There shall be no discrimination
against or segregation of any person, or group of persons, on account of race, color, creed,
religion, sex, marital status, national origin, or ancestry, In the sale, lease, sublease, transfer, use,
7
Moandoc/agcyr1dr/02/22/9 4
I
f occupancy, tenure, or enjoyment of the Property, nor shall the Beneficiary Itself or any person
claiming under or through It establish or permit any such practice or practices of discrimination or
{ segregation with reference to the selection, location, number, use or occupancy of tenants, lessees,
subtenants, sublessees, or vendees of the City or any portion thereof.
i Trustor agrees It shall Instruct the escrow holder for the acquisition of the Property
by the Trustor that the order of recording In the escrow for the purchase of the Property by the
Trustor shall occur as follows: 1) the First Lien; 2) the Declaration of Covenants, Conditions ar
Restrictions for Affordable Housing; and 3) the Agency Deed of Trust.
The Trustor shall cause a Request for Notice to be recorded on the Property
subsequent to the recordation of the First and Second Liens, deeds of trust, or mortgages,
requesting a statutory notice of default as set for the In the California.Ctvll Code.
i TRUSTOR'S IGNATURE
k
i TRUSTOR'S SIGNATURE
CITY OF HUNTIINGTOON BEACH
--I
Its:
REDEVELOPMENT AGENCY OF APPROVED AS TO FORM:
THE CITY OF HUNTINGTON BEACH
Agency Counsel
Its-
8
7rlomaocr�gcyr�d�roxr22ly�
ALIFoRNIrA ALL-PURPOSE ACK O"`LEpG ENT OPTIONAi.SECTION
t.J CAPACITY CLAIMED BY SIGNER
State of T"411 statute does rot w we me Notary to
• c 11u In the data below,doing so may prove
County of �
•invatuabte ID persons retying on the document
INDIW)UAL
before me,
j On 9A NA M OF OF •E-G.. I +E DOE.NOTARv 8LtC' C P RATE OFFiCEROt
lTLtc{S)
personally appeared NAMEtS,OF s*NE IS) PARTN R(S) LIMITED
GENERAL
personally known to me-OR-❑ whose nameW Isla ATTORNEY-IN•FACT
to be the person�}-
subscribed to the within instrument ar executed
❑TRUSTSE(S)
knowledged to me that-4aeishe/t ey �•-�
OFFICIAL SQL the same in #43/herltht+r authorized [s GUARDIAN'CONSERVATOR
JUDY p1�S p y�• #t +her/t1ei•i`-
Noroly rusc-canrorNa ca acit >�, and that by OTHER:
ORANGE CX"W signature�o on the instrument the pie sonW,
S. 1995 or the ent(ted Pap behalf of which-the
persons#ac IS REPRESENTING'
RSONt51 OR ENT1TYl5E5)
)SS.
FORNIA
gT4T�OF CAL1
COUNV OF
�• , �fQI Detore the� b
On a (or proved r
petsonaUY appeared
ts�ace subscribed to the within
I•- �y whose namel�•
to be the person ci (ice.
is at satislactorY evidence) m�mer�,�i�uthorixed caps tY
tc me on the Dos executed the same behalf ts1 vyhlet►the
a � ed to me�'at�'she'� or the entity u�^ 7184.Canoga park CA 9f 3t39-7f t3•t
irstrumentand acknowt 91 natureL�on the instrument the person(6f
et'tt,ea s 9 9 j
u and tt+at by r..
c3c64
a tnstrument. o.5193
Te�onj9j at ted.executes 1 �es 22,1 ZSSSSSS
+ al Q IrloxAt. sEciiflN* �
wtTN= Y 'CLAIMED BY SIGNER
for 0,cial notarial seat)
tary to
Signature (iris area __a�0 doi rel reng so may prove
irr&uable to person reying on the document.
C INDIVIDUAL
.. w rn.k►S-E.Qt.,'�tX•E,NOTM{Y PUBLIC-
WCORPO ATE OFFICERMr
1—oovrratty appeared ,
NAMEtSI OF SIGN HjSi ,TLEIS1
personally known to me-OR-❑ 0 PARTNER(S) Q LIMITED
to be the person(.$)-whose name f&3 is4re- [�GENERAL
subscribed to the within instrument and ac. ❑ATTOFira>;Y•N-FACT
knowledged to me that he;&ha4WW-executed ❑TRUSTEE(s)
C* S the same in her/lhe4i,authorized IAN,
GUARD 'CONSERVATOR
U RK L*Naftxycapacity(i , and that by hWher/t#ek �OTH7=R:
0014MCOlir " signature(s�on the instrument the persons}
8+N or the entity upon behalf of which the
S. person(& acted,executed the instrument,
SIGNER IS REPRESENTING:
WITNESS my hand and off.cial seal. NAME OF RERSON{S10R ENT,TY11ES)
S TURF OF NOTAPY
OPTIONAL. SECTION
THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT
THE DOCUMENT DESCRIBED AT RIGHT:
NUMBER OF PAGES DATE O UMENT
rhouph the dEta requested here Is not required by law,
could prevert fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE
WE IA ND RBFMW TO IN THIS REPO IS STILIIt'L D IN THE STATE OF CNWTaNM,
COOMY OF ORANGE AND IS EESaU= AS F10110AS:
PARCEL 1: UNIT NO. 37, CaZISTING OF CERTAIN AIRSPACE AND SURFACE ELEj 3V , AS
Siam AMID DESCRMED IN THE CaIDC[vinglW PLAN („PLAN„) FOR BRISAS DEL WA LOCATED
ON LC7T 1 OF TRACT 14757, AS SMU ON A SUBDIVISICN MAP RECCRDED ON SEPIE vIIER, 1,
1993, IN BOOK 701, PAGES 42 THROUGH 43, INCLSIVE OF MISC£LLANEOM MAPS, IN THE
OFFICE OF THE ORANGE COUNTY RECORDER ("OFFICIAL RECORDS") , VMCH PLAN VIAS
RECORDED CN SEPMMBER 15, 1993, AS INSTRUVE TT NO. 93-0621742, OF OFFICIAL
RECORDS, CALIM- RNIA.
PAFM, 2: AN UNDIVIDED ONE FORTY-FOURTH (1/44) FEE SDNDLE INTEREST AS A TII ANT
IN WTI C T IN AMID TO NODULE B SHOT ON =- PLAN AND DEFIM IN THE DECLARATION
REMRRF,D TO BELOW AS THE " I AREA".
EXCEPT 'IMZEFRC Ul ALL OIL, GAS, MIlORALS AM an-MR HYDROCARBON SUBSTANCES LY NG
BE101 A DEPTH OF 500 FEET WITHOUT ANY RIGTr TO EgIER. UPON THE SURFACE OR rnE
SUASURFACE OF SAID LAND ABOVE A DEPM OF 500 FEET, AS PROVIDED IN DNSMWENM OF
RECORD.
PAP.CEL, 3: NL'NEXC LUSIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, EVJCPZF N-r,
DRIB, ENUMAUMU, SUPPORT, KUNIEWCE, R:EPAIRS AND FOR C MER, PURPOSES, ALL
AS MAY BE -%EM IN THE PLAN, AND AS ARE DES RIELE-D IN =- DECLARATION.
PAKEL, 4: EXCLDJSIVE FAST MEM APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED
ABOVE FOR USE FOR PARKING PURPOSES DESCRIBED AS EXCLLISIVE USE AREAS IN THE
DEMVATICN, C1VER PORTIONS OF LOT 1 OF TRAM"T 14757 SHa-N AND ASSMEZ) IN THE.
PLAN.
PARCEL 5: AN EXCLUSIVE EASEMTT APPLI IE= TO PARCELS ND. 1 AIM W. 2 DESCRIBED
ABOVE, FOR USE FOR PATIO, EAL NY, AND FIRE: ESCAPE STAIRCASE PURPOSES DESCRIBED
AS EX=IVE USE AREAS IN 'M DECLARATION, AS APPLICABLE, OVER PORTICNS OF I= 1
OF TRACT 14757 AS SEB XN, ASSIGIED AND DE'SCR=- IN THE PLAN.
6DD II �+ ^j
4/(P1nA4wtt 5 [PAVLV
"1Ui C�?�yi!`�f;TtE CrQ ?o 4;k ZzX4n
RECORDING REQUESTED BY ) �� �`' 6 t187
AND WHEN RECORDED RETURN TO: ) I `" �`� 022 0r+ r+N
VY Vrr i .
The City of Huntington Beach ) of Craws C01!4 yr Caiifor,ia
2000 Main Street ) Lee P. i raaw„ t'.urty fia. .4rcr
rd-z
Huntington Beach, California 92648 } pa,e 1 ei 1t Fees: f
Attn: City Clerk ) Tat-,,. #
ISpace Above This Line For Recorders Use.]
This document Is exempt from
recording fees pursuant to �--
Government Code Section 6103. 'cr
DEED OF TRUST WITH ASSIGNMENTS OF RENTS
THIS DEED OF TRUST 1S made this 116THdayofmAR, 2 993IF by and among
TALK HOAUG ,whose address u 4C9 utica_Ave, p-37 _� (the
"Trustor") and THE REDEVELOPMENT AGENCY OF.THE CITY OF HUNTINGTON BEACH,
a public body corporate and politic (the "Trustee") and THE CITY OF HUNTINGTON BEACH,
a municipal corporation (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington
Beach, California 92648.
WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee,
In Trust, with power of Sale, that property In the city of Huntington Beach, County of Orange,
State of California, described legally In the Legal Description attached hereto as Exhibit "A" and
Incorporated herein.
TOGETHER WITH: (a) all buildings, Improvements and &tures, now or hereafter
placed thereon, it being understood and agreed that all classes of property attached or unattached
used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any
water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money
payable on the purchase puce 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 114g C
thereon or payable under any agreement.
A. FOR THE PURPOSE OF SECURING: o
& 50/100w 4 in
Six Thousand One Hundred Fort
I. Payment of the sum of Y �"�►avitf► Intere�; Q
thereon according to the terms of a Promissory Note of even date herewith, made by TrustoLn
payable to the order of the Beneficiary and extensions or renewals thereof.
cn" 7
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
ADEEDREWR02/10/443 I
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
rustorl ritfg5l herein In the Loan Agreement between Beneficiary and Trustor dated
MARCH_ 5 , 19930and 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 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
71DEEDRENT\02/10/94/B 2
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
wrltten 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
shalt 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 Beneficlary, 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 destructlon, 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 (I 0) days before delinquency, all general and special City
and County taxes, and all assessments on appurtenant water stock, affecting such property, (b)
when done, all special assessments for public improvements, without permitting any Improvement
bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with
Interest, on said property, or any part thereof, which are or appears to be prior to superior hereto,
(d) If the security of this Deed of Trust Is leasehold estate, to make any payment or do any act
7\DEEDREN1102/10/94/8 3
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 taw. Should Trustor
fait 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 fall 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 31i costs and
expenses, including cost of evidence of tide and attorney's fees in a reasonable sum, In any such
action or proceeding In which Beneficiary or Trustee may appear by virtue of being made a party
defendant or otherwise Irrespective of whether the Interest of Beneficiary or Trustee In such
property is directly questioned by such action, Including any action for the condemnation or
partition of said premises, and In any suit brought by Beneficiary to foreclose this Deed of Trust.
6, To pay Immediately and without demand, all sums expended under the terms of
this Deed of Trust by Beneficiary or Trustee,with Interest from the date of expenditure at the rate
which the principal obligation secured hereby bears at the time such payment Is made, and the
repayment of such sums shall be secured hereby.
7. That, should the Trustor or any successor in Interest to Trustor in such property
drill or extract, or enter Into a lease for drilling or extraction of oil, gas or other hydrocarbon
substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate
said property, or any parry 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
7%DEEDRENno2/1 oi94ra 4
the maturity date spedfied 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 Beneficlary 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 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.
MEEDRENT\02/10/94/B 5
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, Truster'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 taste, 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 safe 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 tame, 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 net amend, change or modify his leasehold interest, or the lease, or agree to do so,
Without the written consent of the Beneficiary; (c) Truster will promptly advise Beneficiary
regarding any notice, request or demand received by him from the lessor under the Lease and
promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any
of the indebtedness secured hereby shali 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 base affecting the premises and to neither
7\DEEDAENT102/10/94/B 6
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
%ioladons 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
Eenericlary.
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 electlon to cause to be sold said property, which notice Trustee shall cause
to be fled 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 dme and place fixed by It in such notice of sale, whether as a whole or In separate parcels, and
i. 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
Beneficlary 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 safe. (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 safe to payment, first; all
sums expended under the terms hereof, not then repaid, with accrued interest at the rate then
payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and,
If there are any proceeds remaining, shall distribute them to the person or persons legally entitled
thereto.
16. To waive, to the fullest extent permissible by law, the right to plead any statute of
limitations as a defense to any demand secured hereby.
17. That Beneficiary may, from time to time, by Instrument In writing, substitute a
successor or successors to any Trustee named herein or acting hereunder, which Instrument,
executed and acknowledged by Beneficiary and recorded In the office of the recorder of the
county or counties where such property Is situated, shall be conclusive proof of property
substitution of such successor Trustee or Trustees, who shall, without conveyances from the
7\DEEDREN1102110/44/6 7
Trustee predecessor, succeed to all its tide, estate, rights, powers and dudes, including but not
I"mated to the power to reconvey the whole or any part of the property covered by this Deed of
Trust. Such Instrument must-contaln 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, devlsees, 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 Beneficlary's-
request, monthly, on or before the 1 Sth 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 change,
not exceeding the maximum amount which Is permitted by law at the time the statement is
furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to
Trustor or rendered in Trustor's behalf In connection with said property of this Deed of Trust,
Including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured
hereby in connection with the transfer of said property, or releasing an existing policy of fire
Insurance or other casualty insurance held by Beneficiary and replacing the same with another such
policy.
21. That Trustee accepts this Trust when this Deed of Trust, duty executed and
acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any
parry 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 parry unless brought by Trustee.
22. That should this Deed of Trust or any Note secured hereby provide any fee for
prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said
Indebtedness shall be paid prior to the due date thereof stated In said Note or this Deed of Trust
even If notwithstanding Trustor shall have defaulted In payment thereof, or In performance of any
agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured
hereby Immediately due and payable.
23. That Trustor has made certain representations and disclosures In order to Induce
Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust
secures, and in the event that Trustor has made any material misrepresentation or failed to disclose
7\DEEDREHT102/10/94/B 8
aly material fact, Beneficiary at Its option and without notice, shall have the right to declare the
indebtedness secured hereby, Irrespective of the maturity date specified in such Note or Notes,
Immediately due and payable, and on failure to so pay Beneficiary may make a written declaration
of default and demand for sale as In paragraph No. 15 herein set forth. Trustee, upon
presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by
Trustor under this paragraph, Is authorized to accept as true and conclusive all facts and statements
Vierein, and to act thereon hereunder.
Any notice which any party hereto may desire or be required to give to the other parry
stall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his
address hereinabove set forth or to the Beneficiary at his office or at such other place as such
parties hereto may designate in writing.
THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default
and of any notice of sale hereunder be mailed to him at his address hereinbefore set forth.
TRUSTEE: TRUSTOR:
REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH
By: 9 �f
L .
' T1de•C � ��/ B
rcz un�= ,1�,� ce rz, y
By:
GENEFICIARY:
THE CITY OF HUNTINGTON BEACH
Fy:
Title:
APPROVED AS TO FORM:
Agency unsel
ADEEDREN7102/10M/8 9
CALIFO'RNIA ALL-PURPOSE A',— NC ,EDGMENT No.6s93
�• �,�-ail C,crd OPTIONAL SECTION
} State of CAPACITY CLAIMED BY SIGNER
County of lC2 Though statute does not require the Notary to
fill in the data below,doing so may prove
j `'� 7 4 invaluable Io persons relying on the document.
On before me, r INDIVIDUAL
DATE i C AME.MLE OF OFFICER•E.G-, IANE DCE,NOTAXr PUBLIC'
I jo CQRPORATE OFFICJEA{-57
` ' r . s01person-'ally appeared j & cl .
NAME(S)OF WG ERi51 t �
personally known to me-OR -[] pfeved4e-rrt ry PARTNER(S) LIMITED
e`on-the-basis ot-safistacto evidence ❑ ❑
to be the person(s) whose names} Islare- ❑ GENERAL
subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT
knowledged to me that he/she!they executed ❑TRUSTEE(S)
r OFFICIAL S:AL the same in hlsAwf4heir authorized GUARDIARICONSERVATOR
JUDY ("CF4ARDS capacity(ies), and that by histheff-heir
Notary rub7G-Ca>:fomia OUNTY
Signature(s�on the instrument the person(s), OTHER:
my c*T rLq n Exptefrs or the entity upon behalf of which the
NcNerN�ef 3. 7995 persons}acted, executed the instrument.
SIGNER IS REPRESENTING:
-'---SON(5)OR E"TY(IE5)
STATE OF CALIFORNIA }
1 f'� }SS.
courvnr of (J }
On i -s^ before m
T. .
personalty appeared I • t {
c
(or proved
to me on the basis of satisfactory evidence)to be the person(s)whose name(sr istar& ubscribed to the within
Instrument and acknowledged to me that ttr,'sher"executed the same in his.Tte4'their authorized capacity(ies)"
e-
{ and th t b hiVherit7eir si nature st on the instrument the person NO sty Y g (1 pe S or She entity upon behalf 4t which the
pes (= cted,executed the inst M. d& DPTIONAL SECTIONDIVE 1.
Ix •""' 9LUNT TY CLAIMED BY SIGNER
W1TNE a 78764
.1. ial seal. wp WrARY PLOW•SON lire does riot require the Notary to
Cowqia*.a below.doing so may prove
Sigiatur / uy Oonsnt.EVkes Nov.22.19% A o persons relying on the document
1IDUAL
(This wea for ofs'c+al notarial seas) PORATE OFFICER(S)
TITLE(S)
�]personally known to me-OR-G-prowdla.r>Te-on the basis of satisfactory evidence- ❑PARTNERisi ❑LIMITED
I to be the person(s) whose names) 1stafe GENERAL
subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT
knowledged to me that he-'she/they executed ❑TRUSTEE(S)
oWIF>LIAL SEAL the same in "Iher/tfteir authorized GUARDIAWCONSERVATOR
JUDY RtCMARDS capacity(+-&), and that by-his/her/!heir
Notcry E FUAC-Ccifforria ❑oTH>:�:
signature(s3 on the Instrument the person(&),
Mr Carffawort En*ss or the entity upon behalf of which the
Novernber 3. 1995 persons--acted,executed the instrument.
SIGNER IS REPRESENTING:
1
WITNESS my hand and official seal. P"tOFPERSON(s)oRERRRY(IES)
f! 64NATURC OF NOTARY
OPTIONAL SECTION
THIS CERTIFICATE MUST BE ATTACHED•TO TITLE OR TYPE OF DOCUMENT
THE DOCUMENT DESCRIBED AT RIGHT:
NUMBER OF PAGES DATE OF DOCUMENT
Stough the data requested here is not requ'ued by taw.
it could prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE
C1993 NATIONAL NOTARY ASSOCIATION•8236 Rernmet Ave..P.O.Box 7184•C.an+na Pzrb r..a Ot9n0 7.o.
RIDER TO CITY QE HUNTINGTQN BEACH DEED OF TRUSI
AFFOR12ABLE HQUSI , PROGRAM `
ORIG/n,gL GI✓ro Ta
FOP, 10I3Ao Atf--
This rider to the City of Huntington Beach Deed of Trust which was executed by TAM
HOANG (Trustor for the property located at 409 Utica Avenue, D-37) is subject to the terms
and conditions of that certain Loan Agreement entered Into by and between Beneficiary and
Trustor dated MARCH 16 , 19�94 . to which this rider is attached as Exhibit "C" and
Incorporated by reference (the "Loan Agreement"), pursuant to which Beneficiary has agreed to
loan Trustor the sum of Six Thousand One Hundred Forty-Two and 50/100 Dollars ($6,142.50)
(the "Loan Amount") with simple Interest to accrue at five percent (5%) yearly. All terms In this
Rider to City of Huntington Beach Deed of Trust, If not separately defined herein, shall have the
meanings as defined In the Loan Agreement.
1. Acceleration/Due on Sale.
Except as provided herein, the Loan and all Interest accrued thereon shall be
due and payable upon (1) 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) Trustor being In
material default of any other obligation container! In this Agreement or any provision of the
Affordable Housing Agreement or Covenant, as defined herein, recorded on the property, or
(v) Trustor violates any condition of the deed of trust or promissory note, or (vl) the death of
Trustor (unless the Trustor's household, occupying the property, contains more than one qualified
participant In the affordable housing program pursuant to which this Loan is being made, and at
least one qualified participant survives). At the request of Trustor, the City may, in Its sole
discretion, extend the term of the Loan.
2. QCCuI)anry. tandards. The Property shall be used as the personal residence of
Trustor and Trustor's Immediate family and for no other purpose. Trustor shall not enter Into an
agreement for the rental or lease of the Property.
1
7Ao indoc/d ryrld r/02/2 2/9 4
3. Protection of Benefiduy'sRights in the Property.
A. If Trustor falls to perform the covenants and agreements contained In this
Deed of Trust, or there Is a legal proceeding that may significantly affect Beneficiary's rights In the
Property (such as a proceeding In bankruptcy, probate, for condemnation or forfeiture or to
enforce laws or regulations), then Beneficiary may do and pay for whatever is necessary to protect
the value of the Property and Beneficiary's rights in the Property. Beneficiary's actions may Include
paying any sums secured by a lien which has priority over this Deed of Trust, appearing In court,
paying reasonable attorney's fees and entering on the Property to make repairs. Although
Beneficiary may take action under this Section, Beneficiary does not have to do so.
B. Any amount disbursed by Beneficiary under this section, shall become
additional debt of Trustor secured by this Deed of Trust. finless Trustor and Beneficiary agree to
other terms of payment, these amounts shall bear interest from the date of disbursement at the
highest rate permitted by law and shall be payable, with interest, upon notice from Beneficiary to
Trustor requesting payment.
4. Subordination. The Beneficiary has found and declared that an economically
feasible method of financing, refinancing or assisting first time homebuyers pursuant to the Program
on substantially comparable terms and conditions without subordination Is not reasonably available.
Any first lien on the Property ("First Lien") held by an institutional lender or
Investor (the "Lender") or second lien held by the Redevelopment Agency of the City of
Huntington Beach, as may be evidenced by a Deed of Trust recorded on the Property, shall be
prior and superior to the Declaratlon and this Deed of Trust. In the event of a foreclosure or deed
In lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions In any
other collateral agreement restricting the use of the Property to low or moderate Income
households or otherwise restricting the Trustor's ability to sell the Property shall have no further
force or effect on subsequent owners or purchasers of the Property. Any person, Including his
successors or assigns (other than the Trustor or a related entity of the Trustor), receiving tide to
the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall
receive title to the Property free and clear from such restrictlons.
2
7/loandoc/dryddr/02/2 2194
y
S. Obligation to Refrain frgm DiscrimInatlon.
There shall be no discrimination against or segregation of any person, or group of
persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry,
In the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor
shall the Beneficiary itself or any person claiming under or through it establish or permit any such
practice or practices of discrimination or segregation with reference to the selection, location,
number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the City or any
portion thereof.
Trustor agrees it shall Instruct the escrow holder for the acquisition of the Property by the
Trustor that the order of recording in the escrow for the purchase of the Property by the Trustor
shall occur as follows: 1) the First Lien; 1) the Declaration of Covenants, Condidons er
Restrictions for Affordable Housing; 3) the Redevelopment Agency Deed of Trust; and 4) the
City Trust Deed.
The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to
the recordation of the First lien deed of trust or mortgage requesting a statutory notice of default
as set for the In the California Civil Code.
TkUSTOR' SIGNATURE
TRUSTOR'S SIGNATURE
REDEVELOPMENT AGENCY OF CITY OF HUNTINGTON BEACH
THE CI ;OF HUNTINGTON BEACH /0
4"6Y•\�V""�'-F'i'�-�.� rti-a�Y� C.4�V+t.`✓l r'.+--(t„t��
Chairman flayor
APPROVED AS T RM:
'VT
City t Attorney
r. 3
MondockirolQrro2122194
-ALIFORNIA ALL-PURPOSE ACM'`( '-EDGMENT No.5193
■■•�OPTIONAL SECTION
State cf CAPACITY CLAIMED BY SIGNER
• stah;w does not require I*rJ wy to
County a "C� Though41 el - ----- � ul In the data below•doing so may prove
}Jc .r"kiable to persons►ern0 on ft dommwit.
i INDIVIDUAL
On , DATE before me, /I N! .•TITLE OF OFFICER•E.G..' E ooE.taQTARI Pl�BUC•
�)F nj G RPORATE OFFICER(Si
Personally appeared NAr�EtS!qF$iONERrSi TITLES)
� PARTNER(S) �LIMITED
}personally known to me-OR R.❑proved-to-meJortrtht basi"f satistactory evidence' ❑ ❑UNITE At
to be the persons}whose name(,&}is/are- ATTORNEY-IN-FACT
subscribed to the within instrument and ac- ❑
knowledged to me that he,she0ey executed ❑TRUSTEE(S)
the same in hWheritheir authorized GUARDIAWCONSERVATOR
=Y SM
MCKARDS capacity(+est, and that by his/her/their ❑OTHER:
NotaY signature(,&}on the instrument the person(Q,
ORANGE COUM or the entity upon behalf of which the
MY CQMn**n s. person acted, executed the instrument.November SIGNER IS REPRESENTING:
iQN(51 QR EN'Trir(IE51
STATE OF CALIFORNIA )ss.
COUNTY OF
On 00A C6 L 9 before me. £' CI
rsonal appeared_ ' r '
� Ae �Y APE ed. . � �r� i'7Z.1G►'LC,, �--
•J
(or proved - — ----"--�
to rie on the basis of satisfactory evidence)to be the persono whose name(ef islare subscribed to the within
A. instrument and acknowledged to me that Aelshelthe+f executed the same in ft1herlt#>&authorized capacitvbj ), x 7184•Canoga PaeK.CA 913U9-1184
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.3W.
[On
of�y wtft�r OPTIONAL SECTION�■s
CAPACITY CLAIMED BY SIGNER
ty of Tt ough statute does not nx*e the f�otary to
10 Tilt in the data below,doing so may prove
before me .1�11A invaluatge to persons relying on the docun*m
OATS N rE,71TLE Of OFFICER•l:. JANE ri NQ RY UBLIC' INDIVIDUAL
onalty appeared —am {�CORPORATE OFFICER()
1�22t
NMAE(5)OF +uhcA1 r
V%Et5)personally known to me-OR-❑ ry PARTNER(S) LIMITED
to be the person(s� whose names) is/afe- ❑GENERAL
Subscribed to the within instrument and ac. ATTORNEY-IN-FACT
knowledged to me that4YOsheA4ey executed TRUSTEE(S)
L SEAL the same In h�ie,herit#&U- authorized f]GUARDIAWCONSERVATOR
JUD CHARDS Capacity0es), and that by+is1herl44oif
NotWY FUNIc"CdHarla si nature ❑OTHER:
OBE COUNtY g (s3 on the instrument the person(#,
W Carerkdort En*w or the entity upon behalf of which the
3. I945 person f#acted,executed the instrument.
SIGNER IS REPRESENTING:
WITNESS my hand and official seal. ►AMF OF PERSONlsr aA E++TM11Es,
('7a f
tt ew 4" 1 i
IGNA AF-of t40TARY
OPTIONAL SECTION
THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT
THE DOCUMENT DESCRIBED AT RIGHT: i
NUMBER OF PAGES � DATE DOCUMENT
Though The d.ria requested here is not required by law,
if could prevent fraudulent reattachment of ttus term. SIGNER(S)OTHER THAN NAMED ABOVE
C1993 NATIONAL NOTARY ASSOCIATION•977�0- -
THE.' LAND RFC TO DT TfIIS BEAN IS SIZ[. = IN TLCE STATE OF CAIUXINIA,
C U M Y OF ORANGE AND IS WSCR= AS FCT<,I M:
PAPJM 1: UNTT NO. 37, CCNSIS= OF CERTAM AIRSPACE AMID SURFACE EIEZ3NT5, AS
SHCPV AIM DESCRIBED IN ME COMMMUM PLAN ("PLAN") FOR BRISAS DEC, PAR LOCATED
ON LOT 1 OF MALT 14757, AS Sl-.UN CN A SUBDIVISICN MAP RECORDED CST SE'PILVOER 11
1993, IN BOOK 701, PAGES 42 ZILUGH 43, IlQ=IVE OF hffSCELUMOUS MAPS, IN 'III-
OFFICE OF THE OR7LNM COUNTY RECORDER ("OFFIC'IAL RECORDS") , WHICH PLAN WAS
E ID CN SEKE= 15, 1993, AS Il U= I70. 93-0621742, OF OFFICIAL
RECORDS, =FORNIA.
WEE EL 2: AN UNDIVIDED CNE FORTY-FUME (1/44) FEEE SIMPLE INEE= AS A TE %T
IN WtIM IN AMID TO P100= B SHO[VU ON THE PLAN A`m DEF= IN TIM DEC LARATIC U
REFS TO BELCXI AS THE "CCN44ON AREA!'.
EXCEPT T!-MRE�t ALL OIL, CAS, M=ALS AM OTHER HYDROCARBON SUBSTANCES LYIM
MaT A DEPIM OF 500 FEET WI'IHC)CTI' ANY R.IGTr M ENrER UPON THE SURFAM OR =-
SCTESURIFFACE OF SAID LAND ABOVE A DEPTH OF 500 FEET', AS PROVIDED IN INSTM-'E�T15 OF
RECORD.
PAFCM 3: N=CLWIVE EASEME9M FOR ACCESS, INIM ESS, ASS, USE, EUM) 4:FNT,
DRAJ=-, EN T, SUPPORT, DQMTIENANCE, REPAIRS AM FOR OTHER, PURPOSES, ALL
AS MAY BE &tDIN IN THE PLAN, AMID AS ARE DESCRIBED IN TEE DEaARATIC N.
PARCEL, 4: EXCLUSIVE EASEMENTS APPUR!TEN% '!' TO PARCELS NO. 1 AM NO. 2 DESCRIBED
ABOVE FOR USE FCR PARKIW,7 PURPOSES DF'SCRIHEC AS EX=IVE USE AREAS IN THE
DECZARATION, OVER PORTIONS OF LOT 1 OF TRACT 14757 STM AMID ASSIC" ED IN T'rLr
PUN.
PAR.CEC. 5. AN EXCLUSIVE EASEMENT APPUR'i'Ei _NT TO PARCELS NO. 1 AND NO. 2 DESCRIBED
ABCVE, FOR USE FOR PATIO, BAIMlY, AMID FIRE ESCAPE S=CA~SE PURPOSES DESCRIBED
AS EXCLUSIVE USE AREAS IN THE DECLARATION, AS APPLICABLE, OVER PORTICNS OF LOT 1
OF TRACT 14757 AS S-EM, ASSIGIED AND DESCRIBED IN 'TfiE PLAN.
CITY OF HUNTINGTON BEACH
NOTICE OF RIGHT OF RESCISSION
AFFORDABLE HOUSING PROGRAM
Notice To Customer Required by Federal Law:
You have entered into a transaction on March 1 . 19_,gg_, 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
�r
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attn: Housing Dept.
by mail or telegram sent not later than midnight of_ March_3 , 1994.
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.
1 hereby cancel this transaction.
(Date) (Participant's Signature)
SEE NEXT PAGE FOR IMPORTANT INFORMATION ABOUT
YOUR RIGHT OF RESCISSION.
7\rescfss211 oml1oiNn
EXPIRATION OF RESCISSION PERIODS
Direct Loans
(Truth in Lending -Real Estate and Home Improvement Loans)
Partigipant's Name Loan Amount Address of Residence
Tam Hoang $6,142.50 409 Utica, D-37, Huntington Beach
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.
4^—
(Participant's S6 nature) (Date)
(Participant's Signature) (Date)
7lresciSS2110101193T
I •J/
T
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.
H .,../ BIZ
(Participa is Signature) (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 time
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%resdss2110/01193%B
EXPIRATION OF RESCISSION PERIODS
Direct Loans
(Truth in Lending -Real Estate and Home Improvement Loans)
Participant's Name _ Loan Amount Address of Residence
Tam Hoang ..$23,000,00 409 Utica Ave. D-37, Huntington Beach
In connection with the Agreement of the City of Huntington Beach to make the loan described above,
which will be secured by a deed of trust on the residence at the above address,each of the undersigned
hereby represents as follows:
1. The undersigned understands the terms of this Agreement and its attachments.
2. The undersigned has been notified that it must inform the City of Huntington Beach by today's
date should any of them desire to rescind or terminate this transaction.
3. The undersigned acknowledges that this loan has not been funded for at least three days from the
date of execution, in order to provide them with an opportunity to rescind should they so desire.
4. The City of Huntington Beach agreed, subject only to the occurrence of certain conditions, to
make the above described loan and delivered to ea-.h undersigned a Disclosure Statement setting
forth terms of said loan and a Notice of right of Rescission advising each undersigned of their right
to rescind and cancel said transaction in accordance with the Truth in Lending Act on or before
the date the undersigned executed this document.
5. Prior to the date shown above, no proceeds of said loan have been disbursed to or for the benefit
of any of the undersigned.
6. None of the undersigned have canceled or rescinded the above described loan transaction nor
have any of the undersigned notified said Agency or any intention to cancel or rescind said loan
transaction.
The undersigned request the City of Huntington Beach to proceed with the making of the above described
loan in reliance upon the foregoing representations.
(Participant's$ignature) (Date)
(Participant's Signature) (Date)
Aresciss2110/01/931r3
V V
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.
f 3_ (�_ 91z _ -
(Participant' Signature) (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 (1 0) 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. `
i
7kresciss2110/01MV3
cal tomia Land rift Assmimion l � ■ ■
Standa-d coverage Poky Farm L/ � .'?.r
i •rr4+ti'1 Ii Ff v i4D0,061
Policy of Title Insurance 23,oao
Issued By S P ioi-12 5 5 41
TRW Title
Insurance Company
SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED
IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS,TRW TITLE INSURANCE COMPANY,a Kansas
corporation,herein called the Company,Insures,as of Date of Policy shown in Schedule A,against loss or damage,
not exceeding the Amount of Insurance stated in Schedule A,sustained or incurred by the insured by reason of:
1. Title to the estate or interest described in Schedule A being vested other than as stated therein;
2. Any defect in or lien or encumbrance on the title;
3. Unmarketability of the title;
4. Lack of a right of access to and from the land;
and in addition,as to an insured lender only:
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 cf the insured mortgage,said mortgage being shown
In Schedule B in the order of its priority;
7. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment
is shown in Schedule B,or the failure of the assignment shown in Schedule B 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.
TR«' Title Insurance Company
L'16uakt
President4
ATTEST /
�f Secretary
Counttrsig41 rle
,4uthWzed pfficer or Agent
4001,90
Pew.10190
EXCLUSIONS FROM COVERAGE
She following mailers are expressly excluded from the coverage of this policy 3. Defects, liens, encumbrances, adverse claims or other matters:
and the Comparry will not pay foss or damage,costs,attorneys'fees or expenses (a) whether or not recorded in the public records at Date of Policy, but
which arise by reason of: created, suffered, assumed or agreed to by the insured claimant:
(b) not known to the Company, not recorded in the public records at Date
1. (a) Any law,ordinance or governmental regulation(including but not limited of Policy,but known to the insured claimant and not disclosed in writing
to building and zoning laws, ordinances, or regulations) restricting, to the Company by the insured claimant prior to the date the insured
regulating, prohibiting or relating to(i)the occupancy, use, or enjoy- claimant became an insured under this policy;
ment of the land; (ii) the character, dimensions or location of any (c) resulting in no loss or damage to the insured claimant;
improvement now or hereafter erected on the land;(iii)a separation in (d) attaching or created subsequent to Date of Polity; or
ownership or a change in the dimensions or area of the land or any parcel (e) resulting in loss or damage which would not have been sustained if the
of which the land is or was a part;or(iv)environmental protection,or insured claimant had paid value for the insured mortgage or for the estate
the effect of arty violation of these laws,ordinances or governmental or interest insured by this policy
regulations,except to the extern that a notice of the enforcement thereof 4. Unenforceability of the lien of the insured mortgage because of the inability
or a notice of a defect,lien or encumbrance resulting from a violation or failure of the insured at Date of Policy,or the inability or failure of any
or alleged violation affecting the land has been recorded in the public subsequent owner of the indebtedness,to comply with the applicable doing
records at Date of Policy. business laws Of the state is which the land is situated.
(b)Any governmental police power not excluded by(a)above,except to the 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim
extent that a notice of the exercise thereof or a notice of a defect, lien thereof,which arises out of the transaction evidenced by the insured mort-
or encumbrance resulting from a violation or alleged violation affecting gage and is based upon usury or any consumer credit protection or truth
the land has been recorded in the public records at Dale of Policy. in lending law.
2. Rights of eminent domain unless notice of the exercise thereof has been 6. Any claim,which arises out of the transaction vesting in the insured the
recorded in the public records at Date of Policy, but not excluding from estate or interest insured by this policy or the transaction creating the interest
coverage arty taking which has occurred prior to Date of Policy which would of the insured lender,by reason of the operation of federal bankruptcy,state
be binding on the rights of a purchaser for value without knowledge. insolvency or similar creditors' rights laws.
CONDITIONS AND STIPULATIONS
1. DEFINITION OF TERMS. 2. CONTINUATION Of INSURANCE. to the Company. then as to that insured all liability of the
The following terms when used in this policy mean: (a) After Acquisition of Title.If this policy insures the Company shall terminate with regard to the matter or matters
(a) 'insured".the insured named in Schedule A,and,sub- owner of the indebtedness secured by the insured mortgage, for which prompt notice is required;provided,however,that
ject to any rights or defenses the Company would have had the coverage of this policy shalt continue in force as of Date failure to notify the Company shall in no case prejudice the rights
against the named insured,those who succeed to the Interest of Polity in favor of(i)Such insured lender who acquires all or of any insured under this policy unless the Company shall be
of the named insured by operation of law as distinguished from any part of the estate or Interest in the land by foreclosure, prejudiced by the failure and then only to the extent of the
purchase including, but not limited to, heirs, distributees, trustee's sale,conveyance in lieu of foreclosure,or other legal prejudim
devisees,survivor;,personal representatives,next of kin,or manner which discharges the lien of the insured mortgage;(ii)
corporate or fiduciary successors.The term"insured"also a transferee of the estate or interest so acquired from an insured 4. DEFENSE AND PROSECUTION OF ACTIONS;
includes corporation,provided the transferee is the parent or wholly- DUTY OF INSURED CLAIMANT TO COOPERATE.
() the owner of the indebtedness secured by the insured owwned subsidiary of the insured corporation and their corporate (a) Upon written request by the insured and subject to the
mortgage and each successor in ownership of the indebted- successors by operation of law and not by purchase,subject options contained in Section 6 of these Conditions and Stipu-
ness except a successor who is an obligor under the provisions to arty rights or defenses the Company may have against any lations.the Compang at its own cost and without unreasonable
of Section 12(c)of these Conditions and Stipulations(reserving, predecessor insureds;and(iii)any governmental agency or delays shall provide for the defense of such insured in litigation
however,all rights and defenses as to any successor that the governmental instrumentality which acquires all or any part of in which any third party asserts a claim adverse to the title or
Company would have had against any predecessor insured, the estate or interest pursuant to a contract of insurance or iraeresl as Insured.but only as to those stated causes of action
unless the successor acquired the indebtedness as a purchaser guaranty insuring or guaranteeing the indebtedness secured alleging a defect,lien or encumbrance or other matter insured
for value without knowledge of the asserted defect,lien,encum- by the insured mortgage. against by this policy*The Company shall have the right to select
brance,adverse claim or other matter insured against by this (b) After Conveyance of THIL The coverage of this policy counsel of its choice(subject to the right of such insured to
pofq as attesting title to the estate or interest in the land); shag continue in lorce as of Date of PDiq in tavor of an insured object for reasonable cause►to represent the insured as to those
(ii) any governmental agency or governmental instru- only so long as the insured retains an estate or interest in the stated causes of action and shall not be liable for and will not
mentality which is an insurer or guarantor under an insurance Land.or holds an indebtedness secured by a purchase money pay the tees of any other counsel.The Company will not pay
contract or guaranty insuring or guaranteeing the indebtedness mortgage given by a purchaser from the insured,or only so any fees,costs or expenses Incurred by an insured in the defense
secured by the insured mortgage,or any part thereol,whether long as the insured shall have liability by reason of Covenants of those causes of action which allege matters not insured
named as an insured herein of not; of warranty made by the insured in any transfer or conveyance against by.this polity.
(iii) the parties designated in Section 2(a) of these of the estate or interest.This polity shall not continue in force (b) the Company shall have the right,at its own cost,to
Conditions and Stipulations. in law of any purchaser from the insured of either(i)an estate institute and prosecute any action or proceeding or to do any
(b) "insured claimant": an insured claiming loss or or interest in the land,or(ii)an indebtedness secured by a pur- other act which in its opinion may be necessary or desirable
damage. chase money mortgage given to an insured. to establish the title to the estate or interest or the hen of the
(c) "insured lender":the owner of an insured mortgage. (c) Amount of Insurance:The amount of insurance after insured mortgage,as insured,or to prevent or reduce foss or
(d) "insured mortgage":a mortgage shown in Schedule the acquisition or after the conveyance by an insured lender damage to an insured.The Company may take any appropriate
a the owner of which is named as an insured in Schedule A. shall in neither event exceed the least of: action under the terms of this polity,whether or not it shall be
(e) "knowledge' or "known": actual knowledge. not (i) The amount of insurance stated in Schedule A: liable hereunder and shall not there concede liability orwaive
constructive knowledge or notice which may be imputed to an (i) The amount of the principal of the indebtedness any provision of this policy.If the Company shall exercise its
insured by reason of the public records as defined in this policy secured by the insured mortgage as of Date of Policy,interest rights under this paragraph,it shall do so diligently.
or any other records which impart constructive notice of matters thereon,expenses of foreclosure.amounts advanced pursuant (c) whenever the Company shall have brought an action
affecting the land. to the insured mortgage to assure compliance with laws or to or interposed a defense as required or permitted by the provi-
(f) 'land":the land described or referred to in Schedule protect the lien of the insured mortgage prior to the time of sions of this policy.the Company may pursue any litigation to
(A),and impromnents affixed thereto which by taw constitute acquisition of the estate w interest to the land and secured final determination by a court of competent jurisdiction and
real property The term'land"does not include arty property thereby and reasonable amounts expended to prevent deterio- expressly reserves the right.In its sole discretion,to appeal
tl the lines of the area described or referred to in Schedule ration of Improvements, but reduced by the amount of all from any adverse judgment or order.
(A).nor any right,title,interest,estate or easement in abutting payments made;or (d) In all cases where this polity permits or requires the
streets,roads,avenues,alleys,lanes,ways or waterways,but (ai) The amount paid by any governmental agency or Company to prosecute or provide for the defense of arty action
nothing herein shalt modify or limit the extent to which a right governmental instrumemalny,l the agency or instrumentality M proceeding,the insured shall secure to the Company the
of access to and from the Land is insured by this polio is the insured claimant,in the acquisition of the estate or interest right to so prosecute or provide defense in the action or pro-
(g) "mortgage":mortgage,deed of trust,trust deed,or in satisfaction of its insurance contract or guaranty. ceeding,and all appeals therein,and permit the Company to
other security instrument. use,at Its option,the name of such insured for this purpose.
(h) "public records': records established under state I NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT Whenever requested by the Company( an insured, at the
statutes at Date of Policy for the purpose of imparting con- The insured shall notify the Company promptly in writing Company's expense,shall give the Company an reasonable aid
structive notice of matters relating to real property to purchasers (i)in case of any litigation as set forth in Section 4(a)below. (i)in arty action or proceeding.securing evidence.obtaining
for value and without knowledge. (jt)In case knowledge stall come to an insured hereunder of witnesses,prosecuting or defending the action or proceeding,
(i) "unmarketability of the title":an alleged or apparent any claim of title or interest which is adverse to the title to the or effecting seMement,and(ii)In any other lawful act which
matter affecting the We to the land,not excluded or excepted estate or Interest or the lien of the insured mortgage,as insured, in the opinion of the Company may be necessary or desirable
from coverage,which would entitle a purchaser of the estate and which might cause loss or damage for which the Company to establish the title to the estate or Interest or the lien of the
or interest described In Schedule A or the insured mortgage may be liable by virtue of this policy,or(iii)it title to the estate insured mortgage.as insured.if the Company is prejudiced by
to be released from the obligation to purchase by virtue dl a or interest or the lien of the insured mortgage.as insured.is the failure of an insured to furnish the required cooperation,
contractual condition requiring the delivery of marketable title. rejected as unmarketable.If prompt notice Shag not be given` the Company's obligations to such insured under the policy stall
(continued on inside back cover)
4001
CLTTA STANDARD POLICY �„rj
SCHEDULE A
TOM FEE FEZ TITLS, E}WMMICN
AND TITLE INSURANCE $300.00
AM= OF INSURANCE: $23,000.00
CRDER NO. 216737-3
POLICY NO. SF 101-125541
DATE OF POLICY: NARCH 21, 1994
AT: 8:00 A.M.
1. NAME OF INSURED:
THE REDS DF1,ENT PEINC'Y OF THE CITY OF HLMTI'IINC'ICN BEACH, A RE9,1C BODY
C3 PORATE AND POLITIC
2. THE FS= OR IlMERF.ST IN THE LAND DESCRIBED IN SCHEDULE A AND hU-IICH IS
COVERED BY THIS POLICY IS: A C UDCM NIUM AS DEFINED IN SECTION 783 OF THE
Q,LIFnRNIA CIVIL OBE, IN FEE.
3. THE ESTATE OR DTrEP= RMW.ED TO HEREIN, IS AT DATE OF POLICY VFSIED IN:
TAM NHU Fes, AN UNMARRIED WCMAN
i
a0ER NA.: 216737-3 � j Q)C LTA STANDARD POLICY
PA3E ND. : 2
SCHEDULE A,
(CONTINUED)
4. THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLLOWS:
THE LAND IS SITUATED IN THE
STATE OF C ALIFUOZYlA
COUNTY TI'Y OF ORANGE
PARCEL 1: UNIT NO. 37, CONSISTING OF CERTAIN AIRSPACE AND SURFACE ELEMENTS, AS
SHOWN AND DESCRIBE IN THE PLAN ("PLAN") FOR BRISAS DEL MAR LCCMATED
CV LOT 1 OF TRACT 14757, AS SHow ON A SUBDIVISICNT MAP RECORDED Cg SEPTEMBER 1,
1993, IN BOOK 701, PACES 42 THROUGH 43, INCLUSIVE OF MISCE11Ah'DUC1S MAPS, IN THE
OFFICE OF THE QRANaE COUNTY RECORDER ("OFFICIAL ROODIRDS"), WHICH PLAN WAS
RECORDED ON SERTE BE R 15, 1993, AS INSTRIOE ITT NO. 93-0621742, OF OFFICIAL
RECORDS, CALIFORNIA.
PARCEL 2: AN UNDIVIDED ONE FORTY!FIOURII3 (1/44) FEE SIMPLE INTEREST' AS A TENAANNr
III CL44W IN AND 70 MO= B SHOWN. ON THE PLAN AND DEFINFI] IN THE DEC LARATICN
REFERRED TO BEDOR AS THE "COMMON N AREA".
ExCEPT THEEREFIRCOM ALL OIL, GAS, MINERALS A10 OTHER ENDRC C'ARS09 SUBSTX9C£S LYING
BELOW A DEPTH OF 500 FEET W117E T ANY RIGS TO ENTER UPON THE SURFACE OR THE
SUBSURFACE OF SAID LAND ABOVE A DEPTH OF 500 FEET, AS PROVIDED IN INSI OF
RECORD.
PARCEL 3: NCIMCIMIVE EASEMENTS FOR ACCESS, INGRESS, EGRESS, USE, ENUOYMEmT,
DFAIN CE, ENCROACHMENT, SUPPORT, MAINTEMAIMCE, REPAIRSAMD FOR OTHER PURPOSES, ALL
AS MAY BE SHOWN IN THE PLAN, AMID AS ARE DESCRI&ED IN THE DEQARAI'ICN.
PFRC£L 4: EXCLUSIVE FASFVTSI'S APPURTENANT TD PARCELS NO. 1 AND NO. 2 DESCRIBED
A IOVE FUR USE FOR RNMRI G PLkMES DESCRIBED AS EXC LLTSIVE USE AREAS IN THE
DF]C10ATICI4 OVER P3RTIfVS OF LOT 1 OF TRACT' 14757 SIM AMID ASSIGNED IN THE
PLAN.
PTI EL 5: AN EXCLUSIVE Emma APPUKTE NN TT TO PARCELS NO. 1 AND NO. 2 DESCRIBED
APOW0 FOR USE FOR PATIO, BALCOaY, AND FIRE ESCAPE SASE PURPOSES DESCRIBED
AS EXCLUSIVE USE AREAS IN THE DECLARATION, AS APPLICABLE, OVER PORTIONS OF LOT 1
CC TRACT 14757 AS SHOWN, ASSICNED AND DESCRIBED IN THE PLAN.
' 1
OROER ND. : 216737-3 Nw.dCLXa STANDARD POLICY
RN3E VD. : 3
SCHEDULE ULE B
EXCEPTIONS FROM Ol'7CERAGE
THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAPgN3E (AMID THE COMPANY WILL MDT PAY
COSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF:
PART I
1. TAXES OR ASSESSMENTS WHICH ARE NOT SH04N AS EXISTI93 LIENS BY THE RECORDS OF
ANY TAXING AUTHORITY TEAT LEVIES TAXES OR ASSESSMENTS CST REAL PROPERTY OR BY
THE PUBLIC RECORES. 1 3S BY A PUBLIC AMICY WHICH H MAY RESULT IN
TAXES OR ASSESSMENTS, OR NOTICES OF SUCH PROCE®ING.S, GATHER OR NOT SST
BY THE RECORDS OF SUCH FgENC'Y OR BY THE PUBLIC RECORDS.
2. ANY FACTS, RIOTS, IMF, OR CLAIMS WHICH ARE NOT SHORN BY THE PUBLIC
RECORDS BUT WHICH COULD BE ASS BY AN INSPECTION OF THE LAND OR WHICH
H
NAY BE ASSERTED BY PERSONS IN POSSESSION THEREOF.
3. EASEMENTS, LIENS OR ENCUMBRAKES, OR CLAIMS THEREOF, WHICH ARE NOT SHlClKlM BY
THE PUBLIC RECORDS.
4. DISCREPANCIES, COTFLICTS IN BOUNDARY LINES, SHORTACE IN AREA,
OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD DISCLOSE, AND
WHICH ARE NOT SHORN BY THE PUBLIC RECORDS.
5. (A) CINIPATE=NTE MINING CLAIMS: (B) RESERVATIONS OR EX EFTICNS IN PATENS OR
1N ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER RIGHTS, CLAIMS Tb TITL
TO WATER, WHETHER OR N7T THE MOTIER.S EXCEPTED UEER (A) , (B) OR (C) ARE
SHORN BY THE PUBLIC RECORDS.
•
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r j
CR ER NO.: 216737-3 / �1
PATE NO. : 5
9. THE TERIMS, PROVISICNS AND CONDITIONS CONTAINED IN A DOCUMENT E TTIT3EID
"AFFORDABLE HOMING RESTRICTION ATID COVENANT", EXECUTED BY AND BETVIMEEEN
BF T LAKE STREET PROPERTIES AND THE CITY OF HU TTINGTON' BEACH, RECORDED
SEPTIIMIRIIt 2, 1987 AS INSTRUMENT NO. 87-SO0026 OF OFFICIAL RECORDS.
10. AN FASE01ENT FOR PIRIC UTILITIES AMID INCIDENTAL PURPOSES, AS GRANTED TO
SOUTHERN' CALIFORNIA EDISON COMPANY, A CARPCRATIOM, IN D® ROaZICED AS
INSTRUMENT N0. 87-534842 OF OFFICIAL RECORDS, ALONG THAT S11=11 OF SAID
LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT.
11. Al EASEMENT FOR WATER MAIN AMID INCIDENTAL PURPOSES, AS GRANTED 70 THE CITY
OF HIII�TTINC'!CN BEACH, A MENICIPAL CORPORAriaN IN THE DEED RECORDED AS
316MIlENT NO. 87-583411 OF OFFICIAL, RECORDS, ALCM THAT PCRMCN OF SAID
LAND AS MORE PARTICULARLY DESCRIBED IN SAID imb RUM NT.
12. THE EFFECT OF A SUBSURFACE OIL AND GAS LEASE, EXECUTED BY GILBERT M. WILSSCIN
AND ETIANOR E. WILSCIT, HUSBAND AMID WIFE, AS IF=X4 AND NXIS PETnRCOLELU14
CORPORATION, A DELAWARE COR ORATICU, AS LESSEE, RECORDED APRIL 18, 1989 AS
NO. 89-201848 OF OFFICIAL RECORDS, COVERING THE LAND LYING BELaW
A DEPTH OF FIVE 3111RED (500) FEET FROM THE SURFACE THEREOF, WMIOUT THE
RIGHT OF SURFACE ENTRY ABOVE SAID DEPTH, FOR THE PERIOD AND UPON THE TEMMS,
COVF3VINTS AMID CINIDI77ONS TfIEREIN PROVIDED, REFERENCE BEING MADE TO THE
RECORD THEREOF FOR FULL PARTICULARS.
13. THE TERNLS, PROVISIONS AMID CONDITIONS CONTAINED IN A DOC.ZVIENT E TMrM=lE
"DECLARATION OF RESTRICTIONS AND SUBDIVISIC 19 CONSENTS", EXECUTED BY DELAWARE
II, A 01aFORNIA LIMITED PARTNERSHIP, RECORDEM APRIL 6, 1993 AS INSIRi�3�TT
NO. 93-0230267 OF OFFICIAL RECORDS.
14. THE FACT THAT THE OWVZNiERS OF SAID LAND HAVE ND RIQIT OF VEHICULAR ACCESS TC)
DELAmRE STREET, UTICA AVENUE AMID CAI,IPOIUTIA STREET, EXCEPT AT SPECIFIED
POINTS, SAID RIGHTS HAVING BEEN' RELINIXISMED BY DEDICATION PROVISIONS ON THE
MAP OF SAID TRACT.
15. AN INSTRUMENT' EAMn D " PLAN" RECDRDID SEPIRGER 15, 1993 AS
INS NO. 93-0621742 OF OFFICIAL RECORDS; REFERENCE BEING MADE 70 THE
RECORD THEREOF FOR FULL PARTICULARS.
r• ?I' I 14 I} I 1 ! •: • I}• 11 •• Y• I •• ►• 1 '•.• • L
Ili'?• '1 I` • 101 • •' '} I•?I• r r Y } • •;' •ay •;' •:!1?Ir
• '1 I !••;r I •' 1200 DOOR I I. •1 I} • I. I
• • M }••'rr
go 0- DO 219
• � Ib
I} 0 IJIr •• } r. as 11 • IN • • • L 1 •-.• Ir r• I
?a•T I..
`I? al' - 1: r •. • 1• - ea I INo* 612 • r « •�?II
1 L I ISY • -?a•1-I • it 1 r• • • Ir6 • ? 1 •: I I
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19
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1:1�1r • •� • as 1- r 1•�1: all I
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r• }I r• -a I •••
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aa•;•Ir
QR ND.: 216737-3 ktwI
PAM ICU. : 7
20. DEED OF -IM S'r M SECURE AN INDEBTEDNESS.
AM'f3CIDIr: $23,000.00
TRUSILIR: TAM I- W
I TRU=: THE CITY OF FKNrIlNMW BEACH, A KUICIPAL CMPMMCtd
BENEFICIARY: THE REDEVECpFM= AGF=- OF THE CITY OF
BEACH, A PLELIC BODY CIMPORATE AMID POLITIC
DATED: MARCH 16, 1994
RECORDED: MARCH 21, 1994 AS I%-r.tLMTr NO. 94-0196686, OF OFFICIAL
RE7MEW
21. DEED OF TRLI9?r 70 SECURE AN INDEBTEMESS.
AN=: $6,142.50
TRU~5"IUR: TAM HD=
TFtUS'TEE: THE REDEVEMPMERr AGENCY OF VE CITY OF HIUTINGIL'FI
BEACH, A PUBLIC BC3Y CMFO ATE AMID POLITIC
BENEFICIARY: THE CITY OF H[IlVM= BEACH, A Ml'AVICIPAL C?ORPORATICN
DATED: MCH 16, 1994
REDID: MARCH 21, 1994 AS IIVarRL = NO. 94-0196687, CF OFFICIAL
RECORDS
CA f
YCONDOMINIUM PLAN Sh*etff r�o
t
r" UNIT AIRSPACE bI4EN3I0y PLAN: SCALE: 1' s Ip _
+ BUILDING `D•
UPPER LEVEL
UNITS 3 2"TffitU-3 R- _ r A:
V '
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I. • I%DICATES COMMON BUILDING CONTROL POINT.
2, SEE SSEET 6 FOR BOUNDARY PLAT..
I. -SEE SHEET 1 FOR BUILDING LA ATION PLAN*
i. SEE SHEETS 8 THRU 19 FOR UNIT AIBSPACR DIltUSION PUNS. "' -•
S. SEE SHIRTS 20 THRU 23 FOR SCHEDULES OP TYPICAL UNIT YSRTICAL SSCTIC%S. �-
6. SE8 SUITS_24 THRU 27 FOR TYPICAL UNIT VERTICAL SECTIONS.
7. SEE SHEIT 28 FDR OPEN PARKING LOCATION PLAN. ;�i�i
Cat•tom a land Title Association ' 7T'WV
M N
Srandar!Cmere
ge PolKy Form }
-rAm jt Oo HoA,06
Policy of Title Insurance `°``y°-s°
Issued By S P 101--12 5 5 4 2
TRW Title
Insurance Company
SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED
IN SCHEDULE BAND THE CONDITIONS AND STIPULATIONS,TRW TITLE INSURANCE COMPANY,a Kansas
corporation,herein called the Company,insures,as of Date of Policy shown in Schedule A,against loss or damage,
not exceeding the Amount of Insurance stated in Schedule A,sustained or incurred by the insured by reason of:
1. Title to the estate or interest described in Schedule A being vested other than as stated therein;
2. Any defect in or lien or encumbrance on the title;
3. Unmarketability of the title;
4. Lack of a right of access to and from the land;
and in addition, as to an insured tender only:
5. The invalidity or unenforceability of the lien of the insured mortgage upon the title;
a The priority of any lien or encumbrance over the lien of the insured mortgage,said mortgagee being shown
In Schedule B in the order of its priority;
7. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment
Is shown in Schedule B,or the failure of the assignment shown in Schedule B 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.
TR`AI Title Insurance Company
L-�,Oj�,4
Pres-dent
ATTEST /
Secretary
Countersigned by:
N Offee,ofAgent
4NI.90
Rev.1090
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy 3. Defects, liens, encumbrances, adverse claims or other matters:
and the Company will not pay loss or damage,costs,attorneys'fees or expenses (a) whether or not recorded in the public records at Date of Policy, but
which arise by reason of: created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded in the public records at Date
1. (a) Any law,ordinance or governmental regulation(including but not limited of Policy,but known to the insured claimant and not disclosed in writing
to building and zoning laws, ordinances, or regulations) restricting, to the Company by the insured claimant prior to the date the insured
regulating, prohibiting or relating to (i) the occupancy, use, or enjoy- claimant became an insured under this policy;
ment of the land; (ii) the character, dimensions or location of any (c) resulting in no loss or damage to the insured claimant;
improvement now or hereafter erected on the land; (iii)a separation in (d) attaching or created subsequent to Date of Policy; or
ownership or a change in the dimensions or area of the land or any parcel (e) resulting in loss or damage which would not have been sustained if the
of which the land is or was a part; or(iv)environmental protection, or insured claimant had paid value for the insured mortgage or for the estate
the effect of any violation of these laws, ordinances or governmental or interest insured by this policy.
regulations,except to the extent that a notice of the enforcement thereof 4. Unenforceability of the lien of the insured mortgage because of the inability
or a notice of a defect, lien or encumbrance resulting from a violation or failure of the insured at Date of Policy, or the inability or failure of any
or alleged violation affecting the land has been recorded in the public subsequent owner of the indebtedness,to comply with the applicable doing
records at Date of Policy. business laws of the state in which the land is situated.
(b Any governmental police power not excluded by(a)above,except to the 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim
extent that a notice of the exercise thereof or a notice of a defect, lien thereof,which arises out of the transaction evidenced by the insured mort-
or encumbrance resulting from a violation or alleged violation affecting gage and is based upon usury or any consumer credit protection or truth
the land has been recorded in the public records at Date of Policy. in lending law.
2. Rights of eminent domain unless notice of the exercise thereof has been 6. Any claim, which arises out of the transaction vesting in the insured the
recorded in the public records at Date of Policy, but not excluding from estate or interest insured by this policy or the transaction creating the interest
coverage any taking which has occurred prior to Date of Policy which would of the insured lender,by reason of the operation of federal bankruptcy,state
be binding on the rights of a purchaser for value without knowledge. insolvency or similar creditors' rights laws.
CONDITIONS AND STIPULA71ONS
1. DEFINITION OF TERMS. 2. CONTINUATION OF INSURANCE. to the Company, then as to that insured all liability of the
The following terms when used in this policy mean: (a) After Acquisition of Title. If this policy insures the Company shall terminate with regard to the matter or matters
(a) "insured":the insured named in Schedule A,and,sub- owner of the indebtedness secured by the insured mortgage, for which prompt notice is required; provided, however,that
ject to any rights or defenses the Company would have had the coverage of this policy shall continue in force as of Date failure to notify the Company shall in no case prejudice the rights
against the named insured,those who succeed to the interest of Policy in favor of(i)such insured lender who acquires all or of any insured under this policy unless the Company shall be
of the named insured by operation of law as distinguished from any part of the estate or interest in the land by foreclosure, prejudiced by the failure and then only to the extent of the
purchase including, but not limited to, heirs, distributees, trustee's sale,conveyance in lieu of foreclosure,or other legal prejudice.
devisees,survivors, personal representatives, next of kin,or manner which discharges the lien of the insured mortgage;(ii)
corporate or fiduciary successors. The term "insured" also a transferee of the estate or interest so acquired from an insured 4. DEFENSE AND PROSECUTION OF ACTIONS;
includes corporation, provided the transferee is the parent or wholly- DUTY OF INSURED CLAIMANT TO COOPERATE.
(i) the owner of the indebtedness secured by the insured owned subsidiary of the insured corporation and their corporate (a) Upon written request by the insured and subject to the
mortgage and each successor in ownership of the indebted- successors by operation of law and not by purchase,subject options contained in Section 6 of these Conditions and Stipu-
ness except a successor who is an obligor under the provisions to any rights or defenses the Company may have against any lations,the Company,at its own cost and without unreasonable
of Section 12(c)of these Conditions and Stipulations(reserving, predecessor insureds; and (iii)any governmental agency or delay,shall provide for the defense of such insured in litigation
however,all rights and defenses as to any successor that the governmental instrumentality which acquires all or any part of in which any third party asserts a claim adverse to the title or
Company would have had against any predecessor insured, the estate or interest pursuant to a contract of insurance or interest as insured,but only as to those stated causes of action
unless the successor acquired the indebtedness as a purchaser guaranty insuring or guaranteeing the indebtedness secured alleging a defect,lien or encumbrance or other matter insured
for value without knowledge of the asserted defect,lien,encum- by the insured mortgage. against by this policy.The Company shall have the right to select
brance,adverse claim or other matter insured against by this (b) After Conveyance of Title.The coverage of this policy counsel of its choice(subject to the right of such insured to
policy as affecting title to the estate or interest in the land); shall continue in force as of Date of Policy in favor of an insured object for reasonable cause)to represent the insured as to those
(ii) any governmental agency or governmental instru- only so long as the insured retains an estate or interest in the stated causes of action and shall not be liable for and will not
mentality which is an insurer or guarantor under an insurance land,or holds an indebtedness secured by a purchase money pay the fees of any other counsel.The Company will not pay
contract or guaranty insuring or guaranteeing the indebtedness mortgage given by a purchaser from the insured,or only so any fees,costs or expenses incurred by an insured in the defense
secured by the insured mortgage,or any part thereof,whether long as the insured shall have liability by reason of covenants of those causes of action which allege matters not insured
named as an insured herein or not; of warranty made by the insured in any transfer or conveyance against by this policy.
(iii) the parties designated in Section 2(a) of these of the estate or interest.This policy shall not continue in force (b) The Company shall have the right,at its own cost,to
Conditions and Stipulations. in favor of any purchaser from the insured of either(i)an estate institute and prosecute any action or proceeding or to do any
(b) "insured claimant": an insured claiming loss or or interest in the land,or(ii)an indebtedness secured by a pur- other act which in its opinion may be necessary or desirable
damage. chase money mortgage given to an insured. to establish the title to the estate or interest or the lien of the
(c) "insured lender":the owner of an insured mortgage. (c) Amount of Insurance:The amount of insurance after insured mortgage,as insured,or to prevent or reduce loss or
(d) "insured mortgage":a mortgage shown in Schedule the acquisition or after the conveyance by an insured lender damage to an insured.The Company may take any appropriate
B,the owner of which is named as an insured in Schedule A. shall in neither event exceed the least of: action under the terms of this policy,whether or not it shall be
(e) "knowledge" or "known": actual knowledge, not (i) The amount of insurance stated in Schedule A; liable hereunder,and shall not thereby concede liability or waive
constructive knowledge or notice which may be imputed to an (ii) The amount of the principal of the indebtedness any provision of this policy. If the Company shall exercise its
insured by reason of the public records as defined in this policy secured by the insured mortgage as of Date of Policy,interest rights under this paragraph, it shall do so diligently.
or any other records which impart constructive notice of matters thereon,expenses of foreclosure,amounts advanced pursuant (c) Whenever the Company shall have brought an action
affecting the land. to the insured mortgage to assure compliance with laws or to or interposed a defense as required or permitted by the provi-
(f) "land":the land described or referred to in Schedule protect the lien of the insured mortgage prior to the time of sions of this policy,the Company may pursue any litigation to
(A),and improvements affixed thereto which by law constitute acquisition of the estate or interest in the land and secured final determination by a court of competent jurisdiction and
real property.The term"land"does not include any property thereby and reasonable amounts expended to prevent deterio- expressly reserves the right, in its sole discretion,to appeal
beyond the lines of the area described or referred to in Schedule ration of improvements, but reduced by the amount of all from any adverse judgment or order.
(A),nor any right,title,interest,estate or easement in abutting payments made; or (d) In all cases where this policy permits or requires the
streets,roads,avenues,alleys,lanes,ways or waterways,but (iii) The amount paid by any governmental agency or Company to prosecute or provide for the defense of any action
nothing herein shall modify or limit the extent to which a right governmental instrumentality,if the agency or instrumentality or proceeding,the insured shall secure to the Company the
of access to and from the land is insured by this policy. is the insured claimant,in the acquisition of the estate or interest right to so prosecute or provide defense in the action or pro-
(g) "mortgage":mortgage,deed of trust,trust deed,or in satisfaction of its insurance contract or guaranty. ceeding,and all appeals therein,and permit the Company to
other security instrument. use,at its option,the name of such insured for this purpose.
(h) "public records": records established under state 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. Whenever requested by the Company, an insured, at the
statutes at Date of Policy for the purpose of imparting con- The insured shall notify the Company promptly in writing Company's expense,shall give the Company all reasonable aid
structive notice of matters relating to real property to purchasers (i)in case of any litigation as set forth in Section 4(a)below, (i)in any action or proceeding,securing evidence,obtaining
for value and without knowledge. (ii)in case knowledge shall come to an insured hereunder of witnesses,prosecuting or defending the action or proceeding,
(i) "unmarketability of the title": an alleged or apparent any claim of title or interest which is adverse to the title to the or effecting settlement,and(ii)in any other lawful act which
matter affecting the title to the land,not excluded or excepted estate or interest or the lien of the insured mortgage,as insured, in the opinion of the Company may be necessary or desirable
from coverage,which would entitle a purchaser of the estate and which might cause loss or damage for which the Company to establish the title to the estate or interest or the lien of the
or interest described in Schedule A or the insured mortgage may be liable by virtue of this policy,or(iii)if title to the estate insured mortgage,as insured.If the Company is prejudiced by
to be released from the obligation to purchase by virtue•of a or interest or the lien of the insured mortgage,as insured,is the failure of an insured to furnish the required cooperation,
contractual condition requiring the delivery of marketable title. rejected as unmarketable.If prompt notice shall not be given the Company's obligations to such insured under the policy shall
4001 (continued on inside back cover)
f CONDITIONS AND STIPULATIONS
(Continued from inside front cover)
terminate,inc uding any liability or obligation to defend.prose- (ii) to pay or otherwise settle with the insured claimant Stipulations sha't not reduce pro tanio the a^nount of insurance
cute,or eont:iue ary litigation.with regard to the matter or the foss or damage provided for under this policy.together with afforded under this policy as to any such insured.except to the
matters requi 7ng such cooperation. aiy costs•attorneys'lees and expenses incurred by the insured extent that the payments reduce the amount of the indebted-
claimant which were authorized by the Company up to the time nets secured by the insured mortgage.
S. PROOF CF LOSS OR DAMAGE. of payment and which the Company is obligated to pay 1b) Payment in part by any person of the principal of the
In addition�D and after the notices required under Section Upon the exercise by the Compa�Y of either of the options Indebtedness,or any other ob5oa;ron Secured by the insured
3 of these Conditions and Stipulations have been provided the provided for In paragraphs b(u).the Company's obligations to mortgage.or any voluntary partial sa;is'action or release of the
Company,a proof of loss or damage signed and swom to by the insured under this policy for the chimed loss or damage. insured mortgage,to the extent of the payment.satisfaction
each insured clarcnant 9ha1I be turnished to the Company within other than the payments required to be made,shall terminate. or release.sha!I reduce the amount of insurance pro tamo.The
90 days after Cie insured claimant shall ascertain the facts giving including any liability or obligation to defend, prosecute or amount of insurance may thereafter be increased by accruing
rise to the lost or damage.The proof of loss or damage shall eont:nue any litigation. interest and advances made to protect the lien of the insured
describe the cefect in,or lien or encumbrance on the title,or mortgage and secured thereby with interest thereon.provided
other matter insured against by this policy which constAules T. DETERMINATION AND EXTENT OF LIABILITY. in no event shalt the amount of insurance be greater than the
the basis of loss or damage and shall state,to the extent possible• This policy is a contract of indemnity against actual monetary Amount of Insurance staled in Schedule A.
the basis of calcuWing the amount of the loss or damage.If loss or damage sustained or incurred ty the insured clamant (c) Payment in full by any person or the voluntary safis-
the Company is prejudiced by the failure of an insured claimant vilho has suffered loss or damage by reason of matters insured faction or release of the insured mortgage Sha!1 terminate all
to provide IN required proof of loss or damage,the Company's against by this polity and only to the Went herein described- habrhty of the Company to an insured lender except as provided
obl&lions to such insured under the policy shall terminate. (a)The Irabrtrty of the to
under this policy to an in Section 2(a)of these Conditons and Stipulations.
including arty liability or obligation to defend,prosecute.or irsured lender shall not exceed the lest of:
continue any ligation,with regard to the matter or matters (i) the Amount of Insurance stated in Schedule A.or. 10- LIABILITY NONCUMULATIVE.
requiring such proof of loss or damage. if applicable,the amount of insurance as defined in Section 2(c) It is expressly understood that the amount of insurance uider
In addition,.an insured claimant may reasonably be required of these Conditions and Stipulations: this policy shalt be reduced by any amount the Company may
to submit to a rumination under oath by any authorized repre- (ii) the amount of the unpaid principal indebtedness pay under any policy insuring a mortgage to which exception
semative of tie Company and shall produce for examination. Secured by the insured mortgage as Iirrited or provided under is taken in Schedule B or to which the insured has agreed.
inspection anr.copying,at such reasonable times and places Section 8 of these Conditions and Slip Nations or as reduced assumed,or taken subject.or which is hereafter executed by
as maybe des ignated by arty authorized representative of the under Section 9 of these Conditions and Svpulaliois,at the bme an insured and which is a charge or hen on the estate or interest
Company,all nxords,books•ledgers,checks,correspondence the loss or damage insured against by this polar occurs, described or referred to in Schedule A.and the amount so paid
and memoraa Ia.whether beanng a date before or alter pate tcgether with interest thereon:or shall be deemed a payment under this policy to the insured
of Policy which masorabip pertain to the loss or damage-Further. (iii) Iiie difference between the value of the insured estate owner.
it requested fn any authorized representative of the Company, or interest as insured and the value of the insured estate or The provisions of this Section sha!1 not apply to an insured
the insured clt imant shall grant its permission,in writing.lot interest subject to the detect,hest of encumbrance insured iendef,unless such insured acquires We to said estate or interest
any authorize:l representative of the Company to examine, against by this policy. in satisfaction of the indebtedness secured by an insured
Inspect and cr)py all records,books,ledgers,checks,corre- (b) In the event the insured lender has acquired the es- mortgage.
spondence and memoranda in the custody or control of a third late or interest in the manner descr.bed in Section 2(a)of these
party.which reasonably pertain to the loss or damage.All Conditions and Stipulations or has conveyed the title,then the 11. PAYMENT Of LOSS-
information designated as confidential by an insured claimant liability of the Company shall cunt nue as set forth in Section (a) No payment shad be made witrnout producing this
provided to fix•Company pursuant to this Section shall not be 7(a)of these Conditions and Stipulations. polity for endorsement of the payment unless the policy has
disclosed to o'hefs unless,in the reasonable judgment of the Ic) The liability of the Company under this policy to an been lost or destroyed,in which case proof of loss or destruc-
Company,4 is necessary in the administration of the claim. insured owner of the estate or imerest in the Laid described tion shall be fumishel to the satisfaction of the Company.
Failure of an in cured claimant to submit for examination under in Schedule A shall P41 exceed the least oil: (b) When hahslifi and the extent of loss or damage has
Oath,produce]Icier reasonably requested information or grant (i) the Amount of Insurance staled in Schedule A.or. been definitely fixed in accordance with these Conditions and
permission to secure reasonably necessary information from (u) the difference between Ire&ue of the insured estate Stipulations.the loss Cr damage sha¢be payable*Zin 30 days
third parties a,required in this paragraph,unless prohibited or interest as insured and the value of the insured estate or thereafter.
Dy law Or gove'nmental regulation,shall terminate any liability interest subject to the defect. lien Or encumbrance insured
of the Comparq under this policy as to that insured for that claim. against by this polity. 12. SUBROGATION UPON PAYMENT OR SETTLEMENT.
(d) The Company will pay only Most!costs,attorneys'fees (a) The Company's Right of Subrogatlon.
B. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; and expenses ircurred in accordance with Section 4 of these Whenever We Company shall hate settled and pa d a claim
TERMINATION OF LIABILITY. Conditions and Stipulations. underthis policy,all right of subrogation shall vest in the Com-
in case of a claim Under this policy.the Company shall have parry unatfected by a,y act at the insured cialmant.
the following additioral options: $ LIMITATION OF LIABILITY. The Company shall be subrogated to and be enl:lled to all
(a} To Pay or Tender Payment of the Amount of Insurance (a) If the Company establishes the title,or removes the rights and remedies which the insured claimant would have had
or to Purchase the Indebtedness. alleged defect.hen or encumbrance,or cures the lack of a right against any person or property in respect to the claim hal this
(i) to pay or tender payment of the amount of insurance of access to or from the land,or cures tie claim of unmarket- policy not been issued.If requested by the Compx yt the insured
under this policy together with any costs,attorneys fees and ability of title•or otherwise establishes the lien of the insured claima-it sha!f tran5'er to the Company a!t rights and remedies
expenses incured by the insured claimant,which were author- mortgage,all as insured,in a reasonably diligem manner by against any person or property necessary in order to perfect
Led by the Co•npary,up to the bme of payment or tender of arty method, including litigation and the completion of any this right of subrogation.The insured claimant Shall permit the
payment and which the Company is obligated Ia pay;or appeals therefrom,it shall have fully performed its obligations Company to sue.compromise or settle in the name of the insured
(ii) in case loss or damage r5 claimed under this polcy with respect to that matter and Shall not be liable for any lass claimant and to use the name Of the insured cla.mant in any
by tie owner or the indebtedness secured by the insured mort- of damage caused the". transaction or litigation involving these rights or remedies
gage,to purchase the indebtedness secured by the insured [5) In the event of pry htigatxNi,LnCuding litigation by the If a payment on account of a claim does not fully cover Me
mortgage for>h I afrtOcni owing thereon together with arty costs, Compa7at"
Or with the Company's consent.the Comparry shall loss of the insured claimant,the Canipa.�yr Shall be subrogatied
attorneys'fees and expenses incurred by the insured claimant ham noablityforlossordamage until there has been a final (i)as to an insured ow•ter,to all rights and remedies in the pro-
which were authorized try the Company up to the time of determ by a court of competert lcrisdiction,and dispo- portion whch the Company s payment bears to the whole
purchase and%which the Company is obligated to pay. sition of all appeals therefrom• adverse to the titre. or, if amount of the loss:and(ii)as to an insured lender,to all rights
If the Compa-ry offers to purchase the kxWedness as herein applicable•to the lien of the insured mxtgage.as insured. and remedies of the insured cla;mart after the insured claimant
prov ded,the owner of the indebtedness shall transfer,assign, (c) The Company shall not De liable for loss or damage Shan hart recovered As principal,interest.and Costs of collection
and otirr•Ry the rtrdebtelriessand the insured mortgage.together to any insured for liability voluntarily assumed by the insured If loss should result from any act of the insured caimant.
with any collar Nal security,to the Company upon payment in settling arty claim or suit WPM the prior wriren consent as stated above,that ayI Shall not void this policy but the Com-
therefor of the Company parry•in that event,stall be required to pay only that part of
Upon the exercise by the Company Of the opt..on provided (d) The Company shall nct be liab a for: any losses insured against by this policy which shall exceed
for in paragraph a(i),all liability and ob!igal ons to the insured (i) any indebtedness created subsequent to Date of Polley the amount, if any. lost to the Company by reason of the
under this policy other than to make the payment required in except for advarices made to protect he km of the insured mort- impairment by the insured claimant of the Company's nghl of
that paragraph,shall terminate,including any liability or dblrga- gage and secured thereby and reasorab a amourtS expended subrogation.
Lion to defend,prosecute,or continue any ltigat on.and the to prevent deterioration of improvements:or (b) The Insured's Rights and Limitations
policy shall be surrendered to the Company for cancellation. (ii) construction loan advances made subsequent to Date Notwithstanding the foregoing.the owner of the indebted.
Upon the exercise by the Company of the Option provided of Policy.except construction loan advances made subsequent ness secured try an insured mortgage.provided the priorty of
for in paragrapi a(ri)the Company's obligation to an insured to Date of Poly for the purpose of Lnancirg in whole or in part the lien of the insured mortgage or its entorceab,l ty is not
Lender under it is policy for the claimed loss or damage,other the construction of an improvement to the land w hich at Date affected,may release or substitute the personal liaWity of any
than the payment required to be made.Shall terminate,including of Policy were secured by the insured mcrigage and which the debtor or guarantor•or extend of Otherwise modify the terms
any lability or obligation to defend,prosecute or continue any insured was and continued to be obligated to advance at and of payment•or release a portion of the estate or interest from
litigation. after Date of Policy the lien of the insured mortgage,of tlease airy collateral securty
(b) To Pay or Otherwise Settle W..th Parties Other than the for the indebtedness.
Insured or With the insured Claimant. 9. REDUCTION OF INSURANCE: When the permitted acts of the insured clamant occur aid
(i) to pay or otherwise settle with other parties for or REDUCTION OR TERMINATION OF LIABILITY_ the insured has knowledge of any claim of M*or interest adverse
in the name of an insured claimant any cta;m insured against (a) All payments under this poly.eytept payments made to the title to the estate or interest or the priority or enforce-
under this polic4 together with any costs,attorneys'fees and for costs,attorneys fees and expenses,stall reduce the amount ability of the lien of Ile insured mortgage• as insured. the
expenses incurred by the insured claimant which were author- of the insurance pro Canto.However,as to an insured lender,
ized by the Corr party up to the time of payment and which the any payments made prior to the acgaisitKxr of title to the estate
Company is ob ig3ted to pay:or or interest as provided in Section 2(a)of these Conditions and Iconl;need on back)
4001
CONDITIONS AND STIPULATIONS l
(Continued tram inside hack cover)
Company shall be required to pay only that part of arty losses arising out of or relating to this polity,any service of the Com- provision of this polity,this polity shall be Construed as a whole.
Insured against by this policy which shalt exceed the amount, pany in connection with its issuance or the breach of a polity (b) Any claim of loss or damage,whether or not based
0 arry.lost to the Company by reason of the impairment by the provision or other obligation.All arbitrable matters when the on negligence,and which arises out of the Status of the lien
insured claimant Of the Company's right of subrogation. Amount of insurance is S1.000.D00 or less shall be arbitrated of the insured mortgage or of the title to the estate or interest
(c)The Co mpa q's Rights Against Non-Insured Obligom at the option of either the Comparry or the insured.All arbitrable covered hereby or by any action asserting such clai m,shall be
The Company's right of subrogation against non-insured maters when the Amount of Insurance isn excess of$1.0 MI restricted to this policy.
Obligors shall exist and shall include,without limitation,the rights shall be arbitrated only when agreed to by both the Company (c) NO amendment of or endorsement to this policy can
of the insured to indemnities, quaramies, other policies of and the Insured.Arbitration pursuant to this policy and under be made except by a wrtting endorsed hereon or attached Hereto
insurance or bonds,notwithstanding any terms or conditions the Rules in effect on the date the demand for arbitration is made signed by either the President,a Vice President,the Secretary.
contained in those instruments which provide for subrogation or,at the option of the insured.the Rules in effect at Date of an Assistant Secretary, or validating officer or authorized
rights by reason of this policy. Policy shall be binding upon the parties.The award may include signatory of the Company.
The Company s right of subrogation shalt not be avoided by attorneys fees only if the laws of the state in which the land
acquisition of the insured mortgage by an obligor(except an Is located permit a court to award attorneys fees to a prevailing 15. SEYERABUTY.
obligor described In Section 1(a)(n)of these Conditions and party.Judgment upon the award rendered by the Arbitrators) In the event any provision of this policy is held invalid or
Stipulations)who acquires the insured mortgage as a result may be entered in any court having jurisdiction thereof. unenforceable under applicable taw.the policy shall be deemed
of an indemnity,guarantee,other polity of insurance,or bond The law of the situs of the land shalt apply to an arbitration not to include that provision and all other provisions shall remain
and the obligor will not be an insured under this ppoolIo not- under the Title Insurance Arbitration Rules. in full force and effect.
withstanding Section Ila)(d of Ihese Conditions and Stipulations. A copy of the Rules may be obtained from the Company upon
request. 16. NOTICES,WHERE SENT.
11 ARBITRATION. All notices,required to be given the Company and any state-
Unless prohibited by applicable law,either the Compa or 14. LIABILITY LIMITED TO THIS POLICY. ment in writing required to be furnished the Company shall
the insured may demand arbitration pursuant to the rTitle POLICY ENTIRE CONTRACT. include the number of this policy and shall be addressed to
Insurance Arbitration Rules of the American Arbitration Asses a) This policy together with all endorsements, if any, the Company at 6800 College Blvd.,Suite 10Q Overland Park,
eiation.Arbitrable matters may include,but are not limited to, artac hereto by the Company Is the entire policy and con- Kansas 66211.or to the office which issued this polity.
any controversy or claim between the Company and the insured tract between the insured and the Company.In interpreting any
POLICY OF TITLE INSURANCE
TRW Title
Insurance Company
6800 College Blvd.,Suite MO/Overland Park, KS 66211
Area Code 913 491-5585
4001
CLTA STANDARD POLICY
SC1EDU E A
TCITAL FEE FOR TITLE, EYAVMalVM ICVN
AND TITLE INSfJRPNC£ $50.00
AMOUNT OF INSURANCE: $6,140.50
(XoER NO. 216737-3
POLICY NO. SP 101-125542
DATE OF POLICY: MARCH 21, 1994
AT: 8:00 A.M.
1. NAME OF INSURED:
THE CITY OF HUNTIN010a BEACH, A MUNICIPAL CO3RPU AT ON
2. THE ESTATE OR INTEREST IN THE LAND DESCRIBED IN SCHEDULE A AND MUCH IS
COVERED BY THIS POLICY IS: A CCtMCKDTlTM AS DEFINED IN SECTION 783 OF THE
CALIFORNIA CIVIL CODE, IN FEE.
3. THE ESTATE OR INTEREST REFERRED TO HEREIN, IS AT HATE OF POLICY VESTED IN:
TAM NHU MANG, AN []*P,RRIED W MW
ORDER NO.: 216737-3 Q)CLTA STANDARD POLICY
PA3E NO. : 2
SCHEDULE A
(CONTINUED)
4. THE LAND RF.FEERRE TO IN THIS POLICY IS DE92RIBID AS FOLLOKS:
THE LAND IS SITUATED IN THE
STATE OF CALIFORN4 A
COUNTY OF ORALN E
PARCEL 1: US= NO. 37, CONSISTING OF CERTAIN AIRSPACE AND SURFACE ELEMENTS, AS
SHDVU AND DESCRIBED IN THE C NIDCNdI TlUlM PLAN ("PLAN°) FOR BRISAS DEL MAR LOC ATE
CV LOT 1 OF TRACT 14757, AS SHOWN ON A SUBDIVISION MAP RECORDED OU SEPTIIMBER 1,
1993, IN BOOK 701, PAGES 42 THROUCR 43, INCLUSIVE OF MISCELA CUS NAPS, IN THE
OFFICE OF THE ORANGE OOUlCA' RECORDER ("OFFICIAL RECORDS") , IR IIC H PLAN WAS
REODRDED ON SEPTIISUR 15, 1993, AS ASSTR mur NO. 93-0621742, OF OFFICIAL
REOORDS, CALIFORNIA.
PARCEL 2: AN UNDIVIDED ONE FORTY—FOURTH (1/44) FEE SIMPLE INTEREST AS A TENANT
IN Q7+' 0M IN AND TD NODULE B SHOWN ON THE PLAT AND DEFINED IN THE DECLARATION
REFERRED T D BELOW AS THE "COMMON AREA".
EXCEPT THEREFROM ALL OIL, GAS, MINERALS. A'�ID OTHER HYDROCARBON SUBSTANCES LYIN;
BE OR A DEPTH OF 500 FEET WIAJUT ANY EIGHT TO ENMR UPCU THE SURFACE OR THE
SCT3SURFACE OF SAID LAND ABOVE A DEPTH OF 500 FEET, AS PROVIDED IN INS OF
RE:J=.
PN'2CEL 3: NONEXC USIVE FASD�IS FOR ACCESS, INGRESS, EGRESS, USE, ENUOYr Egr,
DRY, ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS AND FOR OTHER PURPOSES, ALL
AS MAY BE SHOKU IN THE PLAN, AND AS ARE DESCRIBED IN THE DECLARATION.
PARCEL 4: EXCLUSIVE EASEMENTS AEVURTEmNir TO PARCELS NO. 1 AND NO. 2 DFSQ MIRED
ABOVE FOR USE FOR PARlQNlG PUMKEES DE93UMED AS EXMIZIVE USE AREAS IN THE
=IPAIUJIL OVER PORTIONS OF LOT 1 OF TRACT 14757 SHO4N AND ASSIG= IN THE
Pr.MVT.
PARCEL 5: AN EXCLUSIVE EASII++T it APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED
ABOVE, FOR USE FOR PATIO, BALCONY, AND FIRE ESCAPE STAIRCASE PURPOSES DESCCtiBID
AS EXhISIVE USE AREAS IN THE DECLARATION, AS APPLICABLE, OVER PORTIONS OF LOT 1
OF TRACT 14757 AS SHOWN, ASSIGNED AND DESCRIBED IN THE PLAN.
C RC R NO.: 216737-3 W)CLTP, STANDARD POLICY
PAGE NO. : 3
SCHEDULE B
EXCEPTIONS FROM OV% AGE
THIS POLICY DOES VOT INSURE AGAINST Loss OR DA[MGE (AMID THE COMPANY WILL NOT PAY
COSTS, ATTORNEYS' FEES OR ) WHICH ARISE BY REASON OF:
PART I
1. TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY THE RECCE OF
ANY TAXIING AU111DRITY THAT LEVIES TAXES OR ASSESSMENTS ON REAL PROPERTY OR BY
THE PUBLIC RECORDS. PR{OC£EDEWN30 BY A PUBLIC AGENCY WHICH MAY RESULT IN
TAXES , OR NOTICES OF SUCH PROC'EEDINISS, WHETHER CR NOT SlHIORU
BY THE RECORDS OF SUCH AGaNCY OR BY THE; PUBLIC RECORAS.
2. ANY FACTS, RIOTS, INTERESTS, CR CLAIMS WHICH ARE NOT SHOW BY THE PUBLIC
RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION OF THE LAND OR I IICH
MY BE ASSERTED BY PERSONS ITN POSSESSION THEREOF.
3. EASEMENTS, LIENS OR ENCUM4 RwAQ S, OR CLAIMS THEREOF, WHICH ARE NOT SH(M BY
THE PUBLIC RECORDS.
4. DISCREPANCIES, CONFLICTS IN BOUNDARY LINES, SH01=0 IN AREA,
OR ANY a HER FACTS WHICH A CORRECT ECT SURVEY WOULD DISCLOSE, AND
WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS.
5. (A) UNPATENTED IKU093 CLAIMS: (B) RESERVATIONS OR EXCEPTICNL IN PATENTS OR
IN ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER RIGHTS, CLAIMS TO TITLE
70 WATER, ME"= OR NOT THE MMMIR.S EX ElPT D trlDER (A) , (B) CR (C) ARE
SHOWN BY THE PUBLIC RECCE.
IN
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ORDER NO.: 216737-3
PN3E IND. . 5
9. THE TERMS, PROVISIONS AND CONDITIONS CONTAINED IN A DOCUMENT' ENTITLE
"AFFORDABLE H30SING RESTRICTION AND COVENANT, EXDC UIZED BY AND BE5WEEN
BFAC1-LFRONT IA E STREET PROPERTIES AND THE CITY OF H[NTINGIO N' BEACH, RECORDED
SEIPYT ER 2, 1987 AS INSTRUMENT NO. 87-500026 OF OFFICIAL RECORDS.
10. AN EASEMENT FOR PUBLIC UTILITIES AND -01= ENL7AL, PURPOSES, AS G ANTTED TO
SC7UIf�tNI CALIFORNIA, E DISCN COMINY, A CURPORATICuT, IN DE® RE AWED AS
Il�STftLMENT NO. 87-534842 OF OFFICIAL RECORDS, AlCMN THAT P01MO 1 OF SAID
LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT.
11. AN EASsTT FOR T++= MAIN AND RKMDE 7AT. DES, AS GRANTED TO THE CITY
OF FKUZ9M N T=3 BEACH, A MUNICIPAL CORPORATION IN THE DEED REDO 00ED AS
IN:S'TRUIIENIT NO. 87-583411 OF OFFICIAL RECORDS, ALCM THAT PORTION OF SAID
LAND AS MORE PARTICULARLY DESCRIED IN SAID INSTRUMENT.
12. THE EFFECT OF A SUBSURFACE OIL AND GAS LEASE, Emu= BY GILBERT M. WILSCN
AND ELE711OR E. WILE114, HUSBANID AND WIFE, AS LESSOR, AND MX11S PEZROLEUM
CORPORATION, A DELNKARE CORPORATION, AS LESSEE, RECORDED APRIL 18, 1989 AS
INSIRLN = NO. 89-201848 OF OFFICIAL RECORDS, COVERING THE LAND LYING BELOW
A DEPTH OF FIVE HAZWD (500) FEET FROM THE SURFACE THEREOF, WITHOUT THE
RDGRT OF SURFACE ENTRY ABOVE SAID DEPTH, FOR THE PERIOD AND UPON THE TERMS,
COVE tUATTS AND C CEUTICNS TH MEM9 PRCNIDED, REtaRU1 CE BEING MADE TO THE
RECORD THEREOF FOR FULL PARTICULARS.
23. THE TERMS, PROVISIaNS AMID CONDITIONS OCiTY1II D IN A LOWI NT E TI'ITL D
„DECLARATION OF RFSTRICTICNS AND SUBDr ISION CONSENTS", EXECUTED BY DE LANARE
II, A CALIFORNIA 11IMITED PARRXNERSHIP, RECORDED APRIL 6, 1993 AS INSTRUU EN1T
NO. 93-0230267 OF OFFICIAL REOORDS.
14. THE FACT THAT THE C;=S OF SAID LAND HAVE NO RIOT OF VEHICULAR ACCESS Zn
DEI�RE STREET, UTICA AVENUE AMID CALIFORNIA, SIRE or, EXCEPT AT SPECIFIED
POINTS, SAID RIG rS HAVING BEEN REIDTNPUISfE D BY DEDICATION PROVISIONS ON1 THE
MAP OF SAID TRACT.
is. AN INLSIRUM,ENT ENTITLED "CONDC MnTILM PLAN" RECORDED SEP IEMBIIt 15, 1993 AS
INSTRUMENT NO. 93-0621742 OF OFFICIAL RECORDS; REFERENCE BEING MADE TO THE
WORD THEREOF FOR FULL PARTICULARS.
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CIZMZ NO.: 216737-3 L/
WE NO. : 7
20. DEED OF TRUST TO SECURE A-N
PUTT: $23,000.00
TRUSI R: TAMS HOAM
TRUSTF : THE CITY OF HU TT193MON BEACH, A MUNICIPAL CORPORATION
BENEFICIARY: THE RE EVELOFMEgT AGENcY OF THE CITY OF HCNVTIl G=Dl
BEACH, A PUBLIC BODY CORPORATE AND POLITIC
DATED:, MPStCH 16, 1994
RECORDED: MARCH 21, 1994 AS INSTRUAENT NO. 94-0196686, OF OFFICIAL
RECORDS
21. DEED OF TRUST TO SECURE AN
AMOUNT: $6,142.50
'IRL]S'IC R: TAWEHO MN
TRUSTEE: THE REDEVELAPME RT AC ENCY OF THE CITY OF HifiTTIlUCa'ICN
BEACH, A PUBLIC BODY CORPORATE AMID POLITIC
BENEFICIARY: THE CITY OF HCNTINCPOW BEACH, A MUNICIPAL CORPORATION
DATED: MARCH 16, 1994
REC7RDID: MARCH 21, 1994 AS INSTRUKEir NO. 94-0196687, OF OFFICIAL
RECUW
'CONDOMINIUM PLAN SNaef•f f�o
•1.MIT_AIRSPACE_DIMTNSION PLAN: SCALE: 1" r 16• �
r
BUILDING "0" RPM
UPPER LEVEL ,-
r UNITS 32'THRU-44- _ t:
U
A WILL UM CT1[7
� 37
r L•Aj�'
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e e d w a r
w;a� ]r42• ceME
M•
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it! . ..
r• •ruo�.� 40 �
6 X- -
• �, , Ex�IR10R NtLL L CI7PI �+
i
0
. NOT£Ss -
1. • IN'DICATES CO4MON BUILDING CON`MOL POINT. �
2. SEE SHEET 6 FOR BOUNDARY PLAT.. - •.y
3. -SHE SHEET 7 FOR BUILDING LOCATION PLAN.
4. SEE SHEETS 8 THRU 19 FOR UNIT AIRSPACE DIMENSION PLL4S.
'S. SSE SHEETS 20 THRU 23 FOR S=ULES OF TYPICAL UNIT VERTICAL SECTICt�S.
6. SEE SMTS_24 THRU 27 FOR TYPI.AL UNIT VERTICAL SECTIONS. .vT,.}AL
7. SEE SHEET 28 FOR OPEN PARKING LOCATION PLAN.
.� .ww •. ww ..w .. aw_ "—..r_...�� a. •.�w�7�.• 7.7�•...�7l.N• •� -____
CONDITIONS AND STIPULATIONS
(Contiruied from inside front cover)
terminate,incLiding arty liability or obligation to defend.prose- (ii) to parr or otherwise settle wits the insured claimant Stipulations shall not reduce pro tanto the amount of insurance
cute.or contirue any litigation.with regard to the matter or the loss or damage provided for under this policy.together with atforded under this policy as to any such insured.except to the
t matters requir ng such cooperation. ary costs.attorreys fees and expenses incurred by the insured extent that the payments reduce the amount of the indebted-
claimant which were authorized W the Cxnpany up to the time ness secured by the insured mortgage.
' 5. PROOF 01 LOSS OR DAMAGE. of payment and which the Comparry is obligated to pay (b) Payment in part try arty person of the pnnc-pal of the
In addition t)and after the notices required under Section Upon the exe*cise by the Company cf either of the options indebtedness,or any other obligat on secured by the insured
3 of these Con iitlons and Stipulations have been provided the provided for in paragraphs b(ii),the Company's obligations to mortgage,or any volurtlary partial sat:sfactan or release of the
Company,a proof of foss or damage signed and swom to by the insured under this policy for the claimed loss or damage, insured mortgage•to the extent of the paymen a.sahstactral
each insured vaimarn shall be furnished to the Company within other than the paymeris required to be made,shall terminate, or release.shall reduce the amount of insurance pro canto.The
! 90 days after It insured claimant shay ascertain the facts giving including any liability or obligation to defend, prosecute or amount of insurance may thereafter be increased by accruing
rise to the loss or damage.The proof of loss or damage shall continue any litigation. interest and advances made to protect the lien of the insured
describe the defect in,or lien or encumbrance on the title.or mortgage and secured thereby.will interest thereon•provided
other matter insured against by this policy which constitutes T. DETERMINATION AND EXTENT OF LIABILITY. in no event shall the amount of insurance be greater than the
the basis of loss or damage and shall state•to the extent possible. This policy is a contract of indernvty against actual monelary Amount of Insurance stated in Schedule A.
the basis of c,Icu!ati.•ig the amount of the loss or damage.If loss or damage Sustained or incurred bi the insured claimant (c) Payment in full by any person or the voluntary satis-
the Company 4 prejudiced by the failure of an insured claimant who has suffered loss or damage by reason of ma7ers insured faction or release of the insured mortgage SUI terminate all
to provide the require?proof of loss or damage,the Company's against by this policy and only to the extent herein described. liability of the Compary to an insured lender except as provided
obligations to such insured under the policy shall terminate. (a)The liability of the Company under this pohcy to an in Section 2(a)of these Conditions and Stipulations.
including any liability or obligation to defend.prosecute. or insured lender shall not exceed ire least of:
continue arty litigation,with regard to the matter or matters (i) the Amount of Insurance stated in Schedule A.or. 10. LIABILITY NONCUMULATIVE.
requiring suet proof o1 loss or damage. if applicable•the amount of insurance as defined in Section 2(c) It is expressly understood that the amount of insurance u:nde•
In addition,an insured claimant may reasonably be required of these Conditions and Stipulations: this policy shall be reduced by any amount the Company may
to submit to a ramination under oath by any autf orized repre- (ii) the amount of the unpaid principal indebtedness pay under any policy insuring a mortgage to which exception
Serratnve of U:a Company and shall produce for examination, secured by the insured mortgage as lirrrted or provided under is taken in Schedule B or to which the insured has agreed,
inspection anc copying.at such reasonable times and places Section B of these Conditions and Strp•ilafrons or as reduced assumed,or taken subject.or which is hereafter executed by
as may be designated by arty authorized representative of the under Section 9 of these Conditions and Stipulatro•ns,at the time an insured and which is a charge or ken on the estate or interest
Company all records.books.ledgers.checks,correspondence the loss or damage insured against by this policy occurs• described or referred to in Schedule A.and the amount So paid
and memoran la,whether bearing a date before or after Date tcgether with interest thereon:or shall be deemed a payment Under this policy to the insured
of Policy which reasonably pertain to the loss or damage.Further, (iit) the difference between the value of the insured estate owner.
it requested tr;any authorized representative of the Company. or interest as insured and the value of the insured estate or The provisions of this Section shall not apply to an insured
the insured c4]mant shall grant its permission,in writing,for interest subject to the defect,lies or encumbrance insured lender,unless such insured acquires title to sad estate or Interest
I any authorize) representative of the Company to examine, against by thus policy. in satisfaction of the indebtedness secured by an insured
inspect and copy all records,books,ledgers,checks,corre- (b) In the event the insured fende-has acquired the es- mortgage
spondence as i memoranda in the custody or control of a third tate or interest in the manner described n Section 2(a)of these
party, which reasonably pertain to the loss or damage. All Conditions and Stipulations or has corn eyed the title,then the 11. PAYMENT OF LOSS.
information designated as confidential by an insured Claimant IiabiLty of the Company shall continue as set forth in Section (a) No payment shall be made without producing Ih.s
provided to th!;Company pursuant to this Section shall not be 7(a)of these Conditions and Stipul3tions. policy for endorsement of the payment unless the policy has
disclosed to o:hers unless,in the reasonable judgment of the (c) The liability of the Company under this policy to an been lost or destroyed,in which case proof of loss or destruc-
Compary.4 b.necessary in the administration of the claim. insured owner of the estate or interest in the land described bon shall be furnished to the satistactxxn Of the Company
Failure of an irsured claimant to submit for examination under in Schedule A shall not exceed tre least of: (b) When liability and the extent of loss or damage has
oath,produce other reasonably requested inlormaticin or grant i) the Amount of Insurance slated in Schedule A;or. been definitely fixed in accordance with these Cone;ions and
permission to secure reasonably necessary information from �ii) the difference between the value of the insured esta a Stipulations,the loss or damage shall be payable within 30 days
third parties as required in this paragraph,unless prohibited or interest as insured and the value of the insured estate or thereafter
by law or governmental regulation,shall terminate arty liability irterest subject to the defect. lien or encumbrance insured
of the Company under this policy as to that ensured for that claim. against by this policy 12. SUBROGATION UPON PAYMENT OR SETTLEMENT
i (d) The Company will pay only those costs.attorneys'fees (a) The Company's Right of Subrogation.
6 OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; and expenses incurred in accordance with Section 4 of these Whenever the Company shall have settled and paid a Claim
7ERMINtTION Of LIABILITY. Conditions and Stipulations. under this policy,all rght of subrogation sha!I vest in the Com-
In case of a claim under this policy,the Company shall have parry unaflected by any act of the insured claimant.
the following addrlioial options: B. LIMITATION OF LIABILITY. The Company sha!]be subrogated to and be entitled to all
(a) To Pay or Tender Payment of the Amount of Insurance (a) If the Company establishes the title,or removes the rights and remedies vibich the insured Clamant would have had
or to Purchas:the Indebtedness. alleged defect,lien or encumbrance•or cures the lack of a right against any person or property in respect to the clad had this
(i) to Fay or tender payment of the amount of insurance of access to or Irom the land•or cures he claim of unmarket- policy not been issued.If requested by the Company.the nsured
under this pol cy together with any costs,attorney$'fees and ability of title,cr otherwise estab!ishes the lien of the insured claimant shall transfer to the Company all rights and remedies
expenses inCLrred by the insured claimant,which were author- mortgage,all as insured,in a reasona)ly diligent manner by against any person or property necessary in order to perfect
Ized by the Company.up to the time of payment or tender of aly method, including litigation and-he comp'etion Of any this right of subrogation.The insured clamant Shall permit the
paymern and which the Company is obligated to pay:or appeals therelrum,it shah have fully performed its obligations Company to sue.compromise orselle in the name of the insured
i (ii) in case loss or damage is claimed under this policy with respect 10 that matter and Stall not be kab'e for arty loss claimant and to use the name o1 the insured claimant in any
by the owner If Tine indebtedness secured by the insured mart- o•damage caused thereby transaction or litigation involving these rights or remedies.
gage,to purcuse the indebtedness secured try the insured (b) In the event of any litiga:i0n,in.;ludi:ig litigation by the It a payment on account of a claim does not fully corer the
mortgage lot Cie amnt awing thereon together with any costs, Company or with the Company's constant,the Comparry shall loss of the insured claimant,the Company shall be subrogated
attorneys'fees and expenses incurred by the insured claimant have no liability for loss or damage unt I there has been a final (i)as to an insured owner,to all nghts and remedies in the pro-
which were authonZed by the Company up to the time of determination by a court of competent jurisdiction,and dispo- Portion which the Company's payment bears to the whole
purchase and which the Company is obl gated to pay s tion of all appeals therefrom. adverse to the lit!e. or, d amount of the loss;a-id(it)as to ai insured leader•to a'.l rights
II the Comp try otters to purchase the indebtedness as herein aap!:cable.to the lien of the insured mortgage.as insured. and remedies of the insured c!ai:nant alter the insured claimant
provided.the]caner of the indebtedness shall transfer,assign, (c) The Company shall not be liable for loss or damage stall have recovered its principal,interest,add Coss of collection.
and cor"Ry ttx indebtedness and the insured mortgage•together to any insured for liability voluntarily assumed by the insured If loss should result from any act of the insured cla-mart.
with any coltzlerat security•to the Company Upon payment in settling any claim or suit without IN!prior written consent as sha-ed above,that act shall not void this policy.but the Com-
the•efor. of Use Company- parry in that event.shall be required to pay only that pan of
Upon the a rercise by the Company of the option provided (d) The Company shall not be liable for: any losses Insured against by this poky which shall exceed
for in paragraph a(i),all liability and obligations to the insured (r) any indebtedness created Stu tquent to Date of Policy the amount. it any, lost to the Company by reason of the
under this po ley.other than to make the payment required in except for advances made to protect the Cron of the insured Mort- impairment by the insured Claimant of the Company's right of
that paragraphs,sha!I terminate,including any habiL•ry or obliga- gage and secured thereby and reasonable amounts expended subrogation.
tion to defenc,prosecute,or continue any litigation,and the to prevent deterioration of improvements:or (b) The Insured's Rights and Limitations,
pol cy shall b::surrendered to the Comparry for cancellation. (ii) construction ban advances made subsequent to Cale Notwithstanding the foregoing,the owner of the indebted-
Upon the a xercise by the Company of the option provided of Policy,except construction ban adva ices made subsequent ness secured by an insured mortgage.provided the priority of
for in paragraph a(ii)the Company's obligation to an insured to Date of Policy for the purpose of haancirg in whole or in part the lien of the insured mortgage or its enforceability is not
Lerder under this policy for the claimed loss or damage,other the construction of an improvement to the land which at Dale affected,may release or substitute the personal hatility of any
trial at payment reg:nred to be trade•shall terminate,including of Policy were secured by the insured Mortgage and which the debtor or guarantor,or extend or otherwise mod:..the terms
any fiabil:ty or obligation to defend.prosecute or continue any insured was and continued to be obligated to alvance at and of payment,or release a portion of the estate or interest from
litigation. after Date of Policy the lien of the insured mortgage.or release any conaterat security
(b) To Pay or Otherwise Settle With Parties Other than the for the indebtedness.
Insured or W th the Insured Claimant. 9. REDUCTION OF INSURANCE; When the permitted acts of the insured claimant occur and
(I) to pay or otherwise settle with other parties for or REDUCTION OR TERMINATION OF LIABILITY. the insured has knowledge of arty claim of trite or interest adverse
in the name cf an insured claimant arty claim insured against (a) All payments under this policy.except payments made to the title to the estate or interest or the prionty or enforce-
under this policy,together with any costs.attorneys'fees and for costs,anorreys'lees and expenses,shall reduce the amount ability of the lien of the insured mortgage, as insured, the
expenses incurred try the insured claimant which were author. of the insurance pro tanlo.However,as to an insured lender•
ized by the Ccmparry up to the time of payment and which the any payments made prior to the acquisition of bte to the estate
Company is obligated to pay:or or interest as provided in Section 2(3)of these Conditions and (conlnued on back)
4001
i
CONDITIONS AND STIPULATIONS
(Continued from inside bac! cover)
Company shall be required to pay Oi�y that part of any losses arising out of or relating to this policy,arty service of the Com- provision of this policy.this policy shall be construed as a whole.
insured against by this policy which Shad exceed the amount, pany in connection with its issuance or the breach of a policy (b) Any claim of loss or damage,whether or not based
if any.lost to the Company by reason of the impairment by the provision or other obligation.All arbitrable mailers when the on negligence,and which arises out of the status of the Gen
insured claimant of the Company's right of subrogation. Amount of insurance is 5900.000 or less shalt be arbitrated of the insured mortgage or of the title to the estate or interest
(c) The Comparro Rights Ag nst Hon-Insured Obligors, at the option of either the Company orthe insured.Alt arbitrable covered hereby or by any action asserting such claim,shall be
The Companys right of subrogation against non-insured matters when the Amount of Insurance is in excess of$1A00.000 restricted to this policy.
obligors shall exist and shall include,without limitation,the rights shall be arbitrated only when agreed to by both the Company (c) No amendment of or endorsement to this policy can
of the insured to indemnities, guaranties, other policies of and the insured.Arbitration pursuant to this policy and under be made except by a writing endorsed hereon or attached hereto
insurance or bonds,notwithstanding any terms or conditions the Rules in effect on the date the demand for arbitration is made signed by either the President,a Vice President,the Secretary,
contained in those instruments which provide for subrogation or,at the option of the insured,the Rules in effect at Date of an Assistant Secretary, or validating officer or authorized
rights by reason of this policy. Policy shall be binding upon the parties.The award may include signatory of the Company.
The Company's right of subrogation shalt not be avoided by attorneys'fees only if the laws of the state In which the land
acquisition of the insured mortgage by an obligor(except an is located permit a court to award attorneys'fees to a prevailing 15. SEVERABILITY.
obligor described In Section 1(a)(ii)of these Conditions and parry.Judgment upon the award rendered by the Arbitrator(s) In the event any provision of this policy is held invalid or
Stipulations)who acquires the insured mortgage as a result may be entered in arty court having jurisdiction thereof. unenforceable under applicable law,the policy shall be deemed
of an indemnity,guarantee,other policy of insurance.or bond The law of the situs of the land shall apply to an arbitration not to include that provision and all other provisions stall remain
and the obligor will not be an insured under this policy,not- under the Title Insurance Arbitration Rules. In full force and effect.
withstanding Section 1(a)(i)of these Conditions and Stipulations. A copy of the Rules may be obtained from the Company upon
request. 16. NOTICES,WHERE SENTT,
11. ARBITRATION. All notices,required to be n the Company and any state-
Unless prohibited by applicable law,either the Company or 14, LIABIUTY LIMITED TO THIS POLICY; ment in writing required tote"tumished the Company shall
the Insured may demand arbitration pursuant to the Tille POLICY ENTIRE CONTRACT. include the number of this policy and shall be addressed to
Insurance Arbitration Rules of the American Arbitration Asso- (a) This policy together with all endorsements, if any. the Company at 6800 College Blvd.,Suite 700,Overland Park.
ciation.Arbitrable matters may include,but are not limited to. attached hereto by the Company is the entire policy and con- Kansas 66211,or to the office which issued this policy.
any controversy or claim between the Company and the insured tract between the insured and the Company.In interpreting any
POLICY OF TITLE INSURANCE
TRIM Title
Insurance Company
6800 College Blvd.,Suite 70010verland Park, KS 66211
Area Code 913 491-5585
4001
a
REQUEST FOR COUNCILIREDEVELOPAIENT
AGENCY ACTION
ED 94-06
Date: February 22, 1994
Submitted to: Honorable Mayor/Chairman and City CouncillAgency Members
Submitted by: Michael T. Uberuaga, City Administrator/Executive Director ;F,,iL
Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic Development
Subject: DOWN PAY141ENT ASSISTANCE PROGRAM--PARTICIPANT
APPROVAL
APPROVED BY CITY COUNCIL
Consistent v+ith Council Policy? [ l Yes [ ]New Policy or Exception Z _ x S lsp�(
Statement of Issue, Recommendation, Analysis, Funding Source, Afteri afire Actions, At a ts:
K
STATEI�TENT OF ISSM
Huntington Beach City Charter, Section 613, requires that each complete contract with a
borrower in the Community Development Block Grant and Redevelopment funded Down
Payment Assistance Programs must be approved by the City Council/Agency.
RE f 0�TENDED E MCIL AU-10-N:
1. Approve and incorporate each listing, which names specific participants, the amount of each
loan and the specific property subject to trust deed, into a previously approved sample Down
Payment Assistance Loan Agreement (hereinafter "Agreement").
2. Authorize the Mayor to execute and the City Clerk to attest to each Agreement between the
city and/or Agency each participant as approved herein.
3. Release funds for Down Payment Assistance Program participants.
ANALYSIS
As part of the 1993-94 Community Development Block Grant Program the Citizen Advisory
Board recommended and the Council approved $200,000 as a pilot program to provide Down
Payment Assistance to moderate income households and since that time the details of the program
have been approved by the City Council.
RCA ED 94-06
February 22, 1994
Page two
On November 1, 1993, the Redevelopment Agency approved $400,000 in Redevelopment
Housing Set-Aside funds to assist up to fourteen low-income buyers in the Brisas del Mar
Condominium project. The low-income borrowers herein are participants in this program and
some may be participants in the CDBG program as well.
Huntington Beach City Charter, Section 613, requires the City Council to approve each contract
in writing, including the Down Payment Assistance Program contracts. To complete each
Agreement, the listing of potential participants, the amount of money loaned and the property
subject to trust deed must be approved and incorporated into the Agreement by the City Council
(see attached listing). It is recommended by staff that each listing be incorporated in the
Agreement and approved at this time. Additional borrowers will be recommended until the funds
are expended.
Staff has reviewed the application of Barbara Dieckmeyer and recommends approval based on the
following changes to the program guidelines.
1. For sole proprietor businesses, a two year period (rather than one year) must be used to
establish eligibility for low-income households.
2. Assets will be allowed for both personal savings/checking and business savings/checking.
Business assets are allowed to exceed the$10,000 limit set for personal savings/checking.
ALTERNATU S:
Do not approve the participants.
EMINCz E•
Community Development Block Grant-- $200,000 total appropriation.
Redevelopment Agency Housing Set-aside- $400,000 total, appropriation.
MTU/BAK/SVK Jar
920j
p ow�PA NT
A S DISTANCE MO GRAM .
Loan Location of Property
am Amount Suhiect to Trust Deed
94-6 Barbara Dieckmeyer $23,000 (Set-Aside) 409 Utica #B-21
94-10 Tam Hoang $23,000 (Set-Aside) 409 Utica#D-37
6,142.50 (CDBG)