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Home My WebLink AboutTHOMAS OTTO/ RAY SHORB - 1994-02-25 CITY OF HUNTINGTON BEACH Inter-Office Communication Economic Development Department DATE: June 12,2000 TO: Gus Duran,Housing/Redevelopment Manager FROM: Joyce DeKreek,Housing/Redevelopment Consultan SUBJECT: Research on Loan Forgiveness, 1st Time Home-Buyers Program Redevelopment Set-Aside, $400,000 and Redevelopment Set-Aside, $750,000 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 $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 lst Time Home-Buyers Program and one additional applicant for the RDA lst Time Home-Buyers Program only. The RDA portion of these loans are Bastou ($25,000),Dieckmeyer($23,000), Griffen($25,000), Hoang($23,000), Lawson($23,000),Melvin($35,000), Otto ($23,000), Quick, S. ($16,717), Quick,T. ($25,000), Rivera H. ($25,000). Quick, T. withdrew from the CDBG loan but maintains the RDA loan. These loans total $243,717. The Redevelopment Agency approved fifteen(15) applicants from the$750,000 allocation at Pacific Park Villas (PPV)to participate in the Redevelopment Agency 1st Time Buyer Program. The names and amounts are(Carrillo ($35,000), Forchione ($35,000),Heckethorn($35,000),Hosseinali ($35,000),Hocker($35,000),Lawrence ($35,000), Murch($35,000), Osterhoudt($35,000), Peltier($35,000), Rivera-Burgess ($35,000), Wallace($35,000), Weinfeld ($35,000), Wong($35,000), Krueck($35,000), Margoles ($35,000). These loans total$525,000. Four loans (Melkerson/Uniack, Ojeda, Rene/White, Stratton), previously approved by RDA were not funded. Gljoyce/lntermemo Reconvey.doc . - _ •rtj lam.Lr.[J _ �� ~'-� y,[" + •. ! - y ••~ ,"'-f�-'mil` .lLr.•'?;Yi.� r,�i�t� ._. ter- �1_' L: One loan (Wallace) was assumed by another qualified buyer(Stay). Two applicants have paid their loans: Melvin, paid off his RDA Ioan 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 GljoyceAntenmemo Rcconvey-doc PACIFIC PARK VILLAS ($750,000— RDA) 95-01 (2-1-95) Carillo, Ann $ 35,000 7861 Happy Drive, #102 RDA 12-19-94 95-02 (2-1-95) Lawrence, James and Jeanette S 35,000 18051 Joyful Lane, #16 RDA 12-19-94 95-03 (2-1-95) Wong, Wesley Chi $ 35,000 7681 Happy Drive, #202 RDA 12-19-94 95-04 (2-1-95) Hacker, Christopher/Vandereb, GayleS 35,000 7681 Happy Drive,#101 RDA 12-19-94 95-06(4-12-95) Rivera,Victor/Burgess, Debra S 35,000 18061 Joyful Lane, #104 RDA 4-3-95 96-01 (1-24-96) Heckethorne, Sean &Jacquelyn S 35,000 7871 Happy Drive, #102 RDA 1-16-96 96-02 (3-7-96) Margolis,Peter $ 35,000 18651 Joyful Lane, #104 RDA 3-4-96 96-03 ( Weinfeld,Julie $ 35,000 18061 Joyful Lane, #205 RDA 4-1-96 96-04 (7-17-96) Peltier, Edward $ 35,000 7871 Happy Drive, #201 RDA 7-15-96 96-05 (8-7-96) Wallace,Barbara Jo $ 35,000 18051 Joyful Lane, #205 RDA 8-5-96 96-06 (8-7-96) Murch, Gregory $ 35,000 18051 Joyful Lane, #102 RDA 8-5-96 97-01 (1-29-97) Krueck, Deborah $ 35,000 18061 Joyful Lane, #101 RDA 1-21-97 97-02 (4-30-97) Osterhoudt, Robert and Kathy $ 35,000 18061 Joyful Lane, #IO2 RDA G.Coycclntermemo Reconvey.doc 97-03 (5-14-97) Hosseinali,Faroukh $ 35,000 18061 Joyful Lane, #201 RDA 97-04(7-23-97) Forchine, Richard $ 35,000 18051 Joyful Lane, #201 RDA 7-21-97 lst TEAE 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 Reine, Teresa $ 25,000 409 Utica Avenue#A-9 (RDA 5-18-94) 94-13 (6-23-94) Melvin, Patrick $ 35,000 409 Utica Avenue#D-39 (RDA 6-20-94) 94-14 (7-27-94) Rivera, Hector&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 1 • LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") Is made this 25TH day of FEBRUARY p 19 94 by and between THOMAS RAY/OTTO SHORB ("Participant") and THE CITY OF HUNTINGTON BEACH, a municipal corporation ("City"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as 409 Utica Avenue, A-7, 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 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 Pardcpant 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 7XmemoXLOinkkX83093/12:29 PM 1. City Loan City shall loan to Participant (the "Loan") the amount of Eight Thousand Eight Hundred Thirty One and no/100 Dollars ($8,831.00), subject to the conditions and restrictions set forth herein, in the Promissory Note, the Disclosure Statement for the Program, the Deed of Trust and all applicable State, local and federal law. The Loan shall be paid to the seller of the Property (the "Seller") by the City through deposit of the Loan proceeds into escrow with TIEMPO ESCROW (the "Escrow Agent") (Escrow No. 6512-L ). The City shall direct the Escrow Agent to apply the proceeds of the Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the City a promissory note in favor of the City as holder, in the amount of the Loan, with interest accruing at five percent (5%) per year, substantially in the form of the "Promissory Note" attached hereto as Exhibit "B" and incorporated herein. Participant shall also execute and deliver to the City a deed of trust encumbering the Property which shall secure the Promissory Note (the "Deed of Trust"), substantially in the form of Exhibit "C" attached hereto and incorporated herein. 2. Maintenance of Property. Participant shall maintain the improvements on the Property In a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws, Including conditions of approval which may apply to the Property pursuant to an entitlement issued by the City. 3. Acceleration/Due on Safe. Except as herein provided, the Loan and all interest accrued thereon shall be due and payable upon (1) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any pan of the Property, (il) 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 (ill) Participant Is in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant (Attachment "D" to this Agreement), as defined herein, recorded on the property, or (lv) 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). 2 71mem01Lojnkk\83093/12:29 PM n 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 Clry 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. 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. 16. Covenants. Recorded in the Official Records of Orange County, California, Is a declaration of conditions, covenants and restrictions for property, which is known as an Affordable Housing Agreement or covenants which is attached as Exhibit "D" hereto and incorporated herein. Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are definedin the Affordable Housing Agreement, and that Participant shall not discriminate against any person or group of persons on the 3 7\memo\Loankk\83093/12:29 PM basis of race, color, religion, sex, marital status, national origin or ancestry, all as set forth in the Affordable Housing Agreement. 11. Non-Waiver. Failure to exercise any right the City may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 12. Indemnification. The Participant shall defend, indemnify and hold harmless the City of Huntington Beach and its respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating In any manner to the Property of this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the City to make such payments, by virtue of the Loan. 13. Insurance. Participant shall maintain, during the term of the City Loan, an all-risk property insurance policy insuring the Property in an amount equal to the full replacement value of the structures on the Property. The policy shall name the City as loss payee and shall contain a statement of obligation on behalf of the carrier to notify the City of any material change, cancellation or termination of coverage at least thirty (30) days in advance of the effective date of such material change, cancellation or termination. Participant shall transmit a copy of the certificate of insurance and loss payee endorsement to City within thirty (30) days of the effective date of this Agreement, and Participant shall annually transmit to City a copy of the certificate of insurance and a loss payee endorsement, signed by an authorized agent of the insurance carrier setting forth the general provisions of coverage. The copy of the certificate of insurance and loss payee endorsement shall be transmitted to City as follows: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: 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 4 7\mem1D\Loankk1,83093/12:29 PM 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 parry 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 defauit, 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 Noce; (c) Deed of Trust; and (d) The Affordable Housing Agreement (Exhibit "D") (e) Notice of Right of Recission Participant agrees and acknowledges that the Deed of Trust, Loan Disclosure Statement and the Affordable Housing Agreement shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. 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. 5 7lmemo\Loankk\83093/12:29 PM 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 Assumpdon Prohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the City, which consent may be given or withheld in the City's sole discretion. No assumption of the Loan shall be permitted at any time. This section shall not prohibit the City's right to assign all or any portion of Its rights to the loan proceeds hereunder. 21. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement Integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous agreements between the City and the Participant concerning all or any part of the subject matter of this Agreement. 22. Relationship of Participant and City. The relationship of Participant and City pursuant to this Agreement is that of debtor and creditor and shall not be, or be construed to be a joint venture, equity venture, partnership, or other relationship. 23. Notices. Any notices, requests or approvals given under this Agreement from one party to another may be personally delivered or deposited with the United States Postal Service for mailing, postage prepaid, registered or certified mail, return receipt requested to the following address: To Participant: �� To City: City of Huntington Beach Attention: Department of Economic Development 2000 Main Street Huntington Beach, CA 92648 Either parry may change Its address for notice by giving written notice thereof to the other parry. 6 Arnemo\Loinkk\83093/12:29 PM 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 7\memo\Loankk\83093112:29 PM IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. "PARTICIPANT" Date: /2 Print Name: ic�+�s ono TIde:Ot-W4 ere— Date: _ 2� �l 5/ By: �,/1-zdll� Print ame: CC, h�v skid/� Title: 0 w -p CITY OF HUNTINGTON BEACH, a municipal corporation Date: 2/18/94 By: b 6- Print Name- Its: fir. 0� 15c U . APPROVED AS TO FORM: By: GAIL Ht1 O ,�C1tpyAAtto`rrey 8 l%memo%Lo3nkkX8 309311 2-00 F'M LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 25TH day of FEBRUARY _ , 19 94 by and between THOMAS OTTO/RAY SHORB ("Participant") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body, corporate and politic ("Agency"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certain real property commonly known as 409 Utica Avenue, A-7, 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 Callfornia-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. E. The Agency wishes to lend, and Participant wishes to borrow, _ Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. 1 7/jbrbWO2/22/94 NOW, THEREFORE, for good and valuable consideration the parties agree as follows: I . Agency Loan. Agency shall loan to Participant (the "Loan") the amount of Twenty Three Thousand and no/100 Dollars ($23,000.00), subject to the conditions and restrictions set forth herein and those set forth in the Promissory Noce, 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 TIEMPO ESCROW (the "Escrow Agent") (Escrow No. 6512-L ), The Agency shall direct the Escrow Agent to apply the proceeds of the Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the Agency a promissory note In favor of the Agency as holder, in the amount of the Loan, with interest at live 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. Maintenance gf Properw. Participant shall maintain the Improvements on the Property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws. 2 7/ibrrsu/02/22/94 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 (1) sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, except sale to a purchaser approved by Agency, (1i) 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, (ill) 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 ioaoto Qualifled Bier. 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 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 Dousing cost pursuant to the standards set forth In the Agency's Affordable Housing Program. If the Agency is unable to verify the Buyer's income as provided herein, then the Buyer's Income shall be deemed to exceed the maximum allowable Income 3 7/abrtsts/02/22194 limit for Eligible Persons and Families and the Equity Share Amount shall be due and payable concurrent with the repayment of the Note Amount plus interest. in the event that sale or transfer Is made to an Eligible Person or Family, Interest which has accrued upon close of escrow shall be due and payable. interest will begin to accrue at the simple rate of five percent per annum as to the new owner, on the date upon which escrow closes and will accrue on the then unpaid principal amount. 5. Notice to Agency. Participant agrees to notify the Agency not less than thirty (30) days prior to (i) the sale or transfer of the Property or (11) any refinancing of the lien secured by the First Deed of Trust (the "First Mortgage) or any lien or note to which the lien secured by the First Deed of Trust is subordinate G. Occupy 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 Homebuver. 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 Sery6cin The Agency may contract with a private lender to originate and service the Agency Loan. 10. PartJcipant Financing. Participant shall obtain financing for the purchase of the Property from a reputable institutional lender approved by the 4 7/abdsu/02/2 2/94 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. 1 1 . Covenam. Recorded in the Offlcial Records of Orange County, California, Is a declaration of conditions, covenants and restrictions for property, which is known as an Affordable Housing Agreement or (covenants) which Is attached as Exhibit "D" hereto and incorporated herein. Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate Income available at an affordable housing cost, as those terms are defined in the Affordable Housing Agreement, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry, all as set forth in the Affordable Housing Agreement. 12. Equity Share. In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency concurrent with the principal and accrued Interest, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary fifty percent (50%) of the Agency Deed of Trust: 2. After fifth anniversary but forty-eight percent prior to sixth anniversary: (48%) 3. After sixth anniversary but forty-six percent (46%) prior to seventh anniversary: 4. After seventh anniversary but forty-four percent (44%) prior to eighth anniversary: 5 7/jbvtsu/02/22/94 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: 1 1. After fourteenth anniversary but thirty percent (30%) prior to fifteenth anniversary: 12. After fifteenth anniversary but twenty-eight percent prior to sixteenth anniversary: (28%) 13. After sixteenth anniversary but twenty-six percent prior to seventeenth anniversary: (26%) 14. After seventeenth anniversary but twenty-four percent prior to eighteenth anniversary: (24%) 15. After eighteenth anniversary but twenty-two percent prior to nineteenth anniversary: (22%) 16. After nineteenth anniversary but twenty percent (20%) prior to twentieth anniversary: 17. After twentieth anniversary but eighteen percent ( 18%) prior to twenty-first anniversary: 6 7labSWO2122194 18. After twenty-first anniversary but sixteen percent ( 16%) prior to twenty-second anniversary: 19. After twenty-second anniversary but fourteen percent ( 14%) prior to twenty-third anniversary: 20. After twenty-third anniversary but twelve percent ( 12%) prior to twenty-fourth anniversary: 21 . After twenty-fourth anniversary but ten percent ( 10%) prior to twenty-fifth anniversary: 22. After twenty-fifth anniversary but eight percent (8%) prior to twenty-sixth anniversary: 23. After twenty-sixth anniversary but six percent (6%) prior to twenty-seventh anniversary: 24. After twenty-seventh anniversary but four percent (4%) prior to twenty-elghth 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%) The "Purchase Price" Is the original purchase price paid by the Participant to the Seller for Seller's Interest In the Property, exclusive of escrow fees, tide Insurance costs, broker's commission, loan fees or any other closing or transaction costs. The "Sales Price" is the price to be paid by the buyer of the Property (the "Buyer") to Participant for Participant's Interest In the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. 7 7/abrIW02/22/94 In the event of sale of the Property and at the election of the Agency, the Agency may appoint a certified, independent appraiser to conduct any appraisal of the Property, at Participant's expense to assist the Agency In determining if the Sales Price is at or near the fair market value of the Property at such time. If the Sales Price is determined by the appraisal to be three percent (3%) or more below the fair market value of the Property as estimated in said appraisal, then the "Sales Price" for purposes of determining the Equity Share Amount shall be the fair market value of the Property established in said appraisal. PARTICIPANT ACKNOWLEDGES AND AGREES THAT UPON THE OCCURRENCE OF ANY OF THE EVENTS DESCRIBED IN PARAGRAPH 3 ABOVE, PRIOR TO THE 30TH ANNIVERSARY, PARTICIPANT SHALL PAY TO AGENCY AN EQUITY SHARE AMOUNT EQUAL TO A PERCENTAGE SHARE OF THE APPRECIATION OF THE PROPERTY AS CALCULATED PURSUANT TO THIS SECTION. EXCEPT AS PROVIDED HEREIN, THE AGENCY ACKNOWLEDGES AND AGREES THAT PARTICIPANT SHALL ONLY PAY THE NOTE AMOUNT AND THE EQUITY SHARE AMOUNT TO THE AGENCY IF, AND ONLY IF, PARTICIPANT FAILS TO CONTINUOUSLY OWN AND OCCUPY THE PROPERTY FOR THIRTY (30) YEARS, PARTICIPANT FAILS TO COMPLY WITH THE PROVISIONS OF THIS AGREEMENT, OR PARTICIPANT SELLS THE PROPERTY TO A BUYER NOT _ QUALIFIED BY THE A EN PAR ICIPANT AGENCY The value of all capital Improvements to the Property made while Participant owned and occupied the Property shall be deducted from the Sales Price when calculating the Equity Share Amount, if Participant complies with the following: The costs Incurred by the Participant for capital Improvements shall be deducted from the Sales Price only if Participant submits the following to the Agency: (i) an Itemized list of the improvements, (11) reliable proof of completion of the Improvements (as evidenced e.g., by final building permits or certificate of completion), and (Ili) reliable evidence of the cost of B 7/abrlsas/02/22/94 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 any material change, cancellation or termination of coverage at least thirty (30) days in advance of the effective date of such material change, cancellation or termination. Participant shall transmit a copy of the certificate of insurance and loss payee endorsement to Agency within thirty (30) days of the effective date of this Agreement, and Participant shall annually transmit to Agency a copy of the certificate of Insurance and a loss payee endorsement, signed by an authorized agent of the insurance 9 7/abrisas/02/22/94 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. Defaulu. 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 parry 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 nonce shall not constitute a waiver of any default, nor shall it change the time of default. 17, Documents. Participant Is aware that the Agency has prepared certain documents to implement the Affordable Housing Program and secure repayment of the Loan. Participant has reviewed and agrees to the terms and conditions contained in the following documents prior to receiving the Loan.- (a) Disclosure Statement (b) Promissory Note; (c) Deed of Trust, and 10 71abrliW02122M (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. 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. 11 7/abrtsas/02/22/94 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: t9Z6VrTo Agency: TEEDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH Attention: Executive Director 2000 Main Street Huntington Beach, CA 92648 Either party may change its address for notice by giving written notice thereof to the other party. 26. Subordination Clause. In the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions In any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the Borrower's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, Including his successors or assigns (other than the Borrower or a related entity of the Borrower), receiving 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. 12 7/2brlsis/02/21/94 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. "PARTICIPANT" Date: 2 2 Y B Print Name: oM A s E- 0-n-0 Tide: Co- (w e'�6-2— Date: 2`7��9(� By: /� 4, Print Name: 4 N Title: olyr7 p,-- REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a municipal corporation Date: 2 Z9- 4 By: r Print Name: �`ticQ 1 �l�ca Its: exec.'" — V-e APPROVED AS TO FORM: By: GAIL HUT TON ,) City Attorney/Agency Counsel 13 7/aWsu/02/22/94 1 Recording Requested By And When Recorded Return To: Redevelopment Agency of the City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Executive Director Property Address: 409 Utica Avenue A-7, Huntington Beach THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH LOAN DISCLOSURE STATEMENT INVe THOMAS OTTO%RAY SHORB ("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: • INVe 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. INVe 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. • I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to rescind or cancel the loan to: Redevelopment Agency of the City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 Attn: Executive Director 1 7W.1 cls`:02!14AM • The Agency will not require me/us to make payments of principal or interest during the term of the loan. The full balance of principal and interest may be due and payable if I/we 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 my/our house. • The Agency shall not be held responsible for any costs associated with the institutional loan for the home I/we purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The Agency cannot ensure that information provided by or on behalf of Applicant will be kept confidential. • The Agency shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/we assume all responsibility for determining whether I/we desire to be considered for the Program, and I/we will inform myself/ourselves as to the availability and terms of other public or private loans. • The Agency shall not be charged with knowledge of the contents of the documents of the primary lender. • All loans must be approved by the Redevelopment Agency of the City of Huntington Beach; therefore, a minimum 60-day escrow is necessary. 2 Tdj,cl5'1)2/14"M • 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: Signature of applicant Dated: Signature of applicant Dated: _ Signature of applicant APPROVED AS TO FORM: �Ap unsel 3 74A sus40?r i•ua Recording Requested By And When Recorded Return To: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Department of Economic Development Property Address: 409 Utica Avenue A-7, Huntington Beach CITY OF HUNTINGTON BEACH LOAN ASSISTANCE DISCLOSURE STATEMENT INVe THOMAS OTTO/RAY SHORB ("Applicant") understand and agree that the provision of financial assistance from The City of Huntington Beach ("City") is conditioned upon a number of factors, including, but not limited to: • INVe must qualify for a home loan from an institutional lender acceptable to the City. • INVe must pay at least 3 % of the Dome purchase price from our own funds. • IMe must qualify for assistance under the guidelines of the City's Program. 1NVe further understand and agree that: • I/VVe will be responsible for repaying the loan at the time I/we sell, transfer, refinance, or no longer occupy my/our home, or breach any part of the Loan Agreement. • i/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to rescind or cancel the loan W. City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 Attn: Department of Economic Development 1 71duls`�J7J I�!4s • The City will not require me/us to make payments of principal or interest during the term of the loan. The full balance of principal and interest will be due and payable if I/we do not comply with the terms of the agreement to which this statement is attached. There are no loan closing costs, prepayment penalties or charges, points, fees, finance charges, service charges, investigation fees, credit report fees, insurance premiums, notary or escrow fees, late payment charges or other fees payable pursuant to this loan. An appraisal fee may be payable upon the refinancing of mylour house. • The City shall not be held responsible for any costs associated with the institutional loan for the home I/we purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The City cannot ensure that information provided by or on behalf of Applicant will be kept confidential. • The City shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. I/we assume all responsibility for determining whether I/we desire to be considered for the Program, and I/we will inform myself/ourselves as to the availability and terms of other public or private loans. • The City shall not be charged with knowledge of the contents of the documents of the primary lender. 2 7W LSCI-S 02!17/% • The City financial assistance I/we receive under this Program may be considered to be income for purposes of federal or state income taxes and the City shall not be held responsible for the payment of any taxes which I/we may incur by virtue of the receipt of such financial assistance. Dated: 4 Signature of applicant Dated: ?-2 Signature of applicant Dated: Signature of applicant APPROVED AS TO FORM: C- Ci mey 3 T.d estl5{U2!l0l94 i PROMISSORY NOTE Property Address 409 Utica Avenue A-7 Huntington Beach, California 1994 1. Promise to Pay. THOMAS OTTO/RAY sHoxB ("Borrower") promises to pay the CITY OF HUNTINGTON BEACH, a municipal corporation ("Holder," also referred to as "City"), at the office of the City In Huntington Beach California, or at such other place as Light Thousand Ei ht Hundred the Holder may designate In writing, the principal sum of 1rhj rt„_QRAr, nn /1 N______________ Dollars ($8.83i_) (the "Note Amount"), together with Interest. Th` a balance of all unforgiven unpaid principal and accrued Interest shall 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 date of the disbursement of the Note Amount until the date upon which the Note Amount Is repaid, at the simple race of five percent (5%) per annum. 3. Affordable Housing Agreement This Promissory Note Is made and delivered pursuant to and In Implementation of an Affordable Housing Agreement recorded on the property as a covenant binding upon Borrower (the "Agreement"), a copy of which is on file as a public record with the Holder and is Incorporated herein by reference, and a Loan Agreement between Borrower and City dated 2--25-94 . This Promissory Note is attachment "B" to the Loan Agreement. 4. A. Acceleration Except as otherwise provided herein, the whole of the Note Amount, any Interest accrued thereon, and all other payments due hereunder and under the Agreement shall, at the option of the Holder, become due and be immediately payable to the Holder by the Borrower upon the occurrence of any one of the following events: (1) Borrower sells, transfers or makes disposition of the Property in whole or in part, including, without limitation, the lease, exchange or rental of the Property or any Interest therein, whether voluntary or involuntary; (2) Borrower refinances any lien or encumbrances to which the 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; (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); I 71loandoc/dtyprornnote1071 14194 (5) Borrower defaults on this Promissory Note; (6) Borrower defaults on the Agency Deed of Trust. In the event that there is a default in payment as scheduled herein or a default under the terms of the Deed of Trust securing this Note, or a default of the Agreement or In any other instrument executed by Borrower or any guarantor in favor of the City, the City may at its election declare all amounts of the outstanding principal and accrued interest thereon immediately due and payable. 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 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 Noce, by agreement between the Holder and Borrower, and such consent shall nor alter or diminish the liability of any person or the enforceability of this Note. Each and every party signing or endorsing this Note binds itself as a principal and not a surety. In any action or proceeding to recover any sum herein provided for, no defense of adequacy of security, or that resort must first be had to security or to any other person shall be asserted. All of the terms, covenants, provisions, and conditions herein contained are made on behalf of, and shall apply to and bind, the undersigned and its successors and assigns, jointly and severally. 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 other costs incurred by the City, together with interest thereon from the date of such demand until paid at the rate of interest 2 7/1oaridocicicypromnoce/02122/94 applicable to the principal owing hereunder as if such unpaid attorney fees and costs have been added to the principal. 10. Security of No 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. It. 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. Bu5ingsi PuMQSg 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 tenors of this Note, the Affordable Housing Covenants or Agreements recorded on the Property, the Deed of Trust and the Loan Agreement and uses the Property as his personal primary residence. IN WITNESS HEREOF, this instrument has been executed as of the date set forth below. SIGNATORY DATE: 9 " ow " DATE: 2��1 By r L-2�— "Dullvvml' CITY OF HUNTINGTON BEACH By: - Its:- —i�)i+r APPROVED AS TO FORM: ti F/$7 ey �.�. ,y 3 I/loandoc/cirypromnote1071 1 419 4 PROMISSORY NOTE Property Address: 409 Utica Avenue A-7, Huntington Beach, California FMRIIARY 75 , 1994 1. Promise to Pay. THOMAS OTTO/RAY SHORB ("Borrower") promises to pay the REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body, corporate and politic ("Holder," also referred to as "Agency"), at the office of the Agency In Huntington Beach, California, or at such other place as the Holder may designate in writing, the principal sum of Twenty-Three Thousand and no/]00 Dollars ($23,000) (the "Note Amount"), together with interest. The balance of all unforgiven unpaid principal and accrued interest shall be due and payable upon sale of the Property or upon occurrence of the other events listed in the acceleration clause herein. 2. Interest Rate Interest shall 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 live percent (5%) per annum. In the event that Borrower transfers the Property to a Buyer qualified to participate in the Agency's Affordable Housing Loan Program and approved by the Agency ("Qualified Buyer"), all accrued interest which would then have been due and payable if the Borrower were in default will be paid on the date upon which escrow closes; however, no equity share amount shall be due. Interest at the rate of five percent (5%) per annum will begin to accrue as to the new Buyer on the remaining principal from the date upon which escrow closes and 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 HQ sinsr Agaement 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 2-25-94 . This Promissory Note is attachment "B" to the Loan Agreement. 4. Acceleration The whole of the Note Amount, any interest accrued thereon, the equity share amount, and all other payments due hereunder and under the Agreement shall, at the option of the Holder, become due and be immediately payable to the Holder by the Borrower upon the occurrence of any one of the following events: (a) Unless sale is made to a qualified Buyer who assumes the Loan, Borrower sells, transfers or makes disposition of the Property in whole or in part, including, without Iimitation, 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 Trust is subordinate for loan amount in excess of the then current loan balance secured by such lien or encumbrance; I 7/foandoc/agencypromnote/02/22194 (c) Borrower falls to occupy the Property as Borrower's principal residence pursuant to the Loan Agreement or is in breach or default of any other obligation under the Agreement or violates the terms of the Affordable Housing Agreement (Affordable Housing Covenant); (d) The close of a probate estate following the death of Borrower (unless Borrower is more than one person and one or more of the other people comprising Borrower survive); (e) Borrower defaults on this Promissory Note; (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 Faiiure 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 enforceabiiity of this Note. Each and every party signing or endorsing this Note binds Itself as a principal and not a surety. In any action or proceeding to recover any sum herein provided for, no defense of adequacy of security, or that resort must first be had to security or to any other person shall be asserted. All of the terms, covenants, provisions, and conditions herein contained are made on behalf of, and shall apply to and bind, the undersigned and its successors and assigns, jointly and severally. 9. Collection Costs If any attorney is engaged by the Agency to enforce or construe any provision of this Note or the Deed of Trust, or if Agency incurs any other expense by virtue of collecting sums due to the Agency under this Note, as a consequence of any default or event of default hereunder, with or without the filing of any legal action or proceeding, then Borrower shall immediately pay upon demand all attorney fees and all other costs Incurred by the 2 7/loandoc/agencypromnote/02/22/94 Agency, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal owing hereunder as if such unpaid attorney fees and costs have been added to the principal. 10. Security of Not 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 Deferred All interest and principal payments will be deferred so long as the Borrower is in compliance with the terms of this Note, the Affordable Housing Covenants or Agreements recorded on the Property, the Deed of Trust and the Loan Agreement. 3 7/loandoc/agencypromnote/02/22/94 IN WITNESS HEREOF, this instrument has been executed as of the date set forth below. SIGNATORY DATE: ? " orro r" DATE:-2 —Z5 -q(-.[ By " orrower" REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH `BY• LS: 'uG ►re c�v.r APPROVED AS TO FORM: 6Gr� nsel 9V 4 7/loandoclagencypromnote/02/14/94 - Acenc y 'RECORDING REQUESTED B'1 11C ii { 1�-01 1.I. ORANGE COAST T1ILE CQ 2€�--FEEtt—�'9t94 `tOf 3=5a Fri�4 RE� 55UB1]1V1S1Df1 DEPL ORDING REQUESTED BY ) Recorded in Official Records AND WHEN RECORDED RETURN TO: ) of Oranae County, C:j ifernia Lee A. Brant!, County Rer-Orlijer The Redevelopment Agency of the ) Pam i of 26 Fees: i 0.0 City of Huntington Beach ? Tax. s o.v'{' 2000 Main Street ) Huntington Beach, California 92648 ) Attn: Agency Clerk ) tSpxe Above This Une For Recorder's Use.) This document is exempt from recording fees pursuant to z Govemmen[ Code Section 6103. fDEED OF TRUST WITH ASSIGNME_ J THIS DEED OF TRUST is made this,'25TH day of FEB. , 19n4by and among _THOMAS OTTO/RAY SHORB ,whose address is 409 Utica Avenue_ A-7 , (the "Trustor") and THE. CITY OF HUNTINGTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPMENT AGENCY"OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and Incorporated herein. TOGETHER WITH: (a) 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, SUB]ECT, 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: i . Payment Of the sum Of Twenty-Three Thousand & no/100---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 7\DEEDRENT\0211019416 i i GOVERNMENT CODE 27361. 7 I I certify under the penalty of perjury that the illegible portion of this document, to which this statement is attached, reads as follows; FEB. , 1994 by and among I I Place of execution SANTA ANA, CA Date OCT-8c O—rgfe Coast Title y 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 FEB. 25, agj 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: I. To keep said property In good condition and repair; to allow Beneficiary or Its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change In the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and In good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or Improvements to be made thereon; not to Initiate or acquiesce In any zoning reclassification without Beneficiary's written consent, not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, Irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (f) not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which Improvements will be constructed, Trustor shall make separate contracts and subcona-acts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials 7 DEEDRENn02/10l94/8 2 i l j GOVERNMENT CODE 27361. 7 I certify under the penalty of perjury that the illegible portion of this document, to which this statement is attached, reads as follows; FEB. 25, 1994 , F Place of execution SANTA ANA, CA Date ✓�"' �- OCT-8c Orange Coast Title y furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to it, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act 7\DEEDRENT\02/10/94/B 3 required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto; and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property is directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 6. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any 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 7\DEEDRENT\02/10/94/B 4 the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless In writing. B. 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 dme to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the Indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c) join in granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain In full force and effect during any postponement or extension of time of payment of the Indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of Its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals In such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee In such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re-assignment of the rents, issues, royalties and profits assigned to Beneficiary. five (5) years after Issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Agency the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Agency any duty to produce rents from the property affected by this Trust Deed, or cause Agency to be (a) "mortgages In possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this 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. 711)EEDREN7102/10/44/6 5 Agency confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Agency may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents, issues and profits shall not grant to Agency or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Agency or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustor's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, 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 7\DEEDRENT\02/10/94/B 6 do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. It the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for 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 7\DEEDRENT\02/10/94/B 7 Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have been recorded, this power of substitution cannot be exercised until after the costs, fees and expenses of the then acting Trustee shall have been paid to such Trustee, who shall endorse receipt thereof upon such instrument. The procedures herein provided for substitution of Trustee shall not be exclusive of other provisions for substitution provided by law. 18. That this Deed of Trust applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledgee, of the Note secured hereby, whether or not names as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, at Beneficiary's request, monthly, on or before the 15th day of each month, a written operational report. Such operational report shall contain a brief but complete statement of the month's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 20. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable change, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire insurance or other casualty insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding in which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable. 23. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to disclose 7\DEEDRENT\02/10/94/B 8 any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the-maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as In paragraph No. 15 herein set forth. Trustee, upon presentation to It of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, Is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any 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 hereinaeove 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 malled to him at his address hereinbefore set forth. TRUSTEE: TRUSTOR: THE CITY OF HUNTINGTON BEACH By �.�� T S TO Tide: ",f . o._fie s By: BARBARA A. KAISER RAY SHORB By: BENEFICIARY: THE REDEVELOPMENT AGENCY OF i` THE CITY OF HUNTINGTON BEAC `. By: C T1 e: �ceCi�c. �k ► MICHAEL T. UBERUGA APPROVED AS TO FORM: �,4iG �v7'r'ow' Cam;;p'�unsel ail` y 7\0EEDRENTM/10/94lS 9 ►-%`FhALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.5193 State of OPTIONAL SECTION CAPACITY CLAIMED BY SIGNER County of Though statute does not require the Notary to i fill in the data below, doing so may prove 1 ♦� invaluable to persons relying on the document. L On before me, , ❑ INDIVIDUAL DATE ME,TITLE OF OFFICER-E. .,"JANE DOE,NOTI PUBLIC" ~ []CORPORATE OFFICER(S) personally appeared LLLCCC... NAVE(S)OF SIGNER(S) TITLES) personally known to me - OR- ❑W9ued4A-me on the hasjs-o Satisfactory-epjt}gnCe ❑ PARTNER(S) ❑ LIMITED to be the person(s), whose name(s) is/a-Fe-- [] GENERAL subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT knowledged to me that-hee/she/#iey executed ❑TRUSTEE(S) OFRCIAL SEAL the same in h+t /her/-t#etr authorized ❑GUARDIAN/CONSERVATOR JUDY MCHAMS capacityfie�), and that by -I-s/her/their' Notoy F�c-Cauromla si nature on the instrument the erson ❑ OTHER: ORANGE COUNTY 9 ( ) P (a), My c or the entity upon behalf of which the Novembw 3. i person(s}acted, executed the instrument. SIGNER IS REPRESENTING: WITNESS my hand and official seal. NAME OF PERSON(S)OR ENTITY(IES) GNATURE OF NOTARY OPTIONAL SECTION EThoughpthe RTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT CUMENT DESCRIBED AT RIGHT: / NUMBER OF PAGES DATE O DOCUMENT data requested here is not required by law, event fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE ©1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 -GOVERNMENT CODE 27361.7 `I CERTIFY UNDER THE PENALTY OF PERJURYTHATTHE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: NAME OF NOTARY -) t Chi® DATE COMMISSION EXPIRES COUNTY WHERE BOND IS FILED OrAll q f, . PLACE OF EXECUTION LA Y 1' t l f AAA DATE C GJ�J(4_ c7f,A- ORANGE COAST TITLE COMPAN Form No. OCT�Bb CALIlFOnNIA ALL-PURPOSE ACKNOWLEDGMENT No.5193 State of OPTIONAL SECTION CAPACITY CLAIMED BY SIGNER Count of Though statute does not require the Notary to y fill in the data below, doing so may prove invaluable to persons relying on the document. On a8 before me, ❑ INDIVIDUAL DAT N E,TITLE OF OFFICER-E. .,"JA DOE,NO RY PUBLIC" CORPORATE OFFICER(,h,,,`), personally appeared 'NAME(S)OF SIGNER( TITLE(S) personally known to me- OR-❑ p asis-af-sa#is#aGtG"vidence ❑ PARTNER(S) ❑ LIMITED to be the person(s3 whose namets) is/afe- ❑ GENERAL subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT OIL SEA1. knowledged to me that he/sbe/they executed ❑TRUSTEE(S) JURY RK>LAMS the same in his/#�it authorized ❑GUARDIAN/CONSERVATOR No4av FuWC-CCy=ft capacity(ie�o- and that by hisg+ef 4h-ei•r signatures}on the instrument the person(s); ❑OTHER: Novembw3, 19 or the entity upon behalf of which the person(s) acted, executed the instrument. SIGNER IS REPRESENTING: WITNESS my hand and official seal. NAME OF PERSON(S)OR ENTITY(IES) 7/ IGNATURE OF NOTARY OPTIONAL SECTION THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT THE DOCUMENT DESCRIBED AT RIGHT: NUMBER OF PAGES__ DATE O DOCUMENT Though the data requested here is not required by law, it could prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE ©1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 1 c f GOVERNMENT CODE 27361.7 I CERTIFY UNDER THE PENALTY OF PERJURY THATTHE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: NAME OF NOTARY c DATE COMMISSION EXPIRES / 3 —(?57 COUNTY WHERE BOND IS FILED (kAt °/ , PLACE OF EXECUTION �� DATE ft'yk L,_ ' OR GE COAST TITLE C ANY Form No.OCTjBb f i ' STATE OF CALIFORNIA }ss. ' COUNTY OF } m oOn Y before me, / LunI CD CD personally appeared ,�'il P Y PP :7tbw1QS O f D 4'I'1G� e:3hb (or proved m E to me on the basis of satisfactory evidence) to be the person(s)whose name(s)islare subscribed to the within E instrument and acknowledged to me that hefsftftey executed the same in 43i&�their authorized capacity(ies), Ca and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the c7 persons) acted, ex c the instru nt. 6; �' WIVE E. LUNT WITNESS my hand o ' IC�'�' f 9787NOTARY PuBuc.CALIFORNIA Ot f Coun Signature MY COMM. es N 22,1996 . r (This area for official notarial seal) , 1 ' J GOVERNMENT CODE 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT 11 TTACHED REA S AS FOLLOWS: NAME OF THE NOTARY: 4, DATE COMMISSION EXPIRES: COUNTY WHERE BOND IS FILED: COMMISSION NO.: MANUFACTURER/VENDOR NO.: PLACE OF EX TION: DATE SIGNATURE: O ANGE COAST I E kMPANY Form No. OCT-8b EXHIBIT "A" PARCEL 1: Unit No. 7, consisting of certain airspace and surface elements, as shown and described in the Condominium Plan ("Plan") for Brisas Del Mar located on Lot 1 of Tract 14757, as shown on a Subdivision Map recorded on September 1, 1993, in Book 701, Pages 42 through 43, inclusive of Miscellaneous Maps, in the office of the Orange County Recorder ("Official Records") , which Plan was recorded on September 15, 1993, as Instrument No. 93-0621742, of Official Records, California. PARCEL 2: An undivided one forty-fourth (1/44) fee simple interest as a tenant in common in and to Module B shown on the Plan and defined in the Declaration referred to below as the 'Common Area" . EXCEPT TI-iL=RCM all oil, gas, minerals and other hydrocarbon substances lying below a depth of 500 feet without any right to enter upon the surface or the subsurface of said land above a depth of 500 feet, as provided in instruments of record. PARCEL 3 : Nonexclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as may be shown in the Plan, and as are described in the Declaration. PARCEL 4 : Exclusive easements appurtenant to Parcels No. 1 and No. 2 descrrbed above for use for parking purposes described as Exclusive Use Areas in the Declaration, over portions of Lot 1 of Tract 14757 shown and assigned in the Plan. PARCEL 5: An exclusive easement appurtenant to Parcels No. 1 and No. 2 described above, for use for patio, balcony, and fire escape staircase purposes described as Exclusive Use Areas in the Declaration, as applicable, over portions of Lot 1 of Tract 14757 as shown, assigned and descrL ed in the Plan. RIDER TO REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DEED OF TRUS AFFORDABLE HOUSING PROGRAM This rider to the Redevelopment Agency of the City of Huntington Beach Deed of Trust which was executed by THOMAS OTTO/RAY -SHORB.(Trustor for the property located at 409 Utica Avenue, A-7) Is subject to the terms and conditions of that certain Loan Agreement entered into by and between Beneficiary and Trustor dated FEBRUARY 25 , 19 94 , to which this rider is attached as Exhibit "C" and Incorporated by reference (the "Loan Agreement"), pursuant to which 8eneficlary has agreed to loan Trustor the sum of Twenty-Three Thousand and no/100 Dollars ($231000.00) (the "Loan Amount") with simple interest to accrue at five percent (5%) yearly. All terms in this Rider to Redevelopment Agency of the City of Huntington Beach Deed of Trust, if not separately defined herein, shalt have the meanings as defined In the Loan Agreement. 1. Acceleration/Due on Sale. Except as provided herein, the Loan and all Interest accrued thereon shall be due and payable upon (1) sale or transfer to a Buyer not qualified to participate In the Agency's Affordable Housing Loan Program or not approved by the Agency ("Qualified Buyer"), or other disposition of the Property, Including, without limitation, lease, exchange or rent of any part of the Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any authorization period longer than the Loan secured by the First Mortgage, or (iv) Trustor being In material default of any other obligation contained In this Agreement or any provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the Property, or (v) Trustor violates any condition of the Deed of Trust or Promissory Note, or (A) 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 711oandoc1agc Vrrdr/62/22/94 2. OccLmancy 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. Protecdon_of Beneflciary's_Rights in the Propertv. 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 Beneficlary to Trustor requesting payment. 4. Egulty Share, In the event that the Agency Loan becomes due and payable prior to the thirtieth anniversary of the date of the Loan Agreement, Trustor shall pay to Beneficiary concurrent with the principal and accrued interest, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: i . Prior to fifth anniversary fifty percent of the Agency Deed of Trust: (50%) 2 7/1oandoc/jgcyMdr/02/22/94 2. After fifth anniversary but forty-elght percent prior to sixth anniversary: (48%) 3. After sixth anniversary but forty-six percent prior to seventh anniversary: (46%) 4. After seventh anniversary but forty-four percent prior to eighth anniversary: (44%) 5. After eighth anniversary but forty-two percent prior to ninth anniversary: (42%) 6. After ninth anniversary but forty percent (40%) prior to tenth anniversary: 7. After tenth anniversary but thirty-eight percent prior to eleventh anniversary: (38%) 8. After eleventh anniversary but thirty-six percent prior to twelfth anniversary: (36%) 9. After twelfth anniversary but thirty-four percent prior to thirteenth anniversary: (34%) 10. After thirteenth anniversary but thirty-two percent prior to fourteenth anniversary: (32%) 11 . After fourteenth anniversary but thirty percent (30%) prior to fifteenth anniversary: 12. After fifteenth anniversary but twenty-eight percent prior to sixteenth anniversary: (28%) 13. After sixteenth anniversary but twenty-six percent prior to seventeenth anniversary: (26%) 14. After seventeenth anniversary but twenty-four percent prior to eighteenth anniversary: (24%) 3 7AoandOc/agcyrldr/02/22/94 15. After eighteenth anniversary but twenty-two percent prior to nineteenth anniversary: (22%) 16. After nineteenth anniversary but twenty percent (20%) prior to twentieth anniversary: 17. After twentieth anniversary but eighteen percent prior to twenty-first anniversary: (18%) 18. After twenty-first anniversary but sixteen percent (16%) prior to twenty-second anniversary: 19. After twenry-second anniversary but fourteen percent prior to twenty-third anniversary: (14%) 20. After twenty-third anniversary but twelve percent (12%) prior to twenty-fourth anniversary: 21. After twenry-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 (60/5) prior to twenty-seventh anniversary: 24. After twenty-seventh anniversary but four percent (4%) prior to twenty-eighth anniversary: 25. After twenty-eighth anniversary but two percent (2%) prior to twenty-ninth anniversary: 26. After twenty-ninth anniversary but one percent (1%) prior CO thirtieth anniversary: 27. After thirtieth anniversary: zero percent (0%) 4 7/W nd4x/jgMfdr/02/22/94 The "Purchase Price" is the original purchase price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, 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, dde 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. � - PARTICIPANT/TRUSTOR AGENCY 5 7/10]ndoc/aecyridr/02/22/94 The value of all capital improvements to the Property made while Participant owned and occupied the Property shall be deducted from the Sales Price when calculating the Equity Share Amount, if Participant complies with the following: The costs Incurred by the Participant for capital Improvements shall be deducted from the Sales Price only if Participant submits the following to the Agency: (i) an itemized list of the improvements, (11) reliable proof of completion of the improvements (as evidenced e.g., by final building permits or Certificate of completion), and (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. S. New Loan to QUaliflgd Buyer. Notwithstanding the provisions herein above, if the Property Is sold by the Trustor to a Buyer of low or moderate income, as defined by Section 50093 of the Cjllfomla Health and, Safe-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 Califs 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 6 7/1ojndoc/jjcyrfdr/02/22/94 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 Beneficiary may determine and verify the household income of the proposed Buyer to determine Eligible Person or Family status and whether the Property Is available to such Buyer at affordable housing cost. If the Beneficiary is unable to verify the Buyer's income as provided herein, then the Buyer's income shall be deemed to exceed the maximum allowable Income limit for Eligible Persons and Families and the Equity Share Amount shall be due and payable concurrent with the repayment of the Note Amount plus interest. In the event that sale or transfer Is made to an Eligible Person or Family, Interest which has accrued at the time of the sale (upon close of escrow) shall be due and payable. b. Subordination. The Beneficiary has found and declared that an economically feasible method of financing, refinancing or assisting first time homebuyers pursuant to the Program on substantially comparable terms and conditions without subordination is not reasonably available. Any first lien on the Property ("First Lien") held by an Institutional lender or Investor (the "Lender") shall be prior and superior to the Declaration and this Deed of Trust. Thus, in the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions In any other collateral agreement restricting the use of the Property to low or moderate Income households or otherwise restricting the Trustor's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Trustor or a related entity of the 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 tg Rgfrajn frompiscrimination. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, 7 7/foandoc/agcyrldr/02/2 2/94 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 8z Restrictions for Affordable Housing; and 3) the Agency Deed of Trust. The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the First and Second Liens, deeds of trust, or mortgages, requesting a statutory notice of default as set for the in the Callfomia Civil Code. TRUSTOR'S NA RE — OTTO RUSTOR'S SIGNATURE —RAY SHORE CITY OF HP TINGTON BEACH �LINDA MOULTON-PATTERSON Its:MAYUX REDEVELOPMENT AGENCY OF APPROVED AS TO FORM: THE CITY OF HUNTIN�IGT,QO�N BEACH LINDA MOULTON--PATTERSON Agency Counsel ts:ch£F JLZ yo /2,se)lu SON 7AojndochQcyr[dr102/22/94 ,CALIFORNIA ALL-PURPOSE AC OWLEDGMENT No 5193 Now State of OPTIONAL SECTION F. CAPACITY CLAIMED BY SIGNER_ ,1 County of Though statute does not require the Notary to _ fill in the data Wow. doing so may prove -On 3 before m%.' L4 'm invaluable to persons relying on the docuent - DATE A +1 .TITLE OF OFFICER-E G.-JANE DOE.NO RY PUBLIC" ❑ INDIVIDUAL - � > CO`O- TE OFFICER personally appeared NAfIE;S}of sIGNERIst Tr ISI personally known to me-OR -❑ pFaved-to-+Tae-sr3-the-#asrs-of3atis#actory-ev+deAc--- ❑ PARTNER(S) t LJ LIMITED to be the persons} whose name($ is/are I ❑ GENERAL subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT knowledged to me that he/she/they-executed ❑ TRUSTEE(S) OFFICIAL SEAL the same in h+slher/t4e4 authorized ❑GUARDIAN/CONSERVATOR JURY RC>IAROS capacity(Les4- and that by his/her/their .�� Notary rub9C-Cditff40 ❑OTHER: ORANGE CONY Signature(Q on the instrument the personW, Mr ConYI"al alp 11 or the entity upon behalf of which the NOwnbim 3• IM perSonW acted, executed the instrument. SIGNER IS REPRESENTING: WITNESS my hand and official seal_ NAME OF PERSON;s}OR ENTITY;IES) �{ IGNAIURE OF NOTARY 1 OPTIONAL SECTION THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT THE DOCUMENT DESCRIBED AT RIGHT- -. -- NUMBER OF PAGES- DATE OF DOCUMENT Though the data requested here is not required by law. it could prevent fraudulent reattachment of this form SIGNER(S)OTHER THAN NAMED ABOVE s 1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.P O Box 7184•Canoga Park.CA 91309-7184 GOVERNMENT CODE 27361.7 t' 'CERTIFY UNDER THE PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: fi I � � NAME OF NOTARY CI It^� S DATE COMMISSION EXPIRES -3 I COUNTY WHERE BOND IS FILED " PLACE OF EXECUTION DATE II ORANGE COAST TITLE COMLir Form No.OCT•8b y �q®u A �Ap ®B®® p/a 1 CALIFORNIA-ALL-PURPOSE LL-PURPOSE ACi__ iOWLEIDGNIENT No.5193 i State of ® OPTIONAL SECTION p CAPACITY CLAIMED BY SIGNER County of /`' Though statute does not require the Notary to _ fill in the data below, doing so may prove On TT before me invaluable to persons relying on the document. DATE V , ❑N M ,TITLE OF OFFICE -E.G.,"JANE DOE, NOTARY PUBLIC" INDIVIDUAL [personally appeared CORR RATE OFFICER( � ��J�- �I i1_�-�XJ � � NAME(S)OF SIGNER(S) ,1fLE(S) personally known to me- OR-❑ proved4o-me-cart-'t4ie-basis-ef-satisfactery-evidence- ❑ PARTNER(S) ❑ LIMITED to be the person{,$) whose name(s) is/are• ❑ GENERAL subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT knowledged to me that-he/she/they-executed ❑TRUSTEE(S) OFRCIAL SEAL the same in -b+s,/her/th-e-i-F authorized ❑GUARDIAN/CONSERVATOR �.. JUDY MCHAMS M Pubne-Comyrdsa capacity(ies} and that by iris/her/their 02AKW COS signature(s) on the instrument the person(s), ❑OTHER: 9 n es or the entity upon behalf of which the person*acted, executed the instrument. SIGNER IS REPRESENTING: WITNESS my hand and official seal. NAME OF PERSON(S)OR ENTITY(IES) NATURE OF NOTARY OPTIONAL SECTION THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT THE DOCUMENT DESCRIBED AT RIGHT: NUMBER OF PAGES DATE OF 90CUMENT Though the data requested here is not required by law, it could prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE ©1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184-Canoga Park,CA 91309-7184 r )GOVERNMENT CODE 27361.7 1 CERTIFY UNDER THE PENALTY OF PERJURY THATTHE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: NAME OF NOTARY ffd iv S DATE COMMISSION EXPIRES COUNTY WHERE BOND IS FILED Dra a q _ PLACE OF EXECUTION DATE 1 ORANGE COAST TITLE COMPAN Form No.OCT`8b o ' e 1 STATE OF CALIFORNIA }ss 1 i COUNTY OF Z } C —� On 99 before me, U a) personally appeared b ca (or proved Z5 E to me on the basis of satisfactory evidence) to be the person(s)whose name(s)+s/are subscribed to the within N ii instrument and acknowledged to me that hei9he/they executed the same in hrsfhcr/their authorized capacity(ies), CU and that by b+ eMtheir signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s)acted exe the in rument + �` g OFOR DAVE E. LUNT'T r WITNESS my h n Cortn Cn 0 978764NOTARY QURX-CALIFORM�Oraqc County 3) SignatureMY n Expres Nov 22,1996 d (This area for official notarial seal) GOVERNMENT CODE 273617 I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS NAME OF THE NOTARY 1 d G �- DATE COMMISSION EXPIRES COUNTY WHERE BOND IS FILED COMMISSION NO Qq MANUFACTURER/VENDOR NO -PLACE OF EX UTION DATE SIGNATURE ` ORANGE COAST TITLE MPANY Form No GOVERNMENT CODE 27361. 7 I certify under the penalty of perjury that the illegible portion of this document, to which this statement is attached, reads as follows; Thirty- One--- Place of execution SANTA ANA, CA Date'z aC 8ccuac.- OCT-8c Orange Coast Title y Y ;..`..;RECORDING REOUESTED TITLE COBY e,~ ORANGE COAST • # 94-0144304 LA SUBDIVISION DEPt 2�—FEES—1994 03=59 E•M REVORDING REQUESTED BY ) Recorded in Gff=,_iai Reterds AND WHEN RECORDED RETURN TO: } of Cra�iaz Coantr. Caiifcrnia i.ee A. rranch, CcuntX Recorder The City of Huntington Beach } Page 1 of LCl ?AAg: 2000 Main Street ) fa i V.v"v Huntington Beach, California 92648 ) Attn: City Clerk ) [Space Move This Line For Recorder's Ilse.] This document 1s exempt from ` 26 recording fees pursuant to Government Code Section 6103. DEED OF TRUST WIII ASSIGNMENTS OF.RENTS THIS DEED OF TRUST Is made this 25THday of FEB., 1993,4by and among THOMAS OTTO/RAY sHORB ,whose address is409 [ltica Ave. A-7 , (the "Trustor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "Trustee") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNESSETH: That Trustor Irrevocably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a) ail buildings, Improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, Issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of 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: Thirty- I. Payment of the sum ofEight Thousand Eight I[undred0h0! -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 ADEEDRENll02/101941E i evidenced by another Promissory Note or Notes, or (b) as may be added to the indebtedness secured hereby In accordance with the provision of this Deed of Trust 3. Performance of each and every obligation, covenant, promise or agreement of Trustor contained herein In the Loan Agreement between Beneficiary and Trustor dated FEBRUARY 25TH 199S4and in that certain Affordable Housing Agreement currently recorded on the property, Insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with Interest thereon, future indebtedness or obligation of the Trustor (or of any successor-in-interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES- 1. To keep said property in good condition and repair; to allow Beneficiary or Its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change In the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry-rot; to pay when due all claims for labor performed and materials furnished In connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, Irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; (a) to complete the same In accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (f) not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials ADEEDRENT\02/10/94/B 2 furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring Insurance shall be delivered to Beneficiary together with written evidence showing payment of the premium therefor and, in the event any such insurance policy and evidence of the payment of the premium therefor are not so delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain such insurance through or from any insurance agency or company acceptable to It, pay the premium thereof, and may add the amount thereof to the indebtedness secured hereby, which amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or company, or any other person, any information contained in or extracted from any insurance policy delivered to Beneficiary pursuant hereto and any Information concerning the loan secured hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter. In case of insurance loss, Beneficiary is hereby authorized either (a) to settle and adjust any claim under the insurance policies provided for in this document without the consent of the Trustor, or (b) to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings or improvements under the terms of any lease or leases which are or may be prior to the lien of this Deed of Trust and such damage or destruction does not result in cancellation or termination of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such Insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act 7\DEEDRENT\02/10/94/B 3 required of the Lessee or its successor In interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor In Interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the Issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax In the manner required by such law. Should Trustor fall to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make.such payment and any amount so paid may be added by Beneficiary to the Indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same In such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear In, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the Judgment of either Is or appears to be prior or superior hereto, and (d) In exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of Interest. 5. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee In such property 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. G. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any parry thereof, or any interest therein, or be divested of his title or any Interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of 7%DEEDRENTIO?1 i 019418 4 the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or In construction with the transaction financed by such loan, and any award of damages In connection with any condemnation for public use of or injury to said property, or any part thereof, Is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by It in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after Its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Benefidary to the Indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c) join In granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof. 1 1 1. That the lien hereof shall remain In full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of Its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re-assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Agency the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Agency any duty to produce rents from the property affected by this Trust Deed, or cause Agency to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. 7\DEEDRENT102/f 0/94B 5 r Agency confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Agency may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents, issues and profits shall not grant to Agency or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall Impose upon Agency or Trustee the duty to produce rents, Issues or profits or maintain all or any part of the property affected by this Trust Deed. if Trustor shall default as aforesaid, Truster's right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, Issues, royalties and profits and shall be authorized to, and may, without notice and Irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the Indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to 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 71DEEDRENTl02/10/94/B 6 do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that Is security for this Deed of Trust, in the event of a violation of any of the covenants set forth In this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby Immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. 1t the security for this Deed of Trust Is a leasehold estate, the terns "property" as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or In performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which Is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and In such order as It may determine, at public auction to the highest bidder for case in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the came 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 /1DEEDRENT'W2/10/94/$ 7 Trustee predecessor, succeed to all Its tide, 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 1s 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 1 Sth day of each month, a written operational report. Such operational report shall contain a brief but complete statement of the month's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property or business carried on therein for such period. 20. That in the event of a demand for, and the preparation and delivery of a written statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and 2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable change, not exceeding the maximum amount which is permitted by law at the time the statement is furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered to Trustor or rendered in Trustor's behalf In connection with said property of this Deed of Trust, including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured hereby in connection with the transfer of said property, or releasing an existing policy of fire Insurance or other casualty Insurance held by Beneficiary and replacing the same with another such policy. 21. That Trustee accepts this Trust when this Deed of Trust, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed of Trust or of any action or proceeding In which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee. 22. That should this Deed of Trust or any Note secured hereby provide any fee for prepayment of any Indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured hereby immediately due and payable. 23. That Trustor has made certain representations and disclosures in order to induce Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to disclose 71DEEDRENT\02/10/94/8 8 any material fact, Beneficiary at its option and widlout 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 hereinbefore set forth. TRUSTEE: TRUSTOR: REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH By_= THOMAS OTTO Tltie: F,unvc ZieLTlm BY: MICHAEL T. UBERUAGA RAY SHORB By: BENEFICIARY: THE CITY OF HUNTINGTON BEACH By: �,. .� Tide: -t):v. BARBARA A. KAISER APPROVED AS TO FORM: Agency unsel ! ec- 7 DFEDREN1107/10194/B 9 CALU FORMA ALL-PURPOSE ACKNOWLEDGMENT No.5193 ( $ State o > � ®OPTIONAL SECTION 00010 CAPACITY CLAIMED BY SIGNER County of Though statute does not require the Notary to fill in the data below, doing so may prove invaluable to persons relying on the document. On , a3 9 before m �� INDIVIDUAL DATE N ME,TITLE OF OFFICER-E.G. 'JANE DOE,NOTA PLI LIC" ®Cl RPORATE OFFICERS). personally appeared NAME(S)OF SIGNER(S) TITLE(S) personally known to me - OR- ❑ "Le -oj-satisfactor-y-evidence ❑ PARTNER(S) ❑ LIMITED to be the persons}-whose nameFs} is/a'r-e- [:] GENERAL subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT knowledged to me that he/sl4e4l feq executed ❑TRUSTEE(S) 0 S� the same In hls14;,&T4t#e•f•F authorized ❑GUARDIAN/CONSERVATOR JUDV M capacity(+ems}, and that by hiss-h'etJtf�•e� a � , ❑OTHER: signature(s) on the instrument the personM, NV 1 Gq or the entity upon behalf of which the person('s�acted, executed the instrument. SIGNER IS REPRESENTING: WITNESS my hand and Official seal. NAME OF PERSON(S)OR ENTITY(IES) 3 f � f NATURE OF NOTARY OPTIONAL SECTION LThough,the ERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT ?0 OCUMENT DESCRIBED AT RIGHT: 9 NUMBER OF PAGES / DATE OF-DOCUMENT data requested here is not required by law, revent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE MM MR ©1993 NATIONAL NOTARY ASSOCIATION-8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 GOVERNMENT CODE 27361.7 1`CERTIFY UNDER THE PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUME1NT O WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: NAME OF NOTARY PG ChAr,� S DATE COMMISSION EXPIRES `� "3 COUNTY WHERE BOND IS FILED PLACE OF EXECUTION L 4 DATE �� C ORANGE COAST TITLE COMP Form No.OCT-8b CALUv'ORNIA ALL-PURPOSE ACKNOWLEDGMENT No.5193 State of LGcLJ OPTIONAL SECTION CAPACITY CLAIMED BY SIGNER � County of Though statute does not require the Notary to fill in the data below, doing so may prove On before me invaluable to persons relying on the document. ,DATE NAM ITLE OF OFFICER-E.G.,"JANt DOE, OTARY P IC" ❑ INDIVIDUAL J, Z��/ I ❑ CORPORATE OFFICER(S) personally appeared NAME(S)OF SI,6NER(S) TITLE(S) ,personally known to me-OR -❑ Proved-to-rrre-erg-tie-basis-of-satisf-ac-ter-y-eviden• ❑ PARTNER(S) [:] LIMITED to be the person-(&) whose name( is/afe- ❑ GENERAL subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT knowledged to me that�I4eFshe/" executed ❑TRUSTEE(S) ,� OFFICIAL SEAL the same in -h4her/t#ei-r authorized JUOY RICHAr ❑ GUARDIAN/CONSERVATOR Notary Fvbuc-CauforN® capacity'fi #, and that by-b+s-/her/th-64 si nature on the instrument the erson ❑OTHER: ORANGE COUMY 9 p (s�, MV 6 d@n U or the entity upon behalf of which the �^ U person(r-acted, executed the instrument. SIGNER IS REPRESENTING: WITNESS my hand and official seal. NAME OF PERSON(S)OR ENTITY(IES) / SI ATURE OF NOTARY OPTIONAL SECTION, .: THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT �j THE DOCUMENT DESCRIBED AT RIGHT: NUMBER OF PAGES_ DATE F DOCUMENT �Though the data requested here is not required by law, uld prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE ©1993 NATIONAL NOTARY ASSOCIATION-8236 Remmet Ave.,P.O.Box 7184-Canoga Park,CA 91309-7184 ;GOVERNMENT CODE 27361.7 i -I CERTIFY UNDER THE PENALTY OF PERJURY THATTHE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT ISATTACHED READS AS FOLLOWS: NAME OF NOTARY c9 4 r �. DATE COMMISSION EXPIRES COUNTY WHERE BOND IS FILED PLACE OF EXECUTION A DATE -44 rv, C',-I "ORANGE COAST TITLE COMP&W Farm No.OCT 8b I STATE OF CALIFORNIA,i��^^ o t }ss. ' COUNTY OF , ' -� m =-f GG,,�� v E On //Cn/ ore me, 0 U ID personally appeared me (or proved E to me on the basis of satisfactory evidence)to be the person(s)whose name(sHs/are subscribed to the within a i-65� instrument and acknowledged to me that he/spef#iey executed the same in44&A-er/their authorized capacity(ies), and that by WsAter/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, xe ed the instrument. 7 °" �p K WIVE E. LUK °' ( WITNESS my han nd Coma.#978764 � i }; (VOTARY f'U6L{C-CAtlFORPAA Orange County $� Signature 'Comm.Expires Nov.22,19% "d (This area for official notarial seal GOVERNMENT CODE 27361.7 I I I CERTIFY UNDER THE PENALTY OF PERJURYTHAT THE NOTARY SEAL ON THE DOCUMENTI TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: NAME OF NOTARY DATE COMMISSION EXPIRES COUNTY WHERE BOND IS FILED 6 e PLACE OF EXECUTION L ( yr � DATE • r ra)-ac'.- C;RANGE COAST TITLE COMFWW Form No.OCTj8b EXHIBIT "A" PARCEL, 1': Unit No. 7, consisting of certain airspace and surface elements, as shown and described in the Condcmixium Plan ("Plan") for Brisas Del Mar located on Lot 1 of Tract 14757, as shown on a Subdivision Map recorded on September 1, 1993, in Book 701, Pages 42 through 43, inclusive of Miscellaneous Maps, in the office of the Orange County Recorder ("Official Records") , which Plan was recorded on September 15, 1993, as Instrument No. 93-0621742, of Official Records, California. PARCEL, 2: An undivided one forty-fourth (1/44) fee simple interest as a tenant in comxan in and to Module B shown on the Plan and defined in the Declaration referred to below as the "Common Area" . EX= THEREFROM all oil, gas, minerals and other hydrocarbon substances lying below a depth of 500 feet without any right to enter upon the surface or the subsurface of said land above a depth of 500 feet, as provided in instruments of record. PARCEL 3: Nonexclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as may be shown in the Plan, and as are described in the Declaration. PARCEL 4: Exclusive easements appurtenant to Parcels No. 1 and No. 2 described above for use for parking purposes described as Exclusive Use Areas in the Declaration, over portions of Lot 1 of Tract 14757 shown and assigned in the Plan. PARCEL 5: An exclusive easement appurtenant to Parcels No. 1 and No. 2 described above, for use for patio, balcony, and fire escape staircase purposes described as Exclusive Use Areas in the Declaration, as applicable, over portions of Lot 1 of 'Tract 14757 as shown, assigned and described in the Plan. a RIDER TO CITY OF HUNTINGTON BEACH DEED QF IRUST AFFORDABLE HOUSING PROGRAM This rider to the City of Huntington Beach Deed of Trust which was executed by THOMAS OTTO/RAY SHORB (Trustor for the property located at 409 Utica Avenue, A-7) is subject to the terms and conditions of that certain Loan Agreement entered into by and between Beneficiary and Trustor dated FEBRUARY 25TH , 19 94 , to which this rider is attached as Exhibit "C" and incorporated by reference (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Eight Thousand Eight Hundred and Thirty-One Dollars ($8,831.00) (the "Loan Amount") with simple Interest to accrue at five percent (5%) yearly. All terms In this Rider to City of Huntington Beach Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. I. Accelera[ion/Due on Sale. Except as provided herein, the Loan and all interest accrued thereon shall be due and payable upon (i) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any authorization period longer than the loan secured by the First Mortgage, or (Iv) 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 City may, in Its sole discretion, extend the term of the Loan. 2. Occupancy Standards. The Property shall be used as the personal residence of Trustor and Trus[or's immediate family and for no other purpose. Trustor shall not enter into an agreement for the rental or lease of the Property. 1 Viomdockityridr/02/2 2/94 3. Protection of Beneficiary's Rights in the Propel. 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. Subordination. The Beneficiary has found and declared that an economically feasible method of financing, refinancing or assisting first time homebuyers pursuant to the Program on substantially comparable terms and conditions without subordination is not reasonably available. Any first lien on the Property ("First Lien") held by an institutional lender or investor (the "Lender") or second lien held by the Redevelopment Agency of the City of Huntington Beach, as may be evidenced by a Deed of Trust recorded on the Property, shall be prior and superior to the Declaration and this Deed of Trust. In the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the Trustor's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Trustor or a related entity of the Trustor), receiving 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. 2 7/loa ndoc/ci ryridr/02/22/94 5. 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 acquisldon 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: I) the First Lien; 2) the Declaration of Covenants, Condidons 8�[ Restrictions for Affordable Housing; 3) the Redevelopment Agency Deed of Trust; and 4) the City Trust Deed. The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the First Lien deed of trust or mortgage requesting a statutory nodce of default as set for the In the California Civil Code. 1 TRUSTOR' SI Tl.1R MAS OTTO T USTO 'S - RAY SHORB REDEVELOPMENT AGENCY OF CITY OF HUNTINGTON BEACH HE TY OF HUNTINGTON BEACH Chairman LINDA MOULTON-PATTERSON Mayor r APPROVED AS TO M: �r4i 4.)TfvN City Attorney 3 ` 7lfoandoc/dryridr102122/94 v nnnn 2 n�2�n OGa3`KOZ% lQldd�pMG3POO�C LaG IO VV LS LSD�11�711 LSW� No.5193 1 _ State of OPTIONAL SECTION p' CAPACITY CLAIMED BY SIGNER County of 1 141 /f/� Though statute does not require the Notary to fill in the data below, doing so may prove Invaluable to persons relying on the document. i On a before me, INDIVIDUAL DATE NAM ITLE OF OFFICER-E.G.,-JANE DOE,NOTARY PUBL ff rPf CORPORATE OFFICER(aY personally appeared NAME(S)OF SIGNER( ) �'yy/Q�/Xi1J GTITLE(S) personally known to me-OR - ❑ prevQd to me-nn_the-basis-of-sat+sfaetor-y-evidene ❑ PARTNER(S) ❑ LIMITED to be the person(sr} whose name() is/afa ❑ GENERAL subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT knowledged to me that he/she/they executed ❑TRUSTEE(S) OFFK>AL SEAL the same in .4s/her/t°Iie authorized ❑ GUARDIAN/CONSERVATOR JUDY A >LAQDS capacity(4es), and that by #is/her4l+ei•r Nop� PQ9c-C�rHo signature( on the instrument the erson ❑OTHER: ORANGE CO�ttTV �} person*, MV CVWdCC5= waa or the entity upon behalf of which the NoVeNibu S• 9995 person(s) acted, executed the instrument. SIGNER IS REPRESENTING: WITNESS my hand and official seal. NAME OF PERSON(S)OR ENTITY(IES) NATURE OF NOTARY OPTIONAL SECTION THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT rz':� / THE DOCUMENT DESCRIBED AT RIGHT: NUMBER OF PAGES�� DATE O OCUMENT Though the data requested here is not required by law, it could prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE ©1993 NATIONAL NOTARY ASSOCIATION-8236 Remmet Ave.,P.O.Box 7184-Canoga Park,CA 91309-7184 GOVERNMENT CODE 27361.7 I I`CERTIFY UNDER THE PENALTY OF PERJURYTHATTHE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: NAME OF NOTARY _I�AcA!t; (iZ DATE COMMISSION EXPIRES / L3 COUNTY WHERE BOND IS FILED l AVIC4 �— PLACE OF EXECUTION LAI � L-1�a� DATE al<� 10RANGE COAST TITLE COMPANY U Form No.OCT-8b CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No.s193 OPTIONAL SECTION State of CAPACITY CLAIMED BY SIGNER County of Though statute does not require the Notary to } _ fill in the data below, doing so may prove t { invaluable to persons relying on the document. On before me, ❑ INDIVIDUAL +l DATE N E,TITLE OF OFFICER-E. .,"JANE D�NOT PUBLIC" COR 0 ATE OFFICER(€G , personally appeared NAME(S)OF SIGNER(S) TITLE(S) / ,{ ]personally known to me-OR -❑ ppGved4&rye-on4he-basis-of-satisfac-ter-y-eviderrce- ❑ PARTNER(S) ❑ LIMITED to be the person(-s)-whose name( is/a-Fe- ❑ GENERAL subscribed to the within instrument and ac- ❑ATTORNEY-IN-FACT knowledged to me that-he/she/#"executed ❑TRUSTEE(S) L the same in Sher/t-h-e'i•r authorized ❑GUARDIAN/CONSERVATOR JiM RKXAM capacity(4es3, and that by4h+s4her/-t#ej'r_ NOW� � signature¢*on the instrument the person(s), OTHER: or the entity upon behalf of which the XwQT&W a° U person*acted, executed the instrument. SIGNER IS REPRESENTING: WITNESS my hand and official seal. NAME OF PERSON(S)OR ENTITY(IES) NATURE OF NOTARY OPTIONAL SECTION �/l // THIS CERTIFICATE MUST BE ATTACHED TO TITLE OR TYPE OF DOCUMENT Z&_&�lr� THE DOCUMENT DESCRIBED AT RIGHT: NUMBER OF PAGES� DATE OF DOCUMENT Though the data requested here is not required by law, it could prevent fraudulent reattachment of this form. SIGNER(S)OTHER THAN NAMED ABOVE ©1993 NATIONAL NOTARY ASSOCIATION•8236 Remmet Ave.,P.O.Box 7184•Canoga Park,CA 91309-7184 --,GOVERNMENT CODE 27361.7 1 CERTIFY UNDER THE PENALTY OF PERJURYTHATTHE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: NAME OF NOTARY `AA R . Cka "4 S DATE COMMISSION EXPIRES -9'qS COUNTY WHERE BOND IS FILED VfA-y-I Q, PLACE OF EXECUTION CAA i lr AclAr DATE cS IGL-s IC4 1 I = I ORANGE COAST TITLE d0_5MPAN`4 U Form No.OCT 8b i STATE OF CALIFORNIA }ss. COUNTY OF } C C On / fore me,CU Luhfi 0 U personally appeared S F- 0 au„�^^.I + ^,o ror proved 0 r E to me on the basis of satisfactory evidence)to be the person(s)whose name(s)aslare subscribed to the within LL instrument and acknowledged to me that hefspekhey executed the same in hir µ- /their authorized capacity(ies), m 4) and that by hftheir signature(s) on the instrument the person(s) or the entity upon behalf of which the a� C7 person(s) acted, )ed e instrument. WIVE E. LUNT TComm.#978764 WITNESS my hai I a NOTARY PUBLIC-CALIFORNIA co Orange Cou it � Signature q /FOP �Y�^�' Expires Nov.22,1996 AJIV (This area for official notarial seal) L I GOVERNMENT CODE 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOWS: NAME OF THE NOTARY: L . Lun DATE COMMISSION EXPIRES: IO -e—Z COUNTY WHERE BOND IS FILED: Or, �- COMMISSION NO.: q-7 3 MANUFACTURER/VENDOR NO.: bj k I PLACE OF EXEC SON: Lai DATE: SIGNATURE: 1 ORANGE COAST TITLE WMPANY Form No. OCT-8b II TRIM Title FaIME717 Insurance Company OR 30-030406 ALTA RESIDENTIAL TITLE INSURANCE POLICY One-To-Four Family Residences OWNER'S INFORMATION SHEET Your Title Insurance Policy is a legal contract between you and the Company. It applies only to a one-to-four family residential lot or a condominium unit.If your land is not either of these,contact us im- mediately. The Policy insures you against certain risks to your land title.These risks are listed on page one of the Policy. The Policy is limited by: • Exclusions on page 2 • Exceptions in Schedule B • Conditions on pages 2 and 3 You should keep the Policy even if you transfer the title to your land. If you want to make a claim, see Item 3 under Conditions on page 2. You do not owe any more premiums for the Policy. This sheet is not your insurance Policy.It is only a brief outline of some of the important Policy features.The Policy explains in detail your rights and obligations and our rights and obligations.Since the Policy—and not this sheet—is the legal document, YOU SHOULD READ THE POLICY VERY CAREFULLY. If you have any questions about your Policy,contact: TRW Title Insurance Company 6800 College Blvd.,Suite 200 Overland Park, Kansas 66211 TABLE OF CONTENTS PAGE SCHEDULE B—EXCEPTIONS INSERT OWNER'S COVERAGE STATEMENT 1 EXCLUSIONS 2 COVERED TITLE RISKS 1 CONDITIONS COMPANY'S DUTY TO DEFEND 1. Definitions 2 2. Continuation of Coverage 2 AGAINST COURT CASES 1 3. How to Make A Claim 2 SCHEDULE A INSERT 4. Our Choices When You Notify Us of a Claim 3 Policy Number, Date and Amount 5. Handling a Claim or Court Case 3 1. Name of Insured 6. Limitation of the Company's Liability 3 2. Interest in Land Covered 7. Transfer of Your Rights 3 3. Description of the Land 8. Arbitration 3 9. Our Liability is Limited to this Policy 3 ALTA Residential Title Insurance Policy(6-1-87) 290 Page I TRW Title Insurance Company RESIDENTIAL TITLE INSURANCE One-To-Four Family Residences OWNER'S COVERAGE STATEMENT Thr%Polio. in%ures your[tile to the land descrihed to Schedule A -if that land r%a one-to-flour I;unil.rc%idettlial lot or condo- rninturn unit lriwr insurance, as dc%crrbcd in this Covcraec Statement- 1%cffective on the PobL-.- Date%ho.%n in Schedule A. Hour insurance i%limited by the following- • Lxclu%ions on page' - • Exceptions in Schedule f3 • Conditions on page%2 and 3 We-insure you against actual loss resulting from: • any [isle risks covered by this Policy--up to [lie Policy A41O[Int and • any cost%. atfrune.s' ii:es arad ctpenx% %%e hayc to pay under this Policy COVERED TITLE RISKS This Policy co%ers the following title risks, it they affect 9- Other%ha.cright%arising out oflea5e%,contracts_or Four title on the Policy [Date opt10nS- 1. 5orrteorzc else o.%n%an intcreir in your title- 10- Someone else ha.an casccrrerrt on %our land- _'- A document is nor properly signed, waled, ackno1%- 11" Your titicisunmarkerable,skhrchallot;sanotherper- ]edged, or dehyered. Son to refuse to perform a contract to purchase, to 3- Foreerv, fraud, duress, incompelenc-A, incapacity or lease or to make a mortgage loan- imper%onanon. 12. You are forced to remo\e your existing %truc1ure-- 4. IDefecti%e recording of am. document_ other than a boundar..Sall or fence—because: 5- You do not have an,, legal right of access to and from • it extend% on to adjoining land or on to any the land- easement 6- .Fhere are restrictme co%enam%limaing your use of the • it .iolates a restriction%how n in Schedule fi Land- • it %iolates an existing Tuning la%% ?. There rs a lien an your ride bccau%e of: 13 1bu cammor use the land because use as a%ingle-farnih • a mortgage or deed of trust residence%iolate%a restriction shown in Schedule i3 • a judgment, tax, or special assessment or an existing nmtng]asy • a charge by a homco%%ner's or condominium P. Other defects, liens, or encumbrance- .,-association S- There arc liens on your title, arising now or later, for labor and material furnished before the Pohcw Date.- unle%s you agreed to pay For the labor and material COMPANY'S DUTY TO DEFEND AGAINST COURT CASES We%yell detend yrnu title in any court case as to that part of the caw that is based on a Covered Title Risk insured against by' this Policy_ We+%ill pay the costs. attorne.%' fees, and expen%e%we incur in that defen,e Me can end this duty to defend wur title by exercising any of our options listed in Item 4 of the Conditions_ Thi<policy i,not complete without Schedule• A and F3- TRW TITLE INSURANCE COMPANY RESIDENTIAL TITLE INSURANCE POLICY SCHEDULE A POLICY NUMBER: OR 30-030486 ORDER NO. 216707-3 POLICY DATE: FEBRUARY 28, 1994 AT: 3:59 P.M. POLICY AMOUNT: $108,000.00 POLICY PREMIUM: $421.58 1. NAME OF INSURED: T7-OMAS E. O TO 11, A SINGLE MAN AND RAY V INCC NT SHORB, A SINGLE MAN AS TENANTS S IN COMMON 2. YOUR- ' IN THE LAND COVERED BY 'THIS POLICY IS: A FEE. 3. THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FLOLL04S: PARCEL l: UNIT NO. 7, CONSISTING OF CERTAIN AIRSPACE AND SURFACE E OvEWS, AS SHOWN AND DESCRIBED IN THE COMCMINIUM PLAN ("PLAN") FOR BRISAS DEL MAR LOCATED ON LOT 1 OF TRACT 14757, AS SHOWN ON A SUBDIVISION MAP RECORDED ON SEPTEMBER 1, 1993, IN BOOK 701, PACES 42 UMOUGF3 43, INCLUSIVE OF MISCELLANDOUS MAPS, IN THE OFFICE OF THE ORANGE COUNTY RECORDER ("OFFICIAL RECORDS") , WHICli PLAN WAS RECORDED ON SEPTEp'BER 15, 1993, AS INSTRUMENT NO. 93-0621742, OF OFFICIAL RECORDS, CALIFORNIA. PARCEL, 2: AN UNDIVIDED ONE FORTY-FOURTH (1/44) FEE SIMPLE INTEREST AS A TUP TT IN CCnUN IN AND 'M MODULE B SclrUqN CST THE PLAN AMID DEF IAA IN THE DECLARATION REFERRED TU BELOW AS THE "COMMON AREA". EXCEPT THEREFROM ALL OIL, GAS, MINERALS AND anE R HYDROCP,RBON SUBSTANCES LYING BELOW A DEPTH OF 500 FEET WITHOUT ANY RIG14T TO ENTER UPON THE SURFACE OR 'THE SUBSURFACE OF SAID LAND ABOVE A DEPTH OF 500 FEET, AS PROVIDED IN INSTRUMENTS OF RECORD. PARCH 3: NONE{=IVE EASQMENTS FOR ACCESS, IN(�, EMESS, USE, ENJOYMENT, DRAINAGE, EVOMC WENT, SUPPORT, MA HNANCE, REPAIRS AND FOR OTHER PL rRPOS£S, ALL AS MAY BE SHOWN IN THE PLAN, AND AS ARE DESCRIBED IN THE DECLARATION. (LPL DESCRIPTZCN CHITIN ED) CIMM NO. : 216707-3 PAGE ICU.- : 2 * • IMAL DESCRIPTION (C1NI'IILIED) PARCEL 4: EXCLUSIVE EASEMEWS APPURTENANT TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE FOR USE FOR PARKING PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECLARATION, OVER PORTIONS OF LOT 1 OF TRACT 14757 SHOWN AND ASSICNED IN THE PLAN. PARCEL 5: AN EXCLUSIVE EASE-= APFLWE A TI' TO PARCELS NO. 1 AND NO. 2 DESCRIBED ABOVE, FOR USE FOR PATIO, BALOONY, AND FIRE ESCAPE STAIRCASE PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECLARATION, AS APPLICABLE, OVER PORTIONS OF LOT 1 OF TRACT 14757 AS SHOWN, ASSIGNED AND DESCRIBED IN THE PLAN. Oft NO. : 216707-3 i AL'IA RESIDE3NTIAAllIrLE INSURANCE POLICY PNSE NO. : 3 TRW TITLE INSURANCE COMPANY RESIDENTIAL TITLE INSURANCE POLICY SCHEDULE B EXCEPTIONS PART I IN ADDITION TO THE EXCLUSIONS, YOU ARE NOT INSURED AGAINST LOSS, COST, ATTORNEYS- FEES, AND EXPENSES RESULTING FROM: 1. RIGHTS OR CLAIMS OF PARTIES IN POSSESSION NOT SHCWN BY THE PUBLIC RECORDS. 2. ENCROACHMENTS, OVERLAPS, BOUNDARY LINE DISPUTES, AND ANY OTHER MATTERS WHICH WOULD BE DISCLOSED BY AN ACCURATE SURVEY AND INSPECTION OF THE PREMISES. 3. EASEMENTS OR CLAIMS OF EASEMENTS Naf SHOWN BY THE PUBLIC RECORDS. 4. ANY LIEN OR RIGHT 'M A LINE, FOR SERVI CFS, LABOR OR MATERIAL HERETOFORE OR HEREAFTER FURNISHED, IMPOSED BY LAW AND NOT SHOWN BY THE PUBLIC RECORDS. 5. TAXES OR ASSESSMENTS WH I C-I ARE NC7T SHOWN AS EX I STING LIENS BY THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORD. PROCEEDINGS BY A PUBLIC AGENCY WHICH MAY RESULT IN TAXES OR ASSESSMENT , OR NOTICE OF SUCH PRCCEEDINGS, WHETHER OR NOT SHOWN BY THE RECORDS OF SUCH AGENCY OR THE PUBLIC RECORD. ORDER NA. : 21.6707-3 PACE NA. : 4 EXCEPTIONLS PART II : A. THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO CHi%PTER 3.5 COMMENCING WITH SECTION 75 OF THE CALIFORNIA REVENUE AND TAXATION CODE. 1. THE EFFECT OF A COMMUNITY OIL AND GAS LEASE EXECUTED BY UJUI S BENSON AND ELOISE B. BENSON, HIS WIFE AND BY MTIER PERSONS AS TO OTHER LAND, AS LESSORS, AND BY COUMIA LEASING AND DEVELOPING COMPANY, A CORPORATION, AS LESSEE, RECORDED NOVEMBER 6, 1920 IN BOOK 16, PAGE 198 AND RE-RECORDED AL= 11, 1921 IN BOOK 25, PAGE 247 OF LEASES, BOTH OF LEASES, TO WHICH RECORD REFIRENCE IS MADE FOR FULL PARTICULARS. 2. AN EASEMENT FOR PIPE LINES AND INCIDENTAL PURPOSES, AS GRANTED TO HUNTI11J= BEACH COMPANY IN THE DEED RECORDED IN BOOK 319, PAGE 149 OF DEEDS, OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. 3. COVE1,1ANIS, CONDITIONS AND RESTRICTIONS IN AN INSTRUMENT RECORDED IN BOOK 319, PAGE 149 OF DEEDS, OF OFFICIAL RECORDS. THE PROVISIONS, IF ANY, OF SAID INSTRU4NT WHICH PROVIDE RESTRICTIONS BASED ON RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELETED. 4 . AN EASEMENT FOR PIPE, POLE LINKS AND INCIDENTAL PURPOSES, AS GRANTED TO PETROLEUM MIDWAY COMPANY, LTD. , IN THE DEED RECORDED IN BOOK 578, PAGE 269 OF DEEDS, OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. 5. AN EASEMENT FOR PIPE LINE AND INCIDENTAL PURPOSES, AS GRANTED TO STANDARD OIL COMPANY OF CALIFORNIA IN THE DEED RECORDED IN BOOK 865, PAGE 15 OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. 6. AN EASEMENT FOR PIPE LINES AND INCIDENTAL PURPOSES, AS GRANTED TO SI'ANDARD OIL COMPANY OF CALIFORNIA AND STANDARD GASOLINE COMPANY, IN THE DEED RECORDED IN BOOK 3577, PAGE 119 OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. 7. AN EASEMENT FOR PIPE LINES AND INCIDENTAL PURPOSES, AS GRANTED TO THE TEXAS COMPANY, A CORPORATION, IN THE DEED RECORDED IN BOOK 3660, PAGE 257 OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. 8. AN EASEMENT FOR PUBLIC UTILITIES AND INCIDENTAL PURPOSES, AS GRANTED TO THE GENERAL TELEPHONE COMPANY OF CALIFORNIA, A CORPORATION, IN DEED RECORDED AS INSTRUMENT NO. 87-440298 OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID INSTRUMENT. SAID DES PROVIDES THAT NO BUILDING OR STRUCTURE SHALL BE PLACID OR VAINT'AINED ON SAID EASEMENT. 9. THE TERMS, PROVISIONS AND CONDITIONS CONTAINED IN A DOCUMENT ENTITLED "AFFORD HOUSING RESTRICTION AND COVENANT", EXECUTED BY AND BETWEEN BEACIIFRONT LANE STREET PROPERTIES AND THE CITY OF HUNTIIVGION BEACH, RECORDED SEPTDMBER 2, 1987 AS INSTRUMENT NO. 87-500026 OF OFFICIAL RECORDS. Cla)W ND- : 216707-3 i PACE ND. . 5 10. AN EASEMENT FOR PUBLIC UTILITIES AMID INCIDENTAL PURPOSES, AS GRANTED TO 90UTiiERN CALIFORNIA EDISON COMPANY, A CYORPORATION, IN DEED RECORDED AS INSTRUMENT NO. 87-534842 OF OFFICIAL RECORDS, ALONG THAT PORTION OF SAID LAND AS MORE PARTICULARLY DESCRIBED IN SAID I�IS'IRLN�TT. 11. AN EASEMENT FOR WATER MAIN AND INCIDENTAL PURPOSES, AS CRANI'ED TO THE CITY OF HUNTING'ION BEACH, A MUNICIPAL CORPORATION IN THE DEED RECORDED AS INSTRUMENT NO. 87-583411 OF OFFICIAL RECORDS, ALOW THAT PORTION OF SAID LAND AS •MORE PARTICULARLY DESCR I BID IN SAID INSTRLNlENTT. 12. THE EFFECT OF A SUBSURFACE OIL AND GAS LEASE, EXECUTED BY GILBERT M. WILSON AND ELEANOR E. WILSON, HUSBAND AND WIFE, AS LESSOR, AND ANGUS PETROLEUM CORPORATION, A DELAWARE CORPORATION, AS LESSEE, RECORDED APRIL 18, 1989 AS INSTRUMENT NO. 8 9-2 018 4 8 OF OFFICIAL RECORDS, COVER INC THE LAND LYING BELOW A DEPTH OF FIVE HUNDRED (500) FEET FROM THE SURFACE THEREOF, WITHOUT THE RIGHT OF SURFACE ENTRY.ABOVE SAID DEPTH, FOR THE PERIOD AND UPON THE TERMS, COVENWTS AND CONDITIONS THEREIN PROVIDED, REFERENCE BEING MADE TO THE RECORD TfT M?MF FOR FULL PARTICULARS. 13. THE TERMS, PROVISIONS AND CONIDITIONS C=AI NED IN A DOCUMWr ENTITLED "DECLARATION OF RESTRICTIONS AND SUBDIVISION CONSENTS", KKEL ED BY DELAWARE II, A CALIFORNIA LIMITED PARTNERSHIP, RECORDED APRIL 6, 1993 AS INSIRCI+ENT' NO. 93-0230267 OF OFFICIAL RECORDS. 14. THE FACT THAT THE OWNERS OF SAID LAND HAVE NO RIGHT OF VEHICULAR ACCESS TO DELAWARE STREET, UTICA AVENUE AND CALIFORNIA STREET, EXCEPT AT SPECIFIED POINTS, SAID RIGHTS HAVING BEEN RELINQUISHED BY DEDICATION PROVISIONS ON THE MAP OF SAID TRACT. 15. AN INSTRUvlENN ENTITLED "CON)CMINIUM PLAN" RECORDED SEPTEMBER 15, 1993 AS INSIRUv= NO. 93-0621742 OF OFFICIAL RECORDS; REFERENCE BEING MADE TO THE RECORD THEREOF FOR FULL, PARTICULARS. 16. MATTERS IN AN INSTRU E N WHICH AMONG (OTHER THINGS CONTAIN OR MAKE PROVISIONS FOR ASSESSMENTS AND LIENS AND THE SUBORDD�ATION THEREOF; PROVISIONS RELATING TO PARTITION; RESTRICTIONS ON SEVERABILITY OF CLvMMTT INIERESTS; PROVISIONS FOR CERTAIN EASEMENTS AMID/OR ENCROACRETIS; AMID CONTAINING COVENANTS, CONDITIONS AND RESTRICTIONS WHICH PROVIDE THAT A VIOLATION THEREOF SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORTGAGE OR DEED OF TRUST IN GOOD FAITH AND FOR VALUE, RECORDED, AS INSTRUMENT NO. 93-0625045 OF OFFICIAL RECORDS. THE PROVISIONS, IF ANY, OF SAID INSTRLRETT WHICH PROVIDE RESTRICTIONS BASED CST RACE, COLOR, RELIGION OR NATIONAL ORIGIN ARE DELETED. SAID I14STRU ENT MAY PROVIDE FOR LEVYING REGULAR AS WELL AS SPECIAL ASSESSMENTS. NUIWITNSTANDING THE MORTGAGEE PRC7=ION CLAUSE CONTAINED IN THE ABOVE MENTIONED COVENANTS, CONDITIONS AND RESTRICTIONS, THEY PROVIDE THAT THE LIENS AND C3ARGE'S FOR UPKEEP AND NIAINIII ANCE ARE SUBORDINATE ONLY TO A FIRST MORTGAGE. AN INSTRUMENT DECLARING A MODIFICATION OF SAID ODVENANI5, CONDITIONS AND RESTRICTIONS WAS RECORDED, AS INSMUv= NO. 93-0680846, OF OFFICIAL RECORDS. CR OER ND. : 216707-3 . PAM Nc). : 6 17. EASEMENTS FCOR INGRESS AND EGRESS, PARKIl43, PIPELINE, DRAINAGE, SANITARY SEWERS, PUBLIC UI'I X=, SLOPES AND RIGHTS IN(=ENTAL THEREIC), AS DISCLOSED BY INsI L14WM OF RE03RD AND THE MAP OF SAID TRACT, AFFECTING CJLY THE CU44 N AREA. 18. M ATIE RS IN AN IILS'IRU14 " WHICH AMOM CJ= THINCS CCNIAIlN OR MAKE PRC)VISICNS FOR AND LIENS AND THE SU8CRDINAT.TCN TFERDOF; PROVISICgSS RELATING TO PARTITICN; RESSIRICTICNS ON SEVERABIL17Y OF COMPONENT IMERESIS; PROVISICNS FM SIN EASE MEM AND/OR ; AND CCWI'AINIlVG COVENANIS, CCNIDITICVS AMID RESIRICTICNSS MUCH PROVIDE THAT A VIOLATIC N THEREOF SHALL NOT DEFT C R RIINEE2 INVALID THE LIEN OF ANY MJR*ICAGE OR DEED OF TRUST IN GOOD FAITH AND FOR VALUE, RECORDED, AS INS TUdWT NO. 93- 0635859, OF OFFICIAL RECORDS. THE PROVISICNS, IF ANY, OF SAID IlJ3 NENT WHICH PROVIDE RFSIRICTICNS BASED CN RACE, OXCR, RELIGICN OR M17CNAL CRIGIN ARE DELETED. SAID INSTRLN Wr MAY PROVIDE FOR LEVYING REGULAR AS WELL AS SPECIAL 19. DEED OF lT?UST TO SECURE AN INIDE97TENESS. AMOUNT: $67,337.00 7TUBT R: THZPM E. CIT0 II, A SDME MAN AND RAY VIlZ= SHORB, A SINM E MAN AS TEZUVIS IN QCKCN TRUSTEE: F= BANCORP, A CAL.IFOTMA OQRP ATICN BENEFICIARY: SANWA BANK CALIFORNIA, A CALIFORNIA OORPORATICN DATED: JANUARY 27, 1994 RECORDED: FEBRUARY 28, 1994 AS IZ79M T NO. 94-144392, OF OFFICIAL RECORDS 20. DEED OF TRUST TO SECURE AN INDEBTE24ESS. ` AMOUNT: $23,000.00 / TRUSTOR: THCMAS OrIO/RAY SHORB TF ISIEE: THE CITY OF HUNTIlNGZ� BEACH, A MUNICIPAL CORPORATICN BIINEFIC~rARY: THE REDEVELAPNE r AGENCY OF THE CITY OF BEAM, A PUBLIC BODY CORDATE AND POLITIC DATED: FEBRUARY 25, 1994 RECORDED: FEBRUARY 28, 1994 AS DUIRUYENT NO. 94-144393, OF OFFICIAL RECORDS 21. DEED OF TRUST TO SECURE AN INEEBTEDNESS. AMOUNT: $8,831.00 TRUSTYOR: THC A OTT O/RAY SHORB TRUSTS: THE REDEVELOPMENT AGENCY OF THE CITY OF HCIrTTIDMON BEACH, A PUBLIC BODY CORPORATE AND POLITIC BENEFICIARY: THE CITY OF HLWRIN CN BEACH, A MUNICIPAL CORPORATION DATED: FEBRUARY 25, 1994 RECORDED: FEBRUARY 28, 1994 AS INS'IRU E TI' NO. 94-144 3 94, OF OFFICIAL RECORDS jWr CONDOMINIUM PLAN Sheet I of Sh ?_` I UNIT AIRSPACE DIMENSION PLAN: SCALE: 1" = 16' ' - BUILDING "A" i 4 MIDDLE LEVEL UNITS 1 THRU 11 ,ty � � mmWALL LNE 3-D D 9-D 9. ZQ9# a 9 CD O I a 0 L o a 09' to c.c 1 d' 161d' as. • >.� y is �� ' 7 O _• $ ..^ �. ,Cc > 3•N• F OOR v .a. h. !S �. •rsy,, CC • ti.— ��.i3..�'�iiixa i • avz 77 L c o a c NOTES: ..�t .cas- 1. • INDICATES COMMON BUILDING CONTROL POINT. -- •i 2. SEE SHEET 6 FOR BOUNDARY PUTT. 3. SEE SHEET 7 FOR BUILDING LOCATION PLAN. 3. SEE SHEETS 8 THRU 19 FOR UNIT AIRSPACE DIMENSION PLANS. _SJ�;:`�!is 5. SEE SHEETS 20 THRU 23 FOR SCHEDULES OF TWICAL UNIT VERTICAL SECTIONS. 6. SEE SHEETS 24 THRU 27 FOR TYPICAL•L•?1IT VERTICAL SECTIONS. 7. SEE SHEET 29 FOR OPEN PARKX%G .LOCATION.PLAN. ~�1'r Page 2 EXCLUSIONS In addition to the Exception in Schedule B,you are not insured against loss,costs,attorneys'fees,and expenses resulting from: 1. Governmental police power,and the existence or violation of any law or government regulation.This includes building and zoning ordinances and also laws and regulations concerning: • land use • improvements on the land • land division • environmental protection This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at Policy Date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning,unless: • a notice of exercising the right appears in the public records on the Policy Date • the taking happened prior to the Policy Date and is binding on you if you bought the land without knowing of the taking 3. Title Risks: • that are created,allowed, or agreed to by you • that are known to you, but not to us,on the Policy Date unless they appeared in the public records • that result in no loss to you • that first affect your title after the Policy Date—this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks 4. Failure to pay value for your title. 5. Lack of a right: • to any land outside the area specifically described and referred to in Item 3 of Schedule A or • in streets, alleys,or waterways that touch your land. This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. CONDITIONS 1. DEFINITIONS Our obligation to you could be reduced if: a. Easement—the right of someone else to use your • you fail to give prompt notice land for a special purpose. and b. Land—the land or condominium unit described in • your failure affects our ability to dispose of or to Schedule A and any improvements on the land which defend you against the claim are real property. b. Proof Of Your Loss Must Be Given To The Company c. Mortgage—a mortgage,deed of trust, trust deed or other security instrument. You must give us a written statement to prove your d. Public Records—title records that give constructive claim of loss.This statement must be given to us not notice of matters affecting your title—according to the later than 90 days after you know the facts which will state statutes where your land is located. let you establish the amount of your loss. e. Title—the ownership of your interest in the land,as The statement must have the following facts: shown in Schedule A. • the Covered Title Risks which resulted in your loss • the dollar amount of your loss 2. CONTINUATION OF COVERAGE • the method you used to compute the amount of This policy protects you as long as you: your loss • own your title You may want to provide us with an appraisal of your or loss by a professional appraiser as a part of your state- • own a mortgage from anyone who buys your land ment loss. or We may require you to show us your records,checks, • are liable for any title warranties you make letters,contracts,and other papers which relate to your This policy protects anyone who receives your title because claim of loss. We may make copies of these papers. of your death. We may require you to answer questions under oath. Our obligation to you could be reduced if you fail or 3. HOW TO MAKE A CLAIM refuse to: a. You Must Give The Company Notice Of Your Claim • provide a statement of loss or If anyone claims a right against your insured title,you • answer our questions under oath must notify us promptly in writing, or Send the notice to TRW Title Insurance Company, • show us the papers we request, 6800 College Blvd.,Suite 200,Overland Park,Kansas. and Please include the Policy number shown in Schedule • your failure or refusal affects our ability to dis- A,and the county and state where the land is located. pose of or to defend you against the claim. 290 (Continued) \ Page 3 4. OUR CHOICES WHEN YOU NOTIFY US OF A CLAIM e. If you do anything to affect any right of recovery you After we receive your claim notice or in any other way may have, we can subtract from our liability the learn of a matter for which we are liable,we can do one amount by which you reduced the value of that right. or more of the following: a. Pay the claim against your title. 7. TRANSFER OF YOUR RIGHTS b. Negotiate a settlement. When we settle a claim, we have all the rights you had c. Prosecute or defend a court case related to the claim. against any person or property related to the claim.You d. Pay you the amount required by this Policy. must transfer these rights to us when we ask,and you must e. Take other action which will protect you. not do anything to affect these rights.You must let us use f. Cancel this Policy by paying the Policy Amount,then your name in enforcing these rights. in force, and only those costs, attorneys' fees and We will not be liable to you if we do not pursue these rights expenses incurred up to that time which we are obli- or if we do not recover any amount that might be re- gated to pay. coverable. 5. HANDLING A CLAIM OR COURT CASE With the money we recover from enforcing these rights, we will pay whatever part of your loss we have not paid. You must cooperate with us in handling any claim or court We have a right to keep what is left. case and give us all relevant information. We are required to repay you only for those settlement g. ARBITRATION costs, attorney's fees and expenses that we approve in advance. If it is permitted in your state,you or the Company may demand arbitration. When we defend your title,we have a right to choose the attorney.We can appeal any decision to the highest court. The arbitration shall be binding on both you and the Com- We do not have to pay your claim until your case is finally pang.The arbitration shall decide any matter in dispute between you and the Company. decided. The arbitration award may: 6. LIMITATION OF THE COMPANY'S LIABILITY • include attorneys' fees if allowed by state law. a. We will pay up to your actual loss or the Policy Amount • be entered as a judgment in the proper court. in force when the claim is made—whichever is less. The arbitration shall be under the Title Insurance Arbitra- b. If we remove the claim against your title within a tion Rules of the American Arbitration Association.You reasonable time after receiving notice of it,we will have may choose current Rules or Rules in existence on Policy no further liability for it. Date. If you cannot use any of your land because of a claim The law used in the arbitration is the law of the place where aginst your title, and you rent reasonable substitute the property is located. land or facilities,we will repay you for your actual rent You can get a copy of the Rules from the Company. until: • the cause of the claim is removed or 9. OUR LIABILITY IS LIMITED TO THIS POLICY • we settle your claim This Policy,plus any endorsements,is the entire contract c. The Policy Amount will be reduced by all payments between you and the Company. Any claim you make made under this Policy—except for costs,attorneys' against us must be made under this Policy and is subject fees and expenses. to its terms. d. The Policy Amount will be reduced by any amount we pay to our insured holder of any mortgage shown in this Policy or a later mortgage given by you. TRW Title Insurance Company PRESIDENT Countersi d b SECRETARY AUTHORIZED OFFICER OR AG/ENT 290 r REQUEST F R COUNCIL/REDEVELOPMENT AGENCY ACTION ED 94-05 Date: January 18, 1999 Submitted to: Honorable Mayor/Chairman and City Council/Agency Members Submitted by: Michael T. Uberuaga, City Administrator/Executive Director6W Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic Deve opment Subject: DOWN PAYMENT ASSISTANCE PROGRAM--PARTICIPANT APPROVAL APPROVED BY CITY COUNCIL Consistent with Council Policy? ( Yes [ ]New Policy or Exception 19� Statement of Issue, Recommendation, Analysis, Funding Source, Altern d c ions, ttachments- _l,f`RK ST TEMENT OF ISS 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. RECOMMENDED COUNCIL ACTION: 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"). Each listing is contained in the memo to Council, dated January 11, 1994. 2. Authorize the Mayor to execute and the City Clerk to attest to each Agreement between the city and each participant as approved herein. 3. Release funds for Down Payment Assistance Program participants. ANALYSIS: As part of the 1993-94 Community Development BIock Grant Program the Citizen Advisory Board recommended and the Council approved $100,000 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 (:4-05 January 19, 1994 Page two On November 1, 1993, the Redevelopment Agency approved $400,000 in Redevelopment Housing Set-Aside funds to assist up to fourteen low-income buyers in The Brisas del Mar Condominium project. The low-income borrowers herein are participants in this program and some may be participants in the CDBG program as well. Huntington Beach City Charter, Section 613, requires the City Council to approve each contract in writing, including the Down Payment Assistance Program contracts. To complete each Agreement, the listing of potential participants, the amount of money loaned and the property subject to trust deed must be approved and incorporated into the Agreement by the City Council. The listing was provided to the City Council by memo, dated January 11, 1994, under separate cover, and is on file and available for inspection in the City Clerk's office. 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. FLMING SOURCE: Community Development Block Grant-- $200,000 total appropriation. Redevelopment Agency Housing Set-aside- $404,000 total appropriation. MTU/BAK/SVK:jar 920j J1 CITY OF HUNTINGTON BEACH INTER-DEPARTMENT COMMUNICATION RLWTINCTQN{EACH TO: Honorable Mayor & City Council Members FROM: Michael T. Uberuaga, City Administrator WW SUBJECT: Down Payment Assistance Participant Approval January .18, 1994 DATE: January 11, 1994 On the City CouncilfRedeveIopment Agency Agenda for its meeting of Tuesday, January 18, 1994, there is a Request for Council/Redevelopment Agency Action recommending approval of participants in the Down Payment Assistance Program. The participants and the amount and source of the loans, and the location of the subject property are hereby provided. They are intended to be incorporated in the previously approved sample agreements for the Down Payment Assistance Program. If you should have any questions please contact me or the Department of Economic Development. MTU Jar � r 928j x xc: Connie Brockway, City Clerk Barbara A. Kaiser, Deputy City Administrator/Economic Development ,^• ;M m LD r• � r EA r DOWN PAYMENT ASSISTANCE P ROG Loan Location of Property Name Amount Subject to Trust Deed 94-4 Sally Lawson $23,000 SAS 409 Utica #A-1 6,000 CDBG 94-5 Shauna Quick $16,717 Set-Aside 409 Utica #C32 94-6 Barbara. Dieckmayer Denied 94-7 Rebecca Heidesch Withdrew 94-8 T. Otto/R. Shorn $23,000 Set-Aside 409 Utica #A-7 8,831 CDBG 94-9 Paul Cyr $ 4,400 CDBG 409 Utica, #A-9