Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Valerie Bastou - 1994-06-01
OdA 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, lst 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 I" Time Home -Buyers Program and one additional applicant for the RDA 1" Time Home -Buyers Program only. The RDA portion of these loans are Bastou ($25 000), Dieckmeyer ($23,000), Griffen ($25,000), Hoang ($23,000), Lawson ( 23,000 , Melvin ($35,000), Otto ($23,000), Quick, S. ($16,717), Quick, T. ($25,000), Rivera H. ($25,000). Quick, T. withdrew from the CDBG loan but maintains the RDA loan. These loans total $243,717. The Redevelopment Agency approved fifteen (15) applicants from the $750,000 allocation at Pacific Park Villas (PPV) to participate in the Redevelopment Agency lst 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 One loan (Wallace) was assumed by another qualified buyer (Stay). Two applicants have paid their loans: Melvin, paid off his RDA loan 10/21/1997 in the amount of $40,794.31 and Hoang, paid off his RDA loan on 12/21/1999 in the amount of $47,208.80. A check in the amount of $4,116.57 was issued to Mr. Hoang for overpayment, reducing the loan repayment to $43,092.23. These loans accrue simple interest at 5%, due and payable upon sale to a non qualified buyer and has shared equity. Cc: Connie Brockway, City Clerk Paul D'Alessandro, Deputy City Attorney David Biggs, Director, Economic Development John Reekstin, Director of Administrative Services Dan Villella, Director of Finance Jake Rahn, Administrative Services Hank Reveles, Sr. Accountant Joyce de Kreek, Economic Development Steve Holtz, Development Specialist G /Joyce/Intermemo Reconvey doc 95-01 (2-1-9S) RDA 12-19-94 95-02 (2-1-95) RDA 12-19-94 95-03 (2-1-95) RDA 12-19-94 95-04 (2-1-95) RDA 12-19-94 95-06 (4-12-95) RDA 4-3-95 96-01 (1-24-96) RDA 1-16-96 96-02 (3-7-96) RDA 3-4-96 96-03 ( RDA 4-1-96 96-04 (7-17-96) RDA 7-15-96 96-05 (8-7-96) RDA 8-5-96 96-06 (8-7-96) RDA 8-S-96 97-01 (1-29-97) RDA 1-21-97 97-02 (4-30-97) RDA PACIFIC PARK VILLAS ($750,000 — RDA) Carillo, Ann S 35,000 7861 Happy Drive, 4102 Lawrence, James and Jeanette $ 35,000 18051 Joyful Lane, #16 Wong, Wesley Chi $ 35,000 7681 Happy Drive, #202 Hocker, ChristopherNandereb, Gayle$ 35,000 7681 Happy Drive, #101 Rivera, Victor/Burgess, Debra S 35,000 18061 Joyful Lane, #104 Heckethorne, Sean & Jacquelyn $ 35,000 7871 Happy Drive, #102 Margolis, Peter Weinfeld, Julie Peltier, Edward Wallace, Barbara Jo Murch, Gregory Krueck, Deborah Qsterhoudt, Robert and Kathy $ 35,000 18051 Joyful Lane, #104 S 35,000 18061 Joyful Lane, 9205 $ 35,000 7871 Happy Drive, #201 S 35,000 18051 Joyful Lane, #205 $ 35,000 19051 Joyful Lane, #102 $ 35,000 1806I Joyful Lane, #101 $ 35,000 18061 Joyful Lane, # 102 Gfoycenntermemo Reconvey.doc - --•-r-.+r��c+'r��c....rr-r�i-r�s+aw.+e,��w�.w.�.N ;•.�7w`T789 �.�.. . -.. 1 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 0 TIME BUYER ASSISTANCE ($400,000 RDA) 94-4 (2-11-94) Lawson, Sally $ 23,000 409 Utica Avenue #A-1 - (RDA 1-18-94) 94-5 (2-I1-94) Quick, Shauna (RDA 1-18-94) 94-6 (2-11-94) Dieckmeyer, Barbara (RDA 2-22-94) 94-8 (2-11-94) Otto, TJShorb R. (RDA 1-18-94) 94-10 (2-11-94) Hoang, Tam (RDA 2-22-94) 94-11(5-18-94) Bastou, Valerie (RDA 5-18-94 94-12 (5-18-94) Quick La Reine, Teresa (RDA 5-18-94) 94-13 (6-23-94) Melvin, Patrick (RDA 6-20-94) $ 16,717 409 Utica Avenue #C-32 $ 23,000 409 Utica Avenue #B-21 $ 23,000 409 Utica Avenue #A-7 $ 23,000 409 Utica Avenue #D-37 $ 25,000 409 Utica Avenue #D43 $ 25,000 409 Utica Avenue #A-9 $ 35,000 409 Utica Avenue #D-39 94-14 (7-27-94) Rivera, Hector R. Iciar - $ 25,000 (RDA 7-18-94) 94-17 (10-4-94) Griffon, Olga Christina $ 25,000 (RDA 9-19-94) $ 2439717 409 Utica Avenue #A5 409 Utica Avenue #C-23 .1k GJjoyceAntermemo Reconvey.doe °A A & CITY OF HUNTINGTON BEACH Inter -Office Communication Economic Development Department DATE: May 23, 2000 TO: Gus Duran, Housing/Redevelopment Manager FROM: Joyce DeKreek, Housing/Redevelopment Speciali SUBJECT: Research on Loan Forgiveness, 1st Time Home -Buyers Program 2nd $100,000 I have reviewed our records regarding funding of 1st Time Home -Buyers Program to determine the names and amount of assistance which benefited the applicants from the 2nd $100,000 in CDBG funds approved by the City Council at their December 20, 1993, meeting. At that meeting eight applicants (Hoang, Heildesch, Quick, Lawson, Steenveld, Otto, Dieckmeyer and Chavez) were approved to participate in the 1st Time Home -Buyers Program, totaling $59,100. However, two (2) applicants (Heildesch, Quick (Shauna) withdrew (or participated in another program) , thereby lowering the total amount of assistance to $53,150. I have no record on Steenveld or Chavez (either on microfilm or files) and after checking with City Clerk's office, I believe these loans may not have been funded. If that's true, the total amount of assistance is lowered to $31,900. Since that meeting Bastou ($5,00�, Griffen ($5,300), Melvin ($10,000), Quick (Theresa) ($5,000) and Rivera H. ($5,000), were approved for CDBG lst Time Buyer Assistance in conjunction with the Redevelopment 1" Time Buyer Assistance. Quick T. signed loan docs but withdrew prior to recording the docs. The CDBG amount of assistance is $25,300. Two applicants have paid back their loans: Hoang, CDBG loan paid on 12/21/1999 in the amount of $8,229.72 and Melvin, CDBG loan paid on 10-21-1997 in the amount of $11,655.36.. Wjoyce/Intermemo Reconvey.doc These loans are accrued at a 5% simple interest rate, due and payable upon sale, transfer, etc. Cc. Paul D'Alessandro, Deputy City Attorney Joyce de Kreek, Economic Development Steve Holz, Development Specialist Glyoycedtntemxmo Recomsy.doc �1 Lij Ze L'a" HUNTINCTON BEACH TO: FRO.1f- SUBJECT: DATE: OFFICE OF THE CITY CLERK CITY OF HUNTINGTON BEA� INTER -DEPARTMENT COMMUNICA David Biggs, Economic Development Director Connie Brockway, City Clerk viz Must Council/Agency Authorization Be Given Re: Subordination Agreement - Down Payment Assistance Loans - Valarie A. Bastou August 15, 1997 co n ,o - Sarah Lazarus will be able to assist us in being certain the attached original documents are processed properly. The issues to be resolved are: (1) The attached original documents are connected with City Council/Redevelopment Agency approved Down Payment Assistance Loans, each of which is separately approved by Council/Agency. (2) These Subordination Agreements should be signed by the City Clerk or a Deputy with non -restricted authority. (For example, Personnel Department employees who administer oaths are restricted deputies.) (3) Dan Bruening is a Deputy City Clerk roWgid to signing subordination documents for HUD - mobile home documents, etc., not actions which amend agreements that have been individually approved by the City Council. (4) Dan Bruening's signature is notarized as a Deputy City Clerk, rather than Redevelopment Agency Deputy City Clerk. (5) Is there a provision in the Down Payment Assistance Program that allows staff to take action on and execute these documents absent instruction to do so by the City Council. I believe a simple remedy can be found, perhaps obtaining City Council authorization retroactively on the Consent Calendar Agenda. It will be appreciated if you will obtain the required opinion of the City Attorney's Office. `:'tbmanos197cbmem197-08°icc'4oc �-30���'�'c-4- ^Xrt,� � u��.i, � 2c � �• 61. Q ASS AYtAfC LENDERS ADVANTAGE June 27,1997 DAN BRUENING ECONOMIC DEVELOPMENT First American Title Insurance Company 200 East Sandpointe, Suite 600 Santa Ana, California 92707 Fax: 714- 44-5760 Tel: 900-525-3633 RE. Escrow No. 7922094P/ VALERIE BASTOU 409 UTICA #D43, HUNTINGTON BEACH, CA 92648 Dear DAN: THIS LOAN IS A REFINANCE TO LOWER THE INTEREST RATE, THE BORROWER IS NOT { GETTING ANY MONEY OUT OF ESCROW. IN THE EVENT YOU NEED ANYTHING ELSE PLEASE GIVE ME A CALL AT 800-525-3633 X5053 `0y ,,T s'v�Nec -%yam✓ /�S'` ',� c�✓%' I Cordially, e76-tj First American Title Lenders Advantage KRISTY GOLDMAN Escrow Officer /pb enc U i tSt AMEX, C 1 T� E LENDERS ADVANTAGE June 27,1997 DAN BRUENING ECONOMIC DEVELOPMENT First American Title Insurance Company 200 East Sandpointe, Suite 600 • Santa Ana, California 92707 Fax: 714-434-5760 Tel: 800-525-3633 RE: Escrow No. 7922094P/ VALERIE BASTOU 409 UTICA #D43, HUNTINGTON BEACH, CA 92649 Dear DAN: THIS LOAN IS A REFINANCE TO LOWER THE INTEREST RATE, THE BORROWER IS NOT GETTING ANY MONEY OUT OF ESCROW. IN THE EVENT YOU NEED ANYTHING ELSE PLEASE GIVE ME A CALL AT 800-525-3633 X5053 Cordially, First American Title Lenders Advantage KRISTY GOLDMAN Escrow Officer /pb enc ` s YYY RESOLUTION NO. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH AUTHORIZING EXECUTION BY THE DIRECTOR OF ECONOMIC DEVELOPMENT OF LOAN AGREEMENTS FOR LOANS FUNDED BY HOUSING SET ASIDE MONIES WHEREAS, the City Council of the City of Huntington Beach has approved an Affordable Housing Program; and The City Council has authorized the Director of Economic Development to administer the program; and The preparation of certain documentation is necessary in order to implement the program and comply with regulations which govern the use of housing set aside funds in order to implement the redevelopment plan and subsidize low and moderate income households to the extent those households cannot obtain housing at affordable costs on the open market; NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the City of Huntington Beach as follows: SECTION 9. The Director of Economic Development, or hislher designated representative is hereby authorized to sign all documents necessary and appropriate to carry out and implement the Affordable Housing Program and execute loan agreements using housing set aside funds for first-time homebuyers who qualify as persons of tow or moderate income. SECTION 2. A loan agreement prepared by the City Attorney is attached hereto and incorporated into this resolution by this reference. Said agreement is hereby approved for use in the administration of loans using housing set aside money for downpayment or other assistance to low and moderate income households. SECTION 3. - The Director of Economic Development is directed to submit to the Redevelopment Agency for approval the names of the loan a 71selaskVIO 1119303.26 PM �f I W V applicant, the location of the housing, the amount of the loan, and any unique features of the loan or the housing which might be required, prior to execution of loan agreement or other documents in compliance with Huntington Beach City Charter Section 613, "Execution of Contracts." SECTION 4. The Agency finds that the Agreement is categorically exempt under CEQA, pursuant to Section 15326 of the Guidelines to the California Environmental Quality Act. SECTION 5. The Agency Inds and determines that expenditures from the Housing Fund as contemplated by the Agreement will directly and specifically benefit, Improve, and preserve the community's supply of lower income housing within the meaning of Section 33334.2 of the California Health and Safety Code. SECTION 6. The Agency finds and determines that expenditures from the housing fund as contemplated by the loan agreement are of benefit to the Redevelopment Project Areas. PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof held on the day of 11993. ATTEST: Agency Clerk 71setasldel1011119303:26 PSI Chairman APPROVE AS TO FORM: 1oNg o.w�3 Cpnsel INITIATED AND APPROVED: De uty City Administrator) Director of Economic Development F4 a'fiv43 5 Ala I RESOLUTION NO. A_ ff -- A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH AUTHORIZING EXECUTION BY THE DIRECTOR OF ECONOMIC DEVELOPMENT OF LOAN AGREEMENTS FOR LOANS FUNDED BY HOUSING SET ASIDE MONIES WHEREAS, the City Council of the City of Huntington Beach has approved an Affordable Housing Program; and The City Council has authorized the Director of Economic Development to administer the program; and The preparation of certain documentation is necessary in order to implement the program and comply with regulations which govern the use of housing set aside funds in order to implement the redevelopment plan and subsidize low and moderate income households to the extent those households cannot obtain housing at affordable costs on the open market; NOW, THEREFORE, BE -IT RESOLVED by the Redevelopment Agency of the City of Huntington Beach as follows: SECTION 1. The Director of Economic Development, or histher designated representative is hereby authorized to sign all documents necessary and appropriate to carry out and implement the Affordable Housing Program and execute loan agreements using housing set aside funds for first-time homebuyers who qualify as persons of low or moderate income. SECTION 2. A loan agreement prepared by the City Attorney is attached hereto and incorporated into this resolution by this reference. Said agreement is hereby approved for use in the administration of loans using housing set aside money for downpayment or other assistance to low and moderate income households. %X SECTION 3. The Director of Economic Development is directed to submit to the Redevelopment Agency for approval the names of the loan 1 71setasidell01119303:26 PM 1 t I W applicant, the location of the housing, the amount of the loan, and any unique features of the loan or the housing which might be required, prior to execution of loan agreement or other documents in compliance with Huntington Beach City Charter Section 613, "Execution of Contracts." SECTION 4. The Agency finds that the Agreement is categorically exempt under CEQA, pursuant to Section 15326 of the Guidelines to the California Environmental Quality Act. SECTION 5. The Agency finds and determines that expenditures from the Housing Fund as contemplated by the Agreement will directly and specifically benefit, Improve, and preserve the community's supply of lower income housing within the meaning of Section 33334.2 of the California Health and Safety Code. SECTION 6. The Agency finds and determines that expenditures from the housing fund as contemplated by the loan agreement are of benefit to the Redevelopment Project Areas. PASSED AND ADOPTED by the Redevelopment Agency of the City of Huntington Beach at a regular meeting thereof held on the day of ATTEST: Agency Clerk R EVVED AND APPROVED: Executive Dlrect r 7lsetaskW1011119303:26 PM Chairman APPROVW AS TO FORM: LV Image Cnsel ID'tt�3 IOo_ INITIATED AND APPROVED: 1 Lam^ De uty City Administrator! Director of Economic Development 2 qS3 5 01 mmomr—mm 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 Piote 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) snail be due and payable, unless the Property has appreciated in value in an amount which wou'd be equal to or less than the value of the Property if the appreciation rate had been five per cent (5°%) per year over the original price paid by the Trustor. If the price of the Property upon sale to ap Eligible Buyer reflects less than 5°% appreciation per year over the price paid by the Trustor at the time of original purchase, then no interest will be due upon such sale. Interest will begin to accrue at the simple rate of five percent per annum as to the new owner, on the date upon which escrow closes and will accrue on the them unpaid principal amount. 6. Subordination. The Beneficiary has found and declared that an economically feasible method of financing, refinancing or assisting first time homebuyers pursuant to the Program on substantially comparable terms and conditions without subordination is not reasonably available. Any first lien on the Property ("First Lien") held by an institutional lender or i investor (the "Lender") shall be prior and superior to the Declaration and this Deed of Trust. Thus, in the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the 7 7Roandocla9cyridrIG7112194 Truator'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 Prdperty free and clear from such restrictions. 7. Obligation to Refrain from Discrimination_ There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Beneficiary itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the City or any portion thereof. Trustor agrees it shall instruct the escrow holder for the acquisi;ion of the Property by the Trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1) the First Lien; 2) the Declaration of Covenants, Conditions & Restrictions for Affordable Housing; and 3) the Agency Deed of Trust. IF 8 7Aoand xla9CyridrA)7112194 _;'?7L3;2� J� OFFICE OF THE CITY CLERK CITY OF HUNTINGTON BEACH H[11YnNGi0MSE.aCH INTER -DEPARTMENT COMMUNICATION TO: David Biggs, Economic Develorpm��ent Director TB0111: Connie Brockway, City Clerk W7 ,SUBJECT: Must Council/Agency Authorization Be Given Re: Subordination Agreement - Down Payment Assistance Loans - Valarie A. Bastou DATE: August 15, 1997 Sarah Lazarus will be able to assist us in being certain the attached original documents are processed properly. The issues to be resolved are: (1) The attached original documents are connected with City CounciVRedevelopment Agency approved Down Payment Assistance Loans, each of which is separately approved by Council/Agency. (2) These Subordination Agreements should be signed by the City Clerk or a Deputy with non -restricted authority. (For example, Personnel Department employees who administer oaths are restricted deputies.) (3) Dan Bruening is a Deputy City Clerk restricted to signing subordination documents for HUD - mobile home documents, etc., not actions which amend agreements that have been individually approved by the City Council. (4) Dan Bruening's signature is notarized as a Deputy City Clerk, rather than Redevelopment Agency Deputy City Clerk. (5) Is there a provision in the Down Payment Assistance Program that allows staff to take action on and execute these documents absent instruction to do so by the City Council. I believe a simple remedy can be found, perhaps obtaining City Council authorization retroactively on the Consent Calendar Agenda. It will be appreciated if you will obtain the required opinion of the City Attorney's Office. /111177 01" 4 r . 6 U I-rSS�sf�sn[-e Z? gAcbmemos197cbmem197-0$9cc 76 Graff lv . KReoordinfl RKUes by And f RECORDING REQUESTED BY First American Title Insurance Company Order No. 7922094 Escrow No. 7922094-P Loan No. 09967860 WHEN RECORDED MAIL TO: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH 2000 MAIN STREET - SECOND FLOOR HUNTINGTON BEACH, CA 92648 ATTN: CITY CLERK V Recorded in the County of Orange, Californla Gary L. Granville, Clerk/RV41erM 1`111;C11�1�:1:bill'llll�:l:l."�l:ill�'��ll��l�'JI� 1,,7,3,4,,7 0,/,,/,7 005 22027203 22 27 S13 7 7.00 18.00 0.00 0.00 0.00 0.00 SPACE ABOVE THS LINE FOR RECORDERS USE SUBORDINATION AGREEMENT NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. THIS AGREEMENT, made this 24TH day of JUNE, 1997, by VALERIE A. BASTOU, A MARRIED WOMAN AS HER SOLE AND SEPARATE PROPERTY, owner of the land hereinafter described and herein after referred to as "Owner", and THE CITY OF HUNTINGTON BEACH, present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as "Beneficiay; WITNESSETH THAT WHEREAS. VALERIE A. BASTOU did execute a deed of trust, dated JUNE 1.1994. to THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, A PUBLIC BODY CORPORATE AND POLITIC, as trustee covering: FOR LEGAL DESCRIPTION SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF to secure a note in the sums of $5,000.00, dated JUNE 1, 199A in favor of THE CITY OF HUNTINGTON BEACH, which deed of trust was recorded JUNE 7,1994. AS INSTRUMENT NO. 94-0382970. Official Records of said county; and WHEREAS, Owner has executed, or is about to execute, a deed of trust and note In the sum of $57, 000.00, dated June 30, 1997 , In favor of , hereinafter referred to as "Lender", payable with interest and upon the terms and conditions described therein, which deed of trust is to be recorded concurrently herewith; and WHEREAS, it is a condition precedent to obtaining said loan that said deed of trust last above mentioned shall unconditionally be and remain at all times a lien or charge upon the land hereinbefore described, prior and superior to the lien or charge of the deed of trust first above mentioned; and WHEREAS, lender is willing to make said loan provided the deed of trust securing the same is a lien or charge upon the above described property prior and superior to the lien or charge of the deed of trust first above mentioned and provided that Beneficiary will specifically and unconditionally subordinate the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor cf Lender, and V WHEREAS, it is to the mutual benefit of the parties hereto that Lender maize such toan to Owner; and Beneficiary is willing that the deed SUBORD k DOC (Rov B1 4) Page 1 of 3 INITIAL _�� of trust securing same shall, when recora,-, constitute a lien or charge upon said land whit— Is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned. SUBORDA.DOC (Rev 6/94) Page 2 of 3 INITIAL VI" `' , _ . (cont nuation of Subordination AgreemQbetween VALERIE A. BASTOU, A MARRIED IM MAN AS HER SOLE AND SEPARATE PROPERTY and THE CITY OF HUNTINGTON BEACH) NOW THEREFORE. in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which consideration is hereby acknowledged, and in order to Induce Lender to make the loan above referred to, it is hereby declared, understood and agreed as follows: (1) That said deed of trust securing said note in favor of Lender, and any renewals or extensions thereof, shall unconditionally be and remain at all times a lien or charge on the property therein described, prior and superior to the lien or charge of the deed of trust first above mentioned. (2) That Lender would not make its loan above described w1hout this subordination agreement. (3) That this agreement shall be the whole and only agreement with regard to the subordination of the lien or charge of the deed of trust first above mentioned to the lien or charge of the deed of trust in favor of lender above referred to and shall supersede and cancel, but only insofar as would affect the priority between the deeds of trust hereinbefore specifically described, any prior agreement as to such subordination including, but not limited to, those provisions, if any contained In the deed of trust first above mentioned, which provide for the subordination of the lien or charge thereof to another deed or deeds of trust or to another mortgage or mortgages. Beneficiary declares, agrees and acknowledges that (a) He consents to and approves (1) all provisions of the note and deed of trust in favor of Lender above referred to, and (n) all agreements, including but not limited to any loan or escrow agreements, between Owner and Lender for the disbursement of the proceeds of Lender's loan; (b) Lender In making disbursements pursuant to any such agreement Is under no obligation or duty to, nor has Lender represented that it will, see to the application of such proceeds by the person or persons to whom Lender disburses such proceeds and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in part; (c) He intentionally and unconditionally waives, relinquishes and subordinates the lien or charge of the deed of trust first above mentioned in favor of the lien or charge upon said land of the deed of trust in favor of Lender above referred to and understands that in reliance upon, and in consideration of, this waiver, relinquishment and subordination specific loans and advances are being and will be made and, as part and parcel thereof. specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment and subordination; and (d) An endorsement has been placed upon the note secured by the deed of trust first above mentioned that said deed of trust has by this instrument been subordinated to the lien or charge of the deed of trust in favor of Lender above referred to. NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OR WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND. BENEFICIARY: Z--/, OWNER: Daniel E. Bruening, Deputy ity Clerk d City of Huntington Bea (ALL SIGNATURES MUST BE ACKNOWLEDGED) IT IS RECOIt ifEADED THAT, PRIOR TO THE EXECU170N OF THIS SUBORDINATION AGREEJUEAT, THE PARTIES CONSULT 1VITH THEIR ATTORNEYS WITH RESPECT THERETO. (CLTA SUBORDINATION FORM -A-) SUBOR)ADOC MevGM4) Page 3 of 3 �l CALIFORNIA ALL-PURPO6 ACKNOWLEDGMENT State of m County of On `3,0 Z� 7 before me, , Dale _ _ p Nm ae end Me of Onroer {e g.. ' a No1ery PuDticl personally appeared 4 o . ,l "-weh,11J9 L5 personally known to me ❑ proved to me on the basis of satisfactory evidence to be the personal whose name is scribed to the �t within instrume and acknowledged to me thatQahe'the executed the same ' hi heir authorized capaci;W. and that b is slgnaturon the instrument the person,o), or the entity upon behalf of which the personj< acted, executed the instrument. ELQABETH EH>rNG WITNESS my hand and official seal. z , �Q . COMM. r 1oDv7 . z � Notary Pubic — Caifornia ORANGE COUNTY Me Comm. Eg*es AM 29.1997 Spnatore Notary Pud�e OPTIONAL Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document Description of Attached Document Title or Type of Document: Document Date: 62 _ Number of pages: Signer(s) Other Than Named Above: Capacity(les) Claimed by Signer(s) Signer's ❑ Individual M Corporate icer Title(s): ❑ Partner — ❑ mited General ❑ Attorney -in -Fact ❑ Trustee ❑ Guardian or Conservator ❑ Other: Top of thurno here Signer Is Representing: Signer's Name: ❑ Individual ❑ Corporate Officer Title(s): 0 Partner --❑ Limited ❑ General ❑ Attomey-in-Fact ❑ Trustee ❑ Guardian or Conservator - - 13 Other: Top of thurno here Signer Is Representing: 0 1 VA National Notary Assoc4abon • 8236 Remmet Ave.. PO. Box 7184 • Canoga Park. CA 91309.71 s4 Prod. No. 5907 Reorder. Cal ToFFroe 1-WO-87fSM27 V (continuation of Subordination Agreement between VALERIE A. BASTOU, A MARIED WOMAN AS HER SOLE AND SEPARATE PROPERTY and THE CITY OF HUNTINGTON BEACH) STATE OF CALIFORNIA )ss COUNTY OF D,-cYrl!, e } On "y Lj 8 19 7 , before me, -9 State, persona ly appeared L--1 er If, i4• aae L astev a Notary Public in and for said , personatty-icslowr4e-ma (or proved to me on the basis of satisfactory evidence) to be the personM whose name 3 is/pw subscribed to the within instrument and acknowledged to me that he(&hey executed the s tie same in hitheir authorized capacityCps), and that by his e�r heir signatureo?on the instrument the personasy or the entity upon behalf of which the persoWacted, exec fed the instrument. WITNESS my hand and fficial seal. Signature RONatn LEE HMSEN r t C^rmnWor% & 11794450 Notary PaDfsc — caab"'k- My Comm. Exdre ss Oct 9,19W STATE OF CALIFORNIA COUNTY OF )ss } 07" uta for of ow rwlar;al Stan On , before me, , a Notary Public in and for said State, personally appeared -, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature {nw rta for drehW rouvW "an SUBORDA DOC (Rtv 6194) Page 4 of 3 INITIAL ORDER NO.7922094 REFERENCE NO.09967860 TITLE OFFICER: ;1iADELLNE LAINI DESCRIPTION THE LAND REFERRED TO LV TMS REPORT IS SITUATED Lti THE STATE OF CALIFOR.NTA, COUNTY OF ORANGE, CITY OF HUNT II GTON BEACH, AND IS DESCRIBED AS FOLLOWS: A CONDOMINIUM COMPOSED OF. PARCEL NO. 1: UNIT NO. 43, CONSISTING OF CERTAIN AIRSPACE AND SURFACE ELEMENTS, AS SHOWN AND DESCRIBED IN THE CONDOMINIUM PLAN (-PLAN-) FOR BRISAS DEL MAR LOCATED ON LOT I OF TRACT 14757, AS SHOWN ON A SUBDIVISION MAP RECORDED ON SEPTEMBER 1, 1993, IN BOOK 701, AT PAGES 42 THROUGH 43, INCLUSIVE, OF MISCELLANEOUS MAPS, IN THE OFFICE OF THE ORANGE COUNTY RECORDER (-OFFICIAL RECORDS'), WHICH PLAN WAS RECORDED ON SEPMIBER 15,1993, AS INSTRUMENT NO. 93-0621742, OF OFFICIAL RECORDS, CALIFORNIA. PARCEL NO. 2: AN UNDIVIDED ONE FORTY-FOURTH (1/441h) FEE STIMPIX 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% EXCEPTING THEREFROM, ALL OIL, GAS, MINERALS, AND OTHER HYDROCARBON SUBSTANCES LYING BELOW THE DEPTH OF 500 FEET WITHOUT AND RIGHT TO ENTER UPON THE SURFACE OF SAID LAND ABOVE A DEPTH OF 500 FEET, AS RESERVED BY ROBERT W. SHULL IN DEED RECORDED APRIL 14, 1987 AS INSTRUMENT NO. 87-202072 OF OFFICIAL RECORDS. SAID OIL, GAS, MINERAL AND OTHER HYDROCARBON RIGHTS WERE ASSIGNED TO GILBERT M. WILSON AND ELEANOR E. WILSON, HUSBAND AND WIFE AS COMMUNITY PROPERTY BY ASSIGNMENT RECORDED APRIL 15, 1988 AS INSTRUMENT NO. 88-172571 OF OFFICIAL RECORDS. PARCEL NO. 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 NO.4: EXCLUSIVE EASEMENTS APPURTENANT TO PARCELS NO. 1 AND NO.2 DESCRIBED A13OVE 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 NO.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 AREA IN THE DECLARATION, AS APPLICABLE, OVER PORTIONS OF LOT 1 OF TRACT 14757 AS SHOWN, ASSIGNED AND DESCRIBED IN THE PLAN. PAGE 6 w { , GOVERNMENT CODE 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO R'H1CH THIS STATEMENT IS ATTACKED READS AS FOLLOWS: NAME OF THE NOTARY:-ROyAj p LEE IL NSEN DATE COMMISSION EXPIRES: OCTOBER 9, 1999 , COUNTY WHERE BOND IS FILED: ORANGE COMMISSION NO: 1074450 I` iANUFACTURERIVENDOR NO.: NNAl PLACE OF EXEC TION DATE July_ 14. 1997 SIGNATURE: �� GARY L. GRANVILLE County Clerk -Recorder P.O. Box 238 Santa Ana, CA 92702-0238 w It ..w�r0.5 Z11TH4 MuK 47P PUTO t-E-5/97 2. 700604U-I Pns,. GE ; a 11111111111111,,lll011ll1„t LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this day of , JUNE — , 19 94 by and between FIRST ("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 groperty commonly known as l' Huntington Beach, California, and more particularly described in Exhibit "A" attached hereto and incorporated herein (the "Property") B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and currently earns less than 120% of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to City that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. City desires to utilize Community Development Block Grant funds in a manner consistent with federal guidelines to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach. E. The City wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. 1 7\memo\Loankk\83093/11:12 AM IE NOW, THEREFORE, for good and valuable consideration the parties agree as follows: City _Loan r, _ ,pity shall loan to Participant (the "Loan") the amount Of Dollars ( ), 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 Propert (the "Seller") by the City through deposit of the Loan proceeds into escrow withVk%MAj77(the "Escrow Agent") (Escrow No. The City shall direct the Escrow Agent to apply the proceeds of the Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the City a promissory note in favor of the City as holder, in the amount of the Loan, with interest accruing at five percent (5%) per year, substantially in the form of the "Promissory Note" attached hereto as Exhibit "B" and incorporated herein. Participant shall also execute and deliver to the City a deed of trust encumbering the Property which shall secure the Promissory Note (the "Deed of Trust"), substantially in the form of Exhibit "C" attached hereto and incorporated herein. 2. Maintenance of Property. Participant shall maintain the improvements on the Property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws, including conditions of approval which may apply to the Property pursuant to an entitlement issued by the City. 3. Acceleration/Due on Sale. a) Except as herein provided, the Loan and all interest accrued thereon shall be due and payable upon (i) such sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of the 7lmemolLoankMaM3111.12 AM 2 then current loan balance or for any amortization period longer than the loan secured by the First Mortgage, or (iii) Participant is in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant (Attachment "D" to this Agreement), as defined herein, recorded on the property, or (iv) Participant violates any condition of the deed of trust or promissory note, or (v) the death of Participant (unless the Participant's household, occupying the property, contains more than one qualified participant and at least one qualified participant survives). b) Exception to repayment provision. Accrued interest shall be due and payable upon sale of the Property only if, at the time of sale, the sales price of the Property is equal to or greater than the amount of the original purchase price plus five percent (5%) of that amount per year for every full year of ownership, starting at the close of escrow described in paragraph one (1) herein, and any pro rata share applicable to any portion of a remaining year. 4. , Notice to City. Participant agrees to notify the City not less than thirty (30) days prior to (i) the sale or transfer of the Property or (ii) any refinancing of the lien of the Deed of Trust (the "First Mortgage") or any lien to which the lien of the Deed of Trust is subordinate. S. Occu anc Standards. The Property shall be used as the personal residence of Participant and Participant's immediate family and for no other purpose. Participant shall not enter into an agreement for the rental or lease of the Property. 6. Income Information. Participant has submitted an eligibility verification form to the City prior to execution of this Agreement. Participant represents and warrants to the City that all information Participant has provided and will provide in the future is and will be true, correct and complete. Participant acknowledges that the City is relying upon Participant's representations that Participant's income does not exceed 120% of the area median income and would not have entered this Agreement if Participant's income exceeded 120% of the area median income. 7. First Time Homebuyer. Participant represents and warrants to the City that neither Participant nor any of Participant's immediate family residing in the Property has, or has had, a present ownership interest in a principal residence at any 3 �Lwnkk%83093/11:12 ► M time during all or any part of the three (3) years immediately prior to the funding of the City Loan. S. 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. 10. Covenants. Recorded in the Official Records of Orange County, California, is a declaration of conditions, covenants and restrictions for property, which is known as an Affordable Housing Agreement or covenants which may be attached as Exhibit "D" hereto and incorporated herein. If such a document is recorded on the property, Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in the Affordable Housing Agreement, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry, all as set forth in the Affordable Housing Agreement. Such affordable housing covenant -J is not (Borrower's initials ) applicable to this property. If no overall affordable housing covenant is recorded or will be recorded on the property, Borrower agrees to execute an individual affordable housing agreement with the City, which will be attached to this Agreement and incorporated herein by this reference. 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 4 TmemolLoankN3093111:12 AM LIM Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the City to matte 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 provisicns of coverage. The copy of the certificate of insurance and loss payee endorsement shall be transmitted to City as follows: City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Attn: Department of Economic Development Any certificate of insurance must be in a form approved by the City Attorney. 14. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may no: institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving 5 7VmrnoX,oankM 3M3111:12 AM iE such notice shall not constitute a waiver of any default, nor shall it change the time of default. 15. Documents. Participant is aware that the City has prepared certain documents to implement the Program and secure repayment of the Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Loan: (a) Disclosure Statement (b) Promissory Note; (c) Deed of Trust; and �S■ 1!►��f�����i ��Dr �ii�r�ii���aii��t�f ��►tlH�11 �►MII�J1��1 (e) Notice of Right of Recission Participant agrees and acknowledges that the Deed of Trust, Loan Disclosure Statement and the Affordable Housing Agreement shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. Participant further agrees to all terms and conditions set forth in the Disclosure Statement which is hereby incorporated as if fully set forth herein. 16. Further Assurances. The Participant shall execute any further documents consistent with the terms of this Agreement, including documents in recordable form, as the City shall from time to time find necessary or appropriate to effectuate its purposes in entering into this Agreement and malting the Loan. 17. Governing Law. This Agreement shall be governed by the laws of the State of California. Any Segal action brought under this Agreement must be instituted in the Superior Court of the County of Orange, State of California, in an appropriate municipal court in that county, or in the Federal District Court in the Central District of California. 18. Amendment of Agreement. No modification, recession, waiver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and City. 6 74nem XLwnWZ3093111.12AM 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 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: ev •t, u.. To City: City of Huntington Beach Attention: Department of Economic Development 2000 Main Street Huntington Beach, CA 92648 Either party may change its address for notice by giving written notice thereof to the other party. 7 rv*m U.wnkkU=3l11:12 Ard CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No. 5907 -a State of U�Wku_o..' County of-13 On I Qq before me, _ �1,�-fit-- A • KsejSXk1, �cFu{�ule� DATE NAME. TITLE OF OFFICER - E.G.. JANE DOE, NOTARY PLVLc, personally appearedn�1 VLA-e- &cC4J A ) OF SIGNER(S) ,2�personally known tome - 0 d o-m"rrthe- basis -of Isfacto"vidence- to be the person(s) whose name(A)�B/afe subscribed to the within instrument and ac- knowledged to me that •#a Fi /Ihey executed the same in 4tisktiFF/the f authorized OFFICIAL NOTARY SEAL capacity(ies), and that by •his er their LAURA A. NELSON 4NavyPublIc—CaSiomla signatureN on the instrument the person(sL ORANGE COUNTY 4- Irco"rl-Ex085j LoetM or the entity upon behalf of which the personM acted, executed the instrument. WITNE s-rrty hand and official seal. SIGNATURE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(5) I] GUARDIAN/CONSERVATOR OTHER: SIGNER IS REPRESENTING: NAME OF PERSONIS) OR ENTRYQES) _Tr DESCRIPTION OF ATTACHED DOCUMENT L6-V-1 4n2��Lw&-,J_ TITLE OR TYPE OF DOCUMENT — . - (f NUMBER OF PAGES KO DATE OF DOCUMENT 61t1 iLtczr SIGNER(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION - 8236 Remmet Ave., P.O. Box 7184 -Canoga Park, CA 91309-7184 y CALIPORNIA ALL-PURPOSE ACKNOWLEDGMENT �•/ No.sx, State of �^ County of On _ ,3 /%�� before me, DATE 6ME, TrrLE OF OFF ER - E.G.. JANE DOE. NOTARY PUBLIC personally appeared , NAME(S) OF SIGNER(S) personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person(-} whose namef* isfere- subscribed to the within instrument and ac- knowledged to me that belshelthey executed the same in t4slherlthe+r- authorized capacity(ieo, and that by 14E0her/thei-r- signature(eo on the instrument the persons), or the entity upon behalf of which the .�.UNDA SIX ►a person(o acted, executed the instrument. ORANGE COto Nh C0�^ tee; WITNESS my hand and official seal. ^t,�tt 21. 1995 S16RATURE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑� IND(DUAL CJ�CORPOSATE OFFICER a MUM) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAWCONSERVATOR ❑ OTHER: DESCRIPTION OF ATTACHED DOCUMENT CSC e cX-,W TITLE OR TYPt OF DOCUMENT P NUMBER OF PAGES -57- s/ lfz DATE OF OCUMENT S:GNE13 IS REPRESENTING: K;JfE RSON(S) OR pES)?2 Z2_ SIGNER(S) OTHlfR THAN NAMED ABOVE C1993 NATIONAL NOTARY ASSOCIATION • 8236 Remmel Ave., P.O. Box 7184 • Canoga Park. CA 91309-7184 � f 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. 0+ F � IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. Date: JUNE 1, 1994 Date: Date: APPROVED AS TO FORM: By: City Attorney 0 By. Print Name: CITY OF HUNTINGTON BEACH, a municipal corporation Mayor ATTEST: By: City Clerk 7\memo\Loankk\83093/11:12 AM V -4. Z AM E �I ,� C.0 } STATE OF CALIFORNIA )ss. COUNTY OF ORANGE On JUNE 1, 1994 , before me, SALPY GIRAGOSSIAN , personally appeared VALERIE --A. HASTOU , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his,'her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hanond official Signature SAtPY GIRAGOSSIAN= CC:.1% J * 1022263 CO GAr Canm. Erns AOn1ORANGE COLN" 3.1998 (This area for ofl'ciat no• Title of Document LOAN AGREEMEM Date of Document Other signatures not acknowledged No. of Pages 3006 (IS41 (General) First American Title Insurance Company LOAN AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this FIRST day U`. 19 _ by and between ("Participant") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body, corporate and politic ("Agency"). RECITALS A. Participant has entered into an agreement (the "Purchase Agreement") to purchase that certpin real property commonly known as im ujmt& Huntington Beach, Califomia, and more particularly described in Exhibit "A" attached hereto and incorporated herein (the "Property"). B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and currently earns less than 120% of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to 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 Bea:h, all of which is consistent with the goals of the Affordable Housing Program and the Huntington Beach Redevelopment Plans. Tagree\Agencyk'05R7194 E. The Agency wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: 1. the amount of 1") Dollars ($d ), subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note, the Disclosure Statement for the Program, the Deed of Trust and all applicable state, local and federal laws. The Loan shall be paid to the seller of the Property (the "Seller") by the Agency through deposit of the Loan proceeds into escrow with (the "Escrow Agent") (Escrow No. t- � . The Agency s ail direct the Escrow Agent to apply the proceeds of the Loan on behalf of Participant to the purchase price of the Property, and, at Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees, and/or document fees. At such time, Participant shall execute and deliver to the Agency a promissory note in favor of the Agency as holder, in the amount of the Loan, with interest at five percent (5%) per year. The Loan, together with accrued interest and the equity share amount, shall be due in the event that Participant fails to comply with the terms of this Agreement, the Deed of Trust and Rider thereto, any Covenants, Conditions & Restrictions for Affordable Housing or Affordable Housing Agreement which is recorded on the Property, or any other law, requirement or condition of the Affordable Housing Program or governmental entity. Otherwise, no payment of principal or interest shall be required during the term of the Loan and, on the date which is thirty (30) years from the date of the disbursement of the Note Amount, the Borrower shall repay the entire Note Amount plus all accrued interest earned thereon, unless the sale is made to a qualified buyer, as provided in Section 4 below. 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 2 7lagreelAgencykW-v27194 encumbering the Property which shall secure the Promissory Note (the "Deed of Trust"), in the form of Exhibit "C" attached hereto and incorporated herein. 2. Maintenance of Property. Participant shall maintain the improvements on the Property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowners association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws. 3. Acceleration/Due on Sale. The Loan, all interest accrued thereon and the equity share amount as defined herein below, shall be due and payable upon (i) sale, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, except sale to a purchaser approved by Agency, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for an amortization period longer than the loan secured by the First Mortgage, or, (iii) Participant is in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant (Attachment "D" to this Agreement) recorded on the property, or (iv) Participant violates any condition of the deed of trust or promissory note, or (v) the death of Participant (unless the Participant's household, occupying the property, contains more than one qualified participant and at least one qualified participant survives). At the request of Participant, the Agency may, in its sole discretion, extend the term of the Loan. 4. New Loan to Qualified Bum. 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 3 7lagree ftencykW/27rs4 Participant's loan, then no Equity Share Amount is due to the Agency upon such sale and intrest is due under the conditions set forth below. In order to verify the Buyer's status as an Eligible Person or Family. Participant shall submit to the Agency, together with the notice of proposed sale pursuant to the Loan Agreement, the identity of the proposed Buyer and adequate information evidencing the income of the proposed Buyer. Said income information shall include original or true copies of pay stubs; income tax records or other financial documents in order that the Agency may determine and verify the household income of the proposed Buyer to determine Eligible Person or Family status and whether the Property is available to such Buyer at an affordable housing cost pursuant to the standards set forth in the Agency's Affordable Housing Program. If the Agency is unable to verify the Buyer's income as provided herein, then the Buyer's income shall be deemed to exceed the maximum allowable income limit for Eligible Persons and Families and the Equity Share Amount shall be due and payable concurrent with the repayment of the Note Amount plus interest. In the event that sale or transfer is made to an Eligible Person or Family, interest which has accrued upon close of escrow shall be due and payable, unless the Property has appreciated in value by an amount which would be less than the value of the Property had it appreciated at a rate of five per cent (5%) per year (plus the prorata amount for any portion of a year) over the original price paid by the Participant. If the price of the Property upon sale to an Eligible Buyer is less than the price paid by the Participant at the time of original purchase, plus five percent (5%) of that amount for each full year of ownership plus a prorata share of any portion of a year remaining, then no interest will be due upon such sale. Interest will begin to accrue at the simple rate of five percent per annum as to the new owner, on the date upon which escrow closes and will accrue on the then unpaid principal amount. 5. Notice to Agency. Participant agrees to notify the Agency not less than thirty (30) days prior to (i) the sale cr transfer of the Property or (ii) any refinancing of the lien secured by the First Deed of Trust (the "First Mortgage) or any lien or note to which the lien secured by the First Deed of Trust is subordinate. 6. Occupancy Standards. The Property shall be used as the personal residence of Participant and Participant's immediate family and for no 4 7lagreeiAgencykM27194 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 120% of the area median income and would not have entered into this Agreement if Participant's income had exceeded 120% of the Orange County median income. 8. First Time Homebu eer. Participant represents and warrants to the Agency that neither Participant nor any of Participant's immediate family residing in the Property has, or has had, a present ownership interest in a principal residence at any time during all or any part of the three (3) years immediately prior to the funding of the Agency Loan. 9. Loan Servicing. The Agency may contract with a private lender to originate and service the Agency Loan. 10. Participant Financing. Participant shall obtain financing for the purchase of the Property from a reputable institutional lender approved by the Agency (the "Lender"). The lien secured by the Deed of Trust shall only be subordinate to a first lien on the Property held by the Lender or Lender's assigns. In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 11. Covenants. Recorded in the Official Records of Orange County, California, may be a declaration of conditions, covenants and restrictions for property, which is known as an Affordable Housing Agreement or covenants which may be attached as Exhibit " M hereto and incorporated herein. If such a document is recorded on the property, Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in the Affordable Housing Agreement, and that Participant shall not discriminate 5 7lagree%Agencyk/05127194 V 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. Such affordable housing covenant 0 is 0 is not (Borrower's initials _( ) applicable to this property. If no overall affordable housing covenant is recorded or will be recorded on the Property, Borrower agrees to execute an individual Affordable Housing Agreement with the Agency which will be attached to this Agreement and incorporated herein by this reference. 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 of the Agency Deed of Trust: 2. After fifth anniversary but prior to sixth anniversary: 3. After sixth anniversary but prior to seventh anniversary: 4. After seventh anniversary.but prior to eighth anniversary: 5. After eighth anniversary but prior to ninth anniversary: 6. After ninth anniversary but prior to tenth anniversary: 7. After tenth anniversary but prior to eleventh anniversary: 6 PagreeWgencykM27194 fifty percent (50%) forty-eight percent (48%) forty-six percent (46%) forty-four percent (44%) forty-two percent (42%) forty percent (40%) thirty-eight percent (38%) 8. After eleventh anniversary but thirty-six percent (36%) prior to twelfth anniversary: 9. After twelfth anniversary but thirty-four percent (34%) prior to thirteenth anniversary: 10. After thirteenth anniversary but thirty-two percent (32%) prior to fourteenth anniversary: 11. After fourteenth anniversary but thirty percent (30%) prior to fifteenth anniversary: 12. After fifteenth anniversary but twenty-eight percent prior to sixteenth anniversary: (28%) 13. After sixteenth anniversary but twenty-six percent prior to seventeenth anniversary: (26%) 14. After seventeenth anniversary but twenty-four percent prior to eighteenth anniversary: (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: 16. After nineteenth anniversary but prior to twentieth anniversary: 17. After twentieth anniversary but prior to twenty-first anniversary: twenty-two percent (22%) twenty percent (20%) eighteen percent (18%) 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: 7 71agre64gencyM)SC7194 21. After twenty-fourth anniversary but ten percent (10%) prior to twenty-fifth anniversary: 22. After twenty-fifth anniversary but eight percent (8%) prior to twenty-sixth anniversary: 23. After twenty-sixth anniversary but six percent (6%) prior to twenty-seventh anniversary: 24. After twenty-seventh anniversary but four percent (4%) prior to twenty-eighth anniversary: 25. After twenty-eighth anniversary but two percent (2%) prior to twenty-ninth anniversary: 26. After twenty-ninth anniversary but one percent (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, title insurance costs, broker's commission, loan fees or any other closing or transaction costs. The "Sales Price" is the price to be paid by the buyer of the Property (the "Buyer") to Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. In the event of sale of the Property and at the election of the Agency, the Agency may appoint a certified, independent appraiser to conduct any appraisal of the Property, at Participant's expense to, assist the Agency in determining if the Sales Price is at or near the fair market value of the Property at such time. If the Sales Price is determined by the appraisal to be three percent (3%) or more below the fair market value of the Property as estimated in said appraisal, then 8 71agree%gencykM5'27194 IM the "Sales Price" for purposes of determining the Equity Share Amount shall be the fair. market value of the Property established in said appraisal. PARTICIPANT ACKNOWLEDGES AND AGREES THAT UPON THE OCCURRENCE OF ANY OF THE EVENTS DESCRIBED IN PARAGRAPH 3 ABOVE, PRIOR TO THE 30TH ANNIVERSARY, PARTICIPANT SHALL PAY TO AGENCY AN EQUITY SHARE AMOUNT EQUAL TO A PERCENTAGE SHARE OF THE APPRECIATION OF THE PROPERTY AS CALCULATED PURSUANT TO THIS SECTION. EXCEPT AS PROVIDED HEREIN, THE AGENCY ACKNOWLEDGES AND AGREES THAT PARTICIPANT SHALL ONLY PAY THE NOTE AMOUNT AND THE EQUITY SHARE AMOUNT TO THE AGENCY IF, AND ONLY IF, PARTICIPANT FAILS TO CONTINUOUSLY OWN AND OCCUPY THE PROPERTY FOR THIRTY (30) YEARS, PARTICIPANT FAILS TO COMPLY WITH THE PROVISIONS OF THIS AGREEMENT, OR PARTICIPANT SELLS THE PROPERTY TO A BUYER NOT QUALIFIED BY THE AGENCY. PARTICIPANT AGENCY The value of all capital improvements to the Property made while Participant owned and occupied the Property shall be deducted from the Sales Price when calculating the Equity Share Amount, if Participant complies with the following: The costs incurred by the Participant for capital improvements shall be deducted from the Sales Price only if Participant submits the following to the Agency: (i) an itemized list of the improvements, (ii) reliable proof of completion of the improvements (as evidenced e.g., by final building permits or certificate of completion), and (iii) reliable evidence of the cost of the improvements and that Participant paid those costs (as evidenced e.g., by an itemized invoice or receipt). Notwithstanding the foregoing, Participant's obligation to pay the Equity Share Amount is subject to a superior right of Participant, upon termination of the Agency Loan, to receive repayment of money paid by the Participant without Agency assistance for purchase of the Property (including down payment, 9 7lagree)AgencykV5r 7194 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 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 10 T4gree\Agencyk10W71 ]4 Huntington Beach, CA 92648 Any certificate of insurance must be in a form approved by the City Attorney. 16. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required to protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 17. Documents. Participant is aware that the Agency has prepared certain documents to implement the Affordable Housing Program and secure repayment of the Loan. Participant has reviewed and agrees to the terms and conditions contained in the following documents prior to receiving the Loan: (a) Disclosure Statement (b) Promissory Note; (c) Deed of Trust; and (d) The Affordable Housing Agreement (Exhibit "D"). (e) Notice of Right of Recission Participant agrees and acknowledges that the executed Deed of Trust, Disclosure Statement and the Affordable Housing Agreement shall be recorded with the County Recorder of the County of Orange and shall appear of record with respect to and as encumbrances to the Property. �1 7lagreelAgencykl=T94 V U 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. 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. 12 ZagrWAgencyk,M 27/94 V 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:f:�J*tk— Ai'il To Agency: THE REDEVELOPMENT AGENCY OF The City of Huntington Beach Attention: Executive Director 2000 Main Street Huntington Beach, CA 92648 Either party may change its address for notice by giving written notice thereof to the other party. 26. Term of Agreement. Except as may be provided herein, the term of this Agreement is thirty (30) years commencing on the date of execution. 27. 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. 13 7lagree%gencykl MV,'94 CA'LIFORNIA ALL-PURPOSE ACKNOWLEDGMENT LIM No. SW? M State of County of 4n t Lit before me, Q. Messml NE!:mr P,1;-,L DATE NAME, TITLE OF OFFICER - E.G.,'IANE DOE, NOTARY PbBW personally appeared C`7-n{'�e- 6-y-nJe_ �� - .._ NAME SIGNERS) personally known to me - 4#t---0-proved--to-me an the-bs-of-satisfactory-evidence to be the personN whose name) is are subscribed to the within instrument and ac- knowledged to me that .he/(9/the} executed the same in -hit Ie /ttvek authorized OFFICIAL NOTARY SEAL c a p a c i t y (+es) , and a t by h e ffteif A LAuRA A. NELSON WLly signature) on the instrument the person(sy,Nataty Public—Carlomia oR/uy3ECOUYTY or the entity upon behalf of which the Conx*',. Expkes JUL ae.1s93 person•(s) acted, executed the instrument. WITN S my hand and official seal. 51GNATURE OF NOTARY OPTIONAL Though the data below Is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT ❑ INDIVIDUAL ❑ CORPORATE OFFICER INW �rii pJ— + 4ol ,1 fi�A h ¢3 TIT!! OR TYPE OF DOCUMENT TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAUICONSERVATO OTHER. iC t6 SIGNER IS REPRESENTING: N OF PERSON(S) OR EENU YVES) n 1 A5 NUMBER OF PAGES mo =� DATE OF DOCUMENT Li r�A kcmt6 - pattLrlr CI-X — SIGNER(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION - SM Remmet Ave., P.O. Box 7184 - Canoga Park. CA 91309-7184 V- OR 28. Non -Discrimination. The Participant, on behalf of itself and its successors, assigns, and each successor in interest to the Site or any part thereof, hereby covenants and agrees: (a) To use, devote, operate and maintain the Site and each part thereof, for the purposes and the residential uses specified in the conditional use permit. (b) Not to discriminate upon the basis of sex, marital status, race, color, creed, religion, national origin, or ancestry in the sale, lease, sublease, transfer or rental, or in the use, occupancy, tenure, or enjoyment of the Site or any improvements thereon, or of any part thereof. Each and every deed, entered into with respect to the Site shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (1) The grantee herein covenants by and for itself, its successors and assigns, and all persons claiming under throiugh them, that there shall be no discrimination against or segregation of any person or group of persons on account of sex, marital status, race, color, creed, religion, national origin, or ancestry in the sale, lease, rental, sublease, transfer, use occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee itself or any persons claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the land herein conveyed. The foregoing covenants shall run with the land. 14 ZagreelAgencyM)5Z27194 V -. CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT V No. 59o7 State of County of On 3 before me, , D E r%� NAME. TITLE OF OFFICER - E.G..' IANE DOE. NOTARY PUBLIC' personally appeared NA14EISI OF SIGNER(S) personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence OFfCAL SEAL LINDA SUE SURACI Notary PUNC-CallrorNC, ORANGE COUNTY KM Cwwsslon Egft, AugLut 21. 1995 to be the person(*whose name(-e) isAwe- subscribed to the within instrument and ac- knowledged to me that s eh day executed the same in _h4elherAbei-r- authorized capacity(Te-&), and that by .his/her/t+re4r- signature(s) on the instrument the personft or the entity upon behalf of which the persons} acted, executed the instrument. WITNESS my hand and official seal. SIGNATURE OF NOTARY n OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL GAO ORATE OFFICE TRLEIS) ❑ PAM_ ER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAMCONSERVATOR ❑ OTHER: DESCRIPTION OF ATTACHED DOCUMENT �d-x- 6CI^-� �4C4 TITLE OR TYPE F D UMENT NUMBER OF PAGES DATE OF DOCUMENT SIG ER IS RfPRESIENTING: itPERSON(S) W EMTITYUES) G SIGNER(S) OT ER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION - 8236 Rommel Ave„ P.O. Box 7184 -Canoga Park. CA 91309-7184 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. Date: Date: APPROVED AS TO FORM By: % ency Counsel 7\ag ree\Agencyk/05/27/94 "PARTICIPANT" By: Print Name: Z:: f ace - Title: Print Name: Title: REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH Chairperson ATTEST: B y 19 5=3 gency Clerk 15 IN AMERI I STATE OF CALIFORNIA }ss. COUNTY OF ORANGE } On JUNE 1, 1994 personally appeared before me, SALPY GIRAGOSSIAN VAL'ERIE A. BASTOU personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and off iciAl seal. Signature (This area for official notarial seal) ... SALPY GIRAGOSS{AN co ,, COMM. # 9022263 NOTARY PUBLIC - CALIFORNIA MANGE COUNTY MY COMM. Expires April 3, ma *� Title of Document LOAN AGREEMENT Date of Document No. of Pages Other signatures not acknowledged 3008 (1/94) (General) First American Title Insurance Company Recording Requested B And When Recorded eturn To: Redevelopment A ncy of the City of Hunting Beach 1vk -k.U%QQ 2000 Main S eet Huntingto each, CA 92648 Attn: C• y eAiIV, RECEIVED CITY CLERK CITY or HUKTIH,TG`+ BEACH. CALIF. Auc 8 337 PM 'Sq THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH LOAN DISCLOSURE STATEMENT IMe valitv�t, ("Applicant") understand and agree that the provision of financial assistance from The Redevelopment Agency of the City cf Huntington Beach ("Agency") is conditioned upon a number of factors, including, but not limited to: • I We must qualify for a home loan from an institutional lender acceptable to the Agency. • I/We must pay at least 3% of the home purchase price from our own funds. • IM/e must qualify for assistance under the guidelines of the Agency's Program. I/We further understand and agree that: • I/We will be responsible for repaying the loan at the time tlwe 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 mylour 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 Tldiscls105127/94 • The Agency will not require melus to make payments of principal or interest during the term of the ]can. The full balance of principal and interest may be due and payable if Itwe 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 Ilwe purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The 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 1/we desire to be considered for the Program, and Itwe 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 Ucxhwsmroa • The Agency financial assistance llwe 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 lhve may incur by virtue of the receipt of such financial assistance. Dated: nu 1 1, 1994 Signature of applicant Dated: Signature of applicant Dated: Signature of applicant APPROVED AS TO FORM: Agency Counsel �,9 � + .5�"-JJA 'V s,� 3 Recording Requeste By And When Recor d Return To: City of Huntin n Beach 2000 Main reet Huntin n Beach, CA 92648 C/dl-K RECEIVED CITY CLERK CITY or HUNTINCTCN BEACH. CALIF. Auc 8 337 PM '54 CITY OF HUNTINGTON BEACH LOAN ASSISTANCE DISCLOSURE STATEMENT IlWe _ ya Ly t jaf t ADD G---, _ ("Applicant") understand and agree that the provision of financial assistance from The City of Huntington Beach ("City") is conditioned upon a number of factors, including, but not limited to: • IIWe must qualify for a home loan from an institutional lender acceptable to the City. • IIWe must pay at least 3 % of the home purchase price from our own funds. • IIWe must qualify for assistance under the guidelines of the City's Program. I/We further understand and agree that: • IIWe will be responsible for repaying the loan at the time llwe sell, transfer, refinance, or no longer occupy mylour home, or breach any part of the Loan Agreement. • IfWe have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to rescind or cancel the loan to: City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 9264E Attn: Department of Economic Development 7► ix1s\051271W 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 Ilwe purchase with such assistance including, but not limited to, any loan fees or charges, any charges for appraisals, or any escrow costs or other costs relating to the transfer of property. • The City cannot ensure that information provided by or on behalf of Applicant will be kept confidential. The City shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. Ilwe assume all responsibility for determining whether llwe desire to be considered for the Program, and Ilwe will inform myselflourseIves 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 na;xsws/27194 • The'City financial assistance Uwe 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: JuNE 1. 1994 Signature of applicant Dated: Signature of applicant Dated: Signature of applicant APPROVED AS TO FORM: City.,Attorney s3 3 naixlsw5127194 ............ PROMISSORY NOTE 41" Lh 41 Property Address - Huntington Beach, California JUNE Z , 1994 1. Promise to Pay. �J1 Cr {�i��� ("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 d signa a in wr' ' g, the rincipal Z of Dollars ( the "Note Amount"), together with interest. The balance of all unforgiven unpaid principal and accrued interest shall be due and payable upon sale of the Property or upon occurrence of the other events listed in the acceleration clause herein. 2. Interest Rate Interest shall be charged by the Agency on the portion of the Note Amount remaining unpaid from time to time, from the date of the disbursement of the Note Amount�luntil the date upon which the Note Amount is repaid, at the simple rate of five percent 15%) per annum. In the event that Borrower transfers the Property to a Buyer qualified to participate in the Agency's Affordable Housing Loan Program and approved by the Agency ("Qualified Buyer"), and the Property has appreciated in value by an amount which would be equal to or greater than the sales price of the Property to the qualified Buyer plus five percent (5%) of the original price added to each year of ownership, plus any prorata share of a portion of a full year which might remain at the time this is calculated, then, all accrued interest which would then have been due and payable if the Borrower were in default will be paid on the date upon which escrow closes; however, no equity share amount shall be due. Interest at the rate of five percent (5%) per annum will begin to accrue as to the new Buyer on the remaining principal from the date upon which escrow closes and all interest thereafter accrued will be due and payable at the same time the Note becomes due and payable, unless the new qualified Buyer assumes the Loan. 3. Affordable Housing Agreement This Promissory Note is made and delivered pursuant to and in implementation of an Affordable Housing Agreement recorded on the property as a covenant binding upon Borrower (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference, and a Loan Agreement between Borrower and Agency dated 6/1/94 . 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 7Aoandoclagencypromnoto/05/27/9-1 part, including, without limitation, the lease, exchange or rental of the Property or any interest therein, whether voluntary or involuntary; (b) Borrower refinances any lien or encumbrances to which the Agency Deed of Trust is subordinate for loan amount in excess of the then current loan balance secured by such lien or encumbrance; (c) Borrower fails to occupy the Property as Borrower's principal residence pursuant to the Loan Agreement or is in 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 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 Barrower and all guarantors and endorsers hereof hereby severally waive certain requirements of the Agency. These are: a) to demand payment of amounts due (known as "presentation for payment"), b) to give notice that amounts due have not been paid (known as "notice of dishonor") and c) to obtain an official certification of nonpayment (known as "protest"). Borrower consents that the Holder hereof may extend the time of payment or otherwise modify the terms of payment of any part or the whole of the debt evidenced by this Note, by agreement between the Holder and Borrower, and such consent shall not alter or diminish the liability of any person or the enforceability of this Note. Each and every party signing or endorsing this Note binds itself as a principal and not a surety. In any action or proceeding to recover any sum herein provided for, no defense of adequacy of security, or that resort must first be had to security or to any other person shall be asserted. All of the terms, 2 7AoandocIagencypromnote/05127194 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 Agency, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal owing hereunder as if such unpaid attorney fees and costs have been added to the principal. 10. Security of Note This Note is secured by a Deed of Trust (The "Deed of Trust") of even date herewith executed by Borrower covering property located in Orange County, State of California, together with the buildings and improvements now or hereafter erected thereon. 11. Maximum Interest No provision of this Note or any instrument securing payment hereof or otherwise relating to the debt evidenced hereby shall require the payment or permit the collection of interest in excess of the maximum permitted by applicable law. If any excess of interest in such respect is herein or in such other instrument provided for, or shall be adjudicated to be so provided for herein or in any such instrument, the provisions of this paragraph shall govern, and neither Borrower or any endorsers of this Note nor their respective heirs, personal representatives, successors or assigns shall be obligated to pay the amount of such interest to the extent it is in excess of the amount permitted by applicable law, 12. Business Purpose The undersigned warrants and represents that all funds advanced under this Note shall be applied and are intended solely for personal, family or household purposes as set forth in the Agreement and not for any business or commercial purposes. 13. Notice Any demand or notice to be made or given under the terms hereof or any instrument now or hereafter securing this Note by the Holder to Borrower shall be effective when mailed or delivered in the manner specified in the Deed of Trust. 14. Payments 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. All interest shall be due at the time the Note becomes due or upon sale to a qualified Buyer, if the Property has appreciated in value by 5% or more per year over the original purchase price. 3 7Aoandoclagencypromnote105127194 CALIFORNIA ALL-PURPOSE AG..NOWLEDGMENT No. 5907 ., State of abArha /� County of CgVC_t_� On ql q before me, Lut,-GL A I I\ids vt. N 6fz� 1 u-10 DATE 2 NAME, TITLE OF OFFICER - E.G., -JANE OE, NOTARY PU LIC- personally appeared wit -� f 3Ya L�_W! `'1 NA ) OF SIGNER(S) personally known to me - actory-evidence to be the person(s) whose name( rs/a-He- subscribed to the within instrument and ac- knowledged to me that -he(�D/may executed the same in -has a /tb-e-ir authorized OFFICIAL NOTARY SEAL capacity(4,&s), and that by Firs/ er/th-e-ir LAURA A. NELSON signature( on the instrument the person(4 Notary Public — calirni 'oa P ORANGE COUNTY or the entity upon behalf of which the My Co;nm. Ex;*es JUL 08.1995 person, acted, executed the instrument. WITNE,� my hand and official seal. SIGNATURE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN/ NSERVATOR / © OTHER: e('A SIGNER IS REPRESENTING: NAME OF PERSONS) OR ENTITY(IES) e. C' DESCRIPTION OF ATTACHED DOCUMENT j�,�vwcsSar TITLE OR YPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT Lin, 6- (SaJ A.t�M_ SIGNER(S) OTHER THAN NAMED ABOVE ©1993 NATIONAL NOTARY ASSOCIATION - 8236 Remmet Ave., P.O. Box 7184 - Canoga Park, CA 91309-7184 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No. 5907 N State of County of (&4A -2, o , On /qbefore me, DA r 1-12 NAME, TITLE OF OFFICER - E.G., "JANE DOE, NOTARY PUBLIC - personally appeared 4. - �'C2., ti.+�.� , �� NAME(S) OF SIGNER(S) Ef personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person(- whose name* is/am subscribed to the within instrument and ac- knowledged to me that+re/she/ � executed the same in k+�her4h- authorized capacity(ie , and that by *4-s/her/+h-eir OFFICIAL SEAL si nature on the instrument the erson UNDA SUE SURACI signature(* p Ea llotary PubHC-CCBfCrrJ0 or the entity upon behalf of which the ORANGE COUNTY my, Commsdon Expke. personfs)-'acted, executed the instrument. August 21. 1995 WITN SS my hand and official seal. / SIGNATURE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER �❑� �INDIVIDUAL 141 ORPORATE OFFICER TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: SIG R IS REPRESENTING: AM F PERSON(S) R ENTITY(IES) — DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT SIGNER(S) OTHEK THAN NAMED ABOVE ©1993 NATIONAL NOTARY ASSOCIATION - 8236 Remmet Ave., P.O. Box 7184 - Canoga Park, CA 91309-7184 i IN WITNESS HEREOF, this instrument has been executed as of the date set forth below. SIGNATORY DATE: By "Borrower" DATE: APPROVED AS TO FORM: XJ_JkL,del-I A ,a,,�4 Agency Counsel 5� 31-9� 4 MA "Borrower" REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH Chairperson ATTEST: Agency Clerk 7/loandoc/agencypromnote/05/27/94 All .� A M E � � ) STATE OF CALIFORNIA ORAME )ss. COUNTY OF On JUNE 1, 1994 , before me, SALPY GIRAGOSSIAN , personally appeared VALERIE A. BASTOU personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are Subscribed to the within instrument and acknowledged to me that helshe/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand Signature SALPY GIRAGOSSIAN= a COMM. # 1022263 C3 NOTARY PUBLIC •CALIFOANIA 3] ORANCE COUNTY •A WComm, Exorejl�pnt3.199s (rhis area for official notariit seal) Title of Document PROMISSORY NOTE Date of Document Other signatures not acknowledged No. of Pages 3ooB (1194) (General) First American Title Insurance Company Property Address PROMISSORY NOTE Huntington Beach, California JWE 1 , 1994 1. Promise to Pay. 'ellC ("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 Diate asthe Holder i ay designate in writing, the principal sum of 11� Dollars O (the "Note Amount"), together with interest. The balance of all unforgiven npaid 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 rate of five percent (5%) per annum. 3. Affordable Housing Agreement _This Promissory Note is made and delivered pursuant to and in implementation of an Affordable Housing Agreement recorded on the property as a covenant binding upon Borrower (the "Agreement"), a copy of which is on file as a public record with the Holder and is incorporated herein by reference, and a Loan Agreement between Borrower and City dated 6/1/94 . 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; 711oandockitypromnotol05127194 (4) The close of a probate estate following the death of Borrower (unless Borrower is more than one person and one or more of the other people comprising Borrower survive); (5) Borrower defaults on this promissory Note; (61 Borrower defaults on the Agency Deed of Trust. B. Exc Ption to Payment Requirement Accrued interest shall be due and payable upon sale of the Property only if, at the time of sale, the sales price of the Property is equal to or greater than the amount of the original purchase price plus added thereto five percent (5%) of that amount for every full year of ownership, since the close of escrow described in paragraph one (1) herein, plus any pro rata share applicable to any portion of a remaining year. In the event that there is a default in payment as scheduled herein or a default under the terms of the Deed of Trust securing this Note, or a default of the Agreement or in any other instrument executed by Borrower or any guarantor in favor of the City, the City may at its election declare all amounts of the outstanding principal and accrued interest thereon immediately due and payable. 5. Application of Payments Any sums received hereunder may, at the options of Holder hereof, be applied in any order to the payment of costs, interest, or principal due hereunder. 6. Prel2ayment 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. S. Borrower's Waivers The Borrower and all guarantors and endorsers hereof hereby severally waive certain requirements of the City. These are: a) to demand payment of amounts due (known as "presentation for payment"), b) to give notice that amounts due have not been paid (known as "notice of dishonor") and c) to obtain an official certification of nonpayment (known as "protest"). Borrower consents that the Holder hereof may extend the time of payment or otherwise modify the terms of payment of any part or the whole of the debt evidenced by this Note, by agreement between the Holder and Borrower, and such consent shall not alter or diminish the liability of any person or the enforceability of this Note. Each and every party signing or endorsing this Note 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. 2 Woendackitypromnote105127194 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 applicable to the principal owing hereunder as if such unpaid attorney fees and costs have been added to the principal. 10. Security of Note This Note is secured by a Deed of Trust (The "Deed of Trust") of even date herewith executed by Borrower covering property located in Orange County, State of California, together with the buildings and improvements now or hereafter erected thereon. 11. Maximum Interest No provision of this Note or any instrument securing payment hereof or otherwise relating to the debt evidenced hereby shall require the payment or permit the collection of interest in excess of the maximum permitted by applicable law. If any excess of interest in such respect is herein or in such other instrument provided for, or shall be adjudicated to be so provided for herein or in any such instrument, the provisions of this paragraph shall govern, and neither Borrower or any endorsers of this Note nor their respective heirs, personal representatives, successors or assigns shall be obligated to pay the amount of such interest to the extent it is in excess of the amount permitted by applicable law. 12. Business Purpose The undersigned warrants and represents that all funds advanced under this Note shall be applied and are intended solely for personal, family or household purposes as set forth in the Agreement and not for any business or commercial purposes. 13. Notice Any demand or notice to be made or given under the terms hereof or any instrument now or hereafter securing this Note by the Holder to Borrower shall be effective when mailed or delivered in the manner specified in the Deed of Trust. 14. Payments Deferred All interest and principal payments will be deferred so long as the Borrower is in compliance with the terms of this Note, the Affordable Housing Covenants or Agreements recorded on the Property, the Deed of Trust and the loan Agreement and uses the Property as his personal primary residence. 3 Ma ndocicitypromnote10512719 4 CALIFORNIA ALL-PURPOSE AL NOWLEDOMENT Nu 5W7 State of t •A,��L'Y►'u County of On 4 DATE personally appeared before me, L&xyo g, ae sal KoPja L�, NAME, TTTLE OF OFFICER - E.G.. 'ANE DOE, NOTAQJ PUBLIC- OF SIGNER(S) personally known to me - OR--improved-to-me-on-the-basis-W-satisfactory-evidencLy' to be the person() whose nameW&am subscribed to the within instrument and ac- OFFICIAL NOD knowledged to me that be/&Jthey executed xr LAURAA.the same in *s oer/thef-r authorized ca acit (ies and that by -h+s/ l e thou ORANGE p ytoyCo,rxe.Expksignaturefs) on the instrument the person); or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. SIGNATURE OF NOTARY t OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER ME(S) ❑ PARTNER(S) ❑ LimlTED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) GUARDIAN, 0 SERVATO L� OTHER:-_i _IGNER IS REPRESENTING: AAME OF PER$ON(S) OR E4d11TY(rES) � A DESCRIPTION OF ATTACHED DOCUMENT err'�SS %10 , TITLE OR PE OF DOCUMENT q- NUMBER OF PAGES DATE OF DOCUMENT SIGNERS) OTHER THAN NAM D ABOVE C1993 NATIONAL NOTARY ASSOCIATION • 8236 Remmet Ave., P.O. Box 7184 - Canoga Park, CA 91309-7184 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of County of On before me, DOE NAME. TITLE OF OFFICER - E.G..'JANE VOE. NOTARY PUBLIC' personally appeared �>✓ , SAME(S) OF SIGNER(S) personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person{A whose names} isftre— subscribed to the within instrument and ac- knowledged to me that he/she/they executed the same in 14s/herftTr + authorized capacity(tesT and that by_W-9/her/the-ir signature(}- on the instrument the person(o, or the entity upon behalf of which the ,... AAp person( acted, executed the instrument. Notary Pic-CaHbrNa ORANGE COXM My C0'"WO&M E'er°' WITNESS m hand and official seal. AL90 21. 19" y SIGNATURE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER INDIVIDUAL CORPORATE OFFICER A. TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: <Z E PERSONS) NTTIYQES) / / / SIGNER(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIA-ION •" Remmet Ave., P.O. Box 7194 • Canoga Park. CA 913M7154 S IN WITNESS HEREOF, this instrument has been executed as of the date set forth below. DATE: a _ �� ATTEST: By: City Clerk 7/1oandoc/citypromnote/05/27/94 H SIGNATORY By "Borrower" "Borrower" CITY 017,HNTINGTON BEACH Mayor APPROVED AS TO FORM: By: rity Attorney al 41 5, -P AME RI STATE OF CALIFORNIA } o� }ss. COUNTY OF. } On JME 1, 1994 , before me, personally appeared VALERIE A. SALn GIRAGOSSIAN BASTOU , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his,'her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hard! a Signature. SALPY GIRAGGSSIAN= CONIM. a 1022263 m _., NOucrrORA-�+ma�weA �1 L41 Car". Expires Apr'J 5.199s (This area for otricial notarAiiao Title of Document PROMISSORY N= Date of Document No. of Pages Other signatures not acknowledged 300E 11.9a) JGeneras) First American Title Insurance Company -C ,WjGF;60AST TITLE of LOS f i:GELES S_'$nNISIQN DTPARTriE, �fJ i LcLE1` t1�i 4LY'l r RECORDING REQUESTED BY AND WHEN RECORDED RETURN:70: The City of Huntington Beach 2000 Main Street-SecvwJF/0o1` } Huntington Beach, California 92648 } Attn: City Clerk ) UDC # 94-0382970 07—JUN-1994 08:00 AM Recorded in Cfficial Records of Orans4 Ccuntyp California Lee A. Branch, County Recorder Faae I of 21 Fees: s 70,00 Tay.: S 4.00 ISpece Above This Line For Recorder's Use.l This document is exempt from recording fees pursuant to Govemment Code Section 6103. DEED OF TRUST WITH ASSIGNMENTS OF RENTS .THI EE OF TRUST is made this 1st day of JPME, 199 4, by and among whose address is Z at ; the "Trustor") and THE REDS ELOPMENT AGENCY OF THE ITY -01F HUN INGTON BEACH, a public body corporate and politic (the "Trustee") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "BENEFICIARY"), whose address is 2006 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 safe thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of S `acyo . co 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 71c11oandocici1ytd15127194 -j — V property when evidenced by another Promissory Note or Notes, or (b) as may be added to the indebtedness secured hereby in accordance with the provision of this Deed of Trust. 3. Performance of each and every obligation, covenant, promise or agreement of Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated JUKE 1 , 1994, and in that certain Affordable Housing Agreement currently recorded on the property, insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor -in -interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: 1. To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry -rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with all laws affecting such property or requiring any alterations or improvements to be made thereon; not to initiate or acquiesce in any zoning reclassification without Beneficiary's written consent; not to commit or permit waste thereon; not to commit, suffer or permit any act upon such property in violation of the law; and to paint, cultivate, irrigate, fertilize, fumigate, prune, and do all other acts that from the character or use of said property may be reasonably necessary; to promptly pay all amounts due others upon agreements of lease or conditional sale of all fixtures, furnishings and equipment located thereon. If the loan secured hereby or any part thereof is being obtained or should any additional loan be made hereafter for the purpose of financing rehabilitation improvements on said property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding; (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (i 5) 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 7%cVoandoc%ciWd15/27194 2 presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by.the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive ail 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 M to allow Trustor to agree with the insurance company or companies on the amount to be paid upon the foss. 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 ail 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.. Aclloandockity MI27194 3 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so 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. 7W1oandoc%c1trdl5/27/94 4 6. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c) join in granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The 7%6foa ndocWtytdt5127f94 5 grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re -assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Agency the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Agency any duty to produce rents from the property affected by this Trust Deed, or cause Agency to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Agency confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall 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, 7lcVoandocWtytd15127194 6 V shall not cure such breach or default not affect said sale proceedings, or. any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. 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 71c11oandoc1citytd15/27/94 7 all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this 'sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have 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 shail.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. 71cUoandocicitytd%5/27194 8 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 pclicy 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 any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. 71cVoandoc%citytdl5l27194 9 CALIFORNIA ALL-PURPOSE A49OWLEDGMENT 1 No. SW7 00, ' State of County of T �✓s- _ On o-e- before me, Lc�.-4- A !t/6Z-ei DATE NAME, TITLE OF OFFICER - E.G..' JANE DOE, NOTARY evbtv personally appeared 2c L Ate IMAM ) OF SIGNERS) personally known to me - is-of-satis#actoiy-e�idece- to be the person(gs whose nameN)Defe subscribed to the within instrument and ac- knowledged to me that s executed the same in +A&�Dfte# authorized capacity#es), and that by -his tgjYthefr signature(t) on the instrument the person, ,��•; OFFICIAL NOTARYSEAL or the entity upon behalf of which the _ LAURA A. NELSON Y p - NowrP1ic—cw� person() acted, executed the instrument. ORANGE COUNTY •'- W Co m. En*ea JUL C8,iODS WITN S my hand and official seal. SIGNATURE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL i] ATTORNEY-tN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR �I OTHER: DESCRIPTION OF ATTACHED DOCUMENT ��d'et'rf /lull u �Sltvm>LiJ` ' 77, TITLE OR TYPE OF DOCUMENT /a NUMBER OF PAGES A'0 06C fr DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME QF PERSON(�S�) O�R ENT [TY(IE$) �� •w (M fitl�t�7 / SIGNERS) OTHER THAN NAMED ABOVE �xc,th►t- *1!_..�� ���•� �c� LS�G flr�fz•�� r, 01993 NATIONAL NOTARY ASSOCIATION • aM Remmet Ave., P.O. Box 7184 • Canoga Park, CA 91309-7184 CALIFORNIA ALL-PURPOSE ACWOWLEDGMENT No. 5w7 State of L- County of (12,i a� a -.,- __ On before me, - DATE NAM E OF OFFICER - I:.G.. -BANE DOE, NOTARY PUBLIC personally appeared-_- KME(S) OF SIGNER(S) Rpersonally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person(e) whose name(s) is/efe subscribed to the within instrument and ac- knowledged to me that tt64she/" executed the same in h+sfher/the+r authorized capacity(k*, and that by 4iWher/the4- signature(s� on the instrument the person*, CFFKA^L SM or the entity upon behalf of which the WpA sty '� r+Joa+ary t�bic-coel+crrtio p erson(o acted, executed the instrument. COWNGE couMY my canmwon �, I WITNESS my hand and official seal. SIGNATU E OF NOTARY ■ OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER �CrORFPORATE _IDUAL OFFICER -- - _ ' TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAUICONSERVATOR ❑ OTHER: DESCRIPTION OF ATTACKED DOCUMENT TITLE OR TYPE&IF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: �►y,� a— NSME Q�PERSON(S) OR ENTITY(IES)) / ! �(Jl --;Q - SIGNER(S) OTHER THAN NAMED ABOVE C1993 NATIONAL NOTARY ASSOCIATION - UN Remmet Ave., P.O. Box 71 S4 • Canoga Parts. CA 91309.7184 r CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No. 5907 State of County of .� On , 9 before me, , DATE NAME TIRE OF OFFICER - E_C3 .' LWE DOE, NOTARY PVBUC personally appeared / NAME(S) OF SIGNER(S) E personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the personal whose name(s) islefe- subscribed to the within instrument and ac- knowledged to me that he/she/they executed the same in .ivWher/tht r authorized 1,9 OFPAULcapacity(i�, and that by JiWherlthe4- Notm � p signature(s) on the instrument the person( , ORANGE COLM or the entity upon behalf of which the MN eon Fie. person(} acted, executed the instrument. AUOL* 21. 1995 WITNESS my hand and official seal. f OPTIONAL Though the data below is not required by law, It may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑� IND�IVIDUAL [CORPORATE OFFICER - a Mum ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: S'G R IS REPRESE�MNG, �!N •F PERSONS} EN7iTY{IES) - c DESCRIPTION! OF ATTACHED DOCUMENT - TITLE OR TYPE OF DOCUMENT 1/Q NUMBER OF PAGES DATE OF DOCUMENT SIGNER(S) OT ER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION • 8M Remmet Ave., P.O. Box 7184 • Canoga Park, CA 91309-7184 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: REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH By: BENEFICIARY: THE CITY OF HUNTINGTON BEACH a Itle: Mayor APPROVED AS TO FORM: JL/ Cit tttorney/Agency Couns J 19 TRUSTOR: By: ME ME ATTEST: d�� P City Clerk/Agency Clerk • 7\c\loandoc\citytd\5/27/94 10 A N a rV AM E P,I } STATE OF CALIFORNIA }ss. COUNTY OFF } El 0 On JUNE 1, 1994 , before me, SALsPY .GIRAGOSSIAN personally appeared VALERIE A. MTOU , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my Signature, Title of Document and official (This area for Cfttal r atarial Seal) CITY LOAN DOCUMENTS SALPY GIRAGOSSlAN COMM. # 1022263 = Z NOTARY PUBLIC • CALIFORNIA ' OPANGE COUNTY ... �+M Gomm. Expkes Aara 3.19% Da`e of Document No. of Pages Other signatures not acknowledged 3008 (1.94) (General) First American Title Insurance Company 09 RIDER TO CITY OF HUNTINGTON BEACH DEED OF TRUST AFFORDABLE HOUSING PROGRAM This rider to the City of Huntington Beach Deed of Trust which was executed by Vil Trustor for the property located at--T&t/al ()1 (D. } is subject to the terms and conditions of that certain Loan Agreement entered into by and between Beneficiary and Trustor dated JUKE 1 , 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 wT VL--hMaaVA Dollars ($ ) (the "Loan Amount") with simple interest to accrue at five percent (5%) yearly. All terms in this Rider to City of Huntington Beach Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. 1 . AccelerationlDue on Sale. A. Except as provided herein, the Loan and all interest accrued thereon shall be due and payable upon (i) such safe, transfer, or other disposition of the Property, including, without limitation, lease, exchange or rent of any part of the Property, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for any amortization period longer than the loan secured by the First Mortgage, or (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 (A 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. Woandockityridr145127194 V B. Exception to repayment provision. Accrued interest shall be due and payable upon sale of the Property only if, at the time of sale, the sales price of the Property is equal to or greater than the amount of the original purchase price plus five percent (5%) of that amount per year for every full year of ownership, starting at the close of escrow described in paragraph one (1) herein, and any pro rata share applicable to any portion of a remaining year. 2. Occupancy Standards. The Property shall be used as the personal residence of Trustor and Trustor's immediate family and for no other purpose. Trustor shall not enter into an agreement for the rental or lease of the Property. 3. Protection of Beneficiary's_ Rights in the Property. A. It 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 2 7AaandocicayridrI05127134 ME 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. 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 acquisition of the Property by the Trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1) the First Lien; 2) the Declaration of Covenants, Conditions & Restrictions for Affordable Housing; 3) the Redevelopment Agency Deed of Trust; and 4) the City Trust Deed. 3 Mandocic+tyridr[05127194 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT M No_ wol r State of� County of j_2z:L41�:= On --' before me, A - N e[S 1'A 9 to Haei P"G C, DATE /� NAME. TITLE OF OFFICER - E.G.,-LANE DOE. NOT PUBIC persona a appeared V' YL�P_ (frock OF SIGNER(S) 'personally known to me - OR =$proved-to-me-crt-the-basirof-attsfactwTvi ed n ee to be the personN whose nameNos ai e subscribed to the within instrument and ac- knowledged to me that he/�i (they executed OFFICIAL NOTARY SEAL the same in -hl to rlt#eit authorized +,.. LAURA A. NELSON .. - 7: Noisy Poic - C.: wr" capacity (ie-s) , and that by -hl i/M7r ;iz. oRANCEcoulsnr signature(s) nature(/� on the instrument the person ` MyCaiWLEX*08JUL 08.1995 g 1') P �h- or the entity upon behalf of which the person() acted, executed the instrument. WITNSS-my hand and official seal. ^- SIGNATURE OF NOTARY ■ OPTIONAL Though the data below is not required by taw, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER TITLE(s) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAWC N ERVA�OR OTHER: SIGNER IS REPRESENTING: NAME QF PERSON(S) OR ENTfTYPES) /) G JJJf �dIC„ DESCRIPTION OF ATTACHED DOCUMENT f.L KauSc Lai, TITLE OR TYPE OF DOCUMENT q _ NUMBER OF PAGES j1Z C c DATE OF DOCUMENT 614 k4ulk'f tF-gr ., (rIL _y i 1l[.IICY SIGNER(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION 9 8M Remmet Ave.. P.O. Box 7184 - Canoga Park. CA 913D9-7184 CAt,IFORNIA ALL-PURPOSE ACKNOWLEDGMENT No. aW7 r State of County of On 3 / '1 before me, , DATE . -, 1 NAME, TITLE OF OFFICER - E.G., JANE DOE, NOTARY PUBLIC personally appeared WME(S) OF SiGNER(S) ersonally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the personal whose name{ is/efe subscribed to the within instrument and ac- knowledged to me that 4ie/she/thep-execut ed the same in 4vWher/theft authorized capacity(ass}; and that by-hWher/-Iheir- a � signature(( on the instrument the person(q, AMI,NDu► SUE SURACt or the entity upon behalf of which the 00A GEE co y person(s) acted, executed the instrument. My Con ri0on C)Mc, August 21. 1445 WITNESS my nand and official seal. SIGIATUPE OF NdTARY a OPTIONAL Though the data below Is not required by law, It may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL C3�e AATEof=�Ic�R TrTLE(s) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAUICONSERVATOR ❑ OTHER: DESCRIPTION OF ATTACHED DOCUMENT Zee6"-' TITLE OR TYPE OF OCUMENT Z/ NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: AL--N: E PERSONS) OR ENTITY¢ES) SIGNER(S) O HER THAN NAMED ABOVE `�✓./' !./Y!1!!t!l!!!d!!!lull!!!f/fl!!!!l111rllff!/!!!!!J,/lflrJl1�!!!!�l!!i� C1993 NATIONAL NOTARY ASSOCIATION* 8236 Remmet Ave., P.Q. Box 7184 9 Canoga Park, CA S1309.7184 The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the First Lien deed of trust or mortgage requesting a statutory notice of default as set for the in the California Civil Code. CITY OF HUNTINGTON BEACH a municipal corporation Mayor ATTEST: TRUSTOR'S SIGNATURE APPROVED AS TO FORM: City ClerkA-4�!�r A��,xL� Ci— Attorney ,2�Af 3,a 0 7/10and oc/cityridr/05/27/94 AMERI ,� S C, 0 } STATE OF CALIFORNIA )ss. COUNTY OF ORANMa On JUNE 1, 1994 , before me, SALPY GIRAGOSSIAN , personally appeared VALERIE A. DMTOU , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and offici Signature r y�. SALPY GIRAGOSSIAN z C0%4.1. !.1022263 CD Co _ »m s):orl PUBLIC • C�.L�OP.N1A ZJ 0;t&NGE COLK". r39 Zlwihr cW,,. Egmms W (this area for official notarial seal) Title of Document RIDER TO CITY OF H.B. DEED OF TRUST Da`e of Document Other signatures not acknowledged No. of Pages 3008 (1.94) (General) First American Title Insurance Company 5 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO. The Redevelopment Agency of the City of Huntington Beach 2000 Main Street-2hdFloer Huntington Beach, California 92648 Attn: Agency Clerk Dgh 94- 0382969 07—JUN-1994 02:00 HK Recorded in Official Records of Orange County, California Lee A. branch, EcUr-tr Recorder Page 1 of 26 Fees: f 85,00 Tear: ; 4.Co {Space Above This Line For Recorder's Use.1 This document is exempt from recording fees pursuant to Government Code Section 6103. DEED OF TRUST WITH ASSIGNMENTS OF RENTS HIS DEED OF TRUST is made this 18t day of J11994 by and among vate-qV4, ,whose oddness is 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, 3�- County of Orange, State of California, described Iegally in the Legal Description attar ld hereto as Exhibit "A" and incorporated here;n. co Ch TOGETHER WITH: (a) a'I building--, iMprovernents and fixtures, now 0�fcihereafter placed thereon, it being understood and agreed that all classes of propertM attached or unattached used in connriction herewith ehall be deemed fixtures, (b) reri', r" issues and profits thereof, (c) any water rights rnd;or stock are appurtenant or perta von said land, and (d) all sums of money payab;p on the purchase price of said property -,— secured by a lien thereon or payable under ary agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and au'hority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and ell sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of t _with interest thereon according to the terms of a Pronii,sory dote of even date herewith, made by Trustor, payable to the order o; t.-p Beneficiary and extensions or renewals thereof. TDEEDRENT105127104/6 2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes, or (b1 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 1994 and in that certain Affordable Housing Agreement currently recorded on the property, insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor -in -interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: 1. To keep said property in good conditicn 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; (b1 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 051 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 7%DEEDREN'n05127l94l8 2 iW 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. a. Obligation to Refrain from Discrimination. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Beneficiary itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the City or any portion thereof. Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the Trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1) the First Lien; 2) the Declaration of Covenants, Conditions & Restrictions for Affordable Housing; 3) the Redevelopment Agency Deed of Trust; and 4) the City Trust Deed. 3 7110andockilyridrr05127/sa notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the maximum allowed by law thereof at the time when such request is made, (g) such other charges for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in interest to Trustor as the Beneficiary may deem reasonable. If, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so expended may be added by Beneficiary to the indebtedness secured hereby and shall bears 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. 71DEEDRENW512719418 4 6. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c) join in granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals in such 7XDEEDRENi1051271941B 5 reconveyance of any matters of fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Such request and reconveyance shall operate as re -assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five (5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Agency the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Agency any duty to produce rents from the property affected by this Trust Deed, or cause Agency to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Agency confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall 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 MEEDREWROW27194/B 6 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; 10 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 shalt remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither do anything, nor to permit anything to be done which may cause modification or termination of any such lease or of the obligations of any lessee or person claiming through such lease or the rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder. Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation of any of the covenants set forth in this paragraph, Beneficiary shall have the right, at its option, to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of said violations shall not be deemed to be a consent to or waiver or any other violation. It the security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of Trust shall be deemed to mean the leasehold estate whenever the context so requires for the protection of the Beneficiary. 15. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement, and the Promissory Note, if applicable, hereunder, and upon default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be prior or superior hereto, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale of written notice of default and of election to cause to be sold said property, which notice Trustee shall cause to be filed for record. Beneficiary shall also deposit with Trustee this Deed of Trust and any Notes and all documents evidencing expenditures, secured hereby. After the lapse of such time as then may be required by law following recordation of such notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell said property at the time and place fixed by it in such notice of sale, whether as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for case in MEEDRENT1051271941B 7 lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of said property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall deliver to such purchaser its Deed conveying the property so sold, but without any covenant or warranty, express or implied. The recital in such Deed of any matters of fact shall be conclusive of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. Trustee may also sell at any such sale and as part thereof any shares of corporate stock securing the obligations secured hereby, and Trustor waives demand and notice of such sale. (Beneficiary at its option may also foreclose on such shares by independent pledge sale, and Trustor waives demand and notice of such sale). After deducting all costs, fees and expenses of Trustee, and of this Trust, including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of sale to payment, first; all sums expended under the terms hereof, not then repaid, with accrued interest at the rate then payable under the Note or Notes secured hereby, and then of all other sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person or persons legally entitled thereto. 16. To waive, to the fullest extent permissible by law, the right to plead any statute of limitations as a defense to any demand secured hereby. 17. That Beneficiary may, from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed and acknowledged by Beneficiary and recorded in the office of the recorder of the county or counties where such property is situated, shall be conclusive proof of property substitution of such successor Trustee or Trustees, who shall, without conveyances from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not limited to the power to reconvey the whole or any part of the property covered by this Deed of Trust. Such instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed of Trust is recorded. If notice of default shall have 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. 71DEEDRENT105/2719418 8 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 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 safe 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. 71DEEDRENT1051271941B 9 V CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT � No.3907 State of County of>,�-- On I4 9 V before me, _ Lrf-i- 4 ltlel tN UZZI_ 11 P , DATE NAIVE. TITLE OF OFFICER . E1.'JANE DOE, wmokRy PuBw personally appeared ebin)e" kAME(S) OF s*NER(S) '® personally known to me - O sis--ofsatisf arrevidence- to be the personN) whose name() fs afe subscribed to the within instrument and ac- knowledged to me that -he o/they executed the same in -his er their authorized ;..� OFFICIAL NOTARY SEAL capacity(+es), and that by hisigijZtheir J K MRA A. NELSON •�" signatures) on the instrument the person(, Notar/ Public — CBritarr�a ORANGE COUNTY &4 yC0ffMFX"JUL6.1995 or the entity upon behalf of which the person(s) acted, executed the instrument. WIT EIS y hand and official seal. C �- SIGNATURE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL_ ❑ CORPORATE OFFICER TME(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TFiUSTEE(S) ❑ GUARDIAN/CONSERVATOR OTHER: SIGNER IS REPRESENTING: RAMS OF PERSONS) OR ENTRYUES) na ►cl c DESCRIPTION OF ATTACHED DOCUMENT /Z G E . /f n' Z Ccs /"tcsr,�, e,4 TITLE OR TYPE OF DOCUMENT /0 NUMBER OF PAGES /1,0 da'Z7� DATE OF DOCUMENT SIGNER(S) OTHER THAN NAMED ABOVE Gru:� h4�ttc7v 01993 NATIONAL NOTARY ASSOCIATION - s236 Remmet Ave„ P.O. Box 7194 -Canoga Park, CA 91309-7184 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No. WT `l�fll IJll�.1/1f11f777777 �77777 lfll7 1State of {l • i a / L� On 9 34 before me, OA E. TIRE OF OFFIC - E.G., SANE DOE. NOTARY PLIBL)C- p��p`ersonally ersonally appeared known to me - OR - ❑ NAMES) OF SIGNER(S) proved to me on the basis of satisfactory evidence to be the personasl whose names} isAHe- subscribed to the within instrument and ac- knowledged to me that he/6he>tthep executed the same in his/her ttrefr authorized capacity(ias-), and that by hisfltefAbeit signature(s) on the instrument the person(s}, or the entity upon behalf of which the person(ey acted, executed the instrument. WITN SS m hand and official seal. - SIGNATL#kE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑_ l IMIDUAL CORPORATE OFFiCEji TITUIS) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT [� TRUSTEE(S) ❑ GUARDIAhI/CONSERVATOR ❑ OTHER: SIGNER IS REPRESENTING: fi E OF PERSON(S) OR ENTITYIIESI DESCRIPTION OF ATTACHED DOCUMENT Z ai'� TITLE OR TY E OF DOCUMENT NUMBER OF PAGES DATE OF DOCUMENT a_ SIGNERS) OT ER THAN NAMED ABOVE - r C1993 NATIONAL NOTARY ASSOCIATION • SZ36 Remmet Ave., P.O. Box 7154 *Canoga Parts, CA 91309-7184 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT { No. 5907 State of County of On before me, , 1 DA A t DAME, TITLE OF OFFICER - E.G., JANE DOE. NOTARY PUSLV personally appeared _CC — .�.de�� , � NAIAE(S) OF SIGNER(S) ,,�� 'personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person(a) whose nameM isle subscribed to the within instrument and ac- knowledged to me that he/she/they executed the same in 4iWherAlteit authorized capacity(4e*, and that by h-Wherfbe-r- signature(sr on the instrument the person( -a}, or the entity upon behalf of which the OFFICIAL SEAL r acted, executed the instrument. UNDA SUE SURACI person(� No'ory Pubnc-Cahtorrti'a ORANGE COUNTY My Comrnlsgon E1tpkc. WITNESS my hand and official seal. Atigmt 21.1995 .01 SIGNATURE OF NOTARY i OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ 1 DIVIDUAL LORPORATE OFFICER TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR ❑ OTHER: SIGNER IS REPRESENTING: N ' PERSOIWS} ENTrrygS) L� DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE F DOCUMENT / t] NUMBER OF PAGES DATE OF DOCUMENT SIGNER(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION • UW Remmet Ave., P.Q. Box 7184 • Canoga Park. CA 91309-7184 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: THE CITY OF HUNTINGTON BEACH Mayor BENEFICIARY: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH By. APPROVED AS TO FORM: S4� d Agency Counsel 5 7\DEEDRENT\05/27/94/B 10 TRUSTOR: By: ATTEST: Agency Clerk s/ C grk V Z AMERI STATE OF CALIFORNIA OPWISE )ss. COUNTY OF I-- On JUKE .1., 1994 , before me, SALPY GIRAGOSSIAN personally appeared VALERIE A. BASTDU personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by hislherltheir signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official Signature r SALPY GIRAGOSSIAN= m COMM n 102220 a; = NOTAM PUBLIC • CALFORN1A �] GRANGE COL11TY ,.. ' MY Comm. Expires April 3. 19M (This area for offical nwarixl seal] Title of Document CITY IAAN nocuMM Date of Document No. of Pages Other signatures not acknowledged 3008 (1.94) (General) First American Title insurance Company RIDER TO REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH DEED OF TRUST AFFORDABLE HOUSING PROGRAM This rider to the Redevelopment Agency of the City of Huntington Beach Deed of Trust which was executed by & G&SbV--(Trustor for the property located at is subject to the terms and conditions of that certain Loan Agreement entered into by and between Beneficiary and Trustor dated JUNE 1 , 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 Dollars P76, e.) (the "Loan Amount") with simple interest to accrue at five percent (5%) yearly. All terms in this Rider to Redevelopment Agency of the City of Huntington Beach Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. 1. Acceleration/Due on Sale. A. Except as provided herein, the Loan and all interest accrued thereon shall be due and payable upon (i) 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 h1ortgage 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 (iv) Trustor being in material default of any other obligation contained in this Agreement or any provision of the Affordable Housing Agreement or Covenant, as defined herein, recorded on the Property, or (v) Trustor violates any condition of the Deed of Trust or Promissory Note, or (vi) the death of Trustor (unless the Trustor's household, occupying the Property, contains more than one qualified participant in the affordable housing program pursuant to which this Loan is being made, and at least one qualified participant survives). At the request of Trustor, the Agency may, in its sole discretion, extend the term of the Loan. 7Aoandoc/8gcV6dr/05/27/94 B. Exception to Repayment Provision. Accrued interest shall be due and payable upon sale of the Property to a Qualified Buyer who assumes the Agency Loan only if, at the time of sale, the sales price of the Property is equal to or greater than the amount of the original purchase price plus five percent (5%) of that amount per year for every full year of ownership, starting at the close of escrow described in paragraph one (1) herein, and any pro rata share applicable to any portion of a remaining year. 2. Occupancy Standards. The Property shall be used as the personal residence of Trustor and Trustor's immediate family and for no other purpose. Trustor shall not enter into an agreement for the rental or lease of the Property. 3. Protection of Beneficiary's Rights in the Property. A. If Trustor fails to perform the covenants and agreements contained in this Deed of Trust, or there is a legal proceeding that may significantly affect Beneficiary's rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to enforce laws or regulations), then Beneficiary may do and pay for whatever is necessary to protect the value of the Property and Beneficiary's rights in the Property. Beneficiary's actions may include paying any sums secured by a lien which has priority over this Deed of Trust, appearing in court, paying reasonable attorney's fees and entering on the Property to make repairs. Although Beneficiary may take action under this Section, Beneficiary does not have to do so. B. Any amount disbursed by Beneficiary under this section, shall become additional debt of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, these amounts shall bear interest from the date of disbursement at the highest rate permitted by law and shall be payable, with interest, upon notice from Beneficiary to Trustor requesting payment. 4. Enuity 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 2 7Aoandoclaycyrfdrl05l27M concurrent with the principal and accrued interest, an amount equal to the "Equity Share Amount." The Equity Share Amount shall be determined by applying a percentage factor (the "Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined below) as follows: 1. Prior to fifth anniversary fifty percent (50%) of the Agency Deed of Trust: 2. After fifth anniversary but forty-eight percent (48%) prior to sixth anniversary: 3. After sixth anniversary but forty-six percent (46%) prior to seventh anniversary: 4. After seventh anniversary but forty-four percent (44%) prior to eighth anniversary: 5. After eighth anniversary but forty-two percent (42%) prior to ninth anniversary: 6. After ninth anniversary but forty percent (40%) prior to tenth anniversary: 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 (341'0) prior to thirteenth anniversary: 10. After thirteenth anniversary but thirty-two percent (32%) prior to fourteenth anniversary: 11. After fourteenth anniversary but thirty percent (30%) prior to fifteenth anniversary: 12. After fifteenth anniversary but twenty-eight percent (28%) prior to sixteenth anniversary: 3 Moandoclagcyridr105131194 13. After sixteenth anniversary but twenty-six percent (26%) prior to seventeenth anniversary: 14. After seventeenth anniversary but twenty-four percent (24%) prior to eighteenth anniversary: 15. After eighteenth anniversary but twenty-two percent (22%) prior to nineteenth anniversary: 16. After nineteenth anniversary but twenty percent (20%) prior to twentieth anniversary: 17. After twentieth anniversary but eighteen percent (118%) prior to twenty-first anniversary: 18. After twenty-first anniversary but sixteen percent (16%) prior to twenty-second anniversary: 19. After twenty-second anniversary but fourteen percent 0 4%) prior to twenty -thin! anniversary: 20. After twenty-third anniversary but twelve percent (12%) prior to twenty-fourth anniversary: 21. After twenty-fourth anniversary but ten percent (10%) prior to twenty-fifth anniversary: 22. After twenty-fifth anniversary but eight percent (8%) prior to twenty-sixth anniversary: 23. After twenty-sixth anniversary but six percent (6%) prior to twenty-seventh anniversary: 24. After twenty-seventh anniversary but four percent (4%) prior to twenty-eighth anniversary: 25. After twenty-eighth anniversary but two percent (2%) prior to twenty-ninth anniversary: 26. After twenty-ninth anniversary but one percent 0 %) prior to thirtieth anniversary: 27. After thirtieth anniversary: zero percent (0%) 4 Mandoclagcyridr105131194 0-9 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 Ithe "Buyer") to Participant for Participant's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. In the event of sale of the Property and at the election of the Agency, the Agency may appoint a certified, independent appraiser to ccnduct 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 1F, PARTICIPANT FAILS TO ASIDE 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. PARTICIPANTITRUSTOR AGENCY 5 7Aoandoc1agc0drl05127I9 4 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, (ii) reliable proof of completion of the improvements (as evidenced e.g., by final building permits or certificate of completion), and (iii) reliable evidence of the cost of the improvements and that Participant paid those costs (as evidenced e.g., by an itemized invoice or receipt). Notwithstanding the foregoing, Participant's obligation to pay the Equity Share Amount is subject to a superior right of Participant, upon termination of the Agency Loan, to receive repayment of money paid by the Participant without Agency assistance for purchase of the Property (including down payment, installment payments of mortgage principal pursuant to the First Lien, escrow fees, transfer taxes, recording fees, brokerage commissions, and similar costs actually paid by -the Participant) and money paid by the Participant for capital improvements to the Property. 5. New Loan to Qualified 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 California Health and Safety Code, or any provision of law which may be enacted in the future, replacing Section 50093 or the law which defines "low or moderate" income for the purposes of affordable housing, and approved by Agency, ("Eligible Person or Family") and the Sales Price does not exceed an "affordable housing cost," as defined by Section 50052.5 of the California Health and Safety Code, to such Buyer, and the Buyer assumes the Trustor's loan, then no Equity Share Amount is due to the Beneficiary upon such sale. In order to verify the Buyer's status as an Eligible Person or Family, Trustor shall submit to the Beneficiary, together with the notice of 6 711oandoc1agcyridr1a5127194 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, unless the Property has appreciated in value in an amount which would be equal to or less than the value of the Property if the appreciation rate had been five per cent (5%) per year over the original price paid by the Trustor, If the price of the Property upon sale to an Eligible Buyer reflects less than 5°% appreciation per year over the price paid by the Trustor at the time of original purchase, then no interest will be due upon such sale. Interest will begin to accrue at the simple rate of five percent per annum as to the new owner, on the date upon which escrow closes and will accrue on the then unpaid principal amount. 6. Subordination. The Beneficiary has found and declared that an economically feasible method of financing, refinancing or assisting first time homebuyers pursuant to the Program on substantially comparable terms and conditions without subordination is not reasonably available. Any first lien on the Property ("First Lien") held by an institutional lender or investor (the "Lender") shall be prior and superior to the Declaration and this Deed of Trust. Thus, in the event of a foreclosure or deed in lieu of foreclosure of the First Deed of Trust, any provisions herein or any provisions in any other collateral agreement restricting the use of the Property to low or moderate income households or otherwise restricting the 7 711oandoeta geyviddO5127194 Trustor's ability to sell the Property shall have no further force or effect on subsequent owners or purchasers of the Property. Any person, including his successors or assigns (other than the Trustor or a related entity of the Trustor, receiving title to the Property through a foreclosure or deed in lieu of foreclosure of the First Deed of Trust shall receive title to the Property free and clear from such restrictions. 7. Obligation to Refrain from Discrimination. There shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, in the safe, lease, sublease, transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Beneficiary itself or any person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the City or any portion thereof. Trustor agrees it shall instruct the escrow holder for the acquisition of the Property by the Trustor that the order of recording in the escrow for the purchase of the Property by the Trustor shall occur as follows: 1) the First Lien; 2) the Declaration of Covenants, Conditions & Restrictions for Affordable Housing; and 3) the Agency Deed of Trust. MandoclagcyridN05127194 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No. S907 State of �2tic� County of On to- i* DATe personally appeared .� �(,� �.r- c y4 , !�_P l sit ` before me, _,�0 �-�r Pc�� NAME, TITLE OF OFFICER • E.G. 'JANE DOE. NOTAFdPUISLIC R1 1-� f rDck We- Lf SIGNERS) personally known to me--4R�--pr erne to be the person1s) whose nameT&)S/are- subscribed to the within instrument and ac- knowledged to me that s e they executed OFFICIAL NOTARY SEAL the same in-1~lis4ot-hek authorized t.Xuuru w NELSON . t�wrpwic_�,o+� capacity(4e -, and that by h+s er tlretr ORANGE COUNTY Signaturels) on the instrument the personts}, �yco;Ir,,.p�esavtce''s�s or the entity upon behalf of which the person(b) acted, executed the instrument. WITNES rty hand and official seal. SIGNATURE OF NOTARY OPTIONAL Though the data below Is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL 4 CORPORATE OFFICER TITLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY -IN -FACT ❑ TRUSTEE(S) ❑ GUARDIAN44p"i'l-e-4 ONSERVATOR OTHER: C&A DESCRIPTION OF ATTACHED DOCUMENT An, rt'd1�St- A 6tC .V_,tIJMs,� TITLE -OR TYPE OF DOCUMENT NUMBER OF PAGES F-0 CU�� DATE OF DOCUMENT SIGNER IS REPRESENTING: n� j�� �.�•- � �� WM�� E OF PERSON(S) OR ENTTIITTY,(IES) , F L4� Q f keI L�1 pct' �-[A'N ► 1 : 6► � Qd'` L""r "`� aF4'J SIGNER(S) OTHER THAN NAMED ABOVE C1993 NATIONAL NOTARY ASSOCIATION • 6236 Rommel Ave., P.O. Box 7W • Canoga Park. CA 91309-7164 V CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT Na W7 [Omni- 0EE10rRd'Zffl,1153XF!1A.WW On 9 b fare me, _6, DATE r NAME. TITLE OF OFFICER - E.0 . JANE DOE. NOTARY PUBLIC personally appeared C -4 lax X�e, L Y rf/!Q _ , NAME(S) OF SIGNERIS) personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person( whose name islem subscribed to th within instrument and ac- knowledged to me that Wshe/t#teq executed the same in-k4+s�her/4hett authorized capacity(ie-s), and that by-hWher/thvfr- signature f on the instrument the person(s'f , or the dntity upon behalf of which the �cI person �,s'� acted, executed the instrument. Fa Notw PuW-tro) a"m o cr cOUNIY �raMy °,�'12 t9Q WITNESS my hand and official seal. CY2�-�Z__ xle"C� SIGNATURE OF NOTARY OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT El �3jVIDUAt_ - E'CORPORATE OFFICER ��scr O C/,LI TITLE OR TYPE OF D16CLIMENT TrrLE(S) ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ■ ATTORNEY -IN -FACT TRUSTF-E(S) GUARDIAWCONSERVATOR OTHER: .._ 9 _ NUMBER OF PAGES DATE OF DOCUMENT SIGNER IS REPRESENTING: NASAE PERSON(S) OR ENNTTrTYOES) -�-r-� � '«'•" � SIGNER(S) OTH EfR THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION - 8236 Remmet Ave.. P.O. Box 7164 -Canoga Park CA 91309-7184 It The Trustor shall cause a Request for Notice to be recorded on the Property subsequent to the recordation of the First and Second Liens, deeds of trust, or mortgages, requesting a statutory notice of default as set for the in the California Cimil Code. TRUST R'S SI NATURE TRUSTOR'S SIGNATURE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH v% Chairperson ATTEST: Agency Clerk 7/loa ndoc/agcyrid r/05/27/94 APPROVED AS TO FORM: Agency Counsel -�? V 'T AMEP,I STATE OF CALIFORNIA ORANGE )ss. COUNTY OF } On J= 1, 1994 , before me, sALPY GIRAGOSSIAN personally appeared VALERIE A. BASTOU u personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the perscn(s) acted, executed the instrument. WITNESS my hand ar)i oAicial se.,al. Signature (This area for official notarial seal) •--`"-� SALPY GIRAG05SIAN= +: C. COM.M. V 1022253 M m- yy ' w� 41. - ,. �� NOTARY Pl��.�ttit�i•p��.!�.i��tNtA NGE W Comm. Extxns Apra 3. 1 M Title of Document ' RIDER TO REDEVELOPMENT AGENCY OF THE CITY OF H.B. DEED OF TRUST Date of Document No. of Pages Other signatures not acknowledged 3008 (V94) (General) First American Title Insurance Company m -F,t I e__ Ivo;ce LA�) r I At� �eclss.a,� ACA Loa -i Policy Form 1 (10-17.92) ► ►r WF Policy of Title Insurance Issued By M TRW Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE BAND THE CONDITIONS AND SSIPULATIONS6 TRW TITLE INSURANCE COMPANY, a Kansas corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insur- ance stated in Schedule A, sustained or Incurred by the Insured by reason of: r 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; t: 2. Any defect in or lien or encumbrance on the title, 3. Unmarketability of the title; a. Lack of a right of access to and from the land; 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; la The priority of any lien or encumbrance over the lien of the insured mortgage; 7. Lack of priority of the lien of the insured mortgage over any statutory lien for services, labor or material: (a) arising from an improvement or work related to the land which is contracted for or commenced prior to Date of Policy; or .._., f k '4 (b) `arising from an improvement or work related to the land which is contracted for or commenced subsequent to .Date of Policy and which is'financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance; a Any assessments for street improvements under construction or completed at Date of Policy which now have gained or hereafter may On priority over the insured mortgage; or 9. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the Insured mortgage in the named Insured assignee free and clear of all liens. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. Countersigned by: AuBwbW Officer of AgW TRW Title Insurance Company ATTEST ♦C07A P.J. M2 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (j) the character; dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimen- sions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encum- brance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy, 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without k nawledge, 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Com- parry by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any 1. DEFINITION OF TERM& The following tennis when used in this policy mean: (a) 'Insured": the insured named in Schedule A. The term "insured" also includes i j the owner of the indebtedness secured by the insured mortgage and each successor in owner" of the mdebtedness except a successor who is an obligor under the provisions of Section 12(c) of these Conditions and Stipulations (reserving, however, all rights and defenses as to any successor that the Company would have had against" predecessor insured, unless the successor acquired the indebtedness as a purchaser for value without knowledge of the asserted defect, lien, encumbrance, adverse claim or other matter insured against by this policy as affecting titre to the estate or interest in the land); (i,) any govemmental agency or governmental instru- mentality which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage, or any pan thereof, whether named as an insured herein or not; (iii) the parties designated in Section 2(a) of these Conditions and Stipulations. (b) "insured claimant": an insured claiming loss or damage. (c) "knowledge" or "known': actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy OF any other records which impart constructive notice nt mailers affecting the land. (d) 'land": the land described or referred to in Schedule (A), and improvements affixed thereto which by law constitute real property. The term "land' does not include any pproperty beyond the Ines of the area described or referred to in Sehedute (A), nor arty right, title, interest. estate or easement in abutting streets, roads. avenues. alleys, lanes, ways or waterways, but nothing herein shalt modify or limit the extent to which a right of access to and from the land is insured by this policy. (e) "mortgage": mortgage, deed of trust, trust deed, or other security instrument. (f) "pubic records": records established under state statutes at Date of Policy for the purpose of imparting con- structive notice of matters relating to real property to purrs for value and without knowledge. With respect to Section t(a)(iv) of the Exclusions From Coverage, "public records" shall also include environmental protection liens fled in the records of the clerk of the United States district court for the district in which the land is located. (g) "unmarketability of the title": an alleged or apparent matter affecting the title to the )and, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A or the insured morgaoe to be released from the obligation to purchase by virtue !f 1 statutory lien for services, labor or material or the extent insurance is afforded herein as to assessments for street improvements under construction or com- pleted at Date of Policy); or (e) resulting in loss or damage which would not have been sustained if the in- sured claimant had paid value for the insured mortgage. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent omler of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5 Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. lip Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mort- gage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mort- gagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors rights laws, that is based on: (a) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (b) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (c) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (1) to timely record the instrument of transfer; or (ii) of such recordation to impart notice to a purchaser for value or a judge- ment or lien creditor. CONDITIONS AND STIPULATIONS contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE. (a) After Acqulsitloe of Tills. The coverage of this policy Shall continue in force as of Date of Policy in favor of () an insured who acquires all or any part of the estate or interest in the land by foreclosure, trustee's sale. conveyance in lieu of foreclosure, or other legal manner which discharges the lien of the insured mortgage; (Q a transferee of the estate or interest so acquired from an insured corporation, provided the transferee is the parent or wholly -owned subsidiary of the insured corporation, and their corporate successors by operation of law and not by purchase, subject to any rights or defenses the Company may have against any predecessor insureds; and (iii) any govem- merrtal agent+ or governmental instrumentality which actuires all or any part of the estate or interest pursuant to a contract of insurance or guaranty insuring or guaranteeing the in- debledness secured by the insured mortgage. (h) Alter CawA"jancs at Title, The coverage of this polity shall continue in force as of Date of Policy in favor of an irt- sured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy Shall not con- tinue in force in favor of any purchaser from the insured of either (i) an estate or interest in the land. or (ii) an indebtedness secured by a purchase money mortgage given to the insured. (c) Amount of Insurance: The amount of insurance after the acquisition or after the conveyance shall in neither event exceed the least of: (t) The amount of insurance stated in Schedule A; (i,) The amount of the principal of the indebtedness secured by the insured mortgage as of Date of Polity, interest thereon, expenses of foreclosure. amounts advanced pursuant to the insured mortgage to assure compliance with laws or to prolect the lien of the insured mortgage prior to the time of acquisition of the estate or interest in the land and secured thereby and reasonable amounts expended to prevent dete6o- ration of improvements, but reduced by the amount of all payments made; or (iii) The amount paid by any governmental agency or gmmmental instrumentality, it the agency or instrumentality is the insured claimant. in the acquisition of the estate or interest in satisfaction of its insurance contract or guaranty. I NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The insured shall notity the Company promptly in writing (i in case of any litigption as set forth in Section 4(a) below (ri� in case knowledge shall come to an insured hereunder of arly claim of title or interest which is adverse to the title to the 1<n or interest or the lien of the insured mortgage, as insured, and which might cause loss of damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest or the lien of the insured mortgage, as insured, is re- jected as unmarketable. if prompt notice shall not be given to the Company, then as to the insured all liability of the Com- parry shall terminate with regard to the matter or matters for which prompt notice is required; provided, howeve; that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be pre- judiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TD COOPERATE. (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations. the Company, at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those slated causes of action allegin a detect. Tien or encumbrance or other matter insured against this policy. The Company shall have the nght to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which a:;ege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shalt be liable hereunder; and shall not thereby concede liability or waive any provision of this policy. If the Company shall exer- cise its rights under this paragraph, it shall do so diligently. (c) 1'lhenever the Company shall have brought an action or interposed a defense as required or permitted by the provk sions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly tesems the right. in its sole discretion. to appeal from any adverse judgment or order (d) In all cases where this polity permits or requires the Company to prosecute or provide for the defense of arty ac- tion of proceeding, the insured shalt secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of the insured for this purpose. (continued on inside back cover) 4007A ENDORSEMRqr AMMED TO P=CY ]NO. M 183-4I4421 �-s sp b*,.Tso III III r 0 Do I kl,:, ON.Opffa• W, ,• . Mkil • i• n r k i r• �• r• ar• �- - r • s;• - r �. • ar• - �• • a • i�• r • s tit : • n •• r• • �� +- r i� r �• • r• •. •,- • . 1i r. • •••r• i2r• r a+��• ai ti s:• • w C I 1-0• is W. • r• AN I m'I••P'1DrDIV, 1 r N • a• �• • •: t•• �fi i Ifil�r• I •• • • I• • • L r]I• �• • MIS ENDCR EME TT IS M= A PART OF SAID PCLIC'I AND IS M3.7F= TO MM SOMMS, MMITICNS AMID STIPULATICtM THEREIN, EXCEPT AS NX)IFIID BY ME PROVISICLSS HMWF. 11+'s.109 • .. • �. aMM NO. 216743-3 ATIACHED M FMC!f PA. M 183-414421 •• I" • 1 L`• I' ar I 1 L I' Cflr • !'• 1 •r •;• / • h !: ` Y• 1 129 : • 9• • • I I • • � - I �� • 1 Ir 1 •• } �•m •• tr• 1 hm 2. THE PRICRNY OF ANY LIM FOR CHARGES AND &ENM IN FAWR OF ANY ASSOCIATICLIT OF • DO I I}' MUCH • ARE • i• Irl'JIf •.• IN ANY DOCUMENT }-J-'JIr TO IN SCHEDULE: • :I- TM Ia OF 1 SI- /MaMGE ICENTIFIED IN SCHEMLE A. 1 a I •" ••�/ • • • �r I '1 • I Ir • 1•f1' f• :• , I U.,4ART4 0 fWaAMID • :afar• �� a �•. • • 1.'Yr • • • / • 1 1 • Ir •;- • • s►• -+s la I 1 I' • �• • elpf • 1• • Mt • I- • r• 1 • 1/ 1 • Iva V&D�►I�1• r '�I/ •;' •• I / t+ : 06191• •i "01MV 0 IMOAMALGIM 1 �Ir: a�� •►+ r ♦ `�+ Ir'•� _ {/ it • •MITI • I •1 L AND PRCUISICtS 7TEPMF RM OF ANY • • •;• 12MCPSEMEMS 7W=. EXCEPT • ME 71E POLICY AND MY PRIOR ENDCRSEMEMS, NOR DOES IT E= THE EFFECME DATE OF THE PMICY AND AW PRIOR =RSEMM, NOR DOM IT r •• s+• -1 ME MCE• 711ERMF. i . Y 1 r-1 • •• •• I• • 4 � •: • ' • S' ••� ' . amm No. 216743-3 CRSEMENT A777M= M PCFLICY M. M 183-414421 0 WI ti,y•):�`� •• 1• • 12I. 7+: r 1• k • I�• • r 19121: CMr I•.Mr ia• �• �fi •�-i r• C V mmce1japs • 126 i • r• r ti •. r r 66 of r ,- ar ti r• r• r - a►• �• ri `ter • �►• r i- :• a �a r •r u r c r-� +:: �- •:• - �:. iggge *A ot • r +r r• ar• -+ :• . I . A. s r • r�fa VIE T= LIMMM OF i == U= SAM •Mr MY nMORM= r:r• r MUCH M i CaMPM IS •;: r= UNCM M CUDITIalS = STIP=CM 7VEPMFTO Tf US E MCRSE7= IS NODE A PART OF SAID POLICY AND IS SU= TO THE SGMEX S, QrIDIT'I= AND STIRXA=CNS 71=1N, EXCEPT AS 1vMIFIID BY ME PROVISIQHS BERMF. �•, r • � .ter • • •• •• +• a •�• r •� may• PloppAp of R• C..•� 5 u :r � l Y CONDOMINIUM PLAN UNIJ A RSPACI D NS:ON PLAN: BUILDIva 'D' `MIDDLE LEVEL UNITS 33 THRU 44 7,��fgl7- - SCALE: I' s I6, N L� �C� 1►.K' a' �w �j�� � 1] NAIL VrE MP NOTES. I. o INDICATES COX-40m BUILDING CCWM OL POIS'T. 2. SIR SHEET 6 FOR BOUNDARY PLAT. 3. SEE SHEET 7 FOR BUILDING LOCATION PLAN. A. SEE SHEEZS $ THIa I4 FOR UNIT AIRSPACE DIMENSION PLANS. 5. SEE SHVETS 20 TliRU 23 FOR SCHEDUUS OF TTPICAL 01IT VMICAL SE,"TI0NS. 6. SET SHEETS 21 Th'T►U 27 FOR TYPICAL UNIT 17IRTICAL SECTIONS. i . SEE silrr- 2A rnr rary ni r:-„••• , r•., •.. •. r - ■ a MM M. 216743-3 ENDORSEMERr ATIZ4= M PCLIGY M. M 183-414421 71HE INMMITY •;• UM7CRCEABl= OF 1 LIEN OF r INSURED =11 � 1 -•• I • :• • +r • t • r.' M� ly I I • • ••• Ir1 •:• • THE OF 1 E• •. OF PRICRIlY OF I IM OF I nOURED DURMAM AS S== FM : • • H PRUMPAL B== OF 1 I= MEEN= BY I • eRM= •r. lal• WnE INIEI= AND FMMNCE CHARGES AS CHANGED I1 • ••r. M= WrMI PRMSICNS OF I • r.• M= WHICHT•. CF PRICRITY IS v V-1M• BY 7HE• +• r.- IN 7M RATE OF 1 al' • I• C� 1 I • 1 �I' �. i``181r 1 i 31 Ir•;• 3 I} a -I r• I.'V• • 1 •�I • r• Ca. 1 I- ti d I • 1 •:y t • .• IrI91• � r• s • •• �� I.1- �- �Ir • ,• � • • •� 1 � Ir 1 1 D•'TSly IL19 �r•`�i • �' • 1 'e1�) jjlr IS .7 • jl1 • m Ir nt. DO •f • L a• •• 91- • V a1 41110I0 to 0 .1f'N. W. DID 1 171' D I�•:� 3 IJI •;' �•19ti 'J• a I� 1 91 .? � • 1 -• li •;' 71 Ir•:' `I� I,1 •:- 1•!?r I ' �►• -1 1 •.•i • I 191• �• w E 1.J.�'lCl' N �CER a i• •..tea a ALTA LOAN PCLICY � • . � SCI EDULE A 7UTAL FEE EM TITLE, MMI=CN AND TITLE INSUl:ZA= $300.00 A' =Tr OF INSUR.A=: $56, 000.00 aRDER NO. 216743-3 POLICY NO. M 183-414421 IlATE OF POLICY: Jim 7, 1994 AT: 8:00 A.M. LOAN ND. 69000644 1. NAM OF INSURED: SAN'eF BANK rY• •" 1 CNLIFCRM••;' '•;' ;. 2. THE FS=•I' Il== IN I LAM DESCRIBED nl S=M A AND MUCH IS COVERED BY MUSPCLICY IS: CCRXM=f AS DEFINED IN b •tT 783 OF I =FURNIA M ;•a;IN i 3. 7M FSTATE OR INTgtE'ST REFE = TO HEREIN, IS AT LAA7E OF POLICY VESTED IN: VALFIZIE A. BA=, A MARRIED VDIAN AS EM SCIIE AND SEPARATE PROPERTY 4. I •:• !'` !! MEREIN R== TO AS I INSURED ;;• !'` C AND RE ASSIGNMERM 7B=F,DESCRIBED AS EMIDWS: DEED OF 1 L 70 SECURE AN It Irly- ITTf ESS. • • rrlr 00 SEPARME PROPERTY S S ICI M /+ BAW =F•;'1 =FURNIA ••:' ••:• • • r• M!. 26, 1994 • 00 i 91i: JUNE 7, 1994 AS INMIUJMDU NO. ' .: OF OFFICEAL - 9;•:• iS CI32 ND.: 216743-3 PACE ICU. : 2 M wepollisim ••: I yl9 THE LAND IS SITUATED IN THE SPATE OF CALIFORNIA OO(NI'Y OF ORANGE PARCEL 1: UNIT NO. 43, CONSISTING, OF CEPTAIN' AJRSPACE AND SURFACE ELEMNM, AS SHOWN • D DESCRIBED IN THE ••: D• 11 • ` • • • BRISAS DELMAR 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 114ISCELLZIla•US MAPS,IN I OFFICE OF I ORANGE CaNN - E•• - E-("OFFICIAL RECORDS"), WHICH PLAN WAS RECORDED ON S=4KR 15, 1993, AS U49IRUMENT NO. • OF OFFI= RECORDS, CALIFORNIA. TENANT IN CCM3N IN AND TO MODULE B SHOWN ON THE PLAN AND DEFINED IN THE DECLARATION REFERRED M BELOW AS THE 110MVEN AREA". EXCEPT THEREFROM ALL OIL, GAS, MINERALS AND 167=- HYDRCCARBON SUBSTANCES LYING BELOW A DEPTH OF 500 FEET WITHOUT ANY RIGHT TO ENIER UPON THE SURFACE OR THE SUBSlJR= OF SAID LAND ABOVE A DEPTH OF 500 FEET, AS PROVIDED IN INSTRCZE= OF RECX)RD. lot- Ir « W.Al-• •; .. - Ma►' «ire. +f 215ATA-YI APPURTENANT TO PARCELS N• AND NO. DESCRIBED ABOVE FOR USE FOR PARKING, PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DEaARATION, OVER PORTIONS OF LOr 1 OF TRACT 14757 S-UN AND ASSIGNED IN THE PARCEL 5: AN EXCLUSIVE S• • ICI APPUMENANT TO PARCaS NO. 1 AND NO. DESCRIBED ABOVE, FOR USE MR PATIO, BM.C=, AM FIRE ESCAPE STAIRCASE PURPOSES DESCRIBED AS EXCLUSIVE USE AREAS IN THE DECLARATION, AS APPLICABLE, • E- PORTIONS OF • OF SHCIWN, ASSIGNED AND DESCRIBED r 4:I CFMM NO.: 216743-3 J FACE I D. : 3 ALTA MAN POLICY SCHE= B PART I 1 -• .•,�. • 1 �� !- • r• 1 •� •'- ■ • r• r. rr 1 •• 1• • 1 • a•� •r� Y fir}. •,- �►�- } � , I • - �• -• • A. GENERAL ANr SPECIAL TAXES,/} NOT i• : FOR M FISCAL YEAR 1995. E. 1 LIEN OF • • } I} r• Y• M IF ANY, ASSESSE[)PURSUMT 70 • M= CMI} w1 WM S=a4 75 OF CALIMMIA REVENUEu TA=CN OXE. 1. ME E:FT-= OF A MMINM OIL, AND e•• EXEC BY IMISBENsal AM 71 • •1 L• HIS WIFE AM BY • I}• PERSONS • • 17r' LAM, x ti:+ -E••; = NOVEMBM 6, 1920 IN BOOK PAGE 198 RM - a••; ors. A== 11, 1921 IN BOOK 25, PAGE 247 OF LENSES, BOM OF LENSES, 70 ToMCH REFERENCE IS MADE RR FULL PARTICMARS. AN EAaD--VlZVr FOfZ PIPE Maid AM INCIMEAL PURPOSES, C• • 71• TO MMM= 319, • • r 149 OF OF OFFICIAL REOMM. PEnUMN KWWAY •• 1• • r IN ME MED ' S••;'1.15Yr IN BOOK 578, • • C 269 PARTICULARLY DESCRIBED IN SAM INSTRIMENT. EASDMT FM PIPE 7I Y I• INCIMTML PURPOSES, AS C' • ]Yr TO SMN= • 1 MIPMY OF CALIFUFMA IN nlE= RDMFM IN BOOK 865, • • !! 15 OF x• �a !} •:• 1 1�•. I. 1 wul r r ••.-1 r.- • �■ • Y• Ir • •a • 1 •• 1• • • W •:'1 1■ Y• ,■ • !'• -• 1 i •• I• • 1 1 n209 mN AlIMN On on EASEMENT •;• PIPE I= AND nXM=Mh.T. PURPOSES,r.• • = TO ZIE a►•• OFFICIAL RECORDS, AWW3 = PORTICN OF SAM LAM AS MORE PARTICULARLY y ry} I} •.. I: I 17` I• I 1.1} v r ••�`1}� r.- • ]. . I ilUxam • Ir • •;- • • -• • I rla� r' 1: sr 1 1■ 1 4 I} • 1. nol:lr • •1 I• ti r• • •�. • • PU.: 216743-3 FACE N3. : 4 D.S 1■ • : • ` I - MIDI Ir • } r• SIIy• }r Ir I}} L �• • I S•ip-' i • -•• - }- ID•. I■ 1 w • I • : x• • - S••:•1■I,71■ 1 • 'iS IS •:- • I: • •}. Ir flb1S Y• - I' -•�I>` C• �■ • -• 1JI'1 •►• •; 1 DID �• •• I• • ••,- •r- • • 1 r�1�1■ ' �••;-1s;Sr nic •IS 17� •:• r• •�1• ►• I I■ 1 'MIr1S Y• !' ••�'1Jti • t!- • 2l • w I oI S • I: I'4 • • 1 Ir N• • 'I 7/1S• }r : • : SI' 1 �• Coll •• ? I• •• Ir • L IS1' 1 •'•• Ii1}■ ' BI 71- S '• 1 ►• r; • I • •• S;• ■ 121• S• •:' I • • ' • I 13. VIn'. 'EWM, • W1 • L • Ir COMITIMS •• Y• 1 ISI■ 1 A DOCLTaLvr 7r }■ IlSM • • OF • L • Ir SUBDIVISICtl •• '1} ]MC BY DELAMM allaFaMA 1 1 SI■ •AM1}- -I 1 ' RE03= APRIL,• • nEIMMPI I I FA= I• MM • 1131• OF I• LAM HAVE • RIGHr OF } 1 • ! • ACCESS • MAWARE M=, UrICA AVENM AND MIFMTIA =EET, EXCEPT ' Sw 131• POIWS, SAM RIGMS HAVIMBEM REL11XIMSIED BY DMI=CV PFMSICLqS • ZlE MAP OF 1• 15. AN IlZMU4MT ENMLED •• I•• 11 • • S••:'1■1S1■ `I71• S : 71• 1 L 1 I:F NO. OF OFFICIAL • S••I- •r REFERENCE BEI ►• r; 70 THE (MER W.: 216743-3 �J PAC£ PA. . 5 !;• `I � I] Ii 1] � H I !:!: Ir 1 r• • 1�1. 8! • .• • ` • �1 • I .• • 4 •,• E171- W."t r 2P.M.19 E] H •:• i 'IM • • 1] Ii !• Y• I 1 •• ] N •• Is • L + is - • ` I 1 • • ••• 1.1 111h • rl • ICI' ]• '1 /• • r �1 �►• •;- - ] I.191• 1mt.11hIi 1 1] • •;•4iii •:- r viols 1 --�• • L • • li r L •/ I NSo il Ela •'Ai Ili1 a�i • m-n �� • M UPS M •• ff•I' V ]I • •I' r• v Ii g III 1I• 1 41L &.I• 71r :4o * 1] fit. gotY• Be 41 •:- !•• N.91 v • •i 0 •• IIIY• I OR I I • : • s • lour •• � +• •• r • � rr - k • � I • •+• srl /• 1 /] I/ • r• ai]. •:• - sold- ID r E# • • r:•;•u 1 ►• �.� • I - AN =M4ENr LEiM A =FICUIM OF • n 03VEWM, COMITICUS • Ir 17. MMn= EM MG= AND aEr.• a. PAMMU,•E1 1 MAMM, SMMRY MMS, RMLIC U==, SLOPES • u RIGHM I 'MI•I] Y• 17E- • AS DISa= C1744M AREA. LIS. MATIMS1 AN INSTRUMENT TVr 1 •+ • • 17- Tfl= 02MIN CIR MAKEPRMISICNS •;- tiy.04EMS AND Ll= XND ME SUXFDI=CN TH=F;PROVISIMS - EI • 1 PROVISIOM FM CERTAIN E• -Ely ri •:• a ,f Z• • • AND •• w 1 1 •• ] r• =DIMCNS AND REMICrICHS TAMCH PROVIDE MI• A VIa=CN TMWF SHAIL NOTEIEFEAT •I• ' ? ir191• 1 b ME 1] OFxrf b=ym• • iIDl91i I • ••• • +. • • Ir I L •! b Ala/ •� • •••� Ir] - � • L �-1]i D' I? QMt IAA.: 216743-3 ALTA INN PMICY P?CE ND. : 6 I 60+ PART II 32T AMITICN • 7M VATIERS SEr RRM 3NOF 1 • 1�ril� EGME OR WrEREST 1 ITIE LAND UESCR= •'• REFERRED TO 3N SCHEUCTLE A IS SLM= K)Tl`ERS ARE 1:0• r 1 r• • UM LIM OR CMRGE OF I INSURED fURTMM UPCK k r• CR 32TIEREST: / 1. ANr7UNr: $25, 000.00 TItLTSiOR : VAU= BAS'IC7U TlZU= : 71-E CITY OF HLln'II4G l BEACH BENEFICIARY: THE REDEVELAPMEW AGENCY OF THE CITY OF BEAM, A PLMLIC BODY MU ORATE AMID POLITIC DATED: JCAVE 1, 1994 REDORDED: = 7, 1994 AS nZTW4= NO. 94-382969, RECOMS • I 11/ /1 D• 7u I 1, 1994 • ?••V• •'III i I I -1 la NO. 1 wi le I] • • i •1 OF OFFICIAL CRICER M. 216743-3 PACE 1 um AMSEMERr AM= ZD FC UCY ND. bi 183-414421 Mb:-. Mktg 1klc~•.i ON-6 r •• �- • r2• �: 1 �� 1• • e•• 1 a. 1 • • Ir 1 r`-+ 5• r• v 1 • -r • • I :I s 1 �I• 1 a•;•�- � 1 I r• • 11• I a• r I�• �I: � ►• Iml- • • • •• r• •• it • L •I• • L i r;s• �4101*01:1 13, • 249 • 1 • lalr I al• I �kOINLOORMEM I: •I-ir I• • •- mor h lal' • - • • • �•19 •1 • L • • If • I• • ►• �► •al- •I • 1 • op I ICIM4�vo • r •;• : r •.• u • Ir • • � •;• •4• •• i ly • 1 I•� r I• • • • 1• H • ••I 9 is • L �. W •;- 1 1 Ole .• Irl71r • •1 • L I 1 •� • • 1 I• • 1`� I� • I S • I • - e+• r • �I al'1' �r • r • 171r •;- - � I 1 •� •;• 1 1- • 1 � I� • I • Ir • • I 1 Is,:l: �Ir qt tip• r ali • • - e+• r. UNMARKETABI= OF I =E • SAM ESTATE •,• n== BY •Er•S• OF • s CU SAM LAND, O=MR= PRIM • A=SrriaN OF 1 1 � Ir•;- •!� •• 1 IDI• QER NJ- 216743-3 PACE 2 C r • i• r • � • 1 1 i• •�• } I} I '•I Ir I t 4 •, I-� �:: }- •:• • al}r 1 ••I• �I• •;• }-�• • -• 1• ••:- • • I it • • 10 1 OCIP4.1k I @a OVOKOJ Wild4l } 'o i• • O I} `1 • MAI 1 • i}• I MVI}U_ ►,LIRS • 10• +. �•�r• _>t�}r �• -� �i�l�l;+; �i� t• I}• i - • Y• : ' • 1 •• I•' Iill}- �`�� i i• ��I�•' �`19 i} �- �11 •+ -Oj a Mo.0P I I • cr• ae+• 1 • • • l • ' n ••� u • n • • I• ••r i I • I •• I• • •:: t•' }� i•1}• 1 •• I• • L I• 71-ZS E== NP IS NODE A PART OF SAID FOLIC`_' AMID IS SM=- TO THE Sa=M, C=ITICNS AMID SPIR=CtiS THEREIN, EXCEPT AS NIJDI= BY THE PROVISIONS KERMF. : By- C WICERL I tflom ;-,k � ENDORSEMERr ATOM TO FXSCY NO. M 183-414421 CaMPANY ASS= ME I L = = AT I DATE OF 1 POLLICY I r l E L• L• EI- r• BCLMU;ZY OF r r LAM REFERRM 70 IN SCHE= A OF r PCELICf, W11ICH IS ALSO ME Efir- •:• B=)ARY OF I • •,• 9 AREaxmcmy -I .• , di N mp aEWN ON Ili 1 OF li PCUCY, IN I OFFICE OF I •• `=Ir191• OF `+• fr • •• • • !- 101• , `� �. 7� I I L•� �• �r h I }. Y• 1 li Ir 71 1. 71i • 1 • Ili I 1 '� ,i1�. •[:r. li D /• r �� 1 • 11 1 • �• � li • - 1 rlo•. • ` /: 9li 1 • 1:11r 1 I • • • I as - D••.- rlo- • I •• 1' • 191• d: 1 � 1' I 1 1• }r N• 1 •� I 1 • 41911901, 71r -I r• • r• LaA3nX1Y OF I CCVTANY UNDM SAID P=CY AND ANY INOCRSEMMIM 7HEREIN SHALL • E= IN ME • et.`Ef •• 7HE FACE• OF Ir PCLICY AND ••. I••:l 2 12 /• r1 • • • • Ir ••] Ir `� I: 7 • I 17,• I k •eaIN) For#(up-lb : �1r �� 4 11F.11100��1� a•►Ir. 1► 3r 1•, to f Dn 1 k,k1. ! M •• 1• BY:Vr . 316.2 LIE aMM NO. 216743-3 ATDU= 7D FWCY NO. M 183-414421 1 t ��� 7�`s-• s• r•. n r a �■•:- •s5 ry • rI � a i n ��a■ 1 •• r • r �w I- �. 1 1 �� i• �. • c•• I � •. •;• . • + r, � � r• / 1DIr - �+• -s • • • • • •;' • 1 r} • 1 ILLS 1- }. ,+�'C�e, • }- .•.1 ' a•ai PC r• : y 13111111 1 trial- r• r• ■ • • •al •�• r • -40 . }• • • 1• • h `1".i' •;• I Ir • • }rC •:- r }r r 1 D•a;•.. s i Iw a1• • i Dlr v }. . •• i-� 1 r I• 1 Ir ISO, 0 DW to 34 QUA Iml* Do r,•• tit., IN • • •• I• a �.• •..ems ,y r• I a Ir•;- -1a Ia• • r• Q�Qt M. 216743-3 T; r'15 EM AMAC D ZU MUCY PA. 24 183-414421 bINTMOVO #Po / . l ON-4-pake Zwng IPRW IVMI41.6la• �1: 1 L`�a I• I • 1'i�• • • it 71• • �f • / • • • • !'• • • • f • i Y• I ' �. I • 71 t71• M 'Y • VE =ML LLUnM OF I OMPANY UMM SAM FMCY • 1/ ANY ? I/ORSE la 7MEIN SFALL NOTEXCEED, IN 7VE • ttt' ?r• I FACE AMMgrOF 1/ P=CY AND COGIS WICH MiE C24PANY IS •;: r• Er LNMM ME COM-ITICEZ AND STIPUUMCM 71EPMF 70 J�jl a r•,- I `I? la ►+ Y' • • • - • • If ■• IN I. a • I • I• I >` • I• •' i1 ' 1 • L I�1• / D1 •bl' •'.• f7• 1 '•�• • IJI• ?• b",upylosvis1 ��I • • •' •• I• BY: z cmaR ollAyboN,! • •wT� 7 7 W. 216743-3 ENDORSEMERr ATEAMID TO FCS.ICY PA. M 183-414421 ISSOED BY MW T= INSURAME ANY "MA,is,• �: r �� r • r• r •� , r • rr r �� ,- 7r n r• r -• 0 KID) • it •:- � :• , ems, • r • is,r i r w == OF i C34PM UNOM S= PMICY M KVf air•:-M= ia• r OCZL • a► = IN ME AGMEMM, 7M FAM AMW OF rr PMICf M •= r a +r•;• *0 ,a r • • 491141,66 r -• ,rwilmrs,a • i • iar i � •• ar • 4 Ir • I • IDf- r >► •JI- •'r $Zr I .• • L ��- s• V001do'-.4UP GDP* lJ c� VD. 216743-3 ENDoPSEMErr ATM= M PCMCY NO. M 183--414421 owke,c-sm: 1'+ r 1 :1 • • • •• I• •• 1• • � I' � I 1 L� I- aIr r• 1 / • ryk 4 r� i 1 • r• ►pair •;' lalr i"kei,• • I r1 -alp • ' s.olov • Nc >t �' - aIr • 1 s Ir I:•:-�r t 1 ' �. - s • 1 �s • Ir •.- r• t� Ir 1 •4 • • 17r• ar: 1 L I• • Ir 1 L 1• aIr . I 4 •. ! 1 Ir !Oct11air -1 I• corA 1 • Y• ' : � • 1 •• I• • i rlal• Ir ••1 r 1 Ir•'"'19 I".M lai` all -I ►• • � •ialair / I • rr.- ar• 1 � • � • Ir •rl Ir ••. I • I •• 1- • r: r• aIr � Irial- 1 •• Ir • � Irt 1 • • � lai- a• • a�u•'`T.`1�T �� ►•li • • - • 11 '•1� Ir k Jr119 I t1711111lit7� Me Ir • 4 Ir • ;at I Iv" DOI Om 2 •i'ji• •:r fair I • .• r &Imp 1•. hip eel — On., CONDITIONS AND STIPULATIONS - (Contjftled irorh inside horn c mrer) Ylhenever requested by the Company, the insured, at the Com- patty's expense• shall give the Company all reasonable aid W in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or erecting settlement, and (it) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest or the lien of the Insured mortgage, as insured- if the Company is prejudiced by the failure o- the Insured to furnish the required Coopera. tion. the Comp; try's obligations to the insured under the policy shall terminate. including any liability or obligation to defend. prosecute. or c]ntiaue any litigation, with regard to the mat- ter a, matters requiring such cooperation. 5 PROOF OF LASS OR DAMAGE. In addition to and after the notxes required under Section 3 of these Cone tions and Stipulations have been provided the Company, a prcof of loss or damage signed and swom to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shalt ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the bile, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state. to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the in- sured claimant to provide the required proof of lass or damage. the Company's obligations to the insured under the policy shall terminate. Inctt.ding arty liability or obligation to defend, pro- secute, or continue air/ litigation, with regard to U.e matter or matters requirir g such proof of loss or damage. In addition, it a insured claimant may reasonably be required to submit to examinaton underoadt by any authorized represen- tative of the Comparry and shall produce for examination. Inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, al records, books, ledgers, checks. correspondence and memoranda, whether bearing a date before or after Date of Policy, whict reasonably pertain to the loss or damage. Further, if reqursted by any authorized representative of the Company. the irsured claimant shall grant its permission, in writing. for arty authorized representative of the Company to examine, inspect and copy a!f records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, *rich reasonably pertain to the loss or damage. Art inlstmatian c esigaated as confidential by the insured clai- mart provided w the Company pursuant to this Section shall not be disclosed to others unless. In the reasonable judgment of the Company, it is necessary in the administration of tie claim. Failure of the insured claimant to submit for examina- tion under bath. )Wxe other reasonably requested information or grant permis: ion to secure reasonably necessary intorma- bon from third pasties as required in this paragraph, unless pro- hibiled by taw or governmental regulation, Shall terminate any liability of the Company under this policy as to that claim. B OPTIONS T3 PAY OR OTHERWISE SETTLE CULIMS; TERMINATION OF LIABILITY. in case of a claim under this policy. the Company shall have We following options: (a) To Pay cr Tender Payment of the Amount of insurance or to PPurchase the indebtedness. (i) to pay or tencer payment of the amount of insurance under this policy together with any costs, aromeys fees and expenses incurred by the insured claimant, which were author- Ized by the Com;)arry, up to the time of payment or tender of payment and wt.ich the Company Is obligated to pay: or fun to purdtase the indebtedness secured by the insured mortgage for the amount owing thereon together with any costs, attorneys fees a -id expenses incurred by the insured claimant which were auth irized by the Company up to the time of pur- chase and which the Company Is obligated to pay. If the Company offers to purchase the indebtedness as herein provided, the owner of the indebtedness shall trans`e ; assign, and convey the Indebtedness and the insured mortgage, together with any collateral security, to the Company upon pay meni therefor. Upon the exercise try the Company of either of the options provided for in raragraahs a(!) or (ii). all liability and obliga- vons to the insured under this policy, other than to make the payment requiv in those paragraptm shall terminate, including any Iahllity or ob igation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company far cancellation. (b) To Pay o- Otherwise Settle With Parties Other than the Insured or With the insured Claimant. (i) to pay or otherwise Settle wili other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' lees and expenses incurred by the insured clamant which were authoriz- ed by the Company up to the time of payment and which the Compa is obligated to pay; or (uu to pay or otherwise settle with the insured claimant the loss or damage provided for under th4 policy. together with any costs, atromeys' fees and expenses incurred try the insured Claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in pa.%r4hsb(i) or In). tteCompany's oVigaumns to the insured under this policy for the cla med loss or damage, other than the payments required to be ride, shall terminate including arty liability or obligation to celend, prosecute or continue any litigation, 7. DETERMINATION AND EXTENT OF LIABILITY. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The kabt'ity of the Company under this policy shall not exceed the least of: (i) the amount of insurance stated in Schedule A. or, it applicable, the amount of insurance as defined in section 2(c) of these Conditions and Sripu'atiors: (ii) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Conditions and Stipulations or as reduced under Section 9 of these Conditions and Stipulations, at the time the loss or damage insured against by this policy occurs. together with Interest thereon; or (ii) the dMerence between the vales of the insured estate or interest as insured and the value of tie insured estate or interest subject to the defect, lien or encumbrance Ins -fired against by this policy. (b) In the event the insured has acquired the estate or interest in the manner described in Suction 2(a) of these Conditions and Stipulations or has conveyed the tole, then the liability of the Company shall continue;k set forth in Section 7(a) of these Condtlons and Stiaulat•orts. (c) The Company will pay only those costs. attorneys fees and expenses incurred in accordance with Section 4 of these Cordt:ons and Stipulations. IL LIMITATION OF LIABILITY (a) It the Company establishes tyre title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of attess to or from the land, or cures the claim of unmarket- abil ty of title, or otherwise establishes the lien of the insured mortgage, all as insured, In a reasonab'y daigent manner by any method. Including litigation and the completion of any appeals therefrom, it shall have fully pertcrmed its obligations with respect to that mailer and shall not be Basle for arty loss or Carnage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent. the Company shalt have no liability for loss or damage unit lbere has been a final determination by a court of competent jurisdiction, and disposi. ton of all appeals therefrom, adverse to tie title or to the lien of the insured mortgage, as insured. (c) The Company shall not be liable for loss or damage to arty insured for liability voluntarily assumed by the insured in settling arty claim or suit without the prior written consent of the Company. (d) The Comparry shalt not be liable for: (i) any indebtedness created subsequent to Date of Pet' except for advances made to protect the lie't of the in- sured mortgage and secured thereby and reasonab'e amounts expended to prevent deterioration of ftrovements; or (ii) construction ban advances rrade subsequent to Dale of Policy, except construction ban advanices made subse- quent to Date of Policy for the purpose 0' financing in whose or in part the construction of an improvement to the land which at Date of Polity were secured try the insured mortgage and which the insured was and eont:nued to be obligated to ad- vance at and after Date of Policy. 9 REDUCTION OF INSURANCE: REDUCTION OR TERMINATION OF LIABILITY. (a) All payments under this polity, except payments made for costs, attorneys' fees and expenses, sha I reduce the amount of the insurance pro tanto. However, any p-yments made prior to the acquisition of bile to the estate or interest as provided in Section 2(a) of these Conditions and Stipulations shall not reduce pro tanto the amount of insurance af:orded under this policy e+tcept to the extent that the payments reduce the amount of the indebtedness secured by the insured mortgage- (b) Payment in part by any person of the principal of the Indebledness, or any other obligation secured by the insured mortgage, or any volurtary partial satisfaction or release of the insured mortgage. to the extern of the payment. saiisfaclion or release, shall reduce the amount o1 insurance pro canto. The amount of insurance may thereafter be increased by accruing interest and aMices made to protect the pen of the ensured mortgage and secured thereby. with interest thereon, provided In no event shall the amount of insurance be Qreater than the amount of insurance stated in Schedule A. (c) Payment in fut: by any person or the voluntary Seisfac- tion or release of the insured mortgage shalt terinina;e all kabi::ty of the Company extent as provided in Section 2(a) of these Conditions and Stipulations. 10. LIABILITY NONCUMULATIVE. II the insured acquires title to the estate or interest in satisfac- tion of t'te indebtedness secured by the insured mortgage, or arty part thereof, it is expressly understood that the amount of insurance under this policy shall be reduced by any amount The Company may pay under any policy insuring a mortga;e to which exception is taken in Schedu'e B or to which the insured has agreed, assumed, of taken sub;ect, or which is hereattet executed by an insured and which is a Charge or Bet on the estate or interest described or re'erred to in Schedule A. and the amount so paid shay be deemed a payment under this policy. 11. PAYMENT OF LOSS. (a) No payment shaff be made without producing this policy for endorsement of the payment unless the policy has teen lost or destroyed, in which case proof o1 loss of destruc- t on shall be furnished to the satisfaction of the Company. (b) When liability and the exle'tt of loss or damage has teen definitely fixed in accordance with these Conditions and Stipulations. the loss or damage shall be payable within 30 days thereafter. 12. SUBROGATION UPON PAYMENT OR SETTLEMENT. (a) The Company's Right of Subrogation. VAene"ver the Company shall have settled and paid a claim under this policy. all right of submgation shalt vest in the Compary unaffected by any act at the insured claimant. The Company shall be subrogated to and be entitled to art rights and remedies which the insured claistam would have had against any person or p operty in respect to the claim had this policy not been issued. if requested by the Company. the insured ciairnant shaft transfer to the Company a'1 N"ts and remedies against any person or property necessary in order to perfect this fight of subrogation. The insured claimant shah permit the Company to sue, compromise or seine in the name of the insured Caimant and to use the name of the insured t amanl in any rarts- anon or litigation invoking these rights or remedies. If a payment on acco.tnt of a claim does rat fully cover the Icss of the insured claimant, the Company stW be subrogated to an rights and remedies of the insured cl marrl a~,er trite insured c'aimant shall have recovered its prircipal, interest, and costs o' collection. (b) The Insureds Rights and Umitatlons. Notwit.Warding the tcregotng, the owner of the indebtedness secured by the insured mortgage, provided the priority of the ten of the insured mortgage or its enforceabil ;y is not arected. may release or substitute the personal liability of any debtor or guarantor, or extend or otherwise modify the terms of pay- ment, or release a portion of the estate or interest from the lion of the insured mortgage, or re'ease any collateral security fcr the indebtedness. Ymen the permitted acts of the insured claimant occur and the insured has kvA ted(;e of arty claim of title or interest adverse to the lice to the estate or Wrest or the prionry or errlorceab:lny o1 the lien of the insured mortgage, as insured. the Company shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any. lost to tie Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (c) The CompanyY Rights Against Noninsured Obligoa The Company's right of subrogation against non-insured obligors shall exist and shall include. without limitation, the rights of the insured to indemnities. suaranties. other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. The Company's right of sub- rogation shall not be avoided by acquisition of the insured 4007A (continued on back cover) CONDITIONS AND STIPULATIONSv (Continued from inside back over) mortgage by an obligor (except an obligor described in Section 1(a)(ii) of these Conditions and Stipulations) who acquires the insured mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond and the obligor will not be an insured under this policy, notwithstanding Section 1(a)(i) of these Conditions and Stipulations. 13. ARBITRATION. Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Asso- ciation. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Com- pany in connection with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing parry. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and con- tract between the insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the lien of the insured mortgage or of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 15. SEVERABILITY. In the event any provision of this policy is held invalid or unen- forceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 16. NOTICES, WHERE SENT. All notices, required to be given the Company and any state- ment in writing required to be fumished the Company shall include the number of this policy and shall be addressed to the Com- pany at 6800 College Blvd., Suite 700, Overland Park, Kansas 66211. POLICY OF TITLE INSURANCE TRW Title Insurance Company 4007A 6800 College Blvd., Suite 700 / Overland Park, KS 66211 Area Code 913 491-5585 REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION ED 94-20 Date: May Jg,1994 Submitted to: Honorable Mayor/Chairman and City Council/Agency Members Submitted by: Michael T. Uberuaga, City Administrator/Executive Directory Prepared by: Barbara A. Kaiser, Deputy City Administrator/Economic Deve oT p t Subject: DOWN PAYhW.NT ASSISTANCE PROGRANI—PARTICIPANT APPROVAL Consistent with Council Policy? gQ Yes t l New Policy or Exception Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments: STATEnTENT OF ISSUE; Huntington Beach City Charter, Section 613, requires that each complete contract with a boiiower in the Community Development Block Grant and Redevelopment funded Down Payment Assistance Programs must be approved by the City Council/Agency. EECONI nfENDED 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"). 2. Authorize the Mayor to execute and the City Clerk to attest to each Agreement between the city and/or Agency and each participant as approved terein. 3. Release funds for Down Payment Assistance Program participants. ANALYSIS: As part of the 1993-94 Community Development Block Grant Program the Citizen Advisory Board recommended and the Council approved $200,000 as a pilot program to provide Down Payment Assistance to moderate income households and since that time the details of the program have been approved by the City Council. RCA ED 94 20 May 16, 1994 Page two On November 1, 1993, the Redevelopment Agency approved $400,000 in Redevelopment Housing Set -Aside funds to assist a minimum of fourteen low-income buyers as per Resolution No. 244 in the Brisas del Mar Condominium project. The low-income borrowers herein are participants in this program and some may be participants in the CDBG program as well. Huntington Beach City Charter, Section 613, requires the City Council to approve each contract in writing, including the Down Payment Assistance Program contracts. To complete each Agreement, the listing of potential participants, the amount of money loaned and the property subject to trust deed must be approved and incorporated into the Agreement by the City Council (see attached listing). It is recommended by staff that each listing be incorporated in the Agreement and approved at this time. Additional borrowers will be recommended until the funds are expended. ALTERNATIVES: Do not approve the participants. YI I # Community Development Block Grant— $200,000 total appropriation. Redevelopment Agency Housing Set -aside- $400,000 total appropriation. 14T IBAWSVK:jar 1140j DOWN PAYMENT ASSISTAKCE_MOGRAM Loan Location of Property am e AmountSublut to Trust Deed 94-11 Valerie Bastou $25,000 (Set -Aside) 409 Utica #D-43 $ 5,000 (CDBG) 94-12 Teresa LaReine Quick $25,000 (Set -Aside) 409 Utica #A-9 5,000 (CDBG) Note: Both borrowers have received "conditional Ioan approval" from Sanwa Bank and City/Agency approval is subject to "final approval" by the bank.