HomeMy WebLinkAboutVICTOR RIVERA/DEBRA BURGESS - 1995-04-03 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, I"Time Home-Buyers Program
Redevelopment Set-Aside, $400,000 and Redevelopment Set-Aside,
$750,000
I have reviewed our records regarding funding of 1st Tune Home-Buyers Program to
determine the names and amount of assistance which benefited the applicants from the
$400,000 in Redevelopment Set-Aside funds approved by the Redevelopment Agency
(RDA) at their November 1, 1993,meeting and from the $750,000 in Redevelopment
Set-Aside funds approved by the RDA for the Pacific Park Villas at their February 6,
1995 meeting
The Redevelopment Agency approved nine applicants from the $400,000 allocation in
conjunction with the City's CDBG lst Time Home-Buyers Program and one additional
applicant for the RDA 1st Time Home-Buyers Program only The RDA portion of these
loans are Bastou($25,000),Dieckmeyer($23,000), Gnffen($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 1"
Time Buyer Program The names and amounts are(Carrillo ($35,000),Forchione
($35,000), Heckethorn($35,000),Hossemali ($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
G/Joyce/Intermemo Recon rey doc
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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 540,794.31 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.Ho_ang for
overpayment,reducing the loan repayment to 543,092.23.
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•I}oycdlntcrnxmo Reconvey doc
PACIFIC PARK VILLAS ($750,000—RDA)
95-01 (2-1-95) Canllo,Ann $ 35,000 7861 Happy Drive, #102
RDA 12-19-94
95-02 (2-1-95) Lawrence,James and Jeanette $ 35,000 18051 Joyful Lane, #16
RDA 12-19-94
95-03 (2-1-95) Wong,Wesley Chi $ 35,000 7681 Happy Drive,#202
RDA 12-19-94
95-04 (2-1-95) Hocker, ChnstopherNandereb, Gayle$ 35,000 7681 Happy Drive,#101
RDA 12-19-94
95-06 (4-12-95) Rivera,Victor/Burgess,Debra $ 35,000 18061 Joyful Lane, #104
RDA 4-3-95
96-01 (1-24-96) Heckethorne, Sean&Jacquelyn $ 35,000 7871 Happy Drive,#102
RDA 1-16-96
96-02 (3-7-96) Margolis,Peter $ 35,000 18051 Joyful Lane, #104
RDA 3-4-96
96-03 ( Weinfeld,Julie $ 35,000 18061 Joyful Lane,#205
RDA 4-1-96
96-04 (7-17-96) Peltier,Edward $ 35,000 7871 Happy Drive,#201
RDA 7-15-96
96-05 (8-7-96) Wallace,Barbara Jo $ 35,000 18051 Joyful Lane,#205
RDA 8-5-96
96-06(8-7-96) Murch, Gregory $ 35,000 18051 Joyful Lane,#102
RDA 8-5-96
97-01 (1-29-97) Krueck,Deborah $ 35,000 18061 Joyful Lane,#101
RDA 1-21-97
97-02 (4-30-97) Osterhoudt,Robert and Kathy $ 35,000 18061 Joyful Lane,#102
RDA
G/Joyce/Intermemo Reconvey doc
97-03 (5-14-97) Hosseinali,Faroukh $ 35,000 18061 Joyful Lane,9201
RDA -
97-04 (7-23-97) Forchine,Richard $ 35,000 18051 Joyful Lane,4201
RDA 7-21-97
1st TIME BUYER ASSISTANCE($400,000 RDA)
94-4(2-11-94) Lawson, Sally $ 23,000 409 Utica Avenue#A-1
(RDA 1-18-94)
94-5 (2-11-94) Quick,Shauna $ 16,717 409 Utica Avenue#C-32
(RDA 1-18-94)
94-6 (2-11-94) Dieckmeyer,Barbara $ 23,000 409 Utica Avenue'#B-21
(RDA 2-22-94)
94-8 (2-11-94) Otto,TJShorb R. $ 23,000 409 Utica Avenue#A-7
(RDA 1-18-94)
94-10(2-11-94) Hoang,Tam $ 23,000 409 Utica Avenue#D-37
(RDA 2-22-94)
94-11 (5-18-94) Bastou,Valerie $ 25,000 409 Utica Avenue 0-43
(RDA 5-18-94
94-12(5-18-94) Quick La Reine,Teresa $ 25,000 409.Utica Avenue#A-9
(RDA 5-18-94)
94-13 (6-23-94) Melvin,Patrick $ 35,000 409 Utica Avenue 4D-39
(RDA 6-20-94)
94-14(7-27-94) Rivera,Hector&Iciar $25,000 409 Utica Avenue#A5
(RDA 7-18-94)
94-17 (10-4-94) Griffen,Olga Christina $ 25,000 409 Utica Avenue#C-23
(RDA 9-19-94) $243,717
i
G:rjoycefttennemo Reconvey.doc
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Ja �� OFFICE OF THE CITY CLERK
_ CITY OF HUNTINGTON BEACH
INTER-DEPARTMENT COMMUNICATION
"USMNVON LEACH
TO: Future City Clerks and Deputy City Clerks
FROM: Janelle Case, Deputy City Clerk per Instructions by Connie Brockway, City
Clerk
SUBJECT: Down Payment Assistance Forgivable Loans
DATE: September 16, 1999
The attached documents are included in this file to assist you in the future to determine
the forgiveability of the down payment assistance loans.
DOWN PAYMENT ASSISTANCE PROGRAM
Pacific Parb VillasI Council/Agency
Loan No. Name Property Address : _ Amount Date _
v 95-01 Carillo,Ana 7861 Happy Drive#102 92648 35,000 95 1/3/95
-02— Lawrence, James/Jeanette 18051 Joyful Lane#101A 92648 35,000'___— _ 1/3/95
95-03 Wong, Wesley 7861 Happry Drive#202 92648 — 35,000 113/95
95-04 Hocker, Christopher_&Vandereb, Gayle _ 7861 Happy Drive#101 92648 __35,000 _ 1/3/95
95-06 Rivera,Victor& Burgess, Debra 18061 Joyful Lane#104 92648 35,000 413/95
96161 Heckethome,Sean/Jacquelyn 7871 Happy Drive#102 92648 _ _35,000 1116196
96-02 - Margolis, Peter 18051 Joyful Lane#104 92648'-W_ _ 35,000 --W — 31A196
96-03 Wienfeld,Julie 18061 Joyful Lane#205 92648 - _ ' 35,000 _ 4/1/96
96-04 Peltier, Edward 7871 Happy Drive#201 92648 35,000 � 7/15/96
96-05 t/ Wallace, Barbara Jo 18051 Joyful Lane#205 92648 35,000 815/96
96-0G Murch, Gregory s. 16051 Joyful Lane#102.92648 35.000 8/5196
97-01 Krueck, Deborah'J. 18061 Ja ful Lane#103 92648 _ 35,000 __ 1/_21/97
97-02 Osterhauelt, Robert/Kathy 18061 Joyful Lane#102 92648 _ 35,000 — 4/30/97
97-03 Hosseinali, Faroukh 18061 Joyful Lane#201 92648 _ _�_35.000 r _ _ 5/5/97
97-04 ' Torchione, Richard 18051 Joyful Lane#201 92648 '-'--35,000, _ 7/1/97 4
1
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CITY OF HUNTINGTON BEACH
Inter-Department Communication
TO: Gus Duran,Economic Development
FRUM: Gall Hutton,City Attorney
DATE: Jane 1, 1999
SUBJECT: Determination of Loan Forgiveness
RLS 99-359
O'DEX:
BACKGROUND
You have asked for a determination of whether several loans made by the City of Community
Development Block Grant funds, for the first time home buyer down payment assistance
program,are forgivable.
ISSUE
Are the nine loans forgivable?
ANSWER
Yes, if they were funded with the first$100,000 appropriated for this program.
ANALYSIS
As part of the 1993-94 CDBG program the City Council approved$100,000 as a pilot program
to provide down payment assistance to moderate i_-icome households.
We have reviewed several RCAs submitted by your department to the City Council for
implementation of this program. The RCAs we reviewed were the originals in the City Clerk's
office. From our review of these documents,we have developed the following chronology:
10/25/93:The City Council approved sample loan documents and four participants: Diane
Culaciati,Michele Tullock,Osman Taban,and Caroline Sutherland in the total amount of
$40,475. (RCA attached hereto as Attachment 1).
1 ,
4/$A-99%1cmos:Duran527
11/15/93:The City Council was requested to approve and additional S 100,000 in CDBG funds
for the program. The Council deferred the item to December 6, 1993. (RCA attached hereto as
Attachment 2).
E 12/6/93: The City Council approved three more participants in the original program: Michelle
Schmaderer, Carol Kanarski, and Nicholas Kormeluk. The amounts of their loans are not listed.,
(RCA attached hereto as Attachment 3.)
12/20/93,Item E-17:The City Council approved an additional participant in the program,David
Dixson, for the amount of S 10,000, and increased the amount for participant Nicholas Kormeluk
from S8,600 to S 10,600. (RCA attached hereto as Attachment 4.)
12/20/93, Item F-2:The City Council approved an additional S100,000 for the program,but
changed the program to require repayment of these additional funds. There are two important
attachments to this RCA. The first is entitled"Approved Participants,"and Iists the following
six participants: Culiaciati,Taban, Sutherland,Schmaderer,Kanarski,and Kormeluk, in the total
amount of$61,952 2
The second important document attached to this RCA is the list of"Pending Participants." It
shows eight more participants in the total amount of S59,100. It is not determinable from this
RCA whether these persons were intended to be in the grant program or the loan program, and
we do not know when,if ever,these participants were actually approved.
1/3/94:The City Council approved three more participants in the original,non-repayment
program:Judy Young,Treva Love, and Ellen Ommondson, in the total amount of S31,000.
When added to the previously committed amount of$73,952, the total amount of funds
committed is$104,952. This exceeds the original$100,000 appropriated for the original,non-
repayment program. The analysis portion of this RCA states that"the approvals herein will be
the first funded with the new appropriation,"which implies that at least a portion of the funds
used for these participants were part of the funds that were conditioned for repayment, as
opposed to the original,non-repayment funds. However,the total numbers Iisted are roughly
consistent with the original S 100,000 set aside for the grant program. The total amount of loan
funds used is less than$5,000. (RCA attached hereto as attachment 5).
Our review of the above documents and chronology of events indicates that the Council did not
intend to require repayment of the original$100,000 appropriation. Clearly,then,the loans
made to Culiaciati,Taban, Sutherland,Schmaderer,Kanarski,Dixson and Kormeluk are
forgivable,because they were funded using$73,952 of the first$100,000 appropriation.
The problem is presented by the transactions with Young, Love, and Ommondson. We believe
that the Council's intent was to not require repayment from these participants. Unfortunately,
there was only$26,048 of the original,non-repayment funds available to these participants, and
collectively, they received S31,000. Thus, a small portion of the funds used for these
I t Note that an attachment to this RCA lists ten approved participants. Since the dates listed are after the Council
meeting of 12/6/93,we believe that this list has been erroneously added to the IV6193 RCA.
2 Please note that earlier during the same meeting,the Council had also approved David Dixson for S10,000,and an
additional$2000 for KormeIuk. Tbus the amount committed from the original S 100,000 was actually S73,952.
2
44:4-99%temosMur2n527
c
participants must have come from the second S 100,000,which the Council appropriated with the
condition that the loans be repaid,not forgiven.
CONCLUSION
There are vvo conflicting Council actions. The Council's intent was to include participants
Young, Love and Ommondson in the original, forgivable loan program. However,it appears that
a portion of the funds actually used for the loans to Young,Love and Ommondson were from the
second appropriation of funds,which included a repayment condition. Therefore,we
recommend that the Council clarify this conflict by approval of an RCA that forgives the loans
made to Young, Love and Ommondson.
Gail Hutton .
City Attorney
3
4Is:4 99t1emos:Duran327
j Council/Agency Meeting Held: 5-17-99
Deferred/Continued to:
_ e JCCl
Approved ❑ Conditionally Approved ❑ Denied City Clerk's ignature C-13"a kur
- 4f, ,+ti �r
Council Meeting Date: May 17, 1999 Department ID Number: ED 99-29
CITY OF HUNTINGTON BEACH
REQUEST FOR REDEVELOPMENT AGENCY ACTION
is
SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY_
MEMBERS
J T7 r<
SUBMITTED BY: RAY SILVER, Executive Director
•..a L
PREPARED BY: DAVID C. BIGGS, Economic Development Director,
,J D
SUBJECT: Authorize the Transferability of 15 Pacific Park Villas Down
Payment Assistance Loans —Approve and Authorize Execution
of Documents
Statement of issue,Funding Source,Recommended Action,Alternative Action(s),Analysts,Environmental Status,Attachment(s)
Statement of Issue: Currently, the down payment assistance loans made by the
Redevelopment Agency for Pacific Park Villas must be individually approved by the City
Council. In order to facilitate transfers of these loans, staff is requesting that the
Redevelopment Agency establish procedures for administrative approval of these
transactions.
Funding Source: None as a result of this action. ti
Recommended Action: Motion to:
1. Authorize the Executive Director and the Agency Clerk to execute on behalf-of the
Redevelopment Agency any and all documents necessary to transfer to new low and
moderate-income homebuyers the Down Payment Assistance Loans made by the
Agency at the inception of the Pacific Park Villas project. See Attachment No. 3 "List of
Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be
approved as to form by the Agency Counsel).
2. Authorize the Executive Director and Agency Clerk to execute on behalf of the
Redevelopment Agency any and all documents necessary to subordinate or to reconvey
the Agency loans (notes and deeds of trust), as these home owners refinance, sell their
F homes or meet their loan obligations, as stated in their notes and deeds of trust. See
Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas."
(All documents to be approved as to form by the Agency Counsel).
G
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REQUEST FOR REDEVELOPMENT AGENCY ACTION
MEETING DATE: May 17, 1999 DEPARTMENT 1D NUMBER: ED 99-29
Alternative Actions : The Redevelopment Agency can retain the authority to
approve the transferability of each and every Down Payment Assistance Loan made on
this project. The number of loans originated for this project was 16 loans. This means that
each and every time, Agency staff will have to prepare a Request for Agency Action,
thereby increasing staff tame and costs. It will also delay the ability the sellers and buyers
to close escrow quickly. In some cases the delays could cause undue hardship and cause
the sale of properties to fall out of escrow.
Analysis: In 1996, the Redevelopment Agency made 15 Down Payment Assistance
Loans to low- and moderate-income homebuyers purchasing dwellings at the Pacific Park
Villas residential project located near Talbert and Beach. The purpose of these loans were to
expedite the sales of homes in the Pacific Park Villas project and simultaneously meet the
Redevelopment Agency's obligation to assist low and moderate income persons with 20%
Set Aside Funds, as required by Redevelopment Law.
The loans made to these homebuyers were meant to be transferable to other low and
moderate-income families. The City Attorney's Office has been requested to make a
determination of the transferability and has rendered a decision indicating that the loans are
transferable to other homebuyers that meet the income qualification of having incomes below
120% of the median income for Orange County. (See attached memorandum from the City
Attorney's Office).
Some of these homebuyers are now ready to move on with their lives and are desirous to sell
their properties. To facilitate the closing of escrows without significant delays to sellers and
buyers, the Economic Development Department is requesting that the Redevelopment
Agency Board authorize the Executive Director and the City Clerk to administratively manage
the transferability of these loans. This will permit the Executive Director to execute
documents without having to come the Agency Board on each and every loan, especially
since these loans were prepared with the identical notes, deeds of trust and Covenants,
Conditions and Restrictions (CC&R's). The City Attorney's Office has provided an opinion on
the loans' transferability. '
Environmental Status: NIA
Attachment(s):
61ty idle Ws
i - n Number No.
1. City Attorney's Office Memorandum.
2. Sample Loan Documents.
3. List of Down Payment Assistance Borrowers at Pacific Park Villas.
RCA Author: Gus Duran X1529
RCAPPV.00C -2- 0 510 5199 9:34 AM
City Attorne 's Office Memorandum
• � .:I•Ftrr-
CITY OF HUNTINGTON BEACH
Inter-Department Communication
TO: David Biggs, Director of Economic Development
FROM: Gail Hutton, City Attorney
DATE: April 26, 1999
SUBJECT: Wallace Loan Documents
You have asked several questions concerning the Wallace loan documents.
1. Is the loan transferable?
A. Yes,with the Agency's prior written consent. See Section 18 of the Loan
Agreement.
2. What are the income limits for purchasers?
A. No greater than 120%of median income(moderate income) pursuant to Section 9
of the Loan Agreement.
3. Does the new buyer need to meet the income requirements of the CUM
A. Yes.
.4. Is the Equity Share payable if the buyer qualifies under the CCB.Rs?
A. Yes.
5. Can the interest be forgiven if the property's fair market value does not exceed 5%per
year?
A. No,unless the Agency approves forgiving the interest.
6. Should the Equity be calculated minus the selling expenses?
A. No.
Please contact me if you have any further questions.
e
Gail Hutton
City Attorney
44:4.99NI anoc B ig gs426
CITY OF HUNTINGTON BEACH
Inter-Office Communication
..�. Economic Development Department
E
, TO: Gail Hutton, City Attorney -
Paul D'Alessandro,Deputy City Attorney
FROM: David C. Biggs,Director of Economic Development
DATE: ' Aprii 20, 1999
SUBJECT: First Time Home Buyer Loan for Barbara Jo Wallace
Yesterday, April 19, I999, Gus Duran, the Department's Housing and Redevelopment
Manager met with Ms. Barbara Jo Wallace, her real estate agent and other property
w-Nmers of the Pacific Park Villas project to discuss 1heir.concerns regarding First Time
Homebuyer loans made to them by the Redevelopment Agency. As you may recall, at a
previous City Council meeting, 1-ir. Bob Osterhoudt made a plea to the City Council
requesting assistance for the property owners of this complex. In addition, Ms. Wallace
has written to the Mayor and the City Attorney (April 2, 1999) requesting the _
Redevelopment Agency's assistance in resolving her needs to sell her property with the
Agency's assistance.
The Economic Development Department is ready and willing to help Ms. Wallace and
the other property owners sell their homes, as they need to move on with their lives when
they desire,but we are in need of a legal opinion regarding the following issues:
1. Is the loan made to Ms. Wallace, which is similar to those made to the
other buyers of Pacific Park Villas,transferable?
2. What are the income limit requirements for the purchasers of these homes
wownerhen a property owner sells his/her home? (See attached 1999 Orange
County Affordable Housing Woiksheet issued"by the law firm of
Stradling, Yocca, Carlson&Rauth.)
3. Does a new buyer need to meet the'income requirements established in the
CC&R's?
4120/99:Gus buran:Houdev:WAI_L.ACE
4. Is the "Equity" payable if the sellers sell their home to a buyer that meets
the income requirements established in the Note and the CC&-R's?
5. Can the interest be forgiven if the property's "fair market value"does not
exceed 5%per year?
6. Should the "Equity" be calculated minus the selling expenses (See
Section 4A of Loan Agreement)?
We are requesting an immediate opinion on these issues, as Ms. Wallace has already
purchased a home in the State of NWashington and has a pending sale of her property in
Huntington Beach in the works, subject to the Agency's determination on these issues. At
the moment, her pending sale is being held up because neither the seller, nor the buyer
knows what to do with-the information on the note and deed of trust,or the CC&:R's.
Attached are copies of Ms. Wallace's documentation.These are the following:
I. Loan Agreement to Ms. Wallace from the Redevelopment Agency.
2. Promissory Note
3. Deed of Trust with Assignment of Rents
4. Lending Instructions
5. Certificate of Proposed Transferee
6. Declaration of Conditions,Covenants and Restrictions for Property
4120/99:Gus DuranMouder.WALLACE
Sample Loan Documents
ATTACHMENT #2
LOAN AGREEMENT
THIS LOAN AGREEMENT (the "Agreement") is made this .51L day of
193�,_by and between BARBARA JO WALLACE ("Participant") and the
RED VELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body
corporate and politic (the "Agency").
RECITALS
A. Participant:has entered into an agreement (the "Purchase Agreement")to purchase
that certain real property commonly known as , 18051 Jo, fume, 9205 - 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 1201/a of the current annual median income for the
Orange County area, as those terms are defined by California Health and Safety Code
Section 50093.
C. Participant has represented to the Agency that Participant aad Participant's
immediate family intend to reside in the Property at all times throughout the term of this
Agreement.
D. The Agency desires to assist persons of low and moderate income to purchase
residential property to increase, improve, and preserve low and moderate income housing
available at an affordable housing cost within the City of Huntington Beach(the "City").
E' The Agency wishes to tend, and Participant wishes to borrow,Program funds to
assist Participant to purchase the Property upon ttt terms and conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration the parties agree as follows:
I Ap-engy Loan. The Agency shall loan to Participant (the "Agency Loan")the
amount of Thirty-five Thousand Dollars(S35,00010) subject to the conditions and restrictions
set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the
Program. The Agency Loan shall be paid to the seller of the Property(the"Seller")by the
Agency through deposit of the Agency Loan proceeds into escrow with
TIMPO ESC Raw, INC., A CALIFORNIA CMPC PATIC N (the"Escrow Agent")(Escrow
No. 9442--e ). The Agency shall direct the Escrow Agent to apply the proceeds
of the Agency Loan on behalf of Participant to the purchase price of the Property, and,at
Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees,
and/or document fees. At such time, Participant shill execute and deliver to the Agency a
Loan Agreement
Pagel of S
4%e'(;:4-9G-Agree:W allace:loanagree
RLS 9L-S23
7/2G195
promissory note in favor of the Agency as holder in the amount of the Agency Loan with simple
Interest at fig a percent (5%) per annum, due in thirty (30) years and payable upon the earlier sale
refinancing or transfer of the Property substantially in the form of the "Promissory Note"
attached hereto as Exhibit B and Incorporated herein Participant shall also execute and deliver to
the Agency a second deed of trust encumbering the Property which shall secure the Promissory
Note (the "Agency Deed of Trust") in the form of Exhibit C attached hereto and incorporated
herein
2 Maintenance of Property Participant shall maintain the improvements on the
property in a manner consistent with community standards and in a manner which will uphold the
value of the Property, and shall keep the Property free from any accumulation of debris and waste
materials Participant agrees to comply with any and all covenants and agreements established by
any homeowner's association or other regulatory entity recognized by area property owners and
comply with all applicable federal, state and local laws
3 Due on Sale Transfer or Refinancing Participant agrees to notify the
Agency not less than thirty (30) days prior to (i) the sale or transfer of the Property or (n) any
refinancing of the lien of the Agency Deed of Trust or any lien to ,�hich the lien of the Agency
Deed of Trust is subordinate (the "First Mortgage") The Agency Loan and all interest accrued
thereon shall be due and payable upon(1) such sale or transfer, (n) the refinancing of the First
Mortgage for a loan amount in excess of the then current loan balance or for an amortization
period longer than the loan secured by the First Mortgage, or (III)Participant is no longer an
occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any
other obligation pursuant to this Agreement At the request of Participant the Agency may in its
sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan
4 Equity Sharing In the event that the Agency Loan becomes due and payable
prior to the thirtieth anniversary of the date of this Agreement, Participant shall pay to Agency
concurrently with such sale, transfer or refinancing, an amount equal to the "Equity Share
Amount " The Equity Share Amount shall be determined by applying a percentage factor (the
"Applicable Factor") to the difference between the Sales Price and the Purchase Price (defined
below) as follows
1 Prior to fifth anniversary
of the Agency Deed of Trust fifty percent (50%)
2 After fifth anniversary but
prior to sixth anniversary forty-eight percent (48%)
3 After sixth anniversary but
prior to seventh anniversary forty-six percent (46%)
4 After seventh anniversary but
prior to eighth anniversary forty-four percent (44%)
Loan Agreement
Page 2 of 8
4\s\C 4 96 Agrcc Walluc loamgrcc
RI.S 96 523
7/20/96
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5. Auer eighth anniversary but
prior to ninth anniversary: forty two percent (42%)
6. After ninth anniversary but
prior to tenth anniversary: forty percent (40%)
7. After ter.th anniversary but
prior to eleventh anniversary: thirty-eight percent (38%)
S. After eleventh anniversary but
prior to twelfth anniversary: thirty-six percent (36%)
9. After twelfth anniversary but
prior to thirteenth anniversary: thirty-four percent (34%)
10. After thirteenth anniversary but
prior to fourteenth anniversary: thirty-two percent (32%)
IL After fourteenth anniversary but
prior to fifteenth anniversary: thirty percent (30%)
12. After fifteenth anniversary but
prior to sixteenth anniversary: twenty-eight percent (28%)
13. After sixteenth anniversary but
prior to seventeenth anniversary: twenty-six percent (26%)
14. After seventeenth anniversary but
prior to eighteenth anniversary: twenty-four percent (24%)
15. After eighteenth anniversary but
prior to nineteenth anniversary: twenty-two percent (22%)
16. After nineteenth anniversary but
prior to twentieth anniversary: twenty percent (20%)
17. After twentieth anniversary but
prior to twenty-first anniversary: eighteen percent (IS%)
IS. After twenty-first anniversary but
prior to twenty-second anniversary: sixteen percent (I6%)
19. After twenty-second anniversary but
prior to twenty-third anniversary: fourteen percent (14%)
Loan Agreement
Page 3 of 8
,Ps`0:4-96-Agrcc:Wailacc:toanagm
RI S 96-323
7126/96
20 After twenty-third anniversary but
prior to twenty-fourth anniversary twelve percent (12%)
21 After twenty-fourth anniversary but
prior to twenty-fifth anniversary ten percent (10%)
22 After twenty-fifth anniversary but
prior to twenty-sixth anniversar} eight percent (8%)
23 After twenty-sixth anniversary but
prior to twenty-seventh anniversary six percent (6%)
24 After twenty-seventh anniversary but
prior to twenty-eighth anniversary four percent (4%)
25 After twenty-eighth anniversary but
prior to twenty-ninth anniversary two percent (2%)
26 After twenty-ninth anniversary but
prior to thirtieth anniversary one percent (1%)
27 After thirtieth anniversary zero percent (0%)
The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in
the Property, exclusive of escrow fees, title insurance costs, broker's commissions loan fees or
any other closing or transaction costs
The actual cost to Participant of all capital improvements to the Property made while
Participant owned the Property may be added to the Purchase Price if Participant complies with
the following
No capital improvements which cost more than two thousand five hundred dollars
($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion
of such capital improvements to the Property Participant shall send the following to the Agency
(1) an itemized list of the improvements, (n) proof of completion of the improvements and (111)
evidence of the cost of the improvements The costs incurred by the Participant for capital
improvements which cost less than two thousand five hundred dollars ($2,500) shall be added to
the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a
form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan
The "Sales Price" is the price paid by the Buyer of the Property to Participant for
Participant's interest in the Property, exclusive of escrow fees, title insurance costs, broker's
commissions loan fees or any other closing or transaction costs
Loan Agreement
Page 4 of 8
4\s\G 4 96 Agrcc Wallacc loanagrcc
R S 96 523
7/26/96
,
A. Ec uit S�.� hate Upon Sale-or Transfer. The Equity Share Amount shalt be
payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer")
whose income exceeds 120% of the current annual median income for the Orange County area. If
the Buyer does not submit an income verification statement to the Agency, the Buyer shall be
deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the
Equity Share Amount shall not become payable.
B. E uit hate U on Refinan:in or Failure to Occuply. The Equity
Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property
or material breach of any other provision of this Agreement which causes the Agency Loan.to
become due and payable. The Sales Price for purposes of determining the Equity Share Amount
shall be determined by an appraisal of the Property. The Agency shall appoint a certified,
independent,'appraiser to conduct an a causal ofthe Pro ert at Partici ant's ex erase and
Pa iteipant agrees t at in such event the Equity Share Amount shall be the Applicable Factor
multiplied by the difference between the Purchase Price and the appraised value of the Property as
of the time of such refinancing. This Agreement shall be terminated upon the Participant's
repayment of the Agency Loan and payment of the Equity Share Amount as provided in this
Agreement.
C. Expiration of E uity Share Obligation. In the event the Participant
does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or
is not in material breach of any other provision of this Agreement before the Thirtieth anniversary
of the date of this Agreement, the Participant shall Lave no obligation to pay the Equity Share
Amount to Agency upon any later sale, transfer or refinancing.
5. Occupancy Standards.The Property shall be used as the personal residence of
Participant and Participant's immediate family and for no other purpose. Participant shall not
enter into an agreement for the recital or lease of the Property.
6. Income Information. Participant has submitted an eligibility verification form to
the Agency prior to execution of this Agreement. Participant represents and warrants to the
Agency that all information Participant has provided and will provide in the future is and will be
true, correct and complete. Participant acknowledges that the Agency is relying upon ,
Participant's representations that Participant's income does not exceed 120% of the area median
income and would not have entered this Agreement if Participant's income exceeded 120% of the
area median income.
7. Loan Servicin The Agency may contract with a private lender to originate
and service the Agency Loan.
8. Participant Financing. Participant shall obtain financing for the purchase of the
Property from the Southern California Home Financing Authority or a reputable institutional
lender approved by the Agency(the "Lender"). The lien secured by the Agency Deed of Trust
Loan Agreement
Page 5 of 8
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Ill S 96-523
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shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns
In addition not less than three percent (3%) of the Purchase Price of the Property shall be paid in
cash from Participant's own resources and not from the proceeds of a loan
9 Covenants Participant and the Agency shall execute and have recorded in the
Official Records of Orange County, California a 'Declarat►on of Conditions Covenants and
Restrictions for Property " substantially in the form of Exhibit D attached hereto and incorporated
herein in which Participant agrees that the Properq shall only be owned by Participant or other
persons or families of low or moderate income a-,ailable at an affordable housing cost, as those
terms are defined in California Health & Safet} Code Sections 50093 and 50052 5, and that
Participant shall not discriminate against any person or group of persons on the basis of race
color, religion sex marital status, national origin or ancestry Such covenants shall run with the
land in favor of the Agency and the City
10 Non-Waiver Failure to exercise any right the Agency may have or be entitled to
in the event of default hereunder, shall not constitute a waiver of such right or any other right in
the event of a subsequent default
11 Indemnification The Participant shall defend, indemnify and hold harmless
the Agency and the City of Huntington Beach and their respective officers agents employees
representatives and volunteers from and against any loss, liability, claim or judgment relating in
any manner to the Property or this Agreement The Participant shall remain fully obligated for the
payment of property taxes and assessments related to the Property There shall be no reduction in
taxes for Participant nor any transfer of responsibility to the Agency or the City to make such
payments by virtue of the Agency Loan
12 Defaults Failure or delay by either party to perform any term or provision of
this Agreement which is not cured within thirt) (30)days after receipt of notice from the other
party constitutes a default under this Agreement, provided, however, if such default is of the
nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default
hereunder by commencing to cure within such thirty(30) day period and thereafter diligently
pursuing such cure to completion The party who so fails or delays must immediately commence
to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or
remedy with diligence
The injured party shall give written notice of default to the party in default
specifying the default complained of by the injured party Except as required go protect against
further damages, the injured party may not institute proceedings against the party in default until
thirty(30) days after giving such notice Failure or delay in giving such notice shall not constitute
a waiver of any default, nor shall it change the time of default
13 Documents Participant is aware that the Agency has prepared certain
documents to implement the Program and secure repayment of the Agency Loan Participant has
reviewed and agrees to execute the following documents prior to receiving the Agency Loan
Loan Agreement
Page 6 of 8
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RIS96521
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(a). Disclosure Statement;
(b) Promissory Note;
(c) Agency Deed of Trust; and
(d) Declaration of Conditions, Covenants and Restrictions of Property..
Participant agrees and acknowledges that the Agency Deed of Trust and the
Declaration of Conditions, Covenants and Restrictions of Property shall be recorded with the
County Recorder of the County of Orange and shall appear of record with respect to and as
encumbrances to the Property.
14. Further Assurances. The Participant shall execute any further documents
consistent with the terms of this Agreement, including documents in recordable form, as the
Agency shall'from time to time find necessary or appropriate to effectuate its purposes in entering
into this Agreement and making the Agency Loan_
15. Governine Law. This Agreement shall be governed by the laws of the State
of California. Any legal action brought under this Agreement must be instituted in the Superior
Court of the County of Orange, State of California, in an appropriate municipal court in that
county, or in the Federal District Court in the Central District of California.
. 16. Amendment of Agreement. No modification, rescission, waiver, release or
amendment of any provision of this Agreement shall be made except by a written agreement
executed by the Participant and Agency.
17. Agency May Assign. Agency may, at its option, assign its right to receive
repayment of the loan proceeds without obtaining the consent of the Participant.
18. Participant Assignment Prohibited. In no event shall Participant assign or
transfer any portion of this Agreement without the prior express written consent of the Agency,
which consent may be given or withheld in the Agency's sole discretion. No assumption of the
Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to
assign all or any portion of its rights to the loan proceeds hereunder.
19. Entire A reement. This Agreement constitutes the entire understanding and
agreement of the parties. This Agreement integrates all of the terms and conditions mentioned
herein or incidental thereto, and supersedes all prior negotiations, discussions and previous
Loan Agreement
Page 7 of 8
�s(1:�-7G.A�cc:Waflucaoinagrcc
I 5 7G-52]
7r2G.R6
agreements between the Agency and the Participant concerning all or any part of the subject
matter of this Agreement
IN WITNESS WHEREOF the parties ha-,e executed this Agreement as of the day and
year written below
"PARTICIPANT"
a
Date AUGUST 13, 1996 19 By %ZL�t'�t2i< Y CG/-i(
B90M JO WALLACE
Printed Name
Date , 19 By
Printed Name
Date 19 By
Printed Name
THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH
a public body corporate and politic
Date �Cc au,o , 19�( _ By 7��.rc--
Chairman
ATTEST APPROVED AS TO FORM
Agency Clerk %j 1 Agency Counsel
REVIEWED AND APPROVED INITIATED AND APPROVED
w
Execute a erector Director of Economic bevelopment
Loan Agreement
Page 8 of 8
4\s\G 4 96 Agree Wallace loanagrcc
RI.S 96 523
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EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
PARCCL 1:
An undivided one twenty second (1/221 fee simple interest as a tenant in cormnon in and to
all of the Common Area defined in Declaration referred to below and described in tt►e
condominium Plan (••Plan") for Lot I of Tract tto. 14828, which Plan was recorded on August
25, 1994 as instrument tla. 94-0525335 of official Records of orange County, over Lot 1 of
Tract No. 14828, in the City of Huntington Beach, County of orange, State of California,
as per map filed in Book 706, Pages 27 to_ 29 of ltiscellaneous Raps, in the office of the
County Recorder of said County.
Excepting therefrom all oil, petroleum, asphs.ltum, gas, minerals and other hydrocarbon ,
substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds,
and in various other deeds of record.
PARCEL 2:
Unit Ila. 22 consisting of certain► airspace and surface elements, as shown and described in I
the Condominium Plan referred to in Parcel l above.
Parcel 3:
non-exclusive easements for access, ingress, egress, use, enjoyment, drainage,
encroachment, support, maintenance, repairs and for other purposes, all as described in
that certain Declaration of covenants, conditions and Restrictions and Reservation of
Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument, No. 94-0525336
Of official Records.
Parcel 4:
Exclusive easements appurtenant to Parcels I and 2 referred to above, for balcony or patio
purposes, over tl►e areas:defined, depicted and assigned on the Plan.
{
Exhibit A to Loan Agreement
Page 1 of 1
41s`,Agrcc:bltr�oiis:fixhib<<AW712W`7G
r
EXHIBIT B
PROMISSORY NOTE
$ 35,000 00 Huntington Beach California
AUGUST 5TH 19 96
FOR VALUE RECEIVED the undersigned ("Maker") promises to pay to The
Redevelopment Agency of the City of Huntington Beach ("Holder") at 2000 Main Street, P O
Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct
from time to time in writing, Thirty-five Thousand Dollars ($35,000 00) (the "Note Amount")
together with interest thereon at the rate set forth herein All sums hereunder shall be payable in
lawful money of the United States of America and all sums shall be credited first to interest then
due and the balance to principal
1 Interest Rate
Simple interest shall accrue on the Note Amount at a rate of five percent (5 00%) per
annum If the fair market value of the Property does not increase at least five percent (5 00%) per
annum the accrued interest on the Note Amount shall be forgiven by the Holder
2 Maturity Date
The balance of all unpaid principal and accrued interest shall be due and payable on
AUGUST STH , 20 6 (thirtieth (30th) anniversary date of this Promissory Note)
3 Acceleration
The whole of the Note Amount plus accrued interest and all other payments due
hereunder shall become due and be immediately payable to the Holder by the Maker upon the
occurrence of any one of the following events
(a) Maker sells or otherwise transfers title to the Property, or
(b) Maker refinances any lien or encumbrance to which the Agency Deed of
Trust is subordinate for a loan amount which is in excess of the then current loan balance
of such prior lien or extends the amortization period of the loan secured by such prior lien,
or
(c) Maker fails to occupy the Property or to perform any obligation under the
Agreement (as hereinafter defined)
"Exhibit B" to Loan Agreement
Pagel of 3
4\s14 96Agrcc Wallacc Cxhibdi3
RLS 96 523
7/26/96
4. Security for Note
This Promissory Note shall be secured by a second deed of trust encumbering the Property
(the "Agency Deed of Trust"), executed by Maker as Trustor in favor of Holder as Trustee.
5. Prepayment of Note Amount
Maker may prepay to Holder the full Note Amount, together with simple interest thereon
at a rate of five percent (5.00%) per annum, at any time prior to the due date of the Note
Amount.
6. Loan Agreement
This Promissory Note is made and delivered pursuant to and in implementation of Loan
Agreement entered by and between the Holder and the Maker dated A[1c�sr 5, ,
1
9 (the "Agreement"), a copy of which is on file as a public record with the Holder and is
incorporated herein by reference. The Maker acknowledges that but for the execution of this
Promissory Note, the Holder would not enter into the Agreement or make the loan contemplated
therein. Unless definitions of terms have been expressly set out at length herein, each term shall
have the same definition as set forth in the Agreement.
7. Holder May Assign
Holder may, at its option, assign its right to receive payment under this Promissory Note
without necessity of obtaining the consent of the Maker.
8. Maker Assignment Prohibited
In no event shall Maker assign or transfer any portion of this Agreement without the prior
express written consent of the Holder, which consent may be given or withheld in the Holder's
sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This
Section sliall not prohibit the Holder's right to assign all or any portion of its rights to the loan
proceeds hereunder.
9. Attorneys'Fees and Costs ,
In the event that any action is instituted to enforce payment under this Promissory Note,
the Maker promises to pay such sums as a court may fix for court costs and reasonable attorneys'
fees.
10. hion-Waiver
Failure or delay in giving any notice required hereunder shall not constitute a waiver of
any default or late payment, nor shall it change the time for any default or payment.
"Exhibit B" to Loan Agreement
Page 2 of 3
4\s%4.7G Agree:W alhce:LxhL"oitl3
Ri S 76-323
71261+IG
I 1 Successors Bound
This Promissory Note shall be binding upon the parties hereto and their respective heirs,
successors and assigns
"MAKER"
By
f
Printed Name BARBAtzA JO WALLA,
By
Printed Name
By
Printed Name
"Exhibit B" to Loan Agreement
Page 3 of 3
4\S\4 96Agrcc Wallace rxhlbdB
RL.S 96 523
7/26/96
RECORDING REQUESTED BY )
AND WHEN RECORDED RETURN TO: }
}
Redevelopment Agency of the City of }
Huntington Beach )
2000 Main Street }
Huntington Beach, California 92648 }
Attn: Agency Clerk }
(Space Abara Tut 4�e For Recadera Ilse.1
This document is exempt from
recording fees pursuant to
Government Code Section 6103.
DEED OF TRUST INVITH AS�TGNMENTS OF RENTS
THIS DEED OF TRUST is made this ST11 day of AUG. , 19_96, by and among
BARBARA JO WALLACE, whose address is 18051 Joyful Lane, i�205, Huntington Beach,
California(the"Trustor") and THE CITY OF HUNTINGTON BEACH, a municipal corporation
(the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH, a public body corporate and politic(the"BENEFICIARY"), whose address is
2000 Main Street, Huntington Beach, California 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 deerred 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 Iien thereon or payable
under any agreement for the sale thereof, SUBJECT,HOWEVER, to the right, power and
authority hereiriafter given to and conferred upon Beneficiary to collect and apply such rents,
issues and profits, and all sums of money payable on the purchase price of said property secured
by a lien thereon or payable under any agreement.
"Exhibit C" to Loan Agreement
Page I of 15
4\eZj:4-9Gxget:Wallscc:L•xliibilC
RLS 96-523
7136196
A FOR THE PURPOSE OF SECURING
1 Payment of the sum of Thirty-five Thousand Dollars (S35 000 00) with interest
thereon according to the terms of a Promissory Note of even date here"ith 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 lhreafter
borrowed from the Beneficiary by the then record owner or owners of said property when
evidenced by another Promissory Note or Notes or (b) as may be added to the indebtedness
secured hereby in accordance with the provision of this Deed of Trust
3 Performance of each and every obligation, covenant promise or agreement of
Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated
AUGUST 5 19 96 , insofar as the terms and conditions of that agreement may apply to
Trustor
4 Payment, with interest thereon, future indebtedness or obligation of the Trustor (or
of any successor-in-interest of the Trustor to said property) to the Beneficiary, whether created
directly or acquired by assignment, whether absolute or contingent whether due or not, whether
otherwise secured or not or whether existing at the time of the execution of the Deed of Trust or
arising thereafter
B TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES
1 To keep said property in good condition and repair, to allow Beneficiary or its
representatives to enter and inspect the premises at all reasonable times and access thereto, shall
be permitted for that purpose, not to remove or demolish any building thereon not to make
alterations thereto without the consent of the Beneficiary, to suffer or permit no change in the
general nature of the occupancy of the premises without Beneficiary's written consent, to
complete or restore promptly and in good workmanlike manner any building which may be
constructed, damaged or destroyed thereon, including, without restricting the generality of the
foregoing damage from termites and dry-rot, to pay when due all claims for labor performed and
materials furnished in connection with such property and not to permit any mechanic's lien against
such property, to comply with all laws affecting such property or requiring any alterations or
improvements to be made thereon, not to initiate or acquiesce in any zoning reclassification
without Beneficiary's written consent, not to commit or permit waste thereon, not to commit,
suffer or permit any act upon such property in violation of the law, and to paint, cultivate irrigate
fertilize, fumigate, prune, and do all other acts that from the character or use of said property may
be reasonably necessary, to promptly pay all amounts due others upon agreements of lease or
conditional sale of all fixtures, furnishings and equipment located thereon
If the loan secured hereby or any part thereof is being obtained or should any
additional loan be made hereafter for the purpose of financing rehabilitation improvements on said
property, Trustor further agrees, anything in this Deed of Trust to the contrary notwithstanding
"Exhibit C" to Loan Agreement
Page 2 of 15
MAG 4 96agrcc Wallacc CxlubdC
121 S 96 523
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(a) to complete the same in accordance with City approved plans and specifications satisfactory to
Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation;
(c) to replace any work or materials unsatisfactory to Beneficiary within fifteen(l5) calendar days
after written notice from Beneficiary of such fact, «'kith notice may be given to Trustor by
registered or certified mail, sent to his last known address, or by personal service of the same; (d)
that work shall not cease on the rehabilitation of such improvements for any reason whatsoever
for a period of fifteen (15)calendar days, whether consecutive or not, without the written
permission of the Beneficiary;(e) to pay when due all claims of labor and materials furnished in
connection with the said rehabilitation and not to permit any claims of lien for said work or
material to be filed of record against the property;(t) not to permit any stop notice claims to be
Presented to Beneficiary. if said property is part of a larger tract upon which improvements will
be constructed, Trustor shall make separate contracts and subcontracts for said construction
which shall pertain to the said property only and shall keep separate, full and complete records of
all work and materials furnished to the said property. Trustee upon presentation to it of an
affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this
paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to
act thereon hereunder.
2. To provide, and maintain in force at all times with respect to said property, fire and
other types of insurance as may be required by Berefciary. All of such insurance shall have a loss
payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and
in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be
delivered to and remain in possession of Beneficiary as further security for the faithful
performance of these trusts. At least thirty (30)days prior to the expiration of any insurance
policy, a policy or policies renewing or extending such expiring insurance shall be delivered to
Beneficiary together with written evidence showing payment of the premium therefor and, in the
event any such insurance policy and evidence of the payment of the premium therefor are not so
delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests
Beneficiary to obtain such'insurance and Beneficiary,without obligation to do so,without notice
to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain
such insurance through or from any insurance agency or company acceptable to it, pay the
premium thereof, and may add the amount thereof to the indebtedness secured hereby,which
amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or
company,or any other person, any information contained in or extracted from any insurance
policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured
hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the
collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter.
In case of insurance loss,Beneficiary is hereby authorized either(a) to settle and adjust any claim
under the insurance policies provided for in this document without the consent of the Trustor, or
(b) to allow Trustor to agree with the insurance company or companies on the amount to be paid
upon the loss. In either case,the Beneficiary is authorized to collect and make receipt of any such
insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings
or improvements under the terms of any lease or leases which are or may be prior to the lien of
this Deed of Trust and such damage or destruction does not result in cancellation or termination
"Exhibit C" to Loan Agreement
Page 3 of 15
4',0.0:4.96agree:%vallace:C•xhibitC
KLS 9G-523
Md.%
of such lease such proceeds after deducting therefrom any expenses Incurred in the collection
thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings
or Improvements on said premises In all other cases, such Insurance proceeds at the option of
the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether
due or not or in such order as Beneficiary may determine or be held by the Beneficiary and used
to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or Improvements
on said premises Such buildings and improvements shall be so restored or rebuilt as to be of at
least equal value and substantially the same character as prior to the damage or destruction and
shall be in a condition satisfactory to Beneficiary Such application or release shall not cure or
waive any default or notice of default hereunder or Invalidate any act done pursuant to such
notice Any and all unexpired insurance shall inure to the benefit of and pass to the purchaser of
the property conveyed at any Trustee sale held hereunder
3 To pay (a) at least ten (10) days before delinquency all general and special City
and County taxes and all assessments on appurtenant water stock affecting such property (b)
when done, all special assessments for public improvements without permitting any improvement
bond to issue for any special assessment (c) when done, all encumbrances, charges and lines with
Interest, on said property, or any part thereof, which are or appears to be prior to superior hereto,
(d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act
required of the Lessee or its successor in interest under the terms of the instrument or instruments
creating said leasehold, (e) all costs, fees and expenses of this trust (0 for any statement
regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the
maximum allowed by law thereof at the time when such request is made (g) such other charges
for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in
Interest to Trustor as the Beneficiary may deem reasonable
If, by the laws of the United States of America, or of any state having jurisdiction over the
Trustor, any tax is due or becomes due in respect to the Issuance of the Note hereby secured the
Trustor covenants and agrees to pay such tax in the manner required by such law Should Trustor
fall to make any such payment, Beneficiary may elect to make such payment, Beneficiary may
elect to make such payment and any amount so paid may be added by Beneficiary to the
indebtedness secured hereby and shall bear a like rate of Interest
4 That, should Trustor fall to make any payment or do any act as provided in this
Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to
or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make
or do the same in such manner and to such extent as either may deem necessary to protect the
security hereof, Beneficiary or Trustee being authorized to enter upon said property for such
purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the
security hereof or the property covered by this Deed of Trust, or the rights or powers of
Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or
lien, which in the Judgment of either is or appears to be prior or superior hereto, and (d) in
exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees
Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so
"Exhibit C" to Loan Agreement
Page 4 of 15
4h\G 4 96agrcc Wallace CxhtbdC
iil S 96 521
7/26/96
expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like
rate of interest.
5. To appear in and defend any action or proceeding purporting to affect the security
hereof or the property which is covered by this Deed of Trust, or the rights or powers of
Beneficiary or Trustee, and whether or,not Trustor so appears or defends, to pay all costs and
expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such
action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party
defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such
property id directly questioned by such action, including any action for the condemnation or
partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust.
b. 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 mineial of any kind or character, or sell, convey, further encumber, or alienate
said property, or any part} 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 Mote evidencing the same, immediately due and payable, and no
waiver of this right shall be effective unless in writing;.
S. That any award, settlement or damages for injury or damages to such property, or
in construction with the transaction financed by such loan, and any award of damages in
connection with any condemnation for public use of or injury to said property, or any part thereof,
is hereby assigned and shall be paid to Beneficiary,who may apply or release such monies
received by it in such manner and with the same effect as above provided for the disposition of
proceeds of fire or other insurance.
9. That, by accepting payment of any sums secured hereby after its due date, or by
making any payment, performing any act on behalf of Trustor, that Trustor was obligated
hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to
the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt
payment when due of all sums so secured or to declare a default for failure so to pay.
10. That at any time, or from time to time, without liability of the Beneficiary or
Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this
Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal
liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of
Trust upon the remainder of said property for the full amount of the indebtedness then or
"Exhibit C" to Loan Agreement
Page 5 of 15
4WG:4-95agrec:Wallace:$xhibiIC
R!S%-523
7RW96
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
I 1 That the lien hereof shall remain in full force and effect during any postponement
or extension of time of payment of the Indebtedness secured hereby or any part thereof
12 That upon written request of Beneficiary stating that all sums secured hereby have
been paid and upon surrender of this Deed of Trust and said Note or Notes to Trustee for
cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without
warranty, the property then held hereunder The recitals in such reconveyance of any matters of
fact shall be conclusive of the truthfulness thereof The grantee in such reconveyance may be
described as "the person or persons legally entitled thereto " Such request and reconveyance shall
operate as re-assignment of the rents Issues, royalties and profits assigned to Beneficiary Five
(5) years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of
Trust (unless directed in such request to retain them)
13 That as additional security, Trustor irrevocably assigns to Beneficiary the rents,
issues and profits of the property affected by this Trust Deed for the purposes and upon the terms
and conditions set forth below This assignment shall not impose upon Beneficiary any duty to
produce rents from the property affected by this Trust Deed, or cause Beneficiary to be (a)
"mortgages in possession" for any purpose, (b) responsible for performing any of the obligations
of the lessor under any lease or (c) responsible for any waste committed by lessees or any other
parties, for any dangerous or defective condition of the property affected by this Trust Deed, or
for any negligence in the management upkeep or control of such rights to rents, issues and
profits is not contingent upon and may be exercised without possession of, the property affected
by this Trust Deed
Beneficiary confers upon Trustor a license("License") to collect and retain the rents,
issues and profits of the property affected by this Trust Deed as they become due and payable,
until the occurrence of a default hereunder Upon such default, the License shall be automatically
revoked and Beneficiary may collect and retain the rents, issues and profits without notice and
without taking possessions of the property affected by this Trust Deed This right to collect rents,
issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as
otherwise provided herein, and neither said right, nor termination of the License, shall impose
upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part
of the property affected by this Trust Deed If Trustor shall default as aforesaid, Trustor's right to
collect any such money shall cease and Beneficiary shall have the right, with or without taking
possession of the property affected hereby, to collect all rents, issues, royalties and profits and
shall be authorized to, and may, without notice and irrespective of whether declaration of default
has been delivered to Trustee and without regard to declaration of default has been delivered to
Trustee and without regard to the adequacy of the security for the indebtedness secured hereby,
either personally or by attorney or agent without bringing any action or proceeding, or by receiver
"Exhibit C" to Loan Agreement
Page G of 15
4\c\G 4 96agrcc Wallacc LxlubtlG
RLS 96 523
7/26/96
to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said
property, make cancel, dnforce and modify leases, obtain and eject tenants, and set and modify
rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said
rents, issues, and profits of the property affected i.ereby, 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 la%vs 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 Benefi-iary of all such rents, issues, royalties and
profits pursuant hereto, after execution and delivery of declaration of default and demand for sale
as hereinafter provided; or during the pendency of Trustee's sale proceedings hereunder, shall not
cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto,
but such rents, issues, royalties and profits, less a'.1 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 sash notice, request or demand; (d) as long as
any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise
consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always
be kept separate and distinct, notwithstanding the union of said estates in any party; (e)Trustor
agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants,
agreements, terms, conditions and provisions under any lease affecting the premises and to neither
do anything, nor to permit anything to be done which may cause modification or termination of
any such lease or of the obligations of any lessee or person claiming through such lease or the
rents provided for therein or the interest of the lessor or the Beneficiary therein or thereunder.
Trustor further agrees he will not execute a Deed of Trust or mortgage which may be or become
superior to any leasehold estate that is security for this Deed of Trust. In the event of a violation
of any of the covenants set forth in this paragraph,Beneficiary shall have the right, at its option,
to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of
said violations shall not be deemed to be a consent to or waiver or any other violation. If the
security for this Deed of Trust is a leasehold estate,the term"property" as used in this Deed of
"Exhibit C" to Loan Agreement
Page 7 of 15
4`sC:d-9Gagrcewallace:l:xhibitC
R!S 9G-523
W2G19G
Trust shall be deemed to mean the leasehold estate whenever the context so requires for the
protection of the Beneficiary
15 That upon default by Trustor in payment of any indebtedness secured hereby or in
performance of any agreement, and the Promissory Note, if applicable, hereunder and upon
default by Trustor under the terms of any encumbrance, charge or lien which is or appears to be
prior or superior hereto Beneficiary may declare all sums secured hereby immediately due and
payable by delivery to Trustee of written declaration of default and demand for sale of written
notice of default and of election to cause to be sold said property, which notice Trustee shall
cause to be filed for record Beneficiary shall also deposit with Trustee this Deed of Trust and
any Notes and all documents evidencing expenditures secured hereby After the lapse of such
time as then may be required by law following recordation of such notice of default, and notice of
sale having been given as then required by law, Trustee without demand on Trustor, shall sell
said property at the time and place fixed by it in such notice of sale whether as a whole or in
separate parcels, and in such order as it may determine at public auction to the highest bidder for
case in lawful money of the United States payable at time of sale Trustee may postpone sale of
all or any portion of said property by public announcement at such time and place of sale, and
from time to time thereafter may postpone such sale by public announcement at the time fixed by
the preceding postponement Trustee shall deliver to such purchaser its Deed conveying the
property so sold, but without any covenant or warranty express or Implied The recital in such
Deed of any matters of fact shall be conclusive of the truthfulness thereof Any person, including
Trustor, Trustee, or Beneficiary as hereinafter defined may purchase at such sale Trustee may
also sell at any such sale and as part thereof any shares of corporate stock securing the obligations
secured hereby, and Trustor waives demand and notice of such sale (Beneficiary at its option
may also foreclose on such shares by Independent pledge sale, and Trustor waives demand and
notice of such sale) After deducting all costs, fees and expenses of Trustee, and of this Trust,
including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of
sale to payment, first, all sums expended under the terms hereof, not then repaid, with accrued
interest at the rate then payable under the Note or Notes secured hereby, and then of all other
sums secured hereby, and if there are any proceeds remaining shall distribute them to the person
or persons legally entitled thereto
16 To waive, to the fullest extent permissible by law the right to plead any statute of
limitations as a defense to any demand secured hereby
17 That Beneficiary may, from time to time, by instrument in writing substitute a
successor or successors to any Trustee named herein or acting hereunder, which instrument,
executed and acknowledged by Beneficiary and recorded in the office of the recorder of the
county or counties where such property is situated, shall be conclusive proof of property
substitution of such successor Trustee or Trustees, who shall without conveyances from the
Trustee predecessor, succeed to all its title, estate, rights, powers and duties including but not
limited to the power to reconvey the whole or any part of the property covered by this Deed of
Trust Such instrument must contain the name of the original Trustor, Trustee and Beneficiary
hereunder, the book and page where this Deed of Trust is recorded If notice of default shall have
"Exhibit C" to Loan Agreement
Page 8 of 15
4h'C 4 96agrce Wallacc rAtbdC
RLS 96 523
7/20/96
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 pledge, of the Note secured hereby,
whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so
requires, the masculine gender includes the feminize and/or neuter, and the singular number
includes the plural.
19. That in the event the property secured by this Deed of Trust is income producing
property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on
January 1, a written operational report. Such ope:F-tional report shall contain a brief but complete
statement of the year's income and expenses of such property, a list of all vacancies, and a
statement of any material change in the property or business carried on therein for such period.
20. That in the event of a demand for, and the preparation and delivery of a written
statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and
2954 of the Civil Code of California, Beneficiary sha?l be entitled to make a reasonable charge,
not exceeding the maximum amount which is permitted by law at the time the statement is
furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered
to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust,
including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured
hereby in connection with the transfer of said property, or releasing an existing policy of fire
insurance or other casualty insurance held by Beneficiary and replacing the same with another
such policy.
21. That Trustee accepts this Trust when this Deed of Trust, duly executed and
acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any
party hereto of pending sale under any other Deed of'Frust or of any action or proceeding in
which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.
22. That should this Deed of Trust or any Note secured hereby provide any fee for
prepayment of any indebtedness secured hereby,Trustor agrees to pay said fee, if any, of said
indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust
even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any
agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured
hereby immediately due and payable.
23. That Trustor has made certain representations and disclosures in order to induce
Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of
Trust secures, and in the event that Trustor has made any material misrepresentation or failed to
"Exhibit C" to Loan Agreement
Page 9 of 15
41't1o.4-9Gagrce:l4 altacc:LxhibitC
RLS 76-523
713096
V
disclose any material fact, Beneficiary at its option and without notice, shall have the right to
declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note
or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written
declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon
presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by
Trustor under this paragraph, is authorized to accept as true and conclusive all facts and
statements therein, and to act thereon hereunder.
Any notice which any party hereto may desire or be required to give to the other party
shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his
address hereinabove set forth or to the Beneficiary at his office or at such other place as such
parties hereto may designate in writing.
THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of
default and of any notice of sale hereunder be mailed to him at his address herein before set forth.
TRUSTOR:
BARBARA JO WALLACE
By:
By:
APPROVED AS TO FORM:
Agency Counsel` A.,
"Exhibit C" to Loan Agreement
Page 10 of 15
4\t G.4-96agrec:Wallacc;CxhibitC
RL5 96.323
7l2M6
RIDER TO DEED OF TRUST
FIRST TIME Hb,%MB YER DOWN PAYNLENT ASSISTANCE PROGRAM
This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement
dated_ AUGUST 5TH , 19 96 ' (the "Loan Agreement"), pursuant to which Beneficiary has
agreed to loan Trustor the sum of Thirty-five Thousand Dollars ($35,000.00) (the "Loan
Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the
meanings as defined in the Loan Agreement.
In the event that the Agency Loan becomes due and payable prior to the thirtieth
anniversary of the date of this Agreement, Trustor shall pay to Beneficiary concurrent with such
sale, transfer or refinancing, an amount equal to the "Equity Share Amount." The Equity Share
Amount shall be determined by applying a percentage factor(the "Applicable Factor") to the
difference between the Sales Price and the Purchase Price (defined below) as follows:
1. Prior to fifth anniversary
of the Agency Deed of Trust: fifty percent (50%)
2. After fifth anniversary but)
prior to sixth anniversary: forty-eight percent (48%)
3. Afler sixth anniversary but
prior to seventh anniversary forty-six percent(46%)
4. After seventh anniversary but
prior to eighth anniversary: forty-four percent (44%)
5. After eighth anniversary but
prior to ninth anniversary: forty two percent (42%)
6. After ninth anniversary but
prior to tenth anniversary: forty percent (40%)
7. After tenth anniversary but
prior to eleventh anniversary: thirty-eight percent (38%)
8. After eleventh anniversary but
prior to twelfth anniversary: thirty-six percent (36%)
9. After twelfth anniversary but
prior to thirteenth anniversary: thirty-four percent (34%)
"Exhibit C" to Loan Agreement
Page 11 of 15
<a10 A-96agree:W&tlacc:L-xNbhC
RLS 96.523
7'26196
10 After thirteenth anniversary but
prior to fourteenth anniversary thirty-two percent (32%)
11 After fourteenth anniversary but
prior to fifteenth anniversary thirty percent (30%)
12 After fifteenth anniversary but
prior to sixteenth anniversary Menty-eight percent (28%)
13 After sixteenth anniversary but
prior to seventeenth anniversary M enty six percent (26%)
14 After seventeenth anniversary but
prior to eighteenth anniversary twenty-four percent (24%)
15 After eighteenth anniversary but
prior to nineteenth anniversary M enty-two percent (22%)
16 After nineteenth anniversary but
prior to twentieth anniversary h%enty percent (20%)
17 After twentieth anniversary but
prior to twenty-first anniversary eighteen percent (18%)
18 After twenty-first anniversary but
prior to twenty-second anniversary sixteen percent (16%)
19 After twenty-second anniversary but
prior to twenty-third anniversary fourteen percent (14%)
20 After twenty-third anniversary but
prior to twenty-fourth anniversary twelve percent (12%)
21 After twenty-fourth anniversary but
prior to twenty-fifth anniversary ten percent (10%)
22 After twenty-fifth anniversary but
prior to twenty-sixth anniversary eight percent (8%)
23 After twenty-sixth anniversary but
prior to twenty-seventh anniversary six percent (6%)
24 After twenty-seventh anniversary but
prior to twenty-eighth anniversary four percent (4%)
"Exhibit C" to Loan Agreement
Page 12 of 15
4\s\G 4 96agrcc Wallacc I xhibitC
III S 96 523
7/26/96
25. After twenty-eighth anniversary but
prior to twenty-ninth anniversary: two percent (2%)
26. After twenty-ninth anniversary but
prior to thirtieth anniversary: one percent (1%)
27. After thirtieth anniversary: zero percent (0%)
The "Purchase Price" is the price paid by the Participant to the SeIIer for Seller's interest in
the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or
any other closing or transaction costs.
The actual cost to Participant of all capital improvements to the Property made while
Participant owned the Property may be added to the Purchase Price if Participant complies with
the following:
No capital improvements which cost more than two thousand five hundred dollars
($2,500) shall be added to the Purchase Price unless within sixty (60) days following completion
of such capital improvements to the Property Participant shall send the following to the Agency:
(i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii)
evidence of the cost of the improvements. The costs incurred by the Participant for capital
improvements which cost less than two thousand five hundred dollars($2,500) shall be added to
the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a
form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan.
The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustor's
interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan
fees or any other closing or transaction costs.
The percentage factor so determined is the"Applicable Factor." If the Property is sold, an
amount equal to the Applicable Factor multiplied by the difference between (i) the original
Property purchase price and (ii) the amount received by Trustor as the Property sale price(as .
reduced by costs of sale paid by the Trustor)shall constitute the Equity Share Amount. If the
Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is
subordinate is refinanced for a loan amount which is in excess of the then current loan balance or
extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a
certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in
such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference
between(i) the original Property purchase price and (ii) the appraised value of the
"Exhibit C" to Loan Agreement
Page 13 of 15
4W4.4.96arree:W allamExhibitC
R LS 96-523
7126/94
Property as of the time of such transfer or refinancing
Dated AUGUST 13, 1996 TRUSTOR
L/L e4l",-t/11 9 1
BARBARA j6 WALLACE
APPROVED AS TO FORM
Agency Attorney 2 6
�L ff
"Exhibit C" to Loan Agreement
Page 14 of 15
4\s%G 4 96agrcc Wallace I xhibd(.
RI S 96 523
7/26/96
r 1 '
DER TO DEED OF TRUST
SUPERIORI Y OF FIRST LENDER DOCUMENTS
(if required by the First Lender)
This Deed of Trus: is subject to the terms and conditions of that certain Loan Agreement
dated AUGUST 5 _ , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has
agreed to loan Trustor the sum of Thirty-five Thousand dollars ($35,000.00) (the "Loan
Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the
meanings as defined in the Loan Agreement.
Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the
rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender
as security for the First Lender Note, or any subsegsent First Lender deeds of trust hereafter
recorded against the property described herein.
Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions
of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of
one of the following events:
1) Title is acquired by the First Lender or another party upon foreclosure of a deed of
trust by the First Lender.
2) Title is acquired by the First Lender or another party by a deed in lieu of '
foreclosure of the First Lender deed of trust.
Dated: AUGUST 13, 1996 TRUSTOR:
APPROVED AS TO FORM: emu► Jo -.LLACE
Agency Attorney r'ly 0
ko
"Exhibit C" to Loan Agreement
Page 15 of 15
4'sVj:4-96agrcc:Wal lacc.lixhibitC
RLS 96.523
7l76M6
3
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT
STATE OF CALIFORNIA
SS.
COUNTY Of CPJWGE
Oil AUGUST 13, 1996 before fne, the undersigned, personally appeared
BA.RBARA JO WALLACE
personally known to file (or proved to fire on (he basis of satisfactory evidence) to be the person(s)
whose name(s) Is/are subscribed 10 the within instrument and acknowledged to rne that irelshelthey
executed the same In llislherllheir authorized capacily(ies), and (hat by his/her/their sigrrature(s) on
the Instrument the person(s) or [lie er oily upon r behalf of which r [lie person (s) acted, executed tile
instrument.
WITNESS my hand and official seal. (nits area for official notarial seal)
LlNDAJ.CA'APBELL z
.f. K COMM. 9 f 045344 cu
Siynatur CI f� C0 =C� � ;�; NOTA RYPUBLIC-CALIFORNIA
ORANGE CODU Y
LIl`7DA J. CAMPBdL - MY COMM.Eroirof DEC.2o.1908
rrrfrrrffrrrrlrrrrrrtrrrrfrrrrrrflfrrrr OPTIONL frlrrrrlllllrrifrrrlfrrl rrfrfrfrflrir
Though [lie data below are not required by law, they may prove valuable to persons relying on the
document and could prevent the fraudulent reattachment of (his roan.
Capacity Cinimed By Signer . Descoptiorr or Attached Document
Windividual
0 Corporate officer
A-_-ro 0r 1;r2a.:57
•IItles(s) 'Irlro of lype of Uocumerit
U Pariner(s) 0 Limited
D.General
0 Attorney-In-Fact
j 17 Trustee(s) Humber of Pages
U GuardianlConservator
t7 Other:
Uile or Document
Signer Is Representing:
Hama of Persons)or Enttly(les)
5lyner(s)Other Ilion Harped Above
EXIIIBIT A
TO
AGENCY DEED OF TRUST
LEGAL DES MPTION
PARCEL 1: '
i
An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to
all of the Common Area defined in Declaration referred to below and described in the .
Condominium Plan ("Plan") for Lot I of Tract No. 14828, which Plan was recorded on August ;
25, 1994 as Instrument No. 94-0525335 of Official Records of orange County, over Lot 1 of
=ract No. 14028, in the City of Eiuntington Beach, County of orange, state of California, JI
its per map filed in Book 706, Pages 27 to 29 of miscellaneous Maps, in the office of the
county Recorder of said County.
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon
substances, as reserved in -deed recorded August 16, 1921 in Book 401, Page 356 of Deeds,
and in various other deeds of record.
PARCEL 2:
Unit No. 22 consisting of certain airspace and surface elements, as shown and described in i
the Condominium Plan referred to in Parcel 1 above.
f,arcel 3:
pion-exclusive easements for access, ingress, egress, use, enjoyment, drainage,
Encroachment, support, maintenance, ropairs and for other purposes, all as described in
that certain Declaration of covenants, Conditions and Restrictions and Reservation of
Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336
of official Records.
Farcel 4:
Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio
Furpones, over the areas:defined, depicted and assigned on the Plait.
"Exhibit A" to Agency Deed of Trust
Page I of I
4',zkO:Agrcc:ASargoiis:txhCDce&47126M6
RIS 96-127
EXHIBIT D
DECLARATION OF CONDITIONS, COVENANTS
AND RESTRICTIONS FOR PROPERTY
RECORDING REQUESTED BY )
AND WHEN RECORDED MAIL TO )
(Space above for Recorder's use)
THIS DECLARATION OF CONDITIONS COVENANTS AND RESTRICTIONS FOR
PROPERTY (the "Declaration") is made by and between BARBARA JO WALLACE (the
"Covenantor") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON
BEACH a public body corporate and politic (the "Agency" or "Covenantee") as of the date set
forth below
RECITALS
A Covenantor and the Agency have entered into a certain Loan Agreement dated
AUGUST 5 , 19 96 , (the "Agreement " a copy of which is on file with the Agency
at its offices and is a public record) pursuant to which the Covenantor has agreed to subject
certain real property (referred to in the Agreement and referred to herein as the "Property")
described in the "Legal Description of the Property" (which is attached hereto as Exhibit "A" and
incorporated herein by this reference) to certain covenants, conditions and restrictions
B The Community Redevelopment Law(California Health and Safety Code
§ 33000 et seq ) provides that a redevelopment agency shall establish covenants running with the
land in furtherance of redevelopment plans
NOW, THEREFORE, the parties hereto agree and covenant as follows
"Exhibit D" to Loan Agreement
Pagel of 9
4\s\(G 4 96Agrec Wallace Exhibit!)
RLS 96 523 7/29/96
I Affordability Covenants Covenantor agrees for itself, and its successors and
assigns and every successor to Covenantor's interest in the Property, or any part thereof that for
thirty (30) years from tiie date of recording of the Deed of Trust in favor of the Agency regarding
the Property(tile "Expiration Date")
(a) The Property shall only be owned and occupied by Convenantor or by
other persons or families of"Moderate Income " "Moderate Income" shall mean persons or
families earning One Hundred Twenty Percent (120%) or less of Orange County median income
adjusted for appropriate family size
(b) The Property shall be kept available at Affordable Housing Cost (as defined
below) to tiie Covenantor or other persons or families of moderate income Affordable Housing
Cost shall mean, as to each person or family of low or moderate income that purchase price
which would result in monthly housing payments which do not exceed an amount under any
currently prevailing conventional home mortgage lending rates applied by any reputable
institutional home mortgage lender, or the lending rates of any government-subsidized or special
mortgage program for which such person or family qualifies and has obtained a first trust deed
loan, which do not exceed thirty-five percent (35%) of One Hundred Ten Percent (110%) of the
Orange County monthly median income for those persons and families of moderate income (as
determined by the United States Department of Housing and Urban Development) earning
between Eighty Percent (80%) and One Hundred Ten Percent (110%) of the Orange County
monthly median income and Thirty-Five Percent (35%) of the monthly median income of any
person or family of moderate income which earns more than One Hundred Ten Percent (110%)
and not more than One Hundred Twenty Percent (120%) of the Orange County median income
(c) The covenant contained in this Section l shall run with the land and shall
automatically terminate and be of no further force or effect upon the Expiration Date
2 Transfer of Property No transfer of the Property shall occur until the Agency
determines (a) that the proposed purchaser intends to occupy the Property as the proposed
purchaser's principal residence, (b) that the proposed purchaser is a person or family of moderate
income and (c) that the proposed transfer occurs at an Affordable Housing Cost The Agency
shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted
to the Agency such information and completed such forms as the Agency shall request to certify
the proposed purchaser's intent with respect to its residency of the Property and its gross income
and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the
proposed purchase price Prior to conveyance of the Property, each approved purchaser shall
submit to the Agency an executed disclosure statement which certifies that the purchaser is aware
that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate
income person or family, that the maximum permitted sales price may be less than fair market
value and that the unit must be owner-occupied at all times and cannot be rented or leased
Covenantor shall cooperate with the Agency in providing such forms to proposed purchasers and
in assisting proposed purchasers to prepare such forms and to provide any required information to
the Agency in connection with the Covenantor's original sale of the Affordable Unit provided that
"Exhibit D" to Loan Agreement
Page 2 of 9
4\s\G 4 96Agree Wallace E.xhibdU
R S 96 523 7/29/96
the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith
other than employee time dedicated to providing such assistance
THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF
COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE
HOUSING COST CAN BE MADE ONLY AT THE TIME OF THE PROPOSED TRANSFER
TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED
TO AND THE ECONOMIC CIRCUMSTANCES OF THE PROPOSED PURCHASER AND
OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE
TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR
MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN
THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT
ENCUMBERED BY THIS RESTRICTION COVENANTOR AND EACH SUCCESSOR,
HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL
TIMES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE
AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE
PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST
�V)
Covenantor Initials
The covenant contained in this Section 2 shall run with the land and shall
automatically terminate and be of no further force or effect upon the Expiration Date
3 Non-Discrimination Covenants Covenantor covenants by and for itself its
successors and assigns, and all persons claiming under or through them that there shall be no
discrimination against or segregation of any person or group of persons on account of race, color,
religion, sex marital status, national origin or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person
claiming under or through it, establish or permit any such practice or practices of discrimination
or segregation with reference to the selection, location, number, use or occupancy of tenants,
lessees, subtenants, sublessees, or vendees in the Property
Covenantor and its successors and assigns, shall refrain from restricting the rental
or lease (if permitted by Covenantor) or sale of the property on the basis of race, color, religion,
sex, marital status, national origin or ancestry of any person All such deeds, leases or contracts
shall contain or be subject to substantially the following nondiscrimination or non segregation
clauses
(a) In deeds "The grantee herein covenants by and for himself or herself, his
or her heirs, executors, administrators and assigns, and all persons claiming under or through
them, that there shall be no discrimination against or segregation of, any person or group of
persons on account of race, color, religion, sex, marital status, national origin or ancestry in the
sale, lease sublease, transfer, use, occupancy, tenure or enjoyment of the land herein conveyed,
"Exhibit D" to Loan Agreement
Page 3 of 9
4\S\G 4 96Agrcc Wallacc Cxlubal)
RLS 96 523 7/29/96
nor shall the grantee himself or herself or any person claiming under or through him or her,
establish or permit any such practice or practices or discrimination or segregation with reference
to the selection, location, number,use or occupancy of tenants, lessees, subtenants, sublessee or
vendees in the land herein conveyed. The foregoing coavenants shall run with the land."
(b) In leases: "The lessee herein covenants by and for himself or herself,
his or her heirs, executors, administrators and assig:ts, and all persons claiming under or through
him or her, and this tease is made and accepted up-an and subject to the following conditions-
"There shall be no discrimination against or segregation of any person or
group of persons on account of race, color, religion, sex, marital status, ancestry or national -
origin in the leasing, subleasing, transferring,use, occupancy, tenure or enjoyment ofthe premises
'herein leased nor shall the lessee himself or herself, or any person claiming under or through him
or her, establish or permit any such practice or practices ofdiscrimina:ion o:segregation with
reference to tiie selection, location, number,use or occupancy of tenants, lessees, sublessees,
subtenants or vendees in the premises herein leased."
(c) In contracts: "There shall be no discrimination against or segregation of,
any person, or group of persons on account of race,color, religion, sex, marital status, ancestry or
national origin, in the sale, lease, sublease, transfer, use, occupancy, teriure or enjoyment of the
premises, nor shall the transferee himself or herself or any person claiming under or through hint
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number,use or occupancy of tenants, lessees, subtenants,
sublessee or vendees of the premises,"
Nothing in this Section 3 shall be construed to authorize the rental or lease
of the Property if such rental or lease is not otherwise permitted. The converiants in this
paragraph 3 shall run with the land in perpetuity.
4. Covenants Dg L4 A� 'en. No violation or breach of the covenants,
conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or
render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security
interest.
S. ve ants For Den fit_ f City and A&e y- All covenants without regard to
technical classification or designation shall be binding for the benefit of the Covenantee and the
City of Huntington Beach(the'City") and such covenants shall rtur.in favor of the Covenantee
and the City for the entire period during which such covenants shall be in force and effect, without
regard to whether the Covenantee or the City is or remains an owner of any land or interest
therein to which such covenants relate. The Covenantee and the City, in the event of any breach
of any such covenants, shall have the right to exercise all the rights and remedies and to maintain
any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such
"Exhibit D" to Loan Agreement
--163140 Page 4 of 9
breach to which it or any other beneficiaries of these covenants may be entitled during the term
specified for such covenants, except the covenants against discrimination which may be enforced
at law or in equity at any time in perpetuity
IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument
to be executed
uted on their behalf by their respective officers hereunto duly authorized this 13 day
AUGUST , 19
COVENANTOR
1
7.&Jeita IV
BARBARA JO WALLACE
APPROVED AS TO FORM
Agency Counse1-1-2"y
"Exhibit D" to Loan Agreement
Page 5 of 9
4\s\G 4 96Agrce Wallace Cxhibal)
RLS 96 523 7/29/96
STATE OF CALIFORNIA )
ss
COUNTY OF C7k=GE ?
On AUCX]ST 13, 1996 before me, LnMA J. CAMPBELL
(name,title;e.g.,"Jane Doe,Notary Public"),
personally appeared BARBARA JO WALLACE
(name(s)of signer(s)),
personally known to be--OR--
XX proved to me on the basis of satisfactory evidence
to be the person(s)whose namc(s) is/arc subscribed to the within instrument and acknowledged to me that
helshelthey executed the sam-.in his/her/their authorized capacity(ics),and that by his/her/their signatures)
on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the
instrument.
#I'tn ss m v hand and official seal.
!z f''w' LINDU CAMPBELL
to C01110.#1045344 cu
= y e ��. NOTARY PUBLIC-CALWOPNIA
ORANGE COUNTY _. (Signal c of Notary),
W Comm.Expires DEC.20,Im LINDA J. CAMPBELL
CAPACITY CLAIMED BY SIGNER:
Xy, Individual
Corporate Oflicer(s):
Title(s) _
Partner(s): Limited General
Attorney-in-Fact
Trustec(s)
Guardian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Person(s)or Entity(ies)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACHtiIENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE Title or Type of Docurner_t DECLARATION OF CONDITIONS, COVE RAWS
ML!ST BE ATTACHED AND RE81M TICNS FOR PROPEM
TO THE DOCUMENT_ Number of Pages
DES BED Date of Document AUGUST 5, 1996
QR
AT RIGHT: Signers)Other Than Narned Above:
"Exhibit D" to Loan Agreement
Page 6 of 9
41alG:4.96 ASree:W allace:ExhibilD
RLS 96-323 7/29/96
STATE OF CALIFORNIA )
ss
COUNTY OF )
On , before me,
(name title e g "Jane Doe,Notary Public")
personally appeared
(name(s) of signer(s))
personally known to be --OR--
proved to me on the basis of satisfactory evidence
to be the person(s)-,%hose 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(ics) and that by his/her/their signature(s)
on the instrument the person(s),or the entity upon behalf of which the person(s) acted executed the
instrument
Witness my hand and official seal
(Signature of Notary)
CAPACITY CLAIMED BY SIGNER
Individual
Corporate Officer(s)
Title(s)
Partner(s) Limited General
Attorney-in-Fact
Trustee(s)
Guardian/Conservator
Other
SIGNER IS REPRESENTING
Name of Person(s)or Entity(ies)
ATTENTION NOTARY Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT
THIS CERTIFICATE Title or Type of Document
MUST BE ATTACHED
TO THE DOCUMENT Number of Pages
DESCRIBED Date of Document
AT RIGHT Signer(s) Other Than Named Above
"Exhibit D" to Loan Agreement
Page 7 of 9
4\s\G 4 96Agree Wallace CxhibdD
RLS 96 523 7/29196
STATE OF CALIFORNIA )
ss
COUNTY OF )
Oil before me,
(name,title,t.g.,"Iane Doe,Notary Public"),
personally appeared
(name(s)of signer(s)),
personally known to be--OR--
proved to rze on the basis of satisfactory evil.-nee
to be the person(s)whose riame(s)is/are subscribed to the within instrument and acknowlcdged to raze that
he/slic/they executed the Sarre in his/licr/tlicir authorized capacity(ics),and that by liis/hedtheir signature(s)
on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the
instrument.
Witness my hand and official seal.
(Signature of Notary)
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate Off cer(s):
Title(s)
• Partner(s): Limited General
Attorney-in-Fact
Trustec(s) .
Guardian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Pcrson(s)or Entity(ies)
ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE Title or Type of Document
MUST BE&TTACHED
'[O�'Ril; DOCUN'IENT Number of Pages
pESCRIBED Date of Document
LT—RIGHT- Signcr(s) Other Than Nam.d Above:
"Exhibit D" to Loan Agreement
Page 8 of 9
41s1G:4-96Agrce:W allacc:ExhibitD
R S 96-523 W29196
f
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
(To Be Inserted)
LEGAL DESCRIPTION
} EXHIBIT "A"
PARCEL 1:
An undivided one twenty second (1/22) fee simple interest as a tenant in common in and
all of the Common Area defined in Declaration: referred to below and described in
Condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on ;�_......
25, 1994 as Instrument No. 94-0525335 of official Records of Orange County, over Lot 1+
Tract No. 14828, .in the-City of Huntington Beach, county of orange, state of [_alifnrnia,
as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of
County Recorder of said County.
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other
substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of
and in various other deeds of record.
PARCEL 2:
Unit L,o. 22 consisting of certain airspace and surface elements, as shown and described it
the Condominium Plan referred to in Parcel 1 above.
Parcel 3: -
non-exclusive easements for access, ingress, egress, use, enjoyment, r�rain�aP
encroachment, support, maintenance, repairs and for other purposes, all as described i-
that certain Declaration of covenants, Conditions and Restrictions and Reservation
Easements for Pacific Park villas, recorded August 25, 1994 as instrument No.
of official Records.
Parcel 4:
Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or Pn!_'
purposes, over the areasidefined, depicted and assigned on the Plan.
"Exhibit D" toloan Agreement
Page 9 of 9
413I0:4-96Agrcc:W allace:ExhibitD
' RLS 96-513 7R9196
List of Down Payment Assistance Borrowers
at Pacific Park Villas
RSA ROUTING SHEET
INITIATING DEPARTMENT: Economic Development
SUBJECT: Transferability of Pacific Park Villas Down Payment
Assistance Loans
COUNCIL MEETING DATE: Ma 17, 1999
RCA ATTACHMENTS STATUS
` Ordinance (w/exhibits & legislative draft if applicable) Not Applicable
Resolution wlexhibits & le islative draft if applicable) Not Applicable
Tract Map, Location Map and/or other Exhibits Not Applicable
Contract/Agreement (wlexhibits if applicable)
(Signed in full by the City Attorney) Not Applicable
Subleases, Third Party Agreements, etc.
(Approved as to form PX City Attorne Not Applicable
Certificates of Insurance (Approved by the City Attome Not Applicable
Financial Impact Statement Unbud et, over$5,000 Not Applicable
Bonds If applicable) Not Applicable
Staff Report If applicable) Not Applicable
Commission, Board or Committee Report if applicable) Not Applicable
Find in s/Conditions for Approval and/or Denial Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORW4RDED
Administrative Staff
Assistant City Administrator Initial
City Administrator(Initial)
City Clerk
EXPLANATION FOR RETURN OF ITEM:
Only)(Below Space For City Clerk's Use
RCA Author: Duran at extension1529
949-367-7961 FIDELITY NATIONAL 504 P01 OCT 05 199 13.53
Fidelity National Title
Order Number: DERRA
L,escription:
St, gg , rsffau Tie Dbcr—W Intornow� &M c aks_ , ,5 gmj
G1 Drangr LWy Drocumon s 95.173170 18 I Pria&9
G1 omae DiaUy Documents 98-2573,74 8 l Arinting
�J
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J.
ksCfeo w Co , &r k
ha S took o6( 7h)k , A h 1:5
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Q Ye CO)C (.-j C4(�.
Cg c5�•'d. ��ie. 1.J ocJl ct c�cc �P�
949--367-7861 FIDELITY NATIONAL 504 P02 OCT 05 198 13:53
RECORtlING REQUESTED BY:
Fide'ity National Title Company Recorded In the County of Orange.California
tval9w No. 30025e-DW GatY L.Gra MIW.ClerkfRecorder
Me When
eco.osa13e93
WR�aa IMUN911111MR118 No Fee
IR Rewfded Mall Docwnarrt To:
Redevelopment
untmgt Beach Agency of tl,e City of 19980257324 2:18pm 04/29198
2000 Main Street VS 14016004 14 23
Huntington Beach, CA 92848 S13 8 6.00 21.00 0.00 0.00 0.00 0.00
i
APN: 933-67-268
Im SUBORDINATION AGREEMENT
0• SIGNED IN CO'J"ERPART
M NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY INTEREST IN THE PROPERTY
IV BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER
aj SECURITY INSTRUMENT.
THIS AGREEMENT, rnade February l2, 1998,by Victor Wvere i Debra L.Ikrrgoes
owner of the land heralnefter descrIbed and hweln attar reforrsd toes'Owner,' and The Redsvik"meet Agency of
the City of Huntington Beach
present owner and holder of the dead of trust end note f.rst herelneftw described and heroinaftfr referred to as
w8ansticiary';
WITNESSM
THAT WHEREAS,Victor Rivera and Gabs L.Burgm, did execute a deed of trust. dated Apra 11,1995,to The City
of Hrmtinpmn Bsech, of trustee. covering
SEE EXHIBIT ONE ATTACHED HERETO AND MADE PART HEREOF
to secure a note In the sum of$35.000.00.dated Apr911. 1995,In fsvor of Tho Rodavokgwn nt Agency of the City
of Hunftgtvn Beach, which deed of trust was recorded as instrument no.98-0173370.on ApM 26. 1996. Official
Records of said county; and
WHEREAS, Owner has executed, or Is about to execute,a deed of mist and note In the sum of 6163.000.00 dated
, In favor of Bank of America , hereinafter referred to as "Leader,` payable with interest and upon the
terms and conditions described thersin, which deed of trust In to be recorded concurrently herewith; and
WHEREAS, It is a condition precedent to obtaining said ban that said dead of trust Isst above mentioned sholt
uncondltbnsly be and remain at*9 times a lien or charge upon tM land heninbefore described. prior*rid superior to
the Donor Charge of the deed of trust first aloe merrtbnod; and
WHEREAS,lender Is willing to make aid ban provided the deed of trust securino the some Is a lien or charge upon
the above described property prior and superior to the lien or charge of the deed of trust first abovo mentioned and
provided that Beneficiary vAl specifically and tmcondMonaily subordinate the Mn or charge of the dead of tram first
above mentioned to the lien or charge of the deed of trust in fow of Lander;end
CLTA WOORMINAMN*A* INMALM
FD-4 A ek«. w941 EXISTING MO OP TRUST TO WW MID OF TRUSTi Papa No. 7 of 3
949-367-7861 FIDELITY NATIONAL 504 PM OCT 05 '98 13:53
AFN: 933-87-268
WHEREAS, It Is to the mutual benefit of the parties hereto that Lander make such Loan to Owner; and Henefidary is
willing that the deed of trust securing the gem shall,when Hoarded,corsstttuts a pen or charge upon said land which
is unconditionally prior and superior to the hen tw charge of the dead of trust first above mentioned.
NOW, THEREFORE, in Consideration of the mutuet benelts accruing to the parties hereto and other valuatde
consideration,the recelpt and suffdency of which consideration Is haroby acknowWged,and In order too lriduce Lender
to make the barn above referred to, it Is hereby declared, understood and Wood as follows:
ill That said deed of trust securing said note In favor of Under, and any renewals or extensions thereof,
shall unconditionally be and remain at all tlrtss a lien or charge on the property ttwoin described,prior
and superior to the lien or charge of the deed of trust above rnaridoned.
12) That Lander would not main Its ban above described without this subordination agreement.
(3) That this agreement shill be fe whole and only agreement with regard to the subordination of the lien
or charge of the deed of trust first above mecttloned to the pan or charge of tetra deed of trust In favor
of lender above referred to and shalt supersede and cancel,but only Insofar as would affect the priority
between the floods of trust bw6nbefore speciflcally described, any prior sgrearnerrt as to such
oLkwdinatl m Includuv,but not limed, those provisions, If any, contained In the dead of trust first
above mentioned,which provide for the subordination of the Been or charge thereof to another dead or
deeds of trust cr to another mortgage or mortgages.
Beneficiary declares, agrees and acknowledges that
(a) He consorts to and approves(Q all provisions of the note and dead of trust In favor of Lender ebave
referred to, and (4) all agreements, including but (ot &mited to any loan or escrow agreements,
between Owner end Lender for the disbursement of the prooseds of Lenders loan;
(b) Lander In making disbursements pursuant to any such agrwmant Is tinder no obligation or duty to.nor
has Dander repnmw tad that it wool, see to the application of such proceeds by the person or persons
to whom Lender disbwses such proceeds and any application or use of such proceeds for purposes
other than those provided for In such agreement or agraemmts 0WI Hat defeat the subordination
herein merle in whole or In part:
(C) He Intentlonsly and uncondidon0y wolves, reff<►tfuishes and subordinates the lien a charge ct the
deed of trust first above mentioned In favor of the Loan or charge upon said land of the deed of taut
In favor of Lander above referred to end understands that In rellar"upon,and In consldwotlon of,this
waiver,repnqdshnwt and subordination,specific bans and advances are being and will be made end,
as part and pmel thereof. apecft monetary and ather obiigadons are being and will be entered into
which would not be made or entered into but for said ral{anoe upon thte welver,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 InstrunNnt born subordinated to the pen or charge of the deed of trust
in favor of Under above referred to.
CLTA S(J MINATtON"A' IMMALa:
FD46A(R4v.9le41 laX1STMG DFID OF TMT TO WTW 9XEO OF TRUSTI Paps No.2 or a
949-367-7861 FIDELITY NATIONAL 504 PO4 OCT 05 198 13:54
APN: 933-87.286
NOTICE. THIS SUBORDINATION AGREEI4IEWCONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED
ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER
PURPOSES THAN IMPROVEMENT OF TH€LAND.
IT IS RE-COMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT,THE PARTIES
CONSULT WITH THEIR ATTORNEYS WITH RESPECT THtMEYO.
Th* Redevelopment Agency of cf won Victor Nvere
Beach [�,q .F'E�'c.�i�/r��
0 Debra L. Burgess
Beneficiary Owner
TALL SHMTURES TRUST BE ACKNOVAJMQED)
STATE OF CALINRNIA
COUNTY OF rtt j! _ _ _
ON _i 7.a before me, a A 1�e/ ,w? JJC�&&:t ., paraonolty append
141 Cony ru r C e�typ c.�tA1v4?'
personally known to me } to be the personh) whose nary eft
(W"subscrlbed to the within Instrument acknowledged to me thati+w4dg7they executed the same int4sGa*air-
authorized capaclsy�ft%and tidal by rft on tare instrument the personlal,or the entity upon bo wf
of which the persen'be,} acted, executed the kvwumont
Witness my hand and official Baal. WPM
Nary R+b10—CVoere
Signatur ""' ����
STATE OF CALIFORNIA
COUNTY OF
ON before nu, personally appeared
personalty known to me for proved to me on the bash of saLWactory evidence) to be the person(s) who**names)
Islars subscribed to the within Instrument and acknowledged to me that he/efrslth*y executed the some In hlslherhhair
authorized cepeity(WA.acid that by hl:lher/their aignaturNs)on the Instrwneat the personls),or the entity upon behalf
of which the person(s) acted, executed the Instrument.
Witness my hand and ofWel a".
Signature
CLTA tuaoRMHAVON-A-
fO-45A Mvv.91941 tEXWTWG DEED OP TlCAT TO NEW MD Of W rl Page We.3 of
949-367-7861 FIDEL-ITY NAT[ONnL 5(M POS OCT 05 '98 13:54
GOVERNMENT CODE 2738lw7
I CERTIFY UNAER TIME PENALTY OF PER URY THAT THE NOTARY ACXNCWLEDGEMENT
ON THt DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED RLADS AS FOLLOWS:
NAME OF NOTARY: Xczulto— 4,/l zd��7
DATE COMMISSION EXPIRES: 03 �99�
COUNTY IN WHICH BOND IS FILED: 0/a4 t4A
COMMISSION #s A)&&?&-3
CATS_ �GF
OPy
sb m
PLACE Or EXXVnION
949-367-7661 FIDELITY NATIONAL 504 P06 OCT 05 198 13:55
• 71a-349-,' ,,,FIDELITY NRT104:1- e pm A-R 2a -5e ts:75
R3CORDprit:RSQLPIUrM BYr
Fldalky Ned"Title Owipany
ftmm No. "OU4.0wv
nee are.r x..0"neaa
Wlwt ltoesrdvd Map DorJmaat Tot
Redevalapowd Agwxy of the Cky of
Huntlnptan death
2000 Main Street
Hurttln pton Beach,CA$2648
APN: 033-37.266
SUBORMATiON Afl1IEEINIM
• NOTICE: T1413 SLWOPONATIDN AGF MENT RESULT'S N YOUR SECURITY BEST IN THE PROFVM
• BECOMING BUSJMTO AND OF LOWER PRIDRRY THAN THE LIEN OF SOME OTHER OR LATER
SECURITY INSTRUMENT,
T14S AGREEMENT,made Febrwryr 12, 1F08.by Vktw Itivare i Datia L Borgese -
owner at trio land her+vinaftw de or'bod and tweirmher mfsrred was•Owner.' and The RadavMoparrtt Apsr►cY of
the Chy of Htmdn4taar Beech
present owner and holder W the dead of~ and recta first hersinafter descaed and heraineftet referred to of
"9VWfklary";
trlttTMriSC l
THAT WtfERFAS.View ethers a W Pebre L Nwp w&did execute a deed of trust,doter!Ap411, 1"lf,to The Gel►
of il'ara elm Beach,era trustee,covering
tWE EXHIBIT ONE ATTACHED HERETO AND MADE A FART HEREOF
to occurs a rate In the ran of 439,M.00,dated App 11, 1*84.In fever of Tka Redwelopment Away of 1he City
of Hunditgbn Meeh,vehicle deed of trust was recorded m Ineu meat no.06-0173370,or Aps", 1995, OfWal
Records of said county;and
WFFRF-AS,Owner has executed, or la atom to sxemi.a dead of trust and note in the sum of 4183,000.00 dated
, In favor of Manic of Amarba, hwvbm tw retamad to as`Lae+der.' pwfW9 Wkh Interest and upon the
terms and conditions descrbed 1tweli.vahlch deed of trust is to be recorded oonourrandy herewith;and
WHEMAS, It Is a oondtbn preeodent to vbtakring ark ben that said dead of trust last above tnertloned shell
uncorKPOormly be anti remern at ail lbim a pen ar charge upon the land heratnbOm described,prior and superior to
Ow Fen or 0mge of the deed of trust first above nrantbrmd;and
WHEPMAO,lender k vAWV too make acid ban provided the dead of test aeeuring the emw Is a San or dm"upon
the above desalbed propertlr pdbt and supwW 10 to Ran or ehwps of the deed of trust first above nmv* W and
provided that Beni Wy WE spwMeW and mn=r dldarA4V*Amdkm tr the Ran or charge of the deed of trwt ltrat
above vwWaned to t W>ian m ehsr0e of the deed of trust in favor of Leader;and
aTA lxsorit"TION oe PUMA:�
jt-"A Mw.W54I MMTNO"Im 0p TmmT TO NEW Mo OF TRtiOM Pme No.t of a
949-367-7861 F I DEL.I TY NATIONAL. Sol P07 OCT 05 198 13:55
714-3•lB-13A...,FIDELITY NATIMPL PM APR 20 -9e 16:23
APN:83"7.36e
WHEREAS,it Is to tse mutual bwwfh of On partite hereto*st Landar make a m h ban to owrw -.sk!Benefldwy Is
w0ng that the deed of trust staxIng the saws shall,when repo rded,oonsrtltub a ftn or charge upon said Mud which
is uncanddonally prlw and rowbr 1ss the Men or charge of the deed of trust first sbave nwvdonad.
NOW, THEREFOiII^, In consideration of the mutual bwof m accruing to the paeiM hsrsto end ctfhar valuable
corrids.adon,dw refit end suftfoWw of vAA h m naldarsdore is h+nby sckr4wfedgwd,end In order to ir'h km Lender
to make the ban above referred to, It is hereby doet red.understood and greed ss follows:
4 t) That said deed of trust securing said noes Irh favor of Labeler,and any renawalc or sxianaione thwrsaf.
sheO unoondtlonally be and remsin of dl tf nm o ion or Charge on the property therein ds ri ibsd.prior
OW supww to the Ian of Charge of tf»deed of trust above w4ntkw od.
(Z That Lendsi mould not males Its ban abova do abed without this w6wdirhstion agnernent.
(3) That thle ei reamant shalt bo tfhs wfhote wul only eprssmerK With regard to ow wba+dnstloeh of the Mn
cr etw"of the deed of trust first ohm tie frhentlaewd to the beet er O wW of the dead of trust in favor
of lender above retsrred to end"supersede and ceneaL but a*Irmfer as would afhat taw priority
between *4 deeds of trust hersihbelore speoMcely dasCr*K soy prior acrowns t in Ira shah
s%**r*wrJ*n kwUllroM but not limited.tfross povlefona. If MY.Contained In the deed of trust first
above mwrrtianed,which prvvWs far Ow rubard4hstlon of Ow Ben or charge d wsof to another deed or
dssds of trust or to anatlNr mmtpops or nmWepes.
> afidw dedores, agrsss end solowowhWk we that
(a) He consents tie and approves 10 all provisions of the note end dead of trust In favor crf Lender above
teferred to. and (Q an sweements. 1 wkxfing but not irrriead to any ban a emaw aprwamnts.
between Ovmor and Lander%r the dabunennnt of the prvc malls of Lender's ban;
ibl Lender h makMp dsbMwrw is pwauant to any such saresment Is whdwr no obi v%on or duty to,rwr
has Lander rwe@w*W that It will,sew to the application of such pr mm&by the person Of persona
to whore Lender 4lsbura w such procesds end any spollostlon or use of such Proceeds for purposes
other than Moss provided tier In vtmO sprownent or agrownento shall not gW90 the subordination
herein made In whole or In part;
let He lntsndan0yy end unconditlonally wakes. teNrAwlatm and subordinates*4 Ben or charge of the
deed of treat first above o ntioaed in favor of the Ever ar charp►upon said Mud of the dwd of Vet
In favor of Lander above raf "ed to end understands"In rsMwnw upon,and in oee»ldaration of,tNs
w*,n r,nbr,quialhmsnt and euborftatimu%w dk loans send advances are bMV whd will be made end,
as part and parcel l waM,spaoifto morhotsey sod othee obVesdons we being and will be sntared Into
~would not be mode cr entered kft but for said reliance upon"wdver, reiinquia went end
subordkwojen; and
(di A^sndotnmeM thes bee»9IftW upon tM rate sacursd by the dead of trust fast shave mvWw4d that
said 4sed of trust be*by thin irme nhsc t been s+bordnats4 to the lion or charge of the deed of trust
In favor of Lender Wove lef rred to.
CLTA stieDPDMA7 M'A' ORnALe: ......�
I10-48A OUV.erwt) MUTsia Ma OF TNXT TO NNW MC OF TP6" rap.No.2 of 3
949-367-7861 FIDELITY NATIONAL. 504 P08 OCT 05 198 13:56
• ?14- FI0MlTY NnTIO44. v429 pe4 my 28 '9B 16:28
APN:933-57-268
NEMCtE: THM SVDOMNATION AGREI MENT CONTAING A PROVISION WWCH ALLOWS THE PERSON OQiMATED
ON YOM REAL PROMPTY SECUNW r0 09TAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOit OTHER
PURPOSES THAN sA+ePROVEIAW OF TNf LAND.
IT R PECOUMPOW THAT,PEAR TO"E RCUTION Or T=SUSOXOiNATION AgftlVMNT,TN2 FARTS
comma wim Tim ATTmodit avem imm o.
7•
1
The Aadewiopm mt A4 ..Df gyp!
Basch ... .
Beralioiary Owner
CALL MGMATUIW W=T 2a ACKNOWLIMM)
STATE 0I`CALIF��NrA
COUNTY OF
oN_R�2 1 q 24 tilt bet wo ma, -fit: A._Nsl�.a.,r, J�Q> _A&ae.;,person say eposane
600vorsre 4tf"6XtaJAy
gwacampy known to nw }to be the pusor& whoa e{M.
vaubsodbd"�to"7t�he witIA Jrtstr�srrer+t saWrowledped to rm thslira�s�7lt ley executed the sane In�r-
avtrio+Sasd t%VAChy4a},end grit-1 ts)t!ntlra hVftUsrmd*s p0mr".or 10 er4ity won b"l
of whkh V"persoraw s executed 1tN k*trtaet V*-
wrums my hand and o"Wal seal. LAW A PIRXX
c..rrwona lofts
10 +woo kftft�c.
Sipnativ '""` w CFO
STATE OF CALIFORNIA
COUNTY OF ran.<<r 9
ON E` t►atonnte.,d,�rJ2��� �- -irk/Cwr.oneltt►saoered
w proved to me on the bash of aadefecaory widar+cs)to be the psrsonls) whose narne{s)
b tlhs wtthln art and•cbmKvbdvW ea ma that IrarlWd eY sxeautsd taw earns In kkA whbetr
r0mrlsed oapaoky14s1.end&*t by hWAta~skneenetat on the Wrtrurnarit the pwamts).or the emky upon behalf
of whorl the personal steed.8"WW the krenmertt.
tivhaeaa My hand and oMNei seal. NANCY L BISHOP
WrAw�+ Warcm
Signatureec"
C.TA eUaORDWATON'Am
FD-4#A(%w.sre41 MOaT"s WD OF imp I TO Mew mm Or TRUISM P"*" .S rr 2
9439-367-7861 PIIDEJLITY NATIONAL 504 P09 OCT 05 198 13:56
r • - V
Order No. 9823933
EXHIBIT RIM"
PARCEL i:
An undivided one twenty second R1I22y fee simple Interest as a tenant In common In and to
all of the Common Area defined In the Declaration referred to below and described in the
Condominium Plan j"flan")for Lot 1 of Tract No. 14828,which plan was recorded on August
25, 1994 as Instrument No. 94.0525335of Official Records of Orange County, over Lot 1 of
Tract No. 14828,in the City of Huntington Beach,County of Orange, State of California, as
per map recorded in Book 700, Page(s) 27 to 29 of Miscellaneous Maps, in the office of the
County Recorder of said County.
EXCEPT THEREFROM all oil, gas, minerals and hydrocarbons, below a depth of 500 feet,
without the right of surface entry, as reserved in Instniments of record.
PARCEL 2:
Unit No. t 1 consisting of certain airspace and surface elements,as shown and described In
the Condominium Plan referred to in Parcel 1 above.
PARCEL 3.
Non-exclusive easements for access, ingress, egress, encroachment, drainage, repair,
maintenance, support and for other purposes, all as described In that certain Declaration of
Covenants,Conditions and Restrictions and Reservation of Easements for Pacific Park Villas,
recorded August 25, 1994 as Instrument No. 94-0525336of Official Records.
PARCEL 4:
Exclusive Easements appurtenant to Parcels 1 and 2 above, for balconies or patio purposes.
over the areas defined,depicted and assigned on the Plan.
Assessor's Parcel No: 933-87-266
2
Al
OR
. = 11111
- = Fidelity National Title Compan
Dan Bruening DATE: February 12, 1998
Redevelopment Agency of the ESCROW NO: 300286-DW
City of Huntington Beach PROPERTY ADDRESS:
2000 Main Street 18061 Joyful Lane, Huntington Beach, CA
Huntington Beach, CA 92648 92648
In connection with the above mentioned property, enclosed please find the following:
Certified Escrow Instructions
- Certified Amendment (NO CASH OUT)
- Subordination Agreement
We appreciate the opportunity of being of service to you. If we can be of further assistance, please
feel free to call upon us.
Sincerely,
F�
Debra Watson
Escrow Officer "COr9
DMyco�M�,yT 98
enclosure(s) yF�op FN
T
26522 La Alameda Suite 100• Mission Viejo,CA 92691 • (714)367-1990• FAX(714) 367-3089
RECORDING REQUESTED BY:
Fidelity National Title Company
Escrow No. 300286•DW
Title Order No.09823993 When Recorded Mail Document To:
Redevelopment Agency of the City of
Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
APN: 933-87-266
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 February 12, 1998, by Victor Rivera & Debra L. Burgess
owner of the land hereinafter described and hereinafter referred to as "Owner," and The Redevelopment Agency of
the City of Huntington Beach
present owner and holder of the deed of trust and note first hereinafter described and hereinafter referred to as
"Beneficiary";
WITNESSETH
THAT WHEREAS, Victor Rivera and Debra L. Burgess, did execute a deed of trust, dated April 11, 1995, to The City
of Huntington Beach, as trustee, covering
SEE EXHIBIT ONE ATTACHED HERETO AND MADE A PART HEREOF
to secure a note in the sum of $35,000.00, dated April 11, 1995, in favor of The Redevelopment Agency of the City
of Huntington Beach, which deed of trust was recorded as instrument no. 95-0173370, on April 26, 1995, 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 $163,000.00 dated
, in favor of Bank of America , 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 of Lender; and
CLTA SUBORDINATION W INITIALS:
FD-4 SA tRev.9194) (EXISTING DEED OF TRUST TO NEW DEED OF TRUST) Page No. 1 of 3
APN: 933-87-266
WHEREAS, it is to the mutual benefit of the parties hereto that Lender make such loan to Owner; and Beneficiary is
y willing that the deed of trust securing the same shall, when recorded, constitute a lien or charge]upon said land which
Is unconditionally prior and superior to the lien or charge of the deed of trust first above mentioned.
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 above mentioned.
(2) That Lender would not make its loan above described without 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, 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 (i) all provisions of the note and deed of trust in favor of Lender above
referred to, and (ii) 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.
CLTA SUBORDINATION `A' INITIALS:
FO-46A (Rev. 9194) (EXISTING DEED OF TRUST TO NEW DEED OF TRUST) Page No. 2 of 3
APN: 933-87-266
NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH ALLOWS THE PERSON OBLIGATED
ON YOUR REAL PROPERTY SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER
r PURPOSES THAN IMPROVEMENT OF THE LAND.
IT IS RECOMMENDED THAT, PRIOR TO THE EXECUTION OF THIS SUBORDINATION AGREEMENT, THE PARTIES
CONSULT WITH THEIR ATTORNEYS WITH RESPECT THERETO.
I G ,
The Redevelopment Agency of th Cif of ,fngto�/ Victor Rivera
Beach G�,err. v�7ii
Debra L. Burgess
Beneficiary Owner
(ALL SIGNATURES MUST BE ACKNOWLEDGED)
STATE OF CALIFgRNIA
COUNTY OF _ rot.
r
ON i� _20� 199** before me, _ta-Lt,#'a R, N�S� l'%1r07hsy ALLIx4e, personally appeared
6!0/V/V 1 C
personally known to me ) to be the personN) whose name(ti,
Oaf&subscribed to the within instrument and acknowledged to me that+e4sdiDthey executed the same intis'�their-
authorized capacity(%ih),and that byNs ht+fisignatureW on the instrumentthe personN,or the entity upon behalf
of which the personN acted, executed the instrument.
Witness my hand and official seal.
LAURA A.NELSON
corn rhsl on/105&263
.� NOtory PUM—Ccwomio
Signatur Orange CCU*
MV Comn Eq*w A/23.19M
STATE OF CALIFORNIA
COUNTY OF
ON before me, 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 helshelthey executed the same in hislherltheir
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
CLTA SUBORD1446TION "A`
FD46A(Rev. 9/94) (EXISTING DEED OF TRUST TO NEW DEED OF TRUST) Page No.3 of 3
EXHIBIT A
TO
AGENCY DEED OF TRUST '
•3r
j 5
.J
A condnmtrttum compnwd of
PARCEL I
An undivtde! one i%vnty wand(Ir2)fce simple interest as a tenant in common in and to all of
the Common Area defined in Declaration tervred to below and described in the Condominium
Plan("NW) for Lot I of Tract No 14928.%vhich Iatan was reccordrd on August 25. 1994 it
Instrument No IM-0525335 of the Wirral Records of Orange County, over Lot I nrTract
No 14828, in the C':ty of Ifuntrngtvn Brach.County of Urange. State of California,as pr
filed in Rook 706. Pages 27 to 29 of Miscellaneous Maps.in the office ofthe County R
r' said County
m..
Excepting thercrrom all oil,petroleum,asphaltum,gas. minerals and other hydrocarbon
substances- as resented in dcrd recorded August ib, 1021 in Book 401.Page 356 at Dads, and
rut►•arivas ether dreds of rreard
;= PARCEL 2
:x> Unit Na I I consisting of certain airspace and sutfacc clamcnts, as shown and described in the
1
.:; Candansirtiurn Platt rererred to in Parcel I Axwe
°a PARCEL 3
'S
�( Non-aclusl%v casements foracccss.Ingmss, egress,use.enjoyment, drainage. encroachment.
u t yurport, mairrtrnance,repairs and fat other purposes, all as described in that certain Declaration
t of Comcrtnrtts. Conditions and Restrtcttnns and Itt-wreation%of lcasements rnr Pacitic Patk
Villas,recorded August 25. 1014 at•Instrument 1n 94-052S33o of Mcial Records
r
PARCEL 4
INclusive cascmcros appurtenant to Parcels I and 2 rerctred to above, for halrnrs)at patio
ti pulrows, over the area%de lned,dcpicted and as'rrgncd(in the Plan ;.
Fidelity National Title Company
26522 La Alameda Suite 100• Mission Viejo,CA 92691
(714) 3 67-19 90• FAX (714) 3 67-3 08 9
ADDITION AND/OR AMENDMENT TO ESCROW INSTRUCTIONS
To: Fidelity National Title Company
Date: February 11, 1998
Escrow No: 300286-DW
Property Address: 18061 Joyful Lane, Huntington Beach, CA 92648
The instructions in this escrow are hereby modified, amended and/or supplemented in the following
particulars only:
1. NO CASH OUT LOAN: Escrow Holder is advised that this is a NO CASH OUT LOAN and any
funds, remaining from the loan proceeds at close of escrow, shall be paid to lender as a
principal reduction. Any funds remaining from funds deposited by borrower shall be returned
to borrower at the close of escrow; any refunds received after close of escrow shall be paid to
borrower.
All other terms and conditions remain the same.
Victor Rivera Debra L. Burgess
�1f1ED ZO BE A TRUE AND EXACT
GER OV
C04Y Al oNA L11L Ea INS.CO.
�I4ELIZY NAZI
r•
' Fidelit 'National Title Compan}
26522 La Alameda Suite 100• Mission Viejo,CA 92691
(714) 367-1990• FAX (714)367-3089
LOAN ESCROW INSTRUCTIONS
Date: February 4, 1998
Escrow No.: 300286-DW
Escrow officer: Debra Watson
Borrower will execute and deliver a new First conventional Deed of Trust
in the amount of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S 163,000.00
AND, will deliver to you any instruments which this escrow requires shall be executed by me, all of
which you are instructed to use provided that on or before March 6, 1998 you hold an ALTA Loan
Policy (10-17-92) w/Form 1 Cov. coverage form Policy of Title Insurance from Fidelity National Title
Insurance Company with the usual title company's exceptions with a liability of S 163,000.00,covering
the following described property located In the City of Huntington Beach, County of Orange, State of
California:
SEE EXHIBIT ONE ATTACHED HERETO AND MADE A PART HEREOF
BORROWER STATES THAT PROPERTY ADDRESS IS: _
18061 Joyful Lane, Huntington Beach, CA 92648
SHOWING TITLE VESTED IN:
Victor Rivera and Debra L. Burgess, Husband and Wife as Joint Tenants
FREE FROM ENCUMBRANCES EXCEPT:
1. Current general and special taxes for the fiscal year in which this escrow closes, and taxes for the
ensuing year, if any, a lien not yet due and payable;
2. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5
(commencing with Section 75) of the Revenue and Taxation Code of the State of California;
3. Bonds and Assessments with no delinquent payments, if any;
4. Covenants, conditions restrictions, reservations, easements and rights of way now of record, if
any;
5. A First Deed of Trust,to record, securing a note in the amount of $163,000.00 in favor of a lender
of Borrower's choice to be determined during escrow. ;
CONSUMMATION of this escrow is CONTINGENT UPON THE FOLLOWING:
1, NEW LOAN: Borrower obtaining and property qualifying for a new conventional First trust deed
loan securing a note in the amount of $163,000.00 in favor of lender of Borrower's choice. Said
loan to be at the best prevailing rate and terms.
Borrower's signature on lender's documents shall be deemed their approval and acceptance of the
terms and conditions of said new loan and Escrow Holder's authorization to comply with lender's
requirements.
2. GOOD FUNDS; Borrower authorize and instructs Fidelity National Title Company to record all
documents required in this escrow when all the conditions of this escrow have been met and upon
receipt and deposit of all funds necessary to consummate this transaction in the form of a cashier's
check, teller's check or certified bank check regardless of whether the funds are available for
disbursement in accordance with Reg, CC. Immediately upon availability of the deposited
instrument, Fidelity National Title Company is instructed to disburse all funds in accordance with
these instructions and/or the estimated closing statement. Check for said funds is to be made
payable to the Escrow Holder.
CERtIEIEi}10 BE A
ZRUE AND EX„CS
CC?, of aA d E,Ills.Co.
,WELM NA�10
BY:
CI`
Continued on following page Initials:
Date: February 4, 1998 Page 2
'Escrow No: 300286-DW
3. AUTHORIZATION TO OBTAIN PAYOFF STATEr4ENT(S): Pursuant to the federal office of Thrift
Supervision LOTS? regulatory requirements effective December 15, 1989, applicable to release of
customer financial information by Federal Associations, the Borrower(s) or Seller(s) herein by
signing these escrow instructions also authorizes their lienholder to release confidential financial
"PAYOFF" information to Fidelity National Title Escrow Division. Escrow Holder hereby agrees to
keep the information received confidential, and sich information shall be used only for the purpose
specified (PAYOFF STATEMENT), and shall not disclose to any other person except as may be
required by law or governmental regulation, as provided in 12 CFR 545, 132(d)(4), (d)(6),(d)(8-9)
or (d)01).
GENERAL INSTRUCTIONS:
1. Borrower agrees to provide new hazard insurance policy acceptable to lender and to authorize
payment of premium through escrow unless a paid receipt is provided to escrow.
2. Borrower agrees to pay all costs and charges in connection with this escrow including but not
limited to escrow fee, ALTA Lenders Policy of Title Insurance, recording fees and all charges as
stated in lenders instructions to escrow, all encumbrances necessary to place title in condition
called for herein, including but not limited to prepayment penalties, to show title as herein
provided,without further approval and Escrow Holder is instructed to debit borrower's account and
pay same at close of escrow.
3. The undersigned hereby authorize and instruct Escrow Holder to charge each party.to the escrow
for their respective Federal Express, special mail handling/courier and/or incoming/outgoing wire
transfer fees. Unless specified in writing by the undersigned, Escrow Holder is authorized to select
special mail/delivery or courier service to be used.
Wire services required by the parties herein or by their individual lenders will be charged at twenty
dollars 020.00) per wire, incoming and outgoing.
4. Borrower is aware that interest on the existing loan(s) does not stop accruing at close of escrow,
but continues until tt:e actual day of receipt of the payoff by Lender.
Borrower is aware that interest will accrue through weekends or holidays.
Borrower is aware he/shelthey are responsible for payment of all of such'interest and will indemnify
and hold Escrow Holder harmless in connection with the payment of such interest.
The Undersigned hereby instruct and authorize Escrow Holder to disburse proceeds as follows: `
I I TRANSFER I I All Net Proceeds, or [ I $ to
ATCN:
ESCROW NO:
( I HOLD check for PICK UP
[ I CALL when check is ready for PICK UP, PHONE NUMBER
[ I WIRE funds to (Bank Name)
Address
Routing No.
Account No.
[ I MAIL [ I FEDERAL EXPRESS check to
CERTIFIED TO BE A TRUE AND EXACT
COPY OF THE ORIGINAL
FIDELITY NATIONAL TITLE,INS. CO.
BY:
Continued on following page Initials:
bate February 4, 1998 page 3
Escrow No 300286-DW
GENERAL PROVISIONS
1 DEPOSIT OF FUNDS 8 PERSONAL PROPERTY
The law dealing with the disbursement of funds requires No examination or insurance as to the amount or payment
that all funds be available for withdrawal as a matter of right by the of personal property taxes is required unless specifically requested
title entity s escrow and/or sub escrow account prior to disbursement By signing these General Provisions the parties to the
of any funds Only cash or wire transferred funds can be given escrow hereby acknowledge that they are indemnifying the Escrow
immediate availability upon deposit Cashier s checks teller s checks Holder against any and all matters relating to any Bulk Sales
and Certified checks may be available one business day after deposit requirements and instruct Escrow Agent to proceed with the closing
All other funds such as personal corporate or partnership checks and of escrow without any consideration of matter of any nature
drafts are subject to mandatory holding periods which may cause whatsoever regarding Bulk Sales being handled through escrow
material delays in disbursement of funds in this escrow In order to 9 RIGHT OF RESIGNATION
avoid delays all fundings should be wire transfer Outgoing wire Escrow Holder has the right to resign upon ten (10) days
transfers will not be authorized until confirmation of the respective written notice delivered to the principals herein If such right is
incoming wire transfer or of availability of deposited checks exercised all funds and documents shall be returned to the party who
All funds received in this escrow shall be deposited with deposited them and Escrow Holder shall have no liability hereunder
other escrow funds in a general escrow account or accounts of 10 AUTHORIZATION TO EXECUTE ASSIGNMENT OF HAZARD
Fidelity National Title Company with any state or national bank and INSURANCE POLICIES
may be transferred to any other such general escrow account or Either Buyer Seller and/or Lender may hand you the
accounts Said funds will not earn interest unless the instructions insurance agents name and insurance policy information and you are
otherwise specifically state that funds shall be deposited in an to execute on behalf of the principals hereto form assignments of
interest bearing account All disbursements shall be made by check interest in any insurance policy(other than title insurance) called for
of Fidelity National Title Company The principals to this escrow are in this escrow forward assignment and policy to the insurance agent
hereby notified that the funds deposited herein are insured only to the requesting that the insurer consent to such transfer and/or attach a
limit provided by the Federal Deposit Insurance Corporation Any loss payable clause and/or such other endorsements as may be
instruction for bank wire will provide reasonable time or notice for required and forward such policy(s)to the principals entitled thereto
Escrow Holder s compliance with such instruction Escrow Holder s It is not your responsibility to verify the information handed you or
sole duty and responsibility shall be to place said wire transfer the assignability of said insurance Your sole duty is to forward said
instructions with its wiring bank upon confirmation of(1)satisfaction request to insurance agent at close of escrow
of conditions precedent or (2) document recordation at close of Further there shall be no responsibility upon the part of
escrow Escrow Holder will NOT be held responsible for lost interest Escrow Holder to renew hazard insurance policy(s)upon expiration or
due to wire delays caused by any bank or the Federal Reserve otherwise keep it in force either during or subsequent to the close of
System and recommends that all parties make themselves aware of escrow Cancellation of any existing hazard insurance policies is to
banking regulations with regard to placement of wires be handled directly by the principals and outside of escrow
In the event there is insufficient time to place a wire upon 11 ACTION IN INTERPLEADER
any such confirmation or the wires have closed for the day the The principals hereto expressly agree that you as Escrow
parties agree to provide written instructions for an alternative method Holder have the absolute right at your election to file an action in
of disbursement WITHOUT AN ALTERNATIVE DISBURSEMENT mterpleader requiring the principals to answer and litigate their
INSTRUCTION FUNDS WILL BE HELD IN TRUST IN A NON INTEREST several claims and rights among themselves and you are authorized
BEARING ACCOUNT UNTIL THE NEXT OPPORTUNITY FOR WIRE to deposit with the clerk of the court all documents and funds held
PLACEMENT in this escrow In the event such action is filed the principals jointly
If for any reason funds are retained or remain in escrow and severally agree to pay your cancellation charges and costs
following the close of escrow you are to deduct therefrom a expenses and reasonable attorneys fees which you are required to
reasonable monthly charge as custodian thereof of not less than expend or incur in such interpleader action the amount thereof to be
$10 00 per month fixed and judgment therefor to be rendered by the court Upon the
2 PRORATIONS AND ADJUSTMENTS filing of such action you shall thereupon be fully released and
All prorations and/or adjustments called for in this escrow discharged from all obligations imposed by the terms of this escrow
are to be made on the basis of a thirty (30) day month unless or otherwise
otherwise instructed in writing You are to use information contained 12 TERMINATION OF AGENCY OBLIGATION
on last available tax statement rental statement as provided by the If there is no action taken on this escrow within six (6)
Seller beneficiary s statement and fire insurance policy delivered into months after the time limit date as set forth in the escrow
escrow for the prorations provided for herein instructions or written extension thereof your agency obligation shall
3 SUPPLEMENTAL TAXES terminate at your option and all documents monies or other items
The within described property may be subject to held by you shall be returned to the parties depositing same In the
supplemental real property taxes due to the change of ownership event of cancellation of this escrow whether it be at the request of
taking place through this escrow Any supplemental real property any of the principals or otherwise the fees and charges due Fidelity
taxes arising as a result of the transfer of the property to Buyer shall National Title Company including expenditures incurred and/or
be the sole responsibility of Buyer and any supplemental real property authorized shall be borne equally by the parties hereto (unless
taxes arising prior to the closing date shall be the sole responsibility otherwise agreed to specifically)
of the Seller TAX BILLS ISSUED AFTER CLOSE OF ESCROW SHALL 13 CONFLICTING INSTRUCTIONS
BE HANDLED DIRECTLY BETWEEN BUYER AND SELLER Upon receipt of any conflicting instructions you are to take
4 UTILITIES/POSSESSION no action in connection with this escrow until non conflicting
Transfer of utilities and possession of the premises are to instructions are received from all of the principals to this escrow
be settled by the parties directly and outside escrow (subject to sections 7 9 11 and 12 above)
5 PREPARATION AND RECORDATION OF INSTRUMENTS 14 REIMBURSEMENT ATTORNEY FEES/ESCROW HOLDER
Escrow Holder is authorized to prepare obtain record and In the event that a suit is brought by any party or parties to
deliver the necessary instruments to carry out the terms and these escrow instructions to which the Escrow Holder is named as a
conditions of this escrow and to order the policy of title insurance to party which results in a judgment in favor of the Escrow Holder and
be issued at close of escrow as called for in these instructions Close against a principal or principals herein the principals or principals
of escrow shall mean the date instruments are recorded agent agree to pay said Escrow Holder all costs expenses and
6 AUTHORIZATION TO FURNISH COPIES reasonable attorney s fees which it may expend or incur in said suit
You are authorized to furnish copies of these instructions the amount thereof to be fixed and judgment therefore to be rendered
supplements amendments notices of cancellation and closing by the court in said suit
statements to the Real Estate Broker(s)and Lender(s)named in this 15 DELIVERY/RECEIPT
escrow Delivery to principals as used in these instructions unless
7 RIGHT OF CANCELLATION otherwise stated herein is to be by regular mad and receipt is
Any principal instructing you to cancel this escrow shall file determined to be 72 hours after such mailing All documents
notice of cancellation in your office in writing You shall within two balances and statements due to the undersigned are to be mailed to
(2)working days thereafter deliver one copy of such notice to each the address shown herein
of the other principals at the addresses stated in this escrow 16 STATE/FEDERAL CODE NOTIFICATIONS
UNLESS WRITTEN OBJECTION TO CANCELLATION IS FILED IN According to Federal Law the Seller when applicable will
YOUR OFFICE BY A PRINCIPAL WITHIN TEN(10)DAYS AFTER DATE be required to complete a sales activity report that will be utilized to
OF SUCH MAILING YOU ARE AUTHORIZED TO COMPLY WITH generate a 1099 statement to the Internal Revenue Service
SUCH NOTICE AND DEMAND PAYMENT OF YOUR CANCELLATION Pursuant to State Law prior to the close of escrow Buyer
CHARGES If written objection is filed you are authorized to hold all will provide Escrow Holder with a Preliminary Change of Ownership
money and instruments in this escrow and take no further action until Report In the event said report is not handed to Escrow Holder for
otherwise directed either by the principals r@fflTIFIf6tTO BE A TBU&NH MT County in which subject property is located upon
instructions or by final order of a court of competent jurisdiMY OF THE URiffftof the Grant Deed Buyers acknowledge that the applicable
FIDELITY NATIONAL TITLE, INS CO
Continued on following page BY v- Initials
Date: February 4, 1998 _ Page 4
Esgrow No: 300286-DW I , I ; '
r %mo.l
fee will be assessed by said County and Escrow Holder shall debit the 19.USURY
account of Buyer for same at close of escrow. Escrow Molder is not to be concerned with any questions
Buyer and Seller herein represent and warrant that they will of usury in any loan or encumbrance involved in the processing of
seek and obtain Independent legal advice and counsel relative to their this escrow and is hereby released of any responsibility or liability
obligations under the*Foreign Investors In Real Property Act%and therefore.
any other applicable federal and/or state laws regarding same, and 20.DISCLOSURE
will take all steps necessary in order to comply with such Escrow Holder's knowledge of matters affecting the
requirements and ;hereby hold you harmless relative to their property,provided such facts do not prevent compliance with these
compliance therewith. instructions,does not create any liability or duty in addition to these
17.ENCUMBRANCES instructions.
Escrow Holder Is to act upon any statements furnished by 21.CLARIFICATION OF DUTIES
a lienholder or his .agent without liability or responsibility for the Fidelity National Tide Company serves ONLY as an Escrow
accuracy of such statements. Any adjustments necessary because Holder in connection with these instructions and cannot give legal
of a discrepancy between the information furnished Escrow Holder advice to any party hereto.
and any amount later determined to to correct shall be settled Escrow Holder Is not to be held accountable or liable for the
between the parties direct and outside of escrow, sufficiency or correctness as to form,manner of execution,or validity
18.ENVIRONMENTAL ISSUES of any instrument deposited in this escrow, nor as to the identity,
Fidelity National Tide Company has made no Investigation authority or rights of any person executing the same. Escrow
concerning said property as to environmental/toxic waste Issues. Holder's duties hereunder shall be limited to the proper handing of
Any due diligence required or needed to determine environmental such money and the proper safekeeping of such instruments,or other
impa-t as to forms of toxification,If appl"cable,will be done directly documents received by Escrow Holder, and for the disposition of
and by principals outside of escrow. Fidelity National Title Company same in accordance with the written instructions accepted by Escrow
Is released of any responsibility and;'or liability in connection Holder.
therewith. The agency and duties of Escrow Holder commence only
upon receipt of copies of these Escrow Instructions executed by all
parties.
THIS AGREEMENT IN ALL PARTS APPLIES TO, INURES TO THE BENEFIT OF, AND BINDS ALL PARTIES HERETO,
THEIR HEIRS, LEGATEES, DEVISEES, ADMINISTRATORS, EXECUTORS, SUCCESSORS AND ASSIGNS, AND
WHENEVER THE CONTEXT SO REQUIRES THE MASCULINE GENDER INCLUDES THE FEMININE AND NEUTER, AND
THE SINGULAR NUMBER INCLUDES THE PLURAL. THESE INSTRUCTIONS AND ANY OTHER AMENDMENTS MAY
BE EXECUTED IN ANY NUMBER OF COUNTERPARTS, EACH OF WHICH SHALL BE CONSIDERED AS AN ORIGINAL
AND BE EFFECTIVE AS SUCH.
MY SIGNATURE HERETO CONSTITUTES INSTRUCTION TO ESCROW HOLDER OF ALL TERMS AND CONDITIONS
CONTAINED IN THIS AND ALL PRECEDING PAGES AND FURTHER SIGNIFIES THAT I HAVE READ AND UNDERSTAND
THESE GENERAL PROVISIONS.
FIDELITY NATIONAL TITLE COMPANY CONDUCTS ESCROW BUSINESS UNDER A LICENSE ISSUED TO IT UNDER
IDENTIFICATION NO. 2597.3 BY THE CALIFORNIA DEPARTMENT OF INSURANCE.
Victor Rivera Debra L. Burgess
CERTIFIED TO BE A TRUE AND EXACT
COPY OF THE ORIGINAL
FIDELITY NATIONAL TITLE, INS. CO.
BY-7 —
EXHIBIT ONE
A Condominium comprised oft
PARCEL It
An undivided one twenty second fl/221 fair simple interest as a tenant in common in and to
all of the Common Area defined In Aeelaration referred to belov and described in the
Condominium Plan ['Plan•! for Lot I of Tract No. 16231. which Plan was recorded on Augaat
25. 1l94 as lnstruawnt No. 94.052513E of Official !records of Orange County. over Lot 1 of
Tract lie. 14122. 1n the City of Muntington teach, County of Cc"&. State of CalitornaA.
as per snap tiled in Zook 706. Pagan 27 to 29 of Miscellaneous Maps, in the office of the
County Recorder of bald County.
Rxeepting therefrom all oil, petroleum, Asphaltum. gas. minerals And Ocher hydrocarbon
avbstanesa, as rsserva4 in dead recorded August 16. 192% in Rook 401. Page 3S4 of Oeedo.
and in varioua other deeds of record.
PARCEL 2s
unit no. 11 consistinq of certain airspace and surface elements, as shown and described
In the Condominium Plan reterrad to in parcel 3 Above.
PARCEL 3t
lion-exclusive ameaments for access. ingress, agrees. use, on)oya,.nt. drainage.
encroachment, support. maintenance. repairs and for ocher purposes. all as described in
that esitain Declaration of Covenants. Conditions and Restrictsons and Re■er-,'ation of
iaaements for Pacific Park Villas, recorded Auquat 2S. 1794 as Instrument Ho. 94•CS2S336
of Official Racords.
PARCEL 4r
=xclunive easements appurtenant to ?Arcola 1 and 2 referred to above. for balcony or
pstso purposes. over the areas defined, depicted and assigne3 on the Plan.
CERTIFIED TO BE A TRUE AND EXACT
COPY OF THE ORIGINAL
FIDELITY NATIONALTITLE, INS. CO.
BY.
•r
6 y
proposed safe 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 15%) 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
71t6,naoclageria(10711 zisa
Trustor's ability to sell the Property shall have no further force or of feet 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 Prcrperty free and clear from such restrictions.
7. Obligation to Refrain from Discrimination. There shall be no discrimination
against or segregation of any person, or group of persons, on account of race, color, creed,
religion, sex, marital status, national origin, or ancestry, in the sale, lease, sublease,
transfer, use, occupancy, tenure, or enjoyment of the Property, nor shall the Beneficiary
itself or any person claiming under or through it establish or permit any such practice or
practices of discrimination or segregation with reference to the selection, location, number,
use or occupancy of tenants, lessees:, subtenants, sublessees, or vendees of the City or
any portion thereof.
Trustor agrees it shall instruct the escrow holder for the acquisition of the
Property by the Trustor that the order of recording in the escrow for the purchase of the
Property by the Trustor shall occur as follows: 1) the First Lien; 2) the Declaration of
Covenants, Conditions & Restrictions for Affordable Housing; and 3) the Agency Deed of
Trust.
8
711oandocI&gcVf;drt'OII12194
f
�1
ir
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 1. The Director of Economic Development, or his/her
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 lour 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
�� 7lsetasidMS011V930].2B PM
�1
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. TheAgency 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
9 993.
Chairman
ATTEST: APPROVE AS TO FORM:
Agency Cleric ie 2 c; tinsel i1q3
R 'EWED AND APPROVED: INITIATED AND APPROVED:
Executive Direc r De uty City Administrator)
Director of Economic Development 5
2 1 `
71setasiden Oil 1/9303:26 PM 1'�
I
4
CITY OF HUNTINGTON BEACH
PO BOX 190 HUNTINGTON BEACH CA 92648
DATE PO NUMBER GROSS AMOUNT DISCOUNT NET AMOUNT
04-13-95 $35,000 00 $35,000 00
TOTALS' $35,000 00 $35,000 00
16 351/12
CITY OF HUNTINGTON BEACH
NUN48ER
PO BOX 190 3 0
HUNTINGTON BEACH CALIFORNIA
PAY TO THE ORDER OF
DATE NUMBER \ NET AMOUNT
Tiempo Escrow 04-13-95 315066 �t} **$35,000 00
CITY OF
HUNTINGTON BEACH
VOID UNLESS PRESENTED FOR ENCASHMENT
WITHIN 90 DAYS FROM DATE OF ISSUE
SANWA BANK CALIFORNIA �f/� /�•
HUNTINGTONBEACH OFFICE 6881WAR
6881 WARNER AVENUE
HUNTINGTON BEACH CA 92647
11' 3 1 506611' 1 L 2 200 3 5 16, 209411,00 2091"
-
D i
P-6 m, tl
REQUESIveUR REDEVELOPMENT AGEMY ACTION
MEETING DATE: April 3, 1995 DEPARTMENT ID NUMBER: ED-95-12
CounciVAgency Meeting Held:_ 7�3•�,S
Deferred/Continued to:
XApproved t7 Conditiona1y Approved ❑Denied City Clerk's Signature
Council Meeting Date: April 3, 1995 Department ID Number: ED-95-12
REQUEST FOR REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY
MEMBERS
SUBMITTED BY: MICHAEL T. UBERUAGA, Executive Directo
PREPARED BY: RAY SILVER, Acting Di ector of Economic Development/Assistant
City AdministratorQV
SUBJECT: Down Payment Assistance Program - Participant Approval Pacific
Park Villas Project, Talbert-Beach Redevelopment Project Area --
(Loan Agreements)
Statement or Issue,Funding Source.Recommended Action,Alternative Action,Analysis,Environmental Status,Attachment(s)
Statement of Issue: The Agency is committed by a Disposition and Development
Agreement to provide second trust deed loans to moderate income buyers in the Pacific
Park Villas located in the Talbert-Beach Redevelopment Project Area. This project is open
for sales and the fifth borrowers have requested Agency approval.
Funding Source: Redevelopment Agency Housing Set-Aside Funds, Account Number
E-TX-ED-751-7-75-00.
Recommended Action:
1. Approve the borrowers listed on the attached by name, the amount of the loan and the
specific property subject to trust deed and the individualized Down Payment Assistance
loan documents for each.
2. Approve and Authorize Chairperson and Agency Clerk to execute the one loan
document between the Agency and the participants (attached).
Alternative Action(s): Do not approve the participants.
DPA95-5.DOC -2- 03/27/95 11:17 AM
REQUEOI-tR REDEVELOPMENT AGElR�Y ACTION
MEETING DATE: April 3, 1995 DEPARTMENT ID NUMBER: ED-95.12
Analysis: On June 3, 1993, the Redevelopment Agency approved a Disposition and
Development Agreement (DDA) between the Agency and Sassounian Capital Ventures
Inc., calling for the completion of 38 condominiums on a site in the Talbert-Beach
Redevelopment Project Area. Under the DDA, $750,000 of Redevelopment Housing funds
are committed to assist up to twenty-five moderate-income buyers in the Pacific Park Villas
Condominium project.
With Agency approval of these borrowers, staff will then send an RLS to the City Attorney
for approval of standard loan documents with borrower's name, capacity of borrower,
property legal description and amount of loan. Agency staff prepares demand for payment
to the escrow company. Then the following will occur:
City Clerk will attest to signature of Mayor and prepares the Deed Certificate.
Staff will give a final review of the signed loan documents and gives City Clerk an
envelope, the check and escrow company address and phone number to call escrow to
pickup at clerk's office. Before escrow picks up documents and check, City Clerk will
make copy of all documents, including check to hold Until the original documents are
returned to the City Clerk. The escrow company will provide a copy of their letter to the
Orange County Recorder which transmitted the Deed of Trust.
Escrow returns all original documents to the City Clerk. The recorded Deed of Trust will
be returned to the City Clerk by the Orange County Recorder.
City Clerk sends copies of all executed documents to Economic Development. Agency
staff will make a final check that all escrow instructions have been fulfilled and inform the
City Clerk that the loan is completed for filing.
Additional borrowers will be recommended up to the maximum level of assistance required
by the DDA.
Environmental Status: None
A_ ttachment(s): 1. List of Prospective Borrowers.
2. Program Loan Documents
City Clerk's
DPA95-5.00C -3- 0312719 5 11:IT AM
REQUESt—F6R REDEVELOPMENT AG ACTION
MEETING DATE: April 3, 1995 DEPARTMENT ID NUMBER: ED-95-12
DOWN PAYMENT
ASSISTANCE PROGRAM
Location of Property
Loan Name Amount Subject to Trust Deed
95-06 Victor Rivera & Debra L. Burgess $35,000 18061 Joyful Lane, #104
Note:
1. Borrowers have received "conditional loan approval' from first trust deed lender.
2. Pursuant to Agency direction, overtime and bonuses are considered
indefinite sources of income and may or may not be used to qualify
borrowers on a case-by-case basis.
DPA95-S.DOC -4- 03l27195 11:17 AM
RCA ROUTING SHEET
INITIATING DEPARTMENT:
SUBJECT:
[COUNCIL MEETING DATE:
RCA ATTACHMENTS STATUS
Ordinance wlexhibits & legislative draft if applicable) Attached
Resolution wlexhibits & legislative draft if a livable Attached
Tract Map, Location Map and/or other Exhibits Attached
Contract/Agreement (wlexhibits if applicable)
(Signed in full 6 Z the City Attome Attached
Subleases, Third Party Agreements, etc.
(Appoved as to form by gLtZ Attomyj Attached
Certificates of Insurance (Approved by the City Attomp Attached
Financial Impact Statement Unbud et, over$5.000) Attached
Bonds If applicable) Attached
Staff Report If applicable) Attached
Commission, Board or Committee Report If a licable Attached
Findings/Conditions for Approval and/or Denial Attached
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED RETURNED FORWARDED
Administrative Staff
Assistant City Administrator Initial
City Administrator Initial
City Clerk
EXPLANATION FOR RETURN OF ITEM:
r
i
LOAN AGREEMENT
THIS LOAN AGREEXlENT(the "Agreement")is made this llth day of
April, 1995 , 1995 by and between VICTOR RIVERA and DEBRA L.
BURGESS ("Participant") and the REDEVELOPMENT AGENCY OF THE CITY OF
HLTNTTNGTON BEACH, a public body corporate and politic(the "Agency").
RECITALS
A. Participant has entered into an agreement(the "Purchase Agreement")to purchase
that certain real property commonly known as 18061 Joyful Lane, #104 . 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 1201/o of the current annual median income for the
Orange County area, as those terms are defined by California Health and Safety Code
Section 50093.
C. Participant has represented to the Agency that Participant and Participant's
immediate family intend to reside in the Property at all times throughout the term of this
Agreement.
D. The Agency desires to assist persons of low and moderate income to purchase
residential property to increase, improve, and preserve low and moderate income housing
available at an affordable housing cost within the City of Huntington Beach(the "City").
E. The Agency wishes to lend, and Participant wishes to borrow, Program funds to
assist Participant to purchase the Property upon the terms and conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration the parties agree as follows:
1. Agency Loan. The Agency shall loan to Participant(the "Agency Loan")the
amount of Thirt -five Thousand Dollars (535 000.04 subject to the conditions and
restrictions set forth herein and those set forth in the Promissory Note and the Disclosure
Statement for the Program. The Agency Loan shall be paid to the seller of the Property(the
"Seller")by the Agency through deposit of the Agency Loan proceeds into escrow with
(the"Escrow Agent") (Escrow No.
8128 ). The Agency shall direct the Escrow Agent to apply the proceeds of
the Agency Loan on behalf of Participant to the purchase price of the Property, and, at
Participant's election, to the costs of closing, escrow fees, recording fees, loan points and fees,
and/or document fees. At such time,Participant shall execute and deliver to the Agency a
promissory note in favor of the Agency as holder, in the amount of the Agency Loan,with simple
Loan Agreement
Page 1 of 8
4'slAgrvc:Riv1e&A)3l23195
interest at five percent(51,11o)per annum, due in thirty(30)years and payable upon the earlier sale,
refinancing or transfer of the Property, substantially in the form of the "Promissory Note"
attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to
the Agency a second deed of trust encumbering the Property which shall secure the Promissory
Note(the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated
herein.
2. Maintenance of Property. Participant shall maintain the improvements on the
property in a manner consistent with community standards and in a manner which v;111 uphold the
value of the Property, and shall keep the Property free from any accumulation of debris and waste
materials. Participant agrees to comply with any and all covenants and agreements established by
any homeowner's association or other regulatory entity recognized by area property owners and
comply with all applicable federal, state and local laws.
3. Due on Saie.Transfer or Re4inanring. Participant agrees to notify the
Agency not less than thirty(30) days prior to(i)the sale or transfer of the Property or(ii)any
refinancing of the lien of the Agency Deed of Trust or any lien to which the lien of the Agency
Deed of Trust is subordinate (the "First Mortgage"). The Agency Loan and all interest accrued
thereon shall be due and payable upon(i) such sale or transfer, (ii)the refinancing of the First
Mortgage for a loan amount in excess of the then current loan balance or for an amortization
period longer than the loan secured by the First Mortgage, or(iii)Participant is no longer an
occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any
other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its
sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan.
4. Equity_ShadM. In the event that the Agency Loan becomes due and payable
prior to the thirtieth anniversary of the date of this Agreement,Participant shall pay to Agency
concurrently with such sale, transfer or refinancing, an amount equal to the"Equity Share
Amount." The Equity Share Amount shall be determined by applying a percentage factor(the
"Applicable Factor")to the difference between the Sales Price and the Purchase Price(defined
below) as follows:
I. Prior to fifth anniversary
of the Agency Deed of Trust: fifty percent (50%)
2. After fifth anniversary but
prior to sixth anniversary: forty-eight percent(48%)
3. After sixth anniversary but
prior to seventh anniversary forty-six percent (46%)
4. After seventh anniversary but
prior to eighth anniversary: forty-four percent (44%)
Loan Agreement
Page 2 of 8
4 slrlgree:Rivlae,03123195
5. After eighth anniversary but
prior to ninth anniversary: forty two percent (42%)
6. After ninth anniversary but
prior to tenth anniversary: forty percent(40%)
7. After tenth anniversary but
prior to eleventh anniversary: thirty-eight percent (3811/6)
8. After eleventh anniversary but
prior to twelfth anniversary: thirty-six percent(36%)
9. After twelfth anniversary but
prior to thirteenth anniversary: thirty-four percent (34°'o)
10. After thirteenth anniversary but
prior to fourteenth anniversary: thirty-two percent (32%)
11. After fourteenth anniversary but
prior to fifteenth anniversary: thirty percent(301/6)
12. After fifteenth anniversary but
prior to sixteenth anniversary: twenty-eight percent (28%)
13. After sixteenth anniversary but
prior to seventeenth anniversary: twenty-six percent(26°o)
14. After seventeenth anniversary but
prior to eighteenth anniversary: twenty-four percent(24%)
15. After eighteenth anniversary but
prior to nineteenth anniversary: twenty-two percent(22%)
16. After nineteenth anniversary but
prior to twentieth anniversary: twenty percent(201/o)
17. After twentieth anniversary but
prior to twenty-first anniversary: eighteen percent (18%)
18. After twenty-first anniversary but
prior to twenty-second anniversary: sixteen percent (16%)
19. After twenty-second anniversary but
prior to twenty-third anniversary: fourteen percent (14%)
Loan Agreement
Page 3 of 8
,fA,%gme:Riviosn 03R3/93
20. After twenty-third anniversary but
prior to twenty-fourth anniversary: twelve percent (12%)
21. After twenty-fourth anniversary but
prior to twenty-fifth anniversary: ten percent (10%)
22. After twenty-fifth anniversary but
prior to twenty-sixth anniversary: eight percent (8%)
23. After twenty-sixth anniversary but
prior to twenty-seventh anniversary: six percent (6%)
24. After twenty-seventh anniversary but
prior to twenty-eighth anniversary: four percent (4%)
25. After twenty-eighth anniversary but
prior to twenty-ninth anniversary: two percent(2%)
26. After twenty-ninth anniversary but
prior to thirtieth anniversary: one percent (1%)
27. After thirtieth anniversary: zero percent (0%)
The"Purchase Price" is the price paid by the Participant to the Seller for Sellees interest in
the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or
any other closing or transaction costs.
The actual cost to Participant of all capital improvements to the Property made while
Participant owned the Property may be added to the Purchase Price if Participant complies with
the following:
No capital improvements which cost more than two thousand five hundred dollars
($2,500) shall be added to the Purchase Price unless within sixty(60) days following completion
of such capital improvements to the Property Participant shall send the following to the Agency:
(i)an itemized list of the improvements, (ii)proof of completion of the improvements, and(iii)
evidence of the cost of the improvements. The costs incurred by the Participant for capital
improvements which cost less than two thousand five hundred dollars($2,500) shall be added to
the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a
form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan.
The "Sales Price" is the price paid by the Buyer of the Property to Participant for
Participant's interest in the Property, exclusive of escrow fees, title insurance costs,broker's
commissions, loan fees or any other closing or transaction costs.
Loan Agreement
Page 4 of 8
4's\Agrec:Rivlo&W-03R3/93
A. Equity Share Upon Sale or Transfer. The Equity Share Amount shall be
payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer")
whose income exceeds 120% of the current annual median income for the Orange County area. If
the Buyer does not submit an income verification statement to the Agency, the Buyer shall be
deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the
Equity Share Amount sha'.1 not become payable.
B. Egtiity Share Upon Refinancing or Failure to Occupy. The Equity
Share Amount shall be payable to the Agency upon a refinancing, failure to occupy the Property
or material breach of any other provision of this Agreement which causes the Agency Loan to
become due and payable. The Sales Price for purposes of determining the Equity Share Amount
shall be determined by an appraisal of the Property. The Agency shall appoint a certified,
independent, appraiser to conduct an appraisal of the Property, at Participant's expense, and
Participant agrees that in such event the Equity Share Amount shall be the Applicable Factor
multiplied by the difference between the Purchase Price and the appraised value of the Property as
of the time of such refinancing. This Agreement shall be terminated upon the Participant's
repayment of the Agency Loan and payment of the Equity Share Amount as provided in this
Agreement.
C. Expiration of Equity Share Obligation. In the event the Participant
does not sell or transfer the Property, does not fail to occupy the Property, does not refinance, or
is not in material breach of any other provision of this Agreement before the Thirtieth anniversary
of the date of this Agreement, the Participant shall have no obligation to pay the Equity Share
Amount to Agency upon any later sale,transfer or refinancing.
5. Occupancy Standards.The Property shall be used as the personal residence of
Participant and Participant's immediate family and for no other purpose. Participant shall not
enter into an agreement for the rental or lease of the Property.
6. Income Information. Participant has submitted an eligibility verification form to
the Agency prior to execution of this Agreement. Participant represents and warrants to the
Agency that all information Participant has provided and will provide in the future is and will be
true, correct and complete. Participant acknowledges that the Agency is relying upon
Participant's representations that Participant's income does not exceed 120%of the area median
income and would not have entered this Agreement if Participant's income exceeded 120%of the
area median income.
7. Loan Servicing. The Agency may contract with a private lender to originate
and service the Agency Loan.
8. Participant Financing. Participant shall obtain financing for the purchase of the
Property from the Southern California Home Financing Authority or a reputable institutional
lender approved by the Agency(the "Lender"). The lien secured by the Agency Deed of Trust
shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns.
Loan Agreement
Page 5 of 8
4'sMZ=:Riv1oW43R3/93
In addition, not less than three percent (3%)of the Purchase Price of the Property shall be paid in
cash from Participant's own resources and not from the proceeds of a loan.
9. Covenants. Participant and the Agency shall execute and have recorded in the
Official Records of Orange County, California, a"Declaration of Conditions, Covenants and
Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated
herein, in which Participant agrees that the Property shall only be owned by Participant or other
persons or families of low or moderate income available at an affordable housing cost, as those
terms are defined in California Health& Safety Code Sections 50093 and 50052.5, and that
Participant shall not discriminate against any person or group of persons on the basis of race,
color, religion, sex, marital status, national origin or ancestry. Such convenants shall run with the
land, in favor of the Agency and the City.
10. Non-Waiver. Failure to exercise any right the Agency may have or be entitled to,
in the event of default hereunder, shall not constitute a waiver of such right or any other right in
the event of a subsequent default.
11. Indemnification. The Participant shall defend, indemnify and hold harmless
the Agency and the City of Huntington Beach and thcir respective officers, agents, employees,
representatives and volunteers from and against any Ioss, liability, claim or judgment relating in
any manner to the Property or this Agreement. The Participant shall remain fully obligated for the
payment of property taxes and assessments related to the Property. There shall be no reduction in
taxes for Participant, nor any transfer of responsibility to the Agency or the City to make such
payments, by virtue of the Agency Loan.
12. Defaults. Failure or delay by either party to perform any term or provision of
this Agreement which is not cured within thirty(30) clays after receipt of notice from the other
party constitutes a default under this Agreement; provided, however, if such default is of the
nature requiring more than thirty(30) days to cure, the defaulting party shall avoid default
hereunder by commencing to cure within such thirty(30) day period and thereafter diligently
pursuing such cure to completion. The party who so fails or delays must immediately commence
to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or
remedy with diligence.
The injured party shall give written notice of default to the party in default,
specifying the default complained of by the injured party. Except as required go protect against
further damages, the injured party may not institute proceedings against the party in default until
thirty(30) days after giving such notice. Failure or delay in giving such notice shall not constitute
a waiver of any default, nor shall it change the time of default.
13. Documents. Participant is aware that the Agency has prepared certain
documents to implement the Program and secure repayment of the Agency Loan. Participant has
reviewed and agrees to execute the following documents prior to receiving the Agency Loan:
Loan Agreement
Page 6 of S
41s4lgee:Riv1oan A3/23.95
(a) Disclosure Statement;
(b) Promissory Note;
(c) Agency Deed of Trust; and
(d) Declaration of Conditions, Covenants and Restrictions of Property.
Participant agrees and acknowledges that the Agency Deed of Trust and the
Declaration of Conditions, Covenants and Restrictions of Property shall be recorded 1"rith the
County Recorder of the County of Orange and shall appear of record with respect to and as
encumbrances to the Property.
14. Furt.� her Assurances. The Participanr 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 Agency Loan.
15. Governing Law. This Agreement shall be governed by the laws of the State
of California. Any legal action brought under this Agreement must be instituted in the Superior
Court of the County of Orange, State of California, in an appropriate municipal court in that
county, or in the Federal District Court in the Central District of California.
16. Amendment of Agreement. No modification, rescission, waiver, release or
amendment of any provision of this Agreement shall be made except by a written agreement
executed by the Participant and Agency.
17. Agena Mjy Assign. Agency may, at its option, assign its right to receive
repayment of the loan proceeds without obtaining the consent of the Participant.
18. Participant Assignment_Prohibited. In no event shall Participant assign or
transfer any portion of this Agreement without the prior express written consent of the Agency,
which consent may be given or withheld in the Agency's sole discretion. No assumption of the
Agency Loan shall be perr utted at any time. This section shall not prohibit the Agency's right to
assign all or any portion of its rights to the loan proceeds hereunder.
19. Entire Agreement. This Agreement constitutes the entire understanding and
agreement of the parties. This Agreement integrates all of the terms and conditions mentioned
herein or incidental thereto, and supersedes all prior negotiations, discussions and previous
Loan Agreement
Page 7 of 8
4 jMgm:Rivlour003123193
agreements between the Agency and the Participant concerning all or any part of the subject
matter of this Agreement
IN WITNESS WHEREOF the parties have executed this Agreement as of the day and
year written below
"PART CrIP�A-N. 1
Date AprilBy 17 19 95 B `� � y �
Printed Name Victor Rivera
Date April 17 19 95 By
Printed Name Debra L Burgess
THE REDEVELOPMENT AGENCY OF
THE CITY OF HUNTINGTON BEACH,
a public body corporate and politic
Date 19 By s� —
Chairman ,
ATTEST APPROVED AS TO FORM
Agency Clerk A
p ency Counsel
3-z3-5 �3/aa/gs
REVIEWED AND APPROVED INITIATED AND APPROVED
Executive Director Directo�conomic Development
Loan Agreement
Page 8 of 8
4\s\Agee Rivloan\03/23/95
EXIIIBIT A
LEGAL DESCRIPTION OF PROPERTY
A condominium comprised of:
PARCEL l:
An undivided one twenty second (1/22)fee simple interest as a tenant in common in and to all of
the Common Area defined in Declaration referred to below and described in the Condominium
Plan("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as
Instrument No. 94-0525335 of the Official Records of Orange County, over Lot 1 of Tract
No. 14828, in the City of Huntington Beach,County of Orange, State of California,as per map
filed in Book 706,Pages 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of
said County.
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon
substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and
in various other deeds of record.
PARCEL 2:
Unit No. 11 consisting of certain airspace and surface elements, as shown and described in the
Condominium Plan referred to in Parcel I above.
PARCEL 3:
Non-exclusive easements for access, ingress, egress,use, enjoyment, drainage, encroachment,
support, maintenance, repairs and for other purposes, all as described in that certain Declaration
of Convenants, Conditions and Restrictions and Reservations of Easements for Pacific Park
Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records.
PARCEL 4:
Exclusive easements appurtenant to Parcels I and 2 referred to above,for balcony or patio
purposes, over the areas defined, depicted and assigned on the Plan.
Exhibit A to Loan Agreement
Page I of I
EXHIBIT A
TO
AGENCY DEED OF TRUST
LEGAL DESCRIPTION
A condominium comprised of.
PARCEL 1:
An undivided one twenty second(1122) fee simple interest as a tenant in common in and to all of
the Common Area defined in Declaration referred to below and described in the Condominium
Plan C'Plan"}for Lot 1 of Tract No. 14928,which Plan was recorded on August 25, 1994 as
Instrument No. 94-0525335 of the Official Records of Orange County, over Lot I of Tract
No. 14828, in the City of Huntington Beach,County of Orange, State of California, as per map
filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of
said County.
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon
substances, as reserved in deed recorded August 16, 1921 in Book 401,Page 356 of Deeds, and
in various other deeds of record.
PARCEL 2:
Unit No. 11 consisting of certain airspace and surface elements, as shown and described in the
Condominium Plan referred to in Parcel 1 above.
PARCEL 3:
Non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment,
support, maintenance, repairs and for other purposes, all as described in that certain Declaration
of Convenants, Conditions and Restrictions and Reservations of Easements for Pacific Park
Villas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records.
PARCEL 4:
Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio
purposes, over the areas defined, depicted and assigned on the Plan.
"Exhibit A" to Agency Deed of Trust
Page 1 of 1
4`a1A&m:san:DeedD3123195
41
j, CITY OF HUNTINGTON BEACH
C-t 13 2000 MAIN STREET CALIFORNIA 92643
OFFICE OF THE CITY CLERK
COWlii£BROCKWAY
CITYCLERK
DEED CERTIFICATION
This is to certify that the interest in real prcperty conveyed by the Deed dated
April 11, 1995 from Victor Rivera and Debra L. Burgess to the
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a
governmental agency, is hereby accepted by the undersigned officer or agent
on behalf of the Agency pursuant to the authority conferred by Resolution
No. 36 of the Agency and the grantee consents to the recordation thereof by its
duty authorized officer.
Dated: April 13, 1995
CITY OF HUNTINGTON BEACH
CONNIE BROCKWAY, CMC
CLERK
By:
Deputy Cleric
i
g:cc�decdcest
Mlsphoni:714-616-52271
CITY OF HUNTINGTON BEACH
` 2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
DEED CERTIFICATION
This is to certify that the interest in real prcperty conveyed by the Deed dated
March 23, 1995 from Victor Rivera and Debra L. Burgess to the
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a
governmental agency, is hereby accepted by the undersigned officer or agent
on behalf of the Agency pursuant to the authority conferred by Resolution
No. 76 of the Agency and the grantee consents to the recordation thereof by its
duly authorized officer.
Dated: April 11, 1995
CITY OF HUNTINGTON BEACH
CONNIE BROCKWAY, CMC
CLERK
By:
Deputy Clerk
g:amen
(Tflrphonr 714536-5227)
EXIIIBIT B
PROMISSORY NOTE
$ 35,000.00 Huntington Beach, California
April 11th , 1995
FOR VALUE RECEIVED, the undersigned ("Maker") promises to pay to The
Redevelopment Agency of the City of Huntington Beach("Holder") at 2000 Main Street,P.O.
Box 190, Huntington Beach, California 92648, or at such other address as Holder may direct
from time to time in writing, Thirty-five Thousand Dollars($35,000.00) (the "Note Amount")
together with interest thereon at the rate set forth herein. All sums hereunder shall be payable in
lawful money of the United States of America and all sums shall be credited first to interest then
due and the balance to principal.
1. Interest Rate
Simple interest shall accrue on the Note Amount at a rate of five percent (5.00%) per
annum_ If the fair market value of the Property does not increase at least five percent(5.00%)per
annum,the accrued interest on the Note Amount shall be forgiven by the Holder.
2. Maturity Date
The balance of all unpaid principal and accrued interest shall be due and payable on
April 11th__, 2025 (thirtieth(30th)anniversary date of this Promissory Note).
3. Acceleration
The whole of the Note Amount plus accrued interest and all other payments due
hereunder shall become due and be immediately payable to the Holder by the Maker upon the
occurrence of any one of the following events:
(a) Maker sells or otherwise transfers title to the Property; or
(b) Maker refinances any lien or encumbrance to which the Agency Deed of
Trust is subordinate for a loan amount which is in excess of the then current loan balance
of such prior lien or extends the amortization period of the loan secured by such prior lien;
or
(c) Maker fails to occupy the Prorerty or to perform any obligation under the
Agreement(as hereinafter defined).
"Exhibit B"to Loan Agreement
Pagel of3
4,.%Agree: RivProm103/23/95
4. Security for Note
This Promissory Note shall be secured by a second deed of trust encumbering the Property
(the "Agency Deed of Trust"), executed by Maker as Trustor in favor of Holder as Trustee.
5. Prepayment of Note Amount
Maker may prepay to Holder the full Note Amount, together with simple interest thereon
at a rate of five percent (5.00%)per annum, at any time prior to the due date of the Note
Amount.
6. Loan Agreement
This Promissory Note is made and delivered pursuant to and in implementation of Loan
Agreement entered by and between the Holder and the Maker dated April 11 , 1995
(the"Agreement"), a copy of which is on file as a public record with the Holder and is
incorporated herein by reference. The Maker acknowledges that but for the execution of this
Promissory Note, the Holder would not enter into the Agreement or make the loan contemplated
therein. Unless definitions of terms have been expressly set out at length herein, each term shall
have the same definition as set forth in the Agreement.
7. Holder May Assign
Holder may, at its option, assign its right to receive payment under this Promissory Note
without necessity of obtaining the consent of the Maker.
8. Maker Assignment Prohibited
In no event shall Maker assign or transfer any portion of this Agreement without the prior
express written consent of the Holder, which consent may be given or withheld in the Holder's
sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This
Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan
proceeds hereunder.
9. Attorneys'Fees and Costs
In the event that any action is instituted to enforce payment under this Promissory Note,
the Maker promises to pay such sums as a court may fix for court costs and reasonable attorneys'
fees_
10, Non-Waiver
Failure or delay in giving any notice required hereunder shall not constitute a waiver of
any default or late payment, nor shall it change the time for any default or payment.
"Exhibit B" to Loan Agreement
Page 2 of 3
4,.kAgree: RivProm103/23/95
11. Successors Bound
This Promissory Note shall be binding upon the parties hereto and their respective heirs,
successors and assigns.
"MAaA-4'--
By:
Printed Name: Victor Rivera
B P& dgID
Printed Name: Debra L. Burgess
"Exhibit B" to Loan Agreement
Page 3 of 3
4, Agree: RivProm103123l95
- � - REC0;0:-i1G P -
CONTINEti'TAL W,'YERS TITLE CO.
I�� r 95-0173370
RECORDING REQUESTED BY } 26—APR-1995 O$:DO AM
AND WHEN RECORDED RETURN TO: ) kecord-2d in Official F:e_crds
cf'Grai3e County, California
Redevelopment Agency of the City of ) Gary L. Grawille, Clerk-fiecordEr
Huntington Beach ) Fase 1 of le Fees: I 0.C.."
2000 Main Street ) Tax: 3
Huntington Beach, California 92648 )
Attn: Agency Clerk )
IspwnAbove m"Lum For Ro=&n Use i
This document is exempt from 4p
recording fees pursuant to `D
Government Coda Section 6103.
4 DEED OF TRUST WITH ASSIGNMENTS OF RENTS Q
THIS DEED OF TRUST is made this 11th day of„ Anri1 , 1995, by and
among VICTOR RIVERA and DEBRA L. BURGESS, whose address is I8061 Joyful Lane,
�. #104, Huntington Beach, CA 92648 (the "Trustor") and THE CITY OF HUNTINGTON
Q� 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.
NVITNESSETH: 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 aII classes of property attached or
unattached used in connection herewith shall be deemed fixtures, (b)rents, issues and profits
thereof,(c)any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums
of money payable on the purchase price of said property secured by a lien thereon or payable
under any agreement for the sale thereof, SUBJECT,HOWEVER, to the right, power and
authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents,
issues and profits, and all sums of money payable on the purchase price of said property secured
by a lien thereon or payable under any agreement.
"Exhibit C" to Loan Agreement
Page 1 of 15
41sVg7=:RivDeed03123193
A. FOR THE PURPOSE OF SECURING:
1. Payment of the sum of Thirty-five Thousand Dollars ($35,000)with interest
thereon according to the terms of a Promissory Note of even date herewith, made by Trustor,
payable to the order of the Beneficiary and extensions or renewals thereof.
2. Payment of such additional sums with interest thereon as: (a) may be hereafter
borrowed from the Beneficiary by the then record owner or owners of said property when
evidenced by another Promissory Note or Notes, or(b) as may be added to the indebtedness
secured hereby in accordance with the provision of this Deed of Trust.
3. Performance of each and every obligation, covenant, promise or agreement of
Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated
April 11 , 1995, insofar as the terms and conditions of that agreement may apply to
Trustor.
4. Payment, vrith 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
"Exhibit C" to Loan Agreement
Page 2 of 15
4%\ASw:RivDca-03r2319S
Beneficiary; (b)to allow Beneficiary to inspect such property at all times during rehabilitation;
(c)to replace any work or materials unsatisfactory to Beneficiary within fifteen(15) calendar days
after written notice from Beneficiary of such fact, which notice may be given to Trustor by
registered or certified mail, sent to his last known address, or by personal service of the same; (d)
that work shall not cease on the rehabilitation of such improvements for any reason whatsoever
for a period of fifteen(15)calendar days, whether consecutive or not,without the written
permission of the Beneficiary; (e)to pay when due all claims of labor and materials furnished in
connection with the said rehabilitation and not to permit any claims of lien for said work or
material to be filed of record against the property; (0 not to permit any stop notice claims to be
presented to Beneficiary. If said property is part of a larger tract upon which improvements will
be constructed, Trustor shall make separate contracts and subcontracts for said construction
which shall pertain to the said property only and shall keep separate, full and complete records of
all work and materials furnished to the said property. Trustee upon presentation to it of an
affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this
paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to
act thereon hereunder.
2. To provide, and maintain in force at al..l times with respect to said property, fire and
other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss
payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and
in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be
delivered to and remain in possession of Beneficiary as further security for the faithful
performance of these trusts. At least thirty(30) days prior to the expiration of any insurance
policy, a policy or policies renewing or extending such expiring insurance shall be delivered to
Beneficiary together with written evidence showing payment of the premium therefor and, in the
event any such insurance policy and evidence of the payment of the premium therefor are not so
delivered by Trustor to Beneficiary, Trustor by executing this Deed of Trust specifically requests
Beneficiary to obtain such insurance and Beneficiary, without obligation to do so, without notice
to or demand upon Trustor and without releasing Trustor from any obligation hereof, may obtain
such insurance through or from any insurance agency or company acceptable to it, pay the
premium thereof, and may add the amount thereof to the indebtedness secured hereby, which
amount shall bear a like rate of interest. Beneficiary may furnish to any insurance agency or
company, or any other person, any information contained in or extracted from any insurance
policy delivered to Beneficiary pursuant hereto and any information concerning the loan secured
hereby. Neither Trustee nor Beneficiary shall be responsible for such insurance or for the
collection of any insurance monies, or for any insolvency of any insurer or insurance underwriter.
In case of insurance loss,Beneficiary is hereby authorized either(a)to settle and adjust any claim
under the insurance policies provided for in this document without the consent of the Trustor, or
(b) to allow Trustor to agree with the insurance company or companies on the amount to be paid
upon the loss. In either case, the Beneficiary is authorized to collect and make receipt of any such
insurance money. If Trustor is obligated to restore or replace the damaged or destroyed buildings
or improvements under the terms of any lease or leases which are or may be prior to the lien of
this Deed of Trust and such damage or destruction does not result in cancellation or termination
of such lease, such proceeds, after deducting therefrcm any expenses incurred in the collection
thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings
"Exhibit C" to Loar.Agreement
Page 3 of 15
4's\AVee:RivDccd03.23,V 3
or improvements on said premises. In all other cases, such insurance proceeds, at the option of
the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether
due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used
to reimburse the Trustor for the cost of the rebuilding;or restoring the buildings or improvements
on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at
least equal value and substantially the same character as prior to the damage or destruction, and
shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or
waive any default or notice of default hereunder or invalidate any act done pursuant to such
notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of,
the property conveyed at any Trustee sale held hereunder.
3. To pay: (a) at least ten(10)days before delinquency, all general and special City
and County taxes, and all assessments on appurtenant water stock, affecting such property, (b)
when done, all special assessments for public improvements, without permitting any improvement
bond to issue for any special assessment(c)when done, all encumbrances, charges and lines,with
interest, on said property, or any part thereof,which are or appears to be prior to superior hereto,
(d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act
required of the Lessee or its successor in interest under the terms of the instrument or instruments
creating said leasehold, (e) all costs, fees and expenses of this trust, (f) for any statement
regarding the obligation secured hereby any amount demanded by Beneficiary not to exceed the
maximum allowed by law thereof at the time when such request is made, (g) such other charges
for services rendered by Beneficiary and furnished at Trustor's request or that of any successor in
interest to Trustor as the Beneficiary may deem reasonable.
If,by the laws of the United States of America, or of any state having jurisdiction over the
Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the
Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor
fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary may
elect to make such payment and any amount so paid may be added by Beneficiary to the
indebtedness secured hereby and shall bear a like rate of interest.
4. That, should Trustor fail to make any payment or do any act as provided in this
Deed of Trust,the Beneficiary or Trustee, but without obligation to do so and without notice to
or demand upon Trustor and without releasing Trustor from any obligation hereof,may(a) make
or do the same in such manner and to such extent as either may deem necessary to protect the
security hereof, Beneficiary or Trustee being authorized to enter upon said property for such
purposes, (b) commence, appear in, or defend any action or proceeding;purporting;to affect the
security hereof or the property covered by this Deed of Trust, or the rights or powers of
Beneficiary or Trustee, (c)pay, purchase, contest or compromise any encumbrance, charge or
lien, which in the judgment of either is or appears to be prior or superior hereto, and(d)in
exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees.
Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so
expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like
rate of interest.
"Exhibit C"to Loan Agreement
Page 4 of I5
4's\Agree:RivDeed103123195
5. To appear in and defend any action or proceeding purporting to affect the security
hereof or the property which is covered by this Deed of Trust, or the rights or powers of
Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and
expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such
action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party
defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such
property id directly questioned by such action, including any action for the condemnation or
partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust.
6. To pay immediately and without demand, all sums expended under the terms of
this Deed of Trust by Beneficiary or Trustee,with interest from the date of expenditure at the rate
which the principal obligation secured hereby bears at the time such payment is made, and the
repayment of such sums shall be secured hereby.
7. That, shou?d 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, o.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.
"Exhibit C" to Loar.Agreement
Page 5 of 15
,f zVAgm:RivDmJA)3f13+9 5
11. That the lien hereof shall remain in full force and effect during any postponement
or extension of time of payment of the indebtedness secured hereby, or any part thereof.
12. That, upon written request of Beneficiary stating that all sums secured hereby have
been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for
cancellation and retention, and upon payment of its fees, Trustee shall reconvey, without
warranty, the property then held hereunder. The recitals in such reconveyance of any matters of
fact shall be conclusive of the truthfulness thereof. The grantee in such reconveyance may be
described as "the person or persons legally entitled thereto." Such request and reconveyance shall
operate as re-assignment of the rents, issues, royalties and profits assigned to Beneficiary. Five
(5)years after issuance of such full reconveyance, Trustee may destroy said Note and this Deed of
Trust(unless directed in such request to retain them).
13. That as additional security, Trustor irrevocably assigns to Beneficiary the rents,
issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms
and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to
produce rents from the property affected by this Trust Deed, or cause Beneficiary to be (a)
"mortgages in possession" for any purpose; (b)responsible for performing any of the obligations
of the lessor under any lease; or(c)responsible for any waste committed by lessees or any other
parties, for any dangerous or defective condition of the property affected by this Trust Deed, or
for any negligence in the management, upkeep, or control of such rights to rents, issues and
profits is not contingent upon, and may be exercised without possession of, the property affected
by this Trust Deed.
Beneficiary confers upon Trustor a license("License")to collect and retain the rents,
issues and profits of the property affected by this Trust Deed as they become due and payable,
until the occurrence of a default hereunder. Upon su:h default,the License shall be automatically
revoked and Beneficiary may collect and retain the rents, issues and profits without notice and
without taking possessions of the property affected by this Trust Deed. This right to collect rents,
issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as
otherwise provided herein, and neither said right, nor termination of the License, shall impose
upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part
of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustoes right to
collect any such money shall cease and Beneficiary shall have the right, with or without taking
possession of the property affected hereby, to collect all rents, issues, royalties and profits and
shall be authorized to, and may, without notice and irrespective of whether declaration of default
has been delivered to Trustee and without regard to declaration of default has been delivered to
Trustee and without regard to the adequacy of the security for the indebtedness secured hereby,
either personally or by attorney or agent without bringing any action or proceeding, or by receiver
to be appointed by the Court, enter into possession said 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
"Exhibit C" to Loan Agreement
Page 6of15
4eAZ=:RivDccd03.a3,'95
hereby, the rents, issues, royalties and profits of said property being hereby assigned to
Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not
constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of
Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or
from time to time, to collect any such rents, issues, royalties or profits shall not in any manner
affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the
same. The receipt and application by said Beneficiary of all such rents, issues, royalties and
profits pursuant hereto, after execution and delivery of declaration of default and demand for sale
as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not
cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto,
but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and
reasonable attorneys'fees, when received by Beneficiary, shall be applied in reduction of the
indebtedness secured hereby, from time to time, in such order as Beneficiary may determine.
Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be
construed to be,an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption
of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such
tenancy, lease or option.
14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees
that: (a)the term "Lease" as used herein shall mean the lease creating the "Ieasehold 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,Bcneficiary shall have the right, at its option,
to declare all sums secured hereby immediately due and payable. Consent to or waiver of one of
said violations shall not be deemed to be a consent to or waiver or any other violation. If the
security for this Deed of Trust is a leasehold estate, the term "property" as used in this Deed of
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 Tote, 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
"Exhibit C"to Loan.Agreement
Page 7 of 15
4's"g=:RivDce4A3r23,95
payable by delivery to Trustee of written declaration of default and demand for sale of written
notice of default and of election to cause to be sold said property, which notice Trustee shall
cause to be filed for record Beneficiary shall also deposit with Trustee this Deed of Trust and
any Notes and all documents evidencing expenditures, secured hereby After the lapse of such
time as then may be required by law following recordation of such notice of default, and notice of
sale having been given as then required by law, Trustee, without demand on Trustor, shall sell
said property at the time and place fixed by it in such notice of sale, whether as a whole or in
separate parcels, and in such order as it may determine, at public auction to the highest bidder for
case in lawful money of the United States, payable at time of sale Trustee may postpone sale of
all or any portion of said property by public announcement at such time and place of sale, and
from time to time thereafter may postpone such sale by public announcement at the time fixed by
the preceding postponement Trustee shall deliver to such purchaser its Deed conveying the
property so sold, but without any covenant or warranty, express or implied The recital in such
Deed of any matters of fact shall be conclusive of the truthfulness thereof Any person, including
Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale Trustee may
also sell at any such sale and as part thereof any shares of corporate stock securing the obligations
secured hereby, and Trustor waives demand and notice of such sale (Beneficiary at its option
may also foreclose on such shares by independent pledge sale, and Trustor waives demand and
notice of such sale) After deducting all costs, fees and expenses of Trustee, and of this Trust,
including cost of evidence of title in connection with this sale, Trustee shall apply the proceeds of
sale to payment, first, all sums expended under the terms hereof, not then repaid, with accrued
interest at the rate then payable under the Note or Notes secured hereby, and then of all other
sums secured hereby, and, if there are any proceeds remaining, shall distribute them to the person
or persons legally entitled thereto
16 To waive, to the fullest extent permissible by law, the right to plead any statute of
limitations as a defense to any demand secured hereby
17 That Beneficiary may, from time to time, by instrument in writing, substitute a
successor or successors to any Trustee named herein or acting hereunder, which instrument,
executed and acknowledged by Beneficiary and recorded in the office of the recorder of the
county or counties where such property is situated, shall be conclusive proof of property
substitution of such successor Trustee or Trustees, who shall, without conveyances from the
Trustee predecessor, succeed to all its title, estate, rights, powers and duties, including but not
limited to the power to reconvey the whole or any part of the property covered by this Deed of
Trust Such instrument must contain the name of the original Trustor, Trustee and Beneficiary
hereunder, the book and page where this Deed of Trust is recorded If notice of default shall have
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 pledge, of the Note secured hereby,
"Exhibit C" to Loan Agreement
Page 8 of 15
4\s\Agree RivDeed\03/23/95
whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so
requires,the masculine gender includes the feminine and/or neuter, and the singular number
includes the plural.
19. That in the event the property secured by this Deed of Trust is income producing
property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on
January 1, a-written operational report. Such operational report shall contain a brief but complete
statement of the year's income and expenses of such property, a list of all vacancies, and a
statement of any material change in the property or business carried on therein for such period.
20. That in the event of a demand for, and the preparation and delivery of a written
statement regarding the obligations secured by this Deed of Trust pursuant to Sections 2943 and
2954 of the Civil Code of California, Beneficiary shall be entitled to make a reasonable charge,
not exceeding the maximum amount which is permitted by law at the time the statement is
furnished. Beneficiary may also charge Trustor a reasonable fee for any other services rendered
to Trustor or rendered in Trustor's behalf in connection with said property of this Deed of Trust,
including changing Beneficiary's records pertaining to this Deed of Trust and the loan secured
hereby in connection with the transfer of said property, or releasing an existing policy of fire
insurance or other casualty insurance held by Beneficiary and replacing the same with another
such policy.
21. That Trustee accepts this Trust when this Deed of Trust, duly executed and
acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any
party hereto of pending sale under any other Deed of Trust or of any action or proceeding in
which Trustor, Beneficiary, or Trustee shall be a party unless brought by Trustee.
22. That should this Deed of Trust or any Note secured hereby provide any fee for
prepayment of any indebtedness secured hereby, Trustor agrees to pay said fee, if any, of said
indebtedness shall be paid prior to the due date thereof stated in said Note or this Deed of Trust
even if notwithstanding Trustor shall have defaulted in payment thereof, or in performance of any
agreement hereunder, and Beneficiary, by reason thereof, shall have declared all sums secured
hereby immediately due and payable.
23. That Trustor has made certain representations and disclosures in order to induce
Beneficiary to make the loan evidenced by the Promissory Note or Notes which this Deed of
Trust secures, and in the event that Trustor has made any material misrepresentation or failed to
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.
"Exhibit C" to Loan.agreement
Page 9 of 15
4's\Agree:RivDeedA3,Z3:95
Any notice which any party hereto may desire or be required to give to the other party
shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his
address hereinabove set forth or to the Beneficiary at his office or at such other place as such
parties hereto may designate in writing.
THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of
default and of any notice of sale hereunder be mailed to him at his address herein before set forth.
TRUST R:
By: t1
Victor Rivera
By: Oily
Debra L. Burgess
APPROVED AS TO FORM:
Aeencv Counsel
Axs
"Exhibit C"to Loan Agreement
Page 10 of 15
,F&V%g=:RivDeed,03,1319 S
CALIF6RNIA"xLL-PURPOSE ACKNOWbL-'DOMENT
STATE OF California
COUNTY OF Orange _ SS.
On LApril llth, 1995 before me, the undersigned, personally appeared
Victor Rivera and Debra L. Burgess
personally known to me (or proved to me on the basis or satisfactory evidence) to be the person(s)
whose name(s) islare subscribed to the within instrument and acknowledged to me that helshelthey
executed the same in his/her/their authorized capacity(ies), and that by histherltheir 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. (This area for otricial notarial seal)
• LINDA J.CAMPS ELL =
a
COMM. 0 1045344 Co
Signatur fS] NrARY PUBLIC-CAUFOR.\A
Linda J. pbell Z z onA4GE000NIY
Ary Comm.Expk"DEC.20.Ieae
rffrrrr[(rrrffirffrrfrrrifrrrrrflrrrrff OPTIONAL rrfr[ffffrrffffrrrfrrf[rfrfr(flrrffrff
Though the data below are not required by law, they may prove valuable to persons relying on the
document and could prevent the fraudulent reattachment of this form.
Capacity Claimed By Signer Description of attached Document
❑ Individual
❑ Corporate Officer Deed of Trust With Assignment of Rents
Titles(s) Title or Type of Document
❑ Partner(s) ❑ Limited
❑ General
❑ Attorney-in-Fact 18,
❑ Trustee(s) Number of Pages
❑ Guardian/Conservator
❑ Other:
APRIL 11, 1995
Date of Document
Sigler Is Representing:
Narre of Person(s)or Entity(les)
Slgner(s)Other Than Tamed Above
RIDER TO DEED OF TRUST
FIRST TIME HOMEBUYER DOWN PAYMENT ASSISTANCE PROGRAM
This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement
dated April llth , 1995 (the "Loan Agreement"), pursuant to which Beneficiary has
agreed to loan Trustor the sum of Thirty-five Thousand dollars($35,000) (the "Loan Amount").
All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings
as defined in the Loan Agreement.
In the event that the Agency Loan becomes due and payable prior to the thirtieth
anniversary of the date of this Agreement, Trustor shall pay to Beneficiary concurrent with such
sale, transfer or refinancing, an amount equal to the"Equity Share Amount." The Equity Share
Amount shall be determined by applying a percentage factor(the"Applicable Factor")to the
difference between the Sales Price and the Purchase Price(defined below) as follows:
I. Prior to fifth anniversary
of the Agency Deed of Trust: fifty percent(50%)
2. After fifth anniversary but)
prior to sixth anniversary: forty-eight percent (4801/0)
3. After sixth anniversary but
prior to seventh anniversary forty-six percent (46%)
4. After seventh anniversary but
prior to eighth anniversary: forty-four percent(44%)
5. After eighth anniversary but
prior to ninth anniversary: forty two percent (42%)
6. After ninth anniversary but
prior to tenth anniversary: forty percent(40%)
7. After tenth anniversary but
prior to eleventh anniversary: thirty-eight percent (38%)
8. After eleventh anniversary but
prior to twelfth anniversary: thirty-six percent (36%)
9. After twelfth anniversary but
prior to thirteenth anniversary: thirty-four percent (340.o)
"Exhibit C" to Loar,Agreement
Page 11 of 15
4`slAglec:RivDccJ43,13/93
10. After thirteenth anniversary but
prior to fourteenth anniversary: thirty-two percent (32%)
11. After fourteenth anniversary but
prior to fifteenth anniversary: thirty percent (30%)
12. After fifteenth anniversary but
prior to sixteenth anniversary: twenty-eight percent (28%)
13. After sixteenth anniversary but
prior to seventeenth anniversary: twenty-six percent (2601'0)
14. After seventeenth anniversary but
prior to eighteenth anniversary: twenty-four percent (24%)
15. After eighteenth anniversary but
prior to nineteenth anniversary: twenty-two percent(22%)
16. After nineteenth anniversary but
prior to twentieth anniversary: twenty percent (20%)
17. Auer twentieth anniversary but
prior to twenty-first anniversary: eighteen percent(18%)
18. After twenty-first anniversary but
prior to twenty-second anniversary: sixteen percent(16%)
19. After twenty-second anniversary but
prior to twenty-third anniversary: fourteen percent (14%)
20. After twenty-third anniversary but
prior to twenty-fourth anniversary: twelve percent (12%)
21. After twenty-fourth anniversary but
prior to twenty-fifth anniversary: ten percent(10%)
22. After twenty-fifth anniversary but
prior to twenty-sixth anniversary: eight percent (8%)
23. After twenty-sixth anniversary but
prior to twenty-seventh anniversary: six percent (6%)
24. After twenty-seventh anniversary but
prior to twenty-eighth anniversary: four percent(4%)
"Exhibit C"to Loan Agreement
Page 12 of 15
4'z\AUm:RivDced A3F2].95
25. After twenty-eighth anniversary but
prior to twenty-ninth anniversary: two percent(2%)
26. After twenty-ninth anniversary but
prior to thirtieth anniversary: one percent (1%)
27. After thirtieth anniversary: zero percent (0%)
The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in
the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or
any other closing or transaction costs.
The actual cost to Participant of all capital improvements to the Property made while
Participant owned the Property may be added to the Purchase Price if Participant complies with
the following:
No capital improvements which cost more than two thousand five hundred dollars
($2,500) shall be added to the Purchase Price unless within sixty(60) days following completion
of such capital improvements to the Property Participant shall send the following to the Agency:
(i) an itemized list of the improvements, (ii) proof of completion of the improvements, and (iii)
evidence of the cost of the improvements. The costs incurred by the Participant for capital
improvements which cost less than two thousand five hundred dollars($2,500)shall be added to
the Purchase Price upon Participant's submission of evidence of such costs to the Agency, in a
form reasonably satisfactory to the Agency, prior to the due date of the Agency Loan.
The "Sales Price" is the price paid by the Buyer of the Property to Trustor for Trustoes
interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan
fees or any other closing or transaction costs.
The percentage factor so determined is the "Applicable Factor." If the Property is sold, an
amount equal to the Applicable Factor multiplied by the difference between(i)the original
Property purchase price and (H)the amount received by Trustor as the Property sale price(as
reduced by costs of sale paid by the Trustor)shall constitute the Equity Share Amount. If the
Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is
subordinate is refinanced for a loan amount which is in excess of the then current loan balance or
extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a
certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in
such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference
between(i)the original Property purchase price and (ii)the appraised value of the
"Exhibit C" to Loan Agreement
Page 13 of 15
*s\Agree:RivDcedA3,23:93
Property as of the time of such transfer or refinancing.
Dated: ' 1 1 cisTR' STOR
A "
Victor Rivera
a L. Burgess
APPROVED AS TO FORME:
V
Agency Attorney
"Exhibit C" to Loan Agreement
Page 14 of 15
4XAAgrve:RivDce 03r23"15
RIDER TO DEED QF TRUST
SUPERIORITY OF FIRST LENDER DOCUMENTS
(if required by the First Lender)
This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement
dated - April llth__ �, 1995 (the "Loan Agreement"), pursuant to which Beneficiary has
agreed to loan Trustor the sum of Thirty-five Thousand dollars($35,000) (the "Loan Amount").
All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings
as defined in the Loan Agreement.
Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the
rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender
as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter
recorded against the property described herein.
Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions
of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of
one of the following events:
1) Title is acquired by the First Lender or another party upon foreclosure of a deed of
trust by the First Lender.
2) Title is acquired by the First Lender o:,another party by a deed in lieu of
foreclosure of the First Lender deed of trust.
ffI Dated: ` ' 1115 T U! O
(Ira
r .i vera
6 ess Rivera
APPROVED AS TO FORM:
J .I,-
n �S Attorney 4�
"Exhibit C"to Loan Agreement
Page 15 of 15
4`a\Agrcc:RivDoedA3 Z3/l5
EXI1IBIT A
TO
AGENCY DEED OF TRUST
LEGAL DESCRIPTION
A condominium comprised of:
PARCEL I:
An undivided one twenty second (1122) fee simple interest as a tenant in common in and to all of
the Common Area defined in Declaration referred to below and described in the Condominium
Plan("Plan") for Lot I of Tract No. 14828,which Plan was recorded on August 25, 1994 as
Instrument No. 94-0525335 of the Official Records of Orange County, over Lot 1 of Tract
No. 14828, in the City of Huntington Beach,County of Orange, State of California, as per map
filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of
said County.
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon
substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and
in various other deeds of record.
PARCEL 2:
Unit No. 11 consisting of certain airspace and surface elements, as shown and described in the
Condominium PIan referred to in Parcel 1 above.
PARCEL 3:
Non-exclusive easements for access, ingress,egress, use, enjoyment, drainage, encroachment,
support, maintenance, repairs and for other purposes, all as described in that certain Declaration
of Convenants, Conditions and Restrictions and Reservations of Easements for Pacific Park
Millas, recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records.
PARCEL 4:
Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio
purposes, over the areas defined, depicted and assigned on the Plan.
"Exhibit A" to Agency Deed of Trust
Page 1 of I
4eAgree:Sass:Dced-03.123195
CITY OF HUNTINGTON BEACH
2000 MAIN STREET CALIFORNIA 92648
OFFICE OF THE CITY CLERK
CONNIE BROCKWAY
CITY CLERK
DEED CERTIFICATION
This is to certify that the Interest in real property conveyed by the Deed dated
April 11 1995 from Victor Rivera and Debra L. Burgess to the
REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a
governmental agency is hereby accepted by the undersigned officer or agent
on behalf of the Agency pursuant to the authority conferred by Resolution
No 76 of the Agency and the grantee consents to the recordation thereof by its
duly authorized officer
Dated April13 1995
CITY OF HUNTINGTON BEACH
CONNIE BROCKWAY CMC
CLERK
By i �
Deputy Clerk
g cc\deedcert
(Telephone 714 536 5227)
PLEASE COMPLETE THIS INFOR ION
RECORDING REQUESTED BY
11 �
�6—AF —1995 08 z()C�
AND WHEN RECORDED MAIL TO
ReccrCEj in Offi«aI heLords
of GransA County C.-Iifoma
Gaty L tIe4-Rerorder
Fasc 1 of 10 Fees
Ta � f
THIS SPACE FOR RECORDER S USE ONLY
TITLE-og,e
1
THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION
(Additional recording fee applies)
b 11/92
FIECOR01hG R&UJESTED BY
CONTINENTAL LAWYERS TITLE CO.
DECLARATION OF CONDITIONS COVENANTS
AND RESTRICTIONS FOR PROPERTY
RECORDING REQUESTED BY )
AND INTIEN RECORDED MAIL TO: )
REDEVELOPMENT AGENCY OF THE CITY
OF HUNTINGTON CH
2000 MAIN STREET
HUNSTINGTON BEACH, =IFORNIA 92648 ` z�
ATTENTION: AGENCY CLERK )
0 )
1 (Space above for Recorder's use.)
THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR
PROPERTY the "Declaration" is ride an6 be!w em VICTOR RIVERA and DEBRA L.
BURGESS (the "Covenantor") and THE REDEVELOPMENT AGENCY OF THE CITY OF
HUNTINGTON BEACH, a public body corporate and politic(the "Agency" or"Covenantee")as
of the date set forth below.
RECITALS
A. Covenantor and the Agency have entered into a certain Loan Agreement dated
April llth , 1995, (the "Agreement," a copy of which is on file with the Agency at its
offices and is a public record)pursuant to which the Covenantor has agreed to subject certain real
property(referred to in the Agreement and referred to herein as the "Property") described in the
"Legal Description of the Property" (which is attached hereto as Exhibit "A" and incorporated
herein by this reference)to certain covenants, conditions and restrictions.
B. The Community Redevelopment Law(California Health and Safety Code
33000 et seq_)provides that a redevelopment agency shall establish covenants running with the
land in furtherance of redevelopment plans.
NOW,THEREFORE, the parties hereto agree and covenant as follows:
"Exhibit D" to Loan Agreement
Page 1 of 9
41sVWw:Riv decdu103r23-9S
1. Affordability Covenants. Covenantor agrees for itself, and its successors and
assigns, and every successor to Covenantor's interest in the Property, or any part thereof that for
thirty(30)years from the date of recording of the Deed of Trust in favor of the Agency regarding
the Property(the "Expiration Date"):
(a) The Property shall only be owned and occupied by Convenantor or by
other persons or families of".Moderate Income." "Moderate Income" shall mean persons or
families earning One Hundred Twenty Percent(120%) or less of Orange County median income,
adjusted for appropriate family size.
(b) The Property shall be kept avzilable at Affordable Housing Cost(as defined
below)to the Covenantor or other persons or families of moderate income. Affordable Housing
Cost shall mean, as to each person or family of low or moderate income, that purchase price
which would result in monthly housing payments which do not exceed an amount under any
currently prevailing conventional home mortgage lending rates applied by any reputable
institutional home mortgage lender, or the lending rases of any government-subsidized or special
mortgage program for which such person or family qualifies and has obtained a first trust deed
loan, which do not exceed thirty-five percent(35%) of One Hundred Ten Percent(110%)of the
Orange County monthly median income for those persons and families of moderate income(as
determined by the United States Department of Housing and Urban Development)earning
between Eighty Percent(90%) and One Hundred Ten Percent (110%)of the Orange County
monthly median income, and Thirty-Five Percent (35%) of the monthly median income of any
person or family of moderate income which earns mere than One Hundred Ten Percent(110%)
and not more than One Hundred Twenty Percent (120%)of the Orange County median income.
(c) The covenant contained in this Section 1 shall run with the land and shall
automatically terminate and be of no further force or effect upon the Expiration Date.
2. Transfer of Property. No transfer of the Property shall occur until the Agency
determines (a)that the proposed purchaser intends to occupy the Property as the proposed
purchaser's principal residence, (b)that the proposed purchaser is a person or family of moderate
income and(c)that the proposed transfer occurs at an Affordable Housing Cost. The Agency
shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted
to the Agency such information and completed such forms as the Agency shall request to certify
the proposed purchaser's intent with respect to its residency of the Property and its gross income,
and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the
proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall
submit to the Agency an executed disclosure statement which certifies that the purchaser is aware
that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate
income person or family, that the maximum permitted sales price may be less than fair market
value and that the unit must be owner-occupied at all times and cannot be rented or leased.
Covenantor shall cooperate with the Agency in providing such forms to proposed purchasers and
in assisting proposed purchasers to prepare such forms and to provide any required information to
the Agency in connection with the Covenantoes original sale of the Affordable Unit, provided that
"Exhibit D"to Loan Agreement
Page 2 of 9
4AAg=:Riv aalar%03P23195
the Covenantor shall not be obligated to incur any out-of-pocket costs in connection therewith,
other than employee time dedicated to providing such assistance.
THE COVENANTOR AND EACH SUCCESSOR, HEIR OR ASSIGN OF
COVENANTOR UNDERSTANDS THAT THE DETERMINATION OF THE AFFORDABLE
HOUSING COST CAN BE MADE ONLY AT THE:TIME OF THE PROPOSED TRANSFER.,
TAKING INTO CONSIDERATION INTEREST RATES, THE TERMS OF SALE OFFERED
TO AND THE ECONOMIC CIRCUMSTANCES OF TIC PROPOSED PURCHASER AND
OTHER FACTORS THAT CANNOT BE ACCURATELY PREDICTED, AND THAT THE
TRANSFER PRICE PERMITTED HEREUNDER MAY BE LESS THAN THE FAIR
MARKET VALUE OF THE PROPERTY AND MAY NOT INCREASE OR DECREASE IN
THE SAME MANNER AS OTHER SIMILAR REAL PROPERTY WHICH IS NOT
ENCUMBERED BY THIS RESTRICTION. COVENANTOR AND EACH SUCCESSOR,
HEIR OR ASSIGN OF COVENANTOR FURTHER ACKNOWLEDGES THAT AT ALL
TIMES IN SETTING THE TRANSFER PRICE THE PRIMARY OBJECTIVE OF THE
AGENCY AND THIS DECLARATION IS TO PROVIDE HOUSING TO ELIGIBLE
PERSONS OR FAMILIES AT AN AFFORDABLE HOUSING COST.
Covenantor 'gals
The covenant contained in this Section 2 shall run with the land and shall
automatically terminate and be of no further force or effect upon the Expiration Date.
3. Non-Discrimination Covenants. Covenantor covenants by and for itself, its
successors and assigns, and all persons claiming under or through them that there shall be no
discrimination against or segregation of any person or group of persons on account of race, color,
religion, sex, marital status, national origin or ancestry in the sale, lease, sublease, transfer, use,
occupancy, tenure, or enjoyment of the Property, nor shall covenantor itself or any person
claiming under or through it, establish or permit any such practice or practices of discrimination
or segregation with reference to the selection, location, number, use or occupancy of tenants,
lessees, subtenants, sublessees, or vendees in the Property.
Covenantor and its successors and assigns, shall refrain from restricting the rental
or lease(if permitted by Covenantor) or sale of the property on the basis of race, color, religion,
sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts
shall contain or be subject to substantially the follo Aing nondiscrimination or non segregation
clauses:
(a) In deeds: "The grantee herein covenants by and for himself or herself, his
or her heirs, executors, administrators and assigns, and all persons claiming under or through
them,that there shall be no discrimination against or segregation of, any person or group of
persons on account of race,color,religion, sex,marital status,national origin or ancestry in the
sale, lease, sublease,transfer, use, occupancy, tenure or enjoyment of the land herein conveyed,
"Exhibit D" to Loan Agreement
Page 3 of 9
4`a%Agree:Riv declaM31.23195
nor shall the grantee himself or herself or any person claiming under or through him or her,
establish or permit any such practice or practices of discrimination or segregation with reference
to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessee or
vendees in the land herein conveyed. The foregoing convenants shall run with the land."
(b) In leases: "The lessee herein covenants by and for himself or herself,
his or her heirs, executors, administrators and assigns, and all persons claiming under or through
him or her, and this lease is made and accepted upon and subject to the following conditions:
"There shall be no discrimination against or segregation of any person or
group of persons on account of race, color, religion, sex, marital status, ancestry or national
origin in the leasing, subleasing,transferring, use, occupancy, tenure or enjoyment of the premises
herein leased nor shall the lessee himself or herself, or any person claiming under or through him
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees,
subtenants or vendees in the premises herein leased."
(c) In contracts: "There shall be no discrimination against or segregation of,
any person, or group of persons on account of race, color, religion, sex, marital status, ancestry or
national origin, in the sale, lease, sublease,transfer, use, occupancy, tenure or enjoyment of the
premises, nor shall the transferee himself or herself or any person claiming under or through him
or her, establish or permit any such practice or practices of discrimination or segregation with
reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants,
sublessee or vendees of the premises."
Nothing in this Section 3 shall be construed to authorize the rental or lease
of the Property if such rental or lease is not otherwise permitted. The convenants in this
paragraph 3 shall run with the land in perpetuity.
4. Covenants Do Not Impair Lien. No violation or breach of the covenants,
conditions, restrictions, provisions or limitations contained in this Declaration shall defeat or
render invalid or in any way impair the lien or charge of any mortgage or deed of trust or security
interest.
5. Covenants For Benefit of City and Aaencx. All covenants without regard to
technical classification or designation shall be binding for the benefit of the Covenantee and the
City of Huntington Beach(the "City") and such covenants shall run in favor of the Covenantee
and the City for the entire period during which such covenants shall be in force and effect, without
regard to whether the Covenantee or the City is or remains an owner of any land or interest
therein to which such covenants relate. The Covenantee and the City, in the event of any breach
of any such covenants, shall have the right to exercise all the rights and remedies and to maintain
any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such
"Exhibit D"to Loan Agreement
Page 4 of 9
4Wkgree:Riv declarT3123.93
breach to which it or any other beneficiaries of these covenants may be entitled during the term
specified for such covenants, except the covenants against discrimination which may be enforced
at law or in equity at any time in perpetuity.
IN WITNESS WHEREOF, the Covenantee and Covenantor have caused this instrument
to be executed on their behalf by their respective officers hereunto duly authorized, this llthday
of April , 1995
C&EN
r Rivera
ebra L. Bu ess
APPROVED AS TO FORK{:
Agency Counsel
"Exhibit D"to Loan Agreement
Page 5 of 9
4�4\Agrce:Riv declu103/23P93
STATE OF CALIFORNIA )
} ss
COUNTY OF Orange )
On April 17th, 19955 before me, Linda J. Campbell
(name,title,e.g., "Jane Doe,Notary Public"),
personally appeared Victor Rivera and Debra L. Eurgess
(namc(s)of signer(s)),
X personally kro%vn to be--OR--
proved to me on the basis of satisfactory evidence
to be the person(s)whose namc(s)is/arc subscribed to the within instrument and acknowledged to me that
he/shchhey executed the sarre in hisAhcr/their authorized capacity(ies),and that by his/her/their signaturc(s)
on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the
instrument.
Witness my hand and official scat.
UNDA J.CAMPBELL.
to
°r'A''U°°ATMCALVOW.A (Si ture of Na ry)
orm• ;:"/ or c Expiras UEc.20.,ox�
Linda J. Campbell
CAPACITY CLAIMED BY SIGNER:
X Individual
Corporate Officer(s):
Titic(s)
Partner(s): Limited General
Attorney-in-Fact
Trustec(s)
Guardian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Pcrson(s)or Entity(ics) Victor Rivera and Debra L. Burgess
ATTENTION NOTARY: Although the information requested below is OPTIONAL,IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE Title or Type of Document Exhibit "D" to Loan Agreement
MUST BE ATTACHED
TO THE DOCUMENT Number of Pages q _
DESCRIBED Date of Document_APRIL 17, 1995
AT RIGHT: Signcr(s)Other Than Named Above:
"Exhibit D" to Loan Agreement
Page 6 of 9
4'alAV=-.Riv dodaeiO3r23:'95
STATE OF CALIFORNIA )
} ss
COUNTY OF )
On ,before me,
(name,title,e.g., "lane Doc,Notary Public"),
personally appeared
(name(s)of signer(s)),
personally kno%%m to be--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
helshclthcy executed the same in his/hcdtheir authorized capacity(ics), and that by hismcr/their signatures)
on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the
instrument.
Witness my hand and official seal.
(Signature of Notary)
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate 0fficer(s):
Titic(s)
Partncr(s): Limited General
Attorney-in-Fact
Trustec(s)
Guardian/Conscrvator
Other
SIGNER IS REPRESENTING:
Name of Pcrson(s)or Entity(ies)
ATTENTION NOTARY: Although the information requested below is OPTIONAL,IT
COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE Title or Type of Document
MUST BE ATTACHED
TO THE DOCUMENT_ Number of Pages
DESCRIBED Date of Document
AT RIGHT: Signer(s)Other Than Named Above:
"Exhibit W to Loan Agreement
Page 7 of 9
Cf A gce:R.iv dcclar'43123.195
STATE OF CALIFORNIA )
ss
COUNTY OF )
On before me,
(name,title,e.g.,"Jane Doc,Notary Public"),
personally appeared
(namc(s)of signer(s)),
personally kro%%n to be—OR—
proved to me on the basis of satisfactory evidence
to be the person(s)whose namc(s)is/are subscribed to the%Nithin instrument and acknowledged to me that
he/she/they executed the same in his/her/thcir authorized capacity(ics),and that by his/her/thcir signature(s)
on the instrument the person(s),or the entity upon behalf of which the person(s)acted,executed the
instrument.
Witness my hand and official seal.
(Signature of Notary)
CAPACITY CLAIMED BY SIGNER:
Individual
Corporate OfTicer(s):
Title(s)
Partncr(s): Limited General
Attorney-in-Fact
Trustee(s)
Guardian/Conservator
Other
SIGNER IS REPRESENTING:
Name of Pcrson(s)or Entity(ics)
ATTENTION NOTARY: Although the information requested below is OPTIONAL,IT
COULD PREVENT FRAUDULENT A'ITACHIMENT OF TIIIS CERTIFICATE TO ANOTHER
DOCUMENT.
THIS CERTIFICATE Title or Type of Document
MUST BE ATTACHED
TO THE DOCUMENT Number of Pages
DESCRIBED Date of Document
AT RIGIfr: Signer(s)Other Than Named Above:
"Exhibit D" to Loan Agreement
Page 8 of 9
C0A m:Rivdcclae43r23"IS
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
A condominium comprised of:
PARCEL I:
An undivided one twenty second(1122)fee simple interest as a tenant in common in and to all of
the Common Area defined in Declaration referred to below and described in the Condominium
Plan("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as
Instrument No. 94-0525335 of the Official Records of Orange County, over Lot 1 of Tract
No. 14828, in the City of Huntington Beach, County of Orange, State of California, as per map
filed in Book 706,Pages 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of
said County.
Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other_hydrocarbon
substances, as reserved in deed recorded August 16, 192I in Book 401, Page 356 of Deeds, and
in various other deeds of record.
PARCEL 2:
Unit No. 11 consisting of certain airspace and surface elements, as shown and described in the
Condominium Plan referred to in Parcel 1 above.
PARCEL 3:
Non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment,
support, maintenance, repairs and for other purposes, all as described in that certain Declaration
of Convenants, Conditions and Restrictions and Reservations of Easements for Pacific Park
Villas,recorded August 25, 1994 as Instrument No. 94-0525336 of Official Records.
PARCEL 4:
Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio
purposes, over the areas defined, depicted and assigned on the Plan.
"Exhibit D" to Loan Agreement
Page 9 of 9
CeAg wRivd=1"3/23M
EXIIIBTT E
DISCLOSURE STATEMENT
I1R'e Victor Rivera and Debra L. Burgess —("Applicant")understand and agree that
the provision of financial assistance from The Redevelopment Agency of the City of Huntington
Beach ("Agency")is conditional on 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.
• IAVe must pay at least 5 % of the home purchase price from our own funds.
• UWe must qualify for assistance under the guidelines of the Agency's Program.
• UWe as owners of the unit must occupy it for the entire term of the loan. If UWe rent the
unit to others, We will be in default of the Loan Agreement.
IJVVe further understand and agree that:
• I/We will be responsible for repaying the loan with five percent(5%) simple interest per
year at the time Uwe sell, transfer, refinance, or no longer occupy my/our home, or breach
any part of the Loan Agreement. The Annual Percentage Rate for this loan is five percent
(5%). The simple interest shall accrue each year, but is not required to be paid except as
described in the Loan Agreement.
• If within thirty(30)years from the date Uwe receive the Agency financial assistance, Uwe
sell or transfer the home I/we purchased under this Program to persons who are not
persons of low or moderate income or refinanze the lien of the deed of trust held by
my/our lender, Uwe will be obligated to pay the Agency a percentage share of the
difference between the price Uwe paid for the home and its value at the time of
such sale,
• transfer or refinancing. The Agency Loan is due upon sale,transfer or refinancing of the
unit.
• Me 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
The Redevelopment Agency of the
City of Huntington Beach
2000 Main Street
P.O. Box 190
Huntington Beach, California 92648
"Exhibit E"to Loan Agreement
Page I of 2
a,Agree:RivDiscl103/23195
• The Agency will not require me/us to make payments of principal or interest during the
term of the loan. The full balance of principal and interest will be due and payable when
the term of the loan expires. 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 home I/we
purchase with such assistance including, but not limited to, any loan fees or charges, any
charges for appraisals, or any escrow costs or other costs relating to the transfer of
property.
• The Agency cannot ensure that information provided by or on behalf of Applicant'Aill 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 Ihve
desire to be considered for the Program, and I/we will inform myself/ourselves as to the
availability and terms of other public or private loans.
• The Agency shall not be charged with knowledge of the contents of the documents of the
primary lender.
• The Agency financial assistance Uwe receive under this Program may be considered to be
income for purposes of federal or state income taxes and the Agency shall not be held
responsible for the payment of any taxes which I/we may incur by virtue of the receipt of
such financial assistance.
Dated: 1995 6IN '
ature of a "
icant
Dated: 1995
Signature of applicant
"Exhibit E" to Loan Agreement
Page 2 of 2
a s\Agree:RivDiscl%03/23/9 5
EXIIIBIT F
NOTICE OF RIGHT OF RESCISSION
Participant(s): VICTOR RIVERA and DEBRA L. BURGESS
Loan Amount: $35 000.00
Address of Residence_ . . 18061 Joyful Lane. #104. Huntington-Beach. CA 92648
Notice to Participant Required by Federal Law:
You have entered into a transaction on —/7- �_� _ [Date]which may result
in a lien, mortgage, or other security interest on your home. You have a legal right under federal
law to cancel this transaction, if you desire to do so, without any penalty or obligation within
three business days from the above date or any later date on which all material disclosures
required under the Truth in Lending Act have been given to you. If you so cancel the transaction,
any lien, mortgage, or other security interest on your home arising for this transaction is
automatically void. You are also entitled to receive a refund of any down payment or other
consideration if you cancel. If you decide to cancel this transaction, you may do so by notifying:
The Redevelopment Agency of the
City of Huntington Beach
2000 Main Street
P.O. Box 190
'Huntington Beach, California 92648
by mail or telegram sent not later than midnight of 11'a/- gS
(Date)
You may also use any other form of written notice identifying the transaction if it is delivered to
the above address not later than that time. This notice may be used for that purpose by dating and
signing below.
r
I hereby cancel this trap actio .
Xf 95-
(Date) (Participant's Signatuwvmve::O�
articipant's Signature)
"Exh;bit F"to Loan Agreement
Page 1 of 2
*sVkV=:RivN'otice of Righf O 23/9S
EFFECT OF RESCISSION. When a participant exercises his right to rescind under paragraph
(a)of this section, he is not liable for any finance or other charge, and any security interest
becomes void upon such a rescission. Within I0 days after receipt of a notice of rescission, the
creditor shall return to the participant any money or property given as earnest money, down
payment, or otherwise, and shall take any action necessary or appropriate to reflect the
termination of any security interest created under the transaction. If the creditor has delivered any
property to the customer, the customer may retain possession of it. Upon the performance of the
creditor's obligations under this section, the customer shall tender its reasonable value. Tender
shall be made at the location of the property or at the residence of the customer, at the option of
the customer. If the creditor does not take possession of the property within 10 days after tender
by the customer, ownership of the property vests in the customer without obligation on his part to
pay for it.
ACKNOWLEDGMENT OF RECEIPT OF TWO COPIES OF NOTICE
Each of the undersigned hereby acknowledges receipt of two completed copies of this Notice.
Participant's Signature Date Participant's Signature Date
"Exhibit F" to Loan Agreement
Page 2 of 2
4-sV0 t:RivtiolioeorRigh11iY3f23195
EXHIBIT G
EXPIRATION OF RESCISSION PERIODS
(Truth in Lending-Real Estate and Home Improvement Loans)
Participant(s): Victor Rivera and Debra L.. Burgess
Loan Amount: $35,000.00
Address of Residence: 19061 Joyful Lane.#104,Huntington Beach.CA 92649
In connection with the agreement of The Redevelopment Agency of the City of Huntington Beach
to make the Loan,which will be secured by a deed of trust on the residence at the above address,
each of the undersigned hereby represents as follows:
I. The undersigned understands the terms of this Expiration of Rescission Periods
Agreement and its attachments.
2. The Redevelopment Agency of the City of Huntington Beach has agreed, subject only to
the occurrence of certain conditions, to make the Loan and has delivered to each
undersigned a Disclosure Statement setting forth the terms of the Loan and a Notice of
Right of Rescission advising each undersigned of their right to rescind and cancel said
transaction in accordance with the Truth in Lending Act on or before the date the
undersigned has executed this document.
3. Prior to the date shown above, no proceeds of the Loan have been disbursed to or for the
benefit of any of the undersigned.
4. None of the undersigned have canceled or rescinded the Loan nor have any of the
undersigned notified The Redevelopment Agency of the City of Huntington Beach of any
intention to cancel or rescind the Loan.
The undersigned request the Redevelopment Agency of the City of Huntington Beach to proceed
'th the Loan in reliance upon the foregoing representations.
4- 11-q.� (Div
\, ;�I, d-gw �,[I-L/--.-)
Participant's Signature Date Pa?t'rcipant's iowignai&c Date
"Exhibit G" to Loan Agreement
Page 1 of I
,CAA roe.Ri�ExpiruionW3.a3/95
LaiJ
jnsurance o oration
NATIONAL IIEAI ARTERS
1992 ALTA RICHMOtiQ VIRGINIA Loan Policy Number
Loan Policy 135-00- 315-913
SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTION'S FROGS COVERAGE CONTAINED 1.4 SCHEDULE B AND THE
CONDITIONS AND STIPULATIONS, LAWYERS TITLE INSURANCE CORPORATION, a Virginia corporation, herein called the Company,
insures,as of Date of Policy shown in Schedule A.against loss or damage,nok exceeding the Amount of Insurance stated in Schedule A,sustained
or incurred by the insured by reason of:
1. Title to the estate or interest described in Schedule"A being Nested (a)`arising from an improvement or work related to the land which
otter than as stated therein; _ " I., 1-
, .v. Is contracted for or commenced prior to Date of Policy; or
2. Any defect in or lien or encumbrance on the title; I 1 � 4
,V J(b) arising from an improvement or work related to the land which
3. Unmarketability of the title; _ ': '.:.' is contracted for or commenced subsequent to Date of Policy and
4. Lack of a right of access to and from the land; which is financed in whole or in part by proceeds of the
5. The invalidity or unenforceability of the lien of the insured mortgage indebtedness secured by the insured mortgage which at Date of
uFon the title: 1 ;', � Polity the insured has advanced or is obligated to advance;
fk The priority of any lien or encumbrance over the lien of the insured The—invalidity or unenforceability of any assignment of the insured
motgage; '` rortgage,provided the assignment is shown in Schedule A. or the
7. Lack of priority of the lien of the insured mortgage over any statutory t ' failure of the assignment shown in Schedule A to vest title to the insured
lien for services, labor or material: T ,_..mortgage in Oe 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 oily to the extent provided in the Conditions and Stipulations.
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 govrmmental regulation(including but not (e) resulting in loss or damage which would not have been sustained
limited to building and zoning laws, ordinances or regulations) if the insured claimant had paid value for the insured mortgage.
restricting,regulating,prohibiting or relating to(i)the occupancy, 4 Unenforceability of the lien of the insured mortgage because of the
use or enjoyment of the land; (ii) the character, dimensions or
location of any improvement now or hereafter erected on the land; inability or failure of the insured at Date of Policy, or the inability
(iii)a separation in ownership or a change in the dimensions or or failure of any subsequent owner of the indebtedness,to comply with
area of the land or any parcel of which the land is or was a part; applicable doing business laves of the state in which the land is situated.
or(iv)environmental protection,or the effect of any violation of 5. Invalidity or unenforceability of the lien of the insured mortgage,or
these laws,ordinances or governmental regulations,except to the claim thereof, which arises out of the transaction evidenced by the
extent that a notice of the enforcement thereof or a notice of a insured mortgage and is based upon usury or any consumer credit
defect,lien or encumbrance resulting from a violation or alleged protection or truth in lending law
violation affecting the land has been recorded in the public records
at Date of Policy. & Any statutory lien for services, labor or materials (or the claim of
(bl Arry governmental police power not excluded by(a)above,except priority of any statutory lien for services,labor or materials over the
to the extent that a notice of the exercise thereof or a notice of lien of the insured mortgage)arising from an improvement or work
a defect,lien or encumbrance resulting from a violation or alleged related to the land which is contracted for and commenced subsequent
violation affecting the land has been recorded in the public records to Date of Policy and is not financed in whole or in part by proceeds
at Date of Policy. of the indebtedness secured by the insured mortgage which at Date
2. Rights of eminent domain unless notice of the exercise thereof has been of Policy the insured has advanced or is obligated to advance.
recorded in the public records at Date of Policy.but not excluding from 7 Any claim, which arises out of the transaction creating the interest
coverage any taking which has occurred prior to Date of Policy which of the mortgagee insured by this policy, by reason of the operation
would be binding on the rights of a purchaser for value without of fodcral bankruptcy,state insolvency or similar creditors'rights laws,
knowledge, that is based on:
3. Defects, liens, encumbrances, adverse claims or other matters: (a) the transaction cresting the interest of the insured mortgagee being
(a) created,suffered,assumed or agreed to by the insured claimant; deemed it fraudulent conveyance or fraudulent transfer; or
(b) not known to the Company, not recorded in the public records (b) the subordination of the interest of the insured mortgagee as a result
at Date of Policy, but known to the insured claimant and not of the application of the doctrine of equitable subordination;or
disclosed in writing to the Company by the insured claimant prior
to the date the insured claimant became an insured under this (e) the transaction creating the interest of the insured mortgagee being
policy; deemed a preferential transfer except where the preferential transfer
(c) resulting in no loss or damage to the insured claimant; results from the failure:
(d) attaching or created subsequent to Date of Policy (except to the (i) to timely record the instrument of transfer; or
extent that this policy insures the priority of the lien of the insured (ii) of such recordation to impart notice to a purchaser for value
mortgage over any statutory lien for services,labor or material);or or a judgment or lien creditor.
1
Rdbcy 135•Lidw in U.S.A.
061-4135.0006 Cover Sheer ALTA loon MKy p0.17.9.'1
CONDITIONS AND STIPULATIONS
1 DEFINITION OF TERMS 3 NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT
The following terms when used in this policy mean The insured shall notify the Company promptly in writing (i) in case of
(a) insured the insured named n Schedule A The term insured any litigation as set forth in Section 4(a) below (ii) in case knowledge shall
also includes come to an insured hereunder of any claim of title or interest which is adverse
(i) the owner of the indebtedness secured by the insured mortgage to the title to the estate or interest or the lien of the insured mortgage as in
and each successor in ownership of the indebtedness except a successor sured and which might cause loss or damage for which the Company may
who is an obligor under the provisions of Section 12(c)of these Conditions be liable by virtue of this policy or(in) if title to the estate or interest or the
and Stipulations(reserving however all rights and defenses as to any suc lien of the insured mortgage as insured is rejected as unmarketable If prompt
cessor that the Company would have had against any predecessor insured notice shall not be given to the Company then as to the insured all liability
unless the successor acquired the indebtedness�s a purchaser for value of the Company shall terminate with regard to the matter or matters for which
without knowledge of the asserted defeat lien encumbrance adverse claim prompt notice is required provided however that failure to notify the Com
or other matter insured against by this policy as affecting title to the estate pany shall in no case prejudice the rights of any insured under this policy
or interest in the land) unless the Company shall be prejudiced by the failure and then only to the
(u) any governmental agency or governmental instrumentality which extent of the prejudice
is an insurer or guarantor under an insurance contract or guaranty insuring 4 DEFENSE AND PROSECUTION OF ACTIONS DUTY OF INSURED
or guaranteeing the indebtedness secured by the insured mortgage or any CLAIMANT TO COOPERATE
part thereof whether named as an ins fired herein or not (a) Upon written request by the insured and subject to the options
(iii) the parties designated in Section 2(a)of these Conditions and contained in Section 6 of these Conditions and Stipulations the Company
Stipulations at its own costand without unreasonable delay shall provide for the defense
(b) insured claimant an insured claiming loss or damage of an insured in litigation in which any third party asserts a claim adverse to
(c) knowledge or known actual knowledge not constructive the title or interest as insured but only as to those stated causes of action
knowledge or notice which may be imputed to an insured by reason of the alleging a defect lien or encumbrance or other matter insured against by
public records as defined in this policy or any other records which impart this policy The Company shall have the right o select counsel of its choice
constructive notice of matters affecting the land (subject to the right of the insured to object for reasonable cause)to repre
(d) land the land described or referred to in Schedule A and sent the insured as to those stated causes of action and shall not be liable
improvements affixed thereto which by law constitute real property The term for and will not pay the fees of any other counsel The Company will not pay
land does not include any property beyond the lines of the area described any fees costs or expenses incurred by the insured in the defense of those
or referred to in Schedule A nor any right title interest estate or easement causes of action which allege matters not insured against by this policy
in abutting streets roads avenues alleys lanes ways or waterways but nothing (b) The Company shall have the right at its own cost to institute and
herein shall modify or limit the extent to which a right of access to and from prosecute any action or proceeding or to do any other act which in its opinion
the land is insured by this policy may be necessary or desirable to establish the title to the estate or interest
(e) mortgage mortgage deed of trust trust deed or other security or the lien of the insured mortgage as insured or to prevent or reduce loss
instrument or damage to the insured The Company may take any appropriate action
(0 public records records established under state statutes at Date of under the terms of this policy whether or not it shall be liable hereunder and
Policy for the purpose of imparting constructive notice of matters relating to shall not thereby concede liability or waive any provision of this policy ff the
real property to purchasers for value and without knowledge With respect Company shall exercise its rights under this paragraph it shall do so diligently
to Section 1(a)(iv)of the Exclusions From Coverage public records shall` (c) Whenever the Company shall have brought an action or interposed
also include environmental protection liens filed in the records of the clerk defense as required or permitted by the provisions of this policy the Com
of the United States district court for the district in which the land is located pany may pursue any litigation to final determination by a court of competent
(g) unmarketability of the title an alleged or apparent matter jurisdiction and expressly reserves the right in its sole d scretion to appeal
affecting the title to the land no excluded or excepted from coverage which from any adverse judgment or order
would entitle a purchaser of the estate or interest described in Schedule A (d) In all cases where this policy permits or requires the Company to pro
or the insured mortgage to be released from the obligation to purchase by secute or provide for the defense of any action or proceeding the insured
virtue of a contractual condition requiring the delivery of marketable title shall secure to the Company the right to so prosecute or provide defense
2 CONTINUATION OF INSURANCE in the action or proceeding and all appeals therein and permit the Com
(a) After Acquisition of Title The coverage of this policy shall continue pany to use at its option the name of the insured for this purpose Whenever
in force as of Date of Policy in favor of(i)an insured who acquires all or any requested by the Company the insured at the Company s expense shall
part of the estate or interest in the land by foreclosure trustees sale con give the Company all reasonable aid(i)in any action or proceeding securing
veyance in lieu of foreclosure or other legal manner which discharges the evidence obtaining witnesses prosecuting or defending the action or pro
lien of the insured mortgage (u)a transferee of the estate or interest soacquired ceeding or effecting settlement and(u)in any other lawful act which in the
from an insured corporation provided the transferee is the parent or wholly opinion of the Company may be necessary or desirable to establish the title
owned subsidiary of the insured corporation and their corporate successors to the estate or interest or the lien of the insured mortgage as insured If the
by operation of law and not by purchase subject to any rights or defenses Company is prejudiced by the failure of the insured to furnish the required
the Company may have against any predecessor insureds and(iii)any govern cooperation the Company s obligations to the insured under the policy shall
mental agency or governmental instrumentality which acquires all or any part terminate including any liability or obligation to defend prosecute or con
of the estate or interest pursuant to a contract of insurance or guaranty insur tinue any litigation with regard to the matter or matters requiring such
mg or guaranteeing the indebtedness secured by the insured mortgage cooperation
(b) After Conveyance of Title The coverage of this policy shall continue 5 PROOF OF LOSS OR DAMAGE
in force as of Date of Policy in favor of an insured only so long as the insured In addition to and after the notices required under Section 3 of these Con
retains an estate or interest in the land or holds an indebtedness secured ditions and Stipulations have been provided the Company a proof of loss
by a purchase money mortgage given by a purchaser from the insured or or damage signed and sworn to by the insured claimant shall be furnished
only so long as the insured shall have liability by reason of covenants of war to the Company within 90 days after the insured claimant shall ascerta n the
ranty made by the insured in any transfer or conveyance of the estate or in facts giving rise to the loss or damage The proof of loss or damage shall
terest This policy shall not continue in force in favor of any purchaser from describe the defect in or hen or encumbrance on the title or other matter
the insured of either(i)an estate or interest in the land or(ii)an indebtedness insured against by this policy which constitutes the basis of loss or damage
secured by a purchase money mortgage given to the insured and shall state to the extent possible the basis of calculating the amount
(c) Amount of Insurance The amount of insurance after the acquisition of the loss or damage If the Company is prejudiced by the failure of the in
or after the conveyance shall in neither event exceed the least of sured claimant to provide the required proof of loss or damage the Com
(i) the Amount of Insurance stated in Schedule A pany s obligations to the insured under the policy shall terminate including
(ii) the amount of the principal of the indebtedness secured by the any liability or obligation to defend prosecute or continue any htiga ion with
insured mortgage as of Date of Policy interest thereon expenses of foreclosure regard to the matter or matters requiring such proof of loss or damage
amounts advanced pursuant to the insured mortgage to assure compliance In addition the insured claimant may reasonably be required to submit
with laws or to protect the lien of the insured mortgage prior to the time of to examination under oath by any authorized representative of the Company
acquisition of the estate or interest in the land and secured thereby and and shall produce for examination inspection and copying at such reasonable
reasonable amounts expended to prevent deterioration of improvements but times and places as may be designated by any authorized representative
reduced by the amount of all payments made or of the Company all records books ledgers checks correspondence and
(iii) the amount paid by any governmental agency or governmental memoranda whether bearing a date before or after Date of Policy which
instrumentality if the agency or instrumentality is the insured claimant in the reasonably pertain tothe loss or damage Further if requested by any author
acquisition of the estate or interest in satisfaction of its insurance contract or ized representative of the Company the insured claimant shall grant its per
`guaranty mission in writing for any authorized representative of the Company to
continued on next page of cover sheet
LAWYERS ITLE INSURANCE ORPORATION
National Headquarters
Ricbnnd Virginia
AMERICAN LAND TITLE ASSOCIATION
L 0 A N P O L I C Y 1 9 9 2
Issued At Continental Lawyers Title Company
1015 North Main Street Santa Ana, California 92701
SCHEDULE A
------------------------------------------------------------------------------------------------
ORDER POLICY AMOUNT OF PREMIUM DATE OF POLICY
NUMBER NUMBER INSURANCE
------------------------------------------------------------------------------------------------
9402211-A 135-00-315-913 $35 000 00 $150 00 04/26/95 at 8 00 am
1 NAME OF INSURED
The Redevelopment Agency of the City of Huntington Beach a public body corporate and
politic
2 THE ESTATE OR INPIIREST IN THE LAND WHICH IS COVERED By THE INSURED NDRTGAGE IS
A CONDOMINIUM as defined in Section 783 of the California Civil Code, in fee
3 TITLE TO THE ESTATE OR INTEREST IN THE LAND IS VESTED IN
Victor Rivera and Debra L Burgess husband and wife as joint tenants
4 THE INSURED MORTGAGE AND ASSIGNMENTS THEREOF IF ANY ARE DESCRIBED AS FOLLOWS
A Deed of Trust to secure an indebtedness in the amount shown below and any
other obligations secured thereby
Amount $35 000 00
Dated April 11 1995
Trustor Victor Rivera and Debra L Burgess
Trustee The City of Hunter Beach a municipal corporation
Beneficiary The Redevelopment Agency of the City of Huntington Beach, a
public body corporate and politic
Recorded April 26 1995
Instrument No 95-0173370 of Official Records
I
ALTO LOAN POLICY - 195,..J
z
Policy No.:135-00-315-913 Order No.: 9402211-A
SCHEDULE A CONTINUED
5. THE LMM RF 'ERRED TO IN T111S POLICY IS DEMUMM AS F WWS:
A Condominium comprisad of:
PARCEL 1:
An undivided one twenty second (1/22) fee side interest as a tenant in owum in
and to all of the Common Area defined in DE3claratien referred to below and described
in the Ccndaniniun Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was
recorded on August 25, 1994 as Instrument No. 94-0525335 of Official Records of
Orange County, over Lot 1 of Tract No. 14828, in the City of Huntington Head, County
of Orange, State of California, as per map filed in Boric 706, Pages 27 to 29 of
Miscellaneous Maps, in the office of the county Recorder of said Canty.
EXcepting therefrcan all oil, petroleum, aprahaltun, gas, minerals and other
frJuIccal substances, as reserved in deed reworded August 16, 1921 in Hods 401,
Page 356 of Deeds, and in various other deeds of record.
PARCEL 2:
U-Lit No. 11 consisting of certain airspace and surface elements, as shown and
described in the Condominium Plan referred to in Parcel 1 above.
PARCEL 3:
Non-excluisive easements for aaaess, ingress, egress, use, en jgment, drainage,
enc r oachrr support, maintenance, repairs and for other purposes, all as described
in that certain Declaration of Covenants, Conditions and Restrictions and Reservation
of Easements for Pacific Park Villas, recorded August 25, 1994 as Instrument No.
94-0525336 of Official Records.
PARCEL, 4:
RKclusive easements appurtenant to Parcels 1 and 2 referred to above, for baloany cr
patio purposes, over the areas defined, depicted and assigned on the Plan.
ALTs,,,/ LOAN POLICY — 19
POLICY N0.:135-00-315-913 aMER NO.: 9402211-A
SQ EMULE B
PART I
EXCEPrIONS F RM OORTFRMZ
THIS POLICY DOES NOT INSURE AGLUW LOSS OR DAM M (AND THE CMPANY WILL NOT
PAY COSTS, Ate' FEES OR EXPENSES) UnCH ARISE BY FdMSGN OF:
A. Property taxes, including general and special taxes, personal property taxes,
if any, and any assesmezts collected with taxes, to be levied for the fiscal
year 1995-1996 which are a lien not yet payable.
D. Supplemental or escaped assessments of property taxes, if any, assessed
pursuant to the Revenue and Taxation Cock:, of the State of California.
1. The matters aontai od in a document entitled "Memorandem of Disposition and
Development Agreement" recorded January 3, 1994 as Instrument No. 94-0001007
of Official Records.
Reference is made to said document for full particulars.
2. The fact that the otwership of said land does not include rights of access to
or from the street cc highway abuttirg said lam, such rights havirg been
relinquished by the map of said Tract.
Affects: Talbert Avenue; Joyful Lane and Happy Drive
Except at street intersections and approved driveway locations.
3. Covenants, conditions and restrictions (deleting therefrom any restrictions
based an race, color or creed) as set forth in the document
Recorded: February 24, 1994
Instrument No. 94-0137068 of Official Records
Said covenants, Conditions and restrictions provide that a violation thereof
shall not defeat the lien of any mortgage or deed of trust made in good faith
and for value.
4. Matters in an Instrument which, among other things, contain or provide for
Assessments, Liens and the subordination thereof, provisions relating to
Partition, Restrictions on severability cf Component Interests, Covenants,
Conditions and Restrictions, a provision that no violation thereof and no
enforoenent of any Lien provided for herein shall defeat or render invalid the
Lien of a Mortgage or Deed of Trust made in good faith and for value, but
which however, do not Contain Restrictions based on race, color or creed.
Recorr3ed: Fargus-t 25, 1994
Instrument No. 94-0525336 of Official Records
OFOM NO.: 9402211-A
SCHEDULE B
(PART I OOPflMVM)
5. The matters contained in a document entitled "Oommon Facilities Use and Maintenance
Agreement For Pacific Park Villas" re= led August 25, 1994 as Instvent No.
94-0525337 of Official Records.
Reference is made to said document for full particulars.
6. An easement for the purpose shown below and rights irridental thereto as set forth
in a docamrmt
Granted to: Southern California Edison Company
Purpose. Public utilities
Recorded: October 27, 1994
Instrument No. 94-0632840 of Official Records
Affects: the Southerly 50 feet of the Easterly 4 feet of Lot 1
7. Cm enants, conditions and restrictions (deleting therefrom any restrictions based
on race, oolor or creed) as set forth in the document
Recorded: April 26, 1995
Instrument No. 95-0173371 of Official Records
A Deed of Tnist to secure an indebtedness in the amount shown below, and any other
obligations secured thereby
Amount: $163,550.00
Dated: April 3, 1995
Truster: Victor Rivera and Debra L. Buzgess, husband and wife
Trustee: Equitable Deed Comppaw, a California corporation
Beneficiary: Bank of America National Trust and Savings Association
Rocorded: April 26, 1995
Instrument No. 95-0173369 of Official Records
EMORSENEM
The followiryg endorsements are attached to and made a part of this policy:
100
110.9
115
116.2
tb
Date typed: 05/04/95
Plats enclosed
kwo
ALTA LOAN POLICY - 1992
POLICY NO.: 135-00-315-913 ORDER NO.: 9402211-A
SCHEDULI. B
PART II
IN AMITICH TO THE MATTERS SET FCRTH IN PART I OF THIS SaMXLE, THE TITLE TO THE
ESTATE OR INTEREST IN THE LAND DE MUBM OR RE=MM TO IN SaMWLE A IS SUBJECT
TO THE FOLUMING MATTERS, IF ANY BE SHfJ6,aJ, UM THE M4PANY INUW THAT THESE
MATTERS ARE SMMLNATE TO THE LIEN OR 01ARGE OF THE INSURED NMG GE UPCN THE
ESTATE OF; INTO=:
WOKE
ENDORSEMENT
LAWYER, TITLE INSURANCE I�OFtATION
CLTA FORM 100 Order No.: 9402211-A
Attached to Policy No.: 135-00-315-913
The Company hereby insures against loss which said Insured shall sustain by
reason of the following matters:
1. Any ircorrectness in the assurance which the Company gives:
a. That there are no covenants, condition`;, orrestrictions under which the lien
of the mortgage referred to in Schedule A can be cult off, subordinated, or otherwise
impaired;
b. That there are no present violations cn said land of any enforceable
m-ermts, conditions, or restrictions;
c. That, except as &pawn in Schedule B, tirme are no 111LOUXis of buildings,
structures, or improvements located on said land onto adjoining lards, n= arty
encroachments onto said land of buildings, stnictures, or improvements located on
adjoining lands.
2. a. Any future violations on said land of any covenants, conditions, or re-
strictions occurring prior to acquisition of title to the estate or interest referred
to in Schedule A by the Insured provided such violations result in impaixmemrt or loss
of the lien of the mortgage referred to in Schedule A, or result in impairment or loss
of the title to the estate or interest referred to in Schedule A if the Insured shall
acquire such title in satisfaction of the indebtedness secured by the insured mortgage;
b. Lhmarketability of the title to the estate or interest referred to in Schedule
A by reason of any violations on said land, occurring prior to acquisition of title to
estate or interest referred to in Schedule A by the insured, of any covenants,
corditiazs or restrictions.
3. Danmage to existing hipr v cents, including lawns, shrubbery or trees:
a. which are located or encroach upon that portion of the land subject to any
easement shown in Schedule B, which damage results from the exercise of the right
to use or maintain such e.asament for the purpa=*-s for which the same was granted or
reserved.
b. resulting from the exercise of any right to use the surface of said land for
the extraction or development of the minerals excepted from the description of said
lamed or shown as a reservation in Schedule B.
4. Any final court order or judgment requiring removal from any land adjoining the
land of any encroachment shown in Schedule B.
V&exever in this endorsement any or all the words "covenants, caadi.tians, or
restrictions" appear, they shall not be deemed to reefer to or include the terms covenants
and conditions contained in any lease refereed to in Schedule A.
Far purposes of this endorsement, the words "covenants", "conditions" or
"restrictions" shall not be deemed to refer to or include any covenants, conditions
or restrictions relating to environmental protection, except to the extent that a
notice of violation or alleged violataion affecting the land has been recorded in the
public records at Late of Policy and is not excepted in Schedule B.
This endarssment is nude a part of the policy and is subject to all of the terms
and provisions thereof and of any prior er�dorsernrmts thereto. Except to the extent
expressly stated, it neither modifies any of the terms and provisions of the policy
and any prior endorsements; nor does it extend the effective date of the policy
and arty prior endorsements, nor does it increase the face amount thereof.
IN WITNESS WEREOF, the Company has caused this Endorsement to be signed, to be valid
when countersigned by an authorized officer or agent of the Company, all in accordance
with its By-Laws.
Date: April 26, 1995
Issued at: Santa Ana, California IADPnM TITLE INSURANCE OOFUUMTION
amtersited: � Janet A. Alpert - President
Authorized officer or Agent John M. Carter - Secretary
ENDORSEMENT
LAWYERS TITLE I NSUPANC;E CORPORATION
CLTA FaN 110.9 Order No.: 9402211 A
Attached to Policy No.: 135-00-315-913
ThE insurance afforded by this endorsement is only effective if the land is used
or is to be used primarily for residential purposes.
The Copany insures the insured against loss or damage sustained by reason of lack
of priority of the lien of the inured mortgage. over:
(a) any enw.ronmntal protection lien which, at Date of Policy is
recorded in those records established Linder state statutes at
Date of Policy for the purpose of inparti*g constructive notice
of matters relating to real property to purchasers for value
and without knowledge, or filed in the records of the clerk of
the United States District Court for the district in which the
land is located, except as set forth in Schedule B; or
(b) any envirnrnr_ntal protection lien provided for by any state
statute in effect at Date of Policy, except environmental
protection liens provided for in the following state statutes:
NONE
This ant is made a part of this policy and is subject to all of the terms
and provisions thereof, and of any prior endor-.xments thereto. Except to the extent
expressly stated, it neither modifies any of the terms and provisions of the policy
and any prior endorsements, nor does it extend the effective date of the policy and
any prior endorsements, nor does it increase the face wKxmt thereof.
IN WITNESS MIEREOF, the Company has caused this Endorsement to be signed, to be valid
when countersigned by an authorized offices or agent of the Company, all in accordance
with its By-Laws.
IJ94YERS TITLE 116UPANCE CORPORATION
Countersigned by:
Janet A. Alpert - President
John M. Carter - Secretary
Is,Cuaed at: Santa Ana, California
ENDORSEMENT
LAWYERS TITLE IPA XUV4 E C Fd3ORTION
CLTA FOW 115 Order No.: 9402211 A
Attached to Policy No.: 135-00-315-913
The Cmpany assures the Insured
Ttn Rxk, cWmt Agency of the City of Huntir� Beams, a public body corporate and
politic
that the estate or interest described in Schedule A is a condominium as defined in
Section 783 of the California Civil Code, in fee, and as such is entitled to be
assessed and taxed as a separate parcel.
Tho Cm any hereby insures said Assured against loss, which said Assured shall sustain
in the event that the assurances made hexein shall prom to be incorrect.
The total liability of the Canpany under said policy and any endorseamts therein shall
not exceed, in the aggregate, the face amount of said Policy and oasts which the Company
is obligated under the conditions and stipulations thereof to pay.
This endorsement is made a part of said policy and is subject to the schedules, ccrxU-
ticns and stipulations contained therein, except as modified by the provisions hereof.
IN WITNESS WH=F, the Ooipany has cause this endorsement to be signed, to be valid
when countersigned by an authorized officer or agent of the Company, all in accordance
with its By-Laws.
LAWYERS TITLE IIqSURANC E OOiRPORATIM
Camtessigned by:
Janet A. Alpert - President
Jahn M. Cortez - Secretary
Issued at: Santa Ana, California
ENDORSEMENT
LAWYERS TITLE INSUP-AN E )RATION
C LTA FUN 116.2 Order No.: 9402211-A
Attached to Policy No.: 135-00-315-913
The Cm pany assures the insured that at the date of this Policy the dimensions of the
exterior boundary Of the Cointmon. Area referred to in Schedule A of this Policy which is
also the exterior boundary of the project, axe correctly shown on that snap recorded in
book 706, pages 27 to 29 of Mans in the office of the County Rewarder of said County.
The CxPany further assures the Insured that the estate in said land referred to in
Schedule A includes a residence within the project boundaries, which residence is
designated as Unit 11, as shown on the map raocrded August 25, 1994 as Instrument No.
94-0525335, Official Records of Corhdominiums in the office of the County Recorder of said
County,
and known as:
18061 Joyful Iane #104
Huntington Beach, California
The Company hereby insures the Insured against loss which said Insured shall sustain
in the event that the assaranoe herein shall prove to be incorrect.
The total liability of the Carpany urx3er said policy and any endorsements therein shall
not exceed, in the aggregate, the face amount of said Policy and costs which the Om parry
is obligated uxler the conditions and stipulations thereof to pay.
This endorsement is made a part of said policy and is subject to the schedules, condi-
tions and stipulations therein contained.
IN WITNESS WM DQF, the Cmmpany has caused this erx3ors ht to be signed, to be valid
whan eomtersigned by an authorized officer ar agent of the Company, all in accordance
with its By-laws.
LAWYERS TITLE INSURANCEiPWATICN
Contersigned by:
Janet A. Alpert - President
�« John M. Carter - Secretary
Issued at: Santa Ana, California
r
w•
r
SHEET 10 Of 32 ti
CONDOMINIUM PLANS FOR •
_r r
L07 1 OF TRACT 14525. IN THE CITY CF FHUNTINGTON BEACH. COUNTY OF ORANCC. .
STATE OF CALIFORNIA. AS SHOVON ON A MAP RECORDED IN IIAP BOCK 705.
PACES 27 THROUGH 29. I14CLVSVE+ CF 1MISCELLAKOUS YAPS` 01 THE OFF1CC _
OF THE RECOROER OF SAIO COUNTY. • 3:
PHASE ONE OF PACIFIC PARK VILLAS
CURVE DATA
CURVE DELTA RADIUS LENGTH TANGENT
15'33'30' 327.00' 66.60' 44.157'
2 15`3�26' 273.00' 74.21' 37.33' '
3 E975210* 210T 36.08' 22.9T
4 0
3
'5 36: 327.00' 33.54' 16.78'
3 15 34'15 "JQO.00. 81.ST 41.02'
fi 1 S 33'3V 300.00' 81.46' 40.96'
05*31'01' 327.W 4&51' 24.35'
09'40'34' 321.00' M26' 27.69'
MONUMENT NOTES
1. 1 INDICATES FOUND MONUIMCHTS AS NOTED
2. ■ INDICATES FOUND SPIKE AND WASHER NO TAG. NO
REF. HELD TO CSTA13US+H THE CENTERUNES Or AXLY
LANE. HAPPY DRIVE. ANO .JOYFUL LANE REPLACED WITH SPIKE
AND WASHER TAGGED LS 5744,
3. 0 INDICATES 2' IP U=D L S. 5749 OR SPIKE AND WASHER �
7ACCE0 L.S. 5749 OR LEAS AND TACK TAGGED L.S. 5749
TO BE SET BEFORE THE RECOROATION OF THIS MAP.
4. G INDICATES a' SPocE & wAS►HER STAIMM LS. 3742 TO DC SET
VAT•IIN 90 DAYS AFTER ACCEPTANCE OF IMPROVEMENTS
>f
JO6 Na 4285
HALL 1:ORIEWANH IMC.
CONDOMINIUM PLANS FOR SHEET 11 CIF '2
LOT t OF TRACT :4628. IN TKE C2TY OF HUN iiNCTON BEACH. COUNTY Or ORANCE.
STATE OP CAUFORNIA. AS SHOwN ON A YAP RECORDED IN MAP COOK 706.
PACES 27 THROUCK 29. INCLUSIVE. OF UISC.tLAKEOUS MAPS. th ThE OFFICE
OF THE RECORDER OF SAJD COUNTY.
PHASE ONE OF PACIFIC PARK VILLAS
4
22 17
21 20 19 18 1s
1.00' (TIV104) KT Koo u.r3
a
8 63ASi'
M 63.19'
9 11 12 13 14
10 15
3
0
n
4 5
3 6
WW
n
2 �'.8� 8
oz=v
60.41' 25.00' 57.64'
SCALE: 1"=40'
%0WIN NNSO VOC,m LOMA U%U Wt
..ou W^40 MIC+ns wu W.Q u•t
"'°K`�" '�`ASSOCIATION PROPERTY, • nK •�
UNI NUMBERS & TIES "sow °""w "r "mums "n''°"
JOB NO. .2as
HALL h FOREMAN. INQ
t.,. w .V
r
CONDOMINIUM PLANS FOR SHEET 15
OF 32
LOT 1 OF TRACT 1028. IN THE CITY OF HUN nNCTOH BEACH. COUNTY OF CRANCE.
STATE OF CAUFORNIA. AS SHOYM ON A MAP RECORDED IN YAP BOOK 706.
PACES 27 rmROUCH 29. INCLUSIVE. OF MISCELLANEOUS MAPS. IN rmE OFFICE
OF THE RECORDER OF SAID COUNTY.
PHASE ONE OF PACIFIC PARK VILLAS
GARAGE LEVEL
UNIT 11
UNIT 13
UNIT 19
—�ar
II 1 STAIRS
II � II
It 1
Ir�QI�a.• Ir
K11
II '•
II "• !r '
—'ZT a�• II
rl 2
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1.4'
p 11
lASrLWC
r--.� l4ICATC3 IiM Or b[]tACAL
VAMAAONS PlDt SECIMS
SCALE 1"-10'
SEE Siia S 29-31 /OR SECflONS AND ELEVAHpr1 Joe NO. 42e35
HALL at F004£UAN ING
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SHEET 19 2%r
Cr 32
CONDOMINIUM PLANS FOR
LOT 1 Or TRACT 1482a. IN THE CITY Or HUNTINCTON BCACH. COUNTY OF ORAIYCE.
STATE OF CALIFORNIA. AS SHOWN ON A MAP RECORDED IN MAP BOOK 706,
PACES 27 THROUGH 29. INCLUSIVE. Or MISCELLANEOUS RAPS,. tH THE OMCE
Or THE RECORDER OF SA1O COUNTY. 3.
PHASE ONE OF PACIFIC PARK VILLAS
1ST LEVEL
UNIT 11
• UNIT 13
I.Y t.0• ATIOd P
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its.
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—Z s s• vow-Ans Mors or vmm
VANAVN1►M SECTIONS 7p
SCALE 1'=10' I —_
II --_
SEE SKEETS 26-31 r0R 3tOM49 ANo tUvAR0111� JOB NO. 4285
HALL k FOREMAN, INC.
CONDOMINIUM PLANS FOR SHEET 23 OF a
LOT 1 of TRACT 14a2e. IN THE OTY Of HUNTUIGTON BEACK COUNTY OF ORANGE.
STATE CIF CALWORMA. AS S►OI#M ON A MAP RECORDED IN MAP BOOK 706.
PACES 27 THROUGH 29. INCLUSW- OF Ml sLLANEOUS DAPS. W THE OrnCE
OF THE RECORDER Of SAID COUNTY.
PHASE ONE OF PACIFIC PARK VILLAS
ja x
2ND LEVEL
cll M •
¢ UNIT 11
n � UNIT 13
r' —.4, UNIT 19
II "_11.�• eZ�.
Ils � �l � 11
If « .L
O 't
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it
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13 � i� II
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.AsEUNC
ALL Ws NT"SEC1
AT W. 43. OR 13r.
..�� MdfJ1eE3 LmTx Or%O AL
SCALE 1'-10' — Ywa.Tlc.+s .109 NO 4285
SM 9QT3 28-31 FOR 3CC71CM3 AND IMAWNIL HAIL & FOREMAN INC
CONDITIONS AND STIPULATIONS—CONTINUED _qw4we
examine inspect and copy all records. books, ledgers, checks. cor 4.' LIMITATION OF LIABILITY.
responcence and memoranda in the custody crf 'Kit of a third party,which (a) If the Compa- Mabti_hes the title,or removes the alleged detect.
reasonably pertain to the loss or damage All int lion designated as con- lien or encumbrance,di vies the lack of a right of access to or from the land.
Iidential by the insured clamant provided to the Company pursuant to this or cures the claim of unmarketability of title,or otherwise establishes the lien
tectton shar not be disclosed to others unless,in the reasonable judgment of the insured mortgage,all as insured,in a reasonably diligent manner by
of the Company,it is necessary in the administration of the claim.Failure of any method.including litigation and the comp'elion of any appeals the-efrom.
the insured claimant to submit for examtnawi under oath,produce other it shall have fully performed its obligations with respect to that ma",er and
reasonably requested information or grant permission to secure reasonably stall not be liable for any loss or damage caused thereby
necessary information from thud parties as required in this paragraph,unless (b) In the event of any litigation,including litigation by the Company
prohibited by law or governmental regulation,shall terminate any liability d or with the Company's consent,the Company shall have no liability for loss
the Company under this policy as to that claim. or damage until there has been a final determination by a court of Competent
6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; lunsdcdion.and disposition of all appeals therefrom,adverse to the t11le or
TERMINATION OF LIABILITY. to the lien of the insured mortgage,as insured.
In case of a claim under this policy,the Company shall have the follow- (c) The Company shall not be liable for loss or damage to any insured
ing add-tional options: for liability voluntarily assumed by the insured in settling any claim or slit without
(a) To Pay or Tender Payment of the Amount of Insurance or to the prior written Consent of the Company.
Purchase the indebtedness. (d) The Company shall not be Fable for:(i)any indebtedness created
(i) to pay or lender payment of the amount of insurance under subsequent 10 Date of Policy except for advances made to protect the lien
this policy together with any costs,attorneys'fees and expenses incurred of the insured mortgage and secured thereby and reasonable amounts ex-
by the irsured clamant,which were authorized by the Company,up to the ,
time of payment or tender of payment and which the Company is obligated f�.nded to prevent deterioration of improvements;or(a)construCt+On loan
to pay;or advances made subsequent to Dale of Policy,except construction ban ad-
(i,) to purchase the indebtedness secured by the insured mortgage winces made subsequent to Date of Policy for the purpose of financing in
for the amount owing thereon together with any costs,attorneys'fees and whole or in part the construction of an improvement to the land which at pate
expenses incurred by the insured claimant which were authorized bythe Com- of Policy were secured by the insured mortgage and which the insured was
oany up to the time of purchase and which the Company is obligated to pay. and continued to be obligated to advance at and a"er Date of Policy.
If it e Company,offers to purchase the indebtedness as herein provided. g- REDUCTION OF INSURANCE; REDUCTION OR TERMINATION
,he owner of the indebtedness shall transfer, assign, and convey the in- OF LIABILITY.
debtedness and the insured mortgage•together with any collateral security, (a) All payments under this policy except payments made for Costs.
.-o the Company upon payment therefor, attorneys'lees and expenses,shall reduce the amount of the insurance pro
Upon the exercise by the Company of either of the options provided tanto.However,any payments made prior to the acquis lion of Irtle to the estate
'or in paragraphs a(i)or(it),all liability and obl gations to the insured under or interest as provided in Section 2(a)of these Conditions and Stipulations
*his policy.ocher than to make the payment required in those paragraphs, sha'I not reduce pro tanto the amount of the insurance afforded under this
shalt terminate,including any liability or obligation to defend,prosecute,or policy except to the extent that the payments reduce the amount of the in-
continue any litigation,and the policy shall be surrendered to the Company deCtedness secured by the insured mortgage.
,or cancellation (b) Payment in part by"person of the principal of the indebtedness.
(b) To Pay or Otherwise Settle With Parties Other than the Insured or any other obligation secured by the insured mortgage.or any voluntary
or With the Insured Claimant. partial satisfaction or release of the insured mortgage,to the extent of the
(i) to pay or otherwise settle with other parties for or in the name payment,satisfaction or release,sha!I reduce the amount of insurance pro
of an ins ired claimant any claim insured agairst under this policy,together tanto.The amount of insurance may thereafter be increased by accruing in-
with any costs,attorneys'fees and expenses incurred by the insured clai- terest and advances made to protect the lien of the insured mortgage and
mant which were authorized by the Company up to the time of payment and secured thereby,with interest thereon,provided in no event shall the amount
which the Company is obligated to pay;or of insurance be greater than the Amount of Insurance stated in Schedule A.
(ti) to pay or otherwise settle with the insured claimant the loss or (c) Payment in full by any person or the voluntary satisfaction or release
damage provided for under this policy,together with any costs,attorneys' of the insured mortgage shall terminate all liability of the Company except
tees and expenses incurred by the insured cla mans which were authorized as provided in Section 2(a)of these Conditions and Stipulations.
by the Company uptothe timed payment and Wiich the Comparryisobligated 10. LIABILITY NONCUMULATIVE.
to pay It the insured acquires title to the estate or interest in satisfaction of the
Upon the exercise by the Company of ether of the options provided indebtedness secured by the insured mortgage,or any part thereof,it is
for in paragraphs b(i)or(ii),the Company's obligations to the insured under expressly understood that the amount of insurance under this polity shall
this policy for the claimed loss or damage.other than the payments required be reduced by any amount the Company may pay under any polcy insuring
to be made,shall terminate,including any liability or obligation to defend, a mortgage to which exception is taken in Schedule B or to which the insured
prosecute or continue any litigation, has agreed,assumed,or taken subject,of which is hereafter executed by
7. DETERMINATION AND EXTENT OF LIABILITY. an insured and which is a charge or lien on the estate or interest described
This policy is a contract of indemnity against actual monetary loss or or referred to in Schedule A,and the amount so paid shall be deemed a pay-
damage sustained or incurred by the insured claimant who has suffered loss ment under this policy.
or damage by reason of matters insured against by this policy and only to 11. PAYMENT OF LOSS.
the extent herein described (a) No payment shall be made without producing this polwyfor endorse-
(a) The liability of the Company under th s policy shall not exceed the ment of the payment unless the policy has been lost or destroyed,in which
least of. case proof of loss or destruction shall be furnished to the satisfaction of the
(+) the Amount of Insurance stated in Schedule A.or,if applicable. Company
the amount of insurance as defined in Section 2(c)of these Conditions and (b) When liability and the extent of loss or damage has been definitely
fixed in accordance with these Conditions and Shpulatx ns.the loss or damage
StrpulaU(ii) sha'I be payable within 30 days thereafter.
(i) the amount of the unpaid provided
and indebtedness secured by 12 SUBROGATION UPON PAYMENT OR SETTLEMENT.
the insured mortgage as limited or provided under Section 8 of these Gonda- �•
lions and Stipulations or as reduced under Set (a) The Company's Right of Subrogation.
tit+pulat:ons,at the time the loss or damage insured against by this policy I Whenever the Company shal have settled and paid a claim under this
occurs,together with interest thereon;or policy.all right of subrogation sha'I vest in the Company unaffected by any
(tit) the difference between the value of the insured estate or act of the insured cla+marl.
subject to The Company shall be subrogated to and be entitled to al rights and
interest as insured and the value of the insured estate or interest sub
l remedies which the insured claimant would have had against a person
the defect,lien or encumbrance insured against by this policy. or property in respect to the claim had this policy not been issued.ItrequevRd
(b) In the event the insured has acquired the estate or interest in the by the Company,the insured clamant shall transfer to fhe Company all rights
manner described in Section 2(a)of these Conditions and Stipulal ions or has and remedies against any person or property necessary in order to perfect
conveyed the tale,then the liability of the Company shall continue as set forth this right of subrogation.The insured claimant shall permit the Company to
in Section 7(a)of these Conditions and Stipulations sue.compromise or settle in the name of the insured claimant and to use
(c) The Company will payonly those costs attorneys'fees and expenses the name of the insured claimant in any transaction or lit gat-on involving these
incurred in accordance with Section 4 of these Conditions and Stipulations. rights or remedies.
If a payment on account of a claim does not fully cover the loss of the
carrnued on remamrdel d corer sneer
CONDITIONS AND STIPULATIONS—CONTINUED
insured claimant,the Company shall be subrogated to all rights and remedies or less shall be arbitrated at the option of either the Company or the insured.
of the insured claimant after the insured claimant shall have recovered its prin- All arbitrable matterswhen the Amount of Insurance is in excess of$1.000.000
cipal,interest,and costs of collection. shall be arbitrated only when agreed to by both the Company and the n-
(b) The Insured's Rights and Limitations. sured.Arbitration pursuant to this policy and under the Rules in effect on the
Ndtwithstanding the foregoing,the owner of the indebtedness secured date the demand for arbitration is made or,at the option of the insured,the
by the insured mortgage,provided the priority of the lien of the insured mor- Rules in effect at Date of Policy shall be binding upon the parties.The award
tgage or its enforceability is not affected,may release or substitute the per- may include attorneys'fees only if the laws of the state in which the land is
sonal liability of any debtor or guarantor,or extend or otherwise modify the located permit a court to award attorneys'fees to a prevailing party.Judg-
terms of payment,or release a portion of the estate or interest from the lien ment upon the award rendered by the Arbilralor(s)may be entered in any
of the insured morlgag�or release anycollaterall security for the indebtedness. court having jurisdiction thereof.
When the permitted acts of the insured claimarl occur and the insured The law of the situs of the land shall apply to an arbitration under the
has knowledge of any claim of title or interest adverse to the title to the estate Title Insurance Arbitration Rules,
or interest or the priority or enforceability of the lien of the insured mortgage. Acopy of the Rules may be obtained from the Company upon request.
as insured,the Company shall be required to pay only that part of any losses 14. LIABILITY LIMITED TO THIS POLICY;POLICY ENTIRE CONTRACT.
insured against by this policy which shall exceed the amount,d any,lost to (a) This policy together with al endorsements,d any,attached hereto
the Company by reason of the impairment by the insured claimant of the Com- by the Company is the entire policy and contract between the insured and
pany's right of subrogation. the Company.In interpreting any provision of this policy,this policy shall be
(c) The Company's Rights Against Non-insured Obligors. construed as a whole.
The Company's right of subrogation against non-insured obligors shall (b) Any claim of loss or damage,whether or not based on negligence.
exist and shall include,without limitation,the rights of the insured to indem- and which arises out of the status of the lien of the insured mortgage or of
nines,guaranties,other policies of insurance or bonds,notwithstanding any the title to the estate or interest covered hereby or by any action asserting
terms or conditions contained in those instruments which provide for subroga- such claim,shall be restricted to this policy.
tion rights by reason of this policy. (c) No amendment of or endorsement to this policy can be made ex-
The Company's right of subrogation shall not be avoided by acquisition cept by a writing endorsed hereon or attached hereto signed by either the
of the insured mortgage by an obligor(except an obligor described in Sec- President,a Vice President,the Secretary,an Assistant Secretary,or validating
lion 1(a)(ii)of these Conditions and Stipulations)who acquires the insured officer or authorized signatory of the Company.
mortgage as a result of an indemnity,guarantee,other policy of insurance, 16. SEVERABILITY.
or bond and the obligor will not be an insured under this policy,notwithstan- In the event any provision of this policy is held invalid or unenforceable
ding Section 1(a)()of these Conditions and Stipulation& under applicable law,the policy shall be deemed not to include that provi-
13. ARBITRATION sion and all other provisions shall remain in full force and effect.
Unlessprohibited byapplicable Law.either theCompany or theinsured I& NOTICES.WHERE SENT.
may demand arbitration pursuant to the Title Insurance Arbitration Rules of Al notices required to be givers the Company and any statement in writing
the American Arbitration Association.Arbitrable matters may include,but are required to be furnished the Company shall include the number of this policy
not limited to,any controversy or claim between the Company and the in- and shag be addressed to the Company at its Corporate Headquarters
sured arising out of or retating to this policy,any service of the Company in 6630 West Broad Street, Richmond.Virginia 23230L Mailing Address: P.O.
connection with its issuanceor the breach of a policy provision or other obliga- Box 27567.Richmond Virginia 23261,or to the Company at its Pacific States
tion. All arbitrable matters when the Amount of Insurance is $1.000.000 Office. 10 Universal City Plaza, 23rd Floor, Universal City, CA 91608,
IN WITNESS WHEREOF, the Company has caused this policy to be signed and sealed, to be valid when
countersigned by an authorized officer or agent of the Company, all in accordance with its By-Laws.
Lawyers
Ttlejnsurance&oporation
Attest: $r- � By.
Secretary ""' President
Countersigned by:
,
AWflerfzAti Office entti-'
POLICY OF TITLE INSURANCE
A WORD OF THANKS...
As we make your policy a part of our permanent records, we want to express our appreciation of this evidence of your faith in
Lawyers Title Insurance Corporation.
There is no recurring premium.
This policy provides valuable title protection and we suggest you keep it in a sale place where it will be readily available for future reference.
If you have any questions about the protection provided by this policy, contact the office that issued your policy or you may write to:
Consumer Affairs Department
Laujy'ersTlde Insurance I o�poration
P.O. Box 27567
Richmond,Virginia 23261
` �+ r
CON TINEUrAL LAWYERS TITLE Ca4PANY
A Wholly Owned Subsidiary of
1.7, ens Title Insurance Corporation
1015 N. Main Street, Santa Ana, California 92701
Telephone (714) E35-5575
Redevelopment AgmW of the
City of Huntington Beach
2000 Main St
Huntingtm Beach, CA
Our No.: 9402211-04
Dear Agency Clerk:
Enclosed please find our policy of title ins2 wm issued per your
request. Tank you for using Continental Lawyers Title Company.
Very truly Yours,
Continental Lawyers Title Company
Subsidiary of Lawyers Title
Irm anoe Corporation