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HomeMy WebLinkAboutWEINFELD, JULIE - 1996-04-01°i&nig CITY OF HUNTINGTON BEACH Inter -Office Communication Economic Development Department DATE: June 12, 2000 TO: Gus Duran, Housing/Redevelopment Manager FR011: Joyce DeKreek, Housing/Redevclopment Consultan SUBJECT: Researzh 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 I' Time Home -Buyers Program to determine the names and amount of assistance which benefited the applicants from the $400,000 in Redevelopment Set -Aside funds approved by the Redevelopment Agency (RDA) at their November 1, 1993, meeting and from the $750,000 in Redevelopment Set -Aside funds approved by the RDA for the Pacific Park Villas at their February 6, 1995 meeting. The Redevelopment Agency approved nine applicants from the $400,000 allocation in conjunction with the City's CDBG X:` Time Homw-Buyers Program and one additional applicant for the RDA 1" Time Home -Buyers Program only. The RDA portion of these loans are Bastou ($25,000), Dieckmeyer ($23,000), Griffen ($25,000), Hoang ($23,000), Lawson ($23,000), Melvin ($35,000), Otto ($23,000), Quick, S. ($16,717), Quick, T. ($25,000), Rivera H. (S23,000). 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), Hosseinali ($35,000), Hocker ($35,000), Lawrence ($35,000), Murch (S35,000), Osterhoudt ($35,000), Peltier ($35,000), Rivera -Burgess ($35,000), Wallace ($35,000), Weinfeld ($35,000), NVong ($35,000), lrueck ($35,000), Margoles ($35,000). These loans total $525,000. Four loans (Melkerson,'Uniack, Ojeda, ReneAVhite, Stratton), previously approved by RDA were not funded. Gt0yCC9nt =nW Recoorcy.do. w �+ -... r?a ll�r,�y. •lam .. l �. iIle 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 a amount of $40,794.31 and Hoang, paid off his RDA loan on 12/21/1999 in the mount of 547,208.80. A check in the amount of $4,116.57 was issued to Mr. Hoang for overpayment, reducing the loan repayment to $43,092.23. These loans accrue simple interest at 5%, due and payable upon sale to a non qualified buyer and has shared equity. Cc: Connie Brockway, City Clerk Paul D'Alessandro, Deputy City Attorney David Biggs, Director, Economic Development John Reekstin, Director of Administrative Services Dan Villella, Director of Finance Jake Rahn, Administrative Services _ Hank Reveles, Sr. Accountant Joyce de Kreek, Economic Development Steve Holtz, Development Specialist GloyceInntemcmo Reconvey.doe 95-01(2-1-95) RDA 12-19-94 95-02 (2-1-95) RDA 12-19-94 95-03 (2-1-95) RDA 12-19-94 95-04 (2-1-95) RDA 12-19-94 95-06 (4-12-95) RDA 4-3-95 96-01 (1-24-96) RDA 1-16-96 96-02 (3-7-96) RDA 3-4-96 96-03 ( RDA 4-1-96 96-04 (7-17-96) RDA 7-15-96 96-05 (8-7-96) RDA 8-5-96 96-06 (8-7-96) RDA 8-5-96 97-01 (1-29-97) RDA 1-21-97 97-02 (4-30-97) RDA PACIFIC PARK VILLAS (S750,000 — RDA) Carillo, Ann $ 35,000 7861 Happy Drive, #102 Lawrence, James and Jeanette $ 35,000 18051 Joyful Lane, #16 Wong, Wesley Chi $ 35,000 7681 Happy Drive, 4202 Hocker, ChristopherNandereb, GayleS 35,000 7681 Happy Drive, # 101 Rivera, Victor/Burgess, Debra $ 35,000 18061 Joyful Lane, #104 Heckethome, Sean & Jacquelyn $ 35,000 7871 Happy Drive, #102 Margolis, Peter Weinfeld, Julie - Peltier, Edward Wallace, Barbara Jo Murch, Gregory Krueck, Deborah Qsterhoudt, Robert and Kathy $ 35,000 18651 Joyful Lane, #104 $ 35,000 ' 18061 Joyful Lane, #205 $ 35,000 7871 Happy Drive, #201 $ 35,000 18051 Joyful Lane, #205 $ 35,000 18051 Joyful Lane, #102 $ 35,000 18061 Joyful Lane, #10I $ 35,000 18061 Joyful Lane, #102 GloycrllnWnr= R=nvey.doc . .. -_ w +c. t• i:tir ' ti-• "7 �'v'[ i� y -CAMP, `r .-ram ' .i �f,�yr r ,a1. f _ �rI SS-yr L�14i'ritt1. f+ ::�/,: �F„t�'�SIi I :`�•:+.1'-'•L, - 97-03 (5-14-97) Hosseinali, Faroukh $ 35,000 18061 Joyful Lane, #201 RDA . 97-04 (7-23-97) Forchine, Richard $ 35,000 18051 Joyful Lane, #201 RDA 7-21-97 I" TIlAE BUYER ASSISTANCE ($400,000 RDA) 94-4 (2-11-94) Lawson, Sally $ 23,000 409 Utica Avenue VA-1 (RDA 1-18-94) 94-5 (2-11-94) Quick, Shauna S 16,717 409 Utica Avenue RC-32 (RDA 1-18-94)' 94-6 (2-11-94) Dieckmeyer, Barbara S 23,000 409 Utica Avenue-#B-21 (RDA 2-22-94) 94-8 (2-11-94) Otto, TJShorb R. 5 23,000 409 Utica Avenue #A-7 (RDA 1-18-94) 94-10 (2-11-94) Hoang, Taira - $ 23,000 409 Utica Avenue #D-37 (RDA 2-22-94) 94-11 (5-18-94) Bastou, Valerie $ 25,000 409 Utica Avenue ND-43 (RDA 5-18-94 , 94-12 (5-18-94) Quick La Reine, Teresa $ 25,000 409.Utica Avenue -NA-9 (RDA 5-18-94) 94-13 (6-23-94) Melvin, Patrick $ 35,000 409 Utica Avenue 9D-39 (RDA 6-20-94) 94-14 (7-27-94) Rivera, Hector & Iciar • $ 25,000 409 Utica Avenue 9A5 (RDA 7-18-94) 94-17 (10-4-94) Griffen, Olga Christina S 25,000 409 Utica Avenue #C-23 (RDA 9-19-94) S 243,717 Gtoycdlnteimtmo Reconv:y.doc t- • HUNTINGTON VACH TO: FROM: SUBJECT: DATE: OFFICE OF THE CITY CLERK _ CITY OF HUNTINGTON BEACH INTER -DEPARTMENT COMMUNICATION Future City Clerks and Deputy City Clerks Janelle Case, Deputy City Clerk per Instructions by Connie Brockway, City Clerk Down Payment Assistance Forgivable Loans 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 w Pacific Para Villas CouncillAgency No. Name Property_ Address Amount Date _Loan _ _ 95-02 Lawrence, James/Jeanette 18451 Joyful Lane #101A 92648 113/95 7861 Hap_p_ry Drive #202 92648 _ _35,000 - 35,000 _ _ _ _ -- 1/3195 95-03 Wong, Wesley 95-04 Hocker, Christopher & Vandereb, Gayle 7861 Happy Drive #101 92648 T 35,000 113195 95-06 Rivera, Victor & Burgess, Debra 18061 Joyful Lane #104 92648 35,000 4/3195 96-01 i/ Heckethome, Sean/Jacquelyn 7871Happy Drive #102 92648 35,000 _ _ _1A6196 — 96-02 Margolis, Peter _ 18051 Joyful Lane #104 92648 —__ 35.000 314196 _ 96-03 wenfeld, Julie 18061 Joyful Lane #205 92648 _ _ !_ — _ 411196 W - 96-04 _ Peltier, Edward _ 7871 Happy Drive #201 92648 _ _35,000 35,000 7/15196 _ 96-05 ,% _ _ _ _ Wallace, Barbara Jo - 18051 Joyful Lane #205 92648 35.000 815196 96-06 _- - Murch, Gregory S. 18051 Joyful Lane #102_926_48 35,000 815/96 97-01 Krueck, Deborah J. - 18061 Joyful lane-#103 92648 18061 Joyful Lane #102 92648 _35,,000 — 35,000 _ _ __1/21/97 4130197 97-02 Osterhauelt, Robert/Kathy 97-03 Hosseinali, Faroukh _ _ 18061 Joyful Lane #201 92648 35,000 —�_—_ 515/97 _ 97-04� _ Torchlone, Richard 18051 Joyful Lane #201 92648-' - 35,000 _ 711197 J1 CITY OF HUNTINGTON BEACH Inter -Department Communication TO: Gus Duran, Economic Development FRO`I: Gail Hutton, City Attorney DATE: Jane 1,1999 SUBJECT: Determination of Loan Forgiveness RLS 99-359 INDEX: BACKGROUND You have asked for a determination of whether several loans made by the City of Community Development Block Grant funds, for the first time home buyer down payment assistance program, are forgivable. ISSUE Are the nine loans forgivable? ANSWER Yes, if they were funded with the first S 100,000 appropriated for this program. ANALYSIS As part of the 1993-94 CDBG program the City Council approved S 100,000 as a pilot program to provide down payment assistance to moderate income households. We have reviewed several RCAs submitted by your department to the City Council for implementation of this program. The RCAs we reviewed were the originals in the City Clerk's office. From our review of these documents, we have developed the following chronology: 10/25/93: The City Council approved sample loan documents and four participants: Diane Culaciati, Michele Tullock, Osman Taban, and Caroline Sutherland in the total amount of S40,475. (RCA attached hereto as Attachment 1). 4!s:4.99`1c ros:Dur3n321 11/15/93: The City Council was requested to approve and additional 5100,000 in CDBG funds for the program. The Council deferred the item to December 6, 1993. (RCA attached hereto as Attachment 2). - 1216/93: 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 510,000, and increased the amount for participant Nicholas KormeIuk from 58,600 to 510,600. (RCA attached hereto as Attachment 4.) 12/20193, Item F-2: The City Council approved an additional S 100,000 for the program, but changed the program to require repayment of these additional funds. There are two important attachments to this RCA. The first is entitled "Approved Participants," and lists the following six participants: Culiaciati, Taban, Sutherland, Schmaderer, Kanarski, and Kormeluk, in the total amount of $61,952? The second important document attached to this RCA is the list of "Pending Participants" It shows eight more participants in the total amount of 559,100. It is not determinable from this RCA whether these persons were intended to be in the grant program or the loan program, and we do not know when, if ever, these participants were actually approved. 1/3/94: The City Council approved three more participants in the original, non -repayment program: Judy Young, Treva Love, and Ellen Ommondson, in the total amount of $31,000. When added to the previously committed amount of 573,952, the total amount of funds committed is 5104,952. This exceeds the original 5100,000 appropriated for the original, non - repayment program. The analysis portion of this RCA states that "the approvals herein will be the first funded with the new appropriation," which implies that at least a portion of the funds used for these participants were part of the funds that were conditioned for repayment, as opposed to the original, non -repayment funds. However, the total numbers listed are roughly consistent with the original $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 573,952 of the first 5100,000 appropriation. The problem is presented by the transactions with Young, Love, and Ommondson. We believe that the Council's intent was to not require repayment from these participants. Unfortunately, there was only $26,048 of the original, non -repayment funds available to these participants, and collectively, they received $31,000. Thus, a small portion of the funds used for these Note that an attachment to this RCA lists ten approved participants. Since the dates listed are after the Council meeting of 12/6/93, we believe that this list has been erroneously added to the 12/6193 RCA. 2 Please note that earlier during the same meeting, the Council had also approved David Dixson for S 10,000, and an additional 52000 for KormeIuk. Thus the amount committed from the original S 100,000 was actually $73,952. 2 4/s:4-99.%1 os:Duran327 participants must have come from the second S100,000, which the Council appropriated with the condition that the loans be repaid, not forgiven. CONCLUSION There are two conflicting Council actions. The Courcil'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 Onzmondson were from the second appropriation of funds, which included a repayment condition. Therefore, titi e 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 4: s:4-44Memos=DuranS27 Council/Agency Meeting Held: 5-1-9` Deferred(Continued to: Jcu Approved ❑Conditionally Approved ❑Denied City Clerk's ignature C- l340cf, -�e .4" r Council Meeting Date: May 17, 1999 Department ID Number. ED 99-29 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION .err SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY,- MEMBERS I = ={ SUBMITTED BY: RAY SILVER, Executive Director n PREPARED BY: DAVID C. BIGGS, Economic Development Director :. SUBJECT: Authorize the Transferability of 15 Pacific Park Villas Down Payment Assistance Loans —Approve and Authorize Execution of Documents Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Currently, the down payment assistance loans made by the Redevelopment Agency for Pacific Park Villas must be individually approved by the City Council. In order to facilitate transfers of these loans, staff is requesting that the Redevelopment Agency establish procedures for administrative approval of these transactions. Funding Source: None as a result of this action. , Recommended Action: Motion to: 1. Authorize the Executive Director and the Agency Clerk to execute on behalf of the Redevelopment Agency any and all documents necessary to transfer to new low and moderate -income homebuyers the Down Payment Assistance Loans made by the Agency at the inception of the Pacific Park Villas project. See Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be approved as to form by the Agency Counsel). 2. Authorize the Executive Director and Agency Clerk to execute on behalf of the Redevelopment Agency any and all documents necessary to subordinate or to reconvey the Agency loans (notes and deeds of trust), as these home owners refinance, sell their homes or meet their loan obligations, as stated in their notes and deeds of trust. See Attachment No. 3 "List of Down Payment Assistance Borrowers at Pacific Park Villas." (All documents to be approved as to form by the Agency Counsel). REQUEST FOR REDEVELOPMENT AGENCY ACTION MEETING DATE: May 17, 1999 DEPARTMENT ID NUMBER: ED 99-29 Alternative_Action(s): The Redevelopment Agency can retain the authority to approve the transferability of each and every Down Payment Assistance loan made on this project. The number of loans originated for this project was 16 loans. This means that each and every time, Agency staff will have to prepare a Request for Agency Action, thereby increasing staff time and costs. It will also delay the ability the sellers and buyers to close escrow quickly. In some cases the delays could cause undue hardship and cause the sale of properties to fall out of escrow. Analysis: In 1996, the Redevelopment Agency made 15 Down Payment Assistance Loans to low- and moderate -income homebuyers purchasing dwellings at the Pacific Park Villas residential project located near Talbert and Beach. The purpose of these loans were to expedite the sales of homes in the Pacific Park Villas project and simultaneously meet the Redevelopment Agency's obligation to assist low and moderate income persons with 20% Set Aside Funds, as required by Redevelopment Law. The loans made to these homebuyers were meant to be transferable to other low and moderate -income families. The City Attorney's Office has been requested to make a determination of the transferability and has rendered a decision indicating that the loans are transferable to other homebuyers that meet the income qualification of having incomes below 120% of the median income for Orange County. (See attached memorandum from the City Attorney's Office). Some of these homebuyers are now ready to move on with their lives and are desirous to sell their properties. To facilitate the closing of escrows without significant delays to sellers and buyers, the Economic Development Department is requesting that the Redevelopment Agency Board authorize the Executive Director and the City Clerk to administratively manage the transferability of these loans. This will permit the Executive Director to execute documents without having to come the Agency Board on each and every loan, especially since these loans were prepared with the identical notes, deeds of trust and Covenants, Conditions and Restrictions (CC&R's). The City Attorney's Office has provided an opinion on the loans' transferability. Environmental Status: NIA Attachment(s): 1. City Attorney's Office Memorandum. 2. Sample Loan Documents. 3. 1 List of Down Payment Assistance Borrowers at Pacific Park Villas. RCA Author. Gus Duran X1529 RCAPPV.DoC -2. 05I0M9 9:34 AM Citv Attornev's Office Memorandum ATTACHMENT #1 J� L CITY OF HUNTINGTON BEACH Inter -Department Communication TO: David Biggs, Director of Economic Development FROM: Gail Hutton, City Attorney DATE: April26, 1999 SUBJECT: NN'allace Loan Documents You have asked several questions concerning the Wallace loan documents. 1. Is the loan transferable? A. Yes, with the Agency's prior written consent. See Section 18 of the Loan Agreement. 2. What are the income limits for purchasers? A. No greater than 120% of median income (moderate income) pursuant to Section 9 of the Loan. Agreement. 3. Does the new buyer need to meet the income requirements of the CC&Rs? A. Yes. 4. Is the Equity Sharc payable if the buyer qualifies under the CC&Rs? A. Yes. 5. Can the interest be forgiven if the property's fair market value does not exceed 5% per year? A. No, unless the Agency approves forgiving the interest. 6. Should the Equity be calculated minus the selling expenses? A. No. Please contact me if you have any further questions. t Gail Hutton City Attorney 41s:4 -99 .'A a mo s: B i S Si 42 6 CITY OF HUNTINGTON BEACH Inter -Office Communication Economic Development Department TO: Gail Hutton, City Attorney Paul D'Alessandro, Deputy City Attorney FROM: David C. Biggs, Director of Economic Development DATE: April20,1999 SUBJECT: First Time 11ome Buyer Loan for Barbara Jo Wallacc Yesterday, April 19, 1999, Gus Duran, the Department's Housing and Redevelopment Manager met with Ms. Barbara Jo Wallace, her real estate agent and other property owners of the Pacific Park Villas project to discuss their.concerns regarding First Time Homebuyer loans made to them by the Redevelopment Agency. As you may recall, at a previous City Council meeting, Mr. Bob Osterhoudt made a plea to the City Council requesting assistance for the property o,.Nmers of this complex. In addition, Ms. Wallace has written to the Mayor and the City Attorney (April 2, 1999) requesting the Redevelopment Agency's assistance in resolving her needs to sell her property with the Agency's assistance. The Economic Development Department is ready and willing to help Ms. Wallace and the other property owners sell their homes, as they need to move on with their lives when they desire, but we are in need of a legal opinion regarding the following issues: 1. Is the loan made to Ms. Wallace, which is similar to those made to the other buyers of Pacific Park Villas, transferable? 2. What are the income limit requirements for the purchasers of these homes when a property owner sells his/her home? (See attached 1999 Orange County Affordable Housing Woiksheet issued by the law firm of Stradling, Yocca, Carlson & Rauth.) 3. Does a new buyer need to meet the'iricoine requirements established in the CC & Ws? 4120199:Gus buranNoudmWALLACE 4. Is the "Equity" payable if the sellers sell their home to a buyer that meets the incor:ie requirements established in the Note and the CCRR's? 5. Can the interest be forgiven if the property's "fair market value" does not exceed 5% per year? 6. Should the "Equity" be calculated minus the selling expenses (See Section 4A of Loan Agreement)? We are requesting an immediate opinion on these issues, as Ms. Wallace has already purchased a home in the State of Washington and has a pending sale of her property in Huntington Beach in the works, subject to the Agency's determination on these issues. At the moment, her pending sale is being held up because neither the seller, nor the buyer knows what to do with the information on the note and deed of trust, or the 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. Promissary 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 4r20,'99:Gus DurawHoudmWAtLACE Sample Loan Documents ATTACHMENT #2 LOAD' AGREEMENT THIS LOAN AGREEMENT (the "Agreement") is made this 5tF_ 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 Joyful Lane L205 Huntington Beach, California, and more particularly described in Exhibit A attached hereto and incorporated herein (the "Property"). B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and currently earns less than 120% of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to the Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. The Agency desires to assist persons of low and moderate income to"purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach (the "City"). E. The Agency wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: I . Agency Loan. The Agency shall loan to Participant (the "Agency Loan") the amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the Program. The Agency Loan shall be paid to the seller of the Property (the "Seller") by the Agency through deposit of the Agency Loan proceeds into escrow with TIEMPO ESCROW, YNC. , A CALIFORNIA OORPO RATIC U (the "Escrow Agent") (Escrow No. M2—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 shall execute and deliver to the Agency a Loan Agreement Page 1 of S 4 0A•?G-Agrcc.Wallacc:lurugrcc [tLS 75-523 7R5MS promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple interest at five percent (5%) per annum, due in thirty (30) years and payable upon the earlier sale, refinancing or transfer of the Property, substantially in the form of the "Promissory Note" attached hereto as Exhibit B and incorporated herein. Participant shall also execute and deliver to the Agency a second deed of trust encumbering the Property which shall secure the Promissory Note (the "Agency Deed of Trust"), in the form of Exhibit C attached hereto and incorporated herein. 2. Maintenance of Pro ert. 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 homeowper's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws. 3. Due on Sale Transfer or Refinancing. Participant agrees to notify the Agency not less than thirty (30) days prior to (i) the sale or transfer of the Property or (ii) any refinancing of the lien of the Agency Deed of Trust or any lien to which the lien of the Agency Deed of Trust is subordinate (the "First Mortgage"). The Agency Loan and all interest.accrued thereon shall be due and payable upon (i) such sale or transfer, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for an amortization period longer than the loan secured by the First Mortgage, or (iii) Participant is no longer an occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan. 4. Eouity_Sharin. 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: 2. After fifth anniversary but prior to sixth anniversary: 3. After sixth anniversary but prior to seventh anniversary 4. After seventh anniversary but prior to eighth anniversary: Loan Agreement Page 2 of 8 fifty percent (50%) forty-eight percent (4S%) forty-six percent (46%) forty-four percent (44%) 4N5!(i:4.96-Agrce-.Wailacc:loanagrce R1 S 96-523 7/26196 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) G. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tent' anniversary but prior to eleventh anniversary: thirty-eight percent (38%) S. After eleventh anniversary but prior to twelfth anniversary: thirty-six percent (36%) 9.1 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%) I7. After twentieth anniversary but prior to tvrenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. Auer twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) Loan Agreement Page 3 of 8 4's�G:4.96-Agrcc: W atlace:toanagrce RC.S 96-523 7r W6 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. ARer twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. ' Auer 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 (]%) 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 clue 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, brokers commissions, loan fees or any other closing or transaction costs. Loan Agreement Page 4 of 8 C-sXj-.4.96-Agrce:W allacc:loanagrce IMS 9G-321 7r2G19G 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 liniit, the Equity Share Amount shall not become payable. B. .EEc uit hare Upgn Refinancing or Failure to Occupv. 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 Agenc�shalI appoint a certified, independent,'appraiser to conduct an appraisal of the P.ro2erty. at Participant's expense. and Par eipant 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 Eguity 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 In Formation. 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. S. 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 4%s1C}:4.96-Agree: W allace:loanagree R1.S 96.323 7126►96 shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns. In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 9. Covenants. Participant and the Agency shall execute and have recorded in the Official Records of Orange County, California, a "Declaration of Conditions, Covenants and Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated herein, in which Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health & Safety Code Sections 50093 and 50052.5. and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Agency and the City. 10. Non-%Vaiver. Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 11. Indemnification. The Participant shall defend, indemnify and hold harmless the Agency and the City of Huntington Beach and their respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the Agency or the City to make such payments, by virtue of the Agency Loan. 12. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying; the default complained of by the injured party. Except as required go protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 13. Documents. Participant is aware that the Agency has prepared certain documents to implement the Program and secure repayment of the Agency Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Agency Loan: Loan Agreement Page 6 of 8 41s%0:4-96-Agrcc: W all ace:loanagree 1:1 S 96.523 T126196 (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. 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. Amendme-it of Agreement. No modification, rescission, wai iver, release or amendment of any provision of this Agreement shall be made except by a written agreement executed by the Participant and Agency. 17. Agency May Assi n. 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 sliall Participant assign or transfer any portion of this Agreement without the prior express written consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous Loan Agreement Page 7 of 8 4's' (i:4.96-Agrcc: W it lacc:loansgrec HIS 96-323 7126►96 agreements between the Agency and the Participant concerning all or any part of the subject matter of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year written below. "PARTICIPANT" A Date: AUGUST 13, 1996 , 19 By: !. �LL�uLa Yo Date: 19 Date: 219 D. ATTEST: Agency Clerk REVIEWED AND APPROVED: r - s Executi e irector Printed Name: By: Printed Name: By: Printed Name: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: z:;Src___ Chairman APPROVED AS TO FORM: 'IN a Agency Counsel INITIATED AND APPROVED: A W C. Director of Economic evelopment Loan Agreement Page 8 of 8 41skG:4.96-Agree:Watlace:loanagree RIS 96-523 W26196 EXHIBIT A LEGAL DESCRIP I _`: OF PROPERTY PARCEL 1: � s An undivided one twenty second (11221 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 Va. 14828, which Plan was recorded on August 25, 1994 as Instrument Mo. 94-0525335 of official Records of Orange County, over Lot 1 of Tract No. 14828, in the city of Huntington Beach, County of Orange, State of California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the County Recorder of said county. Excepting therefrom all oil, petroleum, asphaltum, 'gas, rAnerals 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 too. 22 consisting of certain airspace and surface elements, as shown and described in I the Condominium Plan referred to in Parcel 1 above. Parcel 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, Conditions and Restrictions and Reservation of Easements for Pacific Pail; villas, recorded August 25, 1994 as Instrument tro. 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:dcfined, depicted and assigned on the Plan. Exhibit A to Loan Agreement Page IofI 4'Mgrcc:M argotis:ExltibitA107l2 W96 EXHIBIT B PROy11SSORY NOTE S 35 000.00 AUGSUSr STU , 19 96 Huntington Beach, California 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 92649, 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 unTaid principal and accrued interest shall be due and payable on AUGUST 5TH , 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 Page 1 of 3 4V%4.96Agrcc: Walfacc:ExhibhB RM.S 96.523 W26/96 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 xs Trustor in favor of Holder as Trustee. 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 mote Amount. 6. Loan Agreement This Promissory Note is made and delivered pursuant to and in implementation of Loan Agreement entered by and between the Holder and the Maker dated AUGUST 5, , 19 (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 Assienment Prohibited In no event shall Maker assign or transfer any portion of this Agreement without the prior express written consent of the Holder, which consent may be given or withheld in the Holder's sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan proceeds hereunder. 9. ttorne ' 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 Loar. Agreement Page 2 of 3 4u4-94 ftcc.W allacc- Exhib *ttl! kl S94.32] MOM I- 11. Successors Bound" This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. "MAKER" By: � L' Lc; ��c..���• x . Printed blame: BARBARA JO WALLA' By: Printed Name: By: Printed Frame: "Exhibit B" to Loan Agreement Page 3 of 3 4\$%4-9GAgree. W allatt:i:xhibilD ILLS 96-523 T/2G196 RECORDING REQUESTED BY ) AND WHEN RECORDED RETURN TO: ) ) Redevelopment Agency of the City of ) Huntington Beach ) 2000 Main Street ) Huntington Beach, CaIifornia 92648 ) Attn: Agency Clerk ) [Spice Above Dis Line Fa Recorders Usc.1 This document is exempt from recording fees pursuant to Government Code Section 6103. DEED OF TRUST WITH ASSIGNMENTS OF RENTS THIS DEED OF TRUST is made this 5n] day of Aug. , I9.96, by and among BARBARA JO WALLACE, whose address is 18051 Joyful Lane, 9205, Huntington Beach, California (the "Trustor") and THE CITY OF HUI' TINGTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. WITNES5ETH: That Trustor Irrevozably Grants, Transfers and Assigns, to Trustee, in Trust, with Power of Sale, that property in the City of Huntington Beach, County of Orange, State of California, described legally in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a) all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter given to and conferred upon Beneficiary to collect and apply such rents, issues and profits, and all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement. "Exhibit C" to Loar. Agreement Page 1 of 15 41&%C}:4-46a&rcc: W allacc:CxloibitC RLS 46-523 712G.96 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 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 beuveen Beneficiary and Trustor dated AUGUST 5 19 96 , insofar as the terms and conditions of that agreement may apply to Trustor. 4. Payment, with interest thereon, future indebtedness or obligation of the Trustor (or of any successor -in -interest of the Trustor to said property) to the Beneficiary, whether created directly or acquired by assignment, whether absolute or contingent, whether due or not, whether otherwise secured or not, or whether existing at the time of the execution of the Deed of Trust, or arising thereafter. B. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR AGREES: l . To keep said property in good condition and repair; to allow Beneficiary or its representatives to enter and inspect the premises at all reasonable times and access thereto, shall be permitted for that purpose; not to remove or demolish any building thereon; not to make alterations thereto without the consent of the Beneficiary; to suffer or permit no change in the general nature of the occupancy of the premises without Beneficiary's written consent; to complete or restore promptly and in good workmanlike manner any building which may be constructed, damaged or destroyed thereon, including, without restricting the generality of the foregoing, damage from termites and dry -rot; to pay when due all claims for labor performed and materials furnished in connection with such property and not to permit any mechanic's lien against such property; to comply with 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 4%$NG-4-96 acrcc:W aflacc:ixiiibiLC R[ S 96.523 MGM (a) to complete the same in accordance with City approved plans and specifications satisfactory to Beneficiary; (b) to allow Beneficiary to inspect such property at all times during rehabilitation; (c) to replace any work or materials unsatisfactory to Beneficiary within fifteen (15) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property; (0 not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor shall make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph., is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shall have a loss payable endorsement in favor of Beneficiary, shall be for a term and in form, content, amount and in such companies as may be satisfactory to Beneficiary, and the policies therefor shall be delivered to and remain in possession of Beneficiary as further security for the faithful performance of these trusts. At least thirty (30) days prior to the expiration of any insurance policy, a policy or policies renewing or extending such expiring insurance shall be delivered to Beneficiary together with v ritten 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 undemvriter. 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`,eG:4.96agree:Watlace: CxhibitC KLs 9G-12] 712616 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. 1f, by the laws of the United States of America, or of any state having jurisdiction over the Trustor, any tax is due or becomes due in respect to the issuance of the Note hereby secured, the Trustor covenants and agrees to pay such tax in the manner required by such law. Should Trustor fail to make any such payment, Beneficiary may elect to make such payment, Beneficiary'may elect to make such payment and any amount so paid may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. 4. That, should Trustor fail to make any payment or do any act as provided in this Deed of Trust, the Beneficiary or Trustee, but without obligation to do so and without notice to or demand upon Trustor and without releasing Trustor from any obligation hereof, may (a) make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon said property for such. purposes, (b) commence, appear in, or defend any action or proceeding purporting to affect the security hereof or the property covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, (c) pay, purchase, contest or compromise any encumbrance, charge or lien, which in the judgment of either is or appears to be prior or superior hereto, and (d) in exercising any such powers, pay necessary expenses, employ counsel and pay his reasonable fees. Trustor agrees to repay any amount so expended on demand of Beneficiary, and any amount so "Exhibit C" to Loan Agreement Page 4 of 15 41:kc:4-96a&rcc: W Allan:exhib;tC ItIS 96-523 912G19G expended may be added by Beneficiary to the indebtedness secured hereby and shall bear a like rate of interest. S. To appear in and defend any action or proceeding purporting to affect the security hereof or the property which is covered by this Deed of Trust, or the rights or powers of Beneficiary or Trustee, and whether or not Trustor so appears or defends, to pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property id directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 6. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. S. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sum, s 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 ,ums 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 4�s'G:a-46sgtce:W.11acc:Cxh;h;RC RLS 46.323 W26M thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c) join in granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof: 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Dote 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 Vote and this Deed of Trust (unless directed in such request to retain them). 13. That as additional security, Trustor irrevocably assigns to Beneficiary the rents, issues, and profits of the property affected by this Trust Deed for the purposes and upon the terms and conditions set forth below. This assignment shall not impose upon Beneficiary any duty to produce rents from the property affected by this Trust Deed, or cause Beneficiary to be (a) "mortgages in possession" for any purpose; (b) responsible for performing any of the obligations of the lessor under any lease; or (c) responsible for any waste committed by lessees or any other parties, for any dangerous or defective condition of the property affected by this Trust Deed, or for any negligence in the management, upkeep, or control of such rights to rents, issues and profits is not contingent upon, and may be exercised without possession of, the property affected by this Trust Deed. Beneficiary confers upon Trustor a license ("License") to collect and retain the rents, issues and profits of the property affected by this Trust Deed as they become due and payable, until the occurrence of a default hereunder. Upon such default, the License shall be automatically revoked and Beneficiary may collect and retain the rents, issues and profits without notice and without taking possessions of the property affected by this Trust Deed. This right to collect rents,, issues and profits shall not grant to Beneficiary or Trustee the right to possession, except as otherwise provided herein; and neither said right, nor termination of the License, shall impose upon Beneficiary or Trustee the duty to produce rents, issues or profits or maintain all or any part of the property affected by this Trust Deed. If Trustor shall default as aforesaid, Trustoes right to collect any such money shall cease and Beneficiary shall have the right, with or without taking possession of the property affected hereby, to collect all rents, issues, royalties and profits and shall be authorized to, and may, without notice and irrespective of whether declaration of default has been delivered to Trustee and without regard to declaration of default has been delivered to Trustee and without regard to the adequacy of the security for the indebtedness secured hereby, either personally or by attorney or agent without bringing any action or proceeding, or by receiver "Exhibit C" to Loan Agreement Pale G of 15 41s%0:4.96agrc4t: Wsllacc:ExliibitC RI S 96.523 W26M to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall. not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy; lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither 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\s1G:4-96agrcc: W al lacc:lixhibitC RLS 9G-523 7/26/96 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 la%v 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 a5 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 their 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 4%skc:4-96agrce:waltacc:iixl+ib;tc RCS 96-523 7/2619G been recorded, this power of substitution cannot b! 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, irures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrato-s, executors, successors and assigns. The term "Beneficiary" shall mean the owner and holder, including pledge, of the Note secured hereby, whether or not named as Beneficiary herein. In this Deed of Trust, whenever the context so requires, the masculine gender includes the feminine and/or neuter, and the singular number includes the plural. 19. That in the event the property secured by this Deed of Trust is income producing property consisting of four units or more, Trustor agrees to file with Beneficiary, annually on January 1, a written operational report. Such operational report shall contain a brief but complete statement of the year's income and expenses of such property, a list of all vacancies, and a statement of any material change in the property o- 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 n-ust 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 Prcmissory 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 Loin Agreement Page 9 of 15 4\s1C:4-96 agrcc:Wallace:CxhibitC RLS 96-513 71206 disclose any material fact, Beneficiary at its option and without notice, shall have the right to declare the indebtedness secured hereby, irrespective of the maturity date specified in such Note or Notes, immediately due and payable, and on failure to so pay Beneficiary may make a written declaration of default and demand for sale as in paragraph No. 15 herein set forth. Trustee, upon presentation to it of an affidavit signed by Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. Any notice which any party hereto may desire or be required to give to the other party shall be in writing. The mailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR: By: By: APPROVED AS TO FORA: r Ajency Counsel ; f)c- �7-21!jL "Exhibit C' to Loan Agreement Page 10 of 15 4'41Ci:4-96agrcc: W allace:CxliibitC RLS 96•523 7126M RIDER TO DEED OF TRUST FIRST TIME 40 IEBUYER DOWN PAYI`IENT ASSISTANCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUGUST 5T11 , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor th. sum of Thirty-five Thousand Dollars ($35,000.00) (the "Loan Amount"). AlI 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 sucli 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: Prior to fifth anniversary of the Agency Deed of Trust: fifty percent (50%) 2. After fifth anniversary but) prior to sixth anniversary: forty-eight percent (48%) 3. After sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: forty-four percent (44%) 5. After eighth anniversary but prior to ninth anniversary. forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (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%) "Exhibit C' to Loan Agreement Page I I of 15 4's%G:4.96agrcc: Wallace: Exlf ibitC RLS 9G-323 i/26M 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%) 11. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but " prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty -First anniversary but prior to twenty-second anniversary: sixteen percent (I6%) 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. Auer twenty-fourth anniversary but prior to twenty-fifth anniversary: ten percent (I0%) 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 JIIAG:496 zgrcc: Wal [acc:I:xi►ibitC RI S 9G-323 7/26MG 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After. twenty-ni nth 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 Trustor's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The percentage factor so determined is the "Applicable Factor." if the Property is sold, an amount equal to the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the amount received by Trustor as the Property sale price (as reduced by costs of sale paid by the Trustor) shall constitute the Equity Share Amount. If the Property is transferred or the lien of this Deed of trust or any lien to which this Deed of Trust is subordinate is refinanced for a loan amount which is in excess of the then current loan balance or extends the amortization period of the loan secured by such prior lien. Beneficiary shall appoint a certified, independent appraiser to conduct an appraisal of the Property and Trustor agrees that in such event the Equity Share Amount shall be the Applicable Factor multiplied by the difference between (i) the original Property purchase price and (ii) the appraised value of the "Exhibit C" to Loan Agreement Page 13 of 15 4'zkG:4-96agrcc: Wallace:ExhibitC RLS 96-523 7126/96 m Property as of the time of such transfer or refinancing. Dated: AUGUST 13, 1996 TRUSTOR L �tt��Q't•� �i'i1 u•Jt.%C�IZ.t �._ Emu=A j6 MLACE APPROVED AS TO FORM: JI Agency Attorney •1- •2 !j _ y [, Jk l-- "Exhibit C" to Loan Agreement Page 14 of 15 4%AG:4.96:&rcc:Wallacc:Iixh ibitC RLS 96.523 Mori RUDER TO DEED OF TRUST S?ERIORITY OF FIRST LENDER DQCUMENTS (if required by the First Lender) . This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated AUGUST 5 , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand dollars ($35,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter recorded against the prop:rty 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: AC -Le 4z" ("Ili - Agency Attorney) kh BAD Jo LACE "Exhibit C" to Loan Agreement Page 15 cf 15 44%74.9Gagr=WallaccXYJiib;tC RI S 96.323 7,76*6 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE'OF CALIFORNIA COUNTY OF ORANGE SS.ORANGE Oil AUGUST 13, 1996 before me, the urrtlersigned, personally appeared BARBARA JO WALLACE personally known to isle (or proved to me on the basis of satisfactory evidence) to be lire person(s) whose name(s) Is/are subscribed to the within instrument and acknowledged to ime that helshelthey executed the same In his/her/their authorized canacity(ies), and that by his/her/their signalure(s) on the instrument the person(s) or the entity upon beliaif or wlrictr the person(s) :acted, executed the Instrument. WITNESS my Hand and official seal. (I fits area for oftleral norsrlar sear) LINDA J. CAMPSFLL z �* .�. �: COMM. # 1445344 (p Signatur _ r!1 _� m = ��� NOTARYPUBLIC•CALIfOrtvlA� _ ORAN t L UMA J. _ ,, ci s DEC.2 . CAMrILL ...:. 'y Comm. Upits SE. Ze. 1 s4+s (rirr((rr(rrr(r(r(t(rt(lI(i(rir(rt(tilt OVIMN i_ i((rr(rrirrtilriililrrrr irirrlrrrtrrr Though the data below are not required by Imv, they may prove valuable to persons relying on the (iocument and could prevent the fraudulent reattachment of this form. Capacity Claimed By Signer Windividual E7 Corporate Officer T Itles(s) IJ Partner(s) IJ Limited [I. General U )Attorney -In -Fact L7 'rrustee(s) D Guardian/Conservator 0 Other: Signer Is Representing: I,lame of Person(s) or Eritity(les) Description or Attached Documelst lltlo or 'type of Uocennprit Number of Pages Date of Document SEgiier(c) Other T hari Named Above EXHIBIT A TO AGENCY DEED OF TRUST 1,EGAL DESCMPTION PARCEL 1: 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 Flan ("Plan") for Lot 1 of Tract 1;-. 14828, which Plan was recorded on August ; 25, 1994 as Instrument No. 94-0525335 of official Records of orange County, over Lot I of Tract tto. 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 !taps, in the office of the county Recorder of said County. Excepting therefrom all oil, petroleum, asph3.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 No. 22 consisting of certain airspace and surface elements, as shown and described in i the condominium Plan referred to in Parcel 1 above. Parcel 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encrcachment, support, maintenance, Fepaira and for other purposes, all as described in that certain Declaration of Covenanter Conditions and Restrictions and Reservation of rasemants 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 an the Plata. "Exhibit A" to Agency Deed of Trust Page 1 of 1 4VIO.Agrcc: Aiargol is:LxhCDcc&07r16!'.)6 RIS 95.127 EXHIBIT D DE LARATION OF CONDITIONS C VENANTS 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 REDEVELOPNIENT 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. 95 . (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 I of 9 41s1(;;4.96Agree: W allacc:ExhibitO RLS 96-523 7/29196 1. Affordability Covenants. Covenantor agrees for itself, and its successors and assigns, and every successor to Covenantor's interest in the Property, or any part thereof that for thirty (30) years from the date of recording of the Deed of Trust in favor of the Agency regarding the Property (the "Expiration Date"): (a) The Property shall only be owned and occupied by Convenantor or by other persons or families of "Moderate Income." "Moderate Income" shall mean persons or families earning One Hundred Twenty Percent (120%) or less of Orange County median income, adjusted for appropriate family size. (b) The Property shall be kept available at Affordable Housing Cost (as defined below) to the Covenantor or other persons or families of moderate income. Affordable Housing Cost shall mean, as to each person or family of low or moderate income, that purchase price which would result in monthly housing payments which do not exceed an amount under any currently prevailing conventional home mortgage lending rates applied by any reputable institutional home mortgage lender, or the lending rates of any government -subsidized or special mortgage program for which such person or family qualifies and has obtained a first trust deed loan, which do not exceed thirty-five percent (35%) of One Hundred Ten Percent (110%) of the Orange County monthly median income for those persons and families of moderate income (as determined by the United States Department of Housing and Urban Development) earning between Eighty Percent (80%) and One Hundred Ten Percent (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 1 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 2. Transfer of Property. No transfer of the Property shall occur until the Agency determines (a) that the proposed purchaser intends to occupy the Property as the proposed purchaser's principal residence, (b) that the proposed purchaser is a person or family of moderate income and (c) that the proposed transfer occurs at an Affordable Housing Cost. The Agency shall not be obligated to approve a transfer until and unless the proposed purchaser has submitted to the Agency such information and completed such forms as the Agency shall request to certify . the proposed purchaser's intent with respect to its residency of the Property and its gross income, and the proposed purchaser has submitted an affidavit disclosing and certifying the amount of the proposed purchase price. Prior to conveyance of the Property, each approved purchaser shall submit to the Agency an executed disclosure statement which certifies that the purchaser is aware that the purchaser buying may only sell the unit at an Affordable Housing Cost to a moderate income person or family, that the maximum permitted sales price may be less than fair market value and that the unit must be owner -occupied at all times and cannot be rented or leased. Covenantor shall cooperate with the Agency in providing such forms to proposed purchasers and in assisting proposed purchasers to prepare such forms and to provide any required information to the Agency in connection with the Covenantor's original sale of the Affordable Unit, provided that "Exhibit D" to Loan Agreement Page 2 of 9 4k\0:4-96Agrcc: Wallacc:ExhibitD RL.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, TAKFNG 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 INSETTING 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 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`e.G:4.96Agrcc: W allacc:CxhibitU RLS 96.523 7n9I96 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 Agency. All. covenants without regard to technical classification or designation shall be binding for the benefit of the Covenantee and the City of Huntington Beach (the "City") and such covenants shall run in favor of the Covenantee and the City for the entire period during which such covenants shall be in force and effect, without regard to whether the Covenantee or the City is or remains an owner of any land or interest therein to which such covenants relate. The Covenantee and the City, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at law or suits in equity or other proper legal proceedings to enforce and to cure such "Exhibit D" to Loan Agreement Page 4 of 9 4\c\G:4-9GAgrcc:W allacc:CxhibitD KLS 9G-523 7/29/9G 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 of be executed on their behalf by96 9 the respective officers hereunto duly authorized, this 13 day AUGUS COVENANTOR 7�4elta lam(/' SAREUM JO WALLACE APPROVED AS TO FORM: �/� AgencyCounsel�y�,���� "Exhibit D" to Loan Agreement Page 5 of 9 4\S%GA-96Agree: Wallace:ExhibiLD RLS 96-523 7/29196 STATE OF CALIFORNIA } ss COUNTY OF ORANGE ) On AUGUST 13, 1996 , before me Ln= J. CAMPBELL (name, title; e.g., "Jane Doe, Notary Public"), personally appeared BARI ARA JO WALLACE _ (name(s) of signer(s)), personally known to be -- OR -- ?X proved to me on the basis of satisfactory evidence to be the person(s),whose namc(s) islare subscribed to tl:e within instrument and acknowlcdged to me that he/shc/they executed the same in his/her/tlicir authorized capacity(ics), and that by his/hcrldicir signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. W'tn ss.mv hand and official seal. T• LINDU. CAMPSELL :r C0MNi- V 1045344 N07AW PUBLIC -CALIFORNIA � ORANGE COLIM INy Comm. Expi s3 DEC, 20. 119J8 CAPACITY CLAIMED BY SIGNER: XX Individual Corporate Officer(s): Title(s) Partner(s): Limited General Attorney -in -Fact Trustee(s) G uardi an/Conservato; Other SIGNER IS REPRESENTM: Name of Person(s) er Entity(ies) ((� (Signal c of Notary LIMA J. cmPBELL ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACITMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS, ERTIFICATE Title or Type of Document DOMARATIOU OF C MITICUS, CDVM=S MUST BE ATTACHED AND RESrRICrIC S F(X1 PRDPEM7 TO THE DOCUMENT Number of Pages DES RISED Date of Document T G= 5, 1996 T RIGHT: SignerMinns) Other Named Above: "Exhibit D" to Loan Agreement Page 6 of 9 414%G:4-96Agec:W all ace-.ExhibiID ILLS 96-523 7129196 STATE OF CALIFORNIA ) ss COUNTY OF } On , before me, T (name, title, e.g., "Jane Doe, Notary Public"), personaIIy appeared (name(s) ofsigner(s)), personally known to be -- OR -- proved to me on the basis of satisfactory evidence to be the person(s) whose names) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/theirzudiorized capacity(ics), and that by his/her/their signaturc(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. (Signature of Notary) CAPACITY CLAIMED BY SIGNER: Individual Corporate Oflicer(s): Title(s) Partner(s): Limited General Attomey-in-Fact Trustee(s) GuardiantConservator 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 MUST BE ATTACHED TO THE DOCUMENT 12ESCRIBED T RIGHT; Title or Type of Document Number of Pages Date of Document Signer(s) Other Than Named Above: "Exhibit D" to Loan Agreement Page 7 of 9 *z%0 4-96Agree:Wa11ue:EWjVtD tttS 96-523 W29196 STATE OF CALIFORNIA ) ss COUNTY OF 3 On _ before me, (name, title, e.g., "Jane Doe, Notary Public"), personally appeared (name(s) of signer(s)), personally knoi%m to be -- OR -- proved to me on the basis of satisfactory evince to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that helshelthey executed the sarne in hislltcr/thcir authorized capacity(ics), and that by I:is/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 Band and official seat. (Signature of Notary) !APACITY CLAIMED BY SIGNER; Individual Corporate Ofl'ecer(s): Title(s) Partner(s): _ Limited General Attorney -in -Fact Trustee(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Pcrson(s) o: Entity(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. TIEIIS CERTIFICATE Title or Type of Document MUST BE ATTACHED 10 THE DOCUMENT Number of Pages DESCRIBED_ Date of Document AT RIGHT: Signers) Otlier Than Named Above: "Exhibit D" to Loan Agreement Page 8 of 9 4'4lp:4-96Agree: W al lace:Exiiib itD RLS 95-523 W29M EXHIBIT A LEGAL DESCRIPTION OF PROPERTY [To Be Inserted] LEGBL DESCRIPTION EXHIBIT "A" PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to'� all of the 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 'I 25, 1994 as Instrument No. 94-0525335 of official Records of orange County, over Lot 1 of 1! Tract No. 14828, in the -city of Huntington Beach, County of orange, state of California, j as per map filed in Book 706, Pages 27 to 29 of Miscellaneous Maps, in the office of the.; county Recorder of said County. j Excepting therefrom all oil, petroleum, asphaltum, gas, minerals and other hydrocarbon ! substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Deeds, and in various other deeds of record. PARCEL 2: Unit No. 22 consisting of certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. Parcel 3: non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park villas, recorded August 25, 1994 as Instrument No. 94-0525336 of official Records. Parcel 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas6defined, depicted and assigned on the Plan. I "Exhibit D" to'Loan Agreement Page 9 of 9 4's1G:4-9GAgree: W al lace: ExhibitD RLS 96-523 7/29/96 List of Down Payment Assistance Borrowers at Pacific Park Villas '� :-..-ATTACHMENT #3 RCA ROUTING SHEET INITIATING DEPARTMENT: EconomicDevelopment ment SUBJECT: Transferability of Pacific Park Villas Down Payment Assistance Loans COUNCIL MEETING DATE: May 17, 1999 RCA ATTACHMENTS STATUS Ordinance wlexhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the gLtx Attome Not Applicable Subleases, Third Party Agreements, etc. (Approved as to form by City Attome Not Applicable Certificates of Insurance (Approved by the Qy Attome Not Applicable Financial Impact Statement Unbud et, over S5,000 Not Applicable Bonds !f applicable) Not Applicable Staff Report If applicable) Not Ap2licable Commission, Board or Committee Report If applicable) Not Applicable Finding s/Conditions for Approval and/or Denial Not A licable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FOR RDED Administrative Staff Assistant Qy Administrator(Initial) City Administrator(initial) City Cleric EXPLANATION FOR RETURN OF ITEM: RCA Author: Duran at extensionl529 cl --9 REMIDING REOUESTED BY G01ImHESITAL LAWYERS TITLE Co. DECLARATION OF CONDITIONS- COVENANTS AND RESTRICTIONS FOR PROPERTY RECORDING REQUESTED BY — -- - - ---- - — --� AND WHEN RECORDED MAIL TO: Recordea in the county of orange, California Gary L. Granville, Clerk/Recorder 996OW443 f 1.25am 04/12/96 005 10006272 10 24 D02 141 7.00 33.00 0.00 0.00 0.00 0.00 (Space above for Recorder's use.) a THIS DECLARATION OF CONDITIONS, COVENANTS AND RESTRICTIONS FOR CZ) PROPERTY (the "Declaration") is made by and between 1ULIE 1i'EINFELD (the "Covenantor") anfiHE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public 1 � body corporate and politic (the "Agency" or "Covenantee") as of the date set forth below. a RECITALS A. Covenantor and the Agency have entered into a certain Loan Agreement dated April 9, 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 coverants, 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 - Pagel of 9 4 S(is4-46.1�ce:1�-[:1\1l•:L.I7:F•.xti�it'J RIS 96.170 314.96 1. Aflyrdabilir Covenants. Covenantor agrees for itself, and its successors and assigns, and every successor to Covenantor's interest in the Property, or any part thereof that for thirty (30) years from the date of recording of the Deed of Trust in favor of the Agency regarding the Property (the "Expiration Date"): (a) The Property shall only be owned and occupied by Convenantor or by other persons or families of "Moderate Income." "Moderate Income" shall mean persons or families earning One Hundred Twenty Percent (120%) or less of Orange County median income, adjusted for appropriate family size. (b) The Property shall be kept available at Affordable Housing Cost (as defined below) to the Covenantor or other persons or families of moderate income. Affordable Housing Cost shall mean, as to each person or family of low or moderate income, that purchase price which would result in monthly housing payments which do not exceed an amount under any currently prevailing conventional home mortgage lending rates applied by any reputable institutional home mortgage lender, or the lending rates of any government -subsidized or special mortgage program for which such person or family qualifies and has obtained a first trust deed loan, which do not exceed thirty-five percent (35%) of One Hundred Ten Percent (110%) of the Orange County monthly median income for those persons and families of moderate income (as determined by the United States Department of Housing and Urban Development) earning between Eighty Percent (80%) and One Hundred Ten Percent (I 10%) of the Orange County monthly median income, and Thirty -Five Percent (35%) of the monthly median income of any person or family of moderate income which earns more than One Hundred Ten Percent (110%) and not more than One Hundred Twenty Percent (120%) of the Orange County median income. (c) The covenant contained in this Section 1 shall run with the land and shall automatically terminate and be of no further force or effect upon the Expiration Date. 2. Transfer of Propert . 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 dousing 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 ' t Page 2 of 9 41s.0:4-96Agrec;WElti FELD:ExhibitD RLS 96-170 3114."96 the Covenantor shall not be obligated to incur any out-of-pocket costs in connection there%%ith, 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. Coveriiktoor 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 u to Page 3 of 9 44�o:4-96Agm:WEI\FEiD: ExhibitD RLS 96.170 3114.'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 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 FTr_Benefit of City and Aaenc}►. 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 Page 4 of 9 4's G:4-96Agree:%%EItiFELD:ExhibitD RLs 96-170 3/14P96 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 9t:h day of April , 19 96 . COVENANTOR �Xll; OZ /I Old Zie weinfe APPROVED AS TO FORM: I jr v - �gency Counsel Page 5 of 9 4`s'G:4-96Agrcc;WEI.\FEL ):ExhibitD RLS 96-170 314.96 STATE OF CALIFORNIA ) } ss COUNTY OF =age On- April 9,_1996 , before me, Linda J. Carrpbell (name, title, c.g., "Jane Doe, Notary Public"), personally appeared Julie Weinfeld (name(s) of signer(s)), personally kno%vn to be -- OR — X proved to me on the basis of satisfactory evidence to be the person(s) -*N•hose namc(s) is/are subscribed to the «ithin instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the persons) acted, executed the instrument. s h nd Lgalspal LINDA J. Cs' 4PT ELL _ m 4ptj COX.M 010453U QT7 GRANM CXXI ri MY Cbm. Erbe CM rs. t$ss D CAPACITY CLAIMED BY SIGNER: Individual Corporate Officer(s): Tidc(s) Partncr(s): Limited General Attomey-in-Fact Trustcc(s) Guardian/Conservator Other SIGNER IS REPRESENTING: Name of Pcrson(s) or Entity(ics) (Signatur of Notary) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE - MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT: 4`s 0:4.96Aget:WE1tiFELD.Exhibi1D RLS 96-170 3/14.196 Title or Type of Document Number of Pages Date of Document Signcr(s) Other Than Named Above: Page 6 of 9 9402210-A GOVERNMENT CODE 27361.7 I certify under penalty of perjury that the notary seal on the document to which this statement is attached reads as follows: Name of the Notary: Linda J. Campbell Date Commission Expires: December 20, 1998 County Where Bond is Filed: Orange Commission No.: 1045344 Manufacture/Vendor No.t HBRl Place of Execution: Irvine, CA. Date: April 11, 1996 Signature STATE OF CALIFORNIA ) COUNTY OF ) On , before me, (name, title, e.g., "Jane Doe, Notary Public"), personally appeared (namc(s) of signcr(s)), personally known to be -- OR -- proved to me on the basis of satisfactory evidence to be the person(s) «-hose name(s) is/arc subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by hislher/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 rLAINIED BY SI NER: Individual Corporate Officer(s): Partncr(s): Attorney -in -Fact Trustec(s) Guardian/Conscrvator Other Titic(s) Limited General SIGNER IS REPRESENTING: Name of Pcrson(s) or Entity(ics) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. TI•IZS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT: 4 ,s1G:4-96,igra: WEI\ FELD: Exhibit D RLS 96-170 344.'96 Title or Type of Document Number of Pages. Date of Document Signer(s) Other Than Named Above: " rt-Ag— Page 7 of 9 STATE OF CALIFORNIA ) } ss COUNTY OF ) On , before me, (name, title, e.g., "Jane Dx, Notary Public"), personally appeared (namc(s) of signer(s)), personally known to be -- OR -- proved to me on the basis of satisfactory evidence to be the person(s) whose namc(s) is/arc subscribed to the within instrument and acknowledged to me that hclshelthey executed the same in his/hcr/thcir authorized capacity(ics), and that by his/her/their signaturc(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. (Signature of Notary) CAPACITY CLAIMED BY SIGNER: Individual Corporate Officcr(s): Titic(s) Partner(s): Limited General Attorney -in -Fact Trustee(s) Guardian/Conscrvator Other SIGNER IS REPRESENTING: Name of Pcrson(s) or Entit)•(ies) ATTENTION NOTARY: Although the information requested below is OPTIONAL, IT COULD PREVENT FRAUDULENT ATTACHMENT OF THIS CERTIFICATE TO ANOTHER DOCUMENT. THIS CERTIFICATE MUST BE ATTACHED TO THE DOCUMENT DESCRIBED AT RIGHT: rts�G:4-96ASme.WE1�FELa:E W ibitD R1S 96.170 3114."96 Title or Type of Document Number of Pages Date of Document Signcr(s) Other Than Named Above: " ftrcemmt Page 8 of 9 LEGAL DESCRIPTION EXHIBIT "A" PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to: all of the common Area defined in Declaration referred to below and described in thet Condcminium 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 I of i 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 Naps, in the office of the.l 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. 10 consisting of certain airspace and surface elements, as shown and described in the condominium Plan referred to in Parcel 1 above. Parcel 31 non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encrcachment, support, maintenance, repairs and for other purposes, all as described in that certain Declaration of covenants, Conditions and Restrictions and Reservation of Easerente for Pacific Park villas, recorded August 25, 1994 as Instrument Ho. 94-0525336 of official Records. Parcel 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areasidefined, depicted and assigned on the Plan. i I EXINDIT A LEGAL DESCRIPTION OF PROPERTY ITo Be Inserted] "£xtibil D" In-Agrem=t Page 9 of 9 4V-90:4-96Agree:'%'Er%TELD: ExhihitD RLS 96-170 3! 14- 96 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF cALIEWN-IA COU14TY OF _ORANGE -- On APRIL 9, 1996 }SS. before me, the undersigned, personally appeared JULIE WEINFELD personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) vrhos�? name(s) is/are subscribed to the within instrument and acknowledged to me that helshelthey executed the same in his/her/their authorized capacity(ies), and that by hisliterllheir signature(s) on the instrument the person(s) or the entity upon behalf or which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Sigrtrltur4_n /e_ LINDA J. PBELL (This area for offlcfaf notarfaf sea() 41 LINDAJ. WIPS LL z CC COMI.# 1045344 m K=ARY PUr1E.IC . C 3tMWA _ Y arwNM o)LNnf try Comm, Exp W cEC~ = I= rrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrrr OPTIONAL rrrrrrrirrrrrrrrrrrrrrrrrrrrrrrrrrrrrr Though the data below are not required by law, they may prove valuable to persons retying on the document and could prevent the fraudulent reattachment or this form. Capacity Claimed By Signer ❑ Individual ❑ Corporate Officer Tltles(s) ❑ rariner(s) ❑ Attorney -in -Fact ❑ Trustee(s) ❑ Guardian/Conservator f] Other: Signer Is Representing: Narnn of Persons) or Entlty(les) ❑ Limited ❑ General Description or Attached Document Tllle or Type of Document Number of Pages Dale of Document Signor(s) Other Than Named Above V1 CouncillAgency Meeting Held: t— DeferredlContinved to: )(Approved ❑ Conditionally Approved ❑ Denied City Clerk's Sign re • Council Meeting Date: 411196 Department ID Number. ED 96-25 CITY OF HUNTINGTON BEACH REQUEST FOR REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE CHAIRMAN AND REDEVELOPMENT AGENCY MEMBERS r SUBMITTED BY: MICHAEL T. UBERUAGA, Executive ctor / PREPARED BY: DAVID C. BIGGS, Director of Economic Devleopmen SUBJECT: DOWN PAYMENT ASSISTANCE PROGRAM PARTICIPANT APPROVAL FOR PACIFIC PARK VILLAS PROJECT (Talbert - Beach Project Area) Statement of Issue, Funding Sourer. Recommended Action, Alternative Action(s), Analysis, ironmental Status, Attachments) 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. Funding Source: Redevelopment Agency Housing Set -Aside Funds, Account Number E TX-ED-923-7-75-00. Recommended Action: Motion to: Approve the borrower listed on the attached by name, the amount of the loan and the specific property subject to trust deed and authorize the Chairperson and Agency Clerk to execute the loan documents between the Agency and the participant as prepared by the City Attorney. Payment to be made payable to Tiempo Escrow on behalf of Julie Weinfeld. Altemative Action(s): Do not approve the participants. br =153 ��3�3r I// REQUEST ER REDEVELOPMENT AGENdY ACTION MEETING DATE: 411196 DEPARTMENT ID NUMBER: ED 96-25 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. Environmental Status: Attachment(s): 1. Prospective Borrower 2. Loan Agreement 3. Promissory Note 4. Deed of Trust with Assignment of Rents 5. Declaration of Covenants 6. Disclosure Statement 7. Notice of Right of Recission 8. Certificate of Proposed Transferee 9. Lending Instructions RAA96-25.DOC -2- 03120/96 3:45 PM ATTACHMENT #1 REQUEST�6R REDEVELOPMENT AGEI�6 ACTION MEETING DATE: 411196 DEPARTMENT ID NUMBER: ED 96-25 DOWN PAYMENT ASSISTANCE PROGRAM Location of Property Loan Name Amount Subiect to Trust Deed 96-03 Julie Weinfeld $35,000 18061 Joyful Lane, #205 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. RM96 25.DOC -3- 03/20196 3:04 PM M ---------- ----- ------ 1S093 Beach Boulevard • Huntington Beach, CA 92648 • (714) 643-0101 * FAX (714) __ City of Huntington Beach Dates April 9, 1996 Attention: Connie Escrow No.: 8953-c 2000 Main Street, 2nd Floor Huntington Beach, California Property Address: 18061 Joyful Lane, 005, Huntington Beach, Ca 92648 zn connection with the above -numbered escrow, we are enclosing herewith the following: Loan Documentaticn executed by Buyer and Seller Acknowledgment of Lenders instructions Capy of Note and Deed of Trust on Buyers new 1st T.D. Please prepare your approval and acceptance letter and contact the undersigned for pick up of the City Check and documents. if you should have any questions regarding the above, please do not hesitate 'to contact the undersigned. Thank you for your cooperation in this matter. si erelyNOTE: CUR NEW LENDER IS READY TO FUND THE NEW LOAN ON THURSDAY. 04/11/96. A. Wt. TO PICK UP CITY CHECK AND 0Lind4aqLwj;.cbell YOURDOCUME'6TIS..... Escror 0� / M■W1m�® 'ens • • • _ �r�� ............................................................. .------------------------------------------------------------------------------- 19C93 Beach Boutevard • Huntington Beach, G4 92648 9 (714) 843-0101 ! FAX (714) = -_ APRIL 5„ 1996 INVOICE CITY OF H=INGIKU BEACH 2000 MAIN STREET HGNTINGTON BEACH, CALIFORNIA 92648 ATTENTION: DAFT BRUENING RE: JULIE WEINFELD PROPERTY ADDRESS: 18061 JOYFUL LANE, 1205, IRML INGTON BEACH, CA. PLEASE ACCEPT THIS LETTER AS YOUR AUTHORIZATION TO RELEASE CITY FUNDS, IN THE AMOUNT OF $35,000.00, FOR DEPOSIT AND CREDIT TO: TIEMPO ESCROW, INC. 19093 BEACH BOULEVARD HUNTINGTON BEACH, CALIFORNIA 92648 FOR DEPOSIT AND CREDIT TO ESCROW NO: 8953-C WE ARE IN RECEIPT OF LOAN DOCUMENTS FOR JULIE WEINFELD FOR THE CITY 2ND TRUST DEED LOAM. PLEASE CONTACT THE UNDERSIGNED Mai SAID CHECK IS READY FOR PICK UP. ELY, .�A LTNDA J. CAMPBELL ESCRM; OFFICER ME rirriririririrr n r n iriririrrrrrirrrr n rrrrrrrirr n rrr n rrrrririririr�rrirru irrrrrr�iriririririrrrrrrrirrrrrri a rrrrrrrrrr n rrr�r�r a irrrrrrr n rrrr� 19093 Beach Boulevard • Huntington Beach, CA 92648 * (714) 843-0101 • FAX (714) 843-9949 City of Huntington Beach Date: April 9, 1996 Attentions Connie Escrow No.: 8953-C 2000 Main street, 2nd Floor Huntington Beach, California Property Address: 18061 Joyful Lane, #205, Huntington Beach, Ca 92648 In connection with the above -numbered escrow, we are enclosing herewith the following: Loan Documentation executed by Buyer and seller Acknowledgment of Lenders Instructions Copy of Note and Died of Trust on Buyers new 1st T.D. Please prepare your approval and acceptance letter and contact the undersigned for pick up of the City Check and documents. If you, should have any questions regarding the above, please do not hesitate to contact the undersigned. Thank you for your cooperation in this matter. sirgerely, NOTE: OUR NEW LENDER IS READY TO FUND THE NEI LOAN CN THURSDAY, 04/11/96. WE NEED TO PICK UP CITY CHECK AND Linda J. C pbell YOUR DOCQ]MENTS..... Escrow of icer j ACIINOF►tL.EDGEO BY: LINi7A J, BELL — TI INws:�:, • •'; �OWr C. •;,.,:;:'. .4 CITY OF t-IUN-RN-(,Toi'4 (3EAC:I I Y:3 WA 19U HUNTINloQN kAA A 1 A1IFUNNiA a1UAa DAIC I>1��1R1PDr GROSS AMOUNT DISCOUNT NET AMOUNT 04-10-96 221035 a HEINfELD €TXED92377 35000.00 35000.00 TOTALS ► 35(j=.oll 00 35tlnn.DU }SAY TO THE Uf iUF.I I OF TI EMPU ESCROW INC 19093 BEACH BL HUNTINGTON BEACH CA 92648- CITY OF HUNTINMON_ BEACH P.O. BOX 190 HUNTINGTON BEACH, CALIFORNIA 92648 UAIE N(ML*k 04-10-96 356702 !&-3sJJ1220 NUNL'f_R 356 702 \ NF'T AMC)t1NT � S�I'�q S#*�350f30.00 VOID UNLESS (VCZXNTE0 FOR ENCASE.{ENT Cl CiF HU�ITiNG1 I�' \C H Ole WITHNJ 90 DAYS FROM DATE OF ISSUE r, SANWA SANK CALIFORNIA47 —/� !lUNT1 BEACH OF 688F3 1 WARNER AVENUE i. HUNTiNGTON SFACH. CA 92$47 46 3 56 70 2d' 1: 1 2 200 3 5161: 2094is,00 209L' r �l REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH LENDING INSTRUCTIONS TO: Tiempo Escrow 19093 Beach Blvd. Huntington Beach.. CA 92648 RE: Your Escrow No. 96-03 Preliminary Recitals 1. Julie Weinfeld (hereinafter sometimes referred to as "Buyer") has applied to Redevelopment Agency of the City of Huntington Beach (hereinafter sometimes referred to as "Agency" or "Lender") for a loan of $35,000 to finance the purchase of certain real property known as and located at 18061 Joyful Lane, 4205, Huntington Beach, California 92648, which property is hereinafter sometimes referred to as the "Subject Real Property." Lender has been advised that Buyer has opened the above -referenced escrow with you for the purpose of completing the purchase of the Subject Real Property. In order to secure performance or fulfillment of the terms and conditions of the loan for which Buyer has applied, and to facilitate the making of the loan if appropriate, Lender, reserving the right to amend or revoke these instructions, unilaterally and without prior notice, at any time, hereby authorizes and instructs you as follows: Deposit Clause 2. Lender had enclosed herewith the following: (a) A loan agreement providing the terms and conditions by which the Borrower may participate in the Lender's program to assist low or moderate income households to purchase housing which includes an equity sharing provision; (b) A promissory note providing for the repayment of the principal amount of 535,000 plus accrued interest on the unpaid balance thereof at the rate of 5 percent (5°l0) per annum, due upon the thirtieth anniversary of the Loan, or earlier according to the terms and conditions of the note; (c) A second deed of trust, with a rider, conveying the Subject Real Property to City of Huntington Beach in trust for the purpose of securing performance of the obligations evidenced by the above -described promissory note and certain other obligations, to be executed by Buyer for the benefit of Lender; (d) A "Declaration of Conditions, Covenants and Restrictions for Property," in which Buyer agrees that the Subject Real Property shall only be owned by Buyer or other persons or families of low or moderate income available at an affordable housing cost, as those terms are 4's.G:4-96Agnc:WEI\FELA: Lendinst RLS 96-170 3/14)96 defined in California Health &: Safety Code Sections 5093 and 50052.5, and that Buyer 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 Lender and the City of Huntington Beach; (e) The disclosure statement setting forth the conditions upon which the Lender will make the Loan; (0 The notice of the Buyer's right to rescind required by the Truth -in -Lending Act; (g) An expiration of rescission period form verifying the delivery of the notice of right to rescind; and (h) The Certificate of Proposed Disclosure, which must be signed by the Buyer, delivered to the current owner for his signature, and when fully executed, copies are to be delivered to Lender, Buyer, and owner. Execution of Loan Instruments and Documents 3. When you have received these instructions, please have Buyer execute immediately all loan instruments and documents that have been deposited with you for execution by Buyer. All of the loan instruments and documents that have been deposited with you for execution by Buyer are to be executed by Buyer on the same date. Buyer must execute all loan instruments and documents that they are required to execute by signing his/her/their name(s) exactly as it appears or will appear on the grant deed that will vest title in Buyer and on the enclosed deed of trust. Insurance Requirements 4. We require, as a condition of making the loan, that you hold for delivery to us an original policy of insurance, duly issued and in effect, providing fire and extended special coverage insurance on the Subject Real Property in an amount not less than S 6,000.00 and complying with the following requirements: (a) The policy shall be issued by an insurer that is admitted to transact insurance business in California; (b) The policy shall either be a continuous policy or a policy with an unexpired term of at least one year, and the premium for the initial one year, following the making of the loan must have been paid; (c) The policy shall name Buyer as an insured and shall contain a lender's loss payable endorsement naming Lender as the second loss payee; 2 4's:0.4-961kg=:WEr\FEL):L4rrdinsI RLS 96-170 3114.96 (d) The policy shall not have a deductible that exceeds $500. Requirement of Cash Downpayment 5. We require, as a condition of making the loan, that 3% of the purchase price of the Subject Real Property be paid by Buyer, in cash or its equivalent, from Buyer's own funds. Compliance With Truth -In -Lending Requirements 6. We require, as a condition of making the loan, that prior to the disbursement of any loan proceeds you effect compliance with the disclosure and notice requirements imposed by the Federal Truth -in -Lending Act and allow the three-day recission period required by the Truth - in -Lending Act to expire. You shall not request or disburse any loan proceeds unless and until you have complied with each of the following conditions: (a) You shall deliver one copy of the enclosed Disclosure Statement to Buyer at the time Buyer executes the enclosed promissory note, deed of trust and the other enclosed loan documents; (b) At the time a copy of the Disclosure Statement is delivered to Buyer, you shall have Buyer sign another copy of the Right to Rescind Statement, in the space provided for that purpose, to acknowledge receipt of the statement; (c) As soon as Buyer has executed the enclosed loan instruments and documents and you have delivered the copies of the Disclosure Statement and Notice of Right to Rescind and had Buyer acknowledge receipt of the statement, you shall deliver to us the copy of the Disclosure Statement and Notice of Right to Rescind and had Buyer acknowledge receipt of the statement, you shall deliver to us the copy of the Disclosure Statement that Buyer has signed and the copy of the Notice of Right to Rescind that you have retained; and (d) You shall not request or disburse the loan proceeds, or any part of them, until the fourth business day after the date on which the Disclosure Statement is delivered to Buyer or the fourth business day after the date on which the Notice of Right to Rescind is delivered to Buyer, whichever is later. Conditions Precedent to Request for Loan Funds 7. You may request us to deposit the proceeds of the loan with you when, and only when: (a) Buyer has properly executed the enclosed loan agreement promissory note without modification or deletion and you have delivered the original of the executed loan agreement to us; 3 Vs:G:4-96.kgrcc:WEI\FELD:Lmdiiut RLS 96-170 3114.96 (b) Buyer has properly executed the enclosed promissory note without modification or deletion and you have delivered the original of the executed loan agreement promissory note to us; (c) Buyer has properly executed the enclosed deed of trust without modification or deletion and it is in recordable form; (d) Buyer has properly executed the enclosed Declaration of Condition, Covenants, and Restrictions without modification or deletion and it is in recordable form; (e) You have delivered a true and complete copy of the executed deed of trust and Declaration of Conditions, Covenants and Restrictions to us and are authorized and prepared to record the original deed of trust when you receive and are authorized and prepared to disburse the loan proceeds; (f) You have delivered to us true and complete copies of all of the escrow instructions that you have received from Buyer and the other parties to the above escrow, including any amendments or supplemental instructions, and any assignments or demands that have been deposited with or delivered to you in connection with the escrow; (g) You have delivered to us a copy of the preliminary title report obtained for this transaction; (h) Continental Lawyers Title Company is prepared and obligated to issue in our favor, on the recordation of the enclosed deed of trust, a standard form American Land Title Association lender's policy in the amount of $35,000, insuring that title to the Subject Real Property is vested in Buyer and that the enclosed deed of trust is an encumbrance against the Subject Real Property that is subject and subordinate only to First Deed of Trust; (i) You have delivered to us a written confirmation verifying the commitment of Continental Lawyers Title Company to issue the policy of title insurance required by these instructions on the recordation of the enclosed deed of trust; 0) You have received in escrow, and are authorized and prepared to deliver to us on recordation of the enclosed deed of trust, an original policy of fire and extended special coverage insurance compl31ng with the requirements set forth in T 4; (k) Buyer has deposited in escrow, to be applied toward payment of the purchase price for the Subject Real Property, the sum of $6,000.00 and has otherwise complied with the downpayment requirements set forth in f 5; 4 4's-G:4-96Agmc:WEIN' FELD-Undinst RLS 96.170 1.'14.'96 k.J � (1) You have delivered to us a true and complete copy of a written certification from a licensed structural pest control operator pursuant to Business and Professions Code Section 8519 that the residence and other improvements located on the Subject Real Property are free from evidence of active infestation or infection in the visible and accessible areas; (m) You have delivered to Buyer, in accordance with the requirements set forth in S 6, one copy of the enclosed Disclosure Statement and two copies of the enclosed Notice of Right to Rescind; (n) More than three full business days have elapsed since the date on which the Disclosure Statement was delivered to Buyer, and more than three full business days have elapsed since the date on which the Notice of Right to Rescind were delivered to Buyer; (o) You are otherwise authorized and prepared, under the instructions you have received from all parties, to close the above -referenced escrow within 24 hours after the loan proceeds are deposited with you. (p) There shall be no blanks on any documents at close of escrow. Recording of Deed of Trust S. When all of the conditions precedent to requesting the deposit of the loan proceeds, as set forth in % 7, have been performed or fulfilled and the loan proceeds have been deposited with you pursuant to your request, you are authorized and instructed to record forthwith the grant deed conveying the Subject Real Property to Buyer, our enclosed deed of trust, our enclosed Declaration of Conditions, Covenants, and Restrictions and to close the above -referenced escrow. You are instructed to record our enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions immediately after you record the grant deed conveying the Subject Real Property to Buyer. Issuance of Title Insurance Policy 9. As soon as you have recorded our enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions, you are instructed to cause to issue and to deliver to us a standard form American Land Title Association lender's title insurance policy in the amount of $35,000, insuring that title to the Subject Real Property is vested in Buyer and that the enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions are encumbrances against the Subject Real Property that is subject to and subordinate only to the First Trust Deed_ Conditions Precedent to Disbursement of Loan Proceeds 10. You are authorized to disburse the loan proceeds that we deposit with you when, and only when: d a:O:4.96Agres:WEitiFELD:lt"nA RLS 96-170 3.'14.96 (a) All of the conditions precedent to requesting the deposit of the loan proceeds, as set forth in � 7, have been performed or fulfilled. (b) You have recorded the grant deed conveying the Subject Real Property to Buyer, the enclosed deed of trust and Declaration of Conditions, Covenants, and Restrictions; and (c) You have caused to issue and deliver a standard form American Land Title Association lender's title insurance policy that complies with the title insurance requirements set from in Ti 7(h). Requests and Notices 11. The request for the loan proceeds and all other requests and notices directed to Lender shall be in writing and shall be personally delivered or sent by certified or registered mail, postage prepared, return receipt requested to Redevelopment Agency of the City of Huntington Beach, Attn: Agency Clerk, 2000 Alain Street, Huntington Beach, CA 92648. Requests shall be deemed to have been made and notices shall be deemed to have been given only when they have been received by the City Clerk. Delivery of Instruments and Documents 12. All instruments and documents that are to be delivered to Lender shall be personally delivered or sent by certified or registered mail, postage prepaid, return receipt requested to Agency Clerk, Redevelopment Agency of the City of Huntington Beach, 2000 Alain Street, Huntington Beach, CA 92648. Instruments and documents shall be deemed to have been delivered only when they have been received by the Agency Clerk. Nonresponsibility for Escrom, Fees and Charges 13. Lender shall have no responsibility or liability for any of your escrow fees or charges or for any fees, charges, costs, or expenses incurred by you or any other party to the above -referenced escrow in complying with these instructions, obtaining the loan for which Buyer has applied, or otherwise processing or closing the above -referenced escrow. Sole Instructions 14. These instructions constitute the complete escrow instructions, and the only escrow instructions, of Lender and shall revoke and supersede any prior oral or written instructions you may have received from Lender. Waiver and Deviations from Instructions 15. Lender may waive, or may permit deviations from, any term or condition of these instructions. However, a term or condition of these instructions can only be waived by means of a written waiver signed by an authorized officer, agent, or employee of Lender. Deviation from these instructions will only be permitted if it is specifically authorized in writing by an authorized 6 4`a:G:4-96Avw:WE1%FE1D:l AinSt RIS 96•170 3; 14.96 M officer, agent, or employee of Lender. Any purported oral waiver, and any purported oral authorization to deviate from the terms of these instructions, shall be ineffective and invalid. Amendments and Supplemental Instructions 16. Lender shall have the right to amend or supplement these instructions at any time �rlthout prior notice and without the agreement or consent of any other party or parties. However, these instructions may only be amended, supplemented, or modified by means of a written amendment or supplement that has either been signed or approved in writing by an authorized officer, agent, or employee of Lender. No written amendment, supplement, or modification of these instructions shall be effective or valid unless and until it has been deposited with you and unless and until an authorized officer, agent, or employee of Lender has either signed it or approved it in a signed writing that has been deposited with you. Any purported oral amendment, supplement, or modification of these instructions shall be ineffective and invalid. Revocation and Cancellation or Instructions 17. (a) Lender shall have the right to revoke and cancel these instructions at any time without prior notice and without the agreement or consent of any other party or parties. If Lender exercises its right to revoke and cancel these instructions, you shall return to Lender forthwith, upon demand, any and all funds, instruments, documents, and other items that Lender has deposited with you. (b) If the above -referenced escrow is canceled by any other party or parties, you shall return to Lender forthwith any and all funds, instruments, documents, and other items that Lender has deposited with you. Time Is of the Essence 19. Time is of the essence with respect to each and every provision of these instructions and in the performance, occurrence, fulfillment, or satisfaction of each and every term and condition of this escrow and these instructions. 7 4's:G:4-96Agrce:R'Ei\FELD:Lendirut RLs 96-170 3114.96 Request for Acknowledgment of Acceptance I9. Please acknowledge your receipt and acceptance of these instructions, and your agreement to hold and dispose of any funds, instruments, documents, or items that Lender deposits with you in accordance with the terms and conditions of these instructions, by signing the acknowledgment and acceptance set forth below on the enclosed copies and returning one signed copy to Lender. Dated: _ V — V . _ Redevelopment Agency of the City of Huntington Beach Acknowledgment and Acceptance by Escrow Holder Tiempo Escrow acknowledges receipt of the foregoing instructions and the items listed in Paragraph 2 of those instructions. Tiempo Escrow agrees that any funds, instruments, documents, or other items deposited by the Redevelopment Agency of the City of Huntington Beach shall be held and di°I)posed of in accordance %%ith the terms and conditions of the foregoing instructions and such amendments or additional instructions as may be submitted by the Redevelopment Agency of the City of Huntington Beach. ESCROW HOLDER Tiem Escrow I �& Y _ ] Linda_Jt. Campbel _ (typed name] Escrow Officer (title] 8 4'-4:G:4-96Ag=:WEI\'FEL.D:L Wiest RLS 96-170 3114.'96 LOAN AGREEMENT THIS LOAN AGFXEMENT (the "Agreement") is made this 9th day of April ,19 96 by and between JULIE WEINFELD ("Participant") and the REDEVELOPMENT 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 18061 Joyful Lane. 4205 . Huntington Beach, California, and more particularly described in Exhibit A attached hereto and incorporated herein (the "Property"). B. Participant requires assistance to purchase the Property and would not be able to purchase the Property without such assistance. Participant is a person or family of low or moderate income and currently earns less than 120% of the current annual median income for the Orange County area, as those terms are defined by California Health and Safety Code Section 50093. C. Participant has represented to the Agency that Participant and Participant's immediate family intend to reside in the Property at all times throughout the term of this Agreement. D. The Agency desires to assist persons of low and moderate income to purchase residential property to increase, improve, and preserve low and moderate income housing available at an affordable housing cost within the City of Huntington Beach (the "City"). E. The Agency wishes to lend, and Participant wishes to borrow, Program funds to assist Participant to purchase the Property upon the terms and conditions set forth herein. NOW, THEREFORE, for good and valuable consideration the parties agree as follows: 1. Agency Loan. The Agency shall loan to Participant (the "Agency Loan") the amount of Thirty-five Thousand Dollars ($35,000.00) subject to the conditions and restrictions set forth herein and those set forth in the Promissory Note and the Disclosure Statement for the Program. The Agency Loan shall be paid to the seller of the Property (the "Seller") by the Agency through deposit of the Agency Loan proceeds into escrow with Tie= Face, rnc_ _ (the "Escrow Agent") (Escrow No. _ 8953-C ). 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 Loan Agreement Page 1 ors 4s1G:4-96AGREE-.WEI?:FEL ):LOXN AGREE RLS 96-170 3114.'96 promissory note in favor of the Agency as holder, in the amount of the Agency Loan, with simple interest at five percent (50/10) 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 PropM. Participant shall maintain the improvements on the property in a manner consistent with community standards and in a manner which will uphold the value of the Property, and shall keep the Property free from any accumulation of debris and waste materials. Participant agrees to comply with any and all covenants and agreements established by any homeowner's association or other regulatory entity recognized by area property owners and comply with all applicable federal, state and local laws. 3. Due on Sale. Transfer or Refinancing. Participant agrees to notify the Agency not less than thirty (30) days prior to (i) the sale or transfer of the Property or (ii) any refinancing of the lien of the Agency Deed of Trust or any lien to which the lien of the Agency Deed of Trust is subordinate (the "First Mortgage"). The Agency Loan and all interest accrued thereon shall be due and payable upon (i) such sale or transfer, (ii) the refinancing of the First Mortgage for a loan amount in excess of the then current loan balance or for an amortization period longer than the loan secured by the First Mortgage, or (iii) Participant is no longer an occupant of the Property pursuant to Section 5 of this Agreement or is in material default of any other obligation pursuant to this Agreement. At the request of Participant, the Agency may, in its sole discretion, waive the requirements of this Section 3 and extend the term of the Agency Loan. 4. Equity Sham. 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: Prior to fifth anniversary of the Agency Deed of Trust: 2. After fifth anniversary but prior to sixth anniversary: 3. After sixth anniversary but prior to seventh anniversary 4. After seventh anniversary but prior to eighth anniversary: Loan Agreement Page 2 of 8 4`ii0G 4-96AGREE:WEINFELD:L0,1..NAGREE RLS 96-170 3/i4!96 fifty percent (50%) forty-eight percent (48° o) forty-six percent (46%) 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%) 10. After thirteenth anniversary but prior to fourteenth anniversary: thirty-two percent (32%) 11. After fourteenth anniversary but prior to fifteenth anniversary: thirty percent (30%) 12. After fifteenth anniversary but prior to sixteenth anniversary: twenty-eight percent (28%) 13. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) Loan Agreement Page 3 of 8 4's�Cs:4-96AGREE:WEItiFELD:LOA. AGREE RLS 96-170 344,96 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 anniversary: eight percent (8%) 23. After twenty-sixth anniversary but prior to twenty-seventh anniversary: six percent (6%) 24. After twenty-seventh anniversary but prior to twenty-eighth anniversary: four percent (4%) 25. After twenty-eighth anniversary but prior to twenty-ninth anniversary: two percent (2%) 26. After twenty-ninth anniversary but prior to thirtieth anniversary: one percent (1%) 27. After thirtieth anniversary: zero percent (0%) The "Purchase Price" is the price paid by the Participant to the Seller for Seller's interest in the Property, exclusive of escrow fees, title insurance costs, broker's commissions, loan fees or any other closing or transaction costs. The actual cost to Participant of all capital improvements to the Property made while Participant owned the Property may be added to the Purchase Price if Participant complies with the following: No capital improvements which cost more than two thousand five hundred dollars (S2,500) 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 ,CSG:4-96 %GREE.WEI\FEI.D:LO,%.NAGREE RLS 96-170 3/14'96 A. Equity Share Upon Sale or_Transfer. The Equity Share Amount shall be payable to the Agency upon sale or transfer of the Property to a person or persons (the "Buyer") whose income exceeds 120% of the current annual median income for the Orange County area. If the Buyer does not submit an income verification statement to the Agency, the Buyer shall be deemed to exceed such income limit. If the Buyer does not exceed the aforesaid income limit, the Equity Share Amount shall not become payable. B. ,E�c l=it hare Upon Refinancing or Failure tom( ccM. 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. Qccunancy 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 w'iII be true, correct and complete. Participant acknowledges that the Agency is relying upon Participant's representations that Participant's income does not exceed I20% 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 Servicinct, The Agency may contract with a private lender to originate and service the Agency Loan. S. 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 S 4s�Gs4-96AGREE-.WEt\F'ELD-.L O,tNAGREE R1S 96-170 V14,96 V1 shall only be subordinated to a first lien on the Property held by the Lender or Lender's assigns. In addition, not less than three percent (3%) of the Purchase Price of the Property shall be paid in cash from Participant's own resources and not from the proceeds of a loan. 9. Covenants. Participant and the Agency shall execute and have recorded in the Official Records of Orange County, California, a "Declaration of Conditions, Covenants and Restrictions for Property," substantially in the form of Exhibit D attached hereto and incorporated herein, in which Participant agrees that the Property shall only be owned by Participant or other persons or families of low or moderate income available at an affordable housing cost, as those terms are defined in California Health &: Safety Code Sections 50093 and 50052.5, and that Participant shall not discriminate against any person or group of persons on the basis of race, color, religion, sex, marital status, national origin or ancestry. Such covenants shall run with the land, in favor of the Agency and the City. 10. Non-`Vaiver. Failure to exercise any right the Agency may have or be entitled to, in the event of default hereunder, shall not constitute a waiver of such right or any other right in the event of a subsequent default. 11. Indemnification. The Participant shall defend, indemnify and hold harmless the Agency and the City of Huntington Beach and their respective officers, agents, employees, representatives and volunteers from and against any loss, liability, claim or judgment relating in any manner to the Property or this Agreement. The Participant shall remain fully obligated for the payment of property taxes and assessments related to the Property. There shall be no reduction in taxes for Participant, nor any transfer of responsibility to the Agency or the City to make such payments, by virtue of the Agency Loan. 12. Defaults. Failure or delay by either party to perform any term or provision of this Agreement which is not cured within thirty (30) days after receipt of notice from the other party constitutes a default under this Agreement; provided, however, if such default is of the nature requiring more than thirty (30) days to cure, the defaulting party shall avoid default hereunder by commencing to cure within such thirty (30) day period and thereafter diligently pursuing such cure to completion. The party who so fails or delays must immediately commence to cure, correct, or remedy such failure or delay, and shall complete such cure, correction or remedy with diligence. The injured party shall give written notice of default to the party in default, specifying the default complained of by the injured party. Except as required go protect against further damages, the injured party may not institute proceedings against the party in default until thirty (30) days after giving such notice. Failure or delay in giving such notice shall not constitute a waiver of any default, nor shall it change the time of default. 13. Documents. Participant is aware that the Agency has prepared certain documents to implement the Program and secure repayment of the Agency Loan. Participant has reviewed and agrees to execute the following documents prior to receiving the Agency Loan: Loan Agreement Page 6 of 8 4`i G:4.96AGREE:WETFELD:L ,%.\'AGREE RLS 96.170 3.'14 96 (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 Assurance. 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. Governing Law. This Agreement shall be governed by the laws of the State of California. Any Iegal 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. Ageng May Assign. Agency may, at its option, assign its right to receive repayment of the loan proceeds without obtaining the consent of the Participant. 18. Participant Assignment Prohibited. In no event shall Participant assign or transfer any portion of this Agreement without the prior express written consent of the Agency, which consent may be given or withheld in the Agency's sole discretion. No assumption of the Agency Loan shall be permitted at any time. This section shall not prohibit the Agency's right to assign all or any portion of its rights to the loan proceeds hereunder. 19. Entire Agreement. This Agreement constitutes the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental thereto, and supersedes all prior negotiations, discussions and previous Loan Agreement Page 7 of 8 41,ivG-.4-96AGREE:WEI\ FELD:LA,'1N AGREE RLS 96-170 3/14.'96 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. Date: 1iti 19 Date: , 19 Date: 19 Date: l�91 , 19� ATTEST: Agency Clerk REVIEWED AND APPROVED: 4`a%0:4-96AGIt£E: W EItiFELD:LOYLNAGREE RLS 96-170 X 14.96 "PARTICIPANT" By: Printed Name: JULIE WEINFELD By: Printed Name: By: Printed Name: THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic By: _, _- L,�c Chairman APPROVED AS TO FORM: .(I Agency Counsel 1 I ,-iTED ANM—}1PPROVED:I -.40 Loan Agreement Page 8 of 8 �4wf LEGAL DESCRIPTION EXHIBIT "A" PARCEL 1: An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to all of the Common Area defined in Declaration referred to below and described in the;', Condominium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of Official Records of orange County, over Lot 1 of! Tract No. 14826, 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 Haps, in the office of the county Recorder of said County. j Excepting therefrom all all, 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 Unit No. 10 consisting of certain airspace and surface elements, as shown and described in I the Condominium Plan referred to in Parcel 1 above. Parcel 3:• non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroach.:nent, 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. r Parcel 4: !, Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and assigned on the Plan. i I k1w EXIIIBIT A LEGAL DESCRIPTION OF PROPERTY [To Be Inserted] Exhibit A to Loan Agreement Page I of 1 4 sL4gree:%Iargolis:ExhibiG4-.03/14/96 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF COUNTY OF CALIFORNIA S$. ORANGE On APRIL 9, 1996 before me, the undersigned, personally appeared JULIE WEINFELD personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) isfare subscribed to the within instrument and acknowledged to me that helshelthey executed the same In his/her/their authorized capacity(les), and that by hlsmer/lheir signalure(s) on the instrument the person(s) or the entity upon behalf of which thv person(s) acted, executed the instrument. WITNESS my hand and official seat. 4Signature &wal"'I_ INDA J. VPBELL (Tills area for orflclal notarlal seal) cc VIDA J. CMAP BELL ca .M COM01o4saaa � r�r�Qr At�llC . Clix"-OFIN:A ORA.AM0=41Y MY Ct+rt n Ev*% DEG 20.19M ltfifiiliifiiifffilillifiiiifiilfill [if OPTIONAL 1111if I'Mififfrfiffiiiifffiifirllli 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 ❑ Individual ❑ Corporate Officer ❑ Partner(s) Descriptiaf► of Atlnched Document Titles(s) Title or Type of Document ❑ Attorney -in -Fact ❑ Trustee(s) , ❑ Guardian/Conservator ❑ Other: Signer is Representing: flarna of person(s) or Entlly(les) Cl Limited ❑ General Plumber of Pages Date of Document Signer(s) other Then flamed !Above I ATTACHINIENT #3 EXHIBIT B PROMISSORY NOTE $ 35,000.00 April 9 19 96 Huntington Beach, California 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 la«•ful 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°1o) 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 9t:h 120 26 (thirtieth (30th) anniversary date of this Promissory Note). 3. Acceleration The whole of the Note Amount plus accrued interest and all other payments due hereunder shall become due and be immediately payable to the Holder by the Maker upon the occurrence of any one of the following events: (a) Maker sells or otherwise transfers title to the Property; or (b) Maker refinances any lien or encumbrance to which the Agency Deed of Trust is subordinate for a loan amount which is in excess of the then current loan balance of such prior lien or extends the amortization period of the loan secured by such prior lien; or (c) Maker fails to occupy the Property or to perform any obligation under the Agreement (as hereinafter defined). "Exhibit B" to Loan Agreement Page 1 of 3 4`sW-96AV=: WEr %FELD:Exhibitn RLS 96-170 31496 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. Prenavment 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. b. 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 9th 1996 (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 Llay 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. S. Maker Assignment Prohibited In no event shall Maker assign or transfer any portion of this Agreement without the prior express written consent of the Holder, which consent may be given or withheld in the Holder's sole discretion. Likewise, no assumption of the Agency Loan shall be permitted at any time. This Section shall not prohibit the Holder's right to assign all or any portion of its rights to the loan proceeds hereunder. 9. Attorneys' Fees_and 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 41e'4-96A&m: W E1N FEL.D:Exhibi1B RLS 96-170 344,96 %-w; 11. Successors Bound This Promissory Note shall be binding upon the parties hereto and their respective heirs, successors and assigns. "MAKER" ByIted PriName: Ju ie Weinfe�c3 Lin Printed Name: By: Printed Name. "Exhibit B" to Loan Agreement Page 3 of 3 4's14-96Agree:V1'ETNFELD:ExhibitB RLS 96-170 33496 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF oRANCE SS. On APRIL 9, 1996 before me, the undersigned, personally appeared JULIE WEINFELD personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whoso name(s) Islare subscribed to the within instrument and acknowledged to me that helshelthey executed the same in hislherllheir authorized capacity(ies), and that by hislherltheir signature(s) on the Instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the Instrument. WITNESS my hand and official seal. ffa]4 — Signatur LINDA J. WBELL d ar a .Lea cl I r► la I seal) X 4%'=`.... LwIIN�-DAjJ. CA���P�S�E�LLLcc = . ��� � � 5� 1. 0.1,10 �. 01045344 t3 ��': it+ M"iUSY Ply" C-CALF-CW 1 ORAN3E Q _-M '_•sf W oynn EMW DEG 20.109E rflrffffrrrllfriffirrfrrliffrfrrrrrl[it OPTIONALfill rflrrfrrrlrrfrrrlrlrflrrrlrfirrrrr 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 Clalmed By Signer Q individual ❑ Corporate Officer ❑ Partner(s) Descriptloii of Attached Document Tltles(s) Title or Type of Document ❑ Attorney -in -Fact ❑ Trustee(s) ❑ Guardian/Conservator El Other: Signer Is Representing: Narni of Persons) or Enllly(les) ❑ Limited p General Number or Pages Date or Document Signor(s) Other Than Named Above ATTACHA4ENT #4 � .1 %wwr EXHIBIT F NOTICE OF RIGHT OF RESCISSION - Participant(s): JUiJE WEINFELD Loan Amount: $35_000.00 Address of Residence: 18061 Joyful Lane, 4205, Huntin on Beach California Notice to Participant Required by Federal Law: You have entered into a transaction on April 9, 1996 [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 (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. (Date) I hereby cancel this transaction. (Participant's Signature) 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 10 days after receipt of a notice of rescission, the "Exhibit F" to Loan Agreement Pagel of 2 4sU4-Agee:WEI1FELD:Exhibitr RLS 96-170 3'14.'96 %.00 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. icipant's Signatu / Date Participant's Signature Julie Weinfeld Participant's Signature Date Participant's Signature "Exhibit F" to Loan Agreement Pane 2 of 2 ,rf (3:4-Agce:WEi1 FELD:ExhibitF RLS 96-170 3.14,h6 Date Date EXIIIBIT G EXPIRATION OF RESCISSION PERIODS (Truth in Lending - Real Estate and Home Improvement Loans) Participant(s): JULIE WEINFELD Loan Amount: 3$ 5.00O.CO Address of Residence: 18061 Joyful Lane. #205. Iiuntingion Beach, California 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 with the Loan in reliance upon the foregoing representations. hicipanN Sign u Date "Exhibit G" to Loan. Agreement Page 1 of 1 4's'.G:4-96Ag=:WEr\ FELD:ExhibitG RLs 96-170 114.'96 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFMIA COUNTY of ORANGE_ On ` - APRIL 9, 1996 JULIE WEINFELD before me, the undersigned, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) Islare subscr1b9d to the within Instrument and acknowledged to me that helshellhey executed the same In his/her/their Authorized capacily(ies), and that by hisfherllheir 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 seat. Signal re � LINDA J. CAMPBELL (This area for offlelat notarial seal) LINDA 1 CMAPBELL = cc COMM. # 1045344 f� NarARYPUM.IC-CALrDF*M:rj ORANM COLMM 1 = tih �� E>�reo DEC. Z0, t Osa rill[r[[rrrrr[[rrrrrrrrrrlrrrrrrrr[rrr[ OPTIONAL HIfHill [If[H HHHHUMMr ill Though tho data below are not required by law, they may prove valuable to parsons relying on the document and could prevent the fraudulent reattachment or this form. Capacity Claimed By Signer [] Individual ❑ Corporate Officer Tllfes(s) ❑ Partner(s) ❑ Attorney -In -Fact ❑ Trustee(s) , ❑ Guardian/Conservator ❑ Other: Signer Is Representing: Namo of Person(s) or Enllly(les) ❑ Limited ❑ General Description of Attached Document I llle or Type of Document Number of Pages Dale of Document Stgnar(s) other Than Named Above ATTACHMENT #8 N'.� EXHIBIT II CERTIFICATE OF PROPOSED TRANSFEREE THIS FORM MUST BE DELIVERED TO THE DEVELOPER BEFORE PROCEEDING NVITH ANY TRANSFER OF THE PROPERTY. April 9 3 19 96 1. The Proposed Transferee is Names: Julie Weinfeld Current Address: 713-A California Street Huntington Beach, California 92648 Telephone Number: 714-953-3328 2. The address of the property which the proposed transferee desires to purchase is 18061 Joyful Lane, #205, Huntington Beach, California (&e "Property"), which was built in the Talbert Beach Redevelopment Project Area. 3. The Proposed transferee represents, warrants and covenants the following: (a) The Property will be the principal residence of the proposed transferee. (b) The combined maximum annual income in the current year for all household members of the proposed transferee is $ 36,550.00 (This figure must reflect income from all sources.) (c) The proposed transferee will deliver to the Redevelopment Agency of the City of Huntington Beach a signed financial statement on a form acceptable to the Agency. 4. The proposed transferee's household consists of the following persons who will reside in the Property: Adults (18 or over) - [name of each]: "Exhibit H" to Loar. Agreement Page I of 6 4WG:4-Agce:WE1NFEC.D.Exhbit11 RCS 96-170 3114,96 Minors (under IS) - [name of each]: 5. The proposed transferee must submit to the Developer, on a form available from the Dcveloper, an income certification so the Developer may determine if the proposed transferee is an Eligible Person or Family. 6. A true and correct copy of the proposed transferee's most recent tax return to the U.S. Internal Revenue Service is attached hereto. 7. The terms of the proposed transfer are: (a) Sales price of $ 173,900.00 . This sales price is based on the less of xX (i) Fair market value; or {ii) The maximum price at which the Purchase Housing Cost of the Proposed Transferee would not exceed Affordable Housing Cost. The calculation of the Sales Price under this subsection (ii) is illustrated in Attachment No. 10 to the Disposition and Development Agreement. IN ORDER TO ANSWER QUESTION 2(a) YOU IVIUST CALCULATE THE PROPOSED SALES PRICE BASED ON AFFORDABLE HOUSING COST, TAKING INTO CONSIDERATION ALL ITEMS LISTED IN THE DEFINITION OF PURCHASE HOUSING COST. (b) Price of any personal property being sold by the owner to the proposed transferee: $ —0-- (if none, so state) (c) - The price of $ —0— to be paid by the proposed transferee for any services of Owner. (If none, so state.) (d) All other amounts of money or other consideration, if any, concerning the Property or any other matter to be paid by the proposed transferee to the Owner: S 0— . (If none, so state.) "Exhibit 1I" to Lom Agreement Page 2 of 6 4%s'.r:4-Ag=.-WEI\FEL ):Fxhbitli RLS 96-170 3r 14.96 (e) Sources of payment of sales price: Sales price $ 173,900.00 Cash down payment $ 8 ► 700.00 lstloan $130,200.00 M 2nd loan $ 35,000. Other (describe) $ 173,900.00 Total (f) The financing obtained by the proposed transferee to purchase the Property is as follows: 1 st Loan: Loan amount: $ 130,200.00 Monthly payments: $ 944.05 Interest rate 7.875 % if variable interest, describe adjustment mechanism: FIXED RATE Due date: MAY 1, 2026 Balloon payment amount: -a Points and fees: S4,048.50 Lender: WEYERHAEUSER MORTGAGE COMPANY Lender's address: 1551 N. WSTIN AVENUE, SUITE 670 SANTA ANA, CALIFORNIA 92701 "Exhibit H" to Loan Agreement Page 3 of 6 *i G:a-AV=-.V-'EINVEtA:l:xhbitl l RLS 96-170 VI4 % 2nd Loan: Loan amount: $ 351=.Q2 Monthly payments: $ -0- Interest rate 5% Accruing if variable interest, describe adjustment mechanism: Due date: UPON SALE Balloon payment amount: PRINCIPA.: & ACCRUED INTEREST Points and fees: -0- Lender: CITY OF HUNTINGT'ON BEACH Lender's address: 2000 MAIN STREET HUNTINGI'ON BEACH, CALIFORNIA 92648 Other Loans: (describe, if none, so state) NONE (g) The monthly Purchase Housing Cost to be paid by the proposed transferee: I st loan monthly payment: $ 944.05 2nd loan monthly payment: $ -0- Other loans monthly payment: $ Taxes and assessments (1/12 of yearly taxes and assessments): $ 181.15 (Estimated) Insurance (1/12 of yearly $ premium) Homeowner's dues: $ 145.12 Total: $ .1, 270.32 "Exhibit H" to Loan Agreement Page 4 of 6 4 i'AD:4-Agree:%'EI\ FEL•D:Exhbiti1 RLS 96-170 3'1496 ��o 8. A true and correct copy of the purchase and sale or other agreement between the owner and the proposed transferee is attached hereto. I declare under penalty of penury under the laws of the State of California that the foregoing is true and correct. PROPOSED TRANSFEREE: April 9, 1996 Date ature Julie ei feId �./u a"Cj �l/&,v���� Print name Signature Print name Street Address Telephone 4 d&:�_ City State Zip Code "Exhibit H" to Loan Agreement Page 5 of 6 ,ri.G:4Agce:14 EitiFELD:Exhhitll RLS 96-170 3.'14.'96 M Developer's Certification Based on the Proposed Transferee's Certificate, above, and all documents attached hereto, Developer hereby certifies that: (1) Proposed Transferee is an Eligible Person or Family; and (2) The monthly Purchase Housing Cost to be paid by the Proposed Transferee shall not exceed the monthly Affordable Housing Cost. [Capitalized terms used above are defined in the Disposition and Development Agreement to which this certificate is attached.] DEVELOPER; SASSCUNIAN �ACWACL , INC. A CAGIE1 �0RPRA X ' By: I . IAN Its: SECRETARY Date: "Exhibit H" to Loan Agreement Page 6 of 6 4'i G:4-AV=-.WEtN'FELD:Lxhbi111 RLS 96.174 3:14,96 M �.O! CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF CALIFORNIA COUNTY OF ORANGE SS. On APRIL 9, 1996 JMIE WEINFELD before me, the undersigned, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) Islare subscribed to the within instrument and acknowledged to me that helshelthey executed the same in histherltheir authorized capacity(ies), and that by hislherltheir signature(s) on the Instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. e Signalu e LINDA J. BELL frrrrfrrrrrrrrrr(rrrrrrrrrrfrrrrrrrrrrr OPTIONAL (This area for official notarial seal) *- , -: Cr_�Y.. LINDA J. CAMP9EL COMM' x 1445344 co mF , Z � Ir�r;. R'Y PLVLIC - CALIFORMA ORANGE COUNTY �+ �r try Comm. E ViM oEc. 2o.14'da frrtIriIIIrIIIiIifIrrrrrrIifrIIrirrrrr Though the data below are not required by raw, they may prove valuable to persons relying on the document and could prevent the fraudulent reattachment of this form. Capacity Claimed By Signer Q Individual ❑ Corporate Officer ❑ Partner(s) Description of Attached Document Titles(s) Title or Type of Document p Attorney -in -Fact ❑ Trustee(s) D Guardian/Conservator ❑ Other: Signer Is Representing: Name of Person(s) or Entity(ies) 0 Limited I7 General Number of Pages Date of Document Signel(s) Other Than Named Above CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT S'TATE OF COUNTY OF CAL IFMNZA ORANGE On APRIL 8, 1996 BIJAN SASS=IAN }SS. before me, the undersigned, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) Is/are subscribed to the within instrument and acknowledged to me that he/shelthey executed the same in his/her/their authorized capacity(ies), and that by hislherltheir signature(s) on the Instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the Instrument. WITNESS my hand and official seal. (This area for ofticlal notarial seal) cc .yf''= ' LINDAJ.CAMPBELL s Signsl r r COMM. # 1045344 co „"�T 4 � NARY PUBLIC. CALIFORM � LINDA J CAMPBELL 3- ' ;, -` ORANGE COUNTY -A M, Co mn.6¢ hm CEc.20. IM rrrrrrrrrrru�rr�rrrr�rrrrrrrrirrlrfrrr OPTION - I r r IMITIMITIM Kffffff Though the data below are not required by law, they may prove valuable to persons relying on the document and could prevent tho fraudulent reattachment of this form. Capacity Claimed By Signer ❑ Individual ❑ Corporate Officer ❑ Partner(s) Description of Attached Document Titles($) Title or Type of Document ❑ Attorney -in -Fact ❑ Trustee(s) ❑ GuardianlConservator ❑ Other: Signer is Representing: Name of Person(s) or Entlly(les) ❑ Limited ❑ General Number of Pages Date of Document Signets) Other Than Named Above m ATTACHMENT #9 11 NOTE APRIL 3, 1996 HUNTINGTON BEACH, CALIFORNIA IUalel Icily] Istatel 18061 JOYFUL LANE, UNIT 11 205 HUNTINGTON BEACH, CA 92648 [Property Address) 1. ItORROIVrR'S PROMISE TO PAY In return for a loan that I have received, I promise to pay U.S. $ 130, 200.00 (this amount is called "principal'), plus interest, to the orJcr of the Lcndcr. The Lender is WEYERHAEUSER MORTGAGE COMPANY . I understand that Idle Lender may transfer this Note. The Lendcr or anyone who takes this Note by transfer and who is entitled to receive 11ayn1enLi under this Note is called tic "Note Iloldcr." Interest will be charged on unp d principal until the full amount of principal has been paid. I will pay interest at a yearly rate of 7.8750 a, The interest rate required by this Section 2 is the rate I will pay both before and after any default described in Section 6(B) of this Note. 1 3. PAYl11F.NTS ` (A) Time and Piace of Payments I will pay principal and intcr:st by making payments every month. will stake my monthly payments on the f irst day of each month beginning on JUNE 1 1996 , I will make these payments every month until I have paid all of the principal and interest and any other charges described below that I may owe under this Note. My monthly payments will be applied to interest before principal. If. on MAY 1 2026 ,1 still owe amounts under this Note. I will pay those amounts in full on that date. which is called Vic "Maturity Date." j 1 wiIl make my monthly payments at F. 0. BOX 54089 LOS ANGELES, CA 9 C 0 5 4 -0 0 8 9 or at a different place if required by the Note Holder. (11) Amount of Monthly Payments My monthly payment will be in the amount of U.S. S 944.05 . 4.11ORRUWER'S RIGHT TO PREPAY I have tic right to make payments of principal at any time before they arc due. A payment of principal only is known as a "prepayment." When I make a prepayment, I will tell the Note Holder in writing that I am doing so. may make a full prepayment or partial prepayments without paying any prepayment charge. The Note I[older will use all of my prepayments to reduce the amount of principal that I owe under this Note. If I make a partial prepayment. there will be no changes in the due date or in the amount of my monthly payment unless the Note Holder agrees in writing to those changes. S. LOAN CHARGES If a law, which applies to this' loan and which sets maximum loan charges, is finally interprets] so that the interest or odder loan charges cnllcctcd or to bc.cnilcctcd in connection with this loan exceed tic permitted limits, then: (i) any such loan charge shall be reduced by the amount neccssary to reduce the charge to the permitted limit; and (ii) any sums already collected from me which exceeded permit_ed, limits will be refunded to me. The Note Holder may choose to make this refund by reducing the principal I owe under this Note or by making a di.-ect payment to me. If a refund reduces principal, the reduction will be treated as a partial prepayment. 6. ItORROlWIVS FAILURE TO PAY AS IZFQUIIZF.D (A) late Charge for Overdue Payments If the Note I (odder has not received the full amount of any monthly payment by Idle end of 15 calendar days after the date it is due. I will pay a late charge to the Note Holder. The amount of the charge will be 5.0000 % of my overdue payment of principal and interest. I will pay this late charge promptly but only once on each late payment. 111) I)ef.lull If I do not pay the full amount of each momltly payment on the date it is due. I will be in default. MULTISTATE FIXED RATE NOTE - Single Family - FNMAlFHLMC uniform Instrument 1 �-5R 1e 1061.0a Form 3200 12183 MFCo3002 - 01196 CLFt r l l 1 L U l' O U' r. r+N L1 L4t%t 6 197677 Amended 6191 ,.,• Fl. 7 f1" VMPMORTGAGE FORMS -1e001621.7201 COPY Ur Trl= C%'.'Ifk. Ef li II I I I Pago I of 2 r (C) Notice of Derault If 1 am in default, the Note Holder may send me a written notice telling me that if I do not pay die overdue amount by a certain date, die Note Holder may require me to pay immediately die full amount of principal which has not been paid and all the interest that I owe on that amount. That date must be at least 30 days after the date on which the notice is delivered or mailed to me. (D) No Waiver by Note Holder Even if', at a time when I am in default, die Note Holder does not require me ui pay immediately in full as described above, the Note Holder will still have die right to do so if I am in default at a later time. (E) Payment of Note Holder's Costs and Expenses If the Note Holder has required'me to pay immediately in full as described above, the Note Holder will have the right to be paid track by me for all of its costs and expenses in enforcing this Note to the extent not prohibited by applicable law. Those expenses include, for example, reasonable attorneys' fees. 7. GIVING OF NOTICES ' Unless applicable law requires a different method, any notice that must be given to me under this Note will be given by delivering it or by mailing it by first class mail to me at die Property Address above or at a different address if I give the Note Holder a notice of my different address. Any notice drat must be given to the Note Holder under this Note will be given by mailing it by first class mail to the Note I folder at die address stated in Section 3(A) above or at a different address if I am given a notice of that different address. 8. OBLIGATIONS OF PERSONS UNDER 'I HIS NOTE If more than one person signs this Note, each person is fully and personally obligated to keep all of die promises made in this Note, including the promise to pay the full amount owed. Any person who is a guarantor, surety or endorser of this Note is also obligated to do these things. Any person who takes over these obligations, including the obligations of a guarantor, surety or endorser of this Note, is also obligated to keep all of the promises made in this Note. The Note Holder may enforce its rights under this Note against each person individually or against all of us together. This means that any one of us may be required to pay all of die amounts owed under this Note. 9. WAIVERS I and any other person who has obligations under this Note waive the rights of presentment and notice of dishonor. "Presentment" means the right to require tdie Note Holder to demand payment of amounts due. "Notice of dishonor" means the right to require the Note Holder to give notice to other persons that amounts due have not been paid. 10. UNIFORM SECURED NOTE : This Note is a uniform instrument with limited variations in some jurisdictions. In addition to the protections given to the Note Holder under this Note, a Mortgage, Deed of Trust or Security Deed (the "Security Instrument"), dated the same date as this Note, protects the Note Holder from possible losses which might result if I do not keep the promises which I make in Uiis Note. 'That Security Instrument describes how and under what conditions I may be required to make immediate payment in full of all amounts I owe under this Note. Some of those conditions are described as follows: Transfer of the Property or a Beneficial Interest in Borrower. If all or any part of the Property or any interest in it is sold or transferred) (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person), without Lender's prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. However, this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. If Lender exercises this option, Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or mailed within which Borrower must pay all stuns secured by this Security Instrument. If Borrower fails to pay these sums prior to die expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further notice or demand on ,Borrower. WITNESS THE HAND(S) AND SEAL(S) OF THE UNDERSIGNED. (Seal) JULIE WEINFELD v -Borrower SSN: 124-50-5000 i (Seal) -Borrower SSN: i Q -5R (91061.04 Mr-CD3002 -01/96 —(Seal) -Borrower SSN: —(Seal) -Borrower SSN: ]Sign O�riggi�nal Only] CERTIFIED 70 BE A `TRUE AND MG*B COPY OF THE Uf?iu'NA-- HEREOF IEMPO INC. Pace 2 of 2 or 12/83 497677 PEOWDING REQdES AY COImNENTAL LAWYEFt3)4E CO. 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 Recordea in the County of orange, California Gary L. Granville, Clerk/Recorder [I'l{.�l ;ll; No Fee 19960191442 W 26am 04/12/96 o©6 10006271 10 24 D11 A36 20 0 14.00 0.00 57.00 0.00 0.00 0.00 0.00 0.e0 0.00 (Space Abow Thu Line For Retakes Use j This document is exempt from recording fees pursuant to Government Co le Section 6103. DEED OF TRUST -WITH ASSIGNMENTS OF RENTS THIS DEED OF TRUST is made this 9th day of April, 19 96, by and among JULIE WEINFELD, whose address is 18061 Joyful Lane, #205, Huntington Beach, California (the "Trustor") and THE CITY OF HUNTINGTON BEACH, a municipal corporation (the "Trustee") and THE REDEVELOPMENT AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic (the "BENEFICIARY"), whose address is 2000 Main Street, Huntington Beach, California 92648. NN ITNESSETH: 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 IegaUy in the Legal Description attached hereto as Exhibit "A" and incorporated herein. TOGETHER WITH: (a) all buildings, improvements and fixtures, now or hereafter placed thereon, it being understood and agreed that all classes of property attached or unattached used in connection herewith shall be deemed fixtures, (b) rents, issues and profits thereof, (c) any water rights and/or stock are appurtenant or pertain to said land, and (d) all sums of money payable on the purchase price of said property secured by a lien thereon or payable under any agreement for the sale thereof, SUBJECT, HOWEVER, to the right, power and authority hereinafter giver, 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. " i-ASit- mnt Page 1 of 15 4`s.G:4-96AGItEE-.WEIIFE11):ExhibitC RLS 96-170 1:14,96 A. FOR THE PURPOSE OF SECURING: 1. Payment of the sum of Thirty-five Thousand Dollars ($35,000.00) with interest thereon according to the terms of a Promissory Note of even date herewith, made by Trustor, payable to the order of the Beneficiary and extensions or renewals thereof. 2. Payment of such additional sums with interest thereon as: (a) may be hereafter borrowed from the Beneficiary by the then record owner or owners of said property when evidenced by another Promissory Note or Notes, or (b) as may be added to the indebtedness secured hereby in accordance with the provision of this Deed of Trust. 3. Performance of each and every obligation, covenant, promise or agreement of Trustor contained herein in the Loan Agreement between Beneficiary and Trustor dated April 9 , 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; Page 2 of 15 ,fi..Cr4-96AGREE-.WEI\FELD:ExhibitC RLS 96-170 31496 t V �.i (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 (I5) calendar days after written notice from Beneficiary of such fact, which notice may be given to Trustor by registered or certified mail, sent to his last known address, or by personal service of the same; (d) that work shall not cease on the rehabilitation of such improvements for any reason whatsoever for a period of fifteen (15) calendar days, whether consecutive or not, without the written permission of the Beneficiary; (e) to pay when due all claims of labor and materials furnished in connection with the said rehabilitation and not to permit any claims of lien for said work or material to be filed of record against the property, (f) not to permit any stop notice claims to be presented to Beneficiary. If said property is part of a larger tract upon which improvements will be constructed, Trustor sha11 make separate contracts and subcontracts for said construction which shall pertain to the said property only and shall keep separate, full and complete records of all work and materials furnished to the said property. Trustee upon presentation to it of an affidavit signed by the Beneficiary setting forth facts showing a default by Trustor under this paragraph, is authorized to accept as true and conclusive all facts and statements therein, and to act thereon hereunder. 2. To provide, and maintain in force at all times with respect to said property, fire and other types of insurance as may be required by Beneficiary. All of such insurance shalt 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 v6th 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 Truster 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 polity 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 politics 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 th-a 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 4'i.G:4-96AGRE&WEI1 FELD: ExhibitC RIS 96-170 3:14,96 " :;,Agreenwnt Page 3 of I5 of such lease, such proceeds, after deducting therefrom any expenses incurred in the collection thereof, shall be used to reimburse the Trustor for the cost of rebuilding or restoring the buildings or improvements on said premises. In all other cases, such insurance proceeds, at the option of the Beneficiary, shall either be applied in reduction of the indebtedness secured hereby whether due or not, or in such order as Beneficiary may determine, or be held by the Beneficiary and used to reimburse the Trustor for the cost of the rebuilding or restoring the buildings or improvements on said premises. Such buildings and improvements shall be so restored or rebuilt as to be of at least equal value and substantially the same character as prior to the damage or destruction, and shall be in a condition satisfactory to Beneficiary. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. Any and all unexpired insurance shall inure to the benefit of, and pass to the purchaser of, the property conveyed at any Trustee sale held hereunder. 3. To pay: (a) at least ten (10) days before delinquency, all general and special City and County taxes, and all assessments on appurtenant water stock, affecting such property, (b) when done, all special assessments for public improvements, without permitting any improvement bond to issue for any special assessment (c) when done, all encumbrances, charges and lines, with interest, on said property, or any part thereof, which are or appears to be prior to superior hereto, (d) if the security of this Deed of Trust is leasehold estate, to make any payment or do any act required of the Lessee or its successor in interest under the terms of the instrument or instruments creating said leasehold, (e) all costs, fees and expenses of this trust, (f j 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 Iaws 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, shou'd 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 "£-�thib'�-EMI-oa�greemerit Page 4 of 15 4's\G:4-96AGREE:%%*EI\FELD:Exhib;tC RLS 96-170 3.'14.96 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 attorneys fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear by virtue of being made a party defendant or otherwise irrespective of whether the interest of Beneficiary or Trustee in such property id directly questioned by such action, including any action for the condemnation or partition of said premises, and in any suit brought by Beneficiary to foreclose this Deed of Trust. 6. To pay immediately and without demand, all sums expended under the terms of this Deed of Trust by Beneficiary or Trustee, with interest from the date of expenditure at the rate which the principal obligation secured hereby bears at the time such payment is made, and the repayment of such sums shall be secured hereby. 7. That, should the Trustor or any successor in interest to Trustor in such property drill or extract, or enter into a lease for drilling or extraction of oil, gas or other hydrocarbon substances or any mineral of any kind or character, or sell, convey, further encumber, or alienate said property, or any party thereof, or any interest therein, or be divested of his title or any interest therein in any manner or way, whether voluntarily or involuntarily, Beneficiary shall have the right, at its option, to declare any indebtedness or obligations secured hereby irrespective of the maturity date specified in any Note evidencing the same, immediately due and payable, and no waiver of this right shall be effective unless in writing. 8. That any award, settlement or damages for injury or damages to such property, or in construction with the transaction financed by such loan, and any award of damages in connection with any condemnation for public use of or injury to said property, or any part thereof, is hereby assigned and shall be paid to Beneficiary, who may apply or release such monies received by it in such manner and with the same effect as above provided for the disposition of proceeds of fire or other insurance. 9. That, by accepting payment of any sums secured hereby after its due date, or by making any payment, performing any act on behalf of Trustor, that Trustor was obligated hereunder, but failed, to make, or perform, or by adding any payment so made by Beneficiary to the indebtedness secured hereby, Beneficiary does not waive its right either to require prompt payment when due of all sums so secured or to declare a default for failure so to pay. 10. That at any time, or from time to time, without liability of the Beneficiary or Trustee thereof, and without notice, upon written request of Beneficiary and presentation of this Deed of Trust and any Note secured hereby for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, or the lien of the Deed of Trust upon the remainder of said property for the full amount of the indebtedness then or ���t'eernrnt- Page 5of15 4 s%G:4-96AGREE;WEi\ FELR:Exhib.tC RLS 96.170 3.'14.96 thereafter secured hereby, or the rights or powers of Beneficiary or the Trustee with respect to the remainder of said property, Trustee may: (a) reconvey any part of said property, (b) consent to the making of any map or plat thereof, (c) join in granting any easement thereon, (d) join in any agreement subordinating the lien or charge hereof. 11. That the lien hereof shall remain in full force and effect during any postponement or extension of time of payment of the indebtedness secured hereby, or any part thereof. 12. That, upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed of Trust and said Note or Notes to Trustee for cancellation and retention, and upon payment of its fees, Trustee she 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 maybe 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 Froperty 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 Page 6 or 15 4 s\ G:496AGREE:WEiti FELD:Exhib-tC RIS 96-170 3'14.96 to be appointed by the Court, enter into possession and hold, occupy, possess and enjoy the said property, make cancel, enforce and modify leases, obtain and eject tenants, and set and modify rents and terms of rents, and to sue, and to take, receive and collect all or any part of the said rents, issues, and profits of the property affected hereby, and after paying such costs of maintenance, operation of said property, and of collection including reasonable attorneys' fees, as in its judgment it may deem proper, to apply the balance upon any indebtedness then secured hereby, the rents, issues, royalties and profits of said property being hereby assigned to Beneficiary for said purposes. The acceptance of such rents, issues, royalties and profits shall not constitute a waiver of any other right which Trustee or Beneficiary may enjoy under this Deed of Trust or under the laws of California. Failure of or discontinuance by Beneficiary at any time, or from time to time, to collect any such rents, issues, royalties or profits shall not in any manner affect the subsequent enforcement by Beneficiary of the right, power and authority to collect the same. The receipt and application by said Beneficiary of all such rents, issues, royalties and profits pursuant hereto, after execution and delivery of declaration of default and demand for sale as hereinafter provided, or during the pendency of Trustee's sale proceedings hereunder, shall not cure such breach or default not affect said sale proceedings, or any sale made pursuant thereto, but such rents, issues, royalties and profits, less all costs of operation, maintenance, collection and reasonable attorneys' fees, when received by Beneficiary, shall be applied in reduction of the indebtedness secured hereby, from time to time, in such order as Beneficiary may determine. Nothing contained herein, nor the exercise of the right by Beneficiary to collect, shall be, or be construed to be, an affirmation by Beneficiary of any tenancy, lease or option, nor an assumption of liability under, nor subordination of the lien or charge of this Deed of Trust to, any such tenancy, lease or option. 14. That if the security of this Deed of Trust is a leasehold estate, the Trustor agrees that: (a) the term "Lease" as used herein shall mean the lease creating the "leasehold estate"; (b) Trustor shall not amend, change or modify his leasehold interest, or the Lease, or agree to do so, without the written consent of the Beneficiary; (c) Trustor will promptly advise Beneficiary regarding any notice, request or demand received by him from the lessor under the Lease and promptly furnish Beneficiary with a copy of any such notice, request or demand; (d) as long as any of the indebtedness secured hereby shall remain unpaid, unless the Beneficiary shall otherwise consent thereto in writing, the leasehold estate shall not merge with the fee title but shall always be kept separate and distinct, notwithstanding the union of said estates in any party; (e) Trustor agrees that it will promptly, strictly, and faithfully perform, fulfill, and comply with all covenants, agreements, terms, conditions and provisions under any lease affecting the premises and to neither 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 prodded 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 Page 7 or 15 4s'G:4-96AGREE:WE1\FELDD:Exhib tC RLS 96-170 3'14'96 `.J 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 tre 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 'Sxhibit- o4"f.-Agreement- Page 8 of 15 ,f4eG:496AGREE:WEi\ FELD:ExhibitC RLs 96-170 3•'14.'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 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 Ioan evidenced by the Prorrissory Note or Notes which this Deed of Trust secures, and in the event that Trustor has made any material misrepresentation or failed to Page 9 of 15 4 e.o:4-96AGREE:WEI\FELD:ExhibitC RLS 96-170 3.'14.96 %d 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 Trailing thereof must be certified mail addressed to the Trustor at his address hereinabove set forth or to the Beneficiary at his office or at such other place as such parties hereto may designate in writing. THE UNDERSIGNED TRUSTOR REQUESTS that a copy of any notice of default and of any notice of sale hereunder be mailed to him at his address herein before set forth. TRUSTOR: By: /ff JULIE WEINFEG B . APPROVED AS TO FORM: A'/ 44f�- Ag"ncy Counsel f-j "Exitibit e, to Len-Agfeement-- Page 10 of 15 4sZA-96AGR£E:WEIXFELp:Exhib W RIS 96-170 3/I4'96 ."'WO RIDER TO DEED OF TRUST FIRST TIME HOMEBUYER DAWN PAYMENT ASSISTANCE PROGRAM This Deed of Trust is subject to the terms and conditions of that certain Loan Agreement dated April 9th , 1996 (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 Saes Price and the Purchase Price (defined below) as follows: Prior to fifth anniversary of the Agency Deed of Trust: fifty percent (50%) 2. After fifth anniversary but) prior to sixth anniversary: forty-eight percent (48%) 3. After sixth anniversary but prior to seventh anniversary forty-six percent (46%) 4. After seventh anniversary but prior to eighth anniversary: forty-four percent (44%) 5. After eighth anniversary but prior to ninth anniversary: forty two percent (42%) 6. After ninth anniversary but prior to tenth anniversary: forty percent (40%) 7. After tenth anniversary but prior to eleventh anniversary: thirty-eight percent (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%) TAhibt" t Page 1 I of 15 4 s\G*96AGREE:WE1%FELD:Exhih tC RLS 96-170 311496 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%) I3. After sixteenth anniversary but prior to seventeenth anniversary: twenty-six percent (26%) 14. After seventeenth anniversary but prior to eighteenth anniversary: twenty-four percent (24%) 15. After eighteenth anniversary but prior to nineteenth anniversary: twenty-two percent (22%) 16. After nineteenth anniversary but prior to twentieth anniversary: twenty percent (20%) 17. After twentieth anniversary but prior to twenty-first anniversary: eighteen percent (18%) 18. After twenty-first anniversary but prior to twenty-second anniversary: sixteen percent (16%) 19. After twenty-second anniversary but prior to twenty-third anniversary: fourteen percent (14%) 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%) w n-Agroomw Page 12 of 15 4 ejOA-96AGREEMEINFEMExhih IC RLS 96-170 3'14'96 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 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 (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" 4o.Loar. Agreement Page 13 of 15 4'a1G:4.96AGREE:WEr%FELD: EyNbitC RLS 96.170 3:14L 96 Property as of the time of such transfer or refinancing. Dated: April 9, 1996 TRUSTOR Julie weirif d APPROVED AS TO FOPM: Xepnr Attorney, 3 jdSf 9b Page 14 of 15 4jt\0:4-96AGREE:WEI\FELD:Exhib IC RLR 96-170 3'14.96 CITY OF HUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CONNIE BROCKWAY CRY CLERK DEED CERTIFICATION CALIFORNIA 92648 This is to certify that the interest in real property conveyed by the Deed of Trust with Assignments of Rents dated April 9, 1G96 from Julie Weinfeld to the CITY OF HUNTINGTON BEACH, a municipal corporation, is hereby accepted by the undersigned officer or agent on behalf of the City Council of the City of Huntington Beach, pursuant to the authority conferred by Resolution No. 3537 of the City Council of the City of Huntington Beach adopted on August 7, 1972, and the grantee consents to the recordation thereof by Its duly authorized officer. Dated: April 10, 1996 CITY OF HUNTINGTON BEACH CONNIE BROCKWAY, CMC CITY CLERK By. Deputy City Clerk g.'followupkkedmt ITNophonr 714-536Z227) 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 9 , 19 96 (the "Loan Agreement"), pursuant to which Beneficiary has agreed to loan Trustor the sum of Thirty-five Thousand dollars ($35,000.00) (the "Loan Amount"). All terms in this Rider to Deed of Trust, if not separately defined herein, shall have the meanings as defined in the Loan Agreement. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the deed of trust executed by Trustor in favor of the First Lender as security for the First Lender Note, or any subsequent First Lender deeds of trust hereafter recorded against the property described herein. Notwithstanding any provision in this Deed of Trust to the contrary, all of the provisions of this Deed of Trust shall terminate and have no further force and effect upon the occurrence of one of the following events: 1) Title is acquired by the First Lender or another party upon foreclosure of a deed of trust by the First Lender. 2) Title is acquired by the First Lender or another party by a deed in lieu of foreclosure of the First Lender deed of trust. Dated: April 9, 1996 APPROVED AS TO FORM: L cy Attorney 4's G;496AGREE:WEIIFELD:ExhibitC RLS 96-170 334,96 TRUSTOR: -a� ulie Weinfel " . eert�ent - Page 15 of 15 L `.1 LEGAL EXHIBIT "A" PARCEL 13 An undivided one twenty second (1/22) fee simple interest as a tenant in common in and to.l all of the Common Area defined in Declaration referred to below and described in then Condominium Plan (-Plan-) for Lot 1 of Tract No-. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of Official Records of Orange County, -over Lot 1 of?, Tract No. 14828, in the City of Huntington Beach, County of orange, State of California, as per map filed in Book 706, Pages 27 to 29 of Miscellaneous !taps, in the office of the county Recorder of said County. 1 I 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 2s F Unit No. 10 consisting of certain airspace and eurface elements, as shown and described in the condominium Plan referred to in Parcel 1 above. Parcel 3z 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-D525336 of official Records. I Parcel 4t 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. 1 I �.Wl EXIIIBIT A TO AGENCY DEED OF TRUST LEGAL DESCRIPTION [to be inserted] "Exhibit A" to Agency Deed of Trust Page 1 of I 4s�G:Agree:lllargolis:ExhCDcc&43.'14196 RIS 96-127 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF COUNTY OF CALIFORNIA On APRIL 9, 1996 before me, the undersigned, personally appeared JULIE WEINFELD 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 Jo the within instrutrtent and acknowledged to me that helshellhey executed the same In hislherllheir authorized capacily(ies),~and that by htslherltheir signature(s) on the Instrument the person(s) or the entity upon behalf of which (lie person(s) acted. executed the Instrument. WITNESS my hand and official seal. (This area for official notarial seal) ` o— LINDA J. CmjpBELL = =3' Y: c0?"Im. a 1045344 Signatur :� �> .M NOTARY !'INDA J. BELL y C"MECplEM N►p Wmn�, Eden � 2R, !tom! lllif (fill liflflllllffilill[If fflHUH OPTIONAL flflflfifll flffilf fi f fl fl l ilff Thow_1h the data below are not required by law, they may prove valuable to persons relying on (fie document and could prevent the fraudulent reattachment of this form. Capacity Claimed By Signer ❑ Individual ❑ Corporate Officer ❑ Partner(s) Descriptioti of Attached documrnt TIlles(s) Me or Type of Document ❑ Attorney -In -Fact ❑ Trustee(s) , ❑ Guardian/Conservator ❑ Other: Signer Is Representing: Namoe of Person(s) or Entlty(les) ❑ Limited ❑ General Number of Pages Date of Document Sfgnei(s) Other Then Named Above 9402210-A GOVERNM= CODE 27361.7 I certify under penalty of perjury that the notary seal on the document to which this statement is attached reads as fcllows: Name of the Notary: Linda J. Campbell Date Commission Expires: December 20, 1998 County Where Bond is Filed: Orange Commission No.: 1045344 Manufacture/Vendor No.: HBR1 -- Place -of -Execution; Irvine,^CA. - Datei-April`11; 1996__ _- -- - - Signature When Recorded, Mail To: ' WEYERHAEUSER MORTGAGE COMPANY (SANTA ANA WHOLESALE) ' 1551 N. TUSTIN AVENUE, SUITE 670 SANTA ANA, CA 92701 DEED 4F TRUST THIS DEED OF TRUST ('Sxurity Instrument") is made on APRIL 3RD, 1996 . The trustor is JULIE WEINFELD, A SINGLE WOMAN ("Borrower"). The trustee is WESTWOOD ASSOCIATES, A CALIFORNIA CORPORATION ("Trustlx:"). 11c beneficiary is WEYERHAEUSER MORTGAGE COMPANY which is organized and existing under the laws of CALIFORNIA , and whose Wdressk P.O. BOX 54089 LOS ANGELES, CA 90054 ('Lender"). Borrower owes Lender the principal sum of ONE HUNDRED THIRTY THCUSAND TWO HUNDRED AND N01100 Dollars (U.S. S 130, 200.00 )• This debt is Cvidenced by Borrower's note dated the same date as this Security Inswmcnt ("Note"), which provides for monthly paymctim, wide the full debt, if not paid earlier, due and payable on MAY 1ST, 202 6 This Skxurity Instrument secures to Lender: (a) the repayment of the debt evidenced by the Note. with interest. and all renewals, cxtcnsions And modifications of the Note; (h) the payment of all other sums, with interest, advanced under paragraph 7 to protect Vic security of this Security Instrument: and (c) the performance of Borrower's covenants and agreements under this Security Instrument and the Note. For this purpose, Borrower irrevocably grants and conveys to Trustee, in trust, with power of sale, the following described property located in ORANGE County. California: LEGAL DESCRIPTION ATTACHED HERETO AND MADE A PART HEREOF AND KNOWN AS EXHIBIT "A". which has die address of 18061 JOYFUL LANE, UNIT a 205 California 92643 1 lip del CALIFORNIA-Single Femi1yFNMAIFKMC UNIFORM INSTRUMENT Form 3005 9190 -GRICAI n2121-03 rap. 1 .r 6 Amended 131 1 1 Ma MCAfCAo[ FORMS • 18001621.7291 tr.r.h. Nil-CA3111-01N5 , HUNTINGTON BEACH IStra6Gty]. ("Property Address); CERTIFIED TO SE A TRUE AND EXA & COPY OF THE ORIGINAL HERE [I'II1!.lII11111111111111111 TIEMPO ESCROW,INC.I I nY—d- 4976T7 • TOG M; IER WIT[ I all the improvcnicnts now or hereafter erected on the property. and all casements. appurtenances, and fixtures now or hereafter a part of the property. All replacements and additions shall also be covemd by this Security 1 nstruincnt. All of tic foregoing is referred to in this Security Instrument as the *Property." BORROWER COVENANTS that Borrower is lawfully seised of the estate hereby conveyed and has the right to grant and convey epic Property and that the Property is unencumbered, except for encumbrances of record. Borrower warrants and will defend generally tic title to epic Property against all claims and demands. subject to any encumbrances of record. THIS SECURITY INSTRUMENT combines uniform covenants for national use and non -uniform covenants with limited variations by jurisdiction to constitute a uniform security instrument covering real property. UNIFORM COVENANTS. Borrower and Lender covenant and agree as follows: 1. Payment of Principal find Interest; Prepayment and Late Charges. Borrower shall promptly pay when due the principal of and interest on the dcL•t evidenced by tie Note and any prepayment and late charges due under the Note. 2. Funds for Taxes and Insurance. Subject to applicable law or to a written waiver by Lender. Borrower shall pay to Lender on tic day monthly payments are due under the Note, until the Note is paid in full, a sum ("Funds) for. (a) yearly taxes and asses .vncnLs which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments or ground rents on Vie Property, if any; (c) yearly hazard or property insurance premiums; (d) yearly flood insurance premiums. if any; (e) yearly mortgage insurance premiums, if any; and (f) any sums payable by Borrower to Lender, in accordance with the provisions of paragraph S, in lieu of the payment of mortgage: insurance premiums. Theso items are called 'Escrow Items." lender may, at any time, collect and hold Funds in an amount not to exceed the maximum amount a lender for a federally related mortgage loan may require for Borrower's escrow account under the federal Real Estate Settlement Procedures Act of 1974 as amended from time to time, 12 U.S.C. Section 2601 et seq. ("RESPA"). unless another law that applies to the Funds Bets a lesser amount. If so, Lender may, at any time, collect and hold Funds in an amount not to exceed the Icsscr amount. I.cnrler may estimate [lie anwunt of Funds due on die basis of current data and reasonabie estimates of expenditures of future Escrow Items or otherwise in accordance with applic-ihlc law. The Funds shall be held in an institution whose dcposiLs arc insured by a federal agency, instrumentality, or entity (including Lender, if Lender is such an institution) or in any Fedcral Home Loan Bank. Lender shall apply the Funds to pay the Escrow Items. Lendcr may not charge Borrower for holding and applying the Funds, annually analyzing the escrow account, or verifying the Escrow items, unless Lender pays Borrower interest on the Funds and applicable law permits Lender to make such a charge. However, Lender may require Borrower to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with this loan, unless applicaNe law provides otherwise. Unless an agreement is trade or applicable law requires interest to be paid, Lender shall not be required to pay Borrower any interest or earnings on the Funds. Borrower and Lender may agree in writing, however. that interest shall be paid on the Funds. Lender shall give to Borrower, without charge, an annual accounting of the Funds, showing credits and debits to the Funds and the purpose for which each cichii to the Funds was made. The Funcl% are pledged as additional security for all sums secured by this Security Instrument. If the Fund% held by Lender exceed the amounts permitted to be held by applicable law. Lender shall account to Borrower for die excess Funds in accordance with the requirements of applicable law. If the amount of the Funds held by Lender at any time is not sufrcicnt to pay the Escrow Items when due, Lender may so notify Borrower in writing, and, in such cast Borrower shall ray to Lender the amount necessary to make up the deficiency. Borrower shall make up the deficiency in no more than twelve montlily paymenLs, at Lender's sole discretion. Ulxm payment in full of all sums secured by this Security Instrument. Lender shall promptly refund to Borrower any Funds held by Lender. If, under paragraph 21. Lender shall acquire or sell the Property, Lender. prior to the acquisition or sale of the Property, shall apply any Funds held by Lender at the time of acquisition or sale as a credit against the sums secured by this Security Instrument. 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under paragraphs I and 2 shall be applied: first, to any prepayment charges due under the Note; second, to amounts payable under paragraph 2; third, to interest due; fourth, to principal due; and last, to any late charges due under the Note. 4. Charges; Liens. Borrower shall pay all taxes. assessments, charges, fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leaschold payments or ground rents, if any. Borrower shall pay these obligations in the manner provided in paragraph 2, or if not paid in that manner. Borrower shall pay them on time directly to the person owed paymcnL Borrower shall promptly furnish to Lender aI1 notices of amounts to be paid under this paragraph. If Borrower makes these payments directly. Borrower shall promptly furnish to Lender receipts evidencing the payments. Borrower shall promptly discharge any lien which has priority over this Security Instrument unless Borrower: (a) agrees in writing to the payment of the obligation secured by the lien in a manner acceptable to Lender; (b) contests in good faith the lien by. or defends against enforcement of epic lien in, legal proceedings which in the Lender's opinion operate to prevent the cnforccmcnt a: of the lien; or (c) sures from epic holder of the lien an agreement satisfactory to Lcndcr subordinating the lien to this Security Instrument. If Lender determines that any part of the Property is subject to a lien which may attain priority over this Security Instrument. Lender may give Borrower a notice identifying the lien. Borrower shall satisfy the lien or take one or more of the actions set forth above within 10 days of the giving of noticeXERTIFIED TO 8E A TRUE AND pcf f'p Mu coil l l-uINS COPY OF THE ORIGINAL HI Ri }-Form $00491b19 vrr-GRICA) ismi.o:i rw.2.e • TIEMPO ESCROtiy, INSBy rww: l S. llay-ird or Property Insurance. Borrower shall keel+ the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or Minding, for which Lendcr.rcquires insurance. This insurance shall be maintained In the amounts and for the periods that Lender requires. 'Ilse insurance carrier providing the insurance shall be chosen by Borrower subject to Lender's approval which shall not be unreasonably withheld. if Borrower fails to maintain coverage described above, Lender may, at Lender's option, cbmin coverage to protect Lender's rights in the Property in accordance with paragraph 7. All insurance policies and renewals shall be acceptable to Lender and shall include a standard mortgage clause. Lender shall have the right to hold tic pclicics and renewals. If Lender requires, Borrower shall promptly give to Lender all receipts of Imid premiums and renewal notices. In the event of loss. Borrower shall give prompt notice to the insurance carrier and Lender. Lender way make proof of loss if not made promptly by Borrower. Unless Lender and Borruwc: otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged, if the restoration or repair is economically f=ible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened. the insurance proceeds shall be applied to the sums secured by this Security Instrument. whether or not then due. with any excess paid to Borrower. If Borrower abandons the Property, or dries not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lcndcr may use dre proceeds to repair or restore the Property or to pay sums secured by this Security Instrument, wltctlter or not then due. The 30-day period will begin when the notice is given. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or lx)sllx,uc the clue date of the monthly payments referred to in paragraphs I and 2 or change the amount of the payments, if undcr paragraph 21 the Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting from damage to the Property prior to tl:e acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. b. (Occupancy, Preservation, Maintenance and Protection of the Property; Borrower's Loan Application; Leaseholds. llorrowcr shall occupy. establish, and use the Property as Borrower's principal residence within sixty days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at Ieast one year after the date of occupancy, unless Lender ocltcrwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control. Borrower shall not destroy, damage or impair the M)perty. allow the Property to deteriorate, or commit waste on the Property. Borrower shall be in default if any forfeiture sction or proceeding, whether civil or criminal. is begun that in Lender's good faith judgment could result in forfeiture of the Ihmperty or otherwise materially impair the lien created by this Security Instrument or Lender's security interest. Borrower may cure such a default and reinstate. as provided in paragraph 18. by causing the action or proceeding to be dismissed with a ruling that. in Lender's good faith determination. precludes forfeiture of the Borrower's interest in the Property or other material impairment of the lien created by this Security Instrument or Lender's security interest. Borrower shall also be in default if Borrower, during the lttan application process. gave materially false or inaccurate information or statements to Lender (or failed 1-a provide Lender with any material itlfesrmation) in connection with the loan evidenced by the Note, including, but not limited to, representations concerning Borrower's occupancy of the Property as a principal residence. If this Security Inswment is on a l sehold, Borrower shall comply with all the provisions of Vic lease. If Borrower acquires fee title to the Property, the h: schuld and the fee title shall not merge unless Lender agrees to the merger in writing. 7. Protection of Lender's Rights in the Property. If Borrower fails to perform the covenants and agreements contained in utis Security Instrument, or there is a legal proceeding that may significantly affect Lender's rights in the Property (such as a proceeding in bankruptcy. probate, for condemnation or forfeiture or to enforce laws or regulations). then Lender may do and ray for whatever is necessary to protect the value of the Property and Lender's rights in the Property. Lender's actions may Hclude paying any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying r=conahte attorneys' fees and Brit ring on the Property to make repairs. Although Lender may take action under this paragraph 7, Lender doses not have to do so. Any anusuntc disbursed by Lender under this paragraph 7 shall become additional debt of Borrower secured by this Security Instrument. Unless Borrower and Lender agree to other terms of payment. these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest. upon notice from Lender to Borrower requesting raymcnt. A. Mortgage Insurance. If Lender required mortgage insurance as a condition of making the loan secured by this Security Irtstnmscstt. Borrower shall pay C)c premiums required to maintain the mortgage insurance in effect. If, for any reason, the mortgage insurance coverage required by Lender lapses or etas= to be in effect, Borrower shall pay the premiums required to r.btain coverage substantially equivalent to the mortgage insurance previously in effect, at a cost substantially equivalent to the cost to Borrower of lire mortgage insurance previously in effect, from an alternate; mortgage insurer approved by Lcndcr. If substantially equivalent mortgage insurance coverage is not available. Borrower shall pay to Lender each month a sum equal to cne•twelfth of the yearly mortgage insurance premium being paid by Borrower when the insurance coverage lapsed or =qcd to to in effect. Lender will accept. use and retain these payments as a loss ry !n„licu of mop age insurance. Loss reserve Gtrfl�rltD TO S7- A IRdE AND D-1�1,r 919 M A1111-ulN3 'COPY OF THE ORIGINAL HERE�rr �[)0497677o ( -rRlCal a:u,.oa i Pope s"r T Fmn ESCRO,'All IMC. r.6r..- BY &A— 2 7 payments may no longer be required, at the option of Lender, if mortgage insurance coverage (in the amount and for the period that Lender requires) provided by an insurer approved by Lender again becomes available and is obtained. Borrower shall pay the premiums required to maintain mortgage insurance in effect, or to provide a loss reserve, until the requirement for mortgage insurance ends in accordance with any written agreement between Borrower and Lender or applicable law. 9. Inspection. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall give Borrower notice at the time of or prior to an inspection specifying reasonable cause for the inspection. 10. Condemnation. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other Liking of any part of the Property, or for conveyance in lieu of condemnation, arc hereby assigned and shall be paid to Lender. In the event of a total taking of the Property, the proceeds shall be applied to the sums secured by this Security Instrument, whether or not then due, with any excess paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is equal to or greater than the amount of the sums secured by this Security Instrument immediately before the taking, unless Borrower and Lender otherwise agree in writing, the sums secured by this Security Instrument shall be reduced by the amount of the proceeds multiplied by the following fraction: (a) the total amount of the sums secured immediately before the taking, divided by (b) the fair market value of the Property immediately before the taking. Any balance shall be paid to Borrower. In the event of a partial taking of the Property in which the fair market value of the Property immediately before the taking is less than the amount of the sums secured immediately before the taking, unless Borrower and Lender otherwise agree in writing or unless applicable law otherwise provides, the proceeds shall he applied to the sums secured by this Security Instrument whether or not the sums are then due. if the Property is abandoned by Borrower, or if, after notice by Lender to Borrower that the condemnor offers to make an award or settle a claim for damages, Borrower fails to respond to Lender within 30 days after the date the notice is given, Lender is authorized to collect and apply tie proceeds, at its option, either to restoration or repair of the Property or to the sums secured by this Security Instrument, whether or not then due. Unless Lender and Borrower otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of the monthly payments referred to in paragraphs 1 and 2 or change the amount of such payments. 11. Borrower Not Released; Forbearance By Lender Not a Waiver. Extension of the time for payment or modification of amortWition of the sums secured by this Security Instrument granted by Lender to any successor in interest of Borrower shall not operate to release the liability of the original Borrower or Borrower's successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortisation of the sums secured by this Security Instrument by reason of any demand made by the original Borrower or Borrower's successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy. ! 12. Successors and Assigns Bound; Joint :and Several Liability; Co-signers. The covenants and agreements of this Security Instrument shall bind and benefit the successors and assigns of Lender and Borrower, subject to the provisions of paragraph 17. Borrower's covenants and agreements shall be joint and several. Any Borrower who co-signs this Security Instrument but does not execute the'Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Borrower's interest in the Property under the terms of this Security Instrument; (b) is not personally obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument or the Note without that Borrower's consent. 13. Loan Charges. If the loan secured by this Security Instrument is subject to a law which sets maximum loan charges, and that law is finally interpreted sd that the interest or other loan charges collected or to be collected in connection with the loan exceed the permitted limits, then: (a) any such loan charge shall be reduced by the amount necessary to reduce the charge to the permitted limit; and (b) any sums already collected from Borrower which exceeded permitted limits will be refunded to Borrower. Lender may choose to make Otis refund by reducing the principal owed under the Note or by making a direct payment to Borrower. If a refund reduces principal, the reduction will be treated as a partial prepayment without any prepayment charge under the Note. 14. Notices. Any notice to Boriower provided for in this Security Instrument shall be given by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to the Property Address or any other address Borrower designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender's address stated herein or any other address Lender designates by notice to Borrower. Any notice provided for in this Security Instrument shall be deemed to have been given to Borrower or Lender when given as provided in this paragraph. 15. Governing Law; Severability. This Security Instrument shall be governed by federal law and the law of the jurisdiction in which tie Property is' located. in tie event that any provision or clause of this Security Instrument or the Note conducts with applicable law, such cgnfdict shall not affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. j 16. Borrower's Copy. Borrower shall be given one conformed c py o,thc.IVoto and of_this `Security Instrument. A7f'CA3111•()1/95 �a*,:� ,.- r�,. ' THE ORiGI ►.:.� .•.L+.r Form 3005 9/90 �� 6R1CA1 182121.03 , Page 0} 0 Yy1/�/�Q�(� ESCROW, !NC �rrtiNs: 49� 17. Transfer of the Property or a Beneficial Interest in Itorrower. If all or any part of the Property or any interest in it is soltl or transferred (or if a beneficial interest in Borrower is sold or transferred and Borrower is not a natural person) without I.emler's prier writtcn consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security lostrumcrnt. however, Qa;s option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of ttus Security Instrument. If lender exercises this option. Lender shall give Borrower notice of acceleration. The notice shall provide a period of not less than 30 days from the date tic 'notice is delivered or mailed within which Borrower must pay all sums secured by this Security IastrumCrht. If Borrower fails to pay these sums prior to the expiration of this period. Lender may invoke any remedies pennitled by Ibis Security Instrument without further notice or derrand on Borrower. I8. Borrower's Right to Reinstate. If Borrower meets certain conditions. Borrower shall have the right to have enforcement of this Security InsL-ument discontinued at any time prior to the earlier of. (a) 5 days (or such other period as applicable law may specify for reinstatement) before sale of Vic Property pursuant to any power of sale contained in this Security Instrument; or (b) entry of a judgment enforcing this Security Instrument Those conditions arc that Borrower: (a) pays Lender all sums which then would be due under this Security Instrument and the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument. including, but not limited to, r=;onable attorneys' fees; and (d) takes such action as Lender may reasonably rcquirc to assure that die lien of this Security Instrument, Lender's rights in the Property and Borrower's obligation to pay the sums secured by this Security Instrument shall continue unchanged. Upon reinstatement by Borrower. this Security Instrument and the ohligariuns secured hereby shall remain fully effective as if no a.celeration had occurred. However. this right to reinstate shall not apply in the case of acceleration under paragraph 17. 19. Sale or Note; Change or Loan Servicer. The Note: or a partial interest in the Note (together with this Security Instrument) may be sold one or more times without prior notice to Borrower. A sale may result in a change in the entity (known its the "Loan Scrviccr') that collects monthly payments due under the Note and this Security Instrument. There also may be one or more changes of doe Loan Scrviccr unrelated to a sale of the Note. If there is a change of the Loan Servicer. Borrower will be given written notice of die change in accordance with paragraph 14 above and applicable law. The notice will state the name and vddress or doe new Loan Scrviccr and the address to which payments should be made. The notice will also contain any other information required by applicable law. 20. Iazardous Substances. Borrower shall not cause or permit the presence, use, disposal. storage. or release of any I lac vdous Substances on or in tic Property. Borrower shall not do, nor allow anyone else to do, anything affecting the 1'niperty that is in violation of any Environmental Law. The prxeding two sentences shall not apply to the presence. use. or morage on the Property of small quantities of Hazardous Substances that arc generally recognized to be appropriate to normal resiilcntial uses and to maintenance of the Property. Borrower shall promptly give lender written notice of any investigation, claim, demand. lawsuit or other action by any yovcrtancntal or regulatory agency or private party involving die Property and any Hazardous Substance or Environmental Law of which Burnower has actual knowledge. if Borrower learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the Property is necessary, Borrower shall promptly take all necessary remedial actions in accordance with Environmental Law. As used in this paragraph 20. "hazardous Substances" arc those substances dcdined as toxic or hazardous substances by Environntentzl Law and the following substances: gasoline. kerosene, other flammable or toxic petroleum products, toxic pesticides and herbicides. volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 20. "Environmental Law" means federal laws and laws of the jurisdiction where the Property is located that tclate to health, safety or ernvironmcni al protection. NON -UNIFORM COVENANTS. Borrower and Lender further covenant and agree as follows: 21. Acceleration; Remedies, Lender shall give notice to Borrower prior to acceleration following Borrower's breach or tiny covenant or agreement in this Security Instrument (but not prior to acceleration under paragraph 17 unless applicable lair provides othengw).'The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days rrom the date tlae notice is given to Borrower, by which the default must be cured; and (d) that failure to cure the derault on or before the date specified in the notice may result in acceleration or true sums secured by this Security Instrument and sale or the Property. The notice shall further inform Borrower of the right to reinstate sifter acceleration and the right to briny; a court action to assert the non-existence or a default or any other defense of Itorrower to acceleration and sale. If the default is not cured on or before the date specified in the notice, Lender, at its option, may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the poorer of sate and any other remedies permitted by applicable law. Lender shall be entitled to collect all expenses incurred in pursuing the remedies provided in this paragraph 21, Including, but not limited to, reasonable attorneys' tees and costs of title evidence. It Leander invokes the power or sale, Lender shall execute or cause Trustee to execute a written notice of the occurreuce or an event of derault and or Lender's election to cause the Property to be sold. Trustee shall cause this notice to be recorded in each county in which any part or the Property is located. Lender or Trustee shall mail copies of the notice as prescribed by applicable law to Borrower and to the other persons prescribed by applicable law. Trustee shall give public matice of sale to the persons and in the manner prescribed by applicable law. After tine time required by upplicahle law, Trustee, without demand un Borrower, shall sell the Property at public auction to the highest bidder at the time and place and under the terms designated in the notice of sale in one or more parcets and in any order Trustee determines. Trustee nray postpone sale of all or any parcel of the Property by public announcement at the time and place of any previously scheduled sale. Lender or its designee may purchase the Property at any sale. �tI'CAtllt•otNS uvFI %: 7F{=�,e��-ii i.' HER rCFfrm300S 9190 -GRICAl ao212a.o3 Pop 5 of4 7 i =1 Ec3Ci 3*.7, INC. Trustee shall deliver to tl:e purchaser Trustee's deed conveying the Property \vilhOUt any covenant or warranty, expresecd or implied. The recitals in [lie Trustee's deed shall be prima facie evidence or the truth of the statements made therein. 'trustee shall apply the proceeds of the sale In the following order: (a) to all expenses or the sale, including, but not limited to, reasonable Trustee's and attorneys' fees; (b) to all sums secured by this Security Instrument; and (c) any exems to the person or persons legally entitled to it. 22. Reconveyance. Upon payment of All sums secured by this Security Instrument. Lender shall request Trustee to reconvcy the property and shall surrender this Security Instrument and all notes evidencing debt secured by this Security In.trunhcnt to Trustee. Trustee shall roconvcy tic Property withnit warranty and without charge to the person or persons legally entitled it) it. Such person or persons shall pay any recordation costs. 23. Substitute Trustee. Lender, at its option, may from time to time appoint a successor trustee to any Trustee appointed hereunder by an instrument executed and acknowledged by Lender and recorded in tic office of the Recorder of the county in which tic Property is located. The instrument shall contain the name of the original Lender, Trustee and Borrower. the book and page where this Security Instrument is recorded and the name and address of the successor trustee. Without conveyance of the Property, the successor trustcos shall succeed to all the Lille, powers and duties conferred upon the Trustee herein and by applicable taw. This procedure for substitution of trustee shall govern to the exclusion of all other provisions for substitution. 24. Request for Notices. Borrower requests that copies of the notices of default and sale be sent to Borrower's address which is the Property Address. 25. Statement of Obligation Fee, Lcndcr may collect a fee not to mced the maximum amount permitted by law for furnishing tlhe statement of obligation as provided by Section 2943 of the Civil Code of California. 26. Riders to flits Security Instrument. Ir one or more riders are executed by Borrower and recorded together with this Security Instrument, the covenant; arid agreements of each such rider shall be incorporated into and shall amend and supplement the covenants and agreements of this Security Instrument as if the riders) were a part of this Security Inswment. ]Check applicable box(cs)] Adjustable Rate Rider Condominium Rider 1-0 Family Rider Graduated Payment Rider Planned Unit Development Rider Biweekly Payment Rider Balloon Rider Rate Improvement Rider Second Home Rider V.A. Rider Other(s) [specify] BY SIGNING BELOW, Borrower accepts and agrees to the terms and covenants contained in this Security Instrument and io arty rider(s) executed by Borrower and recorded with it. witncsscs: 1 29(& Z e - (Seal) t IE WEINFEW Cl .8oirower ; (Seal) j -Borrower State or Calirornia j County or ORANGE t On APRIL 91 1996 ; before roc, JULIE b'EINFELD i ss. _(Seal) .Borrower (Seal) -Borrower LINDA J. CAMPBELL personally appeared personally known to me (or Droved In me on the basis of satisfactory evidence) to bc, the person(s) whose name(s) isles subscribed to the within instrument and acknowledged to me that helshelthey executed the same in hislherAheir authorized capacity(ies). and that by his, crA heir signature(s) on the iistiumem the person(s) or the entity upon behalf of which the person(s) acted. executed tic instrument. WITNESS my hand arid official seal.' • , ,� �, - r t�� LINDA.1. �:�-"-,1MI ri "-J (Seal) 6RIGINAL Nttcntttt of s Q� BRICAI ro712h.0 -►'�*'=}'.�; a �;,, .1 Cad" -1 1' ;Z'1`I LINDA J. MVn , C;� ^a: Cal.itrY H e it My Own. Erp m CEM 20.1900 f1tY LTHE HEREOF 497671 +p0 ROW,Q`i1ji;, Form 3005 MO,, 11</ A / Z.: JC, CONDOMINIUM RIDER THIS CONDOMINIUM RIDER is made this 3RD day of APRIL . 1996 and is incorporated into and shall be deemed to amend and supplement the Mortgage, Deed of Trust or Security Deed (the "Security Instrument") of the same date given by the undersigned (the "Borrower") to secure Dom)wcr's Note to WEYERHAEUSER MORTGAGE COMPANY, r (the "Lender') of the same date and covering the Property described in ti:e Security Instrument and located at: 18061 JOYFUL LANE, UNIT tl 205, HUNTINGTON BEACH, CA 92648 [Property Address] The Property includes a unit in, together with an undivided interest in the common elements of. a condominium pmjcct known as: '. PACIFIC PARK VILLAS IName of Condominium Project] (die 'Condominium Proj•xt"). If the owners association or other entity which acts for the Condominium Project (the 'Owners Association') holds title to property for the benciit or use of its members or shareholders. the Pn)lvrty also includes Ilorrower's interest in the Owners Association and the uses. proceeds and benefits of ISurrowcr's interest. CONDOMINIUM COVENANTS. In addition to the covenants and agreements made in the Security Instrument, Borrower and Lcndcr further covenant and agree as follows: A. Condominium Obligations. Borrower shall perform all of Borrower's obligations under the Condominium Project's Constituent Documents. The 'Constituent Documents" arc the: (i) Declaration or any odrer document which creates the Condominium Prajxt; (ii) by-laws; (iii) code of regulations; and (iv) other equivalent documents. Borrower shall promptly pay, when due, all dues and assessments imposed pursuant to tic Constituent Documents. It. Ila7 ird Insurance. So long as the Owners Association maintains, with a generally accepted insurance carrier, a "master" or `blanket" policy on the Condominium Project which is satisfactory to Lender and which provides insurance coverage in the amnunts. for the periods, and against the h=ds Raider requires, including fire and hamrds included within the term "extended coverage." then: (i) Lender waives the provision in Uniform Covenant 2 for the monthly payment to Lender of the yearly premium installmenms for hazard insurance on the Property: and (ii) Borro)wcr's obligation under Uniform Covenant 5 to maintain hazard insurance coverage on the Property is deemed satisfied to the extent that the required coverage is provided by the Owners Association policy. Borrower shall give bender prompt notice of any lapse in required hazard insurance coverage. In the event of a distribution of hazard insurance proceeds in lieu of restoration or repair following a loss to the Pn)perty. whether to the unit or to common elements. any proceeds payable to Borrower are hereby assigned and shall be paid to Lcridx for application to the sums secured by the Security Instrumen% with any excess paid to Borrower. C. Public Liability Insurance. Borrower shall take such actions as may be reasonable to insure that the Owners Association maintains a public liability insurance policy acceptable in form, amount, and extent of coverage to Lender. MULTISTATE CONDOMINIUM RIDER -Single Family -Fannie Mae/Freddie Mae UNIFORM INSTRUMENT Form 3140 9190 ..w 1 M: Q -8 1110111.02 VMP MOATGAGE FORMS. 9e001621.7291 Mr6w: t►trcn206~5 CERTIFIED TO BE A TRUE A1Vi 7b1A r COPY OF THE ORIGINAL HEREOF YJP0 KOVI, INC. D. Candentnatinn. The proceeds of any award cr claim for damages, direct or consequential, payable to Borrower in connection with any condemnation or other taking of all or any part of the Property, whether of the unit or of the common elements. or for any conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender. Such proceeds shall be applied by Lender to die sums secured by the Security Instrument as provided in Uniform Covenant 10. F_ Lender's Prior Consent. Borrower shall not, except after notice to Lender and with Lender's prior written consent, either partition or subdivide the Property or consent to: (i) die abandonment or termination of the Condominium Project, except for abandonment or tennination required by law in the case of substantial destruction by rite or other casualty or in die case of a taking by condemnation or eminent domain; (ii) any amendment to any provision of the Constituent Documents if the provision is for the express benefit of Lender', 1. (iii) tcnnination of professional rnanagernmt and assumption of self -management of the Owners Assscxiation; or (iv) any action which would have the efGxt of rendering the public liability insurance coverage maintained by the Owneri Association unacceptable to Lender. F. Remedies. It Borrower does not pay condominium dues and assessments when due, then Lender may pay thein. Any amounts disbursed by Lender under this paragraph F shall become additional debt of Borrower secured by the Security Instrument.' Unless Borrower and Lender agree to other terms of payment, these amounts shall bear interest from the date of disbursement at die Note rate and shall be payable. with interest, upon notice from Lender to Borrower rctluc:.sting payment. BY SIGNING BELOW, Borrower accepts and agrees to the toms and provisions contained in this Condominium Rider, f 4 i 1 (seal) JULIL WEINFELD -borrower i (seal) -borrower •8 01083.03 (Scat) -Bonower (Seal) -Borrower _(Seal) —Borrower (Seal) —Borrower e.G.! e1! Form 3140 MO CERTIFIED TO BE A 1RUL- AND E(AL`t; COPY OF THE ORM1?)-LHEREOF 13Y`— i PARCEL I: An undivided one twenty second (1/22) fee simple interest as a tenant in coT=on in and to all of the Common Area defined in Declaration referred to below and described in the Condominium Plan (*Plan*) for Lot 2 of Tract No. 24828, which Plan was recorded on:August 25, 1994 as Instrument No. 94-OS2533S of Official Records of Orange County, over Lot 1 of Tract No. 24828, in the City of Huntington Beach, County of Orange, State of California, is per map filed in Book 706, Pages 21 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 Sook.401, Page 356 of Deeds, and in various other deeds of record. • PARCEL 2: Unit No. 10 consisting of;certain airspace and surface elements, as shown and described in the Condominium Plan referred to in Parcel 1 above. PARCEL 3: r Non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, encroachment, support. maintenance, repairs and for oL'her purposes, all as described in that certain Declamation of Covenants, Conditions and Restrictions and Reservation of Easements for Pacific Park Villas, recorded August 25, 2994 as Instrument No. 94-0525336 of Official Records. i ]PARCEL 4: 1 Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcony or patio purposes, over the areas defined, depicted and assigned on the Plan. i f f i Ik i CERTIFIED TO EE A Tr_11: A^„] f:X;1 :t COPY GF TiiE %i:IIi:I- L IiEDEJF d Gr ' U EV110ENCE &41QSURA 1CS o�_�r+_Kt Rn_7F Pciicy Number '""" COND011t11NIUM/ Replaced Policy Number ASSOCIATION }ON FOLD, f .�.�...<: Coverage afforded by this poicy is provided by the Company Indicated below: ® STATE FARM FIRE AND CASUALTY COMPANY A Stock Company, Mocrrungton,114nois ❑ STATE FARM GENERAL INSURANCE COMPANY A Stock Company. Bloomington. I1-rinois ❑ STATE FARM LLOYDS COMPANY A Uoyds Company. Dallas. Texas This Is to certify that the Company indicated above has the following Insurance in force. Unitowner's Name and Mailing address JULIE WEINFELD, A SINGLE WOMAN 18061 JOYFUL LANE, UNIT #205 HUNTINGTON BEACH, CALIFORNIA 92648 Insured's Name and Mailing Address PACIFIC PARK VILLAS HOA 4100 NEWPORT PLACE DR STE 350 NEWPORT BEACH, CA 92660-2437 nw 100" P«an a.oend Effective pate o'd` M 12.01 LR Swasrd ,. rea am awo.q �oea�ar 12 Months policy Period I me-- O +erm- am*& 11 _1 3_97 Expiration of ` G rroadswxmmrna Policy Period Policy Type Q Bas:c Form 1 Spec al Form 3 lJmits of Liabiiity Coverage S ZTM m o o n A Buildings i L Business Liability L'EDUCTI8LE S 1.1000 Forms. Options A Endorsements FP—b109 FE-6451 FE-6307.1 FE-6506 FE-6494 FE-6205 FE-6303 FE-F466 Automatic Renewal - If the Policy Period is shown as 12 Months, this polity wig be renewed automatically subject to the premiums, rules and forms in effect for each succeeding policy period. If this policy is terminated, we wi>< give you and the Mortgagee written notice in compliance with the policy provisions or as required by law. In cas9 of a toss we cover ordy that part of the loss over the deductible stated. 2ND TRUST CITY OF HUNTINGTON BEACH i 2000 MAIN STREET l HUNTINGTON WACH, CA. 92648 Uritowner Mortgagee 497b 1 I - Loan Number WEYEFHAEUSER MORTGAGE COMPANY, ITS SUCCESSORS AND= ASSIGNS, A/T/I/M/A I F.O. BOX 54089 LOS ANGELES, CALIFORNIA 90054-0089 'V Pw"if 1 U 1762 AOwt 1 Coo. (618 l 892-6621 r.wo nw+,on 4-8-96 Date S•1!•..rdk1A Form 438Bl=U NS (Rev. May 1. 1942) z ` LENDER'S LOSS PAYABLE ENDORSEMENT WL470 1. Loss or damage. if any undef till+ IsAicy, shall he paid to the Payee osmtd on the first plate of this polic7. its successors and assigns• hereinafter referrrsl tot as "cite LemIcr". in whatever form or capacity its interests may appear and whether said interest be rested in said Looter in its usrFsidual or in its di•closetd or undisclosed fiduciary or representative capacity, or otherwise, or rested in a nominee or trusirc of said Lender. 2. The irtturarcr untlrr this pi -lit y, or any ritlt•r or endernement attached thereto, a% ter the interest only of the Lender, its succes- sors arsd assigns. .hall tart br invalidated rt•tr su•letklcd: (a) by any error, omission, or change respecting the ownership, description, possesstttn, or hsratiesn ui the stihle•et out lite tinuranceor the interest therein, or the title therein: 4131 by the commencement of foreclosure proceedings or the gnutla of nettnce tit sale of any of the property covered by this policy by virtue tit any mortgage or trust deed: (e) by any breach of warranty. act. orris%i ,n. neglect, or nom-rt,mpliancr with any of the provisions erf this policy including any and all riders now or hereafter attached thereto• by the minted insured, the Ikorrnsser. mortgagor, trustor• vendee, owner. tenant, warehouseman, sus- loelian, occupant. or by the agent, sit rsthrr or any of them or by the happening of any event permitted by them or either of them, or their agents, or which they failed to precrol, whether occurring before or after the attachment of this enrlursement, or whether before or after a loss, which under the prtn-isiten• of this IroGcy of insurance net of any ridet or endorsement attached thereto would invalidate or sus- pend the insurance a+ Ito the named insured. excluding herefroin, however. any acts or omissions of the Lender while exercising active tontrnl and manageutent of the property. 3. In the e%cnt of failure tit the in%uretl too flay any premium or additional freinium which shall be or bcctrme due under the terms of this holey et[ on account tit any chalixe in dreruliancy or increasr in hatard girt permitted by this policy, this Company agrees to give written notice to the Lender of such notot-payment of premium ahrr sixty (60) days from and within one hundred and twenty (120) days alter slur date to( such premiunt anal it i. a condition of the continuance of the rights of alit Lender hereunder that the Lender when so ruKtfird in w riling by this Cumpany of the failure of late insured to pay such premium shall Isar or cause to Ire paid the premium due within ten I lit) day% billowing receipt of the Cranpanr s demand in writing therefor, if the Lender shall decline to pay said premium or additional premium, the rexhis of ihr Lrndrr under this Lender's Loss 1 ayahle Endorsement shall +sat tea• ttrneiruted before ten (10) days after receipt of said written wolivc by the Lermler. 4. Whenever Chit Company shall pay t•. the Lender any sutra fur loss air damage under this policy and shall claim that as to the insured no landuv therefor exist,, thi, Cauupany at it, uptetm, may pay ter the Lender the whole principal sum and interest and other indebtedness due or to bectrrnr d:k• f.,r.n late insured, whether secured or unsecured. Iw'ith refund of all interest not accrued). and this Company, to the exten- eel •sith pa)niral. •hal: thereupon receive a full assignment and transfer, wittwrut recourse• of the debt and all rights tn•I •rcuritses hrl•I a• collateral thereto. S if there be any uther insunrke upuit the within dcscrihtrd property, this Company shall be liable under this policy as to the.Lender for the prerlwrtion of such loss or dannage that the sum hereby insured bears to the entire insurance of similar character on said property under perlicies held by payable to andt exl+rrstly consented Ito by the Lender. Any Contribution Clause included in any Fallen Building Clause Waiter or any E+ticiAcd Covcrage Erselorsement attached to this contract of insurance is hereby nullified, and also any Contribu- anon Clae:se in an.• either virktirr'emeut ter rider attached to this contract tot insurance is hereby nullified except Contribution Clauses for the caniplearke witlt which the in%ured ha< recei%rd reduction in tlnc rate charged or has received extension of the coverage to include hatard)• tsther than err rivet efonpitance will► such Gtntrilotstion Clause is mule a part of the consideration for insuring such other hatards. The Le•tder trpetn the payment to it of the still amount of its claim, will subrogaie this Company (pro rats with all other insurers eon. tributerl ter said pavineni) to all of the- Lenter's rights of contribution under said other insurance. F This Company retrrvr-s the right to cancel this policy at any time, as provided by its terms, but in such case this policy shall continue in fors i•er tl., l,rnefit of the Lerdlrr (or ten ( 101 days alter written notice ter Fek-h cancellation is received by the Lender and shall then crave 7. The, I•t.lscy shall remain in full ft.rtr proof eftt-it as lie the intrrrtt of also, Lender for a 1wrind otf ten 110) days after its expiration unless atisvirplahle policy in renewal theert-f with loss therrunder payable to Vie Lerder in aceordaoce with the terms cat this Lender's Loss Cayahle I:odoewment, shall have kern iaur•tl by a.me insurance Company arnd accepted by the Leikdcr. A ;hreuld trltal title to and heneficial owrsrr•lsip of any tit the pre-prety revered under this ptliry breome vesled in the Lender or its arrmt. inaurar.re under Ilse% tte•licy ,hall r•rntrstitr fear the term lhrrrref for Ilse ttenefit ter Ilse Lender but, in such event, any privileges grant d by this l.rndlrr'% Livo, Payah,l.- Endam rtrrnwh ich hich are twit also granted the insured under the term% and crmditions of this p,hcylandl/or under ether rrlrr% ur ertelorsi•nwiti% atratbed therein shall twit apply to the insurance hereunder as re!pects such property. 9- All nettices herein provided to lee given by the Cengtany to the Lender in e.snnertiun with this Itolicy and this Lender's Loss Payable Endorsement shall lie mailr.l le der delivered lei the Lender at its office car branch described on the lust page of the policy. Approved: Board of Fire Underwriters of the Pacific, California Bankeri Association. Committee on insurance. L • • • 'ti' V'• r ti�ti• t. f: % ATTACHINIENT #6 EXHIBIT E DISCLOSURE STATEMENT I1We JULIE WEINFELD ("Applicant") understands and agrees 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: • Me must qualify for a home loan from an institutional lender acceptable to the Agency. • IA N'e must pay at least _3210 of the home purchase price from our own funds. • Me must qualify for assistance under the guidelines of the Agency's Program. • I/We as owners of the unit must occupy it for the entire term of the loan. If 1AVe rent the unit to others, I/We will be in default of the Loan Agreement. Me further understand and agree that: Me will be responsible for repaying the loan with five percent (5%) simple interest per year at the time I/vie 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 (51/6). 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, I/we sell or transfer the home Uwe purchased under this Program to persons who are not persons of low or moderate income or refinance 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. • I/We have a right to cancel or rescind this loan at any time prior to midnight on the third business day after the loan agreement is signed by sending a notice of my/our decision to 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 4'•a',C,:496ACm-.WEI\'TELb:ExhibitE• RL5 96-170 311496 The Agency will rot require melus to make payments of principal or interest during the term of the loan. The full balance of principal and interest will be due and payable 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 will be kept confidential. The Agency shall not be responsible for the selection of a home by the Applicant, the selection of a lender providing funds assisting in the purchase of the home, providing information concerning other public or private sources of loans, or the competitiveness of the terms of the Program. Uwe assume all responsibility for determining whether Uwe desire to be considered for the Program, and Uwe 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 Uwe may incur by virtue of the receipt of such financial assistance. Dated: April 91 l"3 G nature of appli n Julie Weinfel "Exhibit E" to Loan Agreement Page 2 of 2 -f-e,G:496Agw:WEI\FELD:ExhibiiE RLS 96-170 3!14.'96 V CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT STATE OF COUNTY OF - CALIFORNIA ORANGE _-- On APRIL 9, 1996 JULIE WEINFELD I SS. before me, the undersigned, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be [tie person(s) whose name(s) Islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by hislherltheir signature(s) on the Instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the Instrument. WITNESS my hand and official seal. Signa`.ur , LINDA J. PTBFLL IIII(IIirrrfrfrirrrrrrrir Mill III III[ OPTIONAL (This area for officlal notarlat seal) UNDA J. CAJldP3ELL Ilk a U4 CD y oP.Rd0Cgr171r 33 IM Gbrtm. Emirs fM m lts rrirrrr rr r rr ri r r Though the data below are not required by raw, they may prove valuable to parsons relying on the docurnent and could prevent the fraudulent reattachment of this form. Capacity Claimed By Signer ❑ Individual ❑ Corporal© Officer Tltles(s) ❑ Partner(s) ❑ Attorney -in -Fact ❑ Truslee(s) ❑ Guardian/Conservator ❑ Other: Signer Is Representing: Flame of Persons) or Entlfy(les) ❑ Limited ❑ General Description of Attached Document TItle or Type of Document Number of Pages Dale of Document Signer(s) Other Than Named Above ATTACHMENT #7 0!� r itle �nsurance oration NATIONAL IIEADQUAICrM% 1992 ALTA RICHMO,a VnGttitA Loan Policy Loan Mlicy Ngihbcr- 135-C1- 201-402'"''" SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED 1N 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; not exceeding the Amount of Insurance stated in Schedule A, sustained or inmrrcd by the insured by reason of: I. Title to the estate or interest described in Schedule A being Vested (a) arising from an improvement or work related to the land which other than as stated therein; E is contracted for or commenced prior to Date of Policy; or 2. Any defect in or lien or encumbrance on the title; , . .'�� ,�� '(b) arising from an improvement or work related to the land which 3. UmnarketabiIity of the title; �_ k. �'{ 1 is contracted for or commenced subsequent to Date of Policy and 4. Lack of a right of access to and from the land; k' which is financed in whole or in part b) proceeds of the 5. The invalidity or unenforceabilicy of the lien of the insured mortgage r 1 indebtedness secured by the insured mortgage which at Date of upon the title; — AU q 11 Policy the insured has advanced or is obligated to advance; 6 The priority of any lien or encumbrance over the lien of the r sn urrcd''—�B. The.imalidity or unenforceability of any assignment of the insured mortgage; " =-_� mortgagc,_providcd the assignment is shown in Schedule A. or the 7. Lack of priority of the lien of the insured mortgage over any statutory, Failure of the assignment slumn in Schedule A to vest title to the insured lien for services, labor or material: mortgage in the named insured assignee free and clear of all liens. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage as insured, but only to the extent provided in the Conditions and Stipulations. 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: I. (a) Any law. ordinance or gov+emmental regulation (including but not limited to building and zoning laws, ordinances or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use or enjoyment of the land; (ii) the character, dimensions or location of arty improvement now or kereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a pan; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or govemmenal regulations• except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been nxorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rig' -its of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy. but not excluding from crnerage any taking which has occurred prior to Date of Policy which woL.ld be binding on the rights of a p.irchascr for value without krniwledge. 3. Defxts, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy-, (c) resulting in no loss or damage to d.e insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material); or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. S. Invalidity or unenforccabilily of the Iien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency or similar creditors rights laws. that is based on: (a) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (b) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (c) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (i) to timely record the instrument of transfer; or (ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. 0� IN4,Lv t35 • Lirlw in U.S.A. 00-(tW-MA Cover Swet ALTA Loin Policy t10-17.9-11 CONDITIONS AND STIPULATIONS DEFINITION OF TERMS. The following terms when used to this policy mean: (a) "insured": the insured named in Schedule A. The term "insured" also includes (t) the owner of the indebtedness Secured by the insured mortgage and each successor to ownership of the indebtedness except a successor who is an obligor under the provisions of Section 12(c) of these Conditions and Stipulations (reserving, however, all rights and defenses as to any suc- cessor that the Company would have had against any predecessor insured. unless the successor acquired the indebtedness as a purchaser for value without knowledge of the asserted defe-.l, lien, encumbrance. adverse claim or other matter insured against by this policy as affecting title to the estate or interest to the land); (u) any governmental agency or governmental instrumentality which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage, or any part thereof, whether named as an insured herein or not; (iii) the parties designated in Section 2(a) of these Conditions and Stipulations. (b) "insured claimant": an insured claiming loss or damage. (c) "knowledge' or "known": actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of the pubic records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (d) "land": the land described or referred to in Schedule A, and improvements affixed thereto which by law constitute real property. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule A. nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (e) -mortgage": mortgage, deed of trust. trust deed, or other security instrument. (f) "public records": records established understate statutes at Date of Polity for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect to Section 1(a)(iv) of the Exclusions From Coverage, "public records" shall also include environmental protection liens filed to the records of the clerk of the United States district court for the district in which the land is located. (g) "unmarketabiltty of the title": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A or the insured mortgage to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE. (a) After Acquisition of Title. The coverage of this policy shall continue to force as of Date of Policy in favor of (t) an insured who acquires all or any part of the estate or interest in the land by foreclosure, trustee's sale, con- veyance in lieu of foreclosure, or other legal manner which discharges the lien of the insured mortgage: (u) a transferee of the estate or interest so acquired from an insured corporation, provided the transferee is the parent or wholly - owned subsidiary of the insured corporation, and their corporate successors by operation of law and not by purchase, subject to any rights or defenses the Company may have against any predecessor insureds; and (ii) any govern- mental agency or governmental instrumentality which acquires all or any part of the estate or interest pursuant to a contract of insurance or guaranty insur- ing or guaranteeing the indebtedness secured by the insured mortgage. (b) After Conveyance of Title. The coverage of this policy shall continue to force as of Date of Policy to favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of war- ranty made by the insured in any transfer or conveyance of the estate or in- terest. This policy shall not continue in force in favor of any purchaser from the insured of either (t) an estate or interest in the land, or (ii) an indebtedness secured by a purchase money mortgage given to the insured. (c) Amount of Insurance. The amount of insurance after the acquisition or after the conveyance shall in neither event exceed the least of: (t) the Amount of Insurance stated in Schedule A. (ii) the amount of the principal of the indebtedness secured by the insured mortgage as of Date of Policy, interest thereon, expenses of foreclosum amounts advanced pursuant to the insured mortgage to assure compliance with laws or to protect the lien of the insured mortgage prior to the time of acquisition of the estate or interest to the land and secured thereby and reasonable amounts expended to prevent deterioration of improvements, but reduced by the amount of all payments made: or (tit) the amount paid by any governmental agency or governmental instrumentality. it the agency or instrumentality is the insured claimant. in the acquisition of the estate or interest to satisfaction of its insurance contract or guaranty. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The insured shall notify the Company promptly to writing O in case of any litigation as set forth to Section 4(a) below, (u) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest or the lien of the insured mortgage, as in- sured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (tit) if title to the estate or interest or the lien of the insured mortgage, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to the insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Com- pany shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company. at its own costand without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect. lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to repre- sent the insured as to those stated causes of action and shall not be [table for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost. to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed defense as required or permitted by the provisions of this policy, the Com- pany may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to pro- secute or provide for the defense of any action or proceeding, the insured shall secure to the Company the right to so prosecute or provide defgnse in the action or proceeding, and all appeals therein, and permit the Com- pany to use. at its option, the nameof the insured for this purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company, all reasonable aid O in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or pro- ceeding. or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage, as insured. If the Company is prejudiced by the failure of the insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute. or con- tinue any litigation, with regard to the matter or matters requiring such cooperation. 5 PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Con- ditions and Stipulations have been provided the Company. a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascerta.n the facts giving rise to the toss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the in- sured claimant to provide the required proof of loss or damage. the Com- pany's obligations to the insured under the policy shall terminate. including any liability or obligation to defend, prosecute. or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In addition, the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shaft produce for examination, inspection and copying. at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Dale of Policy. which reasonably pertain to the loss or damage. Further, if requested by any author- ized representative of the Company, the insured claimant shall grant its per- mission. ,rt writing, for any authorized representative of the Company to • contrxied on ne+r page d corer sr+sef LAWYERS TITLE•INSURAHCE CORPORATION Natimal Ri l -- - - , Virginia AMERICAN LAND TITLE ASSOCIATION LOAN POLICY 1992 Issued At: Continental Lars Title Ca rparry 18551 Von Yazman, Suite 100, Irvine, California 92715 •,13.0 9402210-A 135-01-231-402 $130,200.00 $320.00 04/12/96 at 11:25 1. NAME OF IUD: 2. Tim ESTATE cR ImEREsr IN Tm LAm 1rmcH IS covERm BY THE nmm mwmw IS: A C M0U-t UW, as defined in Section 783 of the California Civil Oode, in fee 3. TITLE To THE ESTATE at INTIIZEST IN THE: imD IS VESTED IN: Julie Weinfeld, a single woman A Deem of Trust to secure an 1 in the a oumt sham bellow, and any other obligations seamed thereby Amount: $130,200.00 Dated: April 3, 1996 Trustor: Julie Weinfeld, a single woman Trustee: Westwood Associates, a California corporation Berneficiary: Weyerhaeuser Nbm:tgage Company Reoarded: April 12, 1996 Instrument No. 96-0181441 of Official Records i ALTA LOAN' P0.L1C,Y'-1992 r + Policy No.:135-01-201-402 Order No.: 9402210-A 9CI=ME A CONTINUED 5. TIM LAND 70 IN TM POLICY IS DEMUMID AS FOUL=: A rniniun comprised of: PARS 1: An undivided ore twenty second (1/22) fee simple interest as a tenant in cancan in and to all of the C&OM Area defined in Declaration referred to below and described In the C orkkninium Plan ("Plan.") for Lot I of Tract No. 14828, which Plan was recorded on August 25, 1994 as Instrument No. 94-0525335 of Official Pecords of Orange County, over LQt 1 of Tract No. 14828, in the City of Huntington. Beach, County of Orange, State of California, as per man filed in Hook 706, Pages 27 to 29 of sm Maps, in the office of the County Reooxder of said County. Excepting therefran all oil, Petroleum, asphaltun, gas, minerals grid other h�ydrocaY3�on substances, as reserved in deed recorded August 16, 1921 in Book 401, Page 356 of Heeds, and in various other dands of record. PA RCM 2: Uhit No. 10 aansistinj of certain airspace and surface elements, as shown and described in the C7ondmdrd m Plan referred to in Parcel 1 above. PARML 3: Non-exclusive easements for access, ingress, egress, use, enjoyment, drainage, support, maintenance, repairs. and for other purposes, all as described in that certain Declaration of Covenants, Conditions and Restrictions and Fesesvation of Fasments for Pacific Park Villas, recorded August 25, 1994 as Instrument No, 94-0525336 of Official Records. PARCEL 4: occlusive eats aY�benant to Parcels 1 and 2 referred to abom, for balcony or Pam Pam, over the areas defined, depicted and assigned on the Plan. ALTA L,0AN' POL*IC.Y'-1992 P0;-SGY NO.:135-01-201-402 CFEM NJ.: 9402210-A i • • r i a, • r .� •, r r • s • r �• h �r ► r •i �• • • A. Property taxes, including general and spacial tam, persotnl property taxes, if any, and any assessments collected with tares, to be Levied for the fiscal year 1996-1997 which are a lien not yet payable. 11. Supplemental or escaped assessments of property taxes, if any, assessed pursuant to the Revenue and Taxation Cbr1e, of the State of California. 1. The matters contained in a doarrent entitled "Mes=ardi m of Disposition and DeveliopTent Agreement" recorded January 3, 1994 as Insert No. 94-(=10CY7 of Official Records. Reference is made to said document for full particulars. 2. The fact that the aaners%ip of said land does riot include rights of aaoess to or frcrn the street or highway abuttirxg --.-iid lam, such rights having been relinquished by the map of said Tract. Affects: Talbert Avenue; Joyful Lane and happy Drive 3. Covenants, •• • .•• ` • resr • -w • therefriom &W resr • based on ram, col or creed) as set forth in the docuTent Recorded: Fbbruary 24, 1994 Instrument No. • •6: of Offiaial Pleo=ds Said covenants, conditions and restxictions provide that a violation thereof shall not defeat thc, lien of any mom or deed of trust grade in good faith and for value. 4. Matters in an Instn rent which, among othesr things, contain or provide for Liens and the suboardination thereof, provisions relating to Partition, on severabil.ity of Cmponent Interests, Covenants, Conditions and Restrictions, a provision that no violat Lon thereof and no ofor t of any Lien provided for herein shall defeat or render invalid the Lim of a Mortgage or Deed of Trust made in good faith and for value, but which however, do not Ocntain Restricticrs based on race, color or creed. Recorded: )august 24, 1994 Instrument No. 94-0525336 of Official Records CFMM NO.: 9402210--A 5. idle Blatt rs contained in a dot meat entitled led "Comm Facilities Use and Maintenance Agreement Fbr Pacific Paris Villas" re=xded August 25, 1994 as Instrummt No. 94-052SM7 of Official Records. Referenoe is made to said document for full particulars. 6. An easement for the purpose strewn below and rights incidental thereto as set forth in a document Granted to: Saxd-&- 'n California Wisan GbmparYy PuxTose: Public utilities Recorded: October 27, 1994 Instrument No. 94-06.32840 of Official Rac:orcLs Affects: the Southerly 50 feet of the Fasterly 4 feet of Lot 1 100, 110.9, 115.1, 116.2 dr Date typed: 06/03/96 Plats enclosed ALTA LOAN POLICY-1992 F'OLiC:Y ND.: 135-0I-201-402 No.: 94022I -A Fri;,si i��ail PPMU IN ALDITICN TO THE NATTERS SET FOM IN PART I OF THIS SCHEDULE, THE TITLE TO THE ESTATE CR INTERN IN THE LAM DESCRIBED CR M TO IN SCHED E A IS SU331= TO THE FOULWIM M7MRS, IF ANY BE SMV, BUT THE CCWANY 12MMS THAT THESE MATTERS ARE SZBCRDINATE TO THE LIEN OR ❑PM£ OF THE IKvXRM MZMAGE UPON THE ESTATE CR INTEREST: ?. A Deed of Trust to secure an . in the ammmt shmm below, and any other obligations sacured thereby Amount: $35,000.00 Dated: April 9, 1996 Trust=: Julie Weinfeld Trustee: The City of Hmtingbcn Beach, a nxmicipal Cry xmticn Beneficiary: The Redevelopment Agency of the City of Hkmtingbon Beach, a public body corporate &-d politic Recorded: April 12, 1996 as Instrunent No. 96-0181442 of Official Records Said deed of trust recites that it is sLMardinate to the deed of tmst t�•i • C• • •urrentlythexewith. 8 . (wenants, corditims and restrictims (deleting t herefran my restrictions begged on race, solo= cr Creed) as set forth in the doamerrt recorded: April 12, 1996 as InstrunPnt No. 96-0181443 of Official Records -E N D'O R S E 1K E -N'T LAWYERS TITM INSMA"M LCRPORATION Q,TA FC M 100 Order No.: 9402210-A Attached to Policy No.: 135-01-201-402 The Company hereby insures against lass which said Insured shall sustain by rezaam of the following matters: 1. Any incorrectness in the assurance which the Qcirpary gives: a. That there are no counts, aorditians, or restrictions under which the lien of the mortgage referred to in Schedule A can be cut off, subordimtaed, or otherwise imiaired; b. That there are no present violations on said land of any enforceable c+o*.menants, conditions, or ; c. That, except as shown in Schedule B, there are no a lieff is of buildings, structures, or improvements located on said land onto adjoining lands, nor any encroachments arYbo said land of buildings, dings, structures, or improxrenents located on 2j . y future 2. are violations on the land of my covenants, cord it ices, or re - striations occurring prior to acquisition of title to the estate or interest referred to in Schedule A by the Insured, provided such violations result in impairmemt 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 ielrbedness secured by the insured mortgage: b. Unmarketability of the title to the estate or interest referred to in Schedule A by reason of any violations on the land, occurring prior to acquisition of title to the estate or interest referred to in Schedule A by the inoured, of any covenants, conditions or r+estrictierrs. 3.a. Damage which are�te+d or enc roach' upon �t part�cn o� land svtbject to any easement shown in Schedule B, which daimage results from the exercise of the right to use or maintain such easement for the purposes 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 fran the description of the land or shown as a reservation. ion. in Schedule B. 4. Any final court order or judgment requiring the removal from any land adjoining the land of any ec=oaciat shown in Sci edule B. Wherever in this er]dOQ�eiile?rht any or all the words "covenants, conditions, or r+s�" appear, they shall not be deemed to refer to or include the terms, covenants eonli.ticrhs or xestrictiom contained in arry lease. Fcr purposes of this a arsellerh1, the words "covenants", "conditions" or "re3trictians" shall not be deemed to refer to or include any covenants, conditions or restrictions relating to tau pxvtectian, eAcept to the extent that a notice of a violation or clleged violataoon affecting the land has been recorded in the pubhlic iBoorcis at Date of Polity Bnd is not excepted in Schedule B. This r I --sement is made a part of the policy and is subject to all of the terms and provisions thereof and of arry prior endorsements thereto. Except to the extent expxessly stated, it neither modifies any of the terms and provisions of the policy and any prior r 4 mient—s.; nor does it extend the effective date of the policy and arty prior endorsements, nor does it increase the face amount thereof. IN 14ITN SS UHEFMF, the Q^apany has caused this Endorsement to be signed and sealed, as of the date set forth telow, to be valid when countersigned by an authorized officer or agent of the O❑m>parny, ell in accordance with its By -Laws. Date: April 12, 1996 Is:Aaed at: Irvine, California LAWYERS TITLE INSURANCE OOM3CRATICN C7otai"g hed: -� A Janet A. Alpert - PresidentAAI Authorized Officer or Agent John M. Carter - Secretary ENDORSEMENT 10211& MMY Ian- I(: -01' 00. :: M CWA F0W 110.9 Order No.: 9402210-A Attached to Policy No.: 135-01-201-402 Thc; insurance afforded by this is only effecUve if the land is used or is to be used drily for residential purposes. •, •1 •1 • ■ • ■ V , �•It41 •• - I IN• envirormantal.protection 31 en whiD: r- of Policy recorded in those records established undw state statutes at Date of Policy for the pnpose of i;Vartirq cmis��ve notice of matters relating to real property to purchasers for value anid without krxx4ledge, or filed in the records of the clerk of the Ur-Lited States District 0ourt for the district in utiich the lanid is lomted, except •r • • a• or (b) any envirom3ntal protection lien provided for by wW state stabxte in effect at Dete of Policy, except ezwir�ntal pro 3ation liens provided for in the following state El A This endorse<, ---t is made a part of the policy and is subject to all of the terms and provisions thereof, and of any prior endormnents thereto. Exoept to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any r I WtAX10tts, nor does it extend the effective date of the policy and any Arica: endorsements, nor does it increase the face amount thereof. the date set forth below, to be valid when countersigned by an auttcrized officer or agent of ■ - Cmpany, all, in:•tea •: •a with its Date: 04/12/96 Couitersigned by: f6. t LCL'. Issued at: Irvine, California Jar-,--t A. Alpert - President • 81 VA ENDO'RS EME•N.T- CLTA FCRM 115.1 Ox'der No.: 9402210-A Attached to Policy No.: 135-01-201-402 1. The failure of the taut identified in Schedule A and its common elements to be part of a oondaniniva with in the meaning of the condaainiun statutes of the jurisdiction in which the unit and its common elements are located. 2. The failure of the d=mmts required by the condominium statutes to omaply with the requirements of the statutes to the extent that such failure affects the title to the taut and its canrnn elements. 3. Present • : r • s ofany restrictive covenantswhichrestrictthe use of the unit and its comnon elements and which are contained in the condomirdun documents, except violations relating to awironmental protection unless a rotice of a violation thereof kon been recorded or filed in the public records and is not excepted in Schhedulerestrictive covenants .• not contain &ry provisionswhich will cause 1 forfeitureror - • of 4. The priority of any lien for charges and assessments at Date of Policy plruvided for in the condominium statutes and e❑ndaniniun documents over the lien of any insured mortgage identified in Schedule A. 5. The failure of the taut and its cam on elements to be entitled by law to be assessed for real property taxes as a karate parcel. 6. Any obligation to remove any improvements which exist at Date of Policy because of any present is or because of any future erc=xftnent of the acmmon elements nts upon any unit or of any unit upon the common elements or anothQ unit. 7. The failure of title by reason of a right of first refusal to purchase the unit and its coamn elements which was exercised or could have been excised at Date of Policy. This 181-t is made a part of the policy and is subject to all of the terms and previsions thereof and of any prior endorsements thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior -rents, nor does it extend the effective date of the policy and any prior end=senents, nor does it increase the facie amount thereof. .TN WmESS WMMF, the Comparry has caused this R-M-63MMIN to be signed and sealed as of )t-je date. set forth below, to be valid when c intersigned by an authorized officer or agent of the Comparry all in accordance with its By-L&4s. Date: 04/12/96 C=ntersigned by: Q. 0 }•.. .� •� 0 Janet A. Alpert - President Issned at: Irvine, Cal' fcarnia ENDORSEMENT CLTA FaN 116.2 Order No.: 9402210-A Attached to Policy No.: 135-01-201-402 Tth3 Company assures the Insured that at the date of this Policy the dimensicrs of the exterior boundary of the Gomm Area referred to in Sdhadule A of this F)Zicy which is aLso the exterior boundary of the project, are correctly shown on that map recorded Hook 706, Pages 27 ld� 29 of Maps in the office of the County Reao� of Orange Q xrrty. Ttx3 Camapany further assures the Insured that the Estate Or interest referred to in Sdvxlae A includes a residence within the project boundaries, whicih residence is decaignated as thhi.t , as shown on the map recorded August 25, 1994 as instrument No. 94-0525335, Official Records in the office of the County Recorder of Orange County, arxi known as : 18M1 Joyful Lane #205 Dx&ingtah Beach, California c• G• :•: ,- I • - A -• .: This end=seit is made a part of the policy and is subject to all of the term and prcvisicns thereof and of any pr 11EK1 t-ereto. Ocept to the extent expressly stated, it neither modifies any of the tenns and provisions of the policy and any prior et Kka - - - - , rx r does it extend the effective date of the policy and any prior erd-cwswmts, nor does it increase the face amount thereof. 3N WrINESS WHEFGOF, the Cmparry has caused this endorsaiezz to be signed and sealed as of the date set forth below, to be valid when, coLmtersigned by an authorized officer or agerr�g of the all in accordance with its By-Lws. Dab--: 0d/12/96 - •_1t__ • t._• ., Omet A. Alpert - President b-.tm 2. P,. Issued at: Irvine, California CONDOMINIUM PLANS FOR SHEET 11 OF 32 LOT 1 OF TRACT ;4E2E. IN THE OTY OF HU%'.INCTON BEA04. COUNTY OF ORANGE, STATE OF CALIFORNIA. AS SHOWN ON A MAP RECORDED IN LAP 1300K 706. PACES 27 THROUGH 29. INCLU5IVE. OF MISCELLANEOUS MAPS. IN THE OFFICE OF THE RECORDER OF SAID COUNTY. PHASE ONE OF PACIFIC PARK VILLAS C21 20=KTvsccj 1.00' $ 6119' ti 61.19' H S 69'40'27' E 9 11 12 13 14 10 15 0 n 4 3 6 .aw 1!2) 60.�1'25.W 57.64' SCALE: 1 "= 40' ta[>f MW/CR noCARs l0m" U%n u.r. HQlC4 MwMA VOCAR3 will U%n VNT. ASSOCIATION PROPERTY, � `ra"A L" �SASCtmt � U N I I NUMBERS &TIES ASS00 "n" "'°""" `sMw`s ""' 9-0%K JOB NO. 6235 HALL k FOREMAN. INC. La4iwYersoTid rf Insurance coration �.i.�� T. (tC r : NATIONAL, HEADQUARTERS Y. - Rr[NM05A YIRGIYIA f 1992 ALTA rt11 VV` C d Loam_ -Policy Number Loan Policy 'J' ''�� COPY SUW ECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE 8 AND THE CONDITIONS AND STIPULATIONS, LAWYERS TITLE INSURANCECORPORATION, a Virginia corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A. against loss or damage; not exceeding the Amount of Insurance stated in Schedule A. sustained or incurred by the insured by reason of: �` • _ '' , 1. Title to the estate or interest described in Schedule�A being vested (a) 'arising from an improvement or work related to the land which oti`er than as stated therein; ` _� 1 4 is contracted for or commenced prior to Date of Policy; or 2. Any defect in or lien or encumbrance on the title; i . `-.r I (b) arising from an improvement. or uotk related to the land which 3. Unmarketabilit of the title; Y_ is contracted for or commenced subsequent o Date o Policy and q t f cy _ 4. Lack of a right of access to and from the land; j: 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 scoured by the insured mortgage which at Dart of upon the title; i 1� Policy the insured has advanced or is obligated to advance; 6L The- priority of any lien or encumbrance over the lien of the insured 1 8. The invalidity or unenforceability of any assignment of the insured mortgage: mortgage, provided the assignment is shown in Schedule A, or the 7. Lack of priority of the lien of the insured mortgage over any statutory ` ' failure of the assignment shown in Schedule A to vest title to the insured lied for services, labor or material: mortgage in the named insured assignee free and clear of all liens. The Company will also pay the costs, attorneys fees and expenses incurred in defense of the title or the lien of the insured mortgage as insured, but ortly to the extent provided in the Conditions and Stipulations. EXCLUSIONS FROM COVERAGE The following matters are expressly excluled from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expmses which arise by reason of: 1. (a) (b) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws. ordinances or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or kereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or arty parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmer al regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been rtrorded in the public records at Date of Policy. Arty governmental police power not a icluded by (a) atK e, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rig`Its of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of policy which would be binding on the rights of a purchaser for value without knowledge. 3. Dcf;cts, liens, encumbrances, adverse cllims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company let the insured claimant prior to the date the insured claimant became an insured under this policy: (c) resulting in no loss or damage ter the insured claimant; (d) attaching or created subsequent to D.tte of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material); or (c) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. A. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy. or the inability or failure of arty subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or uncnforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6 Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgaoc) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency or similar creditors rights laws. that is based on: (a) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer: or (b) the subordination of the interest of the insured rtxrrtgagec as a result of the application of the doctrine of equitable subordination; or (c) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except w here the prcferential transfer results from the failure: (i) to timely record the instrument of transfer; or (ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. I l, 1 1 I, i 11 1 1 11 I I Is I l i, I l l y I l ri. l 13, 1 1 L,J I 11, 1 1 h I I h I I It 111, 1 1 It I 10 11,1 K I I i 1 I l h 1 1 11 1 1 1t 11 11 14 h 1.1 1, 1 1 14 I t H 1 1 1, I I I, 1 1 oet-o-tas-000e C Cher Slwvt ALTA Loan Niry (10.17.9�) CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. The following terms when used in this policy mean: (a) "insured": the insured named n Schedule A. The term "insured" also includes (i) the owner of the indebtedness secured by the insured mortgage and each successor in ownership of the indebtedness except a successor who is an obligor under the provisions of Section 12(c) of these Conditions and Stipulations (reserving, however, all rights and defenses as to any suc- cessor that the Company would have had against any predecessor inSbred, unless the successor acquired the indebtedness as a purchaser for value without knowledge of the asserted defeat, lien, encumbrance, adverse claim or other matter insured against by this policy as affecting tale to the estate or interest in the land); (u) any governmental agency or governmental instrumentality which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage, or any part thereof, whether named as an insured herein or not; (w) the parties designated in Section 2(a) of these Conditions and Stipulations. (b) "insured claimant": an insured claiming loss or damage. (c) "knowledge' or "known": actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (d) "land": the land described or referred to in Schedule A. and improvements affixed thereto which by law constitute real property. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads. avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (e) "mortgage': mortgage, deed of trust, trust deed, or other security instrument. (f) "public records": records established understate statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect to Section 1(a)Qv) of the Exclusions From Coverage, "public records' shall also include environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located. (g) "unmarketability of the title': an alleged or apparent matter affecting the tale to the land. not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A or the insured mortgage to be released from the obligation to purchase by virtue of a contractual condaion requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE. (a) After Acquisition of Title. The coverage of this policy shall continue in force as of Date of Policy in favor of O an insured who acquires all or any part of the estate or interest in the land by foreclosure, trustee's sale, con- veyance in lieu of foreclosure, or other legal manner which discharges the lien of the insured mortgage; (i) a transferee of the estateor interest soacquired from an insured corporation, provided the transferee is the parent or wholly - owned subsidiary of the insured corporation, and their corporate successors by operation of law and not by purchase, subject to any rights or defenses the Company may have against any predecessor utsureds; and (iii) any govern- mental agency or governmental instrumentality which acquires all or any part of the estate or interest pursuant to a contract of insurance or guaranty insur- ing or guaranteeing the indebtedness secured by the insured mortgage. (b) After Conveyance of Title. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of war- ranty made by the insured in any transfer or conveyance of the estate or in- terest. This policy shall not continue in force in favor of any purchaser from the insured of either (i) an estate or interest in the land, or (o) an indebtedness secured by a purchase money mortgage given to the insured. (c) Amount of Insurance. The amount of insurance after the acquisition or after the conveyance shall in neither event exceed the least of: (i) the Amount of Insurance stated in Schedule A; (11) the amount of the principal of the indebtedness secured by the insured mortgage as of Date of Policy, interest thereon, expenses of foreclosure, amounts advanced pursuant to the insured mortgage to assure compliance with laws or to protect the lien of the insured mortgage prior to the time of acquisition of the estate or interest in the land and secured thereby and reasonable amounts expended to prevent deterioration of improvements, but reduced by the amount of all payments made: or (iii) the amount paid by any governmental agency or governmental instrumentality, if the agency or instrumentality is the insured claimant, in the acquisition of the estate or interest in satisfaction of as insurance contract or guaranty. 3 NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 4(a) below. (ii) in case knowledge shall come to an insured hereunder of any claim of tale or interest which is adverse to the title to the estate or interest or the lien of the insured mortgage, as in- sured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (m) if title to the estate or interest or the lien of theinsured mortgage, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to the insured all liability of the Company shall terminate with regard to the mailer or matters for which prompt notice is required; provided, however, that failure to notify the Com- pany shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own costand without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choke (subject to the right of the insured to object for reasonable cause) to repre- sent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any, other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in as opinion may be necessary or desirable to establish the tale to the estate or interest or the lien of the insured mortgage, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy; whether or not a shall be Fable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (c) Whenever the Company shall have brought an action or interposed defense as required or permitted by the provisions of this policy, the Com- pany may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy perrnasor requires the Company to pro- secute or provide for the defense of any action or proceeding, the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Com- pany to use, at its option, the name of the insured for this purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company all reasonable aid @ in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or pro- ceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the tale to the estate or interest or the lien of the insured mortgage, as insured.11 the Company is prejudiced by the failure of the insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liabaay or obligation to defend, prosecute. or con- tinue any litigation, with regard to the matter or matters requiring such cooperation. S PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Con- ditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascerta.n the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the tale, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the in- sured claimant to provide the required proof of foss or damage, the Com- pany's obligations to the insured under the policy shall terminate, including any Itabilay or obligation to defend, prosecute, or continue any litigation. with regard to the matter or matters requiring such proof of loss or damage. In addition, the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination. inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, t1 requested by any author- ized representative of the Company, the insured claimant shall grant as per- mission, in writing, for any authorized representative of the Company to cor*nued on nwf pege of cow aAeef CONDITIONS AND STIPULATIONS —CONTINUED examine, inspect and copy all records, books, ledgers, checks, cor- 8. LIMITATION OF LIABILITY. respondence and memoranda in the custody or control of a third party, which (a) If the Company establishes the title, or removes the alleged defect, reasonably pertain to the loss or damage. All information designated as con- fidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim Failure of the insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this policy, the Company shall have the follow- ing additional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) to pay or tender payment of the amount of insurance under this policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay; or (ii) to purchase the indebtedness secured by the insured mortgage for the amount owing thereon together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Com- pany up to the time of purchase and which the Company is obligated to pay. If the Company offers to purchase the indebtedness as herein provided, the owner of the indebtedness shall transfer, assign, and convey the in- debtedness and the insured mortgage, together with any collateral security, to the Company upon payment therefor. Upon the exercise by the Company of either of the options provided for in paragraphs a(i) or (ii), all liability and obligations to the insured under this policy, other than to make the payment required in those paragraphs, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses incurred by the insured clai- mant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of paymentand which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs b(i) or (ii), the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. 7. DETERMINATION AND EXTENT OF LIABILITY. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred bythe insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A, or, if applicable, the amount of insurance as defined in Section 2 (c) of these Conditions and Stipulations; (ii) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Condi- tions and Stipulations or as reduced under Section 9 of these Conditions and Stipulations, at the time the loss or damage insured against by this policy occurs,, together with interest thereon; or (iii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the insured has acquired the estate or interest iri the manner described in Section 2(a) of these Conditions and Stipulations or has conveyed the title, then the liability of the Company shall continue as set forth in Section 7(a) of these Conditions and Stipulations. (c) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, or otherwise establishes the lien of the insured mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title or to the lien of the insured mortgage, as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. (d) The Company shall not be liable for: (i) any indebtedness created subsequent to Date of Policy except for advances made to protect the lien of the insured mortgage and secured thereby and reasonable amounts ex- pended to prevent deterioration of improvements; or (ii) construction loan advances made subsequent to Date of Policy, except construction loan ad- vances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the land which at Date of Policy were secured by the insured mortgage and which the insured was and continued to be obligated to advance at and after Date of Policy. 9. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY. (a) All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto. However, any payments made prior to the acquisition of title to the estate or interest as provided in Section 2(a) of these Conditions and Stipulations shall not reduce pro tanto the amount of the insurance afforded under this policy except to the extent that the payments reduce the amount of the in- debtedness secured by the insured mortgage. (b) Payment in part by any person of the principal of the indebtedness, or any other obligation secured by the insured mortgage, or any voluntary partial satisfaction or release of the insured mortgage, to the extent of the payment, satisfaction or release, shall reduce the amount of insurance pro tanto. The amount of insurance may thereafter be increased by accruing in- terest and advances made to protect the lien of the insured mortgage and secured thereby, with interest thereon, provided in no event shall the amount of insurance be greater than the Amount of Insurance stated in Schedule A. (c) Payment in full by any person or the voluntary satisfaction or release of the insured mortgage shall terminate all liability of the Company except as provided in Section 2(a) of these Conditions and Stipulations. 10. LIABILITY NONCUMULATIVE. If the insured acquires title to the estate or interest in satisfaction of the indebtedness secured by the insured mortgage, or any part thereof, it is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, of which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a pay- ment under this policy. 11. PAYMENT OF LOSS. (a) No payment shall be made without producing this policy for endorse- ment of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 12. SUBROGATION UPON PAYMENT OR SETTLEMENT. (a) The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the continued on remainder of cover sheet CONDITIONS AND STIPULATIONS —CONTINUED insured claimant, the Company shall be subrogated to all rights and remedies or less shall be arbitrated at the option d 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 art Wrated 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 N61wsthstanding 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 d 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 Arbitrator(s) may be entered in any oftheinsuredmortgage.orreleaseanycoffateralsecurgyfortheindebtedness, court having jurisdiction thereof. When the permitted acts of the insured claimant occur and the insured The taw 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. A copy 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 K UABILITY LJM1TED 70 THIS POL -- POLICY EPJT)RE CONTRACT. insured against by this policy which shall exceed the amount, it any, lost to (a) This policy together with all endorsements, if any, attached hereto the Company by reason d 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 nities, 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. lion 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 Secretar)4 or validating tion 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, 15. SEVERABILITY. or bond and the obligor will not be an insured under this policy, notwithstan- ding Section 1(a)@ of these Conditions and Stipulations. In the event any provision of this policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provi- ia ARBITRATION sion and all other provisions shall remain in full force and effect. Unless prohibited by applicable law. either the Company ortheinsured 18. NOTICES, WHERE SENT. may demand arbitration pursuant to the Title Insurance Arbitration Rules of All notices required to be given the Company and any statement in writing the American Arbitration Association. Arbitrable matters may include, but are required to be furnished the Company shad include the number of this pofwy not limited to, any controversy or claim between the Company and the in- and shall be addressed to the Company at its Corporate Headquarters sured arising out of or relating to this policy, any service of the Company in 6630 West Broad Street, Richmond, Virginia 23230L Mailing Address: P. Q 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 lion. All arbitrable matter$ when the Amount of Insurance is SIDW.000 Office; 10 Universal City Plaza, 23rd Flood Universal City. CA 9160a 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. LawyersTideInsuranceCrporation Attest: S £ � L I By. � j�• /�� Secretary �`"�"� President Countersigned by: Authorized Officer or Agent 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 safe 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 LawgersTtde Insurance Corporation RD. Box 27567 Richmond, Virginia 23261 LAWYERS TITLE INSUkANCE CORPORATION National H Rice, Virginia AMERICAN LAND TITLE ASSOCIATION LOAN POLICY 1992 Issued At: Continental Lm.%yers Title Company 18551 Vat Kazman, Suite 100, Irvine, California 92715 SQHED= A -------- ------------------------------------------------..__-------------------------- DF�EIt POLICY N4XNT OF PFU24 M DATE OF POLICY MJ49M NLP Mt INSURANCF 944221D-A 135-01-2A1-402 $130,200.00 S320.00 04/12/96 at 11:25 2. THE ESTATE OR WrERMT IN THE LAND MUCH IS COVERED BY THE ITk3FD MUMM IS: A CaIDONB MM, as defined in Section 783 of the California Civil Code, in fee 3. TITLE TO THE ESTATE CR INTEREST IN THE LkM IS VESTED IN: Julie Weinfeld, a siMle woman 4. THE INSURM MIL ME AND ASSIM4NM TMOW, IF ANY, ARE DEI9CRI:HFD AS FOLLOWS: A Deed of Trust to secure an in the amount shown below, and any Other ObligatiCnS severed tmreby Amount: S130, 200.00 Dated: April 3, 1996 Trustor: Julie Weinfeld, a single woman Trustee: Westwood Associates, a California oaxpox'ation Beneficiary: Weyerhaeuser Mortgage Company Recorded: April 12, 1996 Insert No. 96-0181441 of Official Records ALTA LOAN P'OLI.CY-1992 Pol.ic No.:135-01-201-402 Order No.: 9402210-A SCHEOLIIE A CUMNLIM 5. THE LAM REFERRED TO IN TiDS POLICY IS DEEM= AS MUM: A Oondominiun aampriseed of: PAFKM 1: An turlivided one twenty second (1/22) fee simple interest as a tenant in aarurn in and to all of the Cbnrcn Area defined in Decl Arati referred to below and described in the Condaninium Plan ("Plan") for Lot 1 of Tract No. 14828, which Plan was accorded on August 25, 1994 as Insrnment No. 94-0525335 of Official Faecords of Orrenge County, over Lot 1 of Tract No. 14828, in the City of Itz tington Hearn, County of Orange, State of California, as per map filed in Book 706, Pages 27 to 29 of Maps, in the office of the County Recorder of said County. Excepting therefran all oil, Petroleum, asphaltum, gas, minerals and other irdrocarbon substances, as reserved in deed recorded August 16, 1921 in Hook 401, Page 356 of Deeds, and in various other deals of record. PAFM 2: Chit No. 10 consisting of certain airspace and surface elements, as shah and described in the Condaninium Plan referred to in Parcel 1 above. PAFCEI, 3: Nan-aKclusive easements for amens, ingress, egress, use, enjoyr nt, drainage, 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. PAPM 4: Exclusive easements appurtenant to Parcels 1 and 2 referred to above, for balcory or patio purposes, over the areas defined, depicted and assigned cn the Plan. A L T A LOAN P O L I C Y - 1 9 9 2 PORGY NO.:135-01-201-402 CFMM NO.: 9402210-A 14. Property taxes, including general and snrxdal taxes, per=k-a property taxes, if any, and any asssasmwfts collected with taxes, to be levied for the fiscal year 1996-1997 which are a lien not yet payable. 1. The matters Contained in a doo ant entitled "Mamorarrhm of Disposition and Dmmlcpment Agreement- recorded January 3, 1994 as Instrument No. 94-0001007 of Official Records. nafexenoe is made to said docarment for frill particulars. 2. The fact that the ownership of said land does not include rights of access to or from the street or highway abutting said land, such rights having been relinqiishod by the map of said Tract. Affects: Talbert Avenue: Joyful Lars and Happy Drive 2b.•4;0 . •' — • L - • t • s• • •r. 3. Covenants, conditions and restrictions (deleting . - • . . -•based an rem, co3 or creed) as set forth in the d=xnent Said cove mts, cmUtiom and restrictions provide that a violation thereof shall not defeat the lien of any mortgage. or dead of trust made in good faith and far value. 4. Matters in an Iratnxnent which, wrtV other things, contain or provide for Liens and the subordination thereof, provisions relating to Partition, Restrictions on severability of Component Interests, Covenants, Conditions and Restrictions, a provision that no violation thereof and no enE cement of any Lien provided for herein shall defeat or render invalid the Lien of a Mc¢tgage or Deed of Trust made in good faith and for value, but which however, do not Contain Restrictions based on race, Color or creed. Recorded: August 24, 1994 Instrument No. 94-0525336 of Official Records CFM NO.: 9402210-A "11,00W64 k1olook,y. 5. The matters contained in a document entitled "Comm Facilities Use and Maintenance Agent For Pacific Park Villas" reconied August 25, 1994 as Instxnment No. 94-0525337 of Official Records. Beferwm is made to said 6=vent for full particulars. 6. An easement for the purpose shown below and rifts incidental thereto as set forth in a document Granted to: Southern California RIison 03%xny Purpose: Public utilities Hacorded: October 27, 1994 zrstnxnent No. 94-=2840 of Official Fdecrw s Affects: the Southerly 50 feet of the Fasterly 4 feet of Lot 1 The following endom samezts are attached to and made a part of this policy: 100, 110.9, 115.1, 116.2 dr Date typed: 06/03/96 Plats encloead IV A L T A LOAN POLICY - 1 9 9 2 POLICY NO.: 135-01-201-402 CFMER NO.: 9402210-A PART LI IN ADDITION TO THE MATTERS SET FORM IN PART I OF THIS SCHEDLEE, THE TITLE TO THE ESTATE CR INTEREST IN THE LAND DESCRIBED OR MID TO IN SCHEDULE A IS SUBJECT TO THE FDI.LaWM G MATTERS, IF ANY BE MM, BUT THE C U4PANY I?MW THAT THESE MAIIEM ARE SUMMINXTE TO THE LIEN CR (3VVCE CFF' THE L%SU iID A0R7GMZ UPON THE ESTATE CR IWEREST: 7. A Deed of Trust to Secure an indebtadrns in the amount shot n below, and any other 9xvred thereby Amount: $35,000.00 Dated: Aril 9, 1996 Truster: Julie Weinfeld Trustee: The City of HuntingWin Bear, a u micipal Corporation Flenefieiaay: The Redevelopment Agency of the City of Huntington Beach, a public body corporate and politic Fboorded: April 12, 1996 as Imtnnent No. 96-0181442 of Official Records . f• •LL• of trust recitesthat it is subordiniate to the •LL• of trust -nxW •• •=rentlytherewith. 1 Cbvenants, conditions an• restricticna (deleting therefran any xestrictiom based on ram, col or creed) as set forth in the docunant Rocarded.0 April 12, 1996 as Instrument • ' . of Official Records ENDORSEMENT LAWYERS TITLE INSLW%ZX E O0F2PMT10N CLTA FiOF' ' 100 Oar No.: 9402210-A Attached to Policy No.: 135-01-201-402 The Ca.peny hereby insures against lass rich said Irzzred shall sustain by reason of the following natters: I. Any irnorra=Uxess in the assurance which Uje Cwpany gives: a. That these are no covenants, Conditions, cr restrictions urider which the lien of the mortgage referred to in Soule A can be cut off, st� iimeted, or otherwise impaixrtnd; b. That these are no present violations on said land of any enforceable covenants, conditions, or restrictions; C. That, except as rhown in Schedule B, there are no gcrnadmesntz of buildings, structures, or iprovestaits located on said land onto adjoining lards, nor any onto said land of buildings, struc;b or improv+anents located on 2.oa2.bAny future violations an the land of arty 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 su=h violations result in impainmmt or loss of the lien of the marUpge referred to in Sd adule A, or result in impairment or loss of the title to the estate or intent referred to in Sd ode A if the Insured shall aaiuire such title in satisfactim of the irn33bt�ss secured by the insured mortgage: b. ikmarimtobility of the title to the estate or interest referred to in Schedule A by reason of any violations on the land, occurring prior to acquisition of title to tYt estate or interest referred to in Schedule A by the insured, of any covenants, o❑nditiois or restrictions. 3. Darm a to existing improvements, irrludirq lawns shrt bbesy or trees: a. iki are located or encroach upon that portion of the land subject to any ew emu nt shown in Sdadule B, which damage results from the exercise of the right to use or maintain such easement for the pnpoaes for which the same was granted or reE erv©d. 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 the land or shown as a reservation in Schedule B. 4. Any final court order or judgment requ r m the removal from any land adjoining the land of my encroachment strewn in Schedule e B. Wherever in this esx5casaicnt any or all the wards "oC?v mite, conditions, or restrictions" appear, they Shall not be deemed to refer to or include the terns, covenants aorditiocns or zestricticm contained in any lease. Fb r p nTos2s of this ant, the words "cove nants" , "conditions" ns" or "restrictions" shall nut be deemed to refer to or I nc3 i x1e any coveenants, Oond it:iorh8 or xes lations relating to covirorxrental protection, except to the extent that a notice of a violation or alleged violataian affecting the land has been recorded in the Public records at Dube of Policy and is not excepted in Schedule B. This endorsement is node a part of the policy and is subject to all of the berms and provisions thereof aril of any prior endorse,ents thereto. EmxVt to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any prior endorser - - ; nor does it extend the effective date of the policy and any prior k2 nts, nor does it inarw-ge. the face wxxmnt thereof. IN WITNESS WHEFG ', the Ompany has caused this Endorsement to be signed and sealed, as of the date set forth below, to be valid when countersigned by an authorized officer or agent of the Ompany, all in aoomlance with its By -Laws. Dube: April 12, 1996 Issued at: Irvine, Califarnia IAYJYERS TITLE INSURANCE CORPORATION CourV uxrigned: q Janet A. Alpert - President Aut`nriz+ed Officer or Agent John M. Carter - Secretary ENDORSEMENT Q,TA F`OW 110.9 Order No.: 9402210-A Attactnd to Policy No.: 135-01-201-402 Th3 insurarxm afforded by this I sal is only effective if the Land is used or is to be used primarily for rei Wrtial puLpooes. •r .r .r . . r _• •r ••: • — ., •r • all Lion which,Date of Policy recorded • •_- records established under state statutes at Date Of Policy for the purpose of iffparting motnrtive ni ofallatter-relating torealproperty to • r • —pr for value •withoutknowledge, or filed the ec r • of the • • •e• States District •• r •r • — • w • • • •r. L• Y••C• — •r rScheduleH (b) any enviraYrental protection lien provided for by any state statute in effect at Date of Policy, eft envircnrcintal pxotecticn liens provided for in the following state statutes: NCNE This endorswent is made a part of the policy and is subject to all of the terms and provisions thereof, and of any prior aelaixxilts thereto. Except to the extent expressly stated, it neither modifies any of the terms and provisions of the policy and any arYsseirents, nor does it extend the effective date of the policy and art, prior endor9aL1e1 ts, nor does it {use tl)e face amamt thereof. IN sit WHEFGX, the •• •z has caused this Erx1arsement to be signed - • sealed as of the date set forth below, to be valid when Colantersigned by an authorized officer or agent of the Cimpany, all in a=rdance with its By -Laws. Dates: 04/12/96 Uo[xltPrsigned by: Janet A. Alpert - Presidesrt :« - Issued at: Irvine, California ENDORSEMENT CLTA FUI 115.1 Attached to Policy No.: 135-01-201-402 lee .. •Zr�f3►�ji'S:1 1. The failure of the unit identified in Schedule A and its oonman elements to be part of a condominium with in the meaning of the Gordo minium statutes: of the j ction in which the unit and its crnnxxh elements are located. 2. The failure of the documents required by the um statutes to comply with the requirments of the statutes to the extent that serh failure affects the title to the unit arxi its carman elects. 3. Present - . coverguits %hich restrict the use of the unit and Its caintra elements and which a contained in the documents, except violations relatirxj to et Ixanmental pro -2i�- unless a notice of a violation thereof has been recorded or filed in the public records and is rot ezoepted in Schhedule B. The zestxictive covenants do rct contain my Provisions which will cause a forfeiture or reversion of title. 4. The priority ofany lienfor charges and assessments at Dateof Policy lien of&W insured mortgage •gage identified Schedulie A. 5. The failure of the unit and its corrrnn elemarts to be entitled by law to be assessed for real property twos as a separate p =al. 6. Any obligation to remove srry laprovemants which exist at Date of Policy because of any present erx=oachments or because of any future unintentiorolerrsoad-ment of the commz elements upon any unit or of any unit upon the corarrah elements or another unit. 7. The failure of title by reason of a right of first refusal to pur hale the unit and its cxmtrah elementS which was used or could have been exercised at Date of Policy. This erxlcreerment is made a part of the policy and is subject to all of the terns and previsions thereof and of any prior thereto. float to the extent expressly stated, it neither modifies any of the terms a-rd provisions of the policy and arry prior eidoxmients, nor does it extend the effective date of the policy and any prior enc3arsements, nor does it increase the face ancirmt thereof . IN winmss ice•, the Company has caused this endor - ----t to be signed and sealed as of tt -. date set forth below, to be valid when countersignr-d by an authorized officer or agent of the Ccnpany all in aoxr'danae with its Hy -Issas. Date: 04/12/96 Qxntersigned by: Janet A. Alpert - President Is:maed at: Irvine, California ENDORSEMENT CLTA FQ'Iti 116.2 Attoctnd to Policy No.: 135-01-201-402 Order No.: 9402210-A Tb3 company assures the Insured that at the date of this Policy the dimensions of the eater-1= bo rdazy of the Cbnrm Area referred to in Schedule A of this Policy which is also the exterior bourklazy of the project, are correctly sbm n on that map regarded Book 7a5, Pages 27 through 29 of tamps in the office of the County Paeaarder of Orange County. Th3 CbMany further assures the Insured that the estate or interest referred to in Schedule A includes a reeldence within the project boundaries, which residence is de-Agrated as U hit , as Eh:y m on the map recorded August 25, 1994 as Instrument No. 94-0525335, Official Records in the office of the County Pmoorder of Orange County, and knc*n as: i8xi Joyful I#205 H=tington Beach, California Thri Cxpany hereby insises the Insured against loss which the insured shall sustain in the event that the awmwce. herein shall prom to be incorrect. This endorsement is made a part of the policy and is subject to all of the terms and provisions thereof and of any prior endarsemernts thereto. Except to the extent expressly stated, it neither modifies any of the teni and provisions of the policy and any prior r - I - - 3atuertts, nor dies it eater d the effective date of the policy and any prior nor does it increase the face w ou nt thereof. IN WITNESS WHEFSOF, the Comparry has cm med this erdor - -- - - to be signed and sealed as of the date set forthbelcw, to be valid when countersigned by authorized officer or g ■ all in accordance with its By-1^4s. Date: 04/12/96 }•.. • �� - • r- Janet A. Alpert - President Issued at: Irvine, California CONDOMINIUM PLANS FOR SHEET 1T OF 32 LOT 1 OF TRACT .4a2a. IN ThE OrY OF HUNTINGTON BEAM. COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOMM ON A YAP RECOROEO IN YAP GOOK 706, PACES 27 THROUCH 29. INCLUSIVE, OF YISCULANEOUS YAPS, IN THE OFFICE OF THE RECORDER OF SAID COUNTY. PHASE ONE OF PACIFIC PARK VILLAS 40 222r 2019 18 i7 >6 5.00' (r'rMK) KTWEEit WS 65.19' 9 11 12 13 14 10 15 _o T 4 5 3 6 WW 1 :,.1 7 �n 2 e 90.41' 25.D0' 57.64' SCALE: 1 "= 40' tows mxw4 rata*ts to%" UNCL WT. 10040 NVWW.A POCAns tiPPO U%U wt ASSOCIATION PROPERTY, !� '"�""rcrm% U NI 1 NUMBERS & TIES ASSOW b1 X8 NO. 4255 HALL & FOREMAN. INC. CONDITIONS AND STIPULATIONS —CONTINUED examine, inspect and copy all records. books, ledgers, checks, cor-' respondence and memoranda in the custody or control of a thud party, which reasonably pertain to the loss or damage. All information designated as con- fidentia' by the insured claimant provided to the Company pursuant to this Section Sha!I not be disclosed to others unless, in the reasonable judgment of the Comparyy. it is necessary in the adminiWation of the claim. Failure of the rnsared claimant to submit for examination under oath, produce other reasonably requested information or grant pe•mission to secure reasonably necessary information from third parties as required in this paragraph, unless prohibited by law or governmental regulation. shall terminate any liability of the Company under this policy as to that claim. 5. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this policy, the Company shall have the follow- ing add lronal options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchane the Indebtedness. (i) to pay or tender payment of the amount of insurance under this pol y together with any costs. attorneys fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and wh ch the Company is obligated to pay; or (ii) to purchase the indebtedness secured by the insured mortgage for the amount owing thereon together with any costs. attorneys' lees and expenses incurred by the insured claimant which were authorized by the Com- pany up to the time of purchase and which the Company is obligated to pay. It It a Company offers to purchase the indebtedness as herein provided, the owner o! the indebtedness sha'I transfer assign, and convey the in- debtedness and the insured mortgage, together with any collateral security, to the Company upon payment therefor. Upon the exercise by the Company of either of the options provided for in pa agraphs a(i) or (ii), all lability and obf gations to the insured under this policy, other than to make the payment required in those paragraphs, shall terminate. including any liability or obligation to delend. prosecute, or continue any Ill igation, and the polity shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With ;he Insured Claimam. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured agairst under this policy, together with any Costs, attorneys' fees and expenses -ncurred by the insured clai- mant wr. ch were authorized by the Company t. p to the time of payment and which tl-? Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy. logether with any costs, attorneys' lses and expenses incurred by the insured claimant which were authorized by the Cemparry up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs b(i) or (ii), the Company's obi gations to the insured under nis polio'. for the claimed loss or damage, other than the payments required to be made, shag terminate, including any liatility or obligation to defend, prosecute or Continue any litigation. 7. DETERMINATION AND EXTENT OF LIABILITY. This poly is a contract of indemnity against actual monetary loss or damage sustained or incurred bythe insured claimant who has suffered loss cr dama_le by reason of matters insured agairst by this policy and only to the extent herein described. (a) the liability of the Company under this policy shall not exceed the kest of. t i) the Amount of Insurance stated in Schedule A, or, 4 applicable. the amount of insurance as defined in Section 2 (c) of these Conditions and Sti pulatio ns; (u) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section B of these Condi- tionsandStipulalionsorasreduced under Seib n9oftheseConditionsand Stipulatiois. at the time the loss or damage insured against by this policy o :curs, tagethe• with interest thereon; or (err) the difference between the value of the insured estate or irterest a: insured and the value of the insured estate or interest subject to tt•e defec', lien or encumbrance insured against by this policy. (b) In the event the insured has acquired the estate or interest in the manner described in Section 2(a) of these Cond lions and Stipulations or has conveyed the title, then the liability of the Company shall continue as set forth it Sectior. 7(a) of these Conditions and Stipulations (c) The Company will pay only those costs. attorneys' fees and expenses irCurred .,i accordance with Section 4 of these Conditions and Stipulations S. 'LIMITATION OF LIABILITY. (a) If the Company establishes the tile. or removes the a!-eged de'ect. I en or encumbrance, or cures the lack of a right of access to or from the land. or cures the claim of unmarketab lily of 011ie or otherwise establishes the lies of the insured mortgage, all as insured, in a reasonably di;igent manner by any method, including itigation and the completion of any appears therefrom. it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby (b) In the event of any litigation, including htiganon by the Company c•r with the Company's consent, the Company shall have no habii-ly for loss c r damage until there has been a final determination by a court of competent jurisdic'ion, and disposition of ail appeals therefrom, adverse to the title or to the ken of the insured mortgage, as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in se cling any claim or suit w1hout the prior written consent of the Company (d) The Company steal! not be liable for: (P) any indebtedness crewed subsequent to Date of Policy except for advances made to protect the hen of the insured mortgage and secured thereby and reasonable amounts ex• pended to prevent deterioration of improvements: cr (rr) construction ban advances made subsequent to Date of Policy. except construction loan ad• vances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the land which at Date or Pot -icy were secured by the insured mortgage and which the insured was and continued to be obligated to advance at and a`ter Date of Polly 9. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY. (a) All payments under this policy, except payments made for costs. attorneys' fees and expenses, shall reduce the amount of the insurance pro tanlo. However, any payments made prior to the acquisition of We to the estate or interest as provided in Section 2(a) of these Cond bons and St pulations shall not reduce pro tanto the amount of the insurance afforded under this policy except to the extent that the payments reduce the amount of the in- debtedness secured by the insured mortgage. (b) Payment in part by any person of the principal of the indebtedness. or any other obligation secured by the insured mortgage, or any voluntary partial satisfaction or release of the insured mortgage, to the extent of the payment, satisfaction or release, sha!I reduce the amount of insurance pro lama The amount of insurance may therea"er be increased by accruing in - West and advances made to protect the lien of the insured mortgage and secured thereby, wrath interest thereon. provided in no event shalt the amount of insurance be greater than the Amount of Insurance slated in Schedule A. (c) Payment in full by any person or the voluntary satisfaction or release of the insured mortgage shall terminate all liability of the Company except as provided in Section 2(a) cf these Condtions and Stipulations. 10. LIABILITY NONCUMULATIVE. If the insured acquires title to the estate or interest in satisfact on of the indebtedness secured by the insured mortgage, or any part thereof, it is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is to ken in Schedule B or to which the insured has agreed, assumed, or taken subject. of which is hereafter executed by air insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shalt be deemed a pay- ment under this policy. it. PAYMENT OF LOSS. (a) No payment shall be made without producing this polity for endorse- ment of the payment unless the pctrcy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 12. SUBROGATION UPON PAYMENT OR SETTLEMENT. (a) The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this policy. all right of subrogation shall vest in the Company una"ected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the clam had this policy not been issued. If requested by the Company. the insured claimant shall transfer to the Company ail rights and remedies aganst any person or property necessary in order to perfect this right of subrogation. The insured claimant shalt permit the Company to sue. compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rignts or remedies It a payment on account of a claim does not fully cover the loss of the conr+nved on fernam r or corer sheer 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 matters when 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 Notwithstanding 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 Arbitrator(s) may be entered in any of the insured mortgage, or release any collateral securityforthe indebtedness. court having jurisdiction thereof. When the permitted acts of the insured claimant 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, A copy 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, if any, lost to (a) This policy together with all endorsements, if 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 arid 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 nities, 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 tion 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, 15. SEVERABILITY. or bond and the obligor will not bean insured under this policy, notwithstan- ding Section 1(a)(i) of these Conditions and Stipulations. In the event any provision of this policy is held invalid or unenforceable 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. Unless prohibited by applicable law, either the Company or the insured 16. NOTICES, WHERE SENT. may demand arbitration pursuant to the Title Insurance Arbitration Rules of All notices required to be given 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 shall be addressed to the Company at its Corporate Headquarters sured arising out of or relating to this policy, any service of the Company in 6630 West Broad Street, Richmond, Virginia 23230. Mailing Address: P.O. connection with its issuance or 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. Attest: Secretary Countersigned by: Copy of policy, no additional liability assumed Authorized Officer or Agent =-\NSURApC\\\ LwyersTideInsurance Corporation -tb.' ..............EC��1 f W i M. 1925 ..� President 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 safe 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 lawyers ideInsurance �poration P.O. Box 27567 Richmond, Virginia 23261