HomeMy WebLinkAboutTERESA LaREINE QUICK - 1994-08-11 OFFICE OF THE CITY CLERK
_ CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
MulmNGTON IfACH
TO: Future City Clerks and Deputy City Clerks
FROM: Janelle Case, Deputy City Clerk per Instructions by Connie Brockway, City
Clerk
SUBJECT: Down Payment Assistance Forgivable Loans
DATE: September 16, 1999
The attached documents are included in this file to assist you in the fJture to determine
the forgiveability of the down payment assistance loans.
DOWN PAYMENT ASSISTANCE PROGRAM
Pacific Part Villas
CouncillAgency
_Loan No. Name _ _ Property_Address Amount Date
95-01- Carillo_ 786,Ana --'�_—� _ 1 Happy Drive#102 92_648 -- -35,00_0 -� _--�_1/3/95
Lawrence, JameslJeanette 18051 Joyful Lane#101A 92648 35,000 _ _ 1/3/9_5
95-03 Wong,Wesley 7861 Happry Drive#202 92648 --35,000 1/3195
V 95-04 Hacker, Christopher&Vandereb, Gayle 7861 Happy Drive#101 92648 35,000 1/3195
95-06 Rivera,Victor&Burgess, Debra _ __ 18067 Joyful Lane#104.92648_ 35,000 _ 413195 ,
96-01 t/ Heckethome, Sean/Jacquelyn---n^_ - 787-1 Happy_Drive#102_92648 _ _ _35,000 _ 1/_16/9_6
96-02 - Margolis, Peter 18051 Joyful Lane#104 92648 - 35,000 —314/96
96-03 Wienfeld.Julie 18061 Joyful Lane#205 92648 _ 35,000 — r 41119_6
9M4 Peltier, Edward 7871 Happy Drive#201 92648 35,000 T 7115/96
96-05 Wallace, Barbara Jo 18051 Joyful Lane#20 5 92648 35.000 8/5196
96-06 Murch. G regory s. 18051 Joyful Lane#10_2_926_48 35.000 8/5196
97-41 Krueck,_Deborah J. •- --- - 18061 Joyful lane#103 92648_ _ —_35,000 _ _ 11_21197
97-02 Osterhauelt, Robert/Kathy 18061 Joyful Lane#102 92648 _ - 35,000 4130197
97-03 Hosseinali, Faroukh 18061 Joyful Lane#201 92648 _ 35,000 515197
97-04 Torchione, Richard 118051 Joyful Lane#201 92648 1 6-00 .-711197 ?
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CITY OF HUNTINGTON BEACH
Inter-Department Communication
TO: Gus Duran, Economic Development
FROM: Gail Hutton, City Attorney
DATE: June 1, 1999
SUBJECT: Determination of Loan Forgiveness
RLS 99-359
INDEX:
BACKGROUND
You have asked for a determination of whether several loans made by the City of Community
Development Block Grant funds, for the first time home buyer down payment assistance
program,are forgivable.
ISSUE
Are the nine loans forgivable?
ANSWER
Yes,if they were funded with the first S 100,000 appropriated for this program.
ANALYSIS
As part of the 1993-94 CDBG program the City Council approved S 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:
10/25/93:The City Council approved sample loan documents and four participants:Diane
Culaciati,Michele TulIock, Osman Taban, and Caroline Sutherland in the total amount of
$40,475. (RCA attached hereto as Attachment 1).
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11/15/93: The City Council was requested to approve and additional S100,000 in CDBG funds
for the program. The Council deferred the item to December 6, 1993. (RCA attached hereto as
Attachment 2).
I2/6/93: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$8,600 to$10,600. (RCA attached hereto as Attachment 4.)
12/20/93,Item F-2:The City Council approved an additional S100,000 for the program,but
changed the program to require repayrrient of these additional funds. There are two important
attachments to this RCA. The first is entitled"Approved Participants,"and lists the following
six participants: Culiaciati,Taban, Sutherland,Schmaderer,Kanarski, and Kormeluk, in the total
amount of$61,952?
The second important document attached to this RCA is the list of"Pending Participants" It
shows eight more participants in the total amount of S59,100. It is not determinable from this
RCA whether these persons were intended to be in the grant program or the loan program, and
we do not know when, if ever, these participants were actually approved.
113/94: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 S73,952, the total amount of funds
committed is S104,952. This exceeds the original 5100,000 appropriated for the original,non-
repayment program. The analysis portion of this RCA states that"the approvals herein will be
the first funded with the new appropriation,"which implies that at least a portion of the funds
used for these participants were part of the funds that were conditioned for repayment, as
opposed to the original,non-repayment funds. However,the total numbers listed are roughly
consistent with the original S 100,000 set aside for the grant program. The total amount of loan
funds used is less than$5,000. (RCA attached hereto as attachment 5).
Our review of the above documents and chronology of events indicates that the Council did not
intend to require repayment of the original$100,000 appropriation. Clearly,then,the loans
made to Culiaciati,Taban, Sutherland,Schmaderer,Kanarski,Dixson and Kormeluk are
forgivable,because they were funded using$73,952 of the first$100,000 appropriation.
The problem is presented by the transactions with Young, Love, and Ommondson. We believe
that the Council's intent was to not require repayment from these participants. Unfortunately,
there was only$26,048 of the original,non-repayment funds available to these participants, and
collectively, they received$31,000. Thus, a small portion of the funds used for these
Note that an attachment to this RCA lists ten approved participants. Since the dates listed are after the Council
meeting of 1216/93,we believe that this list has been erroneously added to the 1216/93 RCA.
2 Please note that earlier during the same meeting,the Council had also approved David Dixson for$10,000,and an
additional S2000 for Kormeluk. Thus the amount committed from the original S 100,000 was actually$73,952.
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participants must have come from the second 5100,000,which the Council appropriated with the
condition that the loans be repaid, not forgiven.
CONCLUSION
There are hvo conflicting Council actions. The Council's intent was to include participants
Young,Love and Ommondson in the original,forgivable loan program. However, it appears that
a portion of the funds actually used for the loans to Young, Love and Ommondson were from the
second appropriation of funds,which included a repayment condition. Therefore,we
recommend that the Council clarify this conflict by approval of an RCA that forgives the loans -
made to Young,Love and Ommondson.
Gail Hutton
City Attorney
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Council/Agency Meeting Held: 5-1 _gc
Deferred/Continued to:
Approved ❑ Conditionally Approved ❑ Denied City Clerk's ignature C.13,e4Qcf 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
SUBMITTED BY: RAY SILVER, Executive Directo n� T'
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PREPARED BY: DAVID C. BIGGS, Economic Development Director
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)
Sta#ement 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.
Fundina Source: None as a result of this action.
Recommended Action: Motion to:
1. Authorize the Executive Director and the Agency Clerk to execute on behalf of the
Redevelopment Agency any and all documents necessary to transfer to new low and
moderate-income homebuyers the Down Payment Assistance Loans made by the
Agency at the inception of the Pacific Park Villas project. See Attachment No. 3 "List of
Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be
approved as to form by the Agency Counsel).
2. Authorize the Executive Director and Agency Clerk to execute on behalf of the
Redevelopment Agency any and all documents necessary to subordinate or to reconvey
the Agency loans (notes and deeds of trust), as these home owners refinance, sell their
homes or meet their loan obligations, as stated in their notes and deeds of trust. See
Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas."
(All documents to be approved as to form by the Agency Counsel).
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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(s):
P�g,e Number No. Descrilptio" n
1. City Attorney's Office Memorandum.
2. Sample Loan Documents.
3. List of Down Payment Assistance Borrowers at Pacific Park Villas.
RCA Author: Gus Duran X1529
RCAPPV.DOC -2- 051009 9:34 AM
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City Attorne 's Office Memorandum
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CITY OF HUNTINGTON BEACH
Inter-Department Communication
TO: David Biggs, Director of Economic Development
FROM: Gail Hutton, City Attorney
DATE: April 26, 1999
SUBJECT: ZA'allace Loan Documents
You have asked several questions concerning the Wallace loan documents.
1. Is the loan transferable?
A. Yes,with the Agency's prior written consent. See Section 18 of the Loan
Agreement.
2. What are the income limits for purchasers?
A. No greater than 120%of median income(moderate income)pursuant to Section 9
of the Loan Agreement.
3. Does the new buyer need to meet the income requirements of the CC&Rs?
A. Yes.
4. Is the Equity 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 S%per
year?
A. No,unless the Agency approves forgiving the interest.
6. Should the Equity be calculated minus the selling expenses?
A. No.
Please contact me if you have any further questions.
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Gail Hutton
City Attorney
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CITY OF HUNTINGTON BEACH
Inter-Office Communication
Economic Development Department
TO: Gail Button, City Attorney
Paul D'Alessandro,Deputy City Attorney
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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, I999, 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 o,.%mers of this complex. In addition, Ms. Wallace
has written to the Mayor and the City Attorney (April 2, 1999) requesting the
Redevelopment Agency's assistance in resolving her needs to sell her property with the
Agency's assistance.
The Economic Development Department is ready and willing to help Ms. Wallace and
the other property owners sell their homes,as they need to move on with their lives when
they desire,but we are in need of a legal opinion regarding the following issues:
1. Is the loan made to Ms. Wallace, which is similar to those made to the
other buyers of Pacific Park Villas,transferable?
2. What are the income limit requirements for the purchasers of these homes
when a property owner sells his/her home? (See attached 1999 Orange
County Affordable Housing Woiksheet issued by the law firm of
Stradiing,Yocca,Carlson&Rauth.) .
3. Does a new buyer need to meet t�e'in.come requirements established in the
CC &R's?
4R4J99:Gus Duran:tiouaev:WALLACE
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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 CC&R'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 CC&R's.
Attached are copies of h1s. Wallace's documentation. These are the following:
I. 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
4I20199.Gus DurawHoudmWALLACE
Sample Loan Documents
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LOAN AGREEMENT
THIS LOAN AGREEMENT (the "Agreement") is made this _51f,_ day of
I99 by and between BARBARA JO WALLACE ("Participant")and the
RED VELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body
corporate and politic(the "Agency").
RECITALS
A. Participant has entered into an agreement (the "Purchase Agreement") to purchase
that certain real property commonly known as . 19051 Joyful Lane. #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 tend, 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. A enc 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 CM1N =ICX4 (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 Prop 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 homeownees association or other regulatory entity recognized by area property owners and
comply with all applicable federal, state and local laws.
3. ue on Sale Transfer or Refinancin . Participant agrees to notify the
Agency not less than thirty(30) days prior to (i)the sale or transfer of the Property or(ii) any
refinancing of the lien of the Agency Deed of Trust or any lien to which the lien of the Agency
Deed of Trust is subordinate(the"First Mortgage"). The Agency Loan and all interest.accrued
thereon shall be due and payable upon(i)such sale or transfer, (ii) the refinancing of the First
Mortgage for a loan amount in excess of the then current loan balance or for an amortization
period longer than the loan secured by the First Mortgage, or(iii) Participant is no longer an
occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any
other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its
sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan.
4. Auity 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 (49%)
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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R!S 96.523
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5. After eighth anniversary but
prior to ninth anniversary: forty two percent (42%)
6. After ninth anniversary but
prior to tenth anniversary: forty percent (40%)
7. After tenth anniversary but
prior to eleventh anniversary: thirty-eight percent (38%)
S. After eleventh anniversary but
prior to twelfth anniversary: thirty-six percent (36%)
9.• After twelfth anniversary but
prior to thirteenth anniversary: thirty-four percent (34%)
10. Auer thirteenth anniversary but
prior to fourteenth anniversary: thirty-two percent (32%)
11. After fourteenth anniversary but
prior to fifteenth anniversary: thirty percent (30%)
12. After fifteenth anniversary but
prior to sixteenth anniversary: twenty-eight percent (28%)
13. After sixteenth anniversary but
prior to seventeenth anniversary: twenty-six percent (26%)
14. After seventeenth anniversary but
prior to eighteenth anniversary: twenty-four percent (24%)
15. After eighteenth anniversary but
prior to nineteenth anniversary: twenty-two percent (22%)
16. After nineteenth anniversary but
prior to twentieth anniversary: twenty percent(20%)
17. After twentieth anniversary but
prior to twenty-first anniversary: eighteen percent(18%)
18. After twenty-first anniversary but
prior to twenty-second anniversary: sixteen percent (16%)
19. After twenty-second anniversary but
prior to twenty-third anniversary: fourteen percent (14%)
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 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 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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A. Equity Share Upon Sale or Transfer. The Equity Share Amount shall be
payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer")
whose income exceeds 120% of the current annual median income for the Orange County area. If
the Buyer does not submit an income verification statement to the Agency, the Buyer shall be
deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the
Equity Share Amount shall not become payable.
B. Equity Share Upon Refinancing or Failure to 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 appraisaLof the Pro ert at Partici ant's ex erase arzd
Par iCipant agrees t zat 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 QbligLign. In the event the Participant
does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or
is not in material breach of any other provision of this Agreement before the Thirtieth anniversary
of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share
Amount to Agency upon any later sale, transfer or refinancing.
5. Occupancy Standards.The Property shall be used as the personal residence of
Participant and Participant's immediate family and for no other purpose. Participant shall not
enter into an agreement for the rental or lease of the Property.
6. Income Information. Participant has submitted an eligibility verification form to
the Agency prior to execution of this Agreement. Participant represents and warrants to the
Agency that all information Participant has provided and will provide in the future is and will be
true, correct and complete. Participant acknowledges that the Agency is relying upon
Participant's representations that Participant's income does not exceed 120% of the area median
income and would not have entered this Agreement if Participant's income exceeded 120% of the
area median income.
7. Loan Servicing. The Agency may contract with a private lender to originate
and service the Agency Loan.
8. Participant Financing. Participant shall obtain financing for the purchase of the
Property from the Southern California Home Financing Authority or a reputable institutional
lender approved by the Agency (the "Lender"). The lien secured by the Agency Deed of Trust
Loan Agreement
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shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns.
In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in
cash from Participant's own resources and not from the proceeds of a loan.
9. Covenants. Participant and the Agency shall execute and have recorded in the
Official Records of Orange County, California, a "Declaration of Conditions, Covenants and
Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated
herein, in which Participant agrees that the Property shall only be owned by Participant or other
persons or families of low or moderate income available at an affordable housing cost, as those
terms are defined in California Health& Safety Code Sections 50093 and 50052.5, and that
Participant shall not discriminate against any person or group of persons on the basis of race,
color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the
land, in favor of the Agency and the City.
10. Non-Waiver. Failure to exercise any right the Agency may have or be entitled to,
in the event'of default hereunder, shall not constitute a waiver of such right or any other right in
the event of a subsequent default.
11. Indemnification. The Participant shall defend, indemnify and hold harmless
the Agency and the City of Huntington Beach and their respective officers, agents, employees,
representatives and volunteers from and against any loss, liability, claim or judgment relating in
any manner to the Property or this Agreement. The Participant shall remain fully obligated for the
payment of property taxes and assessments related to the Property. There shall be no reduction in
taxes for Participant, nor any transfer of responsibility to the Agency or the City to make such
payments, by virtue of the Agency Loan.
12. Defaults. Failure or delay by either party to perform any term or provision of
this Agreement which is not cured within thirty(30) days after receipt of notice from the other
party constitutes a default under this Agreement;provided, however, if such default is of the
nature requiring more than thirty(30) days to cure, the defaulting party shall avoid default
hereunder by commencing to cure within such thirty(30) day period and thereafter diligently
pursuing such cure to completion. The party who so fails or delays must immediately commence
to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or
remedy with diligence.
The injured party shall give written notice of default to the party in default,
specifying the default complained of by the injured party. Except as required go protect against
further damages, the injured party may not institute proceedings against the party in default until
thirty(30) days after giving such notice. Failure or delay in giving such notice shall not constitute
-
a waiver of any default, nor shall it change the time of default.
13. Documents. Participant is aware that the Agency has prepared certain
documents to implement the Program and secure repayment of the Agency Loan. Participant has
reviewed and agrees to execute the following documents prior to receiving the Agency Loan:
Loan Agreement
Page b of 8
4%s\U.4-96-Agrcc:W allacc:loanagrce
It IS 96.523
7126/96
1 .
l
(a). Disclosure Statement;
(b) Promissory Note;
(c) Agency Deed of Trust; and
(d) Declaration of Conditions, Covenants and Restrictions of Property.
Participant agrees and acknowledges that the Agency Deed of Trust and the
Declaration of Conditions, Covenants and Restrictions of Property shall be recorded with the
County Recorder of the County of Orange and shall appear of record with respect to and as
encumbrances to the Property.
14. Further Assurances. The Participant shall execute any further documents
consistent with the terms of this Agreement, including documents in recordable form, as the
Agency shall from time to time find necessary or appropriate to effectuate its purposes in entering
into this Agreement and malting the Agency Loan.
15. Governing Law. This Agreement shall be governed by the laws of the State
of California. Any legal action brought under this Agreement must be instituted in the Superior
Court of the County of Orange, State of California, in an appropriate municipal court in that
county, or in the Federal District Court in the Central District of California.
16. Amendment of Agreement. No modification, rescission, wa'iver, release or
amendment of any provision of this Agreement shall be made except by a written agreement
executed by the Participant and Agency.
17. A enc May Assign. Agency may, at its option, assign its right to receive
repayment of the loan proceeds without obtaining the consent of the Participant.
18. Participant Assignment Prohibited. In no event shall Participant assign or
transfer any portion of this Agreement without the prior express written consent of the Agency,
which consent may be given or withheld in the Agency's sole discretion. No assumption of the
Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to
assign all or any portion of its rights to the loan proceeds hereunder.
19. Entire Agreement. This Agreement constitutes the entire understanding and
agreement of the parties. This Agreement integrates all of the terms and conditions mentioned
herein or incidental thereto, and supersedes all prior negotiations, discussions and previous
Loan Agreement
Page 7 of 8
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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"
Date: AUGUST 13, 1996 , 19 By: yo Ll,/z, ,�cct�
Printed Name:
Date: 919 By:
Printed Name:
Date: 19 By:
Printed Name:
THE REDEVELOPMENT AGENCY OF
THE CITY OF HLJNTINGTON BEACH,
a public body corporate and politic
Date: 19ifa— By: �sdr
Chairman
ATTEST: APPROVED AS TO FORM:
Agency Clerk '7%icAle•Agency Counsel
�C�+ •
REVIEWED AND APPROVED: INITIATED AND APPROVED:
Aw
r 4 O Cr
Executi a irector Director of Economic evelopment
Loan Agreement
Page 8 of 8
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RL5 96-523
W W%
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
PARCEL 1
i
An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to
all of the Common Area defined in Declaration referred to below and described in ttte
Condominium Plan ("Plan") for Lot 1 of Tract No 14828, which Plan was recorded on August
25, 1994 as Instrument No 94-0525335 of official Records of Orange County, over Lot 1 of
Tract No 14828, in the City of Huntington Beach, County of orange, State of California,
as per map filed in Book 706, Pages 27 to 29 of tiiscellaneous traps, 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 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
Page 1 of 1
4\s\Agrcc Margolis f xhibitA\07/26/96
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EXHIBIT 13
PROMISSORY NOTE
$ 35,000.00 Huntington Beach, California
AUGUST STET , 19 96
FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The
Redevelopment Agency of the City of Huntington Beach("Holder") at 2000 Main Street, P.O.
Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct
from time to time in writing, Thirty-five Thousand Dollars ($35,000.00) (the "Note Amount")
together with interest thereon at the rate set forth herein. All sums hereunder shall be payable in
lawful money of the United States of America and all sums shall be credited first to interest then
due and the balance to principal.
1. Interest Rate
Simple interest shall accrue on the Note Amount at a rate of five percent (5.00%) per
annum. If the fair market value of the Property does not increase at least five percent (5.00%) per
annum, the accrued interest on the Note Amount shall be forgiven by the Holder.
2. Maturity Date
The balance of all unpaid principal and accrued interest shall be due and payable on
_AUc�iST STii , 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 .
41s14-9GAgfcc:Wa1hcc:L•xhibkB
R S 9G-523
7126196
r a r
� r
4. Security for Note
This Promissory Note shall be secured by a sezond deed of trust encumbering the Property
(the "Agency Deed of Trust"), executed by Maker as Trustor in favor of Holder as Trustee.
5. Prepayment of Note Amount
Maker may prepay to flolder the full Note Amount, together with simple interest thereon
at a rate of five percent (5.00%) per annum, at any time prior to the due date of the Note
Amount.
6. Loan Agreement
This Promissory Note is made and delivered pursuant to and in implementation of Loan
Agreement entered by and between the Holder and the Maker dated AUGUST 5,
19 9b (the "Agreement"), a copy of which is on file as a public record with the Holder and is
incorporated herein by reference. The Maker acknowledges that but for the execution of this
Promissory Note, the Holder would not enter into the Agreement or make the loan contemplated
therein. Unless definitions of terms have been expressly set out at length herein, each term shall
have the same definition as set forth in the Agreement.
7. Holder May Assi&n
Holder may, at its option, assign its right to receive payment tinder this Promissory Note
without necessity of obtaining the consent of the Maker.
S. Maker Assienment Prohibited
In no event shall Maker assign or transfer any portion of this Agreement without the prior
express written consent of the Holder. which consent may be given or withheld in the Holder's
sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This
Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan
proceeds hereunder.
9. Attorneys'Fees and Costs
In the event that any action is instituted to enforce payment under this Promissory Note,
the Maker promises to pay such sums as a court may fix for court costs and reasonable attorneys'
fees.
10. Non-Waiver
Failure or delay in giving any notice required hereunder shall not constitute a waiver of
any default or late payment, nor shall it change the time for any default or payment.
"Exhibit B" to Loan Agreement
Page 2 of 3
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11. Successors Bound'
This Promissory Note shall be binding upon the parties hereto and their respective heirs,
successors and assigns.
"MAI:.ER"
-. By:
Printed Name: BRA JO ALA'
By:
Printed Name:
By:
Printed Name:
"Exhibit B" to Loan Agreement
Page 3 of 3
4W4.96Agrcc:Wjfl ace:rxhibRit
RLS 96-523
T126M6
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 Recadefs Use j
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 Sm day of_AUG. , 19 95, by and among
BARBARA JO WALLACE, whose address is 18051 Joyful Lane, 4205, Huntington Beach,
California (the"Trustor") and THE CITY OF HUN TINGTON BEACH, a municipal corporation
(the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH, a public body corporate and politic (the "BENEFICIARY"), whose address is
2000 Main Street, Huntington Beach, California 92648.
WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to
Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of
Orange, State of California, described legally in the Legal Description attached hereto as Exhibit
"A" and incorporated herein.
TOGETHER WITH: (a) all buildings, improvements and fixtures, now or
hereafter placed thereon, it being understood and agreed that all classes of property attached or
unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits
thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and(d) all sums
of money payable on the purchase price of said property secured by a lien thereon or payable
under any agreement for the sale thereof, SUBJECT, HOWEVER., to the right, power and
authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents,
issues and profits, and all sums of money payable on the purchase price of said property secured
by a lien thereon or payable under any agreement.
"Exhibit C" to Loan Agreement
Page I of 15
4`s1Ci:4-96sgree:Wsllace:CxhibitC
RLS 96-523
MGM
1
A. FOR THE PURPOSE OF SECURING:
1. Payment of the sum of Thirty-five Thousand Dollars($35,000.00)with interest
thereon according to the terms of a Promissory Note of even date herewith, made by Trustor,
payable to the order of the Beneficiary and extensions or renewals thereof.
2. Payment of such additional sums with interest thereon as: (a) may be hereafter
borrowed from the Beneficiary by the then record owner or owners of said property when
evidenced by another Promissory Note or Notes, or(b) as may be added to the indebtedness
secured hereby in accordance with the provision of this Deed of Trust.
3. Performance of each and every obligation, covenant, promise or agreement of
Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated
ACK�]ST 5 , 19 96 , insofar as the terms and conditions of that agreement may apply to
Trustor.
4. Payment, with interest thereon, future indebtedness or obligation of the Trustor(or
of any successor-in-interest of the Trustor to said property) to the Beneficiary, whether created
directly or acquired by assignment, whether absolute or contingent, whether due or not, whether
otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or
arising thereafter.
B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:
1. To keep said property in good condition and repair;to allow Beneficiary or its
representatives to enter and inspect the premises at all reasonable times and access thereto, shall
be permitted for that purpose; not to remove or demolish any building thereon; not to make
alterations thereto without the consent of the Beneficiary; to 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;
"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 fled of record against the property; (f) not to permit any stop notice claims to be
presented to Beneficiary. If said property is part of a larger tract upon which improvements will
be constructed, Trustor shall make separate contracts and subcontracts for said construction
which shall pertain to the said property only and shall keep separate, full and complete records of
all work and materials furnished to the said property. Trustee upon presentation to it of an
affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this
paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to
act thereon hereunder.
2. To provide, and maintain in force at all times with respect to said property, fire and
other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss
payable endorsement in favor of Beneficiary, shall be for a terse 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 o:replace the damaged or destroyed buildings
or improvements under the terms of any lease or leaszs 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
Page 3 of 15
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7l2ro)G
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 (14) days before delinquency, all general and special City
and County taxes, and all assessments on appurtenant water stock, affecting such property, (b)
when done, all special assessments for public improvements, without permitting any improvement
bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with
interest, on said property, or any part thereof, which are or appears to be prior to superior hereto,
(d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act
required of the Lessee or its successor in interest under the terms of the instrument or instruments
creating said leasehold, (e) all costs, fees and expenses of this trust, (0 for any statement
regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the
maximum allowed by law thereof at the time when such request is made, (g) such other charges
for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in
interest to Trustor as the Beneficiary may deem reasonable.
If, by the laws of the United States of America, or of any state having jurisdiction over the
Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the
Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor
fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary'may
elect to make such payment and any amount so paid may be added by Beneficiary to the
indebtedness secured hereby and shall bear a like rate of interest.
4. That, should Trustor fail to make any payment or do any act as provided in this
Deed of Trust, the Beneficiary or Trustee,but without obligation to do so and without notice to
or demand upon Trustor and without releasing Trustor from any obligation hereof, may(a) make
or do the same in such manner and to such extent as either may deem necessary to protect the
security hereof, Beneficiary or Trustee being authorized to enter upon said property for such
purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the
security hereof or the property covered by this Deed of Trust, or the rights or powers of
Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or
lien, which in the judgment of either is or appears to be prior or superior hereto, and (d)in
exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees.
Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so
"Exhibit C" to Loan Agreement
Page 4 of 15
41t1C.4-9Gaercc:W;llscc:L•xhibilC
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expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like
rate ofinterest.
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 dema:id, all sums expended under the terms of
this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate
which the principal obligation secured hereby bears at the time such payment is made, and the
repayment of such sums shall be secured hereby.
7. That, should the Trustor or any successor in interest to Trustor in such property
drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon
substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate
said property, or any party thereof, or any interest therein, or be divested of his title or any
interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have
the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of
the maturity date specified in any Note evidencing the same, immediately due and payable, and no
waiver of this right shall be effective unless in writing.
S. That any award, settlement or damages for injury or damages to such property, or
in construction with the transaction financed by such loan, and any award of damages in
connection with any condemnation for public use of or injury to said property, or any part thereof,
is hereby assigned and shall be paid to Beneficiary,who may apply or release such monies
received by it in such manner and with the same effect as above provided for the disposition of
proceeds of fire or other insurance.
9. That, by accepting payment of any sums secured hereby after its due date, or by
making any payment, performing any act on behalf of Trustor, that Trustor was obligated
hereunder, but failed, to make, or perform,or by adding any payment so made by Beneficiary to
the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt
payment when due of all sums so secured or to declare a default for failure so to pay.
10. That at any time, or from time to time,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
Page 5 of 15
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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, 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
F shall be authorized to, and may,without notice and irrespective of whether declaration of default
has been delivered to Trustee and without regard to declaration of default has been delivered to
Trustee and without regard to the adequacy of the security for the indebtedness secured hereby,
either personally or by attorney or agent without bringing any action or proceeding, or by receiver
"Exhibit C" to Loan Agreement
Page G of 15
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to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said
property, make cancel, dnforce and modify leases, obtain and eject tenants, and set and modify
rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said
rents, issues, and profits of the property affected hereby, and after paying such costs of
maintenance, operation of said property, and of collection including reasonable attorneys' fees, as
in its judgment it may deem proper, to apply the balance upon any indebtedness then secured
hereby, the rents, issues, royalties and profits of said property being hereby assigned to
Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not .
constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of
Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or
from time to time, to collect any such rents, issues, royalties or profits shall not in any manner
affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the
same. The receipt and application by said Beneficiary of all such rents, issues, royalties and
profits pursuant hereto, after execution and delivery of declaration of default and demand for sale
as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not
cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto,
but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and
reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the
indebtedness secured hereby, from time to time, in such order as Beneficiary may determine.
Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be
construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption
of liability under, nor subordination of the.lien or charge of this Deed of Trust to, any such
tenancy, lease or option.
14. ' That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees
that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate'; (b)
Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so,
without the written consent of the Beneficiary;(c)Trustor will promptly advise Beneficiary
regarding any notice, request or demand received by him from the lessor under the Lease and
promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as
any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise
consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always
be kept separate and distinct, notwithstanding the union of said estates in any party; (e)Trustor
agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, .
agreements, terms, conditions and provisions under any lease affecting the premises and to neither
do anything, nor to permit anything to be done which may cause modification or termination of
any such lease or of the obligations of any lessee or person claiming through such lease or the
rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder.
Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become
superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation
of any of the covenants set forth in this paragraph,Beneficiary shall have the right, at its option,
to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of
said violations shall not be deemed to be a consent to or waiver or any other violation. If the
security for this Deed of Trust is a leasehold estate, the term"property" as used in this Deed of
"Exhibit C" to Loan Agreement
Page 7 of IS
4\skG:4.96agrcc:Wallacc:lixhibitC
RfS 96.523
MGM
Trust shall be deemed to mean the leasehold estate whenever the context so requires for the
protection of the Beneficiary.
15. That upon default by Trustor in payment of any indebtedness secured hereby or in
performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon
default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be
prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and
payable by delivery to Trustee of written declaration of default and demand for sale of written
notice of default and of election to cause to be sold said property, which notice Trustee shall
cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and
any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such
time as then may be required by law following recordation of such notice of default, and notice of
sale having been given as then required by law, Trustee, without demand on Trustor, shall sell
said property at the time and place fixed by it in such notice of sale, whether as a whole or in
separate parcels, and in such order as it may determine, at public auction to the highest bidder for
case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of
all or any portion of said property by public announcement at such time and place of sale, and
from time to time thereafter may postpone such sale by public announcement at the time fixed by
the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the
property so sold, but without any covenant or warranty, express or implied. The recital in such
Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including
Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may
also sell at any such sale and as part thereof any shares of corporate stock securing the obligations
secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option
may also foreclose on such shares by independent pledge sale, and Trustor waives demand and
notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust,
including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of
sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued
interest at the rate then payable under the Note or Notes secured hereby, and then of all other
sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person
or persons legally entitled thereto.
16. To waive, to the fullest extent permissible by law, the right to plead any statute of
limitations as a defense to any demand secured hereby.
17. That Beneficiary may, from time to time, by instrument in writing, substitute a
successor or successors to any Trustee named herein or acting hereunder, which instrument,
executed and acknowledged by Beneficiary and recorded in the office of the recorder of the
county or counties where such property is situated, shall be conclusive proof of property
substitution of such successor Trustee or Trustees, who shall, without conveyances from the
Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not
limited to the power to reconvey the whole or any part of the property covered by this Deed of
Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary
hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have
"Exhibit C" to Loan Agreement
Page 8 of 15
CAGA-96agree:W&11aee:ExlubkC
RLS 96-523
W261%
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 lain.
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 prope ty, 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'Crust 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
Page 9 of 15
41s1G.4.96agrcc-WallaccL-xhibi(C
RL5 96.523
7126196
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:
` 6By. .r.� 4lr.a_ V f��G � /-10''-
BARMA JO LACE
By:
By:
APPROVED AS TO FORM:
Agency Counsel ArA
"Exhibit C" to Loan Agreement
Page 10 of 15
4tsV'r:4-9Gagrec:W atlaec:t-xLibitC
RLS 9G-S23
7r2Gl96
RIDER TO DEED OF TRUST
FIRST TIME HOMEBUYER DOWN PAY DENT 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. Alter eighth anniversary but
prior to ninth anniversary: forty two percent (42%)
6. After ninth anniversary but
prior to tenth anniversary: forty percent (40%)
7. After tenth anniversary but
prior to eleventh anniversary: thirty-eight percent (38%)
8. After eleventh anniversary but
prior to twelfth anniversary: thirty-six percent (36%)
9. After twelfth anniversary but
prior to thirteenth anniversary: thirty-four percent (34%)
"Exhibit C" to Loan Agreement
. Page 11 of 15
4'a1G:4-96agmc:W allacc:ExliibitC
RLS 96-523
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• i 4 �
10. After thirteenth anniversary but
prior to fourteenth anniversary: thirty-two percent (32%)
11. After fourteenth anniversary but
prior to fifteenth anniversary: thirty percent (30%)
12. After fifteenth anniversary but
prior to sixteenth anniversary: twenty-eight percent (28%)
13. After sixteenth anniversary but
prior to seventeenth anniversary: twenty-six percent (26%)
14. After seventeenth anniversary but
prior to eighteenth anniversary: twenty-four percent (24%)
15. After eighteenth anniversary but
prior to nineteenth anniversary: twenty-two percent (22%)
16. After nineteenth anniversary but
prior to twentieth anniversary: twenty percent(20%)
17. After twentieth anniversary but
prior to twenty-first anniversary: eighteen percent(18%)
18. After twenty-first anniversary but
prior to twenty-second anniversary: sixteen percent(16%)
19. Alter 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. Afler 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%)
"Exhibit C" to Loan Agreement
Page 12 of 15
4%AG:4.962grcc:W allacc:l:xhib;IC
RIS 96-3s7
7/26196
r
74
25. After twenty-eighth anniversary but
prior to twenty-ninth anniversary: two percent (2%)
26. After.twenty-ninth anniversary but
prior to thirtieth anniversary: one percent (1%)
27. After thirtieth anniversary: zero percent (0%)
The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in
the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or
any other closing or transaction costs_
The actual cost to Participant of all capital improvements to the Property made while
Participant owned the Property may be added to the Purchase Price if Participant complies with
the following:
No capital improvements which cost more than two thousand five hundred dollars
($2,500) shall be added to the Purchase Price unless within sixty(60) days following completion
of such capital improvements to the Property Participant shall send the following to the Agency:
(i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii)
evidence of the cost of the improvements. The costs incurred by the Participant for capital
improvements which cost less than two thousand five hundred dollars (S2,500) shall be added to
the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a
form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan.
The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's
interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan
fees or any other closing or transaction costs.
The percentage factor so determined is the "Applicable Factor," if the Property is sold, an
amount equal to the Applicable Factor multiplied by the difference between (i) the original
Property purchase price and (ii) the amount received by Trustor as the Property sale price (as
reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. If the
Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is
subordinate is refinanced for a loan amount which is in excess of the then current loan balance or
extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a
certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in
such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference
between (i)the original Property purchase price and (ii) the appraised value of the
"Exhibit C" to Loan Agreement
Page 13 of 15
4'a10:4.96agree:W ailace:ExhibilC
RLS 96-523
W26/96
• r � r e
Property as of the time of such transfer or refinancing.
Dated: AUGUST 13, 1996 TRUSTOR
BARBARA J6 WALLACE
APPROVED AS TO FORM:
Agency Attorney 1- Z!j_y 4
5
"Exhibit C" to Loan Agreement
Page 14 of 15
41t10:4-96agce:W ailace:I:xhibitC
RU 96-523
MW96
' 1 e
' 1T
i f� • ,
RIDER TO DEED OF TRU51
SUPERIORITY OF FIRST LIrNDER DOCMIEN S
(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: BAMMM Jo LACE
Agency Attorney
1rGf�
"Exhibit C" to Loan Agreement
Page 15 of 15
4s1(i:4.9Ga�{cc:W s1f acc:l:xl�biC
Rls 96.523
7126196
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
_ 5S.
COUNTY OF ORANGE
Oil AUGUST 13, 1996 before file, the undersigiled, personally al)i)eared
BARBARA J4 WALLACE -----
personally known to Tile (or proved to rile on [lie basis of satisfactoty evidence) to be [lie fiersoii(s)
whose nailie(s) islare subscribed to (lie within instrument and acknowledged to rile that fie/sllellhey
executed the same in his/her/their authoiized capacify(ies), and that by hisldierltheir sigriature(s) oil
the instrument the person(s) or the entity upon behalf of which the person(s) Acted, executed the
iilstrument.
WITNESS lily [land and offictad seal. (Ills area for official nolarial seal)
LINDA J.CAMPBELL =
COMM.9 1045344 Co
Sig IIatur Cl m -t-�k
.�. NOTARY PUMtC-CALIFORNIA�
ORANGE COWRY
LINDA J. C&MPBELL - •'y My Comm.Z qr as DEC.20.19M
ffrff[ffffif[I[(ffl[[iffffffffffitfffff OPTION L fIffMill[(i[(iffffffff ffff[fftffrff
Though the data below are not required by law, they may prove valuable to persons relying oil the
document and could prevent the fraudulent reattachment of this forin.
Capacity Claimed By Sigiier Uescripttoii of Attached VOCL11i1CIlt
Windividual
L-j Corporate Officer &-t-o or
*I Itles(s) l ftfo of lype or UvcurnQ +t
tJ Partner(s) UJ Uniited
El.General
0 Attorney-In-Fact
Crustee(s) Number of Pages
U Guardian/Conservator
0 Other:
Uate of Uocurnent
Signer is representing:
Name of Persons)or Entity(les)
Slgiier(s)01ber'f iron Named Above
1
1 4
EXHIBIT A
TO
AGENCY DEED OF TRUST
LEGAL DESCRIPTION
PARCEL I '
An undivided one twenty second tl/22) fee simple interest as a tenant in common in and to {
all of the common Area defined in Declaration referred to below and described in the . ;
condominium Plan ("Plan") for Lot 1 of Tract Ito. 14828, which Plan was recorded on August 1
25, 1994 as instrument ?to. 94-0525335 of Official Records of orange county, over Lot. 1 of
Tract 31o. 14828, in the city of tluntington 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.
9
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 tto. 22 consisting of certain airspace and surface elements, as shown and described in I
the Condominium Plan referred to in Parcel 1 above. '
Parcel 3s
non-exclusive easements for access, ingress, egress, use, enjoyment, drainage,
encroachment, support, maintenance, repairs and for other purposes, all as described in
that certain Declaration of Covenants, conditions and Restrictions and Reservation of
Easements for Pacific Park villas, recorded August 25, 1994 as Instrument Ito. 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 Agency Deed of Trust
Page I of I
��,�c:nar�o:rs��gou::txS,clktaAin&sG
RIS 9G-127
• � S J ,
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
AUGUSr S , 19 96 , (the "Agreement," a copy of which is on fife with the Agency
at its offices and is a public record) pursuant to which the Covenantor has agreed to subject
certain real property (referred to in the Agreement and referred to herein as the"Property")
described in the "Legal Description of the Property" (which is attached hereto as Exhibit "A" and
incorporated herein by this reference)to certain covenants, conditions and restrictions.
B. The Community Redevelopment Law(California Health and Safely Code
§ 33000 et seq.) provides that a redevelopment agency shall establish covenants running with the
land in furtherance of redevelopment plans.
NOW, THEREFORE, the parties hereto agree and covenant as follows:
"Exhibit D" to Loan Agreement
Page 1 of 9
41s .4 96Agr=Walla=ExhibitU
RLS 96-523 7129196
1. Affordability Covenants. Covenantor agrees for itself, and its successors and
assigns, and every successor to Covenantor's interest in the Property, or any part thereof that for
thirty (30) years from the date of recording of the Deed of Trust in favor of the Agency regarding
the Property (the "Expiration Date"):
(a) The Property shall only be owned and occupied by Convenantor or by
other persons or families of"Moderate Income." "Moderate Income" shall mean persons or
families earning One Hundred Twenty Percent (120%) or less of Orange County median income,
adjusted for appropriate family size.
(b) The Property shall be kept available at Affordable Housing Cost (as defined
below) to the Covenantor or other persons or families of moderate income. Affordable 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 (1101/6) of the Orange County
monthly median income, and Thirty-Five Percent (35%) of the monthly median income of any
person or family of moderate income which earns more than One Hundred Ten Percent (110%)
and not more than One Hundred Twenty Percent (120%) of the Orange County median income
(c) The covenant contained in this Section 1 shall run with the land and shall
automatically terminate and be of no further force or effect upon the Expiration Date.
2. Transfer of Property. No transfer of the Property shall occur until the Agency
determines (a) that the proposed purchaser intends to occupy the Property as the proposed
purchaser's principal residence, (b) that the proposed purchaser is a person or family of moderate
income and (c) that the proposed transfer occurs at an Affordable Housing Cost. The Agency
shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted
to the Agency such information and completed such forms as the Agency shall request to certify
the proposed purchaser's intent with respect to its residency of the Property and its gross income,
and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the
proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall
submit to the Agency an executed disclosure statement which certifies That the purchaser is aware
that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate
income person or family, that the maximum permitted sales price may be less than fair market
value and that the unit must be owner-occupied at all times and cannot be rented or leased.
Covenantor shall cooperate with the Agency in providing such forms to proposed purchasers and
in assisting proposed purchasers to prepare such forms and to provide any required information to
the Agency in connection with the Covenantor's original sale of the Affordable Unit, provided that
"Exhibit D" to Loan Agreement
Page 2 of 9
4\s\G:4-96Agrcc:W al lace:ExhibitD
ILLS 96-523 7/29/96
�. i
the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith,
other than employee time dedicated to providing such assistance.
THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF
COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE
HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER,
TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED
TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND
OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE
TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR
MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN
THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT
ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR,
HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL
TIMES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE
AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE
PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST.
.I� V)
- ' Covenantor Initials
The covenant contained in this Section Z shall run with the land and shall
automatically terminate and be of no further force or effect upon the Expiration Date,
3, Nan-Discrimination Covenants. Covenantor covenants by and for itself, its
successors and assigns, and all persons claiming under or through them that there shall be no
discrimination against or segregation of any person or group of persons on account of race, color,
religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person
claiming under or through it, establish or permit any such practice or practices of discrimination
or segregation with reference to the selection, location, number, use or occupancy of tenants,
lessees, subtenants, sublessees, or vendees in the Property.
Covenantor and its successors and assigns, shall refrain from restricting the rental
or lease (if permitted by Covenantor) or sale of the property on the basis of race, color, religion,
sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts
shall contain or be subject to substantially the following nondiscrimination or non segregation
clauses:
(a) In deeds: "The grantee herein covenants by and for himself or herself, his
or her heirs, executors, administrators and assigns, and all persons claiming under or through
them, that there shall be no discrimination against or segregation of, any person or group of
persons on account of race, color, religion, sex, marital status, national origin or ancestry in the
sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed,
"Exhibit D" to Loan Agreement
Page 3 of 9
4141G:4-96A&=:Wallaoe:CYJ ibitD
RL5 96-523 W29196
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 coveenants 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 Ieasing, 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 ro discrimination against or segregation of,
any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or
national origin, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the
premises, nor shall the transferee himself or herself or any person claiming under or through him
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessee or vendees of the premises."
Nothing in this Section 3 shall be construed to authorize the rental or lease
of the Property if such rental or lease is not otherwise permitted. The convenants in this
paragraph 3 shall run with the land in perpetuity.
4. Covenants Do Not Impair Lien. No violation or breach of the covenants,
conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or
render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security
interest.
5. Covenants For Benefit of City and A e_ncv. AlI 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 W to Loan Agreement
Page 4 of 9
"G:4-9GAgree:W i!lace:Gxhibi1D
Rt.S 96-523 7r2996
• � IN �
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 beAexacVed on their behalf by their respective officers hereunto duly authorized, this 13 day
of 19
COVENANTOR
i
B MMM JO WALLACE
APPROVED AS TO FORM:
Agency Counsel;- �
"Exhibit D" to Loan Agreement
Page 5 of 9
4%AG.4-96Agree:Wallace:ExhibitU
RLS 96-523 7129196
Vr
STATE OF CALIFORNIA )
ss
COUNTY OF CtWGE }
On AUGUST 13, 1996 ,before me, LINDA J. CAMPBEZC.
(name,title,e.g., "Jane Doe,Notary Public"),
personally appeared BARBARII JO WALLACE
(namc(s)of signer(s)),
personally known to be--OR--
Xx proved to me on the basis of satisfactory evidence
to be the person(s)whose namc(s) is/arc subscribed to the within instrument and acluiowlcdgcd to me that
hc/slic/they executed the same in his/licr/their authorized czpacity(ics),and that by his/her/tllcir signatures)
on the instrument the person(s),or the entity upon behalf of Which the person(s)acted, executed the
instrument.
NV•tn ss m y hand and official seal.
LINDA J.CAMPBELL
Q7 :_a; - CO-W.01045344 �
NO2eTARY PUBLIC-CALIFORNlA� �
ORANGECOUM (Sibmat cofNo:ar%l
&'`Y Comm.E-P403 DEC.20.1938
LINDA J. CAMPgII,L
CAPACITY QLATMED_BY SIGNER:
XX Individual
Corporate 0ffieer(s):
Titic(s)
Partncr(s): Limited General
Attorney-in-Fact
Trustee(s)
Guardian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Person(s)or Entity(ies)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT,
THIS CERTIFICATE Title or Type of Document M=WICN OF CO=TICNS, 00VM NPS
MUST BE ATTACHED AND RIsTRICTICKS EUR PMPERTY
TO THE DOCUMENT Number of Pages
DESCRIBED Date of Document Ai aM 5, 1996
AT RIGHT: Signers)Other Than Named Above:
"Exhibit D"to Loan Agreement
Page 6 of 9
41s1G:4.96Agec:W allace:ExliibitD
RIS 96-323 7/29196
L
STATE OF CALIFORNIA )
ss
COUNTY OF )
On before me,
(name, title,e.g., "Jane 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 person(s)whose namc(s) is/are subscribed to the within instrument and acknowledged to me that
he/she/they executed the same in his/her/their-authorized eapacity(ics), and that by his/her/their signaturc(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 Oflicer(s):
Title(s)
Partner(s): Limited General
Attorney-in-Fact
Trustee(s)
G uardian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Person(s)or Entity(ies)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE Title or Type of Document
MUST BE ATTACHED
TO THE DOCUMENT Number of Pages
DESCRIBED Date of Document
AT RIGHT: Signer(s)Other Than Named Above:
"Exhibit D" to Loan Agreement
Page 7 of 9
41sIG:4-96Agrec:W all ace:ExhibitD
RtS 96-523 7f29196
STATE OF CALIFORNIA )
ss
COUNTY OF )
On before me,
(name, title,e.g., "Jane Doe,Notary Public"),
personally appeared
(name(s)ofsigner(s)),
personally kno%vn to be--OR--
proved to me on the basis of satisfactory evidence
to be the person(s)whose name(s)is/arc subscribed to the within instrument and acknowledged to me that
he/slielthey executed the same in hislhcrltheir authorized capacity(ics),and that by his/her/their signature(s)
on the instrument the person(s),or the entity upon behalf of which the person(s) acted,executed the
instrument.
Witness my hand and official seal.
(Signature of Notary)
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate Ofrcer(s):
Title(s)
• Partner(s): Limited General
Attorney-in-Fact
Trustees) .
G uardian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Person(s)or Entity(ies)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE Title or Type of Document
MUST BE ATTACHED
TO THE 120CUMENT Number of Pages
DESCRIBED Date of Document
Tel RIGHT: Signers) Other Than Named Above:
"Exhibit D" to Loan Agreement
Page 8 of 9
4ti10:8-96Agce:Wallace:E)d ibitD
RLS 96-323 7/29196
.V •-'
EXHIBIT A
LEGAL DESCRIP !ON OF PROPERTY
[To Be Inserted]
LEGAL DESCRIPTION
EXHIBIT "A"
PARCEL is i
An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to j
all of the common Area defined in Declaration referred to below and described in the ; '
condominium plan ("plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August .
25, 1994 as Instrument No. 94-0525335 of official Records of orange County, over Lot 1 of ,
Tract No. 14828, in the-City of Huntington Beach, county of orange, state of California,
as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the :
county Recorder of said county.
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other. hydrocarbon -
substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds,
and in various other deeds of record.
PARCEL 2:
Unit no. 22 consisting of certain airspace and surface elements, as shown and described in -
the Condominium Plan referred to in Parcel 1 above.
Parcel 3:
4
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 areasidefined, depicted and assigned on the Plan.
"Exhibit W toloan Agreement
Page 9 of 9
4's10:496Agree:Wallace:C•WtbitD
RtS 96-323 7/29196
I y V
5 •
List of Down Payment Assistance Borrowers
at Pacific Parlc Villas
' � iA r•
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 wlexhibits & legislative draft if a livable Not Applicable
Resolution (w/exhibits & legislative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Ap2licable
Contract/Agreement (wlexhibits if applicable)
S ini ned full b the Cif Atfome Not Applicable
Subleases,Third Party Agreements, etc.
(Approved as to form by City Atfome Not Applicable
Certificates of Insurance (Approved!?Z the Pity 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
Findings/Conditions for AP2roval and/or Denial Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff
Assistant City Administrator Initial
Cit Administrator initial
Q Clerk
EXPLANATION FOR RETURN OF ITEM:
(Below Space Fbr City Clerk's Use Only)
RCAAuthor: Duran at extensionl529
w
ff 0A2 CITY OF HUNTINGTON BEACH
Inter-Office Communication
It"
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 Ist Time Home-Buyers Program to
determine the names and amount of assistance which benefited the applicants from the
$400,000 in Redevelopment Set-Aside funds approved by the Redevelopment Agency
(RDA) at their November 1, 1993, meeting and from the $750,000 in Redevelopment
Set-Aside funds approved by the RDA for the Pacific Park Villas at their February 6,
1995 meeting
The Redevelopment Agency approved nine applicants from the $400,000 allocation in
conjunction with the City's CDBG 1"Time Home-Buyers Program and one additional
applicant for the RDA 1"Time Home-Buyers Program only The RDA portion of these
loans are Bastou($25,000),Dieckmeyer($23,000), Griffen($25,000),Hoang($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), Hossemah ($35,000), Hocker($35,000), Lawrence
($35,000), Murch($35,000), Osterhoudt($35,000), Peltier($35,000),Rivera-Burgess
($35,000),Wallace ($35,000),Weinfeld ($35,000),Wong ($35,000),Krueck($35,000),
Margoles ($35,000) These loans total $525,000
Four loans (Melkerson/Umack, Ojeda,Rene/White, Stratton),previously approved by
RDA were not funded
G/Joyce/Intermemo Recon ey doc
e4
r _ ..t..... w..�_• .. �__
t`I'J i Y w a Y
• I.•. 1 L�`y�%y•lLT},L ��; ��� Y r}Yf 'LLB:'• d
i
One loan(Wallace)was assumed by another qualified buyer(Stay). •
Two applicants have paid their Ioans: Melvin,paid off his RDA loan 10/21/1997 in the
amount of$40,794.31 and Hoang,paid off his RDA loan on 12/21/1999 in the amount of
$47,208.80. A check in the amount of$4,116.57 was issued to Mr.Hoang for
overpayment,reducing the loan repayment to$43,092.23.
These loans accrue simple interest at 5%,due and payable upon sale to a non qualified
buyer and has shared equity.
Cc: Connie Brockway,City Clerk
Paul D'Alessandro,Deputy City Attorney
David Biggs,Director,Economic Development
John Reekstin,Director of Administrative Services
Dan Villella,Director of Finance
Jake Rahn,Administrative Services
Hank Reveles,Sr.Accountant
Joyce de Kreek,Economic Development
Steve Holtz,Development Specialist
G:rjoycellntcrmemo ttmonvey.doc
t
PACIFIC PARK VILLAS ($750,000—RDA)
95-01 (2-1-95) Carilio,Ann $ 35,000 7861 Happy Drive,#102
RDA 12-19-94
95-02 (2-1-95) Lawrence,James and Jeanette $ 35,000 18051 Joyful Lane,#16
RDA 12-19-94
95-03 (2-1-95) Wong, Wesley Chi $ 35,000 7681 Happy Drive,4202
RDA 12-19-94
95-04 (2-1-95) Hocker,ChristopherNandereb,Gayle$ 35,000 7681 Happy Drive,#101
RDA 12-19-94 .
95-06(4-12-95) Rivera,Victor/Burgess,Debra $ 35,000 18061 Joyful Lane,9104
RDA 4-3-95
96-01 (1-24-96) Heckethorne,Sean&Jacquelyn $ 35,000 7971 Happy Drive,#102
RDA 1-16-96
96-02 (3-7-96) Margolis,Peter $ 35,000 18 65 1 Joyful Lane,#104
RDA 3-4-96
96-03 ( Weinfeld,Julie $ 35,000 18061 Joyful Lane,#205
'RDA 4-1-96
96-04(7-17-96) Peltier,Edward $ 35,000 7871 Happy Drive,#201
RDA 7-15-96
96-05 (8-7-96) Wallace,Barbara Jo $ 35,000 18051 Joyful Lane,#205
RDA 8-5-96
96-06(8-7-96) Murch,Gregory $ 35,000 18051 Joyful Lane,#102
RDA 8-5-96
97-01 (1-29-97) Krueck,Deborah $ 35,000 18061 Joyful Lane,9101
RDA 1-21-97
97-02(4-30-97) Osterhoudt,Robert and Kathy $ 35,000 18061 Joyful Lane,#102
RDA
of oycefttmMma RrcanV".dM
y %
4 vi 4 4 t t ti
9
97-03 (5-14-97) Hossemah, Faroukh $ 35,000 18061 Joyful Lane, #201
RDA
97-04 (7-23-97) Forchme, 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) — - --- r---
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 doc
p - " :•� 7
r
°A, C RT Y ®1F 11UN TIING TON BEACH
Rimier-®ffince communkaflon
]Economic Development Department
DATE: May 23, 2000
TO: Gus Duran,Housing/Redevelopment Manager
FROM: Joyce DeKreek,Housing/Redevelopment Specials
SUBJECT: Research on Loan Forgiveness, 1st Tune Home-Buyers Program
2nd$100,000
I have reviewed our records regarding funding of 1st Time Home-Buyers Program to
determine the names and amount of assistance which benefited the applicants from the
2nd$100,000 in CDBG funds approved by the City Council at their December 20, 1993,
meeting
At that meeting eight applicants(Hoang,Heildesch, Quick,Lawson, Steenveld, Otto,
Dieckmeyer and Chavez)were approved to participate in the lst Time Home-Buyers
Program,totaling$59,100 However,two(2) applicants(Heildesch,Quick(Shaun)
withdrew(or participated in another program) ,thereby lowering the total amount of
assistance to $53,150 I have no record on Steenveld or Chavez(either on microfilm or
" files) and after checking with City Clerk's office,I believe these loans may not have been
funded If that's true,the total amount of assistance is lowered to $31,900
Since that meeting Bastou($5,000), Geffen($5,300),Melvin($10,000), Quick(Theresa)-
($5,000)and Rivera H ($5,000),were approved for CDBG lst Time Buyer Assistance in
conjunction with the Redevelopment 1st Tune Buyer Assistance Quick T signed loan
docs but withdrew prior to recording the docs The CDBG amount of assistance is
$25,300
Two applicants have paid back their loans Hoang, CDBG loan paid on 12/21/1999 in the
amount of$8,229 72 and Melvin, CDBG loan paid on 10-21-1997 in the amount of
$11,655 36
G/Joyce4ntertnemo Reconvey doc
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
Gloyce/[ntemkmo R=vvey.doe
(Brisas 79%)
LOAN AGREEMENT /IC.LIX--Y
THIS LOAN AGREEMENT (the "Agreement") is made this
11TH day of ALir ST , 19,Q4, by and between
("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
AgreemeKA,
to purchase that certain real property commonly known as
Huntington Beach, California, and more
particularly described in Exhibit "A" attached hereto and incorporated herein
(the "Property").
B. Participant requires assistance to purchase the Property and
would not be able to purchase the Property without such assistance.
Participant is a person or family of low or moderate income and currently
earns less than 79% of the current annual median income for the Orange
County area, as those terms are defined by California Health and Safety
Code Section 50093.
C. Participant has represented to Agency that Participant and
Participant's immediate family intend to reside in the Property at all times
throughout the term of this Agreement.
D. Agency desires to utilize tax increment money to assist persons
of low and moderate income to purchase residential property to increase,
improve, and preserve low and moderate income housing available at an
affordable housing cost within the City of Huntington Beach, all of which is
consistent with the goals of the Affordable Housing Program and the
Huntington Beach Redevelopment Plans.
t
71abrisas10=3194
z�QY CLERK
l r
•�� �' � fir/
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. gency sh !l loan to Participant (the "Loan")
the amount of ±UicwN
Dollars ($ZrV 1000 ), subject to the conditions and restrictions set forth
herein and those set forth in the Promissory Note, the Disclosure Statement
for the Program, the Deed of Trust and all applicable state, local and federal
laws. The Loan shall be paid to the seller of the Property (the "Seller") by
the Agency through deposit of the Loan proceeds into escrow with -
�% �a fGV6UJ (the "Escrow Agent") (Escrow No. —�I. The
Agency shall direct the Escrow Agent to apply-the proceeds of the Loan on
behalf of Participant to the purchase price of the Property, and, at
Participant's election, to the costs of closing, escrow fees, recording fees,
loan points and fees, and/or document fees. At such time, Participant shall
execute and deliver to the Agency a promissory note in favor of the Agency
as holder, in the amount of the Loan, with interest at five percent (5%) per
year. The Loan, together with accrued interest and the equity share
amount, shall be due in the event that Participant fails to comply with the
terms of this Agreement, the Deed of Trust and Rider thereto, any
Covenants, Conditions & Restrictions for Affordable Housing or Affordable
Housing Agreement which is recorded on the Property, or any other law,
requirement or condition of the Affordable Housing Program or
governmental entity or sells the Property to a non-qualified Buyer.
Otherwise, no payment of principal or interest shall be required during the
term of the Loan. Participant shall execute and deliver a Promissory Note
substantially in the form of the Promissory Note attached hereto as Exhibit
"B" and incorporated herein by this reference. Participant shall also execute
and deliver to the Agency a deed of trust encumbering the Property which
shall secure the Promissory Note (the "Deed of Trust"), in the form of
Exhibit "C" attached hereto and incorporated herein.
2
71abrisasl08103194
M a"�
2. Maintenance of Property. Participant shall maintain the
improvements on the Property in a manner consistent with community
standards
and in a manner which will uphold the value of the Property, and shall keep
the Property free from any accumulation of debris and waste materials.
Participant agrees to comply with any and all covenants and agreements
established by any homeowner's association or other regulatory entity
recognized by area property owners and comply with all applicable federal,
state and local laws.
3. Acceleration/Due on Sale. The Loan, all interest accrued
thereon and the equity share amount as defined herein below, shall be due
and payable upon (i) sale, transfer, or other disposition of the Property,
including, without limitation, lease, exchange or rent of any part of the
Property, except sale to a purchaser approved by Agency, (ii) the
refinancing of the First Mortgage for a loan amount in excess of the then
current loan balance or for an amortization period longer than the loan
secured by the First Mortgage, or, (iii) Participant is in material default of
any other obligation contained in this Agreement or any provision of the
Affordable Housing Agreement or Covenant (Attachment "D" to this
Agreement) recorded on the property, or (iv) Participant violates any
condition of the deed of trust or promissory note, or (v) the death of
Participant (unless the Participant's household, occupying the property,
contains more than one qualified participant and at least one qualified
participant survives). At the request of Participant, the Agency may, in its
sole discretion, extend the term of the Loan.
4. New Loan to Qualified Buyer. Notwithstanding the
provisions herein above, if the Property is sold by the Participant to a Buyer
defined as a low or moderate income household by Section 50093 of the
California Health and Safety Code (or any other provision of law which may
be enacted in the future, replacing Section 50093 or the law which defines
"low or moderate" income for the purposes of affordable housing), and said
3
7/abrisas/08/03/94
CITY CLERK
Buyer is approved by Agency, ("Eligible Person or Family") and the Sales
Price does not exceed an "affordable housing cost," as defined by Section .
50052.5 of the California Health and Safety Code (or any other provision of
law replacing-this section which may be enacted in the future), and the
Buyer assumes the Participant's loan, then no Equity Share Amount is due
to the Agency upon such sale and interest is due under the conditions set
forth below. In order to verify the Buyer's status as an Eligible Person or
Family, Participant shall submit to the Agency, together with the notice of
proposed sale pursuant to the Loan Agreement, the identity of the proposed
Buyer and adequate information evidencing the income of the proposed
Buyer. Said income information shall include original or true copies of pay
stubs, income tax records or other financial documents in order that the
Agency may determine and verify the household income of the proposed
Buyer to determine Eligible Person or Family status and whether the
Property is available to such Buyer at an affordable housing cost pursuant to
the standards set forth in the Agency's Affordable Housing Program. If the
Agency is unable to verify the Buyer's income as provided herein, then the
Buyer's income shall be deemed to exceed the maximum allowable income
limit for Eligible Persons and Families and the Equity Share Amount shall be
due and payable concurrent with the repayment of the Note Amount plus
interest. In the event that sale or transfer is made to an Eligible Person or
Family, interest which has accrued upon close of escrow shall be due and
payable, unless the Property has appreciated in value by an amount which
would be less than the value of the Property had it appreciated at a rate of
five per cent (5%) per year (plus the prorata amount for any portion of a
year) over the original price paid by the Participant. If the price of the
Property upon sale to an Eligible Buyer is less than the price paid by the
Participant at the time of original purchase, plus five percent (5%) of that
amount for each full year of ownership plus a prorata share of any portion
of a year remaining, then no interest will be due upon such safe. 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 (i) the sale or transfer of the Property or
4
7hbrises10 610 3 18 4
CITY Cl Pe
(ii) 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. 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.
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 shad obtain financing for
the purchase of the Property from a reputable institutional lender approved
by the Agency (the "Lender"). The lien secured by the Deed of Trust shall
only be subordinate to a first lien on the Property held by the Lender or
Lender's assigns. In addition, not less than three percent (3%) of the
Purchase Price of the Property shall be paid in cash from Participant's own
resources and not from the proceeds of a loan.
11 . Covenants. Recorded in the Official Records of Orange
County, California, is a declaration of conditions, covenants and restrictions
5
7labrisas108l03194
rITV r+rev
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. After eighth anniversary but forty-two percent (42%)
prior to ninth anniversary:
6. After ninth anniversary but forty percent (40%)
prior to tenth anniversary:
6
7labrisasl08103194
ray rr cov
7. After tenth anniversary but thirty-eight percent
(38%)
prior to eleventh anniversary:
8. After eleventh anniversary but thirty-six percent
(36%)
prior to twelfth anniversary:
9. After twelfth anniversary but thirty-four percent
(34%)
prior to thirteenth anniversary:
10. After thirteenth anniversary but thirty-two percent (32%)
prior to fourteenth anniversary:
11. After fourteenth anniversary but thirty percent (30%)
prior to fifteenth anniversary:
12. After fifteenth anniversary but twenty-eight percent
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 buttwenty-two percent
prior to nineteenth anniversary: (22%)
16. After nineteenth anniversary buttwenty percent (20%)
prior to twentieth anniversary: -
17. After twentieth anniversary but eighteen percent 0 8%)
prior to twenty-first anniversary:
7
7/ahrisas/08103l94
CITY CI rvv
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%)
w prior to twenty-fourth anniversary:
21 . After twenty-fourth anniversary but ten percent (10%)
prior to twenty-fifth anniversary:
22. After twenty-fifth anniversary but eight percent (8%)
prior to twenty-sixth anniversary:
23. After twenty-sixth anniversary but six percent (6%)
prior to twenty-seventh anniversary:
24. After twenty-seventh anniversary but four percent
(4%)
prior to twenty-eighth anniversary:
25. After twenty-eighth anniversary but two percent (2%)
prior to twenty-ninth anniversary:
26. After twenty-ninth anniversary but one percent 0%)
prior to thirtieth anniversary:
27. After thirtieth anniversary: zero percent (0%)
The "Purchase Price" is the original purchase price paid by the
Participant to the Seller for 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.
8
7rabrisa:ro8ro3194
rITV �..
The "Sales Price" is the price to be paid by the buyer of the Property
(the "Buyer") to Participant for Participant's interest in the Property,
exclusive of escrow fees, title insurance costs, broker's commissions, loan
fees or any other closing or transaction costs. -,
In the event of sale of the Property and at the election of the Agency,
the Agency may appoint a certified, independent appraiser to conduct any
appraisal of the Property, at Participant's expense to assist the Agency in
determining if the Sales Price is at or near the fair market value of the
Property at such time. If the Sales Price is determined by the appraisal to
be three percent (3%) or more below the fair market value of the Property
as estimated in said appraisal, then the "Sales Price" for purposes of
determining the Equity Share Amount shall be the fair market value of the
Property established in said appraisal.
PARTICIPANT ACKNOWLEDGES AND AGREES THAT UPON THE
OCCURRENCE OF ANY OF THE EVENTS DESCRIBED IN PARAGRAPH 3
ABOVE, PRIOR TO THE 30TH ANNIVERSARY, PARTICIPANT SHALL PAY
TO AGENCY AN EQUITY SHARE AMOUNT EQUAL TO A PERCENTAGE
SHARE OF THE APPRECIATION OF THE PROPERTY AS CALCULATED
PURSUANT TO THIS SECTION. EXCEPT AS PROVIDED HEREIN, THE
AGENCY ACKNOWLEDGES AND AGREES THAT PARTICIPANT SHALL
ONLY PAY THE NOTE AMOUNT AND THE EQUITY SHARE AMOUNT TO
THE AGENCY IF, AND ONLY IF, PARTICIPANT FAILS TO CONTINUOUSLY
OWN AND OCCUPY THE PROPERTY FOR THIRTY (30) YEARS,
PARTICIPANT FAILS TO COMPLY WITH THE PROVISIONS OF THIS
AGREEMENT, OR PARTICIPANT SELLS THE PROPERTY TO A BUYER NOT
QUALIFIED BY THE AGENCY.
PARTICIPANT ] 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;
9 -
7labrisasl08/03194
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, (ii) reliable proof of
completion of the improvements (as evidenced e.g., by final
building permits or certificate of completion), and (iii) reliable
evidence of the cost of the improvements and that
Participant paid those costs (as evidenced e.g., by an
itemized invoice or receipt).
Notwithstanding the foregoing, Participant's obligation to pay the
Equity Share Amount is subject to a superior right of Participant, upon
termination of the Agency Loan, to receive repayment of money paid by the
Participant without Agency assistance for purchase of the Property
(including down payment, installment payments of mortgage principal
pursuant to the First Lien, escrow fees, transfer taxes, recording fees,
brokerage commissions, and similar costs actually paid by the Participant)
and money paid by the Participant for capital improvements to the Property.
13. Non-Waiver. Failure to exercise any right the Agency may have
or be entitled to, in the event of default hereunder, shall not constitute a
waiver of such right or any other right in the event of a subsequent default.
14. Indemnification. The Participant shall defend, indemnify and
hold harmless the Agency and the City of Huntington Beach and its
respective officers, agents, employees, representatives and volunteers from
and against any loss, liability, claim or judgment relating in any manner to
the property or this Agreement. The Participant shall remain fully obligated
for the payment of property taxes and assessments related to the Property.
There shall be no reduction in taxes for Participant, nor any transfer of
responsibility to the Agency to make such payments, by virtue of the Loan.
15. Insurance. Participant shall maintain, during the term of the
Agency Loan, an all-risk property insurance policy insuring the Property in
an amount equal to the full replacement value of the structures on the
Property. The policy shall name the Agency as loss payee and shall contain
a statement of obligation on behalf of the carrier to notify the Agency of
10
71abrisasiOW03l94
r.�
any material change, cancellation or termination of coverage at least thirty
(30) days in advance of the effective date of such material change,
cancellation or termination. Participant shall transmit a copy of the
certificate of insurance and loss payee endorsement to Agency within thirty
(30) days of the effective date of this Agreement, and Participant shall
annually transmit to Agency a copy of the certificate of insurance and a loss
payee endorsement, signed by an authorized agent of the insurance carrier
setting forth the general provisions of coverage. The copy of the certificate
of insurance and loss payee endorsement shall be transmitted to Agency as
follows:
REDEVELOPMENT AGENCY OF THE
City of Huntington Beach
Attention: Executive Director
2000 Main Street
Huntington Beach, CA 92648
Any certificate of insurance must be in a form approved by the
City Attorney.
16. Defaults. Failure or delay by either party to perform any
term or provision of this Agreement which is not cured within thirty (30)
days after receipt of notice from the other party constitutes a default under
this Agreement; provided, however, if such default is of the nature requiring
more than thirty (30) days to cure, the defaulting party shall avoid default
hereunder by commencing to cure within such thirty (30) day period and
thereafter diligently pursuing such cure to completion. The party who so
fails or delays must immediately commence to cure, correct, or remedy such
failure or delay, and shall complete such cure, correction or remedy with
diligence.
The injured party shall give written notice of default to the
party in default, specifying the default complained of by the injured party.
Except as required to protect against further damages, the injured party may
not institute proceedings against the party in default until thirty (30) days
after giving such notice. Failure or delay in giving such notice shall not
constitute a waiver of any default, nor shall it change the time of default.
1i
71abrisnsl08103194
ti
17. Documents. Participant is aware that the Agency has prepared
certain documents to implement the Affordable Housing Program and secure
repayment of the Loan. Participant has reviewed and agrees to the terms
and conditions contained in the following documents prior to receiving the
Loan:
(a) Disclosure Statement
(b) Promissory Note;
(c) Deed of Trust; and
(d) The Affordable Housing Agreement (Exhibit "D").
(e) Notice of Right of Recission
Participant agrees and acknowledges that the executed Deed of
Trust, Disclosure Statement and the Affordable Housing Agreement shall be
recorded with the County Recorder of the County of Orange and shall
appear of record with respect to and as encumbrances to the Property.
Participant further agrees to all terms and conditions of the Disclosure
Statement which is hereby incorporated as if fully set forth herein.
18. Further Assurances. The Participant shall execute any
further documents consistent with the terms of this Agreement, including
documents in recordable form, as the Agency shall from time to time find
necessary or appropriate to effectuate its purposes in entering into this
Agreement and making the Loan.
19. Governing Law. This Agreement shall be governed by the
laws of the State of California. Any legal action brought under this
Agreement must be instituted in the Superior Court of the County of
Orange, State of California, in an appropriate municipal court in that county,
or in the Federal District Court in the Central District of California.
20. Amendment of Agreement. No modification, recission,
waiver, release or amendment of any provision of this Agreement shall be
made except by a written agreement executed by the Participant and
Agency.
12
Vs brisss/08/03/94
21. Agency May Assign. Agency may, at its option, assign its
right to receive repayment of the loan proceeds without obtaining the
consent of the Participant.
22. Assumption Permitted/Assignment Prohibited. In no event
shall Participant assign or transfer any portion of this Agreement without the
prior express written consent of the Agency, which consent may be given
or withheld in the Agency's sole discretion. Assumption of the Loan shall
be permitted, if consent is given by Agency. This section shall not prohibit
the Agency's right to assign all or any portion of its rights to the loan
proceeds hereunder.
23. Entire Agreement. This Agreement constitutes the entire
understanding and agreement of the parties. This Agreement integrates all
of the terms and conditions mentioned herein or incidental thereto, and
supersedes all prior negotiations, discussions and previous agreements
between the Agency and the Participant concerning all or any part of the
subject matter of this Agreement.
24. Relationship of Participant and 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 party to another may be personally delivered or
deposited with the United States Postal Service for mailing, postage prepaid,
registered or certified mail, return receipt requested to the following
address:
To participant: �V� • � ' v�c,�
ffi(
A Cl
a Cf,• � �-�
To Agency: THE REDEVELOPMENT AGENCY OF
13
7iabrisas/08/03/94
CITY C-F'-
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
3 Property to low or moderate income households or otherwise restricting the
Borrower's ability to sell the Property shall have no further force or effect on
subsequent owners or purchasers of the Property. Any person, including
his successors or assigns (other than the Borrower or a' related entity of the
Borrower), receiving title to the Property through a foreclosure or deed in
lieu of foreclosure of the First Deed of Trust shall receive title to the
Property free and clear from such restrictions.
14
7labrisas108103194
!i`rsv r•—�..
IN WITNESS WHEREOF, the parties have executed this Agreement as
of the day and year written below.
"PARTICIPANT"
Date: 1 `� By:
Print Name: j�✓��Q �i. �(,(,C
Title:
Date: By:
Print Name:
Title:
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH, a
municipal corporation
Date:
Print Name: .Ll�,c
Its: CHAIRPERSON
APPROVED AS TO FORM: ATTEST:
400cz,
By: By:
G(d GAIL HUTTON Print Name: ,,/
8-I-56ity Attorney/Agency Counsel Its: CLERK
15
7/abrisas/08/03/94
i-ry
EXHIBIT A
409 UTICA, A-9
(QUICK)
THE FORS OF POLICY OF ZI:'TE I=NS =TEMP AT1D BY THIS REPORT IS:
ALTO. RESIDENTIAL 77I E: MRSURNNCE POLICY (6-1-SA
ALTA LAN POLICY WTIH ALTA IINDARSEMEhT - FORM 1 COVE (4-6-90)
'IUS OM= OR INCEST IN THE LAND VERE NAx'7'ER DESCRIBED OR REFERRED TO OUVERME
vy THIS REPORT IS : A CCtM3yM IJ4 AS LEFTN D IN SECTD09 783 OF THM CIVIL COOMD IN
Fes.
TITLE TO,SAID ESTATE OR II1TfREST AT THE Lfi.'IE HEREOF IS VET IN:
U RE II, A CALIFORNIA LIMITED PARTNERSHIP.
THE 1111D REFIRED TO IN 7EIS R,EP()RT IS STIUATED IN THE STATE OF C ALIFOIIA,
COC VU Y OF ORNNSE AND IS IESCRIBED AS F 'S:
PARCEL 1: LIIJIT NO. 9, OoNsISTING OF Cam] AIRSPACE AND SURFACE k73EMENI5, AS
SiAT1 AMID DESCRIBE) IN THE CONDOMINIUM PLAN (01201 ") FOR BRISAS DEL MAR LOC=TE
W I13T 1 OF TRACT 14757, AS SHM3 ON A SUBDIVISION MAP RAID ON SEPTSMa'R 1,
1993, TN BOOK 701, PAGES 42 .THROUOU 43, IlNCCLUSIVE OF MISS MAPS, IN THE
O=71C:E OF THE CT ANSE C17UITS' RDC7JRDER ("OFFICIAL RECO?AS"I. WHICH PIAN WAS
R=-C,-R 'D CHAT SEPIEllaER 15, 1993, AS INT9M4II' NO. 93-0621742, OF OFFICIAL
RECORDS, CALIFORNIA.
PARCEL 2: AN UNDIVIDED ONE FCRTY-FCURTH (1/44) Fes__ SIMPLE INTEREST AS A TENANI'
IN C. J IN AM M KXXME B SRA V CON ITE 110 AND DEFlIJED IN THE DE lARATICNT
REFERRED TO BELOW AS THEE "034CN AREA".
E?.Cr ZHZZ2EFRCDM ILL OIL. CAS, MnSlERAL.S AND OTHER HYDROCARBON SUSSIANC£S LYING
8,ELOR A DEPTH OF 500 FAT 11MIC T!` ANY RIG3T TO MTR UIP N THE SURFACE OR THEE
SURSUREACE OF SAID LAND ABOVE A EEFTH OF 500 FEET, AS PROVIDED IN INSTRUMENTS OF
Pl-t=.
P;RCEL 3: NCMCLUSIVE EASEM!11TS FAR ACCESS, 1111ISS, EaM71ESS, USE, ERMTv�7,
DF.AIPP.r�--, MILVDACIA-r"ENT, SUPPORT, MAINTENANCE, REPAIRS AND FOR OTrII2 PURPOSES, ALL
AS ] AW BE S:-DV IN THE PLAN, AND AS ARE D~S�IID IN Tom' DBCLARFiTIC N.
PF.RC M 4: EXCLUSIVE EASEMENTS A TURTENIAor TO PARCELS NO. 1 Arm NO. 2 11 SCRIBI
ABOVE FT)R USE FOR PARKINOU P TUISSES DES=ME D AS EXCISZIVE USE AREAS IN Try
m o ARATICN, OVER PORTICNS OF W 1 OF TRACT 14757 S VVZR AND ASSI= IN THIF,
FLAN.
PARCEL 5: AN EXCLUSIVE EA.SFT'IIJI' APPURIIIu \7 TO PARCELS Imo. I AND NO. 2 DESSCRI=RE-
ABOVE, FMC USE FOR. PATIO, BAIL NY, AMID FIRE ESCAPE STAIRCASE PURPOSES nEESCRnIUME
AS EXCLUSIVE USE AREAS IN THE LECIARAalC.U, AS APPLICABLE, OVER PCPaICNS OF ICT L
OF T'i,ACT 14757 AS SST, ASSIGNED AND DESCR nED IN THE PLAT.
CALIFORNIA ALL-PURPOSECKNOWLEDGMENT No
State of
County of tQte. r L-
On D before me,
DATE NAME,T1n x OF FICER•E.G..',IANE DOE,NOTARY BLC-
personally appeared ,
I"E(S)OF SIGNER(S)
li personally known to me OR pt
-
to be the personal whose names] Ware
subscribed to the within instrument and ac-
knowledged to me that+tefsflelthey executed
the same in 4k44e-pltheir authorized
E �"?OH1`�ON ca aci les and that b his> he their
MM. 491t13s P tY � Y canromfa si natures on the instrument the erson s ,
NSEcO g {.� PEmiraaMAY11.1 or the entity upon behalf of which the
personal acted, executed the instrument.
P—AY90CELJOMMON WITNESS my hand and official seal.
comet.•991836 G 4uj
&M K"C—Coifomla F
C ANGE COUNrY
LOW,
Comm.&%*ss MAY 11.1997 . MXA� ,
SIGN URE OF NOTARY
OPTIONAL
Though the data below is not required by law,It may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
❑ INDIVIDUAL
CORPORATE OFFICER
TITLE 6R TYPE OF DOCUMENT
Trn E(S)
❑ PARTNER(5) ❑ LIMITED
❑ GENERAL
❑ ATTORNEY-IN-FACT NUMBER OF PAGES
❑ TRUSTEE(S)
❑ GUARDIAWCONSERV TO
DATE OF DOCUMENT
EPIGNER IS REPRESENnNG: ,
SAME OF PERSON(S ORE (IESF
L.1 IGNER(S)OW4ER THAN N MED ABOVE
01993 NATIONAL NOTARY ASSOCIATION•e238 Rammet Ave.,P.O.Sox 7184•Canoga Park,CA 91309.71 B4
.� AM .E li I
C,
U
STATE OF CALIFORNIA }ss.
COUNTY OF CPJV4= }
199A _ _, before me, SALPY GXRAG0=hN
personally appeared TERMA L. 0MCK
personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are
sLbscribed 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 h 6 d offici I s
i
signaturp 11
*'
4. • : SALPY GIRAGOSSIAN=
"r COMM.fir` 102226 CU
NoTARY Puecic•CALIFORNLA :0
2 OMNGE couWrr --
W Cann.EzPff+s Apr4 3,t998
(This area for ot5cial notaried stag
Title of Document
Date of Document No. of Pages
Other signatures not acknowledged
3008(V94)(General)
First American Tale InsuranCe Company
(Brisas 79%)
LOAN AGREEMENT
THIS LOAN AGREEMENT (the "Agreement") is made this 11TH
day of AUG= , 19 by'and between
("Participant") and THE CITY OF HUNTINGTON BEACH, a municipal corporation
("City").
RECITALS
A. Participant has entered into an agreement (the "Purchase
Agreemen ") to purchase that certain real property commonly known as
14% t)t(,L` IN,q , Huntington Beach, California, and more particularly
described in Exhibit "A" attached hereto and inccrporated herein (the "Property").
B. Participant requires assistance to purchase the Property and would
not be able to purchase the Property without such assistance. Participant is a
person or family of low or moderate income and currently earns less than 79% of
the current annual median income for the Orange County area, as those terms are
defined by California Health and Safety Code Section 50093.
C. Participant has represented to City that Participant and Participant's
immediate family intend to reside in the Property at all times throughout the term of
this Agreement.
D. City desires to utilize Community Development Block Grant funds in a
manner consistent with federal guidelines to assist persons of low and moderate
income to purchase residential property to increase, improve, and preserve low and
moderate income housing available at an affordable housing cost within the City of
Huntington Beach.
E. The City wishes to lend, and Participant wishes to borrow, Program
funds to assist Participant to purchase the Property upon the terms and conditions
set forth herein.
NOW, THEREFORE, for good and valuable consideration the parties agree as
follows:
1
7lmamo%Loankk18309314:44 PM
1, City Loan City shall Isan to Participant (the "Loan") the
amo n of
Dollars 1$ dk3Cz7O 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 withTi�wxQ c GYt (the "Escrow Agent") (Escrow No.
p -�-). 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.
a) Except as herein provided, the Loan and all interest accrued
thereon shall be due and payable upon (i) such sale, transfer, or other disposition of
the Property, including, without limitation, lease, exchange or rent of any part of the
Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of
the then current loan balance or for any amortization period longer than the loan
secured by the First Mortgage, or (iii) Participant is in material default of any other
obligation contained in this Agreement or any provision of the Affordable Housing
2
7W*moAIoankk18309314:17 P161
• F
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).
b) Exception to repayment provision. Accrued interest shall be
due and payable upon sale of the Property only if, at the time of sale, the sales
price of the Property is equal to or greater than the amount of the original purchase
price plus five percent (5%) of that amount per year for every full year of
ownership, starting at the close of escrow described in paragraph one (1) herein,
and any pro rata share applicable to any portion of a remaining year.
4. Notice to City. Participant agrees to notify the City not
less than thirty (30) days prior to (i) 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.
6. Income Information. Participant has submitted an eligibility
verification form to the City prior to execution of this Agreement. Participant
represents and warrants to the City that all information Participant has provided and
will provide in the future is and will be true, correct and complete. Participant
acknowledges that the City is relying upon Participant's representations that
Participant's income does not exceed 79% of the area median income and would
not have entered this Agreement if Participant's income exceeded 79% of the area
median income.
7. First Time Homebuyer. Participant represents and warrants to the'
City that neither Participant nor any of Participant's immediate family residing in the
Property has, or has had, a present ownership interest in a principal residence at
any time during all or any part of the three (3) years immediately prior to the
funding of the City Loan.
8. Loan Servicing. The City may contract with a private
lender to originate and service the City Loan.
3
7{memo%Losnkk183093/4:17 PM
C�r!ro
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 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 lour or
moderate income available at an affordable housing cost, as those terms are
definedin the Affordable Housing Agreement, and that Participant shall not
discriminate against any person or group of persons on the basis of race, color,
religion, sex, marital status, national origins or ancestry, all as set forth in the
Affordable Housing Agreement.
11. Non-Waiver. Failure to exercise any right the City may have or be
entitled to, in the event of default hereunder, shall not constitute a waiver of such
right or any other right in the event of a subsequent default.
12. Indemnification. The Participant shall defend, indemnify and hold
harmless the City of Huntington Beach and its respective officers, agents,
employees, representatives and volunteers from and against any loss, liability, claim
or judgment relating in any manner to the Property of this Agreement. The
Participant shall remain fully obligated for the payment of property taxes and
assessments related to the Property. There shall be no reduction in taxes for
Participant, nor any transfer of responsibility to the City to make such payments, by
virtue of the Loan.
13. insurance. Participant shall maintain, during the term of the City
Loan, an all-risk property insurance policy insuring the Property in an amount equal
to the full replacement value of the structures on the Property. The policy shall
name the City as loss payee and shall contain a statement of obligation on behalf of
the carrier to notify the City of any material change, cancellation or termination of
coverage at least thirty (30) days in advance of the effective date of such material
change, cancellation or termination. Participant shall transmit a copy of the
certificate of insurance and loss payee endorsement to City within thirty (30) days
of the effective date of this Agreement, and Participant shall annually transmit to
4
7%n*rm%Loankk183093!4A7 PM
City a copy of the certificate of insurance and a loss payee endorsement, signed by
an authorized agent of the insurance carrier setting forth the general provisions of
coverage. The copy of the certificate of insurance and loss payee endorsement
shall be transmitted to City as follows:
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
Attn: Department of Economic Development
Any certificate of insurance must be in a form approved by the City
Attorney.
14. Defaults. Failure or delay by either party to perform any term or
provision of this Agreement which is not cured within thirty (30) days after receipt
of notice from the other party constitutes a default under this Agreement; provided,
however, if such default is of the nature requiring more than thirty (30) days to
cure, the defaulting party shall avoid default hereunder by commencing to cure
within such thirty (30) day period and thereafter diligently pursuing such cure to
completion. The party who so fails or delays must immediately commence to cure,
correct, or remedy such failure or delay, and shall complete such cure, correction or
remedy with diligence.
The injured party shall give written notice of default to the party in
default, specifying the default complained of by the injured party. Except as
required to protect against further damages, the injured party may not institute
proceedings against the party in default until thirty 130) days after giving such
notice. Failure or delay in giving such notice sha'I 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 Agreemen; (Exhibit "D")
(e) Notice of Right of Recission
5
7lmemo%Lo&nkkk8309314:17 PM
rC•�TV r r...�
Participant agrees and acknowledges that the Deed of Trust, Loan Disclosure
Statement and the Affordable Housing Agreement shall be recorded with the
County Recorder of the County of Orange and shall appear of record with respect to
and as encumbrances to the Property.
16. Further Assurances. The Participant shall execute any further
documents consistent with the terms of this Agreement, including documents in
recordable form, as the City shall from time to time find necessary or appropriate to
effectuate its purposes in entering into this Agreement and making the Loan.
' 17. Governing Law. This Agreement shall be governed by the laws of
the State of California. Any legal action brought under this Agreement must be
instituted in the Superior Court of the County of Orange, State of California, in an
appropriate municipal court in that county, or in the Federal District Court in the
Central District of California.
18. Amendment of Agreement. No modification, recission, waiver,
release or amendment of any provision of this Agreement shall be made except by a
written agreement executed by the Participant and City.
19. City May Assign. City may, at its option, assign its right to receive
repayment of the loan proceeds without obtaining the consent of the Participant.
20. Participant Assignment Assumption Prohibited. In no event shall
Participant assign or transfer any portion of this Agreement without the prior
express written consent of the City, which consent may be given or withheld in the
City's sole discretion. No assumption of the Loan shall be permitted at any time.
This section shall not prohibit the City's right to assign all or any portion of its rights
to the loan proceeds hereunder.
21. Entire Agreement. This Agreement constitutes the entire
understanding and agreement of the parties. This Agreement integrates all of the
terms and conditions mentioned herein or incidental thereto, and supersedes all prior
negotiations, discussions and previous agreements between the City and the
Participant concerning all or any part of the subject matter of this Agreement.
22. Relationship of Participant and City. The relationship of
Participant and City pursuant to this Agreement is that of debtor and creditor and
6
71manno%toankk18309314:77 PM
CITY rI cav
shalt not be, or be construed to be a joint venture, equity venture, partnership, or
other relationship.
23. Notices. Any notices, requests or approvals given under this
Agreement from one party to another may be personally delivered or deposited with
the United States Postal Service for mailing, postage prepaid, registered or certified
mail, return receipt requested to the following address:
To Participant: L• (,
—�;
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.
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.
7
7lmemolLoankkt8369314.17 PM
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year written below.
"PARTICIPANT"
Date: By: t u� )-
Print Name:
Title:
Date: By:
Print Name:
Title:
CITY OF HUNTINGTON BEACH, a
municipal corporation
Date: �� B
Print Name: L.ii d cL Mo /
Its: MAYOR
APPROVED AS TO FORM: ATTEST:
By: By:
GAIL HUTTON, City Attorney Print Name:
�sC/a ld Its: CITY CLERK
8
7\memo\Loankk\8309314:17 PM
fiir'ITV r r�.
• •' EXHIBIT A
409 UTICA, A-9
(QUICK)
THE FORM OF POLICY OF TT32£ INS'URA= CONTEMPLATED BY THIS RESIT IS:
ALTA RESIDENTIAL TITLE... II19ARNNCE POLICY (6-1-87)
ALTA LOAN POLICY WITH ALMA ENDO 2SFIME917 - FORM 1 COVER40M (4-6-90)
THE ESTATE OR INTEREsr IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO �
uy THIS REPORT IS : A CCtMCMINIiM AS 110=30 IN SECTION 783 OF THE CIVIL CODE IN
FEE.
7771E TO,SAID ESTATE OR lnT E ESZ AT T-M WZE HEREOF IS 'VESTED IN:
rE AXL4RS II, A CALIFORNIA LIMITED PARTNERSHIP.
11HE WE) REFERRED RED TO III THIS RUXZ T IS SrRJZ=E IN THEE STATE OF =FaOTIA,
COf= OF ORN93E AMID IS DESCRIBED AS F OLLOI S:
RARCE, 1: 12lTNO. 9, CONSISTINOFCIIMA INAIRSPACE AND SURFACE ELEMENTS, AS
7ATL l7ND DESCRIBED 334 THE CEtojoagILm rok („EitT") FOR nRISAS VELVAR iyyPA=TE cv wr 1 OF TRACT 14757, AS SFIDVN CN A SUBDIVISION lKNP REOCEDID ON SEPTSMaER 1,
1993, IN BOOK 701, PAGES 42 .TURO033 43, INCL SI'V OF MMSCELLAMBOUS MAPS, IN ZHE
00710E OF IMN IDR N3E CIOUNTY RECORDER ("OFFICIAL RECORDS") , WHICH PLAN YW5
R3=Eb CST Swat 15, 1993, AS ISISTRIENT NO. 93-0621742, OF OFFICIAL
Rom, CALIFORNIA.
PARCEL 2: AN m VII:ED ONE FORTY-FOURTH (1/44) PE SIMPLE INTEREST AS A TENANT
IN COITEV IN 1I0 TO HXXIE B SH01w ON THE 10117 APED DE;= IN THE DEZ APATION
REFERRED TO BEDDW AS THE "CCM4LN AREA".
Er:CgPT TMBMERUETERN03M ALTv OIL, GAS, MDOZAL S AND On TER HYDR[XARPal SOWTANMC£S LYIlMR
BELOW A DEPTH OF 500 FEET WITHOUT ANY RIC--rr 7O 01= UPON TIC SURFACE OR THE:
SUBSURFACE OF SAID LAND ABOVE A DEPTH OF 500 FEET, AS PROVIDED IN INSTRUMENTS OF
FX=.
P7RCEL 3: N CLUSIVE EASEMIIRTTS PUR ACCESS, INGRESS, E REISS, =0 !WJXMERT,
DFAINAE-, EA10r'S.0 OIEN T, S PPCS r, MAINTENANCE, RERAIRS AND FOR OTHER PURPOSES, ALL
A.S. MAY BE S-DV IN 71M PLAN, AND AS ARE DESCRr��D IN THE DECLARATION.
PFRCEL, 4: EXC LUSI'VE EASEMNIS APP[RTE Wr TO PARCELS S NO. 1 AND NO. 2 nESCRI=
A=OVE FOR LTSE FUM PARKIN" PETZT)SES DESCRIBED AS EXCESSIVE UMS AREAS IN Tr-�--
DECIARATICN, OVER P=CNS OF 101 1 OFF TRACT 14757 S KM AND ASSIG"rII7 IN TE
PLAN.
PARCEL 5: AN EXCLUSIVE EASEMENT APPORTEwT TD PARES NO. 1 ARD NO. 2 DESCRI E
ABOVE, FIR USE FOR PATIO, BALCONY, AND FIRE ESCAPE STAIRCASE PURPOSES DESCRISED
AS EXCLUSIVE USE AREAS IN 711M DECLARATION, AS APPLICAnLE, OVER PORTIONS OF LOT L
OF TRACT 14757 AS T, ASSICM:D AND DESCRIEED IN TUZ PLAN.
CALIFORNIA ALL-PURPOSiACKNOWLEDGMENT No s9a7
State of
County of o. .
On &g&atV, / /�, before me,
DATE T NAME.TITLE OF 94ILER•E.G.,JANE 60E.NOTARY PokV
personally appeared Yz, Ar &ftZ
NAME(S)OF SIGNER(S)
❑ proved to me on the basis of satisfactory evidence
to be the person Us whose names) Ware
subscribed to the within instrument and ac-
knowledged to me that fie#~hey executed
the same in #fs1heNtheir authorized
'�#991&" capacity ie , and that by IisAiefltheir
+ Notory Public,Co6fomlo
0PANG*COUNrtY signatures} on the instrument the person(,,
WC4nvn.Elq*asMAY1I.1W7 or the entity upon behalf of which the
persons acted, executed the instrument.
WITNESS my hand and official seal.
SIGN URE OF NOTARY
OPTIONAL
Though the data below is not required by law,R may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT
❑ INDIVIDUAL
❑ CORPORATE OFFICER
TMTL OR TYPE OF DOCUMENT
TITLE(s)
❑ PARTNER(S) ❑ LIMITED p
❑ GENERAL
❑ ATTORNEY-IN•FACT NUMBER OF PAGES
❑ TRUSTEE(S)
❑ GUARDIAN/CONSERV T
9iV
—DATE OF DOCUMENT
SIGNER IS REPRESENTING: /1
NAME QF PERSON S)OR PE ) of
f"
GNER(S)OT THAN NAM D ABOVE
-22
01993 NATIONAL NOTARY ASSOCI4TION-UM Remmet Ara.,P.O.Box 7184-Canoga Part.CA 91309-7184
J , �
ti4�_ �
• Q
1
U
STATE OF CALIFORNIA }
COUNTY OF opt }ss.
01 M a= 11, 11994 , before me, sALPY caiva=lm ,
personally appeared TERMA L. QMCKC
personally known to me
(or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) islare
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies),and that by his,'her/their signature(s) on the instrument the
person(s) or the entity upon behalf of which the person(s) acted, executed the instrument.
WITNESS my a and".
icias eal.
Signature
.- : x. SALPY G)RAGOSSIANY
CO&j&I.V1022263 CO
co T NOTARY PUBLIC.CALIFOANIA p
�(rZ� ORANGE COUNTY �+•
_ �1ycomm.Expires April 3,IM
(This area for of iCial notari.J$eal)
Title of Document
Date of Document No. of Pages
Other signatures not acknowledged
3008(1>94)(Generar)
First American Title Insurance Company
CITY OF HUNTINGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CON'�IIE BROCKWAY
CITY CLERK
August 10, 1994
Tiempo Escrow
I9093 Beach BIvd.
Huntington Beach, CA 92648
Re: Loan Documents-(1) Teresa L. Quick; (2) Hector and Iciar Rivera
Enclosed are the Loan Agreements and Exhibits prepared by the City Attorney's Office and
presented to the City Clerk on August 10, 1994 to provide to Tiempo Escrow to process.
Please ensure that all documents are completed before transmitting to the Recorder and return to
the City of Huntington Beach,City Clerk's Office,P. 0. Box 190,Huntington Beach,CA 92648.
Sincerely yours,
7TWe
Connie BrocWmy,CMC
City Clcrk
CB:cc
Enclosures
1
�U
g:cc%tiempo
(Telephone:71453E-5227)
•i -_ �,J AGENCY
THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH
LOAN DISCLOSURE STATEMENT
IIWe --QV-�Sc,. �--
V'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:
• I/We must qualify for a home loan from an institutional lender
acceptable to the Agency.
I We must pay at least 3% of the home purchase price from our
own funds.
• I/We must qualify for assistance under the guidelines of the
Agency's Program.
IlWe further understand and agree that:
• I/We will be responsible for repaying the loan at the time Ilwe sell,
transfer, refinance, or no longer occupy mylour home, or breach
any part of the Loan Agreement.
• We ha a right t ncel or re ind t ' loan any ' e Nor
'dnight o he third siness day fter th loan a reem nt i
sig ed by se ing a no 'ce of mylou ecisio to re ind o can ei
the I n to:
develop nt Agen of the
Cit of Huntin ton Bea
2000 ain Stre P.O. Bo 190
Huntin n Beach, CA 9264
Attn: Ag cy Clerk
• The Agency will not require melus to make payments of principal or
interest during the term of the loan. The full balance of principal
and interest may be due and payable if llwe do not comply with the
terms of the agreement to which this statement is attached or when
the Loan is assumed. There are no loan closing costs, prepayment
penalties or charges, points, fees, finance charges, service
charges, investigation fees, credit report fees, insurance premiums,
notary or escrow fees, late payment charges or other fees payable
pursuant to this loan. An appraisal fee may be payable upon the
refinancing of mylour house.
I
WiscL07/1 sroa
C" CLERK
• The Agency shall not be held responsible for any costs associated
with the institutional loan for the home Itwe purchase with such
assistance including, but not limited to, any loan fees or charges,
any charges for appraisals, or any escrow costs or other costs
relating to the transfer of property.
• The Agency cannot ensure that information provided by or on
behalf of Applicant will be kept confidential.
• The Agency shall not be responsible for the selection of a home by
the Applicant, the selection of a lender providing funds assisting in
the purchase of the home, providing information concerning other
public or,private sources of loans, or the competitiveness of the
terms of the Program. Itwe assume all responsibility for
determining whether Itwe desire to be considered for the Program,
and Itwe will inform myselflourselves as to the availability and
terns of other public or private loans.
• The Agency shall not be charged with knowledge of the contents of
the documents of the primary lender.
• All loans must be approved by the Redevelopment Agency of the
City of Huntington Beach; therefore, a minimum 60-day escrow is
necessary.
2
7%disds%07112M
QTY CLERK
1
• The Agency financial assistance I/we receive under this Program
may be considered to be income for purposes of federal or state
income taxes and the Agency shall not be held responsible for the
payment of any taxes which I/we may incur by virtue of the receipt
of such financial assistance.
Dated: _ ,!�'�_ L- L
Signature of applicant
Dated:
Signature of applicant
Dated:
Signature of applicant
APPROVED AS TO FORM:
Agency Counsel
Gck
3
7miscisw711 zroa
.(M CLERK
CITY
i
CITY OF HUNTINGTON BEACH LOAN ASSISTANCE
DISCLOSURE STATEMENT
I/We - t— - QklLdZ—
("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:
• IIWe must qualify for a home loan from an institutional lender
acceptable to the City.
• We must pay at least�.3.% of the home purchase price from our
own funds.
• IIWe must qualify for assistance under the guidelines of the City's
Program.
Me 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.
• e ha e a right to ncel or re ind th loa at an time fo\ce
Wnight the third usiness da after t to afire ent
si ed by nding a n ice of mylo decis n t escin or
the oan to:
ity of Hu tington B ch
00 Main reet, P.O. ox 190
H tington B ch, CA 9 648
Att City Cle '
• The City will not require me/us to make payments of principal or
interest during the term of the loan. The full balance of principal
and interest will be due and payable if llwe 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.
1
7Xdisds%07/13t94
i Cu QERK
• The City shall not be held responsible for any costs associated
with the institutional loan for the home Ilwe 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. Uwe assume all responsibility for
determining whether Ilwe desire to be considered for the Program,
and Ilwe will inform mys elftourse Ives 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 tender.
2
Wiscl:Xmriv¢+
M CLERK
• 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 Vwe may incur by virtue of the receipt of such
financial assistance. , r
Dated: E1194- - - d.C� ' s 1
Signature of applicant
Dated:
Signature of applicant
Dated:
Signature of applicant
APPROVED AS TO FORM:
City Attorney rA1#6ce
l
3
7ldisclsW7li2191
M CLERK
• AGENCY
p t .
PROMISSORY NOTE
Property Address_4Og Ur= AYE._A-9, Huntington Beach, California
AC1C 11 . 1994
P
1. Promise to Pay.,
a . �--• ("Borrower")
promises to pay the REDEVELOPMENT AGENCY OF THt 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
d signs a in vpting, the,principal sunj of
Dollars ( (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 be charged by the Agency on the portion
of the Note Amount remaining unpaid from time to time, from the date of the .
disbursement of the Note Amount until the date upon which the Note Amount is repaid, at
the simple rate of five percent (5%) per annum. In the event that Borrower transfers the
Property to a Buyer qualified to participate in the Agency's Affordable Housing Loan
Program and approved by the Agency ("Qualified Buyer"), and the Property has
appreciated in value by an amount which would be equal to or greater than the sales price
of the Property to the qualified Buyer plus five percent (5%) of the original price added to
each year of ownership, plus any prorata share of a portion of a full year which might
remain at the time this is calculated, then, all accrued interest which would then have
been due and payable if the Borrower were in default will be paid on the date upon which
escrow closes; however, no equity share amount shall be due. Interest at the rate of five
percent (5%) per annum will begin to accrue as to the new Buyer on the remaining
principal from the date upon which escrow closes and all interest thereafter accrued will
be due and payable at the same time the Note becomes due and payable, unless the new
qualified Buyer assumes the Loan.
3. Affordable Housing Agreement This Promissory Note is made and
delivered pursuant to and in implementation of an Affordable Housing Agreement recorded
on the property as a covenant binding upon Borrower (the "Agreement"), a copy of which
is on file as a public record with the Holder and is incorporated herein by reference, and a
Loan Agreement between Borrower and Agency dated C . 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
1
71loandoc/agencypromnote/07112194
�!n CLERK
part, including, without limitation, the lease, 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 T"u is subordinate for loan amount in excess of the then current
loan balance secured by such lien or encumbrance;
(c) Borrower fails to occupy the Property as Borrower's principal
residence pursuant to the Loan Agreement or is in breach or default of any
other obligation under the Agreement or violates the terms of the Affordable
Housing Agreement (Affordab(e 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;
(f) Borrower defaults on the Agency Deed of Trust.
In the event that there is a default in payment as scheduled herein or a
default under the terms of the Deed of Trust securing this Note, or a default of the
Agreement or in any other instrument executed by Borrower or any guarantor in favor of
the Agency, the Agency may at its election declare all amounts of the outstanding
principal and accrued interest thereon immediately due and payable.
5. Application of Payments Any sums received hereunder may, at the
options of Holder hereof, be applied in any order to the payment of costs, interest, or
principal due hereunder.
6. Prepayment Privilege is reserved to make prepayments of principal on this
Note without penalty or fee.
7. Non-Waiver Failure to exercise any right the Holder may have or be
entitled to, in the event of any default hereunder, shall not constitute a waiver of such
right or any other right in the event of subsequent default.
8. Borrower's Waivers The Borrower and all guarantors and endorsers
hereof hereby severally waive certain requirements of the Agency. These are: a) to
demand payment of amounts due (known as "presentation for payment"), b) to give
notice that amounts due have not been paid (known as "notice of dishonor") and c) to
obtain an official certification of nonpayment (known as "protest"). Borrower consents
that the Holder hereof may extend the time of payment or otherwise modify the terms of
payment of any part or the whole of the debt evidenced by this Note, by agreement
between the Holder and Borrower, and such consent shall not alter or diminish the liability
of any person or the enforceability of this Note. Each and every party signing or endorsing
this Note binds itself as a principal and not a surety. In any action or proceeding to
recover any sum herein provided for, no defense of adequacy of security, or that resort
must first be had to security or to any other person shall be asserted. All of the terms,
2
7Aoandoclagencypromnote107I12194
CITY Ci Fo V
covenants, provisions, and conditions herein contained are made on behalf of, and shall
apply to'end bind, the undersigned and its successors and assigns, jointly and severally.
9. Collection Costs If any attorney is engaged by the Agency to enforce or
construe any provision of this Note or the Deed of Trust, or if Agency incurs any other
expense by virtue of collecting sums due to the Agency under this Note, as a
consequence of any default or event of default hereunder, with or without the filing of any
legal action or proceeding, then Borrower shall immediately pay upon demand all attorney
fees and all other costs incurred by the Agency, together with interest thereon from the
date of such demand until paid at the rate of interest applicable to the principal owing
hereunder as if such unpaid attorney fees and costs have been added to the principal.
10. Security of Note This Note is secured by a Deed of Trust (The "Deed of
Trust") of even date herewith executed by Borrower covering property located in Orange
County, State of California, together with the buildings and improvements now or
hereafter erected thereon.
11. Maximum Interest No provision of this Note or any instrument securing
payment hereof or otherwise relating to the debt evidenced hereby shall require the
payment or permit the collection of interest in excess of the maximum permitted by
applicable law. If any excess of interest in such respect is herein or in such other
instrument provided for, or shall be adjudicated to be so provided for herein or in any such
instrument, the provisions of this paragraph shall govern, and neither Borrower or any
endorsers of this Note nor their respective heirs, personal representatives, successors or
assigns shall be obligated to pay the amount of such interest to the extent it is in excess
of the amount permitted by applicable law.
12. Business Purpose The undersigned warrants and represents that all funds
advanced under this Note shall be applied and are intended solely for personal, family or
household purposes as set forth in the Agreement and not for any business or commercial
purposes.
13. Notice Any demand or notice to be made or given under the terms
hereof or any instrument now or hereafter securing this Note by the Holder to Borrower
shall be effective when mailed or delivered in the manner specified in the Deed of Trust.
14. Payments_De erred All interest and principal payments will be deterred so
long as the Borrower is in compliance with the terms of this Note, the Affordable Housing
Covenants or Agreements recorded on the Property, the Deed of Trust and the Loan
Agreement. All interest shall be due at the time the Note becomes due or upon safe to a
qualified Buyer, if the Property has appreciated in value by 5% or more per year over-the
original purchase price.
3
7{laandaclagencypsamnntel07112194
rily CLFRI(
IN WITNESS HEREOF, this instrument has been executed as of the date set forth
below.
SIGNATORY
DATE: I QI By
"Borrower"
DATE: By
"Borrower"
APPROVED AS TO FORM:
Agency Counsel
4
71loandociagencypromnote/07125t94
> Y QEPK
r ' CITY
PROMISSORY NOTE
Property Address_ � �(�.. � `Huntington Beach, California
A[Mc-r >> , 1994
1. Promise to Ea . �-Ph�l _ -- ("Borrower") promises
to pay the CITY OF HUNTINGTON BEACH, a municipal corporation ("Holder," also referred
to as "City"), at the office of the City in Huntington Beach, California, or at such other
ace ap Xhe Holder design to in writ'n , # principal sum of
r V( L
ollars ( } (the "Note Amount"}, loge her w th interest. The balance of all
unforgiven unpaid principal and accrued interest sh II be due and payable on the 30th _.
anniversary date of this Promissory Note.
2. Interest Rate Except as herein provided, interest shall be charged by
the City on the portion of the Note Amount remaining unpaid from time to time, from the
(late 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 datedq. 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
tinder 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:
(11 Borrower sells, transfers or makes disposition of the Property in whole
or in part, including, without limitation, the lease, exchange or rental of the
Property or any interest therein, whether voluntary or involuntary;
(2) Borrower refinances any lien or encumbrances to which the City Deed
of Trust is subordinate for loan amount in excess of the then current loan
balance secured by such lien or encumbrance;
(3) Borrower fails to occupy the Property as Borrower's principal
residence pursuant to the Loan Agreement or is in breach or default of any
other obligation under the Agreement or violates the terms of the Affordable
Housing Agreement or Affordable Housing Covenant;
1
Mandockitypromnote107112I94
QTf cu"
(4) The close of a probate estate following the death of Borrower (unless
Borrower is more than one person and one or more of the other people
comprising Borrower survive);
(5) Borrower defaults on this Promissory Note;
(6) Borrower defaults on the Agency Deed of Trust.
B. Exception to Pay ment Reguirement Accrued interest shall be
due and payable Upon sale of the Property only if, at the time of sale, the
sales price of the Property is equal to or greater than the amount of the
original purchase price plus added thereto five percent (5%) of that amount
for every full year of ownership, since the close of escrow described in
Paragraph one t1) herein, plus any pro rata share applicable Lp any portion of
a remaining year.
In the event that there is a default in payment as scheduled herein or a
default under the terms of the Deed of Trust securing this Note, or a default of the
Agreement or in any other instrument executed by Borrower or any guarantor in favor of
the City, the City may at its election declare all amounts of the outstanding principal and
accrued interest thereon immediately due and payable.
5. Application of Payments Any sums received hereunder may, at the
options of Holder hereof, be applied in any order to the payment of costs, interest, or
principal due hereunder.
6. Prepayment Privilege is reserved to make prepayments of principal on this
Note without penalty or fee.
7. Non-Waiver Failure to exercise any right the Holder may have or be entitled
to, in the event of any default hereunder, shall not ccnstitute 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 alter or diminish the liability of any person
or the enforceability of this Note. Each and every party signing or endorsing this Note
hinds 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.
2
Mandockitypromnote/07/12/94
CLERK
9. Collection Costs If any attorney is engaged by the City to enforce or
construe any provision of this Note or the Deed of Trust, or if City incurs any other
expense by virtue of collecting sums due to the City under this Note, as a consequence of
any default or event of default hereundere, with or without the filing of any legal action or
proceeding, then Borrower shall immediately pay upon demand all attorney fees and all
cther costs incurred by the City, together with interest thereon from the date of such
demand until paid at the rate of interest applicable to the principal owing hereunder as if
such unpaid attorney fees and costs have been added to the principal.
10. Security of Note This Note is secured by a Deed of Trust (The "Deed of
Trust") of even date herewith executed by Borrower covering property located in Orange
County, State of California, together with the buildings and improvements now or hereafter
erected thereon.
11. Maximum Interest No provision of this Note or any instrument securing
payment hereof or otherwise relating to the debt evidenced hereby shall require the
payment or permit the collection of interest in excess of the maximum permitted by
applicable law. If any excess of interest in such respect is herein or in such other
instrument provided for, or shall be adjudicated to be so provided for herein or in any such
instrument, the provisions of this paragraph shall govern, and neither Borrower or any
endorsers of this Note nor their respective heirs, personal representatives, successors or
assigns shall be obligated to pay the amount of such interest to the extent it is in excess
of the amount permitted by applicable law.
12. Business Pur ose The undersigned warrants and represents that all funds
advanced under this Note shall be applied and are intended solely for personal, family or
household purposes as set forth in the Agreement and not for any business or commercial
purposes.
13. Notice Any demand or notice to be made or given under the terms
hereof or any instrument now or hereafter securing this Note by the Holder to Borrower
shall be effective when mailed or delivered in the manner specified in the Deed of Trust.
14. Payments Deferred All interest and principal payments will be deferred so
long as the Borrower is in compliance with the terms of this Note, the Affordable Housing
Covenants or Agreements recorded on the Property, the Deed of Trust and the Loan
Agreement and uses the Property as his personal primary residence.
3
711oandocicitypromnote10 711 2/9 4
i:[ 'l QERK
IN WITNESS HEREOF, this instrument has been executed as of the date set forth
below.
SIG14ATORY
DATE: f q By L' q Uj
"Borrower" -
DATE: By
"Borrower"
APPROVED AS TO FORM:
By:
J:�2-� ity Attorney
4
711c iandoc/chypromnote/07/2 5/94
Y CLERK
r
ArwN& bRiANCE COAST TITL• C5 ANCILLES
f " ', .mot IB�I`.rl$:OP� DriTt">w:�T .� —
r .0 t 9 05153 '4
2t—AUG-1994 022:41 PM
RECORDING REQUESTED BY )
AND WHEN RECORDED RETURN TO: of eraat in 1unty,C-I kfarr-3
' � of Gran3e County, C�3.ifarr,i�3
Lee A. Bra clu, C;,jmy Peexrdrr
The Redevelopment Agency of the ) Pase 1 of 21 Fees: 1 O.L'
City of Huntington Beach
2000 Main Street )
Huntington Beach, California 92648 )
Attn ,Ci p-Clerk )
v
y. i~ 15pace Above This Line For Recorder's Use.[
jJ This document is exempt from
� c-r i•]
" j~" recording fees pursuant to
Government Code Section 6103. ?�
x 4 �-
� w
DEED OF TRUST WITH ASSIGNMENTS OF RENTS Z
1994
THIS DEED OF TRUST is made this 11TH da ofAEXZM M 1by a d
-�Y-e ,whose address i � �
"Trustor") and THE CITY OF HUNTINGTON BEACH, a municipal 66rporation (the
"Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a
public body corporate and politic (the "BENEFICIARY"), whose address is 2000 Main
Street, Huntington Beach, California 92648.
• WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to
Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach,
County of Orange, State of California, described legally in the Legal Description attached
hereto as Exhibit "A" and incorporated herein.
TOGETHER WITH: (a) all buildings, improvements and fixtures, now or
hereafter placed thereon, it being understood and agreed that all classes of property
attached or unattached used in connection herewith shall be deemed fixtures, (b) rents,
issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to
said land, and (d) all sums of money payable on the purchase price of said property
secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT,
HOWEVER, to the right, power and authority hereinafter given to and conferred upon
Beneficiary to collect and apply such rents, issues and profits, and all sums of money
payable on the purchase price of said property secured by a lien thereon or payable under
any agreement.
A. FOR THE PURPOSE OF SECURING:
1. Payment of the sum of w<,A + A k� with interest
thereon according to the terms of a Promissory Note of even ate herewith, made by
Trustor, payable to the order of the Beneficiary and extensions or renewals thereof.
71DEEDREN7107/13194M 1
M CLERK
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
cf Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated
A[]C=l~11._12% ./ i ��i�and in that certain Affordable Housing Agreement currently
recorded on the property, insofar as the terms and conditions of that agreement may apply
to Trustor.
4. Payment, with interest thereon, future indebtedness or obligation of the
Trustor (or of any successor-in-interest of the Trustor to said property) to the Beneficiary,
whether created directly or acquired by assignment, whether absolute or contingent,
whether due or not, whether otherwise secured or not, or whether existing at the time of
the execution of the Deed of Trust, or arising thereafter.
B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES:
1. To keep said property in good condition and repair; to allow Beneficiary or its
representatives to enter and inspect the premises at all reasonable times and access
thereto, shall be permitted for that purpose; not to remove or demolish any building
thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer
or permit no change in the general nature of the occupancy of the premises without
Beneficiary's written consent; to complete or restore promptly and in good workmanlike
manner any building which may be constructed, damaged or destroyed thereon, including,
without restricting the generality of the foregoing, damage from termites and dry-rot; to
pay when due all claims for labor performed and materials furnished in connection with
such property and not to permit any mechanic's lien against such property; to comply with
all laws affecting such property or requiring any alterations or improvements to be made
thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's
written consent; not to commit or permit waste thereon; not to commit, suffer or permit
any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize,
fumigate, prune, and do all other acts that from the character or use of said property may
be reasonably necessary; to promptly pay all amounts due others upon agreements of
lease or conditional sale of all fixtures, furnishings and equipment located thereon.
If the loan secured hereby or any part thereof is being obtained or should any
additional loan be made hereafter for the purpose of financing rehabilitation improvements
on said property, Trustor further agrees, anything in this Deed of Trust to the contrary
notwithstanding; (a) to complete the same in accordance with City approved plans and
specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property
at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to
Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such
fact, which notice may be given to Trustor by registered or certified mail, sent to his last
known address, or by personal service of the same; (d) that work shall not cease on the
rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15)
calendar days, whether consecutive or not,.without the written permission of the
Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection
71DEEDRENTX071121941B 2
M CLERK
%vith the said rehabilitation and not to permit any claims of lien for said work or material to
be filed of record against the property; (f) not to permit any stop notice claims to be
presented to Beneficiary. If said property is part of a larger tract upon which
improvements will be constructed, Trustor shall make separate contracts and subcontracts
for said construction which shall pertain to the said property only and shall keep separate,
full and complete records of all work and materials furnished to the said property. Trustee
upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing
a default by Trustor under this paragraph, is authorized to accept as true and conclusive all
facts and statements therein, and to act thereon hereunder.
2. To provide, and maintain in force at all times with respect to said property,
fire and other types of insurance as may be required by Beneficiary. All of such insurance
shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in
form, content, amount and in such companies as may be satisfactory to Beneficiary, and
the policies therefor shall be delivered to and remain in possession of Beneficiary as further
security for the faithful performance of these trusts. At least thirty (30) days prior to the
expiration of any insurance policy, a policy or policies renewing or extending such expiring
insurance shall be delivered to Beneficiary together with written evidence showing
payment of the premium therefor and, in the event any such insurance policy and evidence
of the payment of the premium therefor are not so delivered by Trustor to Beneficiary,
Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such
insurance and Beneficiary, without obligation to do so, without notice to or demand upon
Trustor and without releasing Trustor from any obligation hereof, may obtain such
insurance through or from any insurance agency or company acceptable to it, pay the
premium thereof, and may add the amount thereof to the indebtedness secured hereby,
which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance
agency or company, or any other person, any information contained in or extracted from
any insurance policy delivered to Beneficiary pursuant hereto and any information
concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible
for such insurance or for the collection of any insurance monies, or for any insolvency of
any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby
authorized either (a) to settle and adjust any claim under the insurance policies provided for
in this document without the consent of the Trustor, or (b) to allow Trustor to agree with
the insurance company or companies on the amount to be paid upon the loss. In either
case, the Beneficiary is authorized to collect and make receipt of any such insurance
money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or
improvements under the terms of any lease or leases which are or may be prior to the lien
of this Deed of Trust and such damage or destruction does not result in cancellation or
termination of such lease, such proceeds, after deducting therefrom any expenses incurred
in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or
restoring the buildings or improvements on said premises. In all other cases, such
insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of
the indebtedness secured hereby whether due or not, or in such order as Beneficiary may
determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of
the rebuilding or restoring the buildings or improvements on said premises. Such buildings
and improvements shall be so restored or rebuilt as to be of at least equal value and
substantially the same character as prior to the damage or destruction, and shall be in a
condition satisfactory to Beneficiary. Such application or release shall not cure or waive
any default or notice of default hereunder or invalidate any act done pursuant to such
ADEEoaENn07r1 21sa/a 3
CITY CLERK
notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the
purchaser of, the property conveyed at any Trustee sale held hereunder.
3. To pay: (a) at least ten (10) days before delinquency, all general and special
City and County taxes, and all assessments on appurtenant water stock, affecting such
property, (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
cny 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
t.ereby secured, the Trustor covenants and agrees to pay such tax in the manner required
ty 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
aiy amount so expended on demand of Beneficiary, and any amount so expended may be
added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of
interest.
5. To appear in and defend any action or proceeding purporting to affect the '
security hereof or the property which is covered by this Deed of Trust, or the rights or
powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to
pay all costs and expenses, including cost of evidence of title and attorney's fees in a
reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may
appear by virtue of being made a party defendant or otherwise irrespective of whether the
interest of Beneficiary or Trustee in such property is directly questioned by such action,
including any action for the condemnation or partition of said premises, and in any suit
brought by Beneficiary to foreclose this Deed of Trust.
MEEDRENTW/12MM 4
CM CLERK
6. To pay immediately and without demand, all sums expended under the terms
of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure
at the rate which the principal obligation secured hereby bears at the time such payment is
trade, and the repayment of such sums shall be secured hereby.
7. That, should the Trustor or any Successor in interest to Trustor in such
property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other
hydrocarbon substances or any mineral of any kind or character, or sell, convey, further
encumber, or alienate said property, or any party thereof, or any interest therein, or be
divested of his title or any interest therein in any manner or way, whether voluntarily or
involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or
obligations secured hereby irrespective of the maturity date specified in any Note
evidencing the same, immediately due and payable, and no waiver of this right shall be
effective unless in writing.
8. That any award, settlement or damages for injury or damages to such
property, or in construction with the transaction financed by such loan, and any award of
damages in connection with any condemnation for public use of or injury to said property,
or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or
release such monies received by it in such manner and with the same effect as above
provided for the disposition of proceeds of fire or other insurance.
• S. 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
Len 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
Fart 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
Fart 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
71DEEDREN'R07/12/9418 5
M QERK
reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The
grantee in such reconveyance may be described as "the person or persons legally entitled
thereto." Such request and reconveyance shall operate as re-assignment of the rents,
issues, royalties and profits assigned to Beneficiary. Five (5} years after issuance of such
full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed
in such request to retain them).
13. That as additional security, Trustor irrevocably assigns to Agency the rents,
issues, and profits of the property affected by this Trust Deed for the purposes and upon
the terms and conditions set forth below. This assignment shall not impose upon Agency
any duty to produce rents from the property affected by this Trust Deed, or cause Agency
to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of
the obligations of the lessor under any lease; or (c] responsible for any waste committed
.; by lessees or any other parties, for any dangerous or defective condition of the property
affected by this Trust Deed, or for any negligence in the management, upkeep, or control
of such rights to rents, issues and profits is not contingent upon, and may be exercised
without possession of, the property affected by this Trust Deed.
Agency confers upon Trustor a license ("License") to collect and retain the rents,
issues and profits of the property affected by this Trust Deed as they become due and
payable, until the occurrence of a default hereunder. Upon such default, the License shall
t•e 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
Eeneficiary 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
e-lforcement 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
p-.irsuant hereto, after execution and delivery of declaration of default and demand for sale
71DEEDRENTX07112/9418 6
Prr Cum
as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder,
shall not cure such breach or default not affect said sale proceedings, or any sale made
pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation,
maintenance, collection and reasonable attorneys' fees, when received by Beneficiary,
shall be applied in reduction of the indebtedness secured hereby, from time to time, in
such order as Beneficiary may determine. Nothing contained herein, nor the exercise of
the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by
Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor
subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or
option.
14. That if the security of this Deed of Trust is a leasehold estate, the Trustor
agrees that: (a) the term "Lease" as used herein shall mean the lease creating the
"leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or
i
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 provisioris under any lease affecting the premises and
to neither do anything, nor to permit anything to be done which may cause modification or
termination of any such lease or of the obligations of any lessee or person claiming through
such lease or the rents provided for therein or the interest of the lessor or the Beneficiary
therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or
mortgage which may be or become superior to any leasehold estate that is security for this
Deed of Trust. In the event of a violation of any of the covenants set forth in this
paragraph, Beneficiary shall have the right, at its option, to declare all sums secured
hereby immediately due and payable. Consent to or waiver of one of said violations shall
not be deemed to be a consent to or waiver or any other violation. It the security for this
Deed of Trust is a leasehold estate, the term "property" as used in this Deed of Trust shall
be deemed to mean the leasehold estate whenever the context so requires for the
protection of the Beneficiary.
15. That upon default by Trustor in payment of any indebtedness secured hereby
or in performance of any agreement, and the Promissory Note, if applicable, hereunder,
and upon default by Trustor under the terms of any encumbrance, charge or lien which is
or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby
immediately due and payable by delivery to Trustee of written declaration of default and
demand for sale of written notice of default and of election to cause to be sold said
property, which notice Trustee shall cause to be filed for record. Beneficiary shall also
deposit with Trustee this Deed of Trust and any Notes and all documents evidencing
expenditures, secured hereby. After the lapse of such time as then may be required by
law following recordation of such notice of default, and notice of sale having been given as
then required by law, Trustee, without demand on Trustor, shall sell said property at the
time and place fixed by it in such notice of sale, whether as a whole or in separate parcels,
.and in such order as it may determine, at public auction to the highest bidder for case in
716EEDRENT10711219418 7
�titr CLERK
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 ;told, 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 sate and as part
thereof any shares of corporate stock securing the obligations secured hereby, and Trustor
waives demand and notice of such sale. {Beneficiary at its option may also foreclose on
such shares by independent pledge sale, and Trustor waives demand and notice of such
sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including
cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of
sale to payment, first; all sums expended under the terms hereof, not then repaid, with
accrued interest at the rate then payable under the Note or Notes secured hereby, and
then of all other sums secured hereby, and, if there are any proceeds remaining, shall
distribute them to the person or persons legally entitled thereto.
16. To waive, to the fullest extent permissible by law, the right to plead any
statute of limitations as a defense to any demand secured hereby.
17. That Beneficiary may, from time to time, by instrument in writing, substitute
n successor or successors to any Trustee named herein or acting hereunder, which
instrument, executed and acknowledged by Beneficiary and recorded in the office of the
recorder of the county or counties where such property is situated, shall be conclusive
proof of property substitution of such successor Trustee or Trustees, who shall, without
conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers
and duties, including but not limited to the power to reconvey the whole or any part of the
property covered by this Deed of Trust. Such instrument must contain the name of the
original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of
Trust is recorded. If notice of default shall have been recorded, this power of substitution
cannot be exercised until after the costs, fees and expenses of the then acting Trustee
shall have been paid to such Trustee, who shall endorse receipt thereof upon such
instrument. The procedures herein provided for substitution of Trustee shall not be
exclusive of other provisions for substitution provided by law.
18. That this Deed of Trust applies to, inures to the benefit of, and binds all
parties hereto, their heirs, legatees, devisees, administrators, executors, successors and
assigns. The term "Beneficiary" shall mean the owner and holder, including pledgee, of
the Note secured hereby, whether or not names as Beneficiary herein. In this Deed of
Trust, whenever the context so requires, the masculine gender includes the feminine
and/or neuter, and the singular number includes the plural.
19. That in the event the property secured by this Deed of Trust is income
producing property consisting of four units or more, Trustor agrees to file with Beneficiary,
at Beneficiary's request, monthly, on or before the 15th day of each month, a written
operational report. Such operational report shall contain a brief but complete statement of
the month's income and expenses of such property, a list of all vacancies, and a statement
of any material change in the property or business carried on therein for such period.
70EEDREN'nO711 2194/B 8
��„` Cry CLERK
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 theItime 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 sate under any other Deed of Trust or of any action or
proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by
Trustee.
22. That should this Deed of Trust or any Note secured hereby provide any fee
for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any,
of said indebtedness shall be paid prior to the due date thereof stated in said Note or this
Deed of Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or
in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have
declared all sums secured hereby immediately due and payable.
23. That Trustor has made certain representations and disclosures in order to
induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this
Deed of Trust secures, and in the event that Trustor has made any material
misrepresentation or failed to disclose any material fact, Beneficiary at its option and
without notice, shall have the right to declare the indebtedness secured hereby,
irrespective of the maturity date specified in such Note or Notes, immediately due and
payable, and on failure to so pay Beneficiary may make a written declaration of default and
demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it
of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under
this paragraph, is authorized to accept as true and conclusive all facts and statements
therein, and to act thereon hereunder.
Any notice which any party hereto may desire or be required to give to the other
party shall be in writing. The mailing thereof mast 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.
710EEaREN'T10711219416 9
PR1'CLERK
THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of
default and of any notice of sale hereunder be mailed to him at his address hereinbefore
set forth.
TRUSTOR:
L C�
By:
By:
APPROVED AS TO FORM:
Agency Counsel�r
r�5,Y
7 DEEDRENT107f25f94f6 10
,tm a[RK
+ EXHIBIT A
409 UTICA, A-9
(QUICK)
THE FanM OF POLICY OF TITLE INSURANCE C17.'II1✓,f'IATED BY THIS REPow 7$:
ALTA RESIDENTIAL TITLE INSURANCE POLICY (6-1-87)
ALTA LOAN POLICY WITH A A ENDORSE W937 - FORM 1 COVERAGE (4-6-90)
wr nsuaE OR INTEREST IN THYFE 1AND NIMErt*3cTFTt LESCRIEED CUP, REFERRED TO COVERED
33Y THIS REPORT IS : A CIrID11C[NICM AS DEFINED IN SECTION 783 OF THE CIVIL CODE IN
F-W.
771E TCT SAID ESE OR iNvE2EST AT THE DUE ] F IS VE= IN:
ICE II, A CALIFORNIA LIMITED PARTNERSHIP.
THE WTI> REFERRED TO IN ThUS RE3XFT IS SYTMXED IN 713E STATE OF CAIF'CRZATIA,
CX7Uh'I'Y OF OR WE AND IS DESCRIBED AS FOLLOWS:
PARCEi, 1: UNIT No. 9, ClOESISTING OF SIN AIRSPACE AND SURFACE ELEMENTS, AS
EWJ6r�T AAID IN TfE PLAN ("PLAN") FCRZ BRISAS Imo., MAR IDCATID
CN IC T 1 OF TRACT 147VL AS S WR ag A SUBDIVISION MAP RECORDED CN SSPT EMa R 1,
1993, IN BOOT{ 701, PAGES 42 .THlZOL13H 43, INCIOSIV£ OF MISCQT MAPS, IN THE
C?FFICE OF 7HE CIA= CLOUT Y REORDER ("OFFICIAL RECORDS") , WHICH PLAN Umn
RDaICED ON SEPTII2ZR 15, 1993, AS ITSIRLIZNT N0. 93-0621742, OF CE='FICIAL
nomm, CALIFCRNIA.
FARCE 2: AN UZIVIED CiAE FORTY-FOURTH (1/44) FEE SWILE WlraEREEST AS A TENANT
IN alocu IN AM TO NCOULE B SHO«I CN THE P AI AMID DEF'IlE.D IN THE DECLARATION
REFERRED TO BE W AS THE "COMMON AREA"*
BXCAT THaREFRCN ALIJ OIL, GAS, TES AMID C TILOZ HYDROCARBO� SCIBSTWES LYJI�
BE104 A BEPIH OF 500 FEET WlZTMHD T ANY RIC-3T 70 &= UPCV THEE SURFACE OR, MM
S ESaRFACE OF SAID IAND ABOVE A DEPTH OF 500 FEET, AS PROVIDED IN Il` tvr TrS or
Rr0�OR -
A RCsEL 3: 31 'IEDZUUSIVE EASEMENTS FEFt ACCESS, INGRESS, DGRSSS, ice, MOYMENT,
L.�ti.'sDP=--, . , SUPPORT, MAIN7ENANCCT, REPAIRS AND FOR OTHER PURPOSES, ALL,
AS MAY SE S-K IN THE PLAN, Alm AS ARE DESCRIBED IN TIME =MARAT'ION.
PAAMM, 4: EgMESIVE FAS'7 E=RT APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRMM
AKlVE FOR USE FOR PAP101'; PUNK)SES LESClUMED AS EXCIITSIVE UMSE AREAS IN Tri1-
D7CIARA'Tia , OVER! MUCUS Or for 1 Os TRACT 14757 SHMI AND ASSIGqED IN 17FZ
11214.
PARCEL 5: AN EXCLUSIVE EASEMENT APPURTIImor TO PARCELS NO. 1 AND NO. 2 D S^RIRE-
ABOVE, FOR USE FOR PATIO, BAIAZTY, AMID FIRE ESCAPE STAIRCASE PURPOSES DESCIZI�~E
AS EXCLUSIVE USE AREAS IN =- =ARATICN, -AS APPLICABLE, OVt'"'tr POETICrS OF LOT L
OF TRACT 14757 AS SHORT, ASSIGNED AMID DEDCFIPED IN TRE PLAN.
i 1
AGENCY
RIDER TO REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH DEED OF TRUST
AFFORDABLE HOUSING PROGRAM
This rider to the Redevelopment Agency of the City of Huntington Beach Deed of
Trust which was executed by eL/J-Trustor for the property located at
�bq U UGi. � 1 is subject to the terms and conditions of that certain Loan
Agreement entered into by and between Beneficiary and Trustor dated AL= 11
19�g_, to which this rider is attached as Exhibit "C" and incorporated by reference (the
"Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of
Dollars ($M, 060 (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.
I. Acceleration/Due on Sale.
A. Except as provided herein, the Loan and all interest accrued thereon
shall be due and payable upon W 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 loam balance or for any amortization period longer
than the Loan secured by the First Mortgage, or (iv) Trustor being in material default of any
other obligation contained in this Agreement or any provision of the Affordable Housing
Agreement or Covenant, as defined herein, recorded on the Property, or (v) Trustor violates
any condition of the Deed of Trust or Promissory Note, or (vi) the death of Trustor (unless
the Trustor's household, occupying the Property, contains more than one qualified
participant in the affordable housing program pursuant to which this Loan is being made,
and at least one qualified participant survives). At the request of Trustor, the Agency
may, in its sole discretion, extend the term of the Loan.
1
7Roandoclagcyridr107112194
CM CtfRK
B. Exception to Repayment Provision.Accrued interest shall be due and
payable upon sale of the Property to a Qualified Buyer who assumes the Agency Loan only
if, at the time of sale, the sales price of the Property is equal to or greater than the amount
of the original purchase price plus five percent (5%) of that amount per year for every full
year of ownership, starting at the close of escrow described in paragraph one (1) herein,
and any pro rata share applicable to any portion of a remaining year.
2. Occunancy Standards. The Property shall be used as the personal residence
of Trustor and Trustor's immediate family and for no other purpose. Trustor shall not enter
into an agreement for the rental or lease of the Property.
3. Protection of-Beneficiary's Rights in the Property.
A. if Trustor fails to perform the covenants and agreements contained in
this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary's
rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or
forfeiture or to enforce laws or regulations), then Beneficiary may do and pay for whatever
is necessary to protect the value of the Property and Beneficiary's rights in the Property.
Beneficiary's actions may include paying any sums secured by a lien which has priority
over this Deed of Trust, appearing in court, paying reasonable attorney's fees and entering
on the Property to make repairs. Although Beneficiary may take action under this Section,
Beneficiary does not have to do so.
B. Any amount disbursed by Beneficiary under this section, shall become
additional debt of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary
agree to other terms of payment, these amounts shall bear interest from the date of
disbursement at the highest rate permitted by law and shall be payable, with interest, upon
notice from Beneficiary to Trustor requesting payment.
4. Equity Share. In the event that the Agency Loan becomes due and payable prior to
the thirtieth anniversary of the date of the Loan Agreement, Trustor shall pay to Beneficiary
2
7floandocla9cyridrf07112/94
CITY Oro
T .
concurrent with the principal and accrued interest, an amount equal to the "Equity Share
Amount." The Equity Share Amount shall be determined by applying a percentage factor (the .
"Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined
below) as follows:
• 1. Prior to fifth anniversary fifty percent (50%)
of the Agency Deed of Trust:
2. After fifth anniversary but forty-eight percent (48%)
prior to sixth anniversary:
3. After sixth anniversary but forty-six percent (4611 )
prior to seventh anniversary:
4. After seventh anniversary but forty-four percent (44%)
prior to eighth anniversary:
5. After eighth anniversary but forty-two percent (42%)
prior to ninth anniversary:
6. After ninth anniversary but forty percent (40%)
prior to tenth anniversary:
7. After tenth anniversary but thirty-eight percent (38%)
prior to eleventh anniversary:
8. After eleventh anniversary but thirty-six percent (36%)
prior to twelfth anniversary:
9. After twelfth anniversary but thirty-four percent (34%)
prior to thirteenth anniversary:
10. After thirteenth anniversary but thirty-two percent (32%)
prior to fourteenth anniversary:
11. After fourteenth anniversary but thirty percent (30%)
prior to fifteenth anniversary:
12. After fifteenth anniversary but twenty-eight percent (28%)
prior to sixteenth anniversary:
3
711oandoclagcyridr/07112194
- 13. After sixteenth anniversary but twenty-six percent (26%)
prior to seventeenth anniversary:
14. After seventeenth anniversary but twenty-four percent (24%)
prior to eighteenth anniversary:
15. After eighteenth anniversary but twenty-two percent (22%)
prior to nineteenth anniversary:
16. After nineteenth anniversary but twenty percent (20%)
prior to twentieth anniversary:
17. After twentieth anniversary but eighteen percent (18%)
prior to twenty-first anniversary:
18. After twenty-first anniversary but sixteen percent (16%)
prior to twenty-second anniversary:
19. After twenty-second anniversary but fourteen percent (14%)
prior to twenty-third anniversary:
20. After twenty-third anniversary but twelve percent (12%)
prior to twenty-fourth anniversary:
21. After twenty-fourth anniversary but ten percent 0 0%)
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 bnniversary 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 (0%)
4
Moandoclagcyridr10 711 219 4
an CURX
The "Purchase Price" is the original purchase price paid by the Participant to the
Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs,
broker's commission, loan fees or any other closing or transaction costs.
~ The "Sales Price" is the price to be paid by the buyer of the Property (the "Buyer")
to Participant for Participant's interest in the Property, exclusive of escrow fees, title
insurance costs, broker's commissions, loan fees or any other closing or transaction costs.
In the event of sale of the Property and at the election of the Agency, the Agency
may appoint a certified,.independent appraiser to conduct any appraisal of the Property, at
Participant's expense to assist the Agency in determining if the Sales Price is at or near
the fair market value of the Property at such time. If the Sales Price is determined by the
appraisal to be three percent (3%) or more below the fair market value of the Property as
estimated in said appraisal, then the "Sales Price" for purposes of determining the Equity
Share Amount shall be the fair market value of the Property established in said appraisal.
PARTICIPANT ACKNOWLEDGES AND AGREES THAT IN THE EVENT THAT THE
LOAN WHICH THE DEED OF TRUST SECURES BECOMES DUE AND PAYABLE PRIOR TO
THE 30TH ANNIVERSARY OF THE LOAN AGREEMENT, PARTICIPANT SHALL PAY TO
AGENCY AN EQUITY SHARE AMOUNT EQUAL TO A PERCENTAGE SHARE OF THE
APPRECIATION OF THE PROPERTY AS CALCULATED PURSUANT TO THIS SECTION.
THE AGENCY ACKNOWLEDGES AND AGREES THAT PARTICIPANT SHALL ONLY PAY
THE EQUITY SHARE AMOUNT TO THE AGENCY IF, AND ONLY IF, PARTICIPANT FAILS
TO ABIDE BY COVENANTS OR OTHERWISE FAILS TO COMPLY WITH THE PROVISIONS
OF THIS AGREEMENT OR PARTICIPANT SELLS THE PROPERTY TO A BUYER NOT
QUALIFIED BY THE AGENCY IN ACCORDANCE WITH PARAGRAPH "C" BELOW.
LL fit r� /rJ
PARTICIPANTITRUSTOR AGENCY
5
71'o8ndoc1&gcvridrl07112194
MY CLERK
/ f
f • 1
The value of all capital improvements to the Property made while Participant owned
and occupied the Property shalt 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: G) an itemized list of the improvements, (ii) reliable proof of
completion of the improvements (as evidenced e.g., by final building
permits or certificate of completion), and (iii) reliable evidence of the cost
t�
of the improvements and that Participant paid those costs (as evidenced
e.g., by an itemized invoice or receipt).
Notwithstanding the foregoing, Participant's obligation to pay the Equity Share
Amount is subject to a superior right of Participant, upon termination of the Agency Loan,
to receive repayment of money paid by the Participant without Agency assistance for
purchase of the Property (including down payment, installment payments of mortgage
principal pursuant to the First Lien, escrow fees, transfer taxes, recording fees, brokerage
commissions, and similar costs actually paid by the Participant) and money paid by the
Participant for capital improvements to the Property.
5. New Loan to Qualified Buyer. Notwithstanding the provisions
herein above, it the Property is sold by the Trustor to a Buyer of low or moderate income,
as defined by Section 50093 of the California Health and Safety Code, or any provision of
law which may be enacted in the future, replacing Section 50093 or the law which defines
"low or moderate" income for the purposes of affordable housing, and approved by
Agency, ("Eligible Person or Family") and the Sales Price does not exceed an "affordable
housing cost," as defined by Section 50052.5 of the California Health and Safety Code, to
such Buyer, and the Buyer assumes the Trustor's loan, then no Equity Share Amount is
due to the Beneficiary upon such sale. In order to verify the Buyer's status as an Eligible
Person or Family, Trustor shall submit to the Beneficiary, together with the notice of
6
lloandoc/agcyridr/07/12/94
blY CLERK
proposed sale pursuant to the Loan Agreement, the identity of the proposed Buyer and
adequate information evidencing the income of the proposed Buyer. Said income
information shall include original or true copies of pay stubs, income tax records or other
financial documents in order that the Beneficiary may determine and verify t�e 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
rind the Equity Share Amount shall be due and payable concurrent with the repayment of
the Note Amount plus interest. In the event that sale or transfer is made to an Eligible
Person or Family, interest which has accrued at the time of the sale (upon close of escrow)
shall be due and payable, unless the Property has appreciated in value in an amount which
would be equal to or less than the value of the Property if the appreciation rate had been
five per cent (5%) per year over the original price paid by the Trustor. if the price of the
Property upon sale to an Eligible Buyer reflects less than 5% appreciation per year over the
price paid by the Trustor at the time of original purchase, then no interest will be due upon
such sale. Interest will begin to accrue at the simple rate of five percent per annum as to
the new owner, on the date upon which escrow closes and will accrue on the then unpaid
principal amount.
6. Subordination. The Beneficiary has found and declared that an economically
feasible method of financing, refinancing or assisting first time homebuyers pursuant to the
Program on substantially comparable terms and conditions without subordination is not
reasonably available.
Any first lien on the Property ("First Lien") held by an institutional lender or
investor (the "Lender") shall be prior and superior to the Declaration and this Deed of
Trust. Thus, in the event of a foreclosure or deed in lieu of foreclosure of the First Deed of
Trust, any provisions herein or any provisions in any other collateral agreement restricting
the use of the Property to low or moderate income households or otherwise restricting the
7
740andoclagcyridr/07/12194
i CLERK
�• Trustor's ability to sell the Property shall have no further force or effect on subsequent
owners or purchasers of the Property. Any person, including his successors or assigns
(other than the Trustor or a related entity of the Trustor), receiving title to the Property
through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive
title to the Property free and clear from such restrictions.
7. Obligation to Refrain from Discrimination. There shall be no discrimination
against or segregation of any person, or group of persons, on account of race, color, creed,
religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease,
transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Beneficiary
itself or any person claiming under or through it establish or permit any such practice or
practices of discrimination or segregation with reference to the selection, location, number,
use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the City or
any portion thereof.
Trustor agrees it shall instruct the escrow holder for the acquisition of the
Property by the Trustor that the order of recording in the escrow for the purchase of the
Property by the Trustor shall occur as follows: 1) the First Lien; 2) the Declaration of
Covenants, Conditions & Restrictions for Affordable Housing; and 3) the Agency Deed of
Trust.
8
711 3andoclagcyridrrro7112/94
Ory CLERK
The Trustor shall cause a Request for Notice to be recorded on the Property
subsequent to the recordation of the First and Second Liens, deeds of trust, or mortgages,
requesting a statutory notice of default as set for the in the California Civil Code.
TRUSTOR'S S1GNA RE
TRUSTOR'S SIGNATURE
APPROVE AS TO FORM:
4
ti
Agency Counsel 15d0
9
711oandoclagcv6drl07l25l94
CLEF,!(
2000 MAIN STREET CALIFORNIA 92648
O[FfFECfE OF THE CFV CLERK
CONNIE BROCKWAY
CITY CLERK
DEED CERTIFICATION
This is to certify that the interest in real property conveyed by the Deed of Trust
dated August 11, 1994 from TERESA L. QUICK to the REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON BEACH, a governmental agency, is
hereby accepted by the undersigned officer or agent on behalf of the Agency
pursuant to the authority conferred by Resolution No. 244 of the Agency and the
grantee consents to the recordation thereof by its duly authorized officer.
Dated: August 22, 1994
CITY OF HUNTINGTON BEACH
CONNIE BROCKWAY, CMC
CLERK
By: .' "fl
Deputy Cleric
g:cc\deedcert
(Telephone:714-536-5227)
ALTA loan Policy
Form 1
110-17.92)
Policy of Title Insurance
Issued By M 183- 4 9 3 B B B
Nations Title Insurance Company
SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE
B ANDTHE CONDITIONS AND STIPULATIONS,NATIONSTITLE 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,sustairied or incurred by the insured by reason of:
1. Title to the estate or interest described in Schedule A being vested other than as stated therein;
2. Any defect in or lien or encumbrance on the title;
3 Unmarketability of the title;
4. lack of a right of access to and from the land;
5. The invalidity or unenforceability of the lien of the insured mortgage upon the title;
6. The priority of any lien or encumbrance over the lien of the insured mortgage;
7. lack of priority of the lien of the insured mortgage over any statutory lien for services, labor or material:
(a) arising from an improvement or work related to the land which is contracted for or commenced prior to Date
of Policy;or
(b) arising from an improvement or work related to the land which is contracted for or commenced subsequent to
Date of Policy and which is financed in whole or in part by proceeds of the indebtedness secured by the insured
mortgage which at Date of Polity the insured has advanced or is obligated to advance;
a Any assessments for street improvements under construction or completed at Date of Policy which now have gained
or hereafter may gain priority over the insured mortgage;or
9. The invalidity or unenforceability of any assignment of the insured mortgage,provided the assignment is shown in
Schedule A,or the failure of the assignment shown in Schedule A to vest title to the insured mortgage in the named
insured assignee free and clear of all liens.
The Company will also pay the costs,attorneys'fees and expenses incurred in defense of the title or the lien of the insured
mortgage,as insured, but only to the extent provided in the Conditions and Stipulations.
Nations Title Insurance Company
President
d�4 (7
Countersigned: Attest:
f �f
Secretary
�y
Authorized Officer or Agent
17N
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this polity and statutory lien for services,labor or material or the extent insurance is afforded
the Company will not pay loss or damage,costs,attorneys'fees or expenses which herein as to assessments for street improvements under construction or com- ;
arise by reason of: pleted at Date of Policy);or,
1. (a) Any law,ordinance or governmental regulation(including but not limited to (e) resulting in loss or damage which would not have been sustained if the in-
building and zoning lours,ordinances,or regulations)restricting,regulating, sured claimant had paid value for the insured mortgage.
prohibiting or relating to(i)the occupancy,use,or enjoyment of the land; 4. Unenforceability of the lien of the insured mortgage because of the inability or
(ii)the character,dimensions or location of arty improvement now or hereafter failure of the insured at Date of Policy,or the inability or failure of any subsequent
erected on the land;(iii)a separation in ownership or a change in the dimen- owner of the indebtedness,to comply with the applicable doing business laws
sions or area of the land or any parcel of which the land is or was a part; of the state in which the land is situated.
or(iv)environmental protection,or the effect of any violation of these laws, 5. Invalidity or unentorceability of the lien of the insured mortgage,or claim thereof,
ordinances or governmental regulations, except to the extent that a notice which arises out of the transaction evidenced by the insured mortgage and is
of the enforcement thereof or a notice of a defect,lien or encumbrance resulting based upon usury or any consumer credit protection or truth in lending law.
from a violation or alleged violation affecling the land has been recorded in (x Any statutory lien for services,labor or materials(or the claim of priority of any
the public records at Date of Policy, statutory lien for services,labor or materials over the lien of the insured mort-
(b) Any governmental police power not excluded by(a)above,except to the extent gage)arising from an improvement or work related to the land which is contracted
that a notice of the exercise thereof or a notice of a defect,lien or encum- for and commenced subsequent to Date of Policy and is not financed in whole
trance resulting from a violation or alleged V'D%tbon afleclinp the land has to in part by proceeds of the indebtedness secured by the insured mortgage which
been recorded in the public records at Date of Policy. at Date of Policy the insured has advanced or is obligated to advance.
2. Rights of eminent domain unless notice of the exercise thereof has been recorded Z Any claim,which arises out of the transaction creating the interest of the mortgagee
in the public records at Date of Policy,but not excluding from coverage any taking insured by this policy, by reason of the operation of federal bankruptcy, state
which has occurred prior to Hate of Policy which would be binding on the rights insolvency, or similar creditors' rights laws, that is based on:
of a purchaser for value without knowledge. (a) the transaction creating the interest of the insured mortgagee being deemed
3. Defects, liens, encumbrances, adverse claims or other matters: a fraudulent conveyance or fraudulent transfer; or
(a) created,suffered, assumed or agreed to by the insured claimant; (b) the subordination of the interest of the insured mortgagee as a result of the i
(b) not known to the Company,not recorded in the public records at Dale of Policy, applicalinn of The doctrine of equitable subordination; or
but known to the insured claimant and not disclosed in writing to the Com- (c) the transaction creating the interest of the insured mortgagee being deemed
pany by the insured claimant prior to the date the insured claimant became a preferential transfer except where the preferential transfer results from the
an insured under this policy; failure:
(c) resulting in no loss or damage to the insured claimant; (i) to timely record the inslrumeM of transfer;or
(d) attaching or created subsequent to Date of Policy(except to the extent that (ii) of such recordation to impart notice to a purchaser for value or a judge-
this policy insures the priority of the lien of the insured mortgage over any ment or lien creditor,
- I
CONDITIONS AND STIPULATIONS
1. DEFINITION OF TERrds. contractual condition requiring the delivery of marketable title. or interest or the lien of the insured mortgage,as insured.and
The following terms when used in this policy mean: Z CONTINUATION OF INSURANCE. which might cause loss or damage for which the Company may
(a) 'insured":the insured named in Schedule A.The term (a) After Acquisllton of Title.The coverage of this policy be haste r t virtue of this polity,or(iii)a title s i the estate ror
e-
"insured"also includes interest or the lien of the insured mortgage as Insured,is re
sftall continue in torte as of Date of Policy in fawn at i7 an insured
() the owner of the indebtedness secured by the insured who acquires all or any part of the estate or interest in the land jetted as unmarketable.If prompt notice shall not be given to
mortgage and each successor in ownership of the indebtedness by foreclosure.trustee's sale,conveyance in lieu of foreclosure, the Company,then as to the Insured all Lability of the Conn
except a successor who is an obligor under the provisions of or other legal mannetwhichdischarges the Len of the insured party shall terminate with regard to the matter or matters for
Section 12(c)of these Conditions and Stipulations(reserving, mortgage;(h]a transferee of the estate or interest so acquired 'rt"ch prompt notice is required;provided.however lhat failure
howrever;all rights and defenses as to any successor that tfk from an insured corporation,provided the transferee i5 the to notify the Company shall in no case prejudice the rights of
Company
nle s the successoacquired against
predecessor
purc uhrasei parent ircorporwholly-wriedsuccessors
esrsby of the insured corporation, ud�by�under this��th unless lll extent�ryshall,e�p�
for value without knowledge of the asserted defect, ken, and their corporate successors by operation of law and not by I �` of
encumbrance,adverse claim or other matter insured against purchase,aiinst subject
predecesgsor ihts nsureds;and the
artyagovern.es 4 DUTY OF INSURED CLAIMANT TO COOPER OF ATE.
by this polity as affecting tite to the estate or interest in the land); mental agency or governmental instrumentality which acquires (a) Upon written request by the insured and subject to
(ii) any governmental agency or governmental instru- all or any part of the estate or interest pursuant to a contract the options contained in Section 6 of these Conditions and
mentality which is an insurer or guarantor under an insurance of insurance or guaranty insuring or guaranteeing the in- Stipulations, the Company, at its own cost and without
contract or guaranty insuring or guaranteeing the indebtedness debtedness secured by the insured mortgage. unreasonable delay.sham provide lorthe defense of an insured
secured by the insured mortgage:or any part thereof,whether (b) After Conveyance of Title,The coverage of this policy in litigation in which any third parry asserts a claim adverse
named as an insured herein or not; shalt continue in force as of Date of Polity in favor of an in- to the title or interest as insured,but only as to those stated
(iii) the parties designated in Section 2(a) of these sured only so long as the insured retains an estate or interest causes of action alleging a defect.Len or encumbrance or other
Conditions and Stipulation& in the land,or holds an Indebtedness secured by a purchase matter insured against by this policy.The Company shall have
(b) "insured claimant": an insured Claiming loss or money mortgage given by a purchaser from the insured,or the right to select counsel of its choice(subject to the right
damage. only so long as the insured shall have liability by reason of of the insured to object for reasonable cause)to represent the
(c) "knowledge' or "known"- actual knowledge, not covenants of warranty made by the insured in any transfer or insured as to those stated causes of action and shall not be
constructive knowledge or notice which may be imputed to an conveyance of the estate or interest.This polity shall not con- liable for and will not pay the tees of any other counsel.The
insured by reason of the public records as defined in this policy tine in force in favor of airy purchaser from the insured of either Company wit not pay any fees.costs or expenses incurred by
or any other records which impart constructive notice of matters p)an estate or interest in the land.or(ii)an indebtedness the Wmxed in the defense of thosecauses of action which allege
affecting the land. secured by a purchase money mortgage given to the insured. matters not insured against by this polity.
(d) 'land":the land described or referred to in Schedule (c) Amount of Insurance:The amount of insurance after (b) The Company shall have the right,at its own cost,to
(A),and improvements affixed thereto which by law constitute the acquisition or after the conveyance shall in neither event institute and prosecute any action or proceeding or to do any
real property.The term'land"does not include any p opetty exceed the leas(of;
other act which in its opinion may be necessary or desirable
bend the fines of the area described o referred to i Schedule (i The amount of insurance stated in Schedule A: to establish the title to the estate or interest or the lien of the
(A,rgrarry right,title interest,estate or easement in abutting
streets,roads.avenues,alleys,lanes.ways or waterways,but {�c) The amount of the principal of the indebtedness insured mortgage,as insured,or to prevent or reduce toss or
nothing herein shall es.modify l or limit the extern to waterways.
aright secured by the insured mortgage as of Date of Policy,interest damage to the insured.The Company may take any appropriate
of access re and from the land is cheered by this policy. thereon.expenses of foreclosure,amounts advanced pursuant action under the terms of this polity,whether or not ii shall
[ce s t o and from
mortgage,creed r jabs this
trust deed,or to the insured mortgage to assure compliance with laws or to be liable hereunder,and shall not thereby concede liability or
other security instrument. protect the lien of the insured mortgage prior to the time of waive any provision of this policy.If the Company shalt exer-
(t1 "pubic records": records established under stale acquisition of the estate or interest In the land and secured cise its rights under this paragraph,itshall do so diligently.
statutes a&Date of Polity for the purpose of imparting con- thereby
iimproovvement&but tedule amounts ced expended
the amount ofnt n2A or interpose
d d tense aasmequ+red of permittall ham ed by the action
statutes notice of matters relating to real property to purchasers payments made;or sions of this policy,the Company may pursue any litigation to
for vat g and without kiow Ledge.Wrdt respect to Section 1(a)(0 (iii) The amount paid by any governmental agency or final determination by a court of competent jurisdiction and
of the Exclusions From Coverage."public records"shall also governmental instrumentality,it the agency or instrumentality expressly reserves the right,in its sole discretion,to appeal
include environmental protection liens filed in the records of ,s the insured claimant in the acquisition of the estate or interest from any adverse judgment or order.
the clerk of the United States district court for the district lit in satisfaction of its insurance contract or guaranty. (d) In am cases where this polity permits or requires the
which the land is located. Company to prosecute or provide @or the defense of any ac-
(g) "unmarketability of the title":an alleged or apparent I NOTICE OFCLAIBITO BE GIVEN BY INSURED CUUf ANT tion or proceeding,the insured sham secure to the Company
matter affecting the title to the land,not excluded or excepted The insured shall notify the Comparry promptly in writing(i the right to 5o Prosecute or provide defense in the action or
from coverage,which would entitle a purchaser of the estate in case of arty litigation as set forth in Section 4(a)below.(ii� proceeding,and all appeals therein,and permit the Company
or interest described in Schedule A or the insured mortgage in case knowledge sham come to an insured hereunder of any use,at its option,the name of the insured for this purpose.
to be released from the obligation to purchase by virtue of a(nfaim of title or interest which is adverse to the title to the estate
(continued on inside back cover)
1720
ALTA LOAN POLICY V
SCENE A
TOTAL FEE FOR TITLE, EYAVaNMa1CN
AND TITLE INSURANCE $7S.00
� AM3UNT OF INSURANCE: $25,000.00 LOAN NO. QUICK
ORDER NO. 216709-3
POiICY NO. M 183-493888
DATE OF POLICY: AUGUST 22, 1994
AT: 2:41 P.M.
1. NAME OF INSURED:
TSE REDEVELrOPMENr AGENCY OF TSE CITY OF HURrI VG ON BEACH, A PUBLIC BODY
CRATE AND POLITIC
2. THE ESTATE OR mTEREST IN THE LAND DESCF.IRID IN SCHE x' A AND MUCH IS
COVERED BY THIS POLICY IS: A CONDOMINIUM AS DEFINED IN SECTION 783 OF IEEE
CP.LIFTENIA CIVIL CODE, IN FEE.
3. THE ESTATE OR INTEREST REFERRED TO HEREIN, IS AT DATE OF POLICY VESTS IN:
TERESA L. QUICK, A SINGLE VOMAN
4. THE NORTOW, HEREIN REFERRED TO AS THE INSURED MORTGAGE, AMID THE
ASSIGNMENTS THEREOF, IF ANY, ARE DESCRIBED AS FOLL ONS:
,.,DEED OF TRUST' TO SECURE AN INDEBTEDNESS.
AM=: $25,000.00
TRUSTOR: TERESA L. NICK
TRUSTEE: THE CITY OF HUNTINGICN BEACH, A MUNICIPAL C RPORATICN
BENEFICIARY: THE RIDEVfEIJWE TT AG= OF THE CITY OF HUNTINC;IL'N
BEACH, A PUBLIC BODY CORPORATE AND POLITIC
DATED: A133JS'T 11, 1994
RECORDED: AUIOJSr 22, 1994 AS I SSI NO. 94-515394, OF OFFICIAL
RECCE
CFDCR NO.: 216709-3 too)
PILE NJ. : 2
SCHEDULE A
(CONTINUED)
5. THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLLOWS:
THE LAND IS SITUNTED IN THE
STATE OF C ALIFURNIA
COUNTY OF C RANC2
PARCEL 1: LIVIT N0. 9, CxNSISTENG OF CERTAIN AIRSPACE AND SURFACE ELEMENTS, AS
SHOVN AMID DE5C R BED IN THE CONDOMINIUM PLAN ("PLAN") FOR BRISAS DEL MAR LOCATED
CFI LOT 1 OF TRACT 14757, PS smow I CN A SUBDIVISION MAP RECORDED ON SEPTEMBER 1,
1993, IN BOOK 701, PAGES 42 THROUGH 43, INCLUSIVE OF MISCETS MAPS, IN THE
OFFICE OF THE ORAD]GE C]3CIIaI'Y READER ("OFFICIAL RECORDS") , WHICH PLAN WAS
RECCRDOD ON SEPT1721EZ 15, 1993, AS INST1ZIM TT NO. 93-0621742, OF OFFICIAL
RECORDS, CALIFORNIA.
PARCEL 2: AN UNDIVIDED ONE FORTY-FOURfIH (1/44) FEE SIMPLE INTEREST AS A TET=NT
IN C a44O N IN AND TO MIXIL,EE B SHOV+N ON THE PLAN AID DEFINED IN THE DECLARATION
REFERRED TO BELCJR AS THE "OOT93N AREA".
EXCEPT THEREFROM ALL OIL, CAS, MInNOEMAULS ADD 0-n0t HYDROCARBONS, BELOW A DEPTH OF
500 FEET, WIT}it7[TT THE RIGHT OF SURFACE ENTRY, AS RESERVED IN DEEDS OF RECIORD.
011TEL3: 1139EKCUUSIVIE
EASEMW S Fat ACCESS, INGRESS, EGRESS,S,, USE, EN0CJYMZNT,
DRMNGE, ENCROACHMENT, SUPPORT, f REPAIRS AN) FOR OTHER PURPOSES, ALL AS MAY BE SHOLIIN IN THE PLAIN, AND AS ARE DESCRIBED IN THE DECLARATION.
PNZ11, 4: E MMIZIVE EASEMENTS APPURTENANT TT TO PARCELS NO. 1 AND NO. 2 DESCRIBED
ADAVE FCXt USE FOR PARKING PURJXT FS DESK AS EXC 1 SIVE USE AREAS IN THE
DECLARATION, OVER S INS OF LOT 1 OF TRACT 14757 SHOW AND ASSIGNED IN THE
PI1 N.
PARCEL 5: AN EXCLUSIVE EASEMENT APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESC2IBID
ABOVE, FOR USE FOR PATIO, BALCONY, AND FIRE ESCAPE STAIRCASE PURPOSES DESCRIBED
AS ExCII1SIVE USE AREAS IN THE DECLARATION, AS APPLICABLE, OVER PORTIONS OF LOT L
OF TRACT 14757 AS Ste, ASSIGNED AND DESCRIBED IN TIE PONK.
CODER ND.: 216709-3 ALTO ICON POLICY
PAGE ND. : 3
SCfEEI[JLE B
PART I
THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AMID THE COMPANY WILL NOT PAY
OOSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF:
A. GENERAL AMID SPECIAL TAXES, A L= NOT YET PAYABLE, FOR THE FISCAL YEAR 1994-
1995.
B. THE LIFE OF SUPPLII=L TAXES, IF ANY, ASSESSED PURSCAMTr TO CIlm= 3.5
COMMENCING ICING WITH SECTION' 75 OF THE CALIFORNIA REVENUE AMID TAXATION CODE.
1. THE EFFECT OF A CXxT'!LN= OIL AND GAS LEASE EXECUTED BY L OUIS BENISON AND
EIIJISE B. BETXZ, HIS WIFE AND BY (7THE11 PERfXl TS AS TO OTHER. LAND, AS
LESSORS, AMID BY COLEMBIA LEASING AND DEVEDUPING COMPANY, A CORPORATION, AS
LESSEE, RECORDED NUaIMER 6, 1920 IN BOOK 16, PAGE 198 AI1] RE-RECaORDED
AUGZJST 11, 1921 IN BOOK 25, PAGE 247 OF LEASES, BOTH OF LEASES, TO WHICH
RECORD REFERENCE IS MADE FOR FULL PARTICULARS.
2. AN FASII EN!' FOR PURPOSE'S HEREIN STATED, AMID RI= INCIDENTAL THERETO AS
PROVIDED IN A DOCUMENT
FOR: PIPE I=
AFFECTS: ALONG THAT PORTION OF SAID LAND
RECORDED: IN BOOK 319 PAGE 149 OF DEEDS.
3. COVENANTS, COROITICMS AND RF.SIRICTIaMS, (DELETING THEREFROM ANY RESTRICTIONS
BASED ON RACE, COLOR, OR CREED) , AS PROVIDED IN A UC CMENP RECORDED IN BOOK
319 PAGE 149 OF DEEDS, OF OFFICIAL Rom.
SAID OOVEESkWS, CONDITIONS AMID RESTRICTIONS PROVIDE THAT A VIOLATION 'THE EOF
SHALL, NOT DEFEAT NOR R aC R INVALID THE LIFE OF ANY MA[ZIGASE Cat DEED OF
TRUST MADE IN ClOO D FAITH AND FOR VALUE.
4. AN EASE 111TT FAR PURPOSES HEREIN STATED, AAID RIGS fry INCIDENTAL THERETO AS
PROVIDED IN A DOCIIMMENr
Fm: PIPE, POLE L11ME
AFFECTS: AWNG THAT PORTION OF SAID LAMED
REOC�DID: IN BOOK 578 PAGE 269, OF OFFICIAL RECORDS.
5. AN FARa*11T FOR, PURPOSES HEREIN STATED, AMID RIGHTS INCIDENTAL THERETO AS
PROVIDED IN A DOO[NI£NT
FOR: PIPE LINE
AFFECTS: ALCNG THAT PORTION OF SAID LAMED
REIDORDID: IN BOOK 865, PAGE 15 OF OFFICIAL RECORDS.
6. AN FASII?alTT FOR PLIlZPOSES HEREIN SEATED, AND RIGHTS INCI WIAL, THERETO AS
PROVIDED IN A DOCZk'�Tr
FOR: PIPE LINES
AFFECTS: AT1l1G THAT PORTION OF SAID LAND
RECORDED: IN BOOK 3577, PAGE 119, OF OFFICIAL RECORDS.
WEER PA.: 216709-3
PIM- ND. 4
7. AN FCAS9,0U FM R RPOSF.S HEREIN STATED, AND RIGM IN aTML T-IEREM AS
PROVIDED IN A DOCMIQTT
FOR: PIPE MES
AFFTS: A,LCEU THAT PORTTCN OF SAID LAMED
RECORDED: IN BOOK 3660 PAGE 257, OF OFFICIAL REa)RDS.
S. AN EASEMENT AS SET F=H IN AN INSI UMTT R.ECX 0ED AS IlMMIV= NO. 87-
440298, OFFICIAL RI3OMM.
MR: PU=C DIES AMID LNCIDEllM PURPOSES
AFFEC'I5: ALUU TTT PORTICN OF SAID LAND.
SAID DEED PROVIDES THAT NO BLTIIaING OR STRUCMRE SILL BE PLACE OR
MAINTAIN ON SAID EASEMENT.
9. Tim TM S, PROVISICKS AMID MIDITIONS 0XMAINID IN A DOCUMEgT EN TI=D
"AFFORDAME HOUSIM RFSTRICTICN AMID C OVE�=11, EDMCTIED BY AMID BMIEEV
BEAf3rIE = LAKE STREt:T PROP=ES AMID TFT = OF H=MW BEAM, PBMPDID
SII�TIIGM 2, 1987 AS INSTRUMENT NO. 87-500026 OF OFFICIAL REMRDS.
10. AN FASFIMERr AS SET FORTH IN AN INSIM4= RECCRDED AS INSTRUMENT NO. 87-
534842, OFFICIAL RECORDS.
FOR: PUBLIC UTILITIES XND 324CIDENT1L PURPOSES
AFFECTS:: AL CNG THAT PCSMCN OF SAID LAND.
11. AN FAS IMU FAR PURE= HEREIN STATE, AM, RIOTS INCIDENTAL, TW= AS
PROVIDED IN A DOCUMENT
EAR: LATER MAIN
AFFECTS: ALCtr,, THAT PCMON OF SAID LAMED
RE00RDED: AS IMMUly 3 r NO. 87-583411, OF OFFICIAL REO?GRDS.
12. ME TERMS, PROyVISICN9 AMID C ONDITICNS CWTAINID IN A DOCCME Nr EMTMM
"DECLARATION OF RESTRICTIONS AMID SUBDIVISICK CXXZ NTS", EXECUTED BY DELAWARE
II, A CALIFaWM LIMITED PARRIM IMP, 13M RDID APRIL 6, 1993 AS 11MM U
NO. 93-0230267 OF OFFICIAL RFTbRDS.
13. 7M FACT THAT THE MWOUP OF SAID LAM DOES Mr Il4CLLME RIGrM OF ACCESS
TO OR FROM THE SIRES!' OR HIMIAY ABUTTING SAID LAMED, SUM RIOTS HWIM BEEN
RE DQ UISFED BY THE MAP OF SAID TRACT.
AFFECTS: DE LAIVIRE STREET', UTICA AVENUE AMID CALIFU IA STRF�T
14. ATV nMTU+IE C ENTI= "MNDC1',MUU4 PLAN" RFOCRDID SEPTET EM 15, 1993 AS
IRUNM NO. 93-0621742 OF OFFICIAL, RECCRAS; REFERENCE BEING MADE TU THE
RECORD THEREOF FOR FULL PARTICULARS.
ORDER NO.: 216709-3 f
PAGE NO. . 5
15. THE MATOM RS COVE IN A DOCIMENT ENTITLED "DECLARATION ARATICN OF COVENANTS,
CONDITIONS ARD RESTRICTIONS", REOORDFD AS INSTRUMENT IQ 93-0625045, OF
OFFICIAL RECORDS, WCH AMCM artM THINGS, PROVIDE FOR CERTAIN EASEMENTS,
ims AMID SL>BamDIImTIC l THEREOF, PROVISIONS RELATING; TO PARTITION,
RESTRICTIONS CAI TIE SEVERABILITY OF ClOMPO NENT INTEREST, COVENANTS,
CONDITIONS AND RESTRICTIONS AFFECTING SAID ESTATE OR INTEREST.
THE RICWIT TO LEVY CERTAIN CHARGES CIO ASSTE-SRS NTS AGAINST SAID LAND S+ cH
SHALL BECOME A LIEN IF oar PAID, AS THEREIN' SET FORTH.
SAID COVENANTS, CGNIDTTIamS, AMID RESIRICTians PROVIDE THAT A VIOLATIC[Q
THEREOF SHALL NOT DEFEAT NOR RENDER INVALID THE LIEN OF ANY MJRTSAGE OR DEE37
OF TRUST M= IN GOOD FAITH AND FOR VALUE.
SAID COVENANTS, CONDITIONS SS AND REIDUCTI11NS WERE MODIFIED BY A DOCLI=
RE03RDM AS INsTRu ENT NJ. 93-0680846, OF OFFICIAL REC]OP.DS.
16. EASEM=ENT FOR INGRESS, EGRESS, PIPELIN10S, DRAIlNAGE, SANITARY SEWERS, PUBLIC
UTILITIES OR SLOPES AND INCIDENTAL PURPOSES, AS DISCLOSED BY OF
RECORD, AFFEG*!'ING COY THE "COMMON ON WA".
17. THE NW,TTE RS CONTAINED IN A D031I TT ENTITLED "DECLARATION OF COVENANTS,
CONDITIONS AND RESTRICTIONS", RECORDED AS INanu ANT NO. 93-0635859, OF
OFFICIAL Rom, MUCH ANENG OTHER THINGS, PROVIDE FOR CERTAIN EASEMENTS,
LIENS AND SUBORDINXTICN THEREOF, PROVISIONS RELATING TO PARTITION
RESTRICTIONS Cti THE SEVERABILITY OF ClOMPONEur mmTEREsT, cuvac,NT5,
CONDITIONS AND RESTRICTIONS AFFECTING SAID ESTATE OR INTEREST.
THE RRI T TO LEVY CF.Ft'I'F+ N CHARGEiS OR ASSFSSN= AGAINST SAID LAND VMCH
SHALL BECAME A LIEN IF NOT PAID, AS THEtEIr SET F uum
SAID OOVIIQwDTTS, CtONDMO NS, ARID RESTRICTIONS PROVIDE THAT A VIOLA11W
THEREOF SHALL NOT DEFEAT NOR RENDER INVALID THE LIEN OF ANY MJR S43E OR, DEED
OF TRUST NW,DE IN GOOD FAITH ARID FOR VALUE.
18. DEED OF TRUST TO SECURE AN VEBTEDMESS.
AMOUNT: $57,650.00
TRUSIOR: TERESA L QUICK, A Sr GLS WCx�,N
TRUSTEE: DSL SERVICE COMARNY, A CALIFORNIA CORPORATICOU
BENEFICIARY: DOXMEY S & L, A CALIFORNIA CSRPORATICUI
DATED: AUGUST 10, 1994
RECORDED: AUGUST 22, 1994 AS IlSS'IRU�NT NO. 94-515393, OF OFFICIAL
RECORDS
MEM M.: 216709-3 ALTA LOAN POLICY
PAM M. : 6
SC HE DME B
PART II
IN AMrrICN TO THE M=ERS SET F►O ZM IN FART I OF THIS SC==, THE TITLE M THE
ESTATE OR INTEREST IN THE LADED DESCRIBED C Z REFERRED 70 IN SC HE= A IS SU EC."T
TO THE FOL ZME NATTERS, IF ANY BE SKM, B73r THE COMPANY D03RFS THAT SUCH
NATTERS ARE SUBORDINME 70 THE LIEN Cat CHARM Or THE INSURED ICR GAGE UPON ESTATE
C R INTEREST:
NOM
allR M. 216709-3
PACE 1
ENDCR-�
ATl. EM TO POKY ND. M 183-493888
ISStkZ) BY
MMONS TIME INSURANCE CCMHW
THE CCUIPANY HEREBY INSURES AGAINST LC1SS VV14ICH SAID INSURED SHALL SUSTAIN BY
RF:M1 OF ANY OF THE FC=Wn G MATTERS:
1. ANY INCCRRECINESS IN THE ASSURANCE viHr H THE CCMPANY HEREBY GIVES:
(A) THAT THERE ARE NO OD<III MM, CONDITIONS, OR RESTRICTIMS []L`MM
TAMCH THE LIEN OF THE MMMSE REFERRED TO IN SCHEDULE A CAN BE
C UIT OFF, SMORDIN=, Cat MEMSE IMPAMM;
(B) THNT THERE ARE ND PRESENT VIOIATICgSS CST SAID LAND OF ANY
04MRMABIE CS7MMMS, C OMITIMS AND RESIRIMMS.
(C) =, EXCEPT AS SHC FVV IN SCHEDULE. B, THERE ARE NO ENCPDACT4Eb= OF
BUILDINGS, STRCIC'I[k2ES, CR DTRMla= IAC'M= CN SAID LAND CNIU
AA7C)MM LANDS, NOR ANY ENC ROM DENS UXZTE D CN ADJ0nMr., LANDS.
2. (A) ANY FUIURE VIOLATIONS CN SAID LAND OF ANY CJMN,NTS, CONDMCM,
OR RESTRICTIONS OCCURRING PRIOR TO A=SITICN OF TITLE TO SAID
PSMTE OR INTERFS'T BY THE INSURED, PROVIDED SUCH VIOLATIC NS RESULT
IN LOSS OR IMPAIRMENT OF THE LIEN OF THE M MACE REM= TO IN
SCHEDULE A, OR RESULT IN LOSS OR IMPAIRMENT OF ME TITLE TO SAID
FZMTE OR lffnT ST IF THE INSMED SHALL A02UIPE SUCH TITLE IN
SATISFACTION OF 7M INDEBTEI�...SS SECURED BY SUCH MORTGWE;
(B) LWARKEMBIlM OF THE TIME M SAID ESTATE OR INM EST BY REAM
OF ANY VIOLATIMS ON SAID LAND, 00WRRING PRIOR TO ACQUISITION OF
TITLE M SAID ESTATE OR INTEREST BY TM INSURED, OF ANY C3NaZ NTS,
COIDTTICNS, OR RE=CTICNS.
(100 &MOR.SEMU OWTINUED)
PAGES 1 - 100
CNMEt ICU. 216709-3
PACE 2
100 END (Cogir um)
3. DAMAGE TO EXISTING DUMVEMENTS, Il=IM LA M, S RUB= OR TRE.�S
(A) VMCH ARE ifJa= OR ENCROACH UPCtl THAT PaMCN OF TBE L 4D
SUBJECT 70 ANY EF.SII= IN SCI = B, WHICH DAK%M RESULTS FROM
THE EXERCISE OF THE RIOT TO USE ClR FMN= SUCH EASEN= FM THE
PURPOSE FCR TAIICH THE SAME VAS Q3AN ED OR RE�D;
(B) RESULTING FROM THE EXERCISE OF ANY RIOT TO USE THE SURFACE OF
SAID LAND FOR THE EXTRAC'TIOtl OR DEVEMPNENr OF THE NMMALS
EXCEPTED FROM THE DESCRIPTION OF SAID LAND C R SHOW AS A
RESERVATION IN SCHEDULE B.
4. ANY FINAL COURT ORDER OR J UDGE= REQUIRING REMOVAL FROM ANY LAND
ADIOINItU SAID LAND OF ANY EZ93MGMU S%CT IN SCHEDULE B.
M=70Z IN THIS INDCRSE,= ANY OR ALL THE WORDS "COVENANTS, CCNDrTIONS OR
RESTRICTIONS" APPEAR THEY SHALL NOT BE DE= TO REFER TO OR INCLUDE THE TERMS
Wv'ENANIS AND CJC NDITICNS QUTI'A= IN ANY LEASE REFERRED TO SC HE= A.
ZH3 TCrI'AL LIABILITY OF THE O3 TANY `U= SAID POLICY AND ANY 7=IN
SEINLL NOT EXCEED, IN THE AGGRBGAZ'E, THE FACE AMCWT OF SAID POLICY AMID SAID
POLICY AND OASIS WHICH THE COMPANY IS CELIGATED Lt= THE CXZZD ICtZ AND
STIPULATIONS THEREOF TO PAY.
THIS EM 3NT IS M= A PART OF SAID POLICY AND IS SUETECT TO THE SCHEDULES,
030=CNS AND STIPULATICNS nEREIN, EXCEPT AS 14DDIFIED BY THE PROVISIONS H=F.
NATIC S TITLE INSURANCE CIMEANY
nt a-1Gh��.
OFFICER
•ter.-.'
PACE 2 - 100 ENDORS04Wr
V azmz ND. 216709-3
EBIDCRSIIMTr
AT=FD 7O POLICY NO. M 183-493888
ISSUED BY
NIMO S Tl= INSURANCE QMPANY
THE a'MPANY ASSURES THE INS[kZE'D THAT AT THE DATE OF THIS POLICY THE DIMEZICNS OF
WE EXTMIOR BOU=W OF OBIE LAND REF ERRED 70 IN SCSI ME A OF THIS POLICY, WHICH
IS ALSO THE EXTERIOR BOUMARY OF THE PRA7Et.T, ARE OORRECMY SHC XI V (XI THAT HAP
SH---VN CN SLfM= A OF SAID POLICY, IN THE OFFICE OF THE CC(IIM RBCORDER OF SAID
COUNTY.
THE C04P= FWrrU ` ASSURES THE INSURED THAT ZIE ESTATE IN SAID IM REFERRED TO
IN SCHEDULE A nICU= A RFSII&NTIM DWEIlMU UNIT, WrBUN =- PFta=
B02MARIES, AS DESCRIWD IN SG=Z A, IN THE OFFICE OF THE CITY REX FUM OF
OR.*ICE OOLAVTY, ABED MYRN PS 409 UrICA AVII�W. 09, CITY C F rlN3TW EEAaI,
C OCNTY OF CRAMS£, STAM OF CNLXFCRNIA.
THE =ANY HEREBY INSURES THE IlVS= AGk= LOSS MUCH SAID INSURE] SHALL
S[I7= IN `THE EV= THAT THE ASSURANCE =IN SHALL PROVE 70 BE INCORRECT.
TIC TOTAL LIABILITY OF THE 024PANY UNDER SAID POLICY AMID ANY INDORSEMEN 5 THEREIN
Mi Li. NOT EX=, IN THE A03ZE AM, THE FACE AM13i]MTT OF SAID POLICY AMID CASTS
MACH THE aMPANY IS OBLIGATED U= THE C CNDITICtZ AND STIPULATIONS TI=F 70
Wt.
THIS E DORSEMU IS MADE A PART OF SAID POLICY AMID IS SU137E= TO THE SCHEDULES,
CaIDITIONS AMID STIPULATIONS 7MEIN COMINED.
NATICNS Tl= INSURANCE MANY
BY
VAI -CFFTCEIZ
3.16.2
amz NO. 216709-3
ENDMISEMENr
ATMalED TO MC aCY ND. M 183-493888
ISSUED BY
NATICTIS TITLE I NSLIU XE QCMP11NY
THE INSURANCE AFFORDED BY THIS ENDORSEMU IS ONLY EFFECTIVE IF THE I AM IS USED
OR IS TO BE USED PRBARILY FOR RESIDENTIAL PURPOSES.
TIIr C a4PANY INSURES THE INSURED AGAINST IASS OR I]AMAGE SUSTAINED BY REASON OF
LAr3C OF PRIORITY OF THE LIEN OF THE INSURED WRTGAGE OVER:
(a) ANY ENVIRONMENM PRMEC*TICN LIEN MUCH, AT DATE OF POLICY IS RECORDED IN
TBME REC CRDS ESTABLISHED UNDER STATE SMTUTES AT DME OF POMMY FOR THE
PURPOSE OF DTARTING CMlSTRUC= WTICE OF MATTERS RELATING TO REAL
PROPERTY TO PURCIASERS FOR VATIIE AMID WIU]OUT M34L=, OR FILED IN THE
REOMM OF THE CLERK OF THE UNITED STATES DISTRICT CST IN MUCH THE LADED
IS LOCATED, EXCEPT AS SET FORTH IN SCHEDULE ULE B; Cat
(b) ANY NNEOZE= PRO►ECTIC N LIIIV PROVIDED EM BY ANY STATE STATUTE IN
EFFECT AT DATE OF POLICY, EXCEPT RMIlUMTIAL PRMECTION LIENS PROVIDED RR
BY THE FOLLO6 IM STATE STATUTES:
NONE
THIS EIvZ3 MSEMENT IS FADE A PART OF THE POLICY ARID IS SLWEC'T TO ALL OF THE TERMS
AND PROVISIONS THEREOF ARH? ANY PRICIR ENDO SEV= IMP=. EXCEPT 70 THE EXIErT!'
EXIMMY STATED, IT NEITHER MODIFIES ANY OF THE ERA AND PRO1TISIMIS OF THE
POLICY OR ANY PRIOR ElMORSDMTS, MR DOES IT EXTEND THE EFFECTIVE DATE OF THE
POLICY Cat ANY PRICK E10ORSDOOES, NOR DOES IT INCREASE THE FACE AMU TT TH=F.
NATIONS TITLE INSURANCE C04111 NY
BY:
8.1 E ECWMD� (ALTA,)
110.9 INDORSIIME17T (CLTA)
. ,7 CONDOMINIUM PLAN 61
+ a P•• TM1IT AIRSPACE D MEYS OY PLA4: SCALE: 1- = 36'
BUILDING 'A'
:FIDDLE LEVEL
UNITS I THRU 11eT
i
_ ,�.L LUWC
t L' l
asL Le #16 9-D
p � i
wt
CD o
Ad
«_ i 8 flit•
03 .1
M.~ Y• � 1'S � y� '
aluo�xa.cuctnt) 7-D
ruv M. A
r u a r..�_
O C c w
o t v o NOTES'
ace
"=
1. * IVDICATES CO?LMON BUILDING CONTROL POINT.
2. SEE SHEET 6 FOR BOUNDARY PLAT.
3. SEE SHEEN 7 FOR DUILLING LOCATION PLAN.
{ 4. SEE SHEETS 8 THRU 19 FOR UNIT AIRSPACE DI'RENSION PUNS. °
S. SEE SHEETS 20 THRU 23 FOR SCHEDULES OF TYPICAL UNIT VERTICAL SECTIONS.
S. SEE SHEETS 2I THRU C7 FOR :TPICAL L-4IT VEYTICAL SECTIONS.
` !. SEE SHEET 25 FOR OPEN PARKING LOCATION.PLAN.
CONDITIONS AND STIPULATIONS
(Continued from inside tiont cover)
WheneverTeg jested by the Company.the insured,at the Com. W to pay or otherwise settle with other parties for or in Section 2(a)of these Conditions and Stipulations shall not
pariy's expense.sha'I give the Company all reasonable aid(i) in the name of an insured claimant any claim insured against reduce pro Santo the amount of insurance afforded under this
in any action or proceeding, securing evidence, obtaining under this policy,together with any costs.attorneys'fees and policy except to the went that the payments reduce the amount
witnesses.presecutirig or defending the action or proceeding, expenses incrtrtedby the insured claimaritwhich were authoriz- of the indebtedness secured by the insured mortgage.
er effectmp srttfemenr.and(n)In any other lawful act which ed by the Company up to the time of payment and which the (b) Payment in part by any person of the primp-pal of the
In the opinion of the Company may be necessary or desirable Company is obligated to pay:or indebtedness,or any other obligation secured by the insured
to establish tt•e fitte to the estate or Interest or the lien of the (ii) to pay or otherwise sett'e with the insured claimant mortgage,or any voluntary partial satis%cton or release of the
insured mortgage,as insured.It the Company,is prejudiced the loss or damage provided for under ttis policy.together with insured mortgage,to the extent of the payment,satisfaction
by the failure pt the insured to furnish the required coopera- any costs,attomeys fees and expenses ncurred lrf the insured or release,Shwa reduce the amourit of insurance pro tanto.The
lion,the Coml arty's obligations to the insured under the policy claimant which were authorized by the Company up to the time amount of insurance may thereafter be increased by accruing
shat terminate,including any liability or obligation to defend, of payment and which the Company is obligated to pay. Interest and advances made to protect the hen of the insured
prosecute,or continue dry litigation,with regard to the mat- Upon the exercise by the Compsry of either of the options mortgage and secured thereby,with interest thereon,provided
ter or mailers requiring such cooperation. prov,0ed for in paragraphs b(i)or(q,the Company's obligations in no event shalt the amount of insurance be grease,Shari the
to the inswed under this policy br the claimed loss ordamage, amour.[of insurance stared In Schedule A.
5 PROOF OF LASS OR DAMAGE. other than the payments required to be made,shall terminate (c) Payment in fun by any person or the voluntary salisfac•
In addition to and after the notices required under Section Including any liability or obligation to defend, prosecute or (ion or release of the insured mortgage shah ternunale all kab:11ty
3 of Mese Conditions and Stuputations have been provided the continue any htigatmn. of the Company except as provided in Section 2(a)of these
ComMeinsuredcaimantshoof of albefurnis or hed otheCompanywihied and swom 10 n 7. DETERMINATION AND EXTENT OFUAMUTY Conditons and Stipu'ations.
90 days after tteinsured claimant shall ascertain Ire tam gMng This policy is a contract of indemnity a.)ainstactualmonetary 10. UABIUTYNONCUMULKTWE.
rise to the loss or damage.The proof of loss or damage shall toss or damage sustained or incurred sir the insured claimant If the insured acquires title to the estate or irrM in satisfac-
describe the defect in,or lien or encumbrance on the title,or who has suffered loss or damage by reason of matters insured ton of the indebtedness secured by the insured mortgage,or
other matter insured against by this policy which constitutes against by this polity and only to the ex-ent herein described. any part thereof,it is expressly understood that the amount
the basis of hiss or damage and shaft state,to the extent (a) the liability of the Company under this policy shall not of insurance under this policy shall be reduced by any amount
possible,the basis of calculating the amount of the loss or exceed the least of: the Company may pay under any policy insuring a mortgage
damage,if the Company is prejudiced by the failure of the in- (il the amount of insurance stated in Schedule A.or, to wtuch exception is taken in Schedule 8 or to wfio-h the insured
sured claimant to provide the required proof of loss or damage, if applicable.the amount of insurance as defined in Section has agreed,assumed,or taken subject,or which is hereafter
the Company's obligations to the insured under the policy shall 2(c)of these Conditions and Stpulations: executed by an insured and which a a charge or lien on the
terminate,(nc'uding any liability or obligation to defend,pro- (ii) the amount of the unpaid pincipal indebtedness estate or interest described or refe•red to in Schedule A.and
secure,or coreinue any litigation,with regard to the matter or secured by the insured mortgage as limited or provided under the amount so paid shall bedeemed a payment underrm poky
mailers requir ng such proof of loss or damage. Section 8 of these Conditions and SUpn.lations or as reduced
In addition,the insured claimant may reasonably be required under Section 9 of these Conditions and Stipulations,at the 11. PAYMENT OF LASS.
to submit to eximina m under oath by any authorized represen- lirre the toss or damage insured agai-lisf by this policy occurs, (a) No payment shall be made without producing this
tative of the C:ompanyy and shaft produce for examination, together with interest thereon;or policy for endorsement of the payerent unless the policy has
inspection and copying,at such reasonaVe times and places (iii) the diference between the value of the insured estate been lost or destroyed,in which case proof of loss or destruc-
as may be des gnated by any authorized representative of the or interest as insured and the value of the insured estate or lion shall be furnished to the satisfaction of the Company
Company,al rtcDrds,books,ledgers,checks.correspondence interest subject to the defect, lien or encumbrance insured (b) When liability and the extent of loss or damage has
and memoranda,whether beanng a date before or alter Date against by this policy. been definitely fixed in accordance with these Conditions and
of Palicyr,which reasonably pertain to the loss or damage. (b) In the event the insured has a:quired the estate or Stiputations,the less or damage shall be Payable w,lrun30days
Further,d Mgtested by any authorized representative of the interest in the manner described in Section 2(a)of these thereal;er.
Company.the nsured claimant shall grant its permission,in Conditions and Stipulations or has conveyed the title.then the
writing,for arty authorized representative of the Company to liability of the Company shall conti rise as set forth in Section 12. SUBROGATION UPON PAYMENT OR SETTLEMENT.
examine,inspe1 add copy all records.books.ledgers,checks. 7(a)of these Conditions and Stipulations. (a) The Company's Right of Subrogation.Whenever the
correspondence and memoranda in the custody or control of (cl The Company will pay only Chose costs,attomeys fees Compact shall have settled and paid a claim under this policy.
a third party.w iich reasonably pertain to the loss or damage. and expenses incurred in accordance w th Section 4 of these all right of subrogation shall vest in the Company unaffected
All information deslgrated as confidential by the insured clai- Conditions and Stipulations. by any act of the insured claimant.
mant provided to the Company pursuant to this Section shall The Company shall be subrogated to and be ent0a to all
not be disclosed to others unless,in the reasonable judgment d. LIMITATION OF L1ABItJTY, rights and remedies which the insured claimarn would have had
of the Company.R is necessary in the adminisi mion of the (a) 11 the Company establishes the title,or removes the against any person or property in respect to the claim had this
claim.Failure of the Insured claimant to submit for examina- alleged defect,lien or encumbrance,or cures the lack of a right policy not been issued.If requested by the Company.the nsured
Lion under Doti,produce other reasonably requested information of access to or from the land,or cures the claim of unmarket- claimant span transfer to the Company all rights and remedies
or grant permission to secure reasonably necessary informs- ability of title,or otherwise establishes tle hen of the insured against any person or property necessary in order to perfect
Sion from third Larties as required in this paragraph,unless pro- mortgage,all as insured.in a reasonably diligent manner by this rigf t of subrogation.The insured claimant shall permit the
hibited by lax or governmental regulation,shall terminate any any method, Including litigation and the completion of any Compary to sue,compromise or setC in th e e name of the insured
habil.ty of the Company under this policy as to that claim. appeals therefrom,it shall have fully performed its obligations claimant and to use the name of the insured Claimant in dry trans,
with respect to that matter and Sul not be fiable for arty loss action or litigation involving these rights or rennedies.
B OPTIONS TO PAY OR UTHERWJSE SETTLE CLAIMS; or damage caused thereby. if a payment on account of a claim does not fullyy cover the
TERMINA1101i OF UABILftY. (b) In the event o1 any tthgation,incl4rig litigation by time toss o1 the insured claimant.the Company%swan be submgased
in case of a Cairn under this policy.the Company shall have Company or with the Company's consent,the Company shall to all rights and remedies of the insured claimant after the iwsured
the fonlowingg onions: have no liability for loss ordamage until there has been a final claimant shall have recovered its pnrhCipa1,interest,Vd Casts
(a) To Pay or Tender Payment of he Amount of Insurance determination by a court of competent jurisdiction,and disposi- of collection.
or to purchase the Indebtedness. Lion of all appeals therefrom,adverse to the title or to the lien (b) The Insured's Rights and Umltations.
(i) to par or tender payment of the amount of insurance of the insured mortgage.as insured. Notwithstanding the loreprig.the Owner of the indebtedness
under this potcy together with any costs,attorneys'fees and (c) The Company shall not be Gable for loss or damage secured by the insured mortgage,provided the priority of the
expenses incur.ed by the insured claimant,which were author- to any insured for liabd:ty voluntarily assumed by the insured lien of the insured mortgage of Ins enforceability is not affected,
[zed by the Company,up to the time of payment or tender of in settling any claim or suit without the prior written consent may release or SubsVite the personal biabdity of any debtor
payment and m tact[the Company is obligated to pay;of of the company. or 4uarantor,or extend or otherwise moldy the terms of pay-
(11) to purchase the indebtedness secured by the insured (9) The Company shag not be liable for: ment.or release a portion of the estate or interest from the
mortgage br tkr amount owing thereon together with any costs. (i) any indebtedness created subsequent to Date of lien of the insured mortgage.or release any collateral security
attorneys lees and expenses Incurred by the insured claimant Policy except br advances made to protect the lien of the in. for the indebtedness.
which were authorized by the Company up to the time of pur- sured mortgage and secured thereby and reasonable amounts When the permitted acts of the insured claimant occur and
chase and which the Company is obligated to pay. expended to prevent deterioration of improvements:or the insured has knowledge of any claim oftrdeor interest adverse
II the Company offers to purchase the indebtedness as herein (ii) construction ban advances made subsequent to to the title to the estate or interest or the priority or ensorceabdivy
provided,the comer of the indebtedness shall transfer,assign. Date of Policy,except construction ban acw mes made subse- of the hen of the insured mortgage,as insured,the Company
and convey the indebtedness and the insured mortgage, quent to Date of Policy for the purpose of financing in whole Shall be required to pay only hat part of any losses insured
to"tier with ary collateral security,to the Compar uw pay- or In part the construction of an impmerr ent to the land which against by this policy which shalt exceed the amount,it any.
ment therefor. at Dale of Policy were secured by the insured mortgage and bstto the Company by reason of the impairment by the nsured
Upon the exercise by he Company of either of the options which the insured was and continued tc be obligated to ad- claimant of the Company's right of subrogation.
provided for in paragraphs a(i)or(ii),all liability and obliga- vance at and after Date of Policy. (c) The Compamr'a Rights Against Hon-Insured Obligors.
tions to the insured urder this policy,other than to make the The Company's right of subrogation against non-insured
payment requireJl in those paragraphs,shal ternW..e.including tL REDUCTION OF INSURANCE: cbligors shall exist and shalt include.without limitation,the
any liability or obligation to defend,prosecute,or continue any REDUCTION OR TERMINATION OF UABIUTY. rights of the insured to indemnities,guaranties,other policies
litigation,and t e polity shall be surrendered to the Company (a) All payments under this policy.except payments made of insurance or bonds.notwithstanding any terns or conditions
for cancellation for costs.attorneys'lees and expenses,shall reduce the amount contained in those instruments which provide for subrogation
(t) To Pay or Otherwise Settle With Parties Other than the of the insurance pro tanto.However,any payments made prior r ghts by reason of this policy_The Company's right of sub-
Insured or With the Insured Claimant. to the acquisition of tine to the estate or Interest as provided rogation shaft not be avoided by acquisition of he insured
(continued on back cover)
1720
CQINDITIONS AND STIPULATIONS
(Continued from inside back cover)
mortgage by an obligor(except an obligor described in Section the Rules in effect on the date the demand for arbitration is made a covered hereby or by any action asserting such claim,sha;s'-be
1(a)(ii)of these Conditions and Stipulations)who acquires the or, at the option of the insured, the Rules in effect at Date of restricted to this policy.
insured mortgage as a result of an indemnity,guarantee,other Policy shall be binding upon the parties.The award may include (c) No amendment of or endorsement to this policy can
policy of insurance,or bond and the obligor will not be an insured attorneys'fees only if the laws of the state in which the land is be made except by a writing endorsed hereon or attached hereto
under this policy, notwithstanding Section 1(a)(i) of these located permit a court to award attorneys'fees to a prevailing signed by either the President,a Vice President,the Secretary,
Conditions and Stipulations. party.Judgment upon the award rendered by the Arbitrator(s) an Assistant Secretary,or validating officer or authorized signatory
may be entered in any court having jurisdiction thereof. of the Company.
13. ARBITRATION. The law of the situs of the land shall apply to an arbitration
Unless prohibited by applicable law, either the Company under the Title Insurance Arbitration Rules. 15. SEVERABILITY.
or the insured may demand arbitration pursuant to the Title A copy of the Rules may be obtained from the Company upon In the event any provision of this policy is held invalid or unen-
Insurance Arbitration Rules of the American Arbitration Asso- request. forceable under applicable law,the policy shall be deemed not
ciation.Arbitrable matters may include,but are not limited to, to include that provision and all other provisions shall remain
any controversy or claim between the Company and the insured 14. LIABILITY LIMITED TO THIS POLICY; in full force and effect.
arising out of or relating to this policy,any service of the Com- POLICY ENTIRE CONTRACT.
pany in connection with its issuance or the breach of a policy (a) This policy together with all endorsements, if any, 16. NOTICES,WHERE SENT.
provision or other obligation. All arbitrable matters when the attached hereto by the Company is the entire policy and con- All notices,required to be given the Company and any state-
Amount of Insurance is$1,000,000 or less shall be arbitrated tract between the insured and the Company.In interpreting any ment in writing required to be furnished the Company shall include
at the option of either the Company or the insured.All arbitrable provision of this policy,this policy shall be construed as a whole. the number of this policy and shall be addressed to the Com-
matters when the Amount of Insurance is in excess of$1,000,000 (b) Any claim of loss or damage, whether or not based pany at 6800 College Blvd.,Suite 700,Overland Park,Kansas
shall be arbitrated only when agreed to by both the Company on negligence, and which arises out of the status of the lien 66211.
and the insured.Arbitration pursuant to this policy and under of the insured mortgage or of the title to the estate or interest
Policy of Title Insurance
Issued By
Nations Title Insurance Company
6800 College Blvd. /Suite 700/Overland Park, Kansas 66211
913-491-5585
1720
ALTA Lcan Po1-cy ( N.
Form 1
Policy of Title Insurance
Issued By M 183-
Nations Title Insurance Company
SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE
B ANDTHE CONDITIONSAND STIPULATIONS,NATIONSTITLE INSURANCE COMPANY,a Kansas corporation,herein called
the Company,insures,as of Date of Policy shown in Schedule A,against loss ordamage,not exceeding the Amount of Insurance
stated in Schedule A,sustained or incurred by the insured by reason of:
1. Title to the estate or interest described in Schedule A being vested other than as stated therein;
2. Any defect in or lien or encumbrance on the title;
3. Unmarketability of the title;
4. Lack of a right of access to and from the land;
5. The invalidity or unenforceability of the lien of the insured mortgage upon the title;
6. The priority of any lien or encumbrance over the lien of the insured mortgage;
7. Lack of priority of the lien of the insured mortgage over ary statutory lien for services, labor or material:
(a) arising from an improvement or work related to the land which is contracted for or commenced prior to Date
of Policy;or
(b) arising from an improvement or work related to the land which is contracted for or commenced subsequent to
Date of Policy and which is financed in whole or in part by proceeds of the indebtedness secured by the insured
mortgage which at Date of Policy the insured has advanced or is obligated to advance;
Ek Any assessments for street improvements under construction or completed at Date of Policy which now have gained
or hereafter may gain priority over the insured mortgage;or
9. The invalidity or unenforceability of any assignment of the insured mortgage,provided the assignment is shown in
Schedule A,or the failure of the assignment shown in Schedule A to vest title to the insured mortgage in the named
insured assignee free and clear of all liens.
The Company will also pay the costs,attorneys'fees and expenses incurred in defense of the title or the lien of the insured
mortgage, as insured, but only to the extent provided in the Conditions and Stipulations.
Nations Title Insurance Company
By:
L-,-U4
President
Countersigned: Attest: !
`By !� Secretary
rn
Authodzed Officer or A ent
1rr')A
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and statutory lien for services,labor or material or the extent insurance is afforded
the Company will not pay loss or damage,costs,attorneys'fees or expenses which herein as to assessments for street improvements under construction or com-
arise by reason of: pleted at Date of Policy); or
1. (a) Any law, ordinance or governmental regulation(including but not limited to (e) resulting in loss or damage which would not have been sustained if the in-
building and zoning laws,ordinances,or regulations)restricting,regulating, sured claimant had paid value for the insured mortgage.
prohibiting or relating to(i)the occupancy, use, or enjoyment of the land; 4. Unenforceability of the lien of the insured mortgage because of the inability or
(ii)the character,dimensions or location of any improvement now or hereafter failure of the insured at Date of Policy,or the inability or failure of any subsequent
erected on the land;(jii)a separation in ownership or a change in the dimen- owner of the indebtedness, to comply with the applicable doing business laws
sions or area of the land or any parcel of which the land is or was a part; of the state in which the land is situated.
or(iv)environmental protection,or the effect of any violation of these laws, 5. Invalidity or unenforceability of the lien of the insured mortgage,or claim thereof,
ordinances or governmental regulations, except to the extent that a notice which arises out of the transaction evidenced by the insured mortgage and is
of the enforcement thereof or a notice of a defect,lien or encumbrance resulting based upon usury or any consumer credit protection or truth in lending law.
from a violation or alleged violation affecting the land has been recorded in 6. Any statutory lien for services,labor or materials(or the claim of priority of any
the public records at Date of Policy. statutory lien for services, labor or materials over the lien of the insured mort-
(b) Any governmental police power not excluded by(a)above,except to the extent gage)arising from an improvement or work related to the land which is contracted
that a notice of the exercise thereof or a notice of a defect, lien or encum- for and commenced subsequent to Date of Policy and is not financed in whole
brance resulting from a violation or alleged violation affecting the land has or in part by proceeds of the indebtedness secured by the insured mortgage which
been recorded in the public records at Date of Policy. at Date of Policy the insured has advanced or is obligated to advance.
2. Rights of eminent domain unless notice of the exercise thereof has been recorded 7. Any claim,which arises out of the transaction creating the interest of the mort-
in the public records at Date of Policy,but not excluding from coverage any taking gagee insured by this policy, by reason of the operation of federal bankruptcy,
which has occurred prior to Date of Policy which would be binding on the rights state insolvency, or similar creditors' rights laws, that is based on.-
of a purchaser for value without knowledge. (a) the transaction creating the interest of the insured mortgagee being deemed
3. Defects, liens, encumbrances, adverse claims or other matters: a fraudulent conveyance or fraudulent transfer; or
(a) created, suffered, assumed or agreed to by the insured claimant; (b) the subordination of the interest of the insured mortgagee as a result of the
(b) not known to the Company,not recorded in the public records at Date of Policy, application of the doctrine of equitable subordination; or
but known to the insured claimant and not disclosed in writing to the Com- (c) the transaction creating the interest of the insured mortgagee being deemed
pany by the insured claimant prior to the date the insured claimant became a preferential transfer except where the preferential transfer results from the
an insured under this policy; failure:
(c) resulting in no loss or damage to the insured claimant; (i) to timely record the instrument of transfer; or
(d) attaching or created subsequent to Date of Policy(except to the extent that (ii) of such recordation to impart notice to a purchaser for value or a judge-
this policy insures the priority of the lien of the insured mortgage over any ment or lien creditor.
CONDITIONS AND STIPULATIONS
1. DEFINITION OF TERMS. contractual condition requiring the delivery of marketable title. or interest or the lien of the insured mortgage,as insured,and
The following terms when used in this policy mean: which might cause loss or damage for which the Company may
( CONTINUATION OF INSURANCE.
"insured"
"insured the insured named in Schedule A.The term 2. (a) After Acquisition of Title.The coverage of this policy be liable by virtue of this policy,or(iiiiftitle to the estate or
d"also includes shall continue in force as of Date of Policy in favor of(i)an insured interest or the lien of the insured mortgage,as insured,is re-
(i) the owner of the indebtedness secured by the insured who acquires all or any part of the estate or interest in the land jected as unmarketable.If prompt notice shall not be given to
mortgage and each successor in ownership r the indebtedness by foreclosure,trustee's sale,conveyance in lieu of foreclosure, the Company,then as to the insured all liability of the Com-
except asuccessor who is an obligor under the provisions of or other legal manner which discharges the lien of the insured pany shall terminate with regard to the matter or matters for
Section 12(c)of these Conditions and Stipulations(reserving, mortgage;(ii)a transferee of the estate or interest so acquired which prompt notice is required;provided,however,that failure
however,all rights and defenses as to any successor that the from an insured corporation, provided the transferee is the to notify the Company shall in no case prejudice the rights of
unl ss the succComan essor a quired the indebtedness as a purchaser Parent or wholly-owned subsidiary of the insured corporation, any
bed under failure an policy onlyss the to the extent p of shall
be
pr
and their corporate successors by operation of law and not by y Yprejudice.
for value without knowledge of the asserted defect, lien, purchase,subject to any rights or defenses the Company may 4. DEFENSE AND PROSECUTION OF ACTIONS;
encumbrance,adverse claim or other matter insured against have against any predecessor insureds;and(iii)any govern- DUTY OF INSURED CLAIMANT TO COOPERATE.
by this policy as affecting title to the estate or interest in the land); mental agency or governmental instrumentality which acquires
(ii) any governmental agency or governmental instru-
mentality which is an insurer or guarantor under an insurance all or any part of the estate or interest pursuant to a contract the options contained in Section 6 of these Conditions and
contract or guaranty insuring or guaranteeing the indebtedness of insurance or guaranty insuring or guaranteeing the in- Stipulations, the Company, at its own cost and without
secured by the insured mortgage,or any part thereof,whether debtedness secured by the insured mortgage. unreasonable delay,shall provide for the defense of an insured
named as an insured herein or not; (b) After Conveyance of Title.The coverage of this policy in litigation in which any third party asserts a claim adverse
(iii) the parties designated in Section 2(a) of these shall continue in force as of Date of Policy in favor of an in- to the title or interest as insured,but only as to those stated
Conditions and Stipulations. sured only so long as the insured retains an estate or interest causes of action alleging a defect,lien or encumbrance or other
(b) "insured claimant": an insured claiming loss or in the land,or holds an indebtedness secured by a purchase matter insured against by this policy.The Company shall have
damage. money mortgage given by a purchaser from the insured, or the right to select counsel of its choice(subject to the right
(c) "knowledge" or "known": actual knowledge, not only so long as the insured shall have liability by reason of of the insured to object for reasonable cause)to represent the
constructive knowledge or notice which may be imputed to an covenants of warranty made by the insured in any transfer or insured as to those stated causes of action and shall not be
insured by reason of the public records as defined in this policy conveyance of the estate or interest.This policy shall not con- liable for and will not pay the fees of any other counsel.The
or any other records which impart constructive notice of matters tinue in force in favor of any purchaser from the insured of either Company will not pay any fees,costs or expenses incurred by
affecting the land. (i) an estate or interest in the land, or(ii) an indebtedness the insured in the defense of those causes of action which allege
(d) "land":the land described or referred to in Schedule secured by a purchase money mortgage given to the insured. matters not insured against by this policy.
(A),and improvements affixed thereto which by law constitute (c) Amount of Insurance:The amount of insurance after (b) The Company shall have the right,at its own cost,to
real property.The term"land"does not include any property the acquisition or after the conveyance shall in neither event institute and prosecute any action or proceeding or to do any
beyond the lines of the area described or referred to in Schedule exceed the least of: other act which in its opinion may be necessary or desirable
(A),nor any right,title,interest,estate or easement in abutting (i) The amount of insurance stated in Schedule A; to establish the title to the estate or interest or the lien of the
(ii) The amount of the principal of the indebtedness insured mortgage,as insured,or to prevent or reduce loss or
streets,roads,avenues,alleys,lanes,ways or waterways,but
nothing herein shall modify or limit the extent to which a right secured by the insured mortgage as of Date of Policy,interest damage to the insured.The Company may take any appropriate
of access to and from the land is insured by this policy thereon,expenses of foreclosure,amounts advanced pursuant action under the terms of this policy,whether or not it shall
(e) "mortgage":mortgage,deed of trust,trust deed,or to the insured mortgage to assure compliance with laws or to be liable hereunder,and shall not thereby concede liability or
other security instrument. protect the lien of the insured mortgage prior to the time of waive any provision of this policy. If the Company shall exer-
(f) "public records": records established under state acquisition of the estate or interest in the land and secured cise its rights under this paragraph, it shall do so diligently.
thereby and reasonable amounts expended to prevent deterio- (c) Whenever the Company shall have brou
statutes at Date of Policy for the purpose of imparting con- , . P Y ght'an action
structive notice of matters relating to real property to purchasers ration o, improvements, but reduced by the amount of all or interposed a defense as required or permitted by the provi-
forvalue and without knowledge.With respectto Section 1(a)(iv) Payments made;or sions of this policy,the Company may pursue any litigation to
of the Exclusions From Coverage, "public records"shall also (iii) The amount paid by any governmental agency or final determination by a court of competent jurisdiction and
include environmental protection liens filed in the records of governmental instrumentality,if the agency or instrumentality expressly reserves the right, in its sole discretion,to appeal
the clerk of the United States district court for the district in is the insured claimant,in the acquisition of the estate or interest from any adverse judgment or order
which the land is located. in satisfaction of its insurance contract or guaranty. (d) In all cases where this policy permits or requires the
(g) "u n marketability of the title":an alleged or apparent 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. Company to prosecute or provide for the defense of any ac-
matter affecting the title to the land,not excluded or excepted The insured shall notify the Company promptly in writing(i) tion or proceeding,the insured shall secure to the Company
from coverage,which would entitle a purchaser of the estate in case of any litigation as set forth in Section 4(a)below,(ii) the right to so prosecute or provide defense in the action or
or interest described in Schedule A or the insured mortgage in case knowledge shall come to an insured hereunder of any prose at 9s andall appeals
thepname therein,the and
per it the this an
to be released from the obligation to purchase by virtue of a -'aim of title or interest which is adverse to the title to the estate option, purpose.
1720A 'r _ (continued on inside back cover)
ALTA LOAN POLICY
SC-IE= A
7t7TAL FEE FOR TITLE, E}wTION
AM. TITLE EZ RANCE $75.00
AM= OF INSUR.ANCE: $25,000.00 IAAN NO. QUICK
ORDER NO. 216709-3
POLICY NO. M 183-493888
DATE OF POLICY: AUGUST 22, 1994
AT: 2:41 P.M.
1. NAME OF INSURED:
THE RED=DA4ENTT ACII3CY OF THE CITY OF HLIDTTINC =1 BEACH, A PUBLIC BODY
CORPORATE AND POLITIC
2. THE ESTAm OR INTEREST IN THE LADED DESCRIBED IN SCHEDULE A AMID MUCH IS
COVERED BY THIS POLICY IS: A amDc 'nml,I AS DEF= IN SECTION 783 OF TI-E
CALIFORNIA CIVIL CODE, IN FEE.
3. THE ESTATE OR INTEREST REFERRED TO HEREIN, IS AT DATE OF POLICY VESTED IN:
7ERESA L. QUICK, A SETRE WOM
4. =- N10RZGAGE, HEREIN REFERRED TO AS THE INSURED MDRI=, AND ZI-E
ASSIG*aM THEREOF, IF ANY, ARE DESCRIBED AS FOLLdWS:
DEED OF TRUST 70 SECURE AN Il EB`IE3 �.
AM=: $25,000.00
TRUSIOR: T'ERESA L. QUICK
TRUSIEE: • THE CITY OF HUtTTINOMN REAM, A MUNICIPAL CORPORATICN
B=ICIARY: ME REDEVEl-OPME�TN T AMr-Y OF ME CITY OF 1-uvn2,lu=
BEACH, A PUBLIC BODY CORPORATE AND POLITIC
DATED: AUGUST 11, 1994
RECORDED: AU= 22, 1994 AS INSIRL�T NO. 94-515394, OF OFFICIAL
REQOFRDS
ORDER ICU.: 216709-3
PACE NO. . 2
SCHEDULE A
(CONTINUED)
5. THE LAMED REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLLORS:
THE LAND IS SITUATED IN THE
STATE OF CALSFU NIA
CIJUN Y OF ORANGE
PARCEL 1: UIUIT NO. 9, CONSISTIlJG OF CERTAIN AIRSPACE AND SURFACE EDITS, AS
SF:CV AMID DESCRIBED IN THE C ONDOMINIU 9 PLAN ("PLAN") FOR BRISAS DEL MAR LOCATED
CK LOT I OF TRACT 14757, AS SnOVIN 0M A SUBDIVISICN MAP RECORDED ON SEPTE BER 1,
1993, Il f BOOK 701, PACE'S 42 TRUTH 43, INCLus VE OF MISCELI NAPS, IN THE
OFFICE OF THE ORANGE COUNTY' RECORDER ("OFFICIAL R ") , 11HICH PLAN VVAS
RECORDED ON DER IS, 1993, AS INSTlaPSNN r NO. 93-0621742, OF OFFICIAL
RECORDS, CALIFORNIA.
PARCEL 2: AN UNDIVIDED ONE FORTY-FOURTH (1/44) FEE SIMPLE INTEREST AS A TENANT
ITS COMM IN AND TO NODULE B S'FB34+LV ON THE PLAN AID] DEFINED IN THE DECLARATION
REFERRED TO BE OR AS THE "COMMON AREA".
EXCEPT THEREFROM ALL OIL, GAS, MINERALS AND OTHER HYDROCARDONS, BELOa A DEPTH OF
5C0 FEET, WITI-ICNT THE RmArr OF SURFACE ENTRY, AS RESERVED IN DEEDS OF READ.
PARCEL, 3: OCCLUSIVE EASEMENTS FOR ACCESS, INGRESS, OGRESS, USE, SNOW ENT,
Wa ACTE, ENCROACHMENT, SUPPORT, MAINTENANCE, REPAIRS AMID FOR OTHER PURPOSES, ALL
AS MAY BE SHOQI IN THE PLAN, AND AS ARE D SCRIeED IN THE DECIARATIC117.
PARCEL 4: EICC I SIVE EASEMENTS APPURTENANT TO PARCELS NO. I. AMID N10. 2 DESCRIBED
AECNE FOR USE FOR PARKING PU RPC)SES DESCRIBED AS EXCLUSIVE USE AREAS IN THE
DEC3ARATICV, OVER POFMCNS OF LOT 1 OF TRACT 14757 S'EBM AND ASSICTZm IN THE
PLAN.
PARCEL 5: Al EXCLUSIVE EASEMERT APPURTENANT TO PARCELS NO. 1 ARID NO. 2 DESCRIBED
AEOVE, FOR USE FOR PATIO, BALCONY, AMID FIRE ESCAPE STAIRCASE PURPOSES DESCR=0
AS EXCLUSIVE USE AREAS IN THE DECLARATION AS APPLICABLE, OVER PORTICO OF LOT L
OF TRACT 14757 AS SHOW ASSIGNED AMID DESCRIBED IN THE PLAN.
CFIER NO.: 216709-3 Ind ALTA LCZN POLICY
PLC- NO. : 3
SCHEDULE B
PART I
THIS POLICY DOES NOT INSURE AGAmnsr LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY
COSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY RFA9CN OF:
A. GENERAL AND SPECIAL TAXES, A LIEN NOT YET PAYABLE, FOR THE FISCAL YEAR 1994-
1995.
B. THE LIEN OF SUPPLEMI N!AL TAXES, IF ANY, ASSESSED PURSUANT 71D CHAPTER 3.5
OCUUMTMEE CING WITH SECTION 75 OF THE CALIFORNIA REVENUE AND TAXATION CEDE:
1. THE EFFECT OF A CITY OIL AND GAS TEASE EXECUTED BY LCIUIS BENEKV ANZ
ELOISE B. BEIXZ& HIS WIFE AND BY OTHER PER!XVS AS TO OTHER LAND, AS
L 'SSOR.S, AND BY CJOLLNIDIA LEASING AND DEVELOPING COMPANY, A CXORPORATION, AS
LESSEE, RECORDED VU41MER 6, 1920 IN BOOK 16, PAGE 198 AMID RE-RECORDED
AUGUST 11, 1921 IN BOOK 25, PAGE 247 OF LEASES, BOTH OF LEASES, 70 TtMCH
RECORD REFERENCE IS MADE FOR FILL PARTICULARS.
2. AN EASEMENT FUZ PURPOSES HEREIN STATED, AND RIGM IN[CIDFNfAL THERETO? AS
PROVIDED IN A DOC MES TT
FOR: PIPE LINE'S
AFFECTS: ALONG THAT PORTION OF SAID LADED
RECORDED: IN BOOK 319 PACE 149 OF DEEDS.
3. COVENA10S, OOPIDITIC lNS AND RESTRICTIONS, (DELETING THEREFROM ANY RESTRICTICOES
BASED ON RACE, COLOR, OR CREED) , AS PROVIDED IN A DOCUMENT RED IN BOOK
319 PACE 149 OF DEEDS, OF OFFICIAL RECORDS.
SAID COVENANTS, CONDITIONS AND RESTRICTIONS PROVIDE THAT A VIOLATION THEREOF
SHALL 111C DEFEAT NOR RaZER INVALID TE 1124 OF ANY MORTGAGE OR DEED OF
TRUST MADE IN GOOD FAITH AND FOR VALUE.
4. AN FASII11TT FOR PURPOSES HEREIN STATED. AND RIGHTS 3101E101L THERETO AS
PROVIDED IN A DOCT MEENT
FOR: PIPE, POLE LINES
AFFECTS: P 10]G THAT PORTICO OF SAID LAND
RECORDED: IN BOOK 578 PAGE 269, OF OFFICIAL RECORDS.
S. AN FASE04ENTr FOR PURPOSES HEREIN STATED, AMID RIGHTS INCIDENTAL THERETO AS
PROVIDED IN A DOC1_N�I�TT
FCZ: PIPE LINE
AFFECTS: ALONG THAT PORTICO OF SAID LAND
RECORDED: IN BOOK 865, PAGE 15 OF OFFICIAL RECORDS.
6. AN E'ASIIMENTT FOR PURPOSES HEREIN STATED, AND RIGHTS I]NCIDE TTAL, TH P= AS
PROVIDED IN A DOCUM=EN
FOR: PIPE LIl�S
AFFECTS: ALONG THAT PORTICO O OF SAID LAND
RECORDED: IN BOOK 3577, PAGE 119, OF OFFICIAL RECORDS.
. ama rro.: 216709-3
PlCE M. : 4
7. AN FASEPgNT FOR PURPOSES FEREIN STATED, AMID RICIRUM YNCIDERIIAL THEREIN AS
PROVIDED IN A DOCUMMEENAr
FOR: PIPE LINE`S
AFFECTS: ALONG THAT PORTION OF SAID TAMED
RECORDED: IN BOOK 3660 PACE 257, OF OFFICIAL RECORDS.
S. AN FAS tflTI' AS SET FORTH IN AN INSTRUMENT RECORDED AS INSTRUMENT NO. 87-
440298, OFFICIAL RECORDS.
FOR: PUBLIC UTILITIES AND INCIDENTAL PURPOSES
AFFECTS: ALDNG THAT PORTION OF SAID LAND.
SAID DEE13 PR3nlES THAT NO BUBTUNG OR STTRlLXr-M JRE SWIL BE PLACED Cat
MAINTAINED aN SAID EASEMENT.
9. THE TERR0, PROVISIa iNS AMID CONDITIONS CONTAINED IN A DOCUMENT ENTITLE
"AFFORDABLE FLING RESTRICTION AMID ANT% =GiTIED BY AMID nZWE.W
BFACHFRONT LAKE STREET PROPERTIES AMID THE CITY OF FU TTINST N BEACH, RECURRED
SEPTENIIIIt 2, 19S7 AS INSTRUMENT NO. 87-SO0026 OF OFFICIAL RFC.
10. AN FAMRaI T AS SET F= IN AN =TU= RECORDED AS INSTRUMENT' NO. 87-
534842, OFFICIAL RECORDS.
FOR: PUBLIC UTILITIES AMID INCIDENTAL PURPOSES
AFFECTS: ALONG THAT PORTION OF SAID LAND.
11. AN EASEI1ENTT FOR PURPOSES HEREIN STATED, AMID RIGHTS I0natNTAL TREREI0 AS
PROVIDED IN A DOCi�TT
FOR: 14ATER WUMN
AFFECTS: ALONG TEAT PORTIa1 OF SAID LAMED
RECORDED: AS INSTRUMENT NO. 87-583411, OF OFFICIAL RECORDS.
12. THE TERMS, PROVISIONS AMID CONDITIONS CONTAINED IlV A DOCUMENT FNTT=TE
"DECLARATION OF RESTRICTIONS AND SUBDIVISION ITS", EXECUTED BY DELA'WARE
II, A CALIFOf= LIMITED PARTNERSHIP, REC03R= APR.IL 6, 1993 AS I SSTRUNMEN
NO. 93-0230267 OF OFFICIAL RECORDS.
12 . THE FACT THAT THE OWNERSHIP OF SAID LA'S DOES NOT INCLUDE R13RTS OF AC S
TO OR FROM THE STREET OR HIGDW ABUTTING SAID LAMED, SUCH RIGHTS FnVINS BEET?
RELINQUISHED BY THE MAP OF SAID TRACT.
AFFECTS: DEI.AWARE STREET, UTIC A AVENUE AMID CALIFORNIA STREET
14. AN IlQSIRLNCrN ENTITLED "02IDQ4D ILM PLAN" RECORDED SEPTIIMR2 15, 1993 AS
INSTRUMENT NO. 93-0621742 OF OFFICIAL RECORDS; REFEftEr10E BEING MADE TO THE
RECORD THEREOF FOR FULL, PARTICULARS.
• CRMZ NO.: 216709-3
PA' NO. : 5
15. THE MAT= OONTAINID IN A DOCZ = ENTITLED "DECIP,RATICN OF aWEM4T5,
OONDITIONS AND RESTRICTIONS", RECCRDEDD AS IlQSI1U= ND. 93-0625045, OF
OFFICIAL RECORDS, 'VMCi MCM ClIM THIIrS, PROVIDE EM CER= EASEMENTS,
LIENS AND SLBORDINATICN THEREOF, PRC 7ISICNS RELATING TO PARTITICN,
RESTRICTIONS ON THE SEVFRABTLITY OF QtK- = INTER ST, CL3VII WM,
CONDMCNS AND RESIRICITCNS AFFECTING SAID ESTATE OR INTEREST.
THE RIOT 70 LEVY CERTAIlV C ARCES OR ASSES�9,= AGAINST SAID LAND TnHIICH
SHALL BECOME A LIEN IF Wr PAID, AS TI-2ELN SET FaM.
SAID CL7VII=, C CMI"TICNS, AND RESTRICTIO[v'S PROVIDE THAT A VIOLATION
7 LSRDOF SHALL NOT DEFEAT NOR RENDER INVALID THE LIEN OF ANY � OR DEED
OF 7MET MALIE IN GOOD FAITH AMID FIOR VALUE.
SAID COVENANTS, CONDITIONS AND RESTRICTIONS WERE MODIFIED BY A DOCU=
RED AS nZIRL�Nr PA. 93-0680846, OF OFFICIAL REMRDS.
16. FASII= FOR INGRESS, EGRESS, PIPELINES, DRAI=, SANITARY SEERS, PUBLIC
LTl'II�ITTFS OR SLOPES AND INCIDENTAL, PL RPOSFS, AS DISCLOSED BY INS IJ[MTTS OF
RECORD, AFFFCIRr, ONLY Tim "00141T AREA".
17. THE Ng1TTIIZ.S C01 TTAINED IN A DOCUV T M7TLF.D "DDCLARATICN OF CUVEMM,
CONDITIONS AMID RESIIRICTTONS", RECORDED AS INSTRLI4EnTT NO. 93-0635859, OF
OFFICIAL R=DS, M41C-I AMUrG C THEER =r.S, PF01IDE FOR C=M EASE =S,
LIENS AND SUBORDINATION THE=F, PROV1ISIONS RELATING TO PARTTTICN,
RESTRICTIONS ON Tim SEVf32ABILITY OF C:VM= INTER ST, CX=INIS,
CONDITIONS AND RESTRICTIONS AFFECTING SAID FSTATE OR INTEREST.
THE RIGHT TO LEVY CER7= CAGES OR, ASSESSbZ TTS AGAINST' SAID LAND MUCH
SHALL BE= A LIEN IF NOT PAID, AS THEf2ELV SET F M.
SAID COVIISANTS, CONDITIONS, AND RESIRICTICZ PROVIDE THAT A VIOLATION
THEREOF SHALL NOT DEFEAT NOR RENDER INVALID THE LIEN OF ANY TERTW0E OR DEED
OF TFZ2ST MADE IN GOOD FAITH AND FOR VALUE.
18. DEED OF 7= TO SECURE AN INDEBTEDNESS.
.
AMOWT: $57,650.00
TRUSTOR: TERESA L QUICK, A SINME WAN
TRLTS=: DSL SERVICE OC %RW, A CALIFM IA C?ORPORATIC N
BENEFICIARY: D06r'NEY S & L, A C'ALIFCTWIA CDRPCRATICN
DATED: ACTT 10, 1994
RECORDED: AUGUST 22, 1994 AS INS7RUTT NO. 94-515393, OF OFFICIAL
RECORDS
r
CF= ND.: 216709-3 ALTA LOAN POLICY
EME NO. : 6
SCHEME B
PART II
IN ADDITION M THE Ng17Tgt.S SET FMH IN PART I OF THIS S==E, THE TIME TO THE
ESTATE CR INl£REST IN THE LAND DESCRIBED CR REFEFtEtID TO IN SCHEDULE A IS SUBJF,CT
TO THE FnLL MIM MIII7S, IF ANY BE %KM, BUT THE WTANY IlSSCktFS THAT SUCH
W=ERS ARE SUBCRDIlJA.TE 70 THE LIEN CR CHARCE CF THE INSURED VrMGAM UPON ESTATE
OR INTEREST:
NCNE
QZGkR M. 216709-3
PAGE I
ENDORSEMERr
AT0GM 70 PCK CY NO. M 183-493888
ISSUED BY
NATICNS TTIIE INSURANCE CCM@ANY
71-E CCt4PANY HEREBY INSURES AGAINST IASS XTUCH SAID INSURED SHALL SC S'= BY
RFASCN OF ANY OF THE FOLLOWING MATTERS:
1. ANY IN =ZESS IN THE AS.SURANM MUCH THE CWPANY HEREBY GIVES:
(A) THAT THERE ARE ND COVEMM, CONDITICHS, OR RESTRICT MS LNER
YMCH THE LIEN OF THE MMI= REFERRED 70 IN SCHE= A CAN BE
CUT OFF, SUBORDINATED, CR 01M;WISE IMPAIRED;
(B) THAT 7= ARE NO PRESENT VIOLATICNS CN SAID LAND OF ANY
ENF�Rr F OUVE PXM, =lDITICNS AND RESlRICTICNS.
(C) THAT, EXCEPT AS SFM4 IN SCfIF= B, THERE ARE NO OF
BUILDEIGS, SIRLJC )RES, OR IMPFt M1,0TTS IfXY= CN SAID LAND MM
ADJOINING LANDS, NOR ANY ET C-MNIS LOCATE) CN ADJOINING LANDS.
2. (A) ANY FUIURE VIOLATIONS CN SAID LAND OF ANY COVEIVTIS, CONDITIONS,
OR RESIRICTICNS C=FRM PRIOR 70 A=SITICN OF '17 TO SAID
ESTATE OR INTEREST BY THE INSURED,D, PROVIDED SUCH VIOLATIONS RESULT
IN LOSS OR IMPAIFTNT OF THE MIN OF ZHE =CAGE REFERRED TO IN
SCfEDC1LE A, OR RESULT IN LOSS OR INPAIR= OF THE TITLE TU SAID
ESTATE OR INTEREST IF THE INS= SHALL AM= SUCI3 TITLE IN
SATISFACTION OF IT E INDEBTECtZESS SECURED BY SUCH MORTGAGE;
(B) UNMA►RKETABILITY OF THE 111 70 SAID ESTATE OR INTEREST BY REASCU
OF ANY VIOLATIONS ON SAID LAND, OCC.LIRRim PRIOR TO A QISITION OF
TITLE TU SAID ESTXTE OR n=EST BY THE INS ED, OF ANY CCAIEMM,
=ITICNS, OR RFb'lRIMCNS.
(100 ENDOR.SE�= CONITNCIFD)
PACE 1 - 100 ENDORSEMENT
k..,jCFZEER NO. 216709-3
PAM 2
100 EMMSEMENT (Ot"N mxm)
3. D]A,%PM TO EXISTING IldRMOENM, INC IMING LAMNS, MUMBERY OR TREES
(A) MUCH ARE LOCAM OR ENCROACH UPON THAT PORTION OF THE LAND
SU&TECT TO ANY EASM+ NI' IN SCHEDULE B, MUCH MMM RESULTS FROM
7rM EXERCISE OF MM RIGU TO USE CR M2MInT SUCH FAM4E= F R THE
PURPOSE FOR MUCH IM- SAME NAS QWA= OR RFSERVED;
(B) RESULTING FRCM THE EXERCISE OF ANY RIGHT TU USE TM SURFACE OF
SAID LAND FOR THE EXTRACTION OR DEVELJOPN= OF THE YME RATS
EXCF.= FROM THE DESCRIPTION OF SAID LAND OR SRDVN AS A
RESERVATION IN SCHEME B.
4. ANY FILL C= ORDER OR JUDGEMERT RD73IRDU RIIIDVAL FROM ANY LAM
ADJOINING SAID LAND OF ANY ENCROlAC3ZM T S VqN IN S�iEfJ= B.
WMEVtR IN THIS INDOR ENT ANY OR ALL THE WCM "CTJMMWS, CONDITIONS OR
RFSTRICTIOMIS" APPEAR THEY SHAM NOT BE DEEMED M REFER TO CR INC= THE ZE M
CJOVIIrWM AND CONDITIONS ClOtTMINED IN ANY IFASE REFER M TO SCHEDULE A.
THE 7= LIABILITY OF M OCWMY UNDER SAID POLICY AND ANY IND RSEItEMS I=IN
SHALL NOT EXCEM, IN THE ATE, THE FACE RAP OF SAID POLICY AND SAID
POLICY AMID OOM VMCH THE =ANY IS OMIGATED UNDER THE COIDM= AMID
STIPULATIONS THERDOF TU PAY.
THIS EMIDORSE=- IS NODE A PART OF SAID POLICY AMID IS SU&TECT TO THE SC HE U=,
OQMDITIONS AMID STIPULATICtZ TIMEIN, EXCEPT AS 1MIFIED BY THE PROVISIONS HMMF,
MMCNS ZTIT£ INSU WE CCMPANY
BY;
CMCER
PAGE 2 - 100 EMMSEMENr
•. �,.� WER M. 216709-3
ENDORSEMENT
ATIAMD M PCX CY I D. M 283-493888
ISSUED BY
MMCI S TIME INSURANCE CC PANY
THE C7CMPANY ASSURES THE IIS5'i M TEAT AT THE DATE OF THIS POLICY THE DDENSIONS OF
TIES ExTMIOR B=IDARY OF THE LAM REF RRM TO IN SCfiE= A OF THIS POLICY, WHICH
IS ALSO THE EC=OR BOUNDARY OF THE PFmJFI:T, ARE CORRECILY EMIN ON THAT MAP
S10W CN SCHEDULE A OF SAID POLICY, IN THE OFFICE OF THE CXICMY RECPDER OF SAID
C1C7[II-T!'Y.
ME W4PANY FURTHER ASSURES THE INSURED THAT = ESTATE IN SAID L;LND REFERRED TO
It I M EI7Cn F A =EES A RFSIIM= DEL= LTITT, WITHIN THE PRAIECT
BOUNDARIES, AS DESCRIBED IN SCHEDULE A, IN THE OFFICE OF THE CXxMY RECORDER OF
OFWM allIIY, AND IQ=V AS 409 IIPICA AMENI ✓ #A9, COZY OF MMN= BEAM,
QxNIY OF GRAD, STATE CP MaFUUM.
TTE OCxMPANY HAY INSURES THE INSURED AGAI.N.SI' L46S WHICH SAID INSURED SHALL
SCSIAIN IN THE E,VET?r THAT THE ASSURPNCE MEIN SHALL PROVE TO BE INC CRP=.
WE TOM LIABILITY OF THE OC PANY U= SAID POLICY AND ANY 19DORSEME TI'S THEREIN
ST-ALL NOT Ex®, IN THE AGMB=, THE FACE AN3JWT OF SAID POLICY AMID OASIS
WHICH THE ClCMPMlY IS OBLIGATED UNOM THE CCND-TICKS AND STIPUTATICNS TFE RE)OF TO
PF1.
TICS ETIDORSEMMT IS MADE A PART OF SAID POLICY AND IS SUI3JECT TD THE SCI=MES,
OCNDITICNS AND STIPULATICxIS THEREIN C=AINID.
NATICrS TTIIE INSURANCE MvIANY
CMC R
116.2
NO. 216709-3
ENDORSEMENT
A=IED TO POLSC Y NO. M 183-493888
ISSUED BY
NAITON9 T= INSURANCE CCKPANY
ZI3E INSURANCE AtTWDID BY ZHIS ENDORSEMDU IS Cta,Y EFFECTIVE IF ME LAND IS 'USED
OR IS 70 BE LSID PRIMARMY FUR RESIDE N= PURPOSES.
7HE COMPANY INSURES THE INSURED AGA= LOSS OR DAMAGE SUS BY REASON OF
LACX OF PRIORITY OF THE LnN OF 7HE INSURED MZRIGAGE OVER:
(a) ANY ENVIRCtWZTML PROI ECTICN LIEN lZlICH, AT ME OF POLICY IS REOMDED IN
MMSE RECORDS ES'rn MISHED CIDER STATE SIAU= AT DATE OF POLICY FOR THE
PURPOSE OF LMPARTING C099=1VE NCJTICE OF NATIERS RELATING 70 REAL
PROPERTY 70 PURMASERS FOR VALLE AND WlTfKJCTr IQCWIJ=, OR FILED IN THE
RECORDS OF IRE CLERK OF THE tD= STATES DISTRICT' 0OUlRT IN MUCH THE LADED
IS LO A=, EXCEPT AS SET FC M IN SC1T = B; OR
(b) ANY PRC7If7GTICN LIEN PROVIDED FM BY ANY STATE STA= IN
EFFECT AT DAZE OF POLICY, EXCEPT ENVIR 3ITAL PRMECTION LIENS PROVIDED FOR
BY THE FOLLOW= STATE STATVTFS:
NONE
THIS E DORSEMEgr IS MADE A PART OF THE POLICY AND IS SCk3.7EGT TO ALL OF ZHE TERMS
AND PROVISICNS ZHE MF AND ANY PRIM E DCRaSII'4MTS Tf=M. EXCEPT TO Zip ExIIIU
EXPRESSLY STATED, IT NErMM MODIFIES ANY OF THE TM S AMID PROVISIONS OF Zi-Er
P0.1I Y OR ANY PRIOR ENDORSEMENTS, NOR DOES IT 0CI 0 THE EFFECTIVE DATE OF THE
PO:JCY OR ANY PRIOR RZORSEMENTS, NOR DOES IT 12KREASE THE FACE AM3CII`T!` =MF.
I&MCFS T= INSOPAKE CCW'AAiY
BY: _
8.1 (ALLTA)
110.9 ENDORSEMENT (CLTA)
CONDOMINIUM! PLAN Street s y
�*► a �f U'7iT_AiRSPAC£ Dil1P49I0W PLAN: SCALE: 1'
• BUILDING 'A' jF !
:MIDDLE LEVEL `:� •• +
UNITS I THRU I1 wj
cclvdcK tali LukC
IM,
.i
-a S
9.D
i •y
as14
M
.• � 7%w
T gas.
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all: ,
`o o�. QiLJ�l0111ML L L�!CI?i) 7 a
ee . >-
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ft
C
o4) C
� 0; NOTES!,
a
1. • INDICATES COMMOY BL'ILDIAG CONTROL POINT.
2. SEE SHEET 6 FOR BOUNDARY PLAT. j
]. SEE SHEET T FOR WILLING LOCATION PLtN. "� "j • �`+ 1
i. SEE SHEETS t THRU 19 FOR UNIT AIRSPACE DI!tENSION PLANS.
S. SEE SHEETS 20 .THRU 23 FOR SCHEDULES QF TTFICAL LXIT VERTICAL SECTIONS.
6. SEE SHEETS 24 THRU .t FOR TYPICAL L�tIT VERTICAL SECTIONS.
' SEE SHEET 29 FOR OPEN PARKING LOCA710H PLAN. • _. _ �` �
CONDITIONS AND STIPULATIONS
(Continued from inside front'Cover)
Whenever requested by the company.the insured,at the Com- (i) to pay or otherwise settle wi-h other parties for or in Section 2(a)of these Cond:tions and Stipulairons shall not
fparej s expense,snail give the Company all reasonable aid(j) in the name of an Insured Claimant arty claim insured against reduce pro tanto the amount of insurance a'lorded under this
In any action or proceeding, securing evidence, obtaining under this policy,together with arty toss,attorneys fees and policy except to the extern that the payments reduce the amount
witnesses,presecubng or defending the action or proceeding. expenses incurred by the insured claimant which were authonz- of the indebtedness secured by ire insured mortgage_
or effecting settlement,and(ii)in any other lawful act which ed by the Company up to the lime of payment and which the (b) Payment in part by any person of the principal of the
in the opinion)f the Company may be necessary or desirable Company is obligated to pay:or indebtedness,or any other obligation secured by the insured
to establish the bile to the estate or interest or the lien of the (ii) to pay or otherwise settle with the insured claimant mortgage,or any voluntary partial Satisfaction or release of the
insured mortgage.as insured-It the Company is prejudiced the loss or damage provided for under th S policy,together with insured mortgage,to the extent of the payment,sanSfaction
by Ile failure of the insured to furnish the required coopera- ary costs,attorneys'fees and expenses ixurred by One insured or release,shall reduce the amount of insurance pro lama.The
tion.the Company's obligations to the insured under the policy claimant which were authorized by the Company up to the time amount of insurance may thereafter be increased by accruing
shall termnwi.including any liability or obligation to defend, of payment and which the Company is obligated to pay. interest and advances made to protect the Gen of the insured
prosecute,or continue arty litigation,with regard to the mat- Upon the exercise by the Company o'either of the options mortgage and secured thereby.with interest thereon,provided
ter or matters tequinng such cooperation. provided tot in paragraphs lo(i)or bi),me Comparys obligations in no evert shall the amount of insurance be greater tnayr the
to the insured urder this policy for the cliimed loss ordamage. amount of insurance Stated in Schedule A.
5. PROOF V LASS OR DAMAGE. other than the payments required to be made,shall terminate (c) Payment in ful by any person or the voluntary sat:sfac.
In addition I)and after the notices required under Section including any liability or obligation to defend,prosecute or tion or release of the insured mortgage shall terminate all liability
3 of these Conclitions and Stipulations have been provided the continue arty litigation. of the Company except as provided in Section 2(a)of these
Company.a pr3of of loss or damage signed and sworn to by Conditions and Stipulations_
the insured cla mant shall be furnished to the Company within 7 DETERMINATION AND EXTENT OF LIABILITY.
90days after tre insured claimant shall ascertain the factsgiving This policy is a contract ofindemrlty against actaalrnorelary 10. LIABILITY NONCUMULATIVE.
rise to the loss or damage.The proof of loss or Carnage shall loss or damage sustained or incurred N the insured claimant If the insured acquires bile to the estate or merest in Satisfac-
describe the d tct in,or lien or encumbrance on the title,of who has suffered lass or damage tsy reason of mailers insured tion of the indebtedness secured by the insured mortgage,or
Other matter irsured against by this policy which constitutes against by this policy and only to the extent herein described. any part thereof,0 is expressly understood that the amount
the basis of k ss or damage and shall state, to the extent (a) The liability of the Company under this policy Shall not of insurance under this policy shalt be reduced by any amount
possible,the tasis of calculating the amount of the loss or exceed the least of: the Company may pay under arty policy insuring a mortgage
damage_If the Company is prejudiced by the failure of the in- (i) the amount of insurance sea,ed in Schedule A.or, to which exception is taken in Schedule B or to which the insured
sured claimant to provide the required proof of loss or damage. if applicable,the amount of insurance as defined in Section has agreed,assumed.or taken subject.or which is hereafter
the Company's obligations to the insured under the policy shall 2(c)of these Conditions and Stipulations; executed by an insured and which is a charge or Len on the
terminate,including arty liability or obligation to defend,pro- (ji) the amount of the unpaid principal indebtedness estate or interest described or referred to in SChedu!e A.and
secute.or cons roue any litigation,with regard to the matter or secured by the insured mortgage as Lmred or provided under the amount so paid shah be deemed a payment under this policy
matters requir.ng such proof of loss or damage Section 6 of these Conditions and Stpu ations or as reduced
In addition,time insured claimant may reasonably be required under Section 9 of these Cond.ons an Stipulations,at the 11. PAYMENT OF LASS.
to submit to examination under oath by"authorized represen- time the loss or damage insured against by this policy occurs. (a) No payment shall be made without producing this
tative of the Company and shall produce for examination, together with interest thereon.or policy for endorsement of the payment unless the policy has
inspection and copying.at such reasonable times and places (iii) the diVence between the vaXe of the insured estate been lost or destroyed.in which case proof of loss or destruC-
as may be designated by any authorized representative of the or interest as insured and the value of the insured estate or lion shall be furnished to the Satis'aclion tit the Company
Company,all records,books,ledgers,checks,correspondence interest subject to the defect,lien or elCumbrance insured (b) When liability and the extent of loss or damage has
and mernoranea,whether bearing a date before or after Date against by this policy, been definitely fixed in accordance with these Conditions and
of Policy.whici reasonably pertain to the loss or damage. (b) In the event the insured has acquired the estate or Stipulations,the loss or damage shad be payable within 30 days
Further.if requested by any authorized representative of the interest in the manner described in Section 2(a) of these thereafter.
Company,the insured claimant shall grant iris permission,in Co'tditions and Stipulations or has conveyed the title,then the
writing.for arty authorized representative of the Company to liabihty of the Company shall continue as set forth in Section 12. SUBROGATION UPON PAYMENT OR SETTLEMENT.
examine,irspe_3 and copy all records,books,ledgers,checks. 7(3)of these Conditions and St:putatiors. (a) The Company's Right of Subrogation.Whenever the
correspondent a and memoranda In the custody or control of (c) The Company wid pay oily those costs.aromeys lees Company shall have settled and pall a claim under this policy.
a third party.w'tich reasonably pertain to the loss or damage_ and expenses incurred in accordance with Section 4 of these all tight of subrmgation shalt vest m the Company unatlectel
All information designated as confidential by the insured clai- Conditions and Stipulations. by any act of the insured claimant.
mant provided b the Company pursuant to this Section shall The Company shall be subrogated to and be enlZed to a!t
not be disclose.i to others unless.in the reasonable judgment B LIMITATION OF LIABILITY. rights and remedies which the insured claimant would have had
of the Comparr/.it is necessary in the administration of the (a) If the Company establishes the title,or removes the against any person or property in reified to the claim had this
claim.Failure ct the insured claimant to submit for examina- alleged defect,ben or encumbrance.or cures the lack of a right policy not been issued.It requested by Me Company.the insured
tan under an,produce other reasonably requested information of access to or from the land,or Cures the claim of unmarket- claimant shall transfer to the Company all rights and remedies
or grant permis Sion to secure reasonably necessary informa- abi icy of title,or otherwise establishes the lien of the insured against any person or property necessary in Order to perfect
bon from Third parties as required in this paragraph,unless pro- mortgage,all as insured,in a reasonab"I diligent manner by this right of subrogation.The insured claimant shall permit the
hibited by taw a•governmental regulation,snail terminate any any method,including litigation and the completion of any Company to sue,compromise or settle in the name of the rwed
liability of the Company under this policy as to that claim. appeals therefrom,it shall have fully performed Its obligations ctamant and to use the mine of the inured darnlati in any trans-
with respect to that matter and shall not]e liable for any loss action or litigation kmfving these rights or remedies.
6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; or damage Caused thereby. If a payment on account of a claim does not fully cover the
TERMINATION OF LIABILITY. Ib) In the event of any litigation,including litigation by the loss of the insured claimant.the Company shall be subrogatod
in case of a claim under this policy,the Company Shall have Company or with the Company's toner*'.the Company snail W all nghs and mmediesof the insured clasmart ate{the Insured
the followingo;rhons: have no liability for loss or damage until Here has been a final ela!mant shall have recovered its principal,interest,and Costs
(a) To Pay or Tender Payment of the Amount of Insurance determination by a court of competent jursdicbon,and diSposi- Cf collection.
or to Purchase the Indebtedness. bon of all appeals therefrom,adverse to the bile or to the lien (b) The insured's Rights and Limitations.
(i) to pal or lender payment of the amount of insurance of the insured mortgage,as insured. Notwithstanding the foregoing,the owner of the indebtedness
under this polio together with any costs,atlomeys'fees and (c) The Company shall not be liable for loss or damage secured by the insured mortgage,provided tie priority of the
expenses ncurr.ed by the insured claimant,which were author- to any insured for liability voluntarily assumed by the insured lien of the insured mortgage or its enforteab1ty is not a"ecled.
ized by the Corr parry.up to the time of payment or lender of in settling any claim or suit without the Prior wnren consent may release or substitute the persona!lt&!dy of any debtor
payment and w lich the Company is obligated to pay;or of the Company. or guarantor,or extend or otherwise modify the terms of pay-
(a) to pu•thase the ndewmness secured by the insured (d) The Company shall not be liable for: ment,or release a portion of the estate or Interest from the
mortgage for the amount owing thereon together will any costs, (i) any indebtedness created surisequent to Date of lien of the insured mortgage.or release any collateral securty
a•torneys'fees and expenses incurred by the insured claimant Policy except for advances made to prot(V the lien of the in- for the indebtedness.
which were autr orized by the Company up to the time of pur- sured mortgage and secured thereby and reasonable amounts When the permitted acts of the insured Claimant occur and
Chase and which the Company is obligated to pay. expended to prevent deterioration of improvements;or the insured has WvMedgeofanyclaimoftitleornlerestadverse
It ire Compan/otters to purthasethe indebtedness as herein (ii) construction loan advances made sutsequert to to the bale to the estate or interest or time ptipnty or enlomeabkty
provided,the ov.ner of the indebtedness shall transfer,assign. Date of Polity,except construction ban advances made Subse- of the lien of the insured mortgage,as insured,the Company
and convey th( indebtedness and the insured mortgage, quest to Date of Policy for the purpose of financing in whole shall be required to pay Only that part of any,losses insured
together with ani ColIM!ral security.to the Company upon pay. or in part the construction of an improvement to the land which against by this policy which shall exceed the amount.if any.
ment therefor. at Cate of Policy were secured by the ins ured mortgage and Icst to the Company by reason of the impairment by the insured
Upon the exe-Cise by the Company of elther of the options which the insured was and continued to be obligated to ad- c'aimant of the Compa 's right of subrogation.
provided for in parag%fts a(i)or(ii),all liability and obliga- vance at and after Dale of Policy. (c) The Company%Rights Against Non-Insured Obligors
tions to the insured under this polity,other than to make the The Company's right of subrogation against non-insured
payment required in Those paragraphs,sha.1 terminate,including 9. REDUCTION OF INSURANCE: obligors Shall exist and shall include.without imitation,the
any liability or of Natiol to defend,prosecute.of Continue any REDUCTION OR TERMINATION OF LIABILITY, sights of the insured to indemnities.guaranties,other policies
liligation,and It a policy shall be surrendered to the Company (a) All payments under this policy.except payments made o!Insurance or bonds.notwithstanding any terms or condi'vORS
for cancellation. for Costs,aromeys'fees and expenses,stud reduce the amount Contained in those instruments which provide for subrogation
(b) To Pay c r Otherwise Settle With Parties Other than the of the insurance pro tanto.However,arty payments made prior rights by reason of this policy The Company's right of sub-
Insured or With the Insured Claimant. to the acquisition of bile to the estate or merest as provided rogation shall not be avoided by acquisition of the insured
(continued on back Cover)
1720A
CONDITIONS AND STIPULATIONS
(Continued from inside back cover)
mortgage by an obligor(except an obligor described in Section the Rules in effect on the date the demand for arbitration is made covered hereby or by any action asserting such claim,shall be
1(a)(ii)of these Conditions and Stipulations)who acquires the or, at the option of the insured,the Rules in effect at Date of restricted to this policy
insured mortgage as a result of an indemnity,guarantee,other Policy shall be binding upon the parties.The award may include (c) No amendment of or endorsement to this policy can
policy of insurance,or bond and the obligor will not be an insured attorneys'fees only if the laws of the state in which the land is be made except by a writing endorsed hereon or attached hereto
under this policy, notwithstanding Section 1(a)(i) of these located permit a court to award attorneys'fees to a prevailing signed by either the President,a Vice President,the Secretary,
Conditions and Stipulations. party.Judgment upon the award rendered by the Arbitrator(s) an Assistant Secretary,or validating officer or authorized signatory
may be entered in any court having jurisdiction thereof. of the Company.
13. ARBITRATION. The law of the situs of the land shall apply to an arbitration
Unless prohibited by applicable law, either the Company under the Title Insurance Arbitration Rules. 15. SEVERABILITY.
or the insured may demand arbitration pursuant to the Title A copy of the Rules may be obtained from the Company upon In the event any provision of this policy is held invalid or unen-
Insurance Arbitration Rules of the American Arbitration Asso- request. forceable under applicable law,the policy shall be deemed not
ciation.Arbitrable matters may include,but are not limited to, to include that provision and all other provisions shall remain
any controversy or claim between the Company and the insured 14. LIABILITY LIMITED TO THIS POLICY; in full force and effect.
arising out of or relating to this policy,any service of the Com- POLICY ENTIRE CONTRACT.
pany in connection with its issuance or the breach of a policy (a) This policy together with all endorsements, if any, 16. NOTICES,WHERE SENT.
provision or other obligation. All arbitrable matters when the attached hereto by the Company is the entire policy and con- All notices,required to be given the Company and any state-
Amount of Insurance is$1,000,000 or less shall be arbitrated tract between the insured and the Company.In interpreting any, ment in writing required to be furnished the Company shall include
at the option of either the Company or the insured.All arbitrable provision of this policy,this policy shall be construed as a whole. the number of this policy and shall be addressed to the Com-
matters when the Amount of Insurance is in excess of$1,000,000 (b) Any claim of loss or damage, whether or not based pany at 6800 College Blvd.,Suite 700,Overland Park,Kansas
shall be arbitrated only when agreed to by both the Company on negligence, and which arises out of the status of the lien 66211.
and the insured.Arbitration pursuant to this policy and under of the insured mortgage or of the title to the estate or interest
Policy of Title Insurance
Issued By
Nations Title Insurance Company
6800 College Blvd. /Suite 700/Overland Park, Kansas 66211
913-491-5585
1720A
REQUEST FOR COUNCIL/REDE' iLOPMEENT
AGENCY ACTION
ED 94-20
Date: Alay 16, 1994
Submitted to: Honorable Mayor/Chairman and City Council/Agency Members
Submitted by: Michael T. Uberuaga, City Administrator/Executive Directory k.
Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic DeveTo men
Subject: DOWN PA"IENT ASSISTANCE PROGRAAI—PAR 5PNR01'EU BY CI-py COUtiCI CIPANT ,
APPROVAL
Consistent with Council Policy? Pa Yes [ ]New Policy or Exception 11�
rtY
Statement or Issue, Recommendation, Analysis, Funding Source,—Alternative Actions, Attachments:
9�
STATEMENIT OF ISSUE:
Huntington Beach City Charter, Section 613, requires that each complete contract with a
borrower in the Community Development Block Grant and Redevelopment funded Down
Payment Assistance Programs must be approved by the City Council/Agency.
1 co lLIENDED -COT&CIL A `TIo :
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 and each participant as approved herein.
3. Release funds for Down Payment Assistance Program participants.
ANALYSTS:
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 94-20
May 16, 1994
Page two
On November 1, 1993, the Redevelopment Agency approved $400,000 in Redevelopment
Housing Set-Aside funds to assist a minimum of fourteen low-income buyers as per Resolution
No. 244 in the Brisas del Mar Condominium project. The low-income borrowers herein are
participants in this program and some may be participants in the CDBG program as well.
Huntington Beach City Charter, Section 613, requires the City Council 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.
ALTERNATIVES
Do not approve the participants.
FUNDING SOURCE:
Community Development Block Grant-- $200,000 total appropriation.
Redevelopment Agency Housing Set-aside- $400,000 total appropriation.
MTU/BAK/S VK:jar
1140j
DOWN PAYMENT
ASSISTANCE PROGRAM
Loan Location of Property
Name Amount Subject to Trust Deed
94-11 Valerie Bastou $25,000 (Set-Aside) 409 Utica #D-43
$ 5,000 (CDBG)
94-12 Teresa LaReine Quick $25,000 (Set-Aside) 409 Utica #A-9
5,000 (CDBG)
Note: Both borrowers have received "conditional loan approval" from Sanwa Bank and City/Agency
approval is subject to "final approval" by the bank.
` a
Page-9-Council/Agency f enda-11/1/93 (9)
E-14. (City Council/Redevelopment Agency) BRISAS DEL MAR -SECOND TRUST
DEED PROGRAM - RESOLUTION NO. 244 -409 UTICA AVENUE -Approve
the following actions:
Cont. 1. Approve the Appropriation of a maximum of$400,000 of redevelopment set
from aside housing trust funds for a second trust deed program foulo -income
10/25/93 buyers at Brisas del Mar; (V-A h it-vft, o-P I`{ , day
2. Approve the loan documents, as submitted, to be used as standard loan
documents for the second trust deed program, with minor modifications as
required by each participating lender;
3. Adopt Resolution No. 244, "A RESOLUTION OF THE REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON BEACH AUTHORIZING
EXECUTION BY THE DIRECTOR OF ECONOMIC DEVELOPMENT OF
LOAN AGREEMENTS FOR LOANS FUNDED BY HOUSING SET ASIDE
MONIES." authorizing the appropriate City and Agency officials to sign all
documents required and file for recording with the county. (340.70)
(9) 11/l/93
- ( u r m m rL-n(v 1 r( j 1'(v v -1 U J! 1 AV 4:1ARj UKAINUL (UAJ 1 ! `. 1 114 Ub'j OHM A 2/ 2
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property loafed At 409 Utwo Avenue � HWltltlSt�pll ,�Wifomial blW9 purchUW by
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Lim CITY OF HUNTINGTON BEACH
te INTER-DEPARTMENT COMMUNICATION
hUMU.1GTON BEACH
To: CONNIE BROCKWAY, City Clerk
BARBARA KAISER, Director of Economic Development
a
From: GAIL HUTTON, City Attorney
Date: July 25, 1994
Subject: BRISAS DEL MAR LOAN DOCUMENTS
Attached are the revised loan documents (dated July 12 and 25, 1994) for the
Brisas del Mar project. Borrower signatures are required on all documents.
City or Agency signatures are required only on the Loan Agreement. The deed
of trust, rider to deed of trust and promissory note are all exhibits to the Loan
Agreement. Only the deed of trust needs to be recorded.
No significant changes have been made to the documents, so additional City
Council action is not required.
GAIL HUTTON
City Attorney
4
cc: Sarah Lazarus, Deputy City Attorney
CITY OF HUNTINGTON BEACH
V" INTER-DEPARTMENT COMMUNICATION
nUNTuKTON 1EA01
TO: Connie Brockway, City Clerk
FROM: Barbara Kaiser, Deputy City Administrato 1�
. f4��
DATE: August 2, 1994
SUBJECT: LOAN DOCUMENTS - RIVERA AND QUICK
Attached are completed loan documents for Mr. & Mrs. Hector Rivera and
Teresa L. Quick. Each household is participating in both the Redevelopment
Agency and CDBG funded Down Payment Assistance programs and are
purchasing units in the Brisas Del Mar condominium project. These loan
documents are those as provided by the City Attorney for use in these programs.
Please procure the Mayor's signature as needed and provide the necessary
notary certification. Please return the documents thereafter to this office so that
we may procure the balance of the required signatures and forward the
documents and checks to escrow.
If you have any questions please call.
BAK:SVK:dw
9epherVn%wo C1e*1
CITY OF HUNTINGTON BEACH
Ike" 2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
DEED CERTIFICATION
This is to certify that the interest in real property conveyed by the Deed of Trust
dated August 11, 1994 from TERESA L. QUICK to the REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON BEACH, a govemmental agency,is
hereby accepted by the undersigned officer or agent on behalf of the Agency
pursuant to the authority conferred by Resolution No. 244 of the Agency and the
grantee consents to the recordation thereof by its duly authorized officer.
Dated: August 22, 1994
CITY OF HUNTINGTON BEACH
CONNIE BROCKWAY, CMC
CLERK
i
By:
Deputy Clerk
441 �'ler313-e io/ - p C�gf f- Le i
;-;may�g ccwce& -'?= - C4 .! �
-rifle—6
47
ITelephono:7i4536.5227)
CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
HUN MC.10N BEACH
a
TO: Connie Brockway, City Clerk
FROM: Barbara A. Kaiser, Deputy City Administrator
SUBJECT: DPA Borrower- QUICK
DATE: August 19, 1994
Recently the escrow company for the captioned borrower contacted this office
requesting a "Deed Certification'. Attached is a sample certification used for a
previous borrower.
Please prepare the Deed Certification for Ms. Quick's loan and forward it to:
Tiempo Escrow
19093 Beach Boulevard
Huntington Beach, CA 92648
Please provide us with a copy of the certification.
We appreciate your assistance.
BAK jw
Attachment
cb&Wdoc
claia
EXAMPLE
CITY CLERK LEMERHEAD
PEED CERTIFICATION
-1. / k- L2�
This is to certif ,that the interest in real p perty conveyed�y the deed/dated
s_ f 1 r from Teresvuick to th on
--$ems,-a municipal corporation, is hereby accepted by the undersigned officer
or agent on behalf of the City Council of the City of Huntington Be
pursuant to the authority conferred by Resolution No.453iZflthe City Council
of thctity-of-H nngta=Scuh adopted on August 7, 1972, and the grantee
consents to the r cordation thereof by its duly authorized officer.
CITY OF HUNTINGTON BEACH
CONNIE BROCKWAY, afC
CITY CLERK
By: —��
Deputy City Clerk
cw$a